11 JANUARY 2023

Gambling: 2022 results and 2023 prospects





Guess who he is: he started as a product manager, formed from scratch the vertical of Gambling in the affiliate program, and a little later created the entire affiliate network. This is our Head of Gambling vertical, Vitaliy.

It's very hard to get Vitaly to talk frankly, but when it comes to passing on his experience, he's right there. What happened to the gambling vertical in 2022, and what can we expect in 2023? Vitaliy has the floor.

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Statistics say that the global online gambling market has increased by almost 20 billion USD. The war in Ukraine slowed its growth but did not stop it. Why do you think this happened?

The war in Ukraine certainly influenced the development of the global online gambling market, but on a global scale, even such a big and tragic event cannot stop market growth. What has changed is the direction of development, which was facilitated by the following factors:

  • deprivation of local licenses in Ukraine of Russian gambling operators;
  • refusal of Ukrainian and foreign webmasters and affiliate programs to work with Russian offers and RU geo in general;
  • the rapid development of the Latin American market;
  • entry of world gambling operators to Asian and African markets;
  • a decrease in the volume of the Russian market and, as a result, the focus of mediabuy teams and webmasters on Tier-1 countries.

Also, thanks to our armed forces, life in Ukraine continues, and webmasters and Ukraine-based teams have the opportunity to continue working and contributing to the development of the global online gambling market.

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What will CAGR be like after the war? It is now at 11.8%.

It’s a thorny question. Nobody can express this in exact numbers because nobody knows how long the war will continue, directly affecting this indicator. But one thing is clear β€” CAGR will increase after the war. I believe that foreign investments will return to Ukraine, and Ukrainian companies will invest in traffic with greater confidence. Also, the Ukrainian market will grow against the backdrop of economic growth as a whole.

What are the most promising GEOs in 2023? What can you say about the local market in Ukraine and Europe as a whole?

LATAM and Brazil, in particular, will rapidly gain volumes. Canada is also very promising, considering the legalization of gambling. African countries are showing great promise, but mobile gambling will be in demand more there because the Internet speed in Africa is relatively slow.

For Ukrainian webmasters, the TIER-1 countries have become a forced discovery this year, and in the future, their volumes on these GEOs will only grow.

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Brazil burst into the worldwide agenda sharply. Yet, there is a tendency for minimal bets, which makes the GGR there also low. What would be your advice to webmasters who pour into this market?

Product GGR is produced by stable and high-roller players. Therefore, you need to work on the quality of the players. For example, adding a pop-up asking about age 18 is a quite simple tip to filter out the underage audience. This work will be rewarded with high payouts and long-term profitable cooperation.

What about the success of VortexAds in the gambling market this year? Which sources have worked, and which have not?

I won't surprise you β€” success is that we continue to work and develop. With the war's advent, some Affiliate Networks closed or lost almost the entire turnover, which led to layoffs. We are entering 2023 with positive results and continue to increase profit and the number of new partners and employees.

As for the sources, PPC, ASO, UAC, and FB performed best for us. But that's not to say that other sources are bad. All of them are in demand and appreciated by our advertisers.

Facebook was one of the most popular traffic sources for gambling projects. However, Meta has changed its algorithms again. How will this affect your work?

This is not the first time that FB surprises us with its updates πŸ™‚ As before, our partners and we are adapting, learning, and overcoming.

However, it cannot be said that the changes in FB make you just put up with them. Many teams that have only worked with FB embrace PPC, an equally complex but more predictable and profitable traffic source. Some webmasters have abandoned FB at all in favor of Google.

Are you predicting a market slump after the World Cup? Many game providers even made themed slots for this tournament. What will happen to the gambling market next?

Such events lead only to the growth of the market. Even after their ending. Of course, there will be a decrease in volumes after the end of the World Cup, but they will still be higher than before it. During the championship, providers have attracted many new players, and now they will simply flow from the World Cup to other events, where they will continue playing and making bets.