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Is Investing in Online Gambling Still Viable?

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Photo by Adeolu Eletu on Unsplash

 

It is not hard to realize why many have noticed the online gambling industry when it comes to investments. With growth over 224% in the US, it is hard to miss such a boom. But, many people question if investing in online gambling is still viable or has the train passed for the biggest winners.

The answer mainly depends on if the investor is planning to get rich quick or to establish him or herself in the industry. For the former, regretfully the peak has already passed if doctors and governments are to be trusted.

But, if you want to make a high-quality business that will bring regular growth and pay regular dividends, the so-called iGaming industry is the place to be right now. Even if the growth of the market slows down, it will not stop.

This is because the three main comparative advantages of online gambling will still be present even after people are allowed to visit brick and mortar establishments:

  1. Low regular overhead
  2. Access to global markets
  3. Ensured advantage

And the last point might be the most important if you are a concentrated investor. The superior stability of online gambling compared to regular casinos makes it much easier to plan your business, as well as borrow against the company.

Don’t Expect 2020 to Repeat

Investing now and expecting to triple your investment by this time next year would be very unwise. While substantial growth is possible, some normalization of the curve is to be expected.

By all accounts, a vaccine against the current pandemic is expected to arrive in early 2021, with the effects taking in by the spring of next year. This will mean that fewer people will spend time indoors, thus less time gaming on phones, tablets, and computers.

Still, most of the current user base is expected to remain and new users will join in as the word of mouth spreads globally. This makes a perfect chance for someone, especially if offering niche-specific services, to swoop in and fill that market.

Enough Players for Everybody

There is no territorial competition when it comes to online gambling. With the number of players entering and the demand for online gambling rising, the competition is very fair and very open between casino operators. This makes a very relaxed atmosphere if you are a new investor in the industry. Of course in some markets like Australia the players spend more on average than in markets like Romania so competition there is a bit more saturated.

But, keeping players on your platform as well as standing out will be difficult. Finding modes to increase your offering and improve your services will be crucial if you want to remain relevant and growing.

High-Entry / Low-Maintenance

With some new legislation that will be affecting both Malta and Curacao, the industry will probably become even cleaner. But, the licenses will become more expensive, which may dissuade smaller investors from chipping in.

Namely, the old Curacao license, usually taken out by new operators, will now cost roughly $120.000, which is a steep increase from the $35.000 which was the price so far and will be until January 1st, 2021.

But, for those who have the funds, this is where major expenses end and where income begins. As the costs for operations, security, services, and technical support all scale with the level of business, you will rarely find yourself bleeding funds in any way.

Generally, if you can make an arrangement with game developers for pay-to-play terms, you can have a very secure income with minimal expenses and only a basic payroll staff.

New Curacao License

While still being valued as a license that ensures trust and safety from the operator, Curacao has been seen as the ‘second-best’ for a very long time. This is because the rules for obtaining, as well as oversight, was much more relaxed than for the Malta GC license.

But, with the new deal made between Curacao and the Dutch authorities back in Europe, the value and price of this license will rise quite a bit.

For those who had the papers this year, the ~$85.000 increase won’t be an issue, but it might be for new operators looking to open an online gambling business in 2021.

Malta is the Gold Standard

A license provided by the Malta Gaming Commission is still the golden standard when it comes to online gambling. The rules now planned by Curacao have been enforced in Malta since 2009, and even new players are familiar with the significance of having such a document.

But, for many operators, this type of clearance is not necessary. If you don’t want to market towards EU players and don’t plan on predatory tactics in the first place, you may use the Curacao license and save some money initially.

Later, when you have your business established and your investment relatively secure, you can always take the Malta license as well and try to reel in some bigger whales that are hiding all over the world.

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FAVBET switches to Single Wallet for increased player comfort and smoother operations

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FAVBET switches to Single Wallet for increased player comfort and smoother operations

 

 

FAVBET is doing away with the practice of creating several wallets in the player’s personal account on favbet.com in favor of its own Single Wallet solution which makes it much easier for users to manage their accounts. Migration to the new system is automatic and will not require any action from users.

The Single Wallet replaces the previous system where casino players and bettors had to create a separate account called “wallet” for each payment method without the ability to transfer funds between different wallets. In contrast to the previous approach, the Single Wallet combines all user accounts into one that allows deposits and withdrawals using different cards and payment systems.

The key advantage that FAVBET users get after switching to the Single Wallet is one account for all payment methods. Now, there is no need to create separate wallets for debit cards, Skrill, or other payment methods.

