2023 Predictions: GiG CCO expects further cost-cutting across the industry as profitability becomes main priority
iGaming NEXT reached out to Gaming Innovation Group’s (GiG) chief commercial officer Marcel Elfersy to discuss the trends and developments that should be on the agenda of the iGaming industry in 2023.
The global economy faces a critical juncture with several parallel and related crises, and the next year promises to be a tougher ride for most businesses, investors and consumers globally.
However, Elfersy, who recently assumed the role of CCO for platform and sportsbook at GiG, believes there will be significant opportunities for the iGaming industry in 2023.
US market changes
A focus on profitability among US operators is one key development that Elfersy expects to see in 2023, which will likely lead to several changes.
“A direct result would be more of a focus on product and data to drive retention, and the need to increase customer lifetime value and reduce cost per acquisition,” he stressed.
On the other hand, he said, operators that have yet to reach their initial goals of growth and profitability may look to cut operating costs, which may increase the demand for partnerships with third parties for platform and managed services.
“In the US, we may also see the dominance of the top three brands diminish, with a stronger, more commercially viable opportunity for late entrants to the US market emerging,” he added.
GiG CCO Marcel Elfersy: “We may also see the dominance of the top three brands diminish, with a stronger, more commercially viable opportunity for late entrants to the US market emerging.”
There’s no doubt that on the back of increasing interest rates and inflation across the globe, consumer spending power will be in the spotlight.
While land-based casinos may well feel the impact of that, Elfersy believes that digital suppliers, including GiG, are well positioned for continued growth.
“We’ve placed a heavy emphasis on product innovation and have built a large, diverse geographical footprint in which to operate.
“This combination of scope and unique, flexible technology perfectly suits the switch to online, and will continue to drive growth,” he said.
Moreover, he highlighted that the North American market showed no sign of slowing, “which will also help bolster those of us invested there”.
In addition, he said growth will be driven by the emerging regulated markets in Africa and Latam as well as their demand for localised product and platform solutions.
Tech-driven approach to RG
Finally, Elfersy expects operators to move towards a more proactive tech-driven approach to responsible gaming.
“The tightening of existing frameworks has left some exposed, incurring fines in the UK and other regulated markets.
“We’ll surely continue to see the necessity of inherent AI that tracks behavioural patterns to spot harmful or fraudulent behaviour within licensing requirements,” he said.
He concluded that there are no effective alternatives to help increase the protection of both the end-user and the operator.