Types of Entertainment Markets: a Complete Overview

The selection of a region and country to work in is the first step towards creating a prosperous iGaming enterprise. Business owners need to take into account many nuances. These are licensing rules, territorial/demographic features, and the level of competition.

Experts of the Online Casino Market studio will talk about the main iGaming jurisdictions, as well as the rules and nuances of choosing a jurisdiction to launch a successful startup.

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Features of Entertainment Markets

Digital casinos and sportsbook platforms thrive all over the world, each time expanding the geography of gambling. Some operators start their journey with small projects, while others confidently scale their business.

Understanding the peculiarities of working in the selected region is a key task for entrepreneurs. Not all markets are regulated equally: each of them has differences in terms of demographics, cultural interests, and earnings. All these factors affect the development of games for money in each specific country and the future success of casinos.

Experts predict that by 2030, the capitalisation of the entertainment sector will reach $140.7 billion. The average CAGR (growth rate) is going to be 11.3%.

Today, the iGaming vertical is at its peak for many reasons:

1. High interest among the population. About 4.8 billion people regularly place bets online. Many of them play every day, but the vast majority visit their favourite sites from 2 to 3 times a week. Thanks to this, the industry today is characterised by a huge volume of high-quality organic traffic, which quickly converts into decent profits.
2. Development of technologies. Gadgets make casino and sportsbook products available from anywhere in the world in 24/7 mode. The introduction of virtual/augmented reality improves the user experience and the addition of artificial intelligence makes the gameplay safe and personalised.
3. Capital inflow. Many entrepreneurs are currently investing in the digital entertainment niche. They are investing huge amounts of funds in launching startups, building advanced data centres, and developing social projects dedicated to the responsible gambling topic.

Geographic Division of Markets

All of them can be grouped by region and have a common approach to regulating and managing the industry. There are also similar cultural characteristics, as well as economic and socio-demographic growth factors.

Europe

This is the dominant region, which, according to analysts, will generate 40% of global iGaming revenues in 2030. The market will account for about $56.2 billion in GGR with an average annual CAGR of 12.3%.

The continent is home to 3 states from the top 5 jurisdictions with the highest profitability of casino projects. These are the United Kingdom, Germany, and France. Italy, Malta, Estonia, Latvia, and the Scandinavian countries also generate stable revenues.

Features of the European territory:

• centuries-old gaming traditions;
• legalisation of the digital sphere;
• high competition.

In recent years, local jurisdictions have had a stricter policy towards games for money. This is reflected in the increased taxes and new restrictions on advertising. For this reason, many brands are re-registering in offshore zones to minimise the fiscal burden on their businesses.

In Europe, 3 states offer preferential taxation and a simplified procedure for certifying a legal entity. These are Malta, the Isle of Man, and Gibraltar.

Asia

Experts from Market Research Analysis predict that by 2030, the GGR of this region will be $50 billion. It takes second place in terms of capitalisation and is not homogeneous.

Gambling companies are concentrated in Southeast Asia. These are the Philippines, Vietnam, and Myanmar. Malaysia also provides a colossal volume of Internet traffic, although entertainment for money here is officially prohibited.

The opposite situation can be observed in the Middle East. In Iran, Iraq, Pakistan, and other territories, casinos and betting shops are illegal for religious reasons.

North America

Investors' greatest hopes are tied to the United States, where the ban on virtual gaming was lifted in 2018. Today, each region is developing a legal framework to regulate this issue.

So far, only 3 American states have fully launched the market:

• Pennsylvania;
• New Jersey;
• Nevada.

North Carolina, Michigan, Delaware, and other countries will soon join them.

Latin America

It is on the path to legalising the iGaming vertical, which had previously operated in a grey area for many years and did not generate revenues to the budget. Currently, online entertainment is permitted in Mexico, Peru, and Colombia. Brazil, the largest economy in LatAm, plans to open a digital sector by the end of this year.

Latin America is home to well-known offshore zones: Curacao, Panama, as well as Antigua and Barbuda. They attract brands due to low taxes, developed IT infrastructure, and transparent licensing procedures.

Africa

This is one of the most underrated regions, and it has huge growth potential. In most states, the iGaming niche is just emerging. There is not as much competition here as on other continents, so companies have room to grow.

Kenya, Nigeria, and South Africa have the largest industry income.

Classification by Legal Status

Usually, the work of casinos is controlled by the government. This approach ensures their transparent operation, brings good revenues to the budget, and protects users from dishonest entrepreneurs.

In many jurisdictions, the status of online games has not yet been fully determined. There are also those territories that are on the way to legalising the sphere.

Regulated Markets

They control the acceptance of bets by issuing permits. The traditional certification model was first introduced in Europe and quickly spread to other regions.