This is not an update to the existing system, but rather a solution developed from the ground up that not only adds convenience but also significantly increases the capabilities of our platform. On the surface, the changes don’t seem like much, but what we created here is in fact a full-fledged banking system that is similar in its functionality and efficiency to the solutions used by the leading financial institutions,” says Serhii Kostiushkin, Head of Engineering at Betinvest.

According to the company’s tech lead, developing the new system was unavoidable as the previous solution was created quite a while ago and could no longer keep up with the company’s growth and user numbers. Additionally, its outdated architecture significantly complicated financial accounting and put excessive load on the platform. The new system processes five times more transactions while being much more stable and not requiring as many resources.

The Single Wallet approach is now a standard for the world’s leading sportsbooks and casinos. Now, all of its advantages are available to favbet.com users.

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Affiliate Success

Ad Fraud and Affiliate Marketing Strategies: How Online Gaming Companies Can Transform Their ROI

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Ad Fraud and Affiliate Marketing Strategies: How Online Gaming Companies Can Transform Their ROI

 

By: Richard Metcalf, Global VP, Sports Betting & Online Gaming, TrafficGuard

 

Betting companies can adopt cutting-edge technology and offer the very best odds, but amplifying your brand is still difficult in a saturated industry. As a result of relaxing regulations, international players can break into an increasing number of new markets but reaching local target audiences can be a challenge. For these businesses, affiliate marketing is a vital channel in driving new user acquisition and some of the largest sportsbooks like Paddy Power and DraftKings are among those utilising the strategy.

With competition fierce, businesses are in a constant battle to keep costs low. Cost-per-thousand (CPT) payment models for traditional TV advertisements are progress towards paying for performance, but vendors still cannot guarantee that exposure will translate to depositing customers. Affiliate marketing provides a cost-efficient, low-risk alternative because businesses pay for conversions only.

But with money to be made, affiliate advertising fraud is rife and affiliate partners are likely delivering invalid engagement. If betting companies are looking to expand their user base and market amongst big players, they must improve their visibility over affiliate partners’ traffic.

 

Tracking Affiliate Activity

From smaller players to large conglomerates, there’s an exciting opportunity for betting companies to establish their presence across global markets. In the US especially, rapid legalisation across multiple states has turned betting into a million-dollar industry and created a profitable opportunity for overseas operators to move into the new market.

However, marketing globally can be expensive and driving brand awareness in a new location is often time-consuming and resource-heavy. With affiliate marketing, betting companies can create a network of partners from across the globe and easily access international audiences. This strategy is also much more efficient and expansive than physical marketing methods as it removes the difficulties that are tied to building a target audience from scratch.

Although affiliate marketing is a valuable marketing tool for increasing brand awareness and authenticity, affiliate management platforms aren’t prioritising fraud. The measures they put in place themselves are often basic and easy to get around and fraudsters can easily fly under the radar by taking advantage of the lack of protection. The nature of affiliate marketing means there is a disconnect between the promotion, analytics and payment, preventing companies from getting a holistic view of the fraud impacting them in addition to paying out for valueless traffic.

Affiliate fraud in the betting industry includes any deceitful action taken by a third party to exploit marketing techniques. This can include click fraud, where fake clicks are generated on ads to earn commission payments; or cookie stuffing, where fake cookies are placed on computers to hijack affiliate sales. Malicious affiliate ad programs do this so they can earn money from false clicks or sales and target high-investment marketing campaigns.

Research by Forrester revealed that 81% of advertisers include affiliate marketing as part of their marketing strategy. The growth of the market, paired with the increase in competition, is why many are turning to affiliate marketing. However, by being cost-effective through performance-based pay, there is an increased attraction from fraudsters. Sports betting companies are not well-equipped to address the problems they face with ad fraud.

Statista predicts affiliate marketing spending in the US alone will reach $8.2 billion by the end of 2022. With the vast amount of money involved, sports betting companies are a target for fraudsters.

 

Getting Instant Access

In order to prevent fraudulent traffic, betting companies must increase the visibility they have over affiliates. By keeping track of partners’ activity, including reviewing their demographics, reputation and quality of traffic, they can increase the quality of their affiliate partners.

Betting companies can do this using third-party technology that can indicate that affiliate scams are taking place in real-time to deliver the most reliable fraud protection. Intelligent software that uses behaviour analysis, such as machine learning, can track the volume of data required to deliver an accurate, instant analysis of which traffic is valid, invalid and fraudulent. Machine learning can identify granular details such as an unusually high number of clicks on an ad, or a high number of sales from a single IP address to confidently assess and deal with invalid traffic so the betting company doesn’t have to pay out.

