The gambling industry is changing fast; iovation, part of the TransUnion family, has created new approaches to fraud prevention, customer authentication, and transaction authorisation to help meet those challenges. iovation has released the 2019 gambling report where subject matter experts share their learnings and look ahead on what to expect in 2019.
Working side-by-side with gambling operators iovation found three key drivers shaping the gambling industry. First, it is crucial in today’s environment to identify the player experience as a marketing differentiator. With regulations changing around the world, this opens a door for new operators, creating more competition. Attracting and retaining players is pressing for the long-term success of an operator. The number of mobile gambling transactions has increased over the past two years, showing that operators need to go where their players are, on their phone. Operators can build differentiation with players by implementing an omnichannel authentication and authorisation experience. Studies have shown that businesses with the strongest omnichannel customer engagement strategies have an average customer retention rate of 89%, as compared to 33% for companies with weak omnichannel strategies*.
Secondly, operators have to balance a differentiated customer experience with protecting against known and emerging threats. One trend that continued in 2018 was the growth in bonus abuse. Operators are continuously offering bonuses and promotions to help attract and retain players VIPs and new players. But with more promotion brings more fraudsters. With bonus abuse, cheating, and credit card fraud all being ways a fraudster can affect the operators revenue, incorporating machine learning into your fraud stack can help by monitoring billions of transactions to predict fraudulent behaviour. This allows operators to remove the fraudsters quickly, prioritise review queues and identity good customer so that they can provide a differentiated experience for top players.
Lastly, there are many regulations that operators must be comply with when operating in multiple countries, such as fair gaming practices, GDPR and PSD2. To ensure that operators are in compliance and following privacy regulations, operators need to consider if third-party vendors have implemented: data mapping, data minimisation and privacy by design practices. Protecting the players’ privacy and positioning your organisation to combat threats and seize opportunities in 2019.