Tech investors are always looking for opportunities to put their money to work. We’ve all heard start-up stories about investors who get in early and make a fortune by predicting what the next big app or trend will be. From early Twitter investors, LinkedIn, Facebook, Snapchat.. Not to mention all of the smaller wins from all of the other online businesses and apps that have been acquired…
But despite the giant size of the gaming sector and the amount of money that flows in and out of casinos, along with the potential for technology to simplify and improve their processes, this is an area that some tech investors choose to avoid for a number of reasons.
In part due to the negative stigma that may exist towards gambling in some people’s moral frameworks. However, perhaps with tech’s brightest minds at work, there would be ways to ensure games are fair, but also that they aren’t predatory or using any sneaky tricks to take advantage of people who have gambling problems, furthermore they could also implement tools to help identify and deal with problem gamblers.
With some investors leery of this industry for one reason or another, what that means is that there could be some buying opportunities for other investors who don’t mind entering this arena. Less people investing in a particular field, especially one that’s proven to be as profitable as this, means there are cheaper opportunities and better bargains for those who decide to jump in.
What Technologies are Involved?
It’s not just about the programming and design of the games themselves, there are a lot of other technologies involved in this industry. Here’s a quick look, but keep in mind that this is far from an exhaustive list…
Security
Security is a big part of online gaming. It applies in the sign-up process, ensuring that only real players using their own payment information are joining in order to prevent fraudulent transactions. Beyond that, protecting user data is also very important, and a data breach can instantly ruin all trust, especially in an industry like this where privacy and security are so crucial, as with any industry where a lot of money is involved.
Another area where security is crucial is for the games themselves. If people are able to somehow breach the servers and manipulate the games, even a small amount at a time, that could end up costing the casinos an absolute fortune.
Security has been a game of cat and mouse when it comes to industries dealing in sensitive data and financial information, but as more people start to trust the internet and having more of their lives online, the stakes continue to grow.
Customer Service
This is another area where technology plays a big role, and where dotcom startups exist that could bring a lot to the table. Support desk software has come a long way, but AI will play a huge role in the next frontier. iGaming is just one of many industries that will be able to reduce costs by relying on AI to help deal with common customer issues.
The Blockchain
One way that gambling (or, in the investment world, speculating) crosses over with financial investments is the world of cryptocurrencies in online casinos. Many people view money spent on the overall technology or the bigger coins like BTC and ETH as an investment, however when it comes to some of the smaller coins out there, it’s certainly more in line with speculation and gambling. Beyond that, of course, there’s the actual technology behind the blockchain that shows huge potential when it comes to iGaming technology.
The blockchain offers a way for gambling establishments to prove with 100% certainty that their games are entirely fair and honest, which is something that will set a lot of player’s minds at ease, because even with reputable sites, there’s always that little voice in the back of a player’s mind that wonders if the game truly is fair, or what their chances of winning really are.
Smart Investments
If you’re thinking of investing in any publicly or privately traded companies that are involved in this or any sector, it’s always important to do your due diligence and to understand the risks.
