- May 15, 2023
The Asian region is one of the largest gambling markets in the world, and the online gambling industry in the region has maintained a growth trajectory, including China, Singapore, the Philippines, South Korea, Japan, Malaysia, and other countries. Over the past few years, gambling industry revenue has grown year by year, which has been well documented. At the same time, the gambling environment in Asia has also undergone great changes. Since the outbreak, we have seen more and more people forced to stay at home, while many companies have turned to remote work.
Many people find that they have more time and opportunities to try online gambling. This is because of the emergence of a new generation of the middle class, the popularity of mobile and tablet applications, and the improvement of broadband Internet connections. This has led to an increase in the number of online gambling players.
In addition, some countries have begun to relax the restrictions on gambling so that more people can try the fun and excitement of online betting. However, before talking about the prospects of the Asian gambling market, let's take a look at its market conditions in recent years.
In recent years, the proportion of the online gambling market in the global gambling market has been increasing yearly. Just in 2012, online gambling accounted for 8% of the global gambling market, but in 2020 it has risen to 14%. Online gambling has great potential to drive revenue growth and provide entertainment to those who are interested and has become mainstream in the gambling industry. Many countries have also passed legislation to regulate the lucrative online gambling industry.
At the same time, it is also one of the ways for some countries to attract investors from other countries, such as Cambodia, Myanmar, the Philippines, Greece, Monaco, Canada, Norway, Sweden, Armenia, Seychelles in East Africa, the United Kingdom, Japan, Spain, Germany, Bahamas China, Venezuela, Kenya, Bolivia, and Kosovo are all opening up or have opened up the legalization of online or offline gambling.
In addition to direct tax revenue, it can rapidly improve the country's tourism, economy, and employment rate. For example, Japan's construction of casinos and Singapore's construction of casinos are generally aimed at stimulating and increasing the country's economic income.
Chinese Gambling Market
While the Chinese government has been tightening regulations on online gambling, it remains a fast-growing segment of the Chinese gambling market. According to Statista's data, the size of China's online gambling market in 2020 reached US$20.88 billion, which is a very large number.
In addition, although the government has been taking measures to crack down on illegal betting, there are still many gambling sites that circumvent regulation through various means and even cooperate with gambling sites from other countries to provide services to Chinese gamblers, which has also led to the rapid growth of the online gambling market.
Also, while the Chinese government has banned casinos, most of the roughly 340 casinos in Southeast Asia are explicitly aimed at attracting Chinese gamblers, reflecting the sheer number of Chinese gamblers. An estimated CNY1 trillion (US$144 billion) of gambling money leaves the country each year, illustrating the spending power of Chinese gamblers. Therefore, casinos and online gambling platforms in Southeast Asia have become the main choice for Chinese gamblers.
However, despite the rapid growth of the online gambling market, the Chinese government has been taking steps to crack down on illegal betting. In recent years, the government has intensified its crackdown on illegal gambling websites, restricting the flow of gambling money into illegal gambling websites by restricting network access and increasing supervision.
Generally speaking, China's online gambling market is growing rapidly, and it is the largest gambling market in the Asia-Pacific region, and the online gambling market has a strong performance. Although the Chinese government has been tightening regulations on the gambling industry, the market still has a lot of growth potential. As the Chinese economy grows and people's living standards improve, the gambling market will continue to benefit from increased domestic demand.
Vietnam Gambling Market
Vietnam has one of the largest mobile game markets in Southeast Asia. In fact, mobile gambling has easily surpassed PC gambling in terms of revenue and user base. As a result, thousands of mobile game developers operate within Vietnam. At the same time, online payment is also developing rapidly; Vietnam is also an emerging gambling market in Southeast Asia, and its gambling business has grown significantly in recent years.
According to Innovecs Gaming, the online gambling market is currently worth about US$67 billion and is expected to grow to almost US$93 billion by 2023, with an annual growth rate of almost 11.5%.
The reason for this boom is the growing digital trend and the relaxation of regulations related to online gambling. In May 2018, Vietnam’s Supreme Court decided to upgrade the Professional and Amateur Sports Protection Law, which legalized limited sports betting.
Sports betting accounted for the largest share of online gambling in Vietnam at over 40%, followed by online casinos and lotteries at 32.1% and 13.2% respectively.
