Mobile Gambling Market

Online gambling market is growing at a significant rate. As countries are legalizing online gambling, it is creating growth opportunities for online gambling to expand and enhance their revenue. Also, a large number of games are going online specifically over mobile phones which in turn is helping the overall mobile gambling market. Another key driver for the market is increased popularity of mobile gaming among the young population. However, there is one key challenge in the market, which is risks related to cyberattacks, that is a major concern for both the mobile gambling providers and gamblers. Mobile gambling app providers are working to overcome this challenge by using various authentication solutions to secure the entire process.

Globally, mobile gaming has gained popularity among young age groups. This is largely due to the availability of affordable internet connectivity and increasing ownership of smartphones. Also, due to the increasing availability of highly sophisticated smartphones that are compatible with online gaming platforms, the mobile gaming trend has picked up pace, globally. The growth of mobile phones has also made it easy for people to download a game and play it whenever and wherever they want. This has led to the growth of “casual gamers” who specifically use smartphones for playing games. Recently, a whitepaper named ‘’ the state of online gaming – 2018” was published by Limelight Network that surveyed 3,000 consumers aged 18 and older in France, Germany, Japan, South Korea, the United Kingdom, and the United States who play video games at least once a week. The survey found that gamers spend more time playing games on mobile phones than on computers, tablets, and gaming consoles. These gamers, on average, play games for not less than one hour and 20 minutes. Additionally, younger gamers (age 18–25) spend more hours every week watching online games (over smartphones) than watching traditional sports on television sets. The gamers, in addition to watching and playing games, get involved in betting in games such as poker, casino games, or sports such as football and cricket. The statistics therefore clearly shows that mobile gaming is extremely popular among the younger population and due to this, a greater number of young gamers are betting on different mobile games, that is, in turn, expected to drive the mobile gambling market.

Gambling industry is huge and with the growing accessibility of the Internet and rapidly increasing smartphone ownership, mobile gambling market has also gained growth momentum. Due to growth opportunities in the mobile gambling market, many blockchain technology providers are trying to enter this market. One such company is Bitbook.ag. It is a blockchain-based gambling and betting platform provider, founded in 2018. The company believes that blockchain can disrupt the online gambling market by creating security and authenticity in the entire process of online gambling. Gamblers often resist betting on online games, since they do not entirely trust the betting process. There have been instances where people have unfairly lost money, or the online betting company blocked the winner from using the site again. Such instances have resulted in the loss of trust of people in online gambling sites. In a typical gaming site, all operational matters about bets, payment, and game are between betting site and software providers; players often do not have the option of verifying their bets. Therefore, gamblers are often afraid of being cheated due to nature of how such gaming sites work. There are few third-party authorities that monitor the operation of online gambling sites including Gaming Laboratories International, eCOGRA, and iTech Labs. However, irrespective of the presence of these third-party providers, gamblers are resisting from betting on online games. Blockchain technology is a kind of distributed ledger which stores data/information in a network of blocks and anyone linked to that network can easily access it but cannot tamper the data stored in it, which enables it to act as an authentic means of storing and sharing information. In online gambling, blockchain technology can store all the data related to bets, the results of the game, and payments details and all the players linked to this block can easily verify it any time which makes this technology reliable. Another key advantage of blockchain technology is that it provides ease of transaction with the help of cryptocurrency with no mediators such as third-party financial institutions or banks. Companies operating in the online gambling market can leverage the capability of blockchain to attract gamblers to play and place their bets. Few start-ups have already started using this technology. For instance, Bitbook.ag (US), one of the players offering blockchain-based online betting games, launched its platform in the year 2018 with more than 200 casino games including roulette, slots, poker, blackjack, and other sports betting. The company already has strong a base of loyal customers. Edgeless (Lithuania), founded in 2018, is yet another mobile gambling provider that offers Ethereum-based online casino games and uses smart contract technology for payments.

1.1 Regulatory Landscape / Standards

Mobile gambling market is highly regulated. Countries have laid down different regulatory standards to control and monitor the type of games that can be gambled. In fact, there are a number of countries that do not consider online gambling as a legal way of earning. Countries where online gambling is legalized also levy taxes on the winning amount. Some of the key regulatory standards on mobile and online gambling laid down by various countries are as follows:

1.1.1 Unlawful Internet Gambling Enforcement Act (UIGEA)

This law was adopted in the year 2006, in the US. The aim of this law is to regulate online gambling in the country. The law, therefore, prohibits financial firms in the US to process payment to or from any illegal gambling or betting site. The law does not ban or outlaw online gambling, instead, it bans the payment made to any unauthorized or unlicensed gambling sites.

1.1.2 eCommerce Online Gaming Regulation and Assurance (eCOGRA)

Established in the year 2003, eCOGRA is an international independent regulatory body in the online gambling industry. It is based in the UK. The regulatory body was formed with an aim to ensure fair gaming in the online gambling market and to protect the players from being scammed by online gambling sites. Some of the key objectives of this body is to protect vulnerable customers, combat fraudulent and criminal behavior, and safeguard customer privacy among others.

1.1.3 Gambling Act 2005

The act is applicable in England and Wales, and Scotland. It was designed to monitor and control all forms of gambling. The aim of the act is to protect children and any other vulnerable individuals from being exploited by any form of online gambling

1.1.4 Betting (Amendment) Act 2015

The act is applicable in the country of Ireland. The main purpose of the act is to regulate various betting intermediaries and remote bookmakers, i.e., mobile and internet betting providers). Also the law has laid down regulations on providers to have a proper license and pay the required betting duty.

1.1.5 Gambling Act (2003)

The act is applicable in the country of New Zealand. The purpose of the act is to control and monitor the growth of gambling, authorize only certain online gambling and prohibit the rest, facilitate responsible gambling, and ensure integrity and fairness of the game among others.

1.1.6 Interactive Gambling Act

The act was passed by the Australian government in 2001, with the aim of protecting people of Australia from the harmful impact of online gambling. It was further amended in 2016 due to several loopholes in the previous Act.

1.2 Best Practices

Gambling is often considered to be harmless fun. However, some individuals develop gambling addiction which leads to a number of social and financial problems.

1.2.1 Best practices for gamblers in online gambling

1.2.1.1 Management of finances

The most important thing to take care while playing mobile gambling is money management. The players must manage their finances wisely, in order to avoid unexpectedly losing a lot of money. The player should separate his/her funds, in order to prevent spending the entire sum at once. The players must avoid betting a large sum in order to compensate for losses in case they are in loss. It is essential not to make impulsive decisions and not compromise their judgment.

1.2.1.2 Self-Exclusion

The mobile gambling players who feel the compulsive need for gambling should choose the option of self-exclusion. The online casino then blocks the access of the player to the account and return any funds it contains to the player.

1.2.1.3 Self-Limitation

It is important for the player to encourage responsible gambling such as setting a limit on how much a player deposits in his account each month or put a cap on the losses for a specific game. Also, the players can set the length of a gaming session, which lets the player to spend only a limited time on gambling.