The gaming consultancy, which has tracked the trajectory of iGaming for over a decade, will be giving three talks at MiGS looking at the past, present and future of the sector.
Global Betting and Gaming Consultants (GBGC) has confirmed its presence at this year’s Malta iGaming Seminar (MiGS), where it will draw on its decade-long research into interactive gaming to give three in-depth presentations on the past, present and future of the sector.
GBGC will tap into its regulatory expertise in particular, offering insight into global trends, and advising delegates on the impact of high taxation on iGaming markets.
Director Lorien Pilling commented: “Malta benefits from the fact that it has a large e-gaming community, so seminar gets a good attendance. This year, we’ll be looking at opportunities in Eastern European markets, which seems to be following the pattern of Western Europe at present, and we’ll also be explaining to delegates the changes we’ve noticed in iGaming over the past ten years – and emerging opportunities.”
The leading consultancy firm has been tracking the sector for its Interactive Gambling Report, noting that the prevalence of local, onshore licenses has soared in the period between 2005 and 2015. A decade ago, the level of interacting gambling Gross Gambling Yield (GGY) in Europe earned under local, onshore licenses was at 27 percent, but in 2015 it is expected to reach 65 percent.
“The European Commission has been putting pressure on member states to open their gaming markets to competition and governments are technically doing this by offering licenses, but at the same time, they’re imposing high tax rates which make the region less attractive to do business in,” explained Pilling. “Gambling tax rates determine a huge range of factors, like what types of bets can be offered and whether the pay-outs to customers are attractive, so it’s really the basis for a successful or an unsuccessful market.”
Research collated by the Remote Gambling Association (RGA) in markets such as France and Italy confirms GBGC’s assessment that punitive tax regimes are damaging to the iGaming market. But Pilling suggests that operators can also find ways to thrive in the region if they adjust their strategies accordingly.
“Tax will have a knock-on effect on your marketing strategy, what kind of bets you promote, and even what kind of sports you promote because some sports have a higher margin inherent in their model than others,” he said. “For example, in-play sports betting tends to be high-volume, low-margin, so if you have a high tax rate you need to actively encourage recycling of winnings.”