With this data, operators gain the confidence to cross reference the engagement affiliates charge them for, prevent any partners from trying to outmanoeuvre them and safeguard their business against malicious activity. With more protection over advertising campaigns and a larger proportion of clicks coming from conversion-ready leads, companies can build cleaner audience groups from high-value affiliate partners.

 

Better Visibility, Better ROI

Reaching a market size of $231 billion in 2022, the sports betting industry is becoming increasingly attractive to international operators and fraudsters alike. If you’re running an affiliate marketing program, there’s a high chance you’re paying out for partners’ invalid traffic.

Only using the data your affiliate program partners declare means you’re at risk of being misled. Affiliate programs need to be monitored to avoid scams and program fraud. By understanding which affiliate partners are directing invalid traffic to their websites and charging a premium price for it, sportsbooks can optimise their pay-outs and exceed competitors’ efforts.

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“Cheer for those who cheer for us”: FAVBET calls on Ukrainian football fans to support Ukraine’s allies at the 2022 World Cup

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November 20 marked the kickoff of the 2022 FIFA World Cup in Qatar. An event long anticipated by football fans and quite unique in several respects. This year, for the first time ever, the World Cup takes place in the Middle East, in winter, and… against the backdrop of the largest military confrontation in Europe since World War II.

While the stands of Qatari stadiums explode with applause, Ukrainian fans hear explosions in the streets of their cities, and the Ukrainian army bravely resists unprovoked Russian aggression on the several thousand kilometers of frontlines.

However, even in such circumstances, FAVBET and Kyiv-based creative agency Taktika found a way to engage Ukrainian fans and remind the world that football is not only about fighting, but also about unity and support that goes beyond the borders.

“The world will not see our team on Qatar’s football pitches, but for almost a year it has been watching our fight on a pitch of a different kind – the battlefield. And not only watching, but tirelessly supporting. England, the Netherlands, Spain, Poland, the USA, France and many other countries have been supplying and training the Ukrainian military, providing shelter to our citizens and defending our interests on the diplomatic front. We decided that the World Cup is a great opportunity to say thank you to Ukraine’s allies for this unwavering support,” says FAVBET’s creative copywriter Mykola Bezkrovnyi.

The campaign is based on short videos shot on the streets of Ukraine’s capital city of Kyiv. The centerpiece of the story are the Ukrainian fans with vintage scarves, which, many years ago, they waved during the matches of Ukraine’s team against our current allies. “We once held these scarves because we fiercely wanted to defeat you. We hold them now because we sincerely want you to win. Just like you want us to win too,” says the voiceover of the campaign’s manifesto.

This campaign was Favbet’s idea, and our task was to find the best form and style for it. We realized that we once used to be opponents on the football pitch with almost all of our current allies. Now, the scarves from these matches are turning from symbols of our rivalry into those of unity. Many fans still have them at home as a memory. We decided to use thescarves as a powerful visual symbol and built a campaign around them,” says Roman Gurbanov, Taktika co-founder and creative director.

In addition to the manifesto, the campaign also includes videos dedicated to supporting particular Ukrainian allies like Poland and England. The videos were shot by Ukraine-based studio Digital Religion known for their advertising work for the world’s leading brands like Samsung, Visa, Pepsi, Uber, and others. Check out the videos on FAVBET’s YouTube:

Support those who support us

FAVBET’s new campaign is not only a token of gratitude to the allies, but also a reminder that the war, unlike a football match, does not end with the referee’s whistle. While the World Cup will wrap up in a few weeks, Ukraine will continue its fight against the aggressor that seeks to destroy Ukrainian identity and its need for support will remain as high as ever. That is why FAVBET Foundation is now accepting international donations so that football fans from all over the world can also contribute to Ukraine’s victory. Make your donation on the Foundation’s official page

As an international company with Ukrainian roots, FAVBET has been supporting Ukraine since the first days of Russia’s full-scale invasion, implementing numerous humanitarian initiatives and providing the Ukrainian military with the necessary equipment. Today, 95% of FAVBET Foundation’s projects are focused on helping the country’s citizens and the army, i. e. evacuating residents of frontline cities, purchasing ambulances and vehicles for the needs of the Armed Forces, as well as supplying high-tech communications equipment and drones.

Credentials

FAVBET

Head of Brand – Alexander Tarasov

Brand Manager – Anna Lytvynchuk

Marketing Project Manager – Yanina Baranetska

Creative Producer – Oleksii Marakhovskyi

Digital Content Producer – Iryna Kondratyeva

Creative Lead – Anatoly Simachynskyi

Creative Copywriter – Mykola Bezkrovnyi

Digital Religion

Director – Gleb Feldman

Taktika

Creative Director – Roman Gurbanov

Art Director – Illia Pochkun

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