Operating an Online Casino in Asia: Is It a Profitable Business?

Oct 19, 2020 Artyom Ustinov
Gambling has always been popular in Asia. The continent’s relationship with gambling spans across thousands of years as the very first games were invented in China. From Mahjong to Keno, which was even used to fund the building of the Great Wall of China, casino games have always attracted huge crowds on the biggest continent in the world.

In modern times, the technological advancements and the rise of online casinos and gambling sites are slowly reshaping the gambling scene in Asia. What was once the domain of land-based casinos is now expanding to include online casinos and reap the potential of online gambling.

However, not all countries in Asia welcome gambling in any form, let alone online gambling. Islamic law and strict gambling policies are impeding the development of gambling outlets and hurting the economic potential that gambling has.

In recent months, the coronavirus forced countries across Asia to tap into the potential of online gambling, which is made for a perfect opportunity for online casino operators to expand their reach in one of the fastest-growing markets in the world.

Below, we will further discuss the gambling markets in Asia, the role of online gambling, and the opportunities for online casinos.

General Overview of the Asian Gambling Market

Each country in Asia has its own view of gambling. In Muslim-majority countries, gambling in all of its forms is utterly prohibited. In others, you can find various types of legal gambling options, from state-operated lotteries and sports betting kiosks to full-sized casino resorts. The main gambling hubs in all of Asia are the so-called integrated casino resorts in Macau and the Philippines.

Macau is the world’s largest casino hub, with more than 40 million tourists visiting its glitzy and lavish casino resorts looking for top poker, baccarat, pai gow, roulette, and blackjack games. Even though China bans all forms of gambling, Macau is a special administrative territory, which allows it to run casinos freely. Gambling accounts for more than 50% of all revenue in Macau, which is estimated to be worth over $50 billion per year.

Japan seems to have followed suit and made changes to its gambling laws in 2016 to allow the establishment of land-based casinos.

A similar situation is seen in countries like Thailand, Cambodia, and Vietnam, which are looking to target the wealthy Chinese tourists looking for premium gaming and service.

In recent years, the Asian market has shifted towards the online gambling sphere and now accounts for more than 11% of the world’s online gambling market, second only to Europe.

The online gambling industry in Asia generated over $70 billion in 2019, and the number keeps growing year after year. Still, the biggest issue with online casinos in Asia remains their legality.

Online Casino and Gambling in Asia — Is It Legal?

The legal status of online gambling in Asia differs from country to country. Technically, online gambling is illegal in most Asian countries. However, these laws do not target players who choose to play in offshore casino sites and even when certain countries, like China, try to block internet access to these sites, players still find ways to enter them with the help of Virtual Private Networks (VPN).

The biggest strides in legalizing online casinos and gambling have been made by the Philippines. The Philippine authorities have established The Philippine Amusement and Gaming Corporation (PAGCOR), which is in charge of licensing online casinos and betting sites. Online casinos with PAGCOR’s license can operate freely in the country, which has diminished the presence of illegal gambling and brought over $3 billion in revenue.

Can Online Casinos Be Successful Businesses in Asia?

Despite legal obstacles, the online casino and gambling industry seems to have found a way to thrive in Asia. Players turn to offshore online casinos for top-gaming options, thus overriding any legal issues. Also, more and more countries are beginning to look for online gambling options as a source of extra income, especially in recent times when the global economy is suffering much from the global pandemic of coronavirus.

By looking at the official statistics that say online gambling is seeing an annual increase of around 50% in both the number of players and revenue, it seems only natural to want to get a piece of that action.

All Asian online casinos need to include carefully selected games, such as Asian-themed slots, baccarat, pai gow, and other popular games. Also, there must be a good choice of diverse payment methods, such as cryptocurrencies, e-wallets like Union Pay, credit/debit cards, and mobile banking systems that are vastly popular in Asia. Last but not least is the mobile casino gaming option that all casino operators should offer. The majority of Asian players indulge in mobile casino gaming on the go, so having a stable mobile casino site is a must.

Conclusion

Online casino operators should be encouraged to set up their businesses in Asia and exploit the vast opportunities this growing market offers. Running an online casino in Asia can be extremely profitable, and the sooner you choose the right White Label or Turnkey casino products, the better your position on the market will be.

Artyom Ustinov

Artyom is Head of White Label & Turnkey Solutions and has been working in complex B2B/B2C sales, as well as business development and management consulting in iGaming for more than 10 years.

Together with the Key Account Management Team, he has helped over 100 start-ups and experienced gaming companies to launch their projects with SoftGamings.

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