Technical hurdles hinder Asian online gaming

Asia’s multi-billion dollar online gambling industry is an opportunity too big to ignore when it comes to the expansion plans of many global players, yet technical issues ranging from latency, through to security and payment systems can prove to be costly challenges for newcomers. Given online gambling is mostly unregulated across the region, exact figures for how big the market is are not available, though most estimates run into the hundreds of billions of dollars, with China’s outfacing market alone put at about $600 to $700 billion. While the volumes are massive, increasing competition, the costs of client acquisition and other market peculiarities can eat meaningfully into margins. One of the biggest issues facing online gaming operators in Asia is payment processing systems. In unregulated markets the mainstream banking system is generally not an option, with punters choosing popular payment methods, such as Alipay and WeChat Pay. The problem with these...

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