nline gaming is one the fastest growing trend in today’s generation. Online gaming has never been so popular. According to an Ipsos Reid survey, more than half of young people say they visit gaming sites and play online games several times a week.
About online gaming
Humans are playful creatures. Gaming, like most players, provides small achievements, rewards, competition and social collaboration in a way that people enjoy. Computer games can use a PC or consoles, such as PlayStation, Xbox or Nintendo, and can be connected to the Internet to get bonus features or to play with other players using the same game. There are also many web-based games that utilize Flash Player. Facebook has many of these games, which people use to kill time while waiting for responses from friends, while also strengthening social connections through shared gaming with their friends.
Games can have virtual economies with real-world value. Players that do well can win prizes in some games, and some games allow users to generate their own content that can be bought, sold, or traded. More commonly, valued items can be a result of la ong game play that can represent a significant investment of both time and membership fees.
Growth of Online Gaming Market
The State of Online Gaming 2018 market research report highlights the latest findings in an ongoing series of consumer surveys about online activities and online gambling businesses.
This report is based on responses from 3,000 consumers age 18 and older in France, Germany, Japan, South Korea, the United Kingdom, and the United States who play video games at least once a week.
Respondents were asked questions on a variety of topics to determine the types of games and how often they play, the devices they use, how they access content, and what they think is important for a successful gaming experience and unlawful internet gambling enforcement
Highlights of this report include:
- People who play video games spend an average of nearly six hours each week playing. Gamers 18-25 spend the most time, at more than seven hours each week.
- Globally, gamers spend more time playing on mobile phones than on computers, tablets, or gaming consoles. However, men and people older than 45 spend more time playing on desktop or laptop computers than any other device.
- Nearly 85 percent of gamers download free games multiple times each year. However, only 55 percent are willing to pay to download games.
- Gamers spend an average of one hour and 48 minutes each week watching other gamers play online on sites such as Twitch. This compares to two hours and 27 minutes spent watching traditional sports on broadcast television.
- Millennial gamers (age 18-35) spend more time watching other people play video games than they spend watching traditional sports on television, while younger gamers (age 18-25) spend almost an hour more each week watching online gaming than watching traditional sports.
- Globally, gamers play consecutively for an average of one hour and 20 minutes at a time.
- More than 27 percent of gamers admit to playing video games at work at least once a month.
- Nearly one third, 32 percent, would quit their job if they could support themselves as professional video gamers.
- Gamers are concerned about online security. More than half will not continue to make purchases or play games on a website that has previously suffered a security breach.
- Globally, gamers are downloading games at the same rate they did a year ago. Younger gamers are downloading games more often than a year ago.
- Gamers’ most significant frustration is with the length of time it takes to download game files.
- Gamers play casual single-player games such as Candy Crush or Angry Birds more often than other types of games.
- Fast performance is more important to gamers than a game being simple to play, having an interesting storyline, or being available offline.
- Consumers prefer downloading video games rather than purchasing physical copies or renting or trading them.
Payments processing requirements in Online Gaming Industry
Merchant Accounts for Casinos
Physical casinos that don’t offer gambling online will usually have an easier time securing a merchant account, but processors still consider it high-risk. In-person transactions are less risky from a processing standpoint. Additionally, the customer is physically present in the legal business, not accessing it from another state that prohibits gambling. But the potential for chargebacks from “buyer’s remorse” is greater than in some industries, and age restrictions are still in place. You should expect to need a high risk merchant account for casinos. Additionally, keep in mind that “chips” for gambling will still need to be purchased in cash.
That said, many casinos offer services other than just gambling, such as food and alcohol sales, gift shops, catering and events, and more. If your casino offers such services, be sure to secure a separate merchant account for each type of service. You don’t want your on-site wedding event department accepting payments through your gambling floor merchant account.
Aside from being a good business practice, maintaining separate merchant accounts will help your bottom line. An on-site restaurant or other low-risk department will be able to secure a merchant account with more favourable credit card processing rates.
When the New Jersey online gambling industry went live in November 2013, there were plenty of hiccups. When sports betting goes live, you can expect similar speed bumps.
One of the biggest hurdles legal online gaming had to overcome was the alarming number of credit card transactions that were declined. Things have certainly improved, but even five years in, payment processing continues to be a thorn in the side of the industry.
After years of denying offshore gaming transactions, banks and credit card providers haven’t shown much of an interest in changing longstanding policies in order to give special exemptions for the trio of states that legalized certain forms of online gambling.
The usage of digital wallets like Paysafe’s Skrill or NETELLER have made great strides as an alternative payment processing option. But as Erlick notes, there’s still a lot of room for growth.