From Our Members

The iGaming opportunity: Balancing risks and rewards  

For entrepreneurs considering entering the iGaming industry, understanding and mitigating the risks is as important as recognising the opportunities.

The iGaming industry offers great investment opportunities for entrepreneurs due to its dynamic growth and technological innovation. It remains strong even during tough economic times, particularly evident during the Covid-19 epidemic when the worldwide revenues of the iGaming industry surged to nearly 60 billion US dollars, as was shown by GBGC data. Such resilience presents excellent prospects for long-term revenue generation and market expansion.  

However, taking full advantage of the long-term benefits requires a nuanced approach, especially for newcomers. While the prospect of selecting a renowned provider and investing seems straightforward, the high-risk nature of the industry demands careful consideration of both opportunities and risks. 

Laying the foundation: Starting an iGaming business 

For entrepreneurs venturing into iGaming, the initial phase is critical. Selecting the right platform and implementing robust anti-fraud measures can significantly influence the trajectory of the business. Understanding the unique challenges of the industry, such as regulatory compliance, market dynamics, and fraud risks, is essential for establishing a strong foundation. 

In iGaming, operators confront a myriad of fraudulent activities, from bonus abuse to identity theft; any perceived vulnerability or absence of robust risk management can invite an onslaught of fraudulent activities, making stringent fraud prevention measures not just best practice but essential for survival.

Sophisticated algorithms and machine-learning techniques are essential to identify and mitigate these threats. Additionally, the risk of affiliate fraud looms large, requiring partnerships built on mutual trust and a shared commitment to fraud prevention. This requires operators to combine advanced technology with expert insights to proactively monitor and respond to player behaviour. 

Emerging Europe: A region of opportunity and unique challenges 

The emerging Europe market, with its diverse regulatory landscapes and consumer preferences, offers a distinct opportunity for iGaming businesses. Navigating this region requires an understanding of local market dynamics and the ability to adapt to evolving legal frameworks, making it crucial for operators to be well-versed in these aspects for successful market entry and sustained growth. 

Effective risk management means legal compliance; it is not an option but a necessity, with legal diversity often requiring rigorous levels of risk management. Ignoring this can lead to grave legal repercussions for iGaming companies. Moreover, addressing risks early prevents them from escalating into crises, as early identification and management of fraud risk can prevent overwhelming issues for the unprepared business.  

Building trust with advanced technology: Mitigating risks in iGaming 

In the iGaming industry, trust is a crucial currency. Establishing and maintaining this trust hinges on robust security measures and proactive risk management. Implementing stringent anti-fraud systems is not just best practice but a necessity for building credibility and ensuring long-term success. This involves not only employing advanced security technologies but also fostering a culture of integrity and transparency within the organisation. 

Leveraging technology is key to combating fraud and managing risks in the iGaming sector. This includes the use of AI-driven algorithms for real-time threat detection and predictive analytics to anticipate and counteract fraudulent activities. By adopting these technologies, operators can shift from a reactive to a proactive stance in fraud prevention, essential for safeguarding their businesses. 

GR8 Tech: A balanced approach for iGaming success 

For entrepreneurs considering entering the iGaming industry, understanding and mitigating the risks is as important as recognising the opportunities.

For newcomers in the sector, GR8 Tech offers a robust safety net with our state-of-the-art risk management and anti-fraud capabilities.

Our system efficiently processes and analyses vast data sets to identify potential threats, leveraging AI-driven algorithms that can detect subtle patterns of fraudulent activity. We provide real-time monitoring and alerts, ensuring immediate response to any suspicious behaviour. With a proven track record of saving one-three per cent Global Gaming Revenue (GGR) monthly, and up to five per cent at the start of operations, GR8 Tech’s risk management is designed for protection and fostering trust and security, essential for the growth and sustainability of emerging iGaming businesses. 

A balanced approach, encompassing a deep understanding of the market, rigorous anti-fraud measures, and the effective use of technology, is essential for navigating this dynamic and challenging industry successfully. 

This content has been produced in collaboration with a partner organisation through our Global Visibility Programme. Our programme helps companies boost their digital presence and strengthen the thought leadership of their experts. Find out more here.