The mobile gambling industry is experiencing rapid technological advancements, evolving consumer behaviours and significant and necessary regulatory change. This evolution creates a market where innovation is flourishing but challenged.
Technological innovation as a catalyst
Advanced technologies are helping to fuel these changes. Companies such as PokerStars VR, PartyPoker and Soft2Bet are experimenting aggressively with product and player experience innovation. PokerStars VR offers immersion in virtual reality poker environments, which some say adds back interpersonal interactions that are missing from digital poker. Soft2Bet’s utilisation of artificial intelligence (AI) can help manage the player journey by strengthening personalisation and detecting problem gambling behaviours. These technologies can help promote responsible gaming while increasing user engagement. Not everyone sees these innovations as drivers for commercial success, however. The excitement around virtual reality (VR) gambling faces practical challenges. The cost of VR headsets is relatively high and they have a limited user base right now. Some operators have experienced weaker customer responses to their VR initiatives, but it isn’t easy to generalise why, as the quality of VR content can vary widely.
Discussing this subject without including blockchain and its underlying technologies is impossible. Through secure and transparent transactions, blockchain attracts tech-savvy users who prioritise security and anonymity. Stake.com, a leading cryptocurrency casino, uses blockchain to streamline operations and reduce costs, leaning heavily into the premise that blockchain is unlocking operational efficiencies that can’t be matched by competitors who reject it. Traditional operators are cautiously exploring blockchain’s potential, but it’s a slow path to implementation for this business segment.
The future of mobile gambling, much like a well-played poker hand, lies in the ability to adapt, innovate and sometimes, bluff convincingly
Mobile platforms are growing the market alongside traditional gambling methods and driving substantial market successes. FanDuel’s $1.9m revenue within its first month in Washington DC clearly showed the rapid adoption and financial potential of mobile gambling in that market. DraftKings and BetMGM have similarly reported figures showing wide acceptance of mobile gambling throughout their operations. Bet365 has also reported that integrating social features into its mobile app has improved player engagement, and they believe these features foster a more interactive gambling experience.
Challenges and competitive pressures
Traditional brick-and-mortar casinos are grappling with declining foot traffic, a challenge exacerbated by the rising popularity of mobile platforms. In Louisiana, for example, the Gaming Control Board reported that gross gaming revenue (GGR) from the state’s riverboat casinos and Harrah’s New Orleans totalled $157.6m in April 2024. This figure represents a 16.8% decrease month-over-month and an 8.3% drop compared to last year. Specifically, the 15 riverboat casinos collected $138.3m, while Harrah’s New Orleans posted $19.3m, showing significant declines from previous years.
The regulatory environment is and always will be a factor in how these technologies can be deployed. The Malta Gaming Authority (MGA) has implemented stricter regulations to enhance player protection and financial integrity. These include enhanced due diligence requirements, rigorous anti-money laundering (AML) procedures and comprehensive responsible gaming measures. Operators are now mandated to perform thorough background checks on high-risk players and scrutinise their source of funds to combat illicit activities. They must also provide self-exclusion options, set deposit limits and offer access to support resources for problem gambling.
In the UK, the Gambling Commission (GC) has also tightened regulations, notably banning the use of credit cards for gambling and imposing stricter age and identity verification processes. These measures aim to protect vulnerable players and prevent gambling-related harm but have also increased operator compliance costs.
The actions of organisations like the GC and MGA are widely acknowledged to be in the industry’s best interest, so it’s really about understanding how and where these new technologies may be appropriately introduced to leverage business and customer value while maintaining the market and consumer protections only these regulators can bring about.
Traditional brick-and-mortar casinos are grappling with declining foot traffic, a challenge exacerbated by the rising popularity of mobile platforms
Strategic implications and the path forward
Despite these hurdles, the overall trajectory of the mobile gambling industry remains positive. The shift towards mobile platforms is democratising access to gambling, making it more inclusive and accessible. AI-driven personalisation and innovative gaming experiences attract a broader, younger and tech-savvy audience who prioritise convenience and new ways to interact with gaming content. Companies like Soft2Bet, for example, set new standards by integrating robust, responsible gambling measures. They use AI to detect early signs of problem gambling and implement preventive measures, showing how technology enhances player safety and maintains industry integrity.
In the last few years, the mobile gambling industry has navigated rapid change with largely positive outcomes. While traditional and smaller operators face considerable obstacles, the overall impact is result-positive. The industry is adapting well to technological advancements, and regulators are cautiously supporting our entry into a future where mobile gambling will remain secure, engaging and accessible.
As this transformation continues, mobile gambling market share will remain resilient as operators strive to be agile and responsive to customer interest while simultaneously remembering the words of Steve Jobs, who famously said: “A lot of times, people don’t know what they want until you show it to them.” The future of mobile gambling, much like a well-played poker hand, lies in the ability to adapt, innovate, and sometimes, bluff convincingly.
