Iovation report finds mobile transactions increased by 95%
Iovation have published their 2019 Gambling Industry Report, covering and analysing the industry’s trends in 2018.
Iovation analysed over 500m transactions across 100 different operators and platforms. Key findings were:
- Transactions made via mobile devices grew 95% since 2012. Almost 70% of transactions are now made via mobile
- Growth in cheating and game abuse continues to grow, but more slowly, from 55% in 2017 to 12% in 2018
- Almost a million different accounts associated with a self-exclusion report attempted to access a digital platform of a bookmaker
Customers are using their mobile devices to both deposit and play at online bookmakers more and more. Gambling transactions made via mobile have grown quickly since 2012 and now comprise 70% off all gambling transactions.
There were 9.2m fraudulent gambling transactions blocked in 2018. Cheating reports continue to grow, with credit card fraud at operators a particular area of concern. The largest problem is bonus abuse however, which grew by 287%. While bonus offers are key in attracting new customers, they also attract fraudsters. But operators are fighting back, as Iovation explain in the report:
In an effort to combat this, many operators now limit new players’ deposits and deposit methods. Unfortunately, this could have the unintended side effect of hampering the effectiveness of promotions. And conventional KYC solutions take too long, can negatively impact the player experience and limit the bonuses marketing can use to attract new players. To bridge the gap, operators are supplementing KYC solutions with predictive analytics. Machine learning can continuously monitor billions of global transactions, looking for subtle device, transaction and account patterns that predict fraudulent behavior. Allowing operators to weed out fraudsters and provide a seamless, frictionless experience for their best customers and VIP players. This also allows better targeting for upsell opportunities and premium promotions.–Iovation, 2019 Gambling Industry Report
Three key industry predictions for 2019
Based on its findings, Iovation has made three key predictions for 2019. Firstly, the analyst believes that, due to changes in legislation and markets opening up like in the US, attracting and retaining players is more important than ever. A mobile-first approach should be central, while omni-channel authentication and authorisation should also be put in place.
Fraud prevention and authentication will also be focused on much more. Iovation believes that, with offline and online identities converging, fighting fraud effectively without infringing on the user experience is vital.
Finally, managing regulatory uncertainty will be something operators must manage this year. Fines issued by regulators, along with stricter regulations, are increasingly prevalent. The mis-management of players who have self-excluded is likely to be one area where regulators could come down hard on operators.