Thailand Gambling Market
According to the survey, 59.6% of Thais in Thailand tried gambling in 2021, about 32.33 million people, an increase of about 6.3% over 2019. This proportion is getting higher and higher, and even 29.5% of Thais aged 15-18 have participated in gambling. In addition, the online gambling market is also growing rapidly, with the number of online gamblers increasing by 135.8% and the amount of online gambling increasing by as much as 431.3%. Online casino games have become the most popular among Thai players, especially games such as baccarat, Pok Deng, and other types of card betting.
Malaysia Gambling Market
Malaysia is a country with a large population and rapid economic development, with a large middle class and a large group of mobile Internet users. All these factors provide a broad market space and potential for the online gambling business. Although the Malaysian government has been stepping up its crackdown on the online gambling business, a large amount of money flows from Malaysia to online gambling platforms in other countries. Still expanding. According to a report released by Statista, the size of the online gambling market in Malaysia in 2019 was approximately US$470 million.
The report also predicts that the online gambling market in Malaysia is expected to grow to approximately US$640 million by 2024. In terms of the number of users, in addition to Malaysians, foreign tourists are also one of Malaysia's main members of online gambling.
Malaysians are avid sports fans, and Malaysians reflect their love in their betting habits regardless of their legal status. In addition to betting on horse racing, badminton, and football, Malaysians also bet on European events such as the Premier League but also bet on the most popular Super League in the country. Motorsports are also popular, with Malaysia even hosting the Formula 1 Grand Prix and MotoGP World Championships. Besides sports betting, Malaysians also enjoy slot machines, poker, and live dealer games.
Japanese Gambling Market
The Japanese gambling market has been relatively conservative over the past few decades but has seen some changes in recent years. In 2018, the Japanese government passed a bill allowing casinos to open in the country to attract more international tourists and boost tourism. The bill, known as the Integrated Resorts Regional Integration Promotion Act (IR Act), aims to create integrated resorts that include casinos, hotels, shopping malls, convention centers, and entertainment facilities.
Under the bill, the Japanese government will approve the establishment of up to three casinos nationwide and allow other forms of gambling operations, such as sports betting and online gambling, in integrated resorts. This new law is also dividing up the gambling market share of neighboring countries, but it is undeniable that the implementation of the new law will bring a lot of investment and employment opportunities to Japan and bring significant benefits to Japan’s tourism industry. Generally speaking, Japan is also optimistic about the gambling economy.
Singapore Gambling Market
Singapore is another important gambling market in the Asia-Pacific region, mainly focusing on casinos and online gambling. The Singapore government is also actively promoting the development of the gambling industry to attract more international tourists and investment. The Singapore government opened up the casino business for the first time in 2005, introducing two large-scale integrated resort-style casinos, which have become the main components of Singapore's gambling business.
But online gambling is a relatively small market due in part to the Singaporean government’s ban on online gambling operations. However, some online gambling companies in Singapore are registered overseas and offer online gambling services in different ways. According to data released by the Singapore government, in 2019, Singapore's gambling business revenue reached SGD6.8 billion (US$5 billion), of which the casino business contributed most of the revenue.
Singapore's gambling market is generally small, but its casino business has attracted much attention and has a certain influence in the Asian region. But one thing worth noting is Singapore's gambling participation rate from 2005 to 2017. A survey found that the gambling participation rate of Singaporeans was the highest in 2005, with 58% of respondents saying they had gambled in the past 12 months. This is the lowest point in 2014, which was 44%. By 2017, the gambling participation rate was 52%. Basically, gambling is relatively common and accepted in Singapore. Therefore, it can be said that gambling is not a sensitive word in Singapore.
Korean Gambling Market
South Korea is a country with a long history and cultural heritage, and it is also an important gambling market in Asia. The South Korean government allows gambling operations in specific areas, the most famous of which is the Sky City Casino, as well as several casinos such as Qiguangmen Casino and Lotte Casino in downtown Seoul.
However, there are also many folk gambling activities in South Korea. These games are mainly played in places such as families, communities, and small shops, such as "Citigroup," "Bullfighting," "Treasure," and other gambling games. Although the gambling market in South Korea is small, the quality is very high. After all, the per capita income is there. According to data released by the South Korean government, in 2021, the South Korean gambling industry will generate nearly 14.4 trillion won in revenue. This is an increase from the previous year.
