The year 2023 has been full of surprises for the global gambling industry, and we look to 2024 to provide some predictions for what this year may hold. [Image: Shutterstock.com]
The gambling industry is constantly going through waves of change. New laws are implemented and businesses adopt thriving technologies, while catastrophic events sometimes wait just around the corner.
2023 was full of intrigue as more US states embraced legal sports betting, artificial intelligence (AI) emerged as a potential source of major industry disruption, and many major casino companies suffered debilitating cyberattacks.
While we don’t have a crystal ball, Vegas slots news online She has done her best to provide some predictions about the gambling industry through 2024:
More integration with artificial intelligence (AI)
Artificial Intelligence has been around for several years, and it exploded into public interest this year with the advent of ChatGPT, which launched in November 2022. The general public has woken up to the many advantages this type of technology can have in all aspects of their lives. . Companies are now scrambling to figure out how they can integrate AI to become more efficient and keep competitors at bay.
We are likely to see more adoption of AI in the gambling sector in 2024. This will include developers leveraging it to create more compelling casino games to try and hold players’ attention for longer periods. Companies will also be able to collect data more efficiently, helping them better improve games by seeing what works and what doesn’t.
AI tools can quickly detect suspicious betting patterns
AI security tools can provide added convenience to operators as they battle against the increase in cyberattacks. They can also offer the most effective geolocation tools that can determine if someone is using a VPN to access the platform from a blocked country. Some AI tools can quickly detect suspicious betting patterns and see if someone is using multiple accounts through the same device or displaying signs of problematic gambling behavior.
Further standardization of sports betting in the United States
It is truly survival of the fittest in the sports betting sector in the United States. Many small operators have been squeezed out of the market, unable to compete with the huge amounts of money being spent by the big players FanDuel and DraftKings to gain market share. The latter achieved marketing costs of approximately $200 million in the second quarter of 2023 alone.
The platforms will be taken over by larger players or folded altogether
Many sports betting operators are progressing slowly without making much progress in what is typically considered a low-margin business. Many of these platforms will likely be acquired by larger players or fold altogether. Meanwhile, larger operators hope to start making steady profits.
ESPN Bet and Fanatics are relative newcomers to the US sports betting sector and are looking to capture a significant share of the market. It will be fascinating to see if Fanatics can capture its projected 20% market share or if Penn Entertainment can capitalize on the ESPN brand and gain a foothold for itself after the debacle of its former partner Barstool Sports.
Businesses are embracing virtual reality and augmented reality
Two other emerging technologies that are gaining momentum are augmented reality (AR) and virtual reality (VR). Although these technologies have been around to some extent for some time, they have now reached a point where they can prove useful in gambling-related presentations.
Integrating an augmented reality experience to make live dealer games more realistic
In 2024, we expect that more online casinos will start offering augmented reality experiences to make live dealer games more realistic. More than ever, players will feel like they are physically sitting at the casino table when they put on headphones. They can interact with the dealer and fellow players in a frighteningly realistic way.
Some companies are also working on fully immersive online gambling experiences via virtual reality that allow people to walk around a virtual casino and play anything that might tickle their fancy.
Companies are investing more to combat cyber attacks
Both Caesars Entertainment and MGM Resorts International were notable victims of cyberattacks in 2023. Hackers also targeted other casinos, but none felt the effects quite like these two industry giants.
While Caesars paid a $15 million ransom and tried to keep the scandal as secret as possible, MGM took a different approach. It refused to pay the hackers anything and its Las Vegas properties faced serious outages for weeks before the operator was finally able to get systems back up and running. The whole ordeal is said to have cost the company around $100 million.
Major corporations such as MGM and Caesars are lucrative targets for hackers. In addition to having significant financial resources to pay ransoms, they also have databases containing the personal information of millions of customers. This kind of data can fetch a pretty penny on the black market. Other big-name casino companies are hoping to avoid similar problems in 2024.
We will likely see all kinds of gambling-related companies investing heavily in cybersecurity in the future. Employee training will become a major focus, because social engineering is how these nefarious groups often gain access to networks. One concern we have is whether smaller operators will have the resources to properly invest in this area in 2024, with consumer confidence and reputation at stake.
Opening more gambling markets in the United States
Two of the most interesting things to watch in the US next year are the impact of sports betting in Florida and the granting of three full casino licenses in and around New York City. Hard Rock Bet is now finally up and running after a two-year legal battle. With a population of over 26 million, Florida can compete with New York for dominance in the sports betting rankings.
It appears that two of the three licenses will go to MGM Resorts and Genting
Then there’s the awarding of three $500 million casino licenses in central New York State that are being contested by about a dozen different parties. The companies that come out on top will have access to a very lucrative market. While it looks like two of the three licenses will go to MGM Resorts and Genting, there will be a huge battle to get the final stamp of approval.
Spectrum Gaming estimated that the Manhattan casino resort could generate $2.3 billion in annual gaming revenue.
With more than 35 states already having legal sports betting, all eyes are now turning to the iGaming market. Online casinos have much higher margins than sports betting. Only six states currently have these types of platforms in operation. We expect lawmakers in jurisdictions like New York, Maryland, Indiana, and Illinois to give it serious consideration in 2024.
