Gambling Insider May/June 2020

May/Jun 2020 Mar/Apr 2019

DOWN BUT NOT OUT Online opportunities emerge as casinos shut ROUNDTABLE The lifeline online can offer land-based casinos REGULATION Striking the right balance in Europe AUTOMATION Testing the limits of human contact in a COVID-19 world

EDITOR’S LETTER COO, EDITOR IN CHIEF Julian Perry EDITOR Carl Friedmann Carl.Friedmann@gamblinginsider.com Tel: +44 (0) 207 739 9908 SENIOR STAFF WRITER Tim Poole Tim.Poole@gamblinginsider.com STAFF WRITERS Owain Flanders Owain.Flanders@gamblinginsider.com Iqbal Johal Iqbal.Johal@gamblinginsider.com

L

Julian Perry, COO, Editor in Chief

Carl Friedmann, Editor

ong before social distancing became required, it was already part of everyday life. After all, when was the last time you had someone else scan your groceries? But it isn’t just at the market. Contactless is a normal way to navigate through the day. In London, commuters don’t break their stride as they slap their Oyster cards on the readers to either ride the Tube or top up fare reserves. Of course, very few of us are tapping in or out of public transport at the moment, and we’re certainly yearning for human interaction without the threat of Zoombombing.

But the greater threat of Covid-19 is still keeping us isolated.

That aside, the momentum towards a more automated world has been steadily picking up pace. As we learn in Ezra Amacher’s feature on automation starting on page 42, MGM Resorts debuted in early March a sports wagering kiosk where customers can select a wager and print out a ticket without ever interacting with someone. It’s a way to keep the process more efficient and less intimidating for people who might want to bet but feel out of their depth. “The kiosks were designed for a pre-Covid-19 world, of course, but they offer a glimpse into a future where automation and AI create an increasingly individualised experience for customers,” says Amacher.

“By way of technological advancement and the collection and application of data, gaming companies are changing the way they attract and retain customers.”

This is how the world is progressing across all industries, but in ours, while the benefits and advancements in technology are celebrated, there's an even greater emphasis now on how to keep gambling secure. Regulation is always a hair-trigger topic, especially in the UK and Sweden, but the need for increased cyber security has been especially ramped up since we’ve all been told to stay at home. Stav Pischits, CEO of cyber security and data protection consulting company Cynance, says on page 32 that because the gaming world is data-driven, it has to be protected more than ever since attackers are exploiting the coronavirus pandemic as if it were any other situation. “More concerns regarding data protection will arise as so much outsourcing will increase exposure to data breaches, with many more parties accountable for data protection,” he says, adding that how companies are adjusting will become a dominant trend in the coming years. And as restrictions start to lift, companies will have to manage that transition. At least we’ll be back out in the world interacting with people, eating in restaurants, shopping and, if we choose, paying in cash.

CF Editor

CONTRIBUTING THIS ISSUE

Ezra Amacher Ezra.Amacher@gamblinginsider.com LEAD DESIGNER Laura Fogar DESIGNERS Rebecca Lydamore, Olesya Adamskar DESIGN ASSISTANT Radostina Mihaylova, Aimee Matthews EVENTS MANAGER Mariya Savova PRODUCTION CONTROLLER Emily Jackson WEBSITE MANAGER Tom Powling COMMERCIAL DIRECTOR Deepak Malkani Deepak.Malkani@gamblinginsider.com Tel: +44 (0)20 7729 6279 EVENTS SALES MANAGER Ryan Horwood Ryan@globalgamingawards.com +44 (0) 208 638 7610 SENIOR ACCOUNT MANAGER William Aderele William.Aderele@gamblinginsider.com Tel: +44 (0)20 7739 2062 ACCOUNT MANAGERS Michael Juqula Michael.Juqula@gamblinginsider.com Tel: +44 (0)20 3487 0498 Clive Waite Clive.Waite@gamblinginsider.com Tel: +44 (0)20 7729 0643 Richard Carr Richard.Carr@gamblinginsider.com Tel: +44 (0) 203 435 5624 Nitesh Patel Nitesh.Patel@gamblinginsider.com Tel: +44 (0) 207 739 5768 US BUSINESS DEVELOPMENT MANAGER Aaron Harvey Aaron.Harvey@playerspublishing.com Tel: +1 702 425 7818 US ACCOUNT MANAGER Erica Clark Erica.Clark@playerspublishing.com Tel: +1 702 430 1912 CREDIT MANAGER Rachel Voit WITH THANKS TO: Max Dubossarsky, Iryna Kurochkina, Arturo Chaltelt, Nick Nally, Andrea Boratto, Edgar Mkrtchyan, Dylan Slaney, Fintan Costello, Tobias Fagerlund, Pontus Lindwall, Stav Pischits, Jason Ader, Martin Lycka, Jack Symons, Tom Watson, Greg Tickner Gambling Insider magazine ISSN 2043-9466 Produced and published

