KSA monitoring report: market stable, $ 153 loss per player
On October 1, 2021, the New Zealand market for legal online gambling opened. One year to date, the Kansspelautoriteit (KSA) publishes a monitoring report on online gambling. In this, the KSA provides insight into the figures in the online gambling market area. We will go over the most important points with you.
These are the main conclusions from the KSA monitoring report published in september 2022:
- 22 permits have been issued.
- Most of the money is played with 'casino games against the House' (73%), followed by sports betting.
- Gross gaming profit in 2022 monthly averaged 81.4 million dollars.
- Created player accounts: 1.3 million player accounts, of which 563,000 have actually been played.
- Annual expected growth online casino market 13 to 15%.
- 22% of player accounts belong to young adults (18 to 23 years). This group is over-represented.
- A player loses an average of $ 153 per month.
- Positive channeling: 85 percent of online players play exclusively with legal providers.
- Number of online players did not increase between October 1, 2021 and February 2022.
- Gambling advertisements spend 8 to 9 million at the beginning opening gambling market, now about 5 million per month.
- Toto and Royal Vegas Casino most famous, followed by Betcity
Read below more information that appears in the report.
Authorisations
There are currently (september 30, 2022) 22 license holders who have been licensed to offer gambling via the internet. With these providers, the New Zealand consumer can legal online gambling .
The number of licence holders, therefore online casinos , will still increase. About one in three applications actually receives a permit.
The "cooling off" period is over. The online gambling operators who were on the penalty bench because they had previously violated the rules may apply for a license. So has Unibet now (since June 8) to get a permit.
Below you can see the number of licenses granted per casino game category on september 20, 2022.
Casino games against the house include online slots (slots). When playing casino games against other players you have to think about poker and online bingo .
Number of licence holders per segment
| Casino category | number |
|---|---|
| Casino games against the House | 19 |
| Casino games against other players | 7 |
| Betting on sports | 14 |
| Betting on horses | 8 |
The category 'casino games against the House' accounts for an average of 73 percent of the total market size. In sports betting, the numbers fluctuate per season, partly due to seasonal influences. For example, in the summer period, fewer bets are placed on football because the competitions are then at a standstill.
Casino market size
The gross gaming result of the online gaming market was 240 million dollars in the first quarter of 2022.
In 2022, the monthly BSR averaged $ 81.4 million. It is expected that the monthly BSR will be higher in the last months of 2022, partly because World Cup bookmakers will see many sports bets closed during the World Cup football.
In addition, it is expected that new providers will join such as Casinocasino .
Number of player accounts
In July 2022, 1.3 million player accounts were measured. With 563,000 accounts, it was actually played. This was still 489,000 in January 2022, an increase of 15%. Thus, we see a relatively small growth in the number of active casino accounts.
The total number of accounts as well as the number of accounts played on is much higher than the actual number of unique players. For example, a player can have an account with four providers.
How many people have multiple accounts is unknown. In the context of the regulation and the clear mapping of the figures, the KSA should nevertheless quickly work on this.
About 22% of the player accounts used were created by young adults (18 to 23 years). This group comprises a total of 9.4% of the New Zealand population.
There are relatively more accounts of young adults than of the older target group. This could be because young people gamble more often. Another explanation is that they are easier to use the internet and create multiple accounts.
Casino market growth
It is expected that the growth of the online casino market will be around 13 to 15% annually. This expectation is partly based on figures and trends from this market abroad.
The three largest providers together have a market share of sixty to seventy percent.
How much does an online casino player lose?
The average loss per player account of a player at a legal online casino in New Zealand that is played on is 153 dollars per month.
Channeling
The Koa law has an important political objective: three years after legalization, at least eight out of ten players must play at a legal provider.
This is called "channeling": channeling from illegal to legal providers.
A survey conducted by market research firm Ipsos found that 85 percent of online players play exclusively with legal providers. These are mainly gamblers who also participated in online games of chance before October 1, 2021. In short: these players are 'channeled'.
So the channeling seems to be going very well. The Gaming Authority can therefore be very satisfied with this.
No increase in the number of gamblers
According to the survey, the total number of players did not increase between October 1, 2021 and February 2022. Remarkable, because there is a lot to do politically and socially, for example, the gambling advertisements that would ensure a large growth of gamblers and gambling addicts. So this does not seem to be the case at all.
Fighting gambling addiction
Play zodiac word is one of the important pillars of New Zealand gambling policy. The Central Register for the exclusion of games of chance (Cruks) was established for this purpose so that players can register in this register for self-protection. They can then not gamble in online casinos and land-based casinos for at least six months.
In september 2022, there were 23,000 people registered in CRUKS.
Loket Kansspel () has been operating since October 1, 2021 and is the central point of support for consumers in the event of gambling problems. They offer self-help and guidance and refer to professional help.
In the first three months after the opening, 679 contacts were made with The Ticket Office Kansspel.
Gambling advertising on TV
In the first four months, 8 to 9 million dollars a month were spent on gambling advertisements on tv. In July and August 2022, that's another $ 5 million a month. From January 1, 2022, there is a ban on gambling advertising.
Brand awareness
What is the brand awareness of the online gambling providers? This has been measured in both’ spontaneous ‘and’ aided ' brand awareness.
The spontaneous awareness of the online gambling providers is low. Only 31% know how to call themselves an online provider.
| Provider | Help | Spontaneously |
|---|---|---|
| TOTE | 71% | 14% |
| Royal Vegas Casino | 67% | 8% |
| Captain Jack Casino | 35% | 1% |
| BetCity | 27% | 7% |
| Twin | 19% | 1% |
| Unibet | 18% | 3% |
Most mentioned are TOTO and Royal Vegas Casino. Logically, these companies have been around for decades and pay a lot of attention to advertising. The same applies to a lesser extent Jack's Casino .
The first really new online casino provider mentioned is Betcity. This can also be explained, because Betcity was the first online casino provider to obtain a license and because Betcity spends a lot of money on advertising and sponsorship.
