Gambling Industry Predictions for 2017

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Thursday, January 19th, 2017 | Written by Stephen Smith

Now that we’ve rung in 2017, gambling industry insiders have provided their predictions for what lies ahead in the world of online and live gambling. Recently, renowned experts Calvin Ayre added his voice to the chorus by outlining his set of predictions for 2017, and here is a breakdown of his gambling forecasts.

Bitcoin To Make Big Inroads

In 2016, the UK Gambling Commission ruled that bitcoin could be used as legal tender for online gambling, and major operators around the world are also beginning to accept its use. Ayre believes that in 2017, we’ll begin to see bitcoin online betting surge in popularity, not just because it is convenient, but because it will allow for greater transparency at the gaming tables. As the Canadian entrepreneur explains:

“Think of it: with the blockchain documenting every financial transaction, spin of a roulette wheel and roll of the dice, gamblers can act as their own regulators, with any examples of shady behavior on full display for all the world to see and market forces punishing any operator stupid enough to think they can get away with it.”

Antigua To Become a Hot Spot for Operators

There may be bad news ahead for offshore operators in the Philippines, with the 2016 inauguration of controversial President Rodrigo Duterte. The controversial politician is staunchly anti-gambling and has instituted major reforms in the country’s laws governing offshore gaming licenses. As a result, many operators found themselves shut out of the country, and are now looking for a new home base of operations. The Caribbean island nation of Antigua is hoping to fill that void, and is working on legislation that will allow the country to issue more offshore gaming licenses.

Ayre has first hand experience of Antigua having made the island his home, and as he explains: “Antigua has a BPO labor force with a skill level equal to or surpassing that available in the Philippines, and Antigua’s leaders appear determined to craft a new tax and fee structure that will prove inviting for operators set adrift by the Philippines shakeup.”

Restrictions Ahead in the UK

During 2016, protests against gambling in the UK have grown louder, and Ayre believes the UK Gambling Commission will revamp existing rules in response to the outcry. He feels that online gambling operators will be banned or more severely restricted on television advertising and that new rules for fixed-odds betting terminals are in the works. Specifically, he sees a reduction in stakes limits and potentially a decrease in the maximum number of terminals allowed per shop ahead.

Fewer Operators at the Close of 2017

Ayre sees no end to the trend of operators consolidating and merging in order to remain financially afloat. He believes that 888 Holdings and William Hill may finally make the move that many industry insiders believe is a natural progression for both businesses. GVC Holdings may also be in the market to buy out a competitor, perhaps once again trying to purchase Amaya.

In his prediction, Ayre also notes that it has been mostly public companies making such deals, and that their shareholders invariably receive big bonuses for their success. Referring to the privately held Bet365, Ayre explains: “Given that the company’s top shareholders, execs and directors are all the same people, there’s little incentive to reward themselves with their own cash for doing a deal at any cost.”

New Markets Will Emerge

Ayre believes that online gambling will expand in a number of important markets in 2017. For example, he thinks that Brazilian lawmakers will finally manage to come to an agreement on their gambling legalization bill, but feels that the attention will likely be focused on land-based casinos with only a state-run monopoly controlling online gaming.

Also on his list of places that are likely to adopt new online gaming laws in the New Year is Germany, which he predicts will roll out new laws along with their currently-being-drafted sports betting laws. Unlike some other experts in the industry, though, Ayre thinks that 2017 is too soon for India to make any progress on legalizing online gambling on a nationwide scale; however, he believes that play among Indians who live in states where gambling is legal will increase, perhaps setting the stage for action in 2018.

Finally, Ayre predicts that Australia will encounter troubles as it tries to clampdown on illegal online gambling operators offering their products in the country, and as he explains:

“Just ask China, where all online gambling is banned, and yet somehow the entire Asian-facing online gambling industry caters to Chinese gamblers. The only thing Australia’s ban will guarantee is jobs for life for the handful of individuals tasked with compiling the daily lists of online gambling mirror sites that need blocking.”