Is The Online Casino Industry Ready To Shift From An Oligopoly?

Many natural oligopolies exist in corporate circles online, but, given the gambling industry's continued march toward a wider, global industry, many new casinos are starting from scratch and looking to challenge the old guard.

How viable is it that we could end up in a position where the market share of the dominant name falls by the wayside and the emergence of smaller casinos begins to result in a broader, fairer landscape? Below we explore the facts and look for clues about where the industry might be heading a decade from now.

What Is An Oligopoly?

An oligopoly is simply a cluster of several companies that sit at the top of a business in a tier of their own, such as the UK energy market. In casino gaming, this means a company has a significant presence, a name on the high street or is consistently posting profits or customer numbers much higher than the rest of the chasing pack.

Depending on the region of the world, the online casino oligopoly might bring up different names, but with so many challengers looking to try and get a seat at the proverbial table, now is as hopeful a time as ever for those operating promising new platforms that they will be able to muscle in and gain a share of the profit that these big names have been hoovering up for the last couple of decades.

How The Internet Has Challenged Big Casino Dominance

Many gamers and people in the industry argue that the wealth of options has given smaller casinos the chance to compete with the more prominent names. When land-based casinos ruled the roost, long before the days of the internet, there was a stronger case for the oligopoly back then than there is now — in my humble opinion, anyway.

Previously, the casino industry was dominated by a few large companies running land-based casinos in major cities, all generating profits for the top conglomerate. Now, many smaller casinos have shifted online and are independently launching themselves in this space.

We're not saying there weren't smaller casinos in the days of land-based providers; however, if you were going on a night out or taking a trip to a casino, many would prefer the glitz and aura of a more established provider to smaller casinos, which are 90% slot machines and attract a different type of clientele.

Exploring The Factors Which Could Dismantle The Oligopoly

One tool upcoming casinos use is to emphasise their innovation and provide a service that can compete with these prominent names or even go one step beyond.

Once new casinos, or those that are looking to challenge the status quo, get to a point where they feel as though they are knocking on the doors of the titans of the industry, they'll aim to showcase their services to people in the industry who are in the know and can provide a fair, expert assessment on what they have to offer.

Sites like newcasinos.com ensure that their expert reviews are neither biassed nor affected by ulterior motives, making them some of the most trustworthy reviews in the industry. They'll provide fair assessments and indicate what the casino does well and areas where they could improve.

Highly rated sites are essential, as they ensure that their reviews treat household names the same as they would new, promising providers that might be emerging on the global scene. Some of the criteria they use include, but are not limited to:

• The usability of the website and/or app
• Selection of casino games available, particularly live tables or niche games
• Site security
• Consumer reputation

Given that more gamers and industry experts seek out the opinions of review sites, this could be one angle that helps to dismantle the oligopoly. While it won't happen overnight, they're slowly encouraging people to check out casino platforms that are starting to make a lot of noise and could play an increasingly vital role in the future dynamics of the casino gaming industry.

Consumer Demand

Ultimately, consumer demand will drive any noticeable change in people shifting from tried-and-tested names to taking a punt on some unproven but promising platforms. If we only look at it from this standpoint, the signs are promising. One critical element that could shift the balance is the variety of welcome bonuses and promotions on offer.

Gamblers must make themselves aware of how welcome bonuses and promotions work. Although they're used as a gateway for smaller providers to put themselves in the shop window, they must become familiar with the many terms and conditions.

What Do These Platforms Have To Offer?

It's hard to understate how vital promotions and bonuses are when onboarding new customers at an online casino platform. Those with an enticing set of bonuses that carry actual value will draw in more significant numbers of gamers. Some casinos, especially new ones, advertise a good deal but bury the more frustrating or problematic terms deep in the terms and conditions.

However, if casinos use welcome bonuses properly and execute their marketing strategy effectively, they can begin to attract gamers away from traditional providers. The primary reason bettors will seek out a new casino platform isn't usually because of the site's mechanics or because they're intrigued by the licenses they have on there — it's far more straightforward than that — it's the quality and actual value of the bonus.

Prominent casinos also use the same marketing strategy and often compete against each other rather than against the smaller casinos, which again poses an additional challenge. I would go as far as to say that welcome bonuses and promotions offered by the smaller platforms could be the main factor behind the eventual disruption of the oligopoly.

External Factors To Consider

In the casino gaming industry, the two major events that could cause prominent household names to fall down the pecking order would be a massive data breach or a cybercriminal gaining access to the servers. While both are highly unlikely, if it were to happen, it could spell an end to some of the biggest names that sit at the top of the online casino industry.

AI, VR And Other Possible Disruptions

Another shift could be through groundbreaking technology. We've already seen how AI is changing the landscape of traditional sectors like education, but AI is unlikely to have a similar impact on disrupting the oligopoly. In fact, I'd say there's more of a chance that it strengthens it. Only the big names in the casino gaming industry can afford the cost of research and investment into new technology.

Virtual reality technology may start playing a more important role in casino industry developments. If this is the case, and new casinos use this tool to create a more appealing games, it could fuel the changes at the top of the online casino industry.

There has been a shift from land-based casinos to PC and laptop gaming and, more recently, to mobile app gaming. While the casinos that dominate the industry were able to adjust to this, smaller casinos may have to be more inventive to gain the attention of customers. If smaller casinos are going to take on the names that have solidified themselves as the industry's elite, they'll have to be creative in their approach to drawing attention to themselves.

Identifying Consumer Trends

Although casino gamers are often set in their ways, knowing which traditional games they opt for, there is still room for innovation in specific fields. Slot machine gaming companies have had notable success, using their groundbreaking designs to develop highly successful brands. Some have even gone on to create their own casino platforms, with some being more successful than others.

Listening to consumers and trying to predict the industry's next significant trends is usually the best bet for those looking to challenge the status quo — the real challenge is determining what innovation actually looks like in this packed sector.

Is the online casino industry ready to shift from an oligopoly? Honestly, it's hard to tell. It appears that, for the most part, casino gamers are happy to gamble at prominent platforms as long as they can provide a reputable service and facility to do so.

While there might be one or two casinos that can climb up the standings, many of them are operating with one hand behind their backs from an investment and revenue perspective. So, while it's not impossible, it doesn't feel like the industry is looking to break the oligopoly, at least not yet.

The competition exists, but it feels like everybody is happy to share the proverbial pie for now, given there's that much of it. But if consumers change their minds and the pattern of their behaviour, expect to see this dynamic shift pretty quickly.