Indonesian Gambling Market
Indonesia, a country whose main religion is Islam, officially bans all forms of gambling. As such, Indonesia has no official gambling market and does not allow gambling of any kind. This is why the main channel for Indonesian demand for gambling is through online gambling. Indonesian Communications and Information Technology Minister Johnny Plate said in the news that from 2018 to July 31, 2022, 534,138 gambling accounts were closed. But under careful inspection, more than 500,000 accounts have been discovered within 5 years, so how many accounts have not been found? With Indonesia's 270 million population, there are 269, 500,000 million accounts that have not yet been found.
Positive Signal for Asian Gambling
- In recent years, Asian countries have opened up their gambling markets to increase their economic income. Recently, Osaka, Japan will, open its first casino, which could make Japan the next gambling hub in Asia. Besides Japan, other countries are also preparing or drawing up proposals to promote the gambling industry.
- India amends gambling laws to ban online gambling. Although online gambling is banned, according to India's national conditions, states may be authorized to open online gambling.
- Although the epidemic has greatly impacted the global economy, the gambling market is still recovering rapidly. As the middle class continues to grow, so does the outlook for the gambling market.
- All Asian countries are speeding up Internet construction, and smartphone users are also increasing. This provides better conditions for online gambling.
- In order to adapt to the trend of the world economic environment, Asian countries are establishing their own online payment channels and promoting online payment. This will bring more opportunities to the gambling industry and facilitate more people to become a member of the betting players.
- With the rise of Internet technology, the white label iGaming has been recognized by the majority of gambling bosses, and the cost of opening a gambling platform has been greatly reduced, and the gambling bosses can completely focus on platform marketing.
Asian Gambling Industry Challenges and Issues
- In order to prohibit online gambling in China, payment channels have been strictly regulated, and entry and exit inspections have also been strengthened. This has led to increased payment and labor costs for gambling platforms. At the same time, the Chinese government has also implemented a strict review mechanism for domestic online media platforms, and the cost of publicity has also increased accordingly. Even so, the Chinese gambling market remains one of the most important in the Asian gambling industry. Therefore, controlling costs is one of the challenges gambling platforms face in the Chinese gambling market.
- Different countries have different preferences in terms of culture, religion, language, habits, visual aesthetics, and types of gambling. At the same time, the marketing methods and marketing channels of preferential activities will also be different due to different national conditions. Therefore, gambling platforms must consider these comprehensive issues if they want to operate transnationally. After all, no matter how well your promotion is done, if your own platform does not meet local players' preferences, user stickiness and conversion rate, registration volume, customer unit price, and game frequency will all differ from your estimates.
- The gambling market in Vietnam is relatively hot now, but no one knows how long it will remain so hot. But from the perspective of the development direction of the platform, it is also possible to examine other countries as the second or third gambling market. After all, gambling platforms always have an inherent advantage to enter the local market early.
- Although the development of the Internet has also driven the popularity of the online gambling industry, considering the general environment alone is not the only criterion, it can only be regarded as a certain reference value. Therefore, understanding the local traffic entrance is also an important link to do a good job in gambling. After all, different countries have different national conditions, and the traffic entrances of Internet users are also different. Therefore, while entering the local market, gambling platforms need to conduct more investigations and tests on local traffic entrances and effective promotion channels. At the same time, gambling companies must continue to innovate and improve to attract more users and improve user experience, which requires a lot of investment and technical support.
- Although gambling platforms have widely used the gambling package network, the cost of operating a gambling platform has been greatly reduced, and it has also caused confusion in the package network market. A small group of 3-5 people will be called a large package network company. I don't know where to get a low-level gambling package network program code, and I can accept various needs without thinking. Anyway, after the money arrives, no one may be able to find it. Or leak gambling platform player information. Or the gambling platform often fails to operate normally during operation. Therefore, the Asian gambling industry also faces technical and security issues. Gambling platforms need to stay technologically updated and improved to improve user experience and security. In addition, network security issues also need to be paid attention to ensure the safety of players' personal information and funds and to ensure the normal daily operation of gambling platforms.
Overall, the outlook for the Asian gambling market is positive. With the economic growth and tourism development in the Asian region, the online gambling market will continue to grow and expand. However, how to effectively improve the competitiveness of gambling platforms in the local market needs to effectively meet the preferences and needs of users in the local gambling market according to the national conditions of different countries.
For this reason, the support of a professional and technically strong network company is needed to realize a gambling platform that meets the needs of local users. When choosing a white label gambling platform, factors such as background functions, team R&D capabilities, stability, visual appearance, multi-language modules, and a large number of game types suitable for different users need to be considered.
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