The gaming and gambling industry has long thrived on excitement, chance, and rapid adaptation. But as 2024 unfolds, something important is happening: the industry is undergoing a transformation — and not just in what games get played. According to KPMG’s newly released risk report, what is at stake now goes far beyond profit margins.
While 2023 saw a healthy uptick — with overall commercial gaming revenues rising ≈ 10% and online sports betting up almost 45% year-over-year — that growth might be masking a rising tide of structural and systemic risks.
As KPMG puts it: the trouble isn’t that the industry is shrinking. It’s that the world around it is changing — and the push to digital, regulatory pressure, and evolving customer expectations are forcing a re-examination of how casinos, sportsbooks, and game suppliers operate.
Common Risks Across the Industry: What All Players — Land-based, Online & Suppliers — Should Watch
Even though different subsectors of gaming face different threats, the report identifies several recurring themes that span across the entire ecosystem.
• Heightened Regulatory Oversight & Compliance Challenges
Whether it’s land-based casinos or online gaming platforms, regulatory scrutiny is rising. For online operators especially, regulation is more complex and fragmented — and compliance failures can carry steep consequences.
• Data Security, Privacy & Cyber-Threats
As operators — especially online platforms — collect and manage vast amounts of sensitive user data, cybersecurity becomes central. The shift to digital means a much wider “attack surface.” Data protection, system resilience, and robust security controls are no longer optional.
• Responsible Gaming & Changing Customer Expectations
Today’s players demand more than flashy games. They expect transparency, safety, and ethical behavior. Operators who fail to embed responsible-gaming practices risk customer trust, legal backlash, and reputational damage.
• The Impact of Disruptive Events & External Shocks
From macroeconomic slowdowns and inflation to pandemics and geopolitical events, external “black swan” factors remain a constant threat — especially for land-based operators.
• Evolving Competition Between Land-based and Online Operators
Digital-native platforms are gaining traction, changing who plays, how they play, and where. Traditional brick-and-mortar operators risk being left behind unless they evolve.
Sector-Specific Risk Registers: What Land-Based Casinos vs. Online Platforms Face
One of the things that makes the KPMG report valuable is that it doesn’t treat “gaming” as a monolith. Instead, it breaks down risks by subsector — because the challenges vary significantly depending on whether you’re running a casino resort, a sports-betting site, or supplying gaming-related services.
Land-based Operators
Some of the top risks identified for traditional casinos and resorts include:
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Rising input and labour costs — from inflation to staffing shortages.
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Increasing regulatory and compliance burdens — often state-by-state, with tax and licensing complexity.
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Threat from online competitors — younger, digitally-native players prefer convenience over visiting a physical casino.
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Cybersecurity vulnerabilities — especially if legacy systems or third-party tech are used.
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Sensitivity to macro trends — e.g. volatile consumer spending, demographic shifts, economic downturns, or global crises.
Online Operators & Suppliers
For online gaming platforms and suppliers, the risks shift more toward technology, regulation and fraud. Key exposures include:
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Compliance across multiple jurisdictions — state, federal (or international, if operating globally) regulations.
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Fraud, identity theft, chargebacks, and financial-transaction risk.
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Sports integrity and risk of match-fixing, especially when betting overlaps with live sports and media.
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Data privacy and cybersecurity — with massive data flows, user accounts, payment details, and personal info at stake.
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Reputational risk stemming from irresponsible gambling, addiction concerns, or unethical promotional practices.
Why Risk Management Is No Longer Optional — It’s Existential
The 2024 report makes a clear point: as the gaming industry enters a new era, risk isn’t a side-concern. It’s a core determinant of whether a company thrives or falls behind. Many operators are now leveraging automation, data analytics, and even generative AI to strengthen their risk-assessment frameworks. But tools alone won’t suffice. Companies need to embed responsible practices — from privacy and cybersecurity to ethical marketing and consumer protection — deeply into their culture and strategy. Those who ignore these realities risk more than regulatory fines — they risk consumer trust, long-term viability, and their ability to compete in a fast-changing, digital-first world.
What This Means for Malta (and European / Global Observers)
While the KPMG report focuses on the U.S. market, many of the lessons translate globally — and that includes markets like Malta that host a combination of land-based casinos, online gaming, iGaming and gambling-related services. Here are a few takeaways that might resonate in your context:
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Regulatory complexity isn’t confined to the U.S. As operators span borders, adhering to different legal frameworks becomes critical.
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Cybersecurity and data protection are universal concerns, especially under European data-protection regimes (e.g. GDPR).
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Consumer attitudes are shifting: players expect fair, transparent, and responsible gaming — ignoring that may alienate users and damage brand.
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Future viability may depend on diversification: operators who build omnichannel offerings (online + offline) have a better chance of staying relevant.
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For suppliers and third-party service providers — robust compliance, transparency and security protocols will increasingly be table stakes.
The 2024 KPMG LLP “State of Risk in the Gaming Industry” report isn’t a doom-and-gloom warning. Rather, it’s a call to evolve — adapt business models, embrace compliance and cybersecurity, listen to changing consumer expectations, and treat risk as a strategic asset rather than a cost to ignore.
For companies that get it right, the changing landscape offers opportunity — not just survival. For those who don’t, the stakes are high.