The dynamism of the Balkans is capturing the attention of many across the gambling ecosystem who are looking to capitalise on a region that boasts a deep rooted gambling tradition, albeit one that you could say is more closely aligned to the retail space.
Across a two-part CasinoBeats special, Krasimir Pankovski, Head of Sales at 3 Oaks Gaming, and Ihor Zarechnyi, Head of Sales at Evoplay, assess the prospects of the region, which markets possess the highest potential, retail influences and long-term potential.
CasinoBeats: The Balkans is arguably Europe’s biggest growth region right now – and an area plenty of major brands are interested in. What potential do you see here?
Krasimir Pankovski: The region itself has shown consistent growth over the past few years, and I fully expect a sustained increase to continue over the course of 2024. More and more creative professionals are immersing themselves within the jurisdiction, ensuring it remains one of the most promising igaming environments. With the region undergoing major investment to upgrade the quality of its internet accessibility in line with other European markets, this is just the beginning of what will be an intriguing journey.
Ihor Zarechnyi: The online gambling industry in the Balkans offers a promising landscape for growth and investment, making it attractive for major brands. The area has a tech-savvy population who are switched on to the world of digital gaming. Infrastructure also remains favourable in the region and internet penetration is increasing with some of the fastest speeds in the world.
The Balkans’ cultural affinity for gambling is rooted in the long-standing tradition of games of chance which indicates an audience that is open to embracing the digital side of the industry. The regulatory environment in the area is also rapidly evolving and feasible for market entry, presenting an opportunity for igaming platforms to explore this market.
CB: What are your plans for the region and how do you plan to capitalise on this potential?
IZ: Evoplay’s strategy for the Balkans is comprehensive and ambitious, focusing on tapping into the region’s vast potential. Regular market research guides us in adjusting our portfolio and crafting games that resonate with local preferences. It underscores our dedication to establishing a solid audience connection and amplifying customer engagement for a loyal player base.
One of our top priorities is cultivating robust partnerships with local operators, leveraging our established strength in this domain. Concurrently, upholding compliance with regional regulations and building trust with players and regulatory bodies are pivotal to our growth strategy.
KP: At 3 Oaks Gaming, we are just starting to make our presence felt within the region. Our games are now being certified in Bulgaria, which is the first Balkan market we will be entering, so these are exciting times for us. Building a comprehensive list of partnerships with the biggest operators in the Balkans is a major target for us as we enter 2024.
Once we have gone live in Bulgaria, we are aiming to reach maximum exposure and penetration over the next 18 months across the entire territory, with our portfolio becoming one of the region’s most revered.
CB: Onto individual markets – which ones do you see as having the most growth potential?
KP – Markets such as Bulgaria are now fully regulated, but there is still an enormous scope for growth which we are aiming to capitalise on. On the other hand, the region has less developed markets, including Macedonia where the growth curve is just starting to take off in the right direction.
Albania is currently restricted, but we understand that regulations will change there at some point, so we are keen on taking advantage of any movement once it opens up fully.
Top-performing jurisdictions such as Serbia, Montenegro, and Croatia are at the core of the region’s potential, and we can also expect this trio of territories to grow over the next two to three years, so there is plenty to look forward to in this diverse area. Additionally, there has been a significant update in the rise of smartphone usage, which will elevate the online gaming scene in the Balkans.
IZ – There is significant interest in Greece, Bulgaria and Romania, as emerging hubs for online gambling in the Balkan region. With robust regulatory frameworks and taxation on the lower scale, it makes these countries well-poised for substantial growth in the local igaming scene.
Smartphone adoption has also increased quickly in recent years, presenting a window of opportunity for suppliers to develop mobile-optimised games to resonate with players. In addition, each country’s EU membership makes it easy for operators to do business and facilitates speed of transactions.
This potential is further accentuated by a seasonal influx of summer visitors, leading to a notable upswing in gaming enthusiasts at both physical and online casinos.
