The online gambling industry is fast-paced and it is therefore not surprising to see that there are lots of changes happening. New gambling operators are coming up every day while others try to consolidate. The competitive pressure on the industry is very high and this goes alongside strong market growth and also new countries opening up to gambling like the US for instance.
In the current situation, every new player is essential, and gambling companies are doing what they can to secure new customers and retain the one they have.
Players habits have also changed significantly in the last few years. With the arrival of smartphones, players have started to play mostly from their mobile device also thanks to the improvements made by security and fraud prevention measures. Players are now typically playing from multiple devices, and they expect to have the possibility to do so everywhere they are and every time and get a consistent experience.
Although huge steps have been made to ensure a safe experience for customers, the techniques used by fraudsters are continuing to get more complex. This is why a consistent stream of investment is dedicated to developing advanced computer tools to detect and prevent any potential issue. Machine learning and artificial intelligence are widely used in this field.
Another area that has affected the digital gambling industry in the last period has been online data privacy regulations changes both in Europe and in the UK. Gambling companies are now investing a lot of their revenue in ensuring they are complying with local gambling regulations so that they can safely retain their license to operate.
Changing Habits of Players
According to CasinoBiggestBonus, 61% of gambling operators’ revenue is currently coming from mobile devices. In addition to this, 72% of betting stakes is coming from mobile. There are some implications to consider here:
– Mobile players require ease of use and convenience. Having to continuously login every time they visit the gambling site is not acceptable. Players will get annoyed quite quickly and will switch to a different provider capable of offering more advanced security protections like biometric verification.
Secondly, mobile players are not just using the mobile to connect. They usually own multiple devices like tablet, home computer, work laptop and so on. They will expect to be offered a consistent user experience across those different platforms and of course using the same account.
This factor is particularly challenging for fraud prevention specialists. This means that the prevention technology used by operators has to support lots of platforms and has to be capable of tracking fraud on several platforms.
Growing Fraudster Sophistication
Lots of criminals and fraudsters are improving their techniques and are using payment fraud which then results in expensive chargebacks and also increased credit card costs for the gambling companies.
Even if there are huge efforts from gambling sites to detect suspicious players, internet expert criminals have learned how to cover their true identity by overcoming IP address and geolocation validation and other tools designed to spot winning percentages, etc.
Fraudsters tend to change identities very frequently and lots of gambling sites tend to be abused by the same people all over again without being able to identify the source. Even when the account is found and closed, the fraudsters are able to create new accounts using others identities.
So the companies that are going to be in the future, would need to move beyond the personal information to properly detect fraud. A useful tool in this sense is a device fingerprinting fraud prevention: this is focusing on the device rather than the person to identify the user. This kind of tool gives online gambling sites a unique insight to spot fraud patterns. It also has the benefit that it doesn’t need to store and process personal information and therefore be compliant with most privacy regulations.
Providing Better User Experience
Having a solid fraud strategy tend to clash with sales and marketing teams that are getting frustrated when new players are rejected because of security concerns.
Working in synergy with the fraud team though it will be massively important as it could give gambling company valuable insights on how to improve the user experience without committing in security.
As more players are using their mobile devices to repeatedly login, it is crucial, from a user experience perspective, that players are able to access the casino game they want as quickly as possible but still keep their account safe. Additionally, as those players also move to other devices, they expect the same ease of login.
The device fingerprinting solution is a good one to improve also user experience while increasing security. When a device is linked with a user account traditional username/password procedures can be avoided as long as there are no risk flags.
User experience can also further enhanced by incorporating a flexible multifactor authentication technology. This gives players the opportunity to determine themselves what level of security they want for their account.
Identifying VIP Players
Machine learning can be also used to predict what is the level of risk of any online transaction: this can be done by comparing device characteristics to transactions that have similar patterns. In the same way the user experience can be enhanced as lucrative incentives can be offered to those customers that are likely to become VIPs.
So security should be no longer be siloed as it can bring good benefits to those online gambling companies that are willing to think outside the box. The gambling companies of the future will achieve the maximum level of security, reduce fraud costs and at the same time use the learnings to improve their market share, player retention and acquisition.