Online gambling has been growing exponentially in the last decade. The market is growing rapidly and according to a report by Research and Markets, it is expected to reach $72.02 billion by the end of this year, at a compound annual growth rate (CAGR) of 12.3%.In part, it is due to a fast internet connection becoming available to more people and the demand for online gaming increasing. For most of its history, online gambling was a reasonably secure environment. Still, recent developments have brought about significant changes in how people can pay for their time at the tables, slots, or sports events.
1 Security Issues
One of the biggest problems facing all online casinos is security issues, especially around payments. For many years ‘phishing’ was a big problem for several major casino groups, with hackers sending out emails that appeared to have come directly from the site asking for personal details including passwords, credit card information etc. These attacks were designed to steal money from accounts without raising suspicion until after it was too late. This type of security problem is still a concern as casinos have been targeted several times in recent years, but now the biggest threat comes from within. The employees of online casinos are a serious security issue with many incidences of theft either by internal staff members or ex-employees. This type of breach can cause huge damage to a casino’s reputation and players tend not to trust them again after such incidents.
One major issue that operators face is regulation. Generally, gambling sites are regulated at the host country level, which means that if you want your site to accept customers from around the world, you need to get licenses from all those different jurisdictions. If you only operate within one territory, this isn’t really an issue, but it makes expansion difficult. The other side of the coin is that regulations can change very quickly, and this makes planning a business difficult.
3 Payment Options
Given that gambling has been a fairly cash-only business for a long time, finding ways to pay online was not always easy. In recent years technology has made it possible to use all the usual payment options, including credit cards, bank wires, and e-wallets such as PayPal/Alert Pay, etc. All these methods have their own pros and cons, but they work well enough for most players as long as they are reasonably secure. For those who don’t want to use traditional payments, there are newer alternative payment providers who also offer solutions. Cryptocurrency Bitcoin has become a popular payment method in the online gambling world, and there are now a number of Bitcoin casinos that offer excellent games and bonuses.
Another issue that operators face is the different currencies that their players may want to use. For example, you might have customers who want to deposit and play in Euros, while others might want to use British Pounds.
This can be a problem if your site is only set up to deal with one or two currencies, as you then have to find a way to convert them. Most gambling sites now use some form of currency conversion, but it can be an expensive process so casinos are always looking for ways to reduce these costs.
One of the biggest problems for any business that deals with payments is chargebacks. A chargeback happens when a player disputes a payment that has been made to a casino. This can be for a number of reasons, such as the player not receiving the product they paid for, the product not working or being defective, or simply that they didn’t authorize the payment in the first place. In some cases, the player may have been scammed by the casino and so will try to get their money back. The problem for casinos is that chargebacks are often difficult to fight and can be very costly. Not only do they lose the money that has been disputed, but they also lose any associated fees such as those charged by payment processors. In extreme cases, a casino can even have its license revoked if there are too many chargebacks.
6 . Fraud
Another issue that operators face is fraud. This can come in many shapes and forms, but essentially it involves someone trying to either steal other people’s details or break into the casino itself by targeting its software. There are many ways that an attacker can try to get access to other people’s data, but one of the most common is DDoS attacks, where thousands of computers are used to attack a website with traffic until it becomes overloaded and can’t function correctly. The attackers then offer to stop the attack in exchange for money. Another type of fraud includes rogue employees who may be tempted into stealing account information or installing keyloggers on players’ PCs in order to collect passwords etc. As you might imagine, this type of fraud causes huge damage to both the player and operator reputations.
7 Customer Retention
Finally, one of the biggest challenges for any business is customer retention. This is especially true in the gambling industry, where players can be very fickle and may switch sites at the drop of a hat if they are not happy with the experience. It’s therefore vitally important that casinos keep their players happy by offering good customer service, bonuses, and other promotions and by keeping the games running smoothly. If they can do this then they are likely to keep their players for a long time.
As you can see, there are a number of different payment issues that operators face when running an online gambling site. By understanding these challenges, casinos can put in place the necessary procedures and systems to reduce the risk of financial loss and reputation damage.
At Capitalixe, we aim to assist online casinos in finding reliable payment solutions that fit their needs. We’ve partnered with leading financial institutions and payment processors from all over the world, which means that we can provide access to a variety of banking options for our operators.
We constantly monitor all transactions, so you can be sure that your customers’ funds are safe and secure at all times.
Give us a call and see the difference for yourself.