Early 2024 Live Dealer Gaming Reports Signify A Record Year

The latest 2024 iGaming revenue reports have revealed that the live dealer gaming sector has experienced another year of growth as its reach continues to include emerging markets. Sector giants Evolution and Playtech’s year-over-year takings have far exceeded forecasts, signaling a promising trend for iGaming in the new year.

iGaming Growth Spurred by New Products

The gambling industry’s consistent rise not only benefits from emerging markets but also its regular release of new and innovative products. The live dealer sector offers over 1,000 titles, with Evolution providing more than 700 alone. In the virtual games sector, modern variants of table games such as blackjack and roulette include lifelike visuals, with several offering communal chat features to create more social spaces.

New release slots from developers such as NetEnt include sophisticated CGI that replicates blockbuster cinema, with new special features regularly released to encourage players to try something new. Most modern casinos also include a bingo catalogue, with a suite of new bingo games providing hybrid titles such as Slingo, progressive jackpots, and win multipliers. By offering such a broad variety of game types, online casinos, and developers have crafted a strategy of appealing to a diverse customer base. For Evolution, it’s a strategy that has paid off.

Evolution Posts Record Revenues

In October, Evolution released its earnings report for the first three quarters of 2024. It revealed total operating revenues of CAD 2.34 billion in this period, marking a 20.1% rise year-over-year. Of the total earnings, 1.94 billion CAD came from its live gaming division, marking a 17.8% rise year-over-year.

Much of this has been due to the company’s global growth strategy, with 2024 seeing a string of new live studios opened in Europe, Latin America, and North America. In Europe, Evolution opened its first live studio in the Czech Republic, while in South America, it launched a studio in Colombia.

North America represents the company’s largest growth area, though, with a partnership with Caesars Entertainment resulting in new studios in New Jersey, Pennsylvania, and Michigan. The company has reported surging demand in all three states. In Canada, Evolution partnered with Atlantic Lottery in New Brunswick, marking its presence in all regulated Canadian provinces.

The company’s profits have also been bolstered by a string of acquisitions in 2024 across the land-based and online gaming sectors. This includes the 119 million CAD purchase of table games developer Galaxy Gaming, which provides access to 131 land-based global markets. Its acquisition of arcade machine technology company Arcadia Gaming Solutions and social streaming service Livespins has also boosted its portfolio.

The company has gone from strength to strength since its IPO in 2015. It’s achieved a compound annual growth of 49% over eight years to become one of Sweden’s largest companies. The expansion of US gambling represents the most promising opportunities for Evolution, and through strategic partnerships, it looks set to become a market leader in the burgeoning market.

At the Global Gaming Expo in Las Vegas this year, Evolution was one of several developers to showcase a slate of upcoming live dealer releases. This included the new Lightning Storm DigiWheel game and Crazy Balls, an innovative game show that offers a hybrid of bingo-style gameplay with four bonus games.

Playtech Live Games on the Rise

UK gambling giant Playtech has also made significant gains in the global live dealer market, with its half-year earnings reports for 2024 indicating record-breaking annual revenues. Much of this has come from its expansion into US and Canadian markets, with its total revenues up 200% year-over-year.

Live casino revenues, which contributed 220 million CAD to its total 1.34 billion CAD revenues, rose 17% across North America alone due to a string of partnerships with high-profile gambling brands. These include MGM Resorts, which has introduced Playtech live dealer games streamed from two of its Las Vegas Strip casinos.

The company also opened studios three US studios, all of which operate 24/7 to meet local demand. This year has resulted in expansions into several new global regions, including South Africa and Finland. It has also announced plans to open studios in Italy in the new year, after selling its Italian division, Snaitech, to Flutter Entertainment in a cash deal valued at 3.4 billion CAD this year.

In the UK, Playtech has formed partnerships with major legacy media brands to adapt TV game shows to its live gambling sphere. This includes an adaptation of ITV’s daytime quiz show, The Chase. The UK has always been a central focus of Playtech's innovation and has partnerships with major local gambling brands to create bespoke live dealer games for their platforms. These include adaptations of its popular money wheel games that feature branding and themes from the host websites. It now predicts that it will surpass its B2B target of 300 million CAD by the end of 2024.

Emerging Markets Offer Growth Opportunities

Expanded global gaming markets offer the most significant opportunities for live dealer companies. The USA’s rapidly expanding market has reported accelerated growth in Q3 2024, with total online gaming revenues increasing 37.9% year-over-year. As states such as New York, Ohio, and Texas eyeing casino expansion in 2025, international operators are watching the region closely.

In South America, Brazil is introducing a new framework that will open the doors to international online gambling companies, with Caesars Entertainment and Flutter Entertainment already establishing bases. Peru, too, has witnessed an influx of international interest this year, with revenues of 284 million CAD expected in the sector's first year of operation.

While it is a well-established market, the UK has also reported a steady increase in online gameplay. Online participation in the adult population was at 18.5% in 2018 and grew to 26.9% in 2023. The second quarter this year saw gaming receipts hit £895 million, which was 10% higher than the year before. This growth represents further opportunities for the live dealer sector, with Evolution's CEO recently announcing that more studios were planned to meet the demand.

Considering the revenue outlined by Evolution Gaming’s and Playtech’s quarterly reports, it will be interesting to see if the annual reports indicate 2024 as being the most successful year yet. As they expand into emerging global markets and invest in new gaming software, technology acquisitions, and strategic partnerships, the live dealer sector is poised to see the surge continue well into 2025.