Gia Janashvili is an innovative entrepreneur and consultant who specializes in B2B2C partnerships within the iGaming industry. As co-founder of Veli Services,he has brought years of industry insight to iGaming markets in Latin America and Africa, but today he talks to us about regulated gaming in Denmark.
The iGaming industry is among the fastest-growing around the world with more opportunities arising in both established and developing markets at an incredible pace. New markets can present an alluring prize for many businesses, and the reward is often worth the accompanying risks. However, companies in growing industries shouldn’t overlook established markets with a solid base and consistent growth.
When looking for B2B2C partnerships with Veli Services, many of the most effective regions to invest have been Latin America, Africa, Eastern Europe, and other less-established markets. They provide an opportunity for exponential growth but present many unique challenges as well. In addition to these ambitious expansions, it’s important to commit resources to safer bets as well.
According to Janashvili, Denmark is one of those safer bets, with a long-established iGaming sector, a stable economy, and numerous secure companies with which to form meaningful partnerships. He says, “in this market, we don’t have to focus on pioneering and can instead commit ourselves to improving standards in order to provide a higher quality product and better service than competitors”.
The Danish iGaming Market
Denmark has been a long-time leader in iGaming in Europe. It was among the first markets in the region to provide a regulated market for online gambling. Most other countries at the time only had state lotteries at most. Many of the sports betting and online casino games we know today were strictly forbidden. Times have changed, and it was the first steps taken by Denmark back in 2012 that we have to thank.
The industry has continued to thrive since then, with gradual changes in regulation allowing for even more robust iGaming platforms and activities. These regulations also carry requirements for iGaming platforms regarding wagering, promotions, maximums, and more. For an experienced company like Veli Services, these kinds of regulations are nothing new, they have years of knowledge base to help partners navigate these regulatory frameworks.
The market in Denmark is very well established but has still shown significant growth over the past few years. 2021 saw online casinos and other iGaming platforms take the top spot among Danish gamblers. It was the first time lotteries and traditional casinos followed online casinos in popularity. While iGaming was just 30% of the market in 2012, it’s now over 60%.
The overall gambling industry in Denmark actually saw a slight decrease in 2020 due to the closure of many physical casinos. However, iGaming has been consistently rising. In fact, 2021 saw an increase in the overall market, largely driven by continued iGaming growth rather than recovery in the physical casino sector.
Targeting Established iGaming Markets
The Danish iGaming industry is thriving. There is a massive customer base and plenty of iGaming platforms available to meet their demand. This can make entering the market a challenge for new companies, who must compete with others who are already established. Emerging markets bring their own unique challenges as well, but they don’t include this particular barrier to entry.
In both iGaming and other industries, the solution to this challenge is that companies simply have to do it better than their competitors; “For Veli Services, the answer has always been in building meaningful partnerships in which we provide a truly unique approach for every company we work with.”
Providing a better service in the iGaming market comes down to being able to identify and satisfy the needs of particular iGaming niches. There are so many competitors, iGaming platform users are very likely to be able to find one that meets their needs better. The only way to retain customers in the modern landscape is to provide highly targeted niche platforms.
Doing this in a market as well-established as Denmark presents a considerable challenge for iGaming companies. They need iGaming platforms in high quantities while still preserving quality and addressing unique niches with each. In order to do so, they require key industry insight, development capabilities, and analytics to know what works and what doesn’t.
As VeliServices enters the Danish market, it is clear that they will be a valuable asset in developing meaningful B2B2C relationships with Danish and international companies that will help grow the Danish iGaming market even further.