Features of such an approach:

• a clear procedure for obtaining and revoking a licence;
• well-developed IT infrastructure;
• an emphasis on responsible gambling.

Currently, there are 79 markets, the lion's share of which is located on European territory. These are Denmark, Sweden, Romania, the United Kingdom, Croatia, Ukraine, etc.

Such countries are the most popular among business owners. This affects the level of competition, which is traditionally higher there.

It can be difficult for young startups to compete with established firms with a solid customer base and huge resources. For this reason, many entrepreneurs start their journey in offshore zones and only then attract clients from Europe or Asia.

Operators should also take a closer look at the following new markets:

1. The Netherlands. The iGaming vertical was legalised here at the end of 2021. The local control authority (Kansspelautoriteit) has already issued more than 15 certificates for accepting bids in casinos and bookmakers’ offices. Experts call the Dutch sector one of the most promising in the coming years, so it is worth investing in it.
2. Albania. The ban on online betting was lifted at the beginning of 2024. The first 10 licences were received by domestic operators. They can only accept digital payments through a financial provider with the permission of the Central Bank. These are Western Union, Unionnet, and other companies.
3. Finland. The country plans to lift the monopoly on accepting wagers in 2026. The government is currently working on entertainment legislation. For example, it is already known that B2C certificates will be issued for 10 years. B2B software vendors will be able to receive a document for 5 years.

Black Markets

They prohibit gambling in any form. Such restrictions may be explained by political motives, cultural considerations, or religious beliefs.

For example, digital betting is forbidden in all Muslim countries in North Africa and the Middle East. In Iran, Pakistan, Iraq, and other jurisdictions, it is considered a serious crime. The offender may be imprisoned or even sentenced to public execution.

In some countries, entrepreneurs can only offer their services to foreigners. A striking example is Thailand. There are many casinos in resort areas that are aimed at wealthy tourists.

Currently, there are 70 prohibited markets where operators cannot launch iGaming startups, receive tax breaks, or hire local employees.

Grey Markets

Such states do not directly prohibit the placement of bets or specific legal rules.

Features of these zones:

• lack of a general licensing procedure;
• low level of awareness about responsible gambling;
• unpredictability and instability.

There are 46 unregulated markets, the most famous of which is India. Officially, casinos are allowed to work in only 3 states (Goa, Daman, and Sikkim). In practice, offshore sites accept bids from users from different regions, and the local government does not preclude this in any way.

The main disadvantage of grey gambling regions is their unpredictability.

For example, in Kenya, the entertainment sector was not regulated in any way until 2019. This attracted many foreign brands, which invested huge amounts of money in the development of startups of this type.

In 2019, the government legalised the industry and introduced a GGR tax of 20%. For this reason, most providers stopped working in the country and moved their resources to other places.

How to Choose a Market to Work In

Finding a state to open a business is not an easy task. It is necessary to take into account many factors/nuances, study the regulatory framework, and get acquainted with the cultural preferences of residents.

General recommendations from experts:

1. Selection of the market’s type. Both a regulated jurisdiction and a grey area will suit beginning entrepreneurs. In the first case, project owners get stability, and in the second — an easier and faster launch of their websites.
2. Finding the right region. Most often, operators are guided by the geographical principle. If they were born or lived in one country for a long time, it is logical that they will choose it (or a neighbouring jurisdiction) to create a virtual casino or a bookmaker’s office.
3. Analysis of the legal framework. It is necessary to study the certification rules, requirements for applicants, and the validity period of the permit. An important point is the restrictions on advertising and the age limit established in a particular state. These parameters determine the speed and volume of the attraction of solvent Internet traffic.
4. Preparation of a business plan. It is worth paying attention to the expenditure side of the budget. These are the costs of certification, acquisition/rental of products, software installation, and the use of hosting services. Income is calculated based on general statistical data for the region. This is the cost of an average check, duration of sessions, frequency of entry to the portal, and other parameters.

The Main Things about the Most Promising Casino Markets

The selection of a region is an important step before launching a profitable iGaming startup.

Key aspects that businessmen need to take into account:

• The most common classification method is the division of markets by geography. It is possible to open digital resources in Europe, Asia, North or Latin America, and Africa.
• About 40% of the world's entertainment revenues are provided by the most popular and profitable European market. The USA and LatAm are just opening their casino jurisdictions. Africa and Asia are still characterised by a low level of competition, which means good prospects for project scaling.
• Gambling markets are also classified according to their legal status. There are official and unregulated regions, as well as grey zones.
• The choice of market is based on many factors. It is necessary to study the regulatory framework, take into account advertising restrictions and the minimum age of gamers, and calculate all the expenses for launching a startup.

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From us, it is also possible to order the following useful services:

• creation of exclusive HTML5 slots;
• assistance in obtaining a licence;
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• security software integration;
• promotion of iGaming resources, and much more.

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