The Main Reasons iGaming Sites go Bankrupt

It’s very rare for an online gambling site to close down, as the ones that do struggle are often bought out and then merged with other brands. However, such incidences are not unheard of, even in this highly profitable industry, and when those failures do occur they are often the result of one of the following issues.

Struggling to Compete

As profitable as the online gambling sector is, it’s also one of the most competitive industries in the virtual space. There are thousands of sites competing in regulated markets all over the world. As a new site entering these markets you have to go up against the biggest and best sites in the world, as well as hundreds of other respected brands.

Failure to do so in a timely manner can signal the end of even the most ambitious websites. There are a lot of things to consider when establishing a new site, from license fees, to staff and more. You also have to factor in the advertising, which is essential to get a new brand noticed.

If all of that investment doesn’t get a quick return, the capital can disappear, the losses can become too great, and the site is at risk of going under.

Regulatory Issues

There are a huge number of regulatory issues to consider when operating an iGaming website. You need to keep player funds safe, make sure that underage gambling and fraud is kept to a minimum, and do all you can to prevent problem gambling.

If you fail in any of these areas then you may face a significant fine, and if you continue to fail then the fines will just keep coming. These fines can end a new gambling site if it hasn’t been going for a very long time.

What’s more, some gambling regulations cause sites to drastically and immediately shift direction, and this can be costly. If, for instance, one of the countries in which they operate changes their rules and they can no longer operate there, they will be forced to close their doors to countless active customers and many more potential ones.

As any business owner will tell you, losing a significant percentage of your customers and your target market is enough to seriously harm even the most successful business.

Failure to Stay on Top of Trends

About ten years ago there was a noticeable shift towards mobile gambling, but while many sites began doing all they could to prepare for it and cater for it, others remained steadfast, refusing to prepare and doing all they could to fight the inevitable mobile revolution.

The same happened several years before that when players made the switch from download casinos to instant play, and we’ll no doubt experience another shift or two in the future. As an iGaming website you need to know how to spot these changes and to prepare for them. If you don’t, you’ll be like a video rental store capitulating underneath the weight of home streaming.


There are a lot of things to consider as an iGaming operator, but no one said it was easy. This is one of the most lucrative industries in the world, but that doesn’t mean it’s easy to earn your share of the spoils. It takes a lot of work and ongoing commitment to be a success in this sector, but if you play your cards right then you’ll get out tenfold what you put in.

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