The global iGaming sector has experienced fluctuations in investment activity, with the third quarter of 2024 witnessing 186 deals, reflecting a 15 percent decline from the previous quarter, according to data from Statista. Despite this dip, the industry’s overall growth trajectory remains strong.
The sector continues to attract investors due to its innovation and integration of technology, as highlighted by Vladimir Malakchi, CEO and Managing Partner of Xanada Investments, in an exclusive interview with during SiGMA Europe 2024.
Gamification drives market appeal
Malakchi emphasised that gamification is a key trend driving investments in the iGaming sector. He noted that the focus is shifting towards enhancing user experiences by incorporating engaging and entertaining elements into gaming platforms. From casinos and betting platforms to payment solutions, gamification has permeated all aspects of the industry.
Malakchi explained that successful investments today target teams that innovate and create new ways to entertain customers. This includes optimising user interfaces and user experiences, as well as fostering effective collaborations with partners. These enhancements not only attract users but also enable better partnerships and operational efficiencies.
Emerging technologies and their role
The integration of emerging technologies such as artificial intelligence (AI) and blockchain is another focus area for the iGaming industry. According to Malakchi, AI offers unparalleled capabilities in data analysis and user segmentation, allowing companies to deliver tailored experiences based on individual preferences and behaviours. Blockchain, on the other hand, enhances transparency and security in transactions, adding value to both operators and users.
Malakchi cautioned against the superficial use of buzzwords like “AI” and “blockchain” without genuine utility. Instead, he advocated for strategic implementation that enhances user experiences and aligns with business goals, ensuring these technologies provide tangible benefits to the industry.
The importance of responsible gaming
Responsible gaming remains a critical topic in the industry. Malakchi acknowledged the need for balanced implementation, ensuring that protective measures do not compromise user experiences or drive players towards unregulated platforms. He advocated for collaboration between regulators and industry players to strike the right balance, fostering a sustainable and fair gaming ecosystem.
Outlook for iGaming investments
The iGaming market is poised for growth, with annual compound growth rates projected between 13 percent and 17 percent until 2030. Malakchi forecasted that innovation, particularly in gamification and technology adoption, will continue to attract investors. As regulations evolve and new markets emerge, the industry is set to experience increased investment activity and geographic diversification.
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