As thousands of iGaming professionals convene this week at ICE London 2020, iovation is pleased to announce the release of our 2020 iGaming industry report, Insights Into Online Gambling Fraud And Building Player Trust.
This report contains exclusive insights into online gambling fraud, explores how to create and maintain trust with players, and identifies what will drive iGaming in the coming year. We arrived at these insights via collaboration with our iGaming customers, conversations with key industry leaders and iovation intelligence based on:
- Protecting over 480 million gambling transactions in the past year
- Stopping over 40 million suspected fraudulent gambling transactions in 2019
- Providing solutions for over 100 active iGaming operators and platform providers
From our analysis, we have defined three key market drivers that will shape the iGaming industry in 2020:
Trust is the new currency in iGaming
As players move online, and particularly as they move to mobile, it’s vital that operators protect the entire player journey. 79% of the iGaming transactions we protected in 2019 originated from mobile devices, an increase of 13% over the previous year. However, operators are facing a number of challenges that could be detrimental to adopting a mobile-first approach – including a rise in mobile fraud and shifting consumer preferences around account security.
Meanwhile, new iGaming products are hitting the market every day, creating more competition and increasing player expectations. This, coupled with the rush to penetrate new markets such as the U.S., Singapore and the Netherlands, has led the industry to focus more on new technologies that facilitate onboarding and faster play without sacrificing security or consumer trust.
Secure the player journey, secure your long-term profitability
As operators launch in newly legalized markets or work to expand market share, it’s critical to attract new players – but player incentives are under attack. We saw nearly a million confirmed reports of fraud and abuse from our iGaming clients in 2019, which we have analyzed to identify key threats. We looked at common pain points for operators such as payment fraud, and discovered that bonus abuse was the number one reported fraud by our iGaming customers for the third year in a row. We also found that operators expanding into new markets have a clear need to automate the management of functions such as age and ID verification, Know Your Customer (KYC) and address verification. As operators are building their customer base it’ll be more important than ever to remove barriers to play wherever possible.
Improve the customer experience while complying with regulations
In addition to increasing competition, operators have to contend with a complicated regulatory environment. Stricter regulations on players’ data privacy, enforcement of responsible gambling regulations, AML compliance and meeting onboarding requirements will all remain top concerns for operators in 2020. We anticipate operators seeking out new ways to meet regulatory requirements that minimize friction for good players.
In this context, it’s no surprise that self-exclusion was one of the most common types of reports placed by our iGaming clients in 2019. This highlights the importance of being able to tag devices and accounts as self-excluded, in order for operators to effectively manage responsible gambling requirements.
We know that your iGaming operation is facing many challenges in 2020, making it imperative to have a plan to protect your brand and players while gaining competitive advantage. To learn more, download the 2020 iGaming industry report. We also invite you to register for our iGaming Report highlights webinar, where we go into more depth on the key trends driving iGaming in 2020.