by Players Publishing Ltd

STAV PISCHITS

Cynance CEO

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GAMBLINGINSIDER.COM

TOM WATSON

Former Labour Party deputy leader

All material is strictly copyrighted and all rights reserved.

Reproduction without permission is forbidden. Every care is taken in compiling the contents of Gambling Insider but we assume no responsibility for the effects arising therefrom.

The views expressed are not necessarily those of the publisher.

CONTENTS 28

FEATURES 24 Shift in search Digital marketing agency Panoptic analyses the impact of coronavirus on the gambling industry in search results 28 Sports betting after COVID-19 The impact of the pandemic has been severe on the UK sports betting market.

How will the industry get back on track?

32 Cynance and cybersecurity Cynance CEO Stav Pischits discusses gaming’s biggest cybersecurity threats during the coronavirus pandemic, including where hackers draw the line

ISSUES

32

8 Comment Tim Poole, Owain Flanders and Iqbal Johal discuss current industry issues

34 Regulation Could excessive regulation and restrictions in the European market lead to more harm than good in the gambling industry?

38 Roundtable Industry leaders discuss what online casino suppliers can offer land-based casinos, as executives from Worldmatch, BetConstruct and Scientific Games provide their analysis

16 Facing facts The latest industry data 18 Taking stock Tracking operator and supplier stock prices across a six-month period

42 Automation in gaming and hospitality Ezra Amacher examines the limits of human interaction in a COVID-19 world, with automation on the rise in the landbased sector as well as online

22 In Numbers A gaming snapshot by Fantini Research

42

48 Virtual sports betting Virtual sports are thriving. We look at why it’s the perfect vertical to fill the void and if it can sustain its growth, with plenty of competition from other forms of gaming 52 UK gambling and the BGC We examine the early progress made by the BGC to unify UK gambling, with former Deputy Leader of the Labour Party, Tom Watson, providing his take on the recently formed gambling body

52 54 Big question Which emerging market holds the greatest potential for gaming companies and why?

Executives from Digital Chain, Play'n GO and Continent 8 deliver their thoughts on markets such as Asia, LatAm and the US 58 Problem gambling and COVID-19 With a rise in players gambling online during the lockdown, we look at the risks of an increase in problem gambling

SLOT FOCUS

60 Channelisation Owain Flanders evaluates the current rate of channelisation in the Swedish market after its re-regulation 64 Macau Iqbal Johal assesses the decline in Macau gaming revenue and what the future holds once the coronavirus outbreak passes, with analysis from Jason Ader

60

66 Going virtual Zoltan Tundik, co-founder at European Gaming Media, and Gambling Insider’s Mariya Savova, organiser of AffiliateCon Sofia, discuss gaming events having to turn to plan B this summer

FINAL WORD

68 Uncharted waters BetInvest COO Max Dubossarsky advises industry peers on how to navigate the difficulties sports betting companies face 70 Facing the challenge head on BetGames.TV COO Aiste Garneviciene on how service providers must alter business models in the short to medium term 72 Bet2020: event review Tim Poole assesses one of the gaming industry’s first fully virtual conferences, as the sector adapts to microphones and headsets over trips abroad and physical networking events

74 What's new on the market Gambling Insider previews some of the newest products available in the online gaming market. Which slots does your company need to secure valuable revenue this summer?

82 On the road never travelled

70

David Patent, CEO of VizExplorer, explains why the US market is in for a long recovery, with the COVID-19 pandemic hitting US gaming particularly hard

COMMENT

TIM POOLE

WORKING FROM HOME Tim Poole dismisses the myth of reduced productivity when working from home. He sympathises, however, with an industry having to live without networking events as we have come to know them

In the modern world, with legions of organisations already functioning on at least a partially virtual basis, remote working is no rarity. For many, it will be second nature by now, or perhaps something they do as part of their weekly routine. Rather than something new for me, it feels more like déjà vu as I used to work from home full-time for two years.

Naturally, though, remote working on such a mass scale is an unprecedented phenomenon to our industry and the world as a whole. For workers who have spent years commuting into an office, the coronavirus pandemic forcing them to work from home will certainly have caused a shock to the system. But for those of you working remotely for the first time, please ignore the myth of lower productivity: your performance, just as it does in the office, remains completely up to you.

My personal experience is a case in point. Writing this article has both the same process and outcome whether it’s done from home or the office. (It’s even being written on the same computer).

But there are naturally some drawbacks that are important to be avoided. In the July/August 2019 edition of Gambling Insider, I wrote a feature on the importance of work/life balance and the risk of burnout for gaming executives. Again, drawing on my personal experience, work/life balance problems were actually heightened when I used to work remotely, as it was more difficult to separate work from home. They became one in the same.

In our industry, especially on the B2B scene, that fear is exacerbated, becoming probably the single biggest drawback of being away from your teammates. As we will explore later in this magazine, our industry’s conference and networking calendar as a whole has been postponed indefinitely. This means missing out

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on travel to fantastic locations, wonderful networking events and invaluable face time with partners and potential clients. And though this may benefit our health overall, it’s always a shame to miss out on the liquid hospitality served at these conferences!

Sitting at home rather than gracing bustling trade shows and generating new leads, especially for client-facing employees, can be a depressing prospect. Luckily, technology helps us to no end in this day and age, with instant messaging and calling applications bringing us closer to people all over the globe. But a positive attitude may be all the more important. If you miss your colleagues, which I know I do, just think how happy that eventual post self-isolation reunion will be.

Technology has also aided in the form of virtual conferences, with several events now moving online, allowing the same opportunities for presentations, panels, discussions and information sharing. If you stay in touch with peers and colleagues as much as you can digitally, you may just end up speaking to them more from home than you would have normally, especially if you usually work in massively impersonal and compartmentalised office blocks.

Unfortunately, where our industry has undoubtedly been affected, mostly in the B2C sense, is in retail locations. According to the American Gaming Association, 96% of US casino workers have been affected by the coronavirus pandemic, while betting shops across the world will naturally receive less business – or none at all should they be forced to close. For workers providing these kinds of services, there is no remote option.

The distribution of Gambling Insider is affected as well, with there being fewer to no shows where copies can be sent. Magazines will still get to people’s homes, however, while digital traffic has naturally risen. In fact, a focus on digital represents an opportunity even at such a difficult time. An extreme example like this only highlights the need for retail and land-based companies, while still making hay, to build a strong technological arm to fall back on in an ever-digitalising world.

So, for anyone complaining about being stuck at home, just think of those for whom remote working is not even an option. Indeed, the chance to remain in work is not to be taken for granted: reach out to your clients more, sign up for virtual conferences and find a hobby that allows you to switch off when you clock off. Follow those simple steps and the pitfalls of working from home will, at the very least, become significantly reduced.

“REACH OUT TO YOUR CLIENTS MORE, SIGN UP FOR VIRTUAL CONFERENCES AND FIND A HOBBY THAT ALLOWS YOU TO SWITCH OFF WHEN YOU CLOCK OFF”

COMMENT

IQBAL JOHAL

THE SHOW MUST GO ON Despite all major sports being put on hold, Iqbal Johal details how the betting industry can still thrive during these tough times

It’s five to three on a Saturday afternoon. The thrill, the anticipation of how your team will perform over the next 90 minutes peaks. Will your beloved boys in blue take home a crucial three points in the race for promotion? But instead, there’s emptiness now. Both in a literal and physical sense. The streets are empty, the stadiums are empty, a reflection of the void inside supporters up and down the country.

The hope and passion that comes from following a sports team, suddenly ripped away.

That’s the impact that sports has on millions in the UK and billions across the world. So when the announcement was made that all the major sporting events, including the top European football leagues, were postponed – with Euro 2020 and the Olympics cancelled until next year – a thought occurred to me: what devastating impact will this have on operators, with no sports betting?

To me, sports betting was always, and still is, the first vertical that comes to mind when I think about the gambling industry.

Sport and betting go hand in hand, whether it’s sticking a fiver on the big game with your mates, or a well-informed bet with a bookmakers. To me, operators wouldn’t be able to exist without live sports betting.

Instead, that’s not exactly the case. When looking at business updates from operators and suppliers in response to the impact the coronavirus outbreak will have on them, it’s clear they’re profitable enough to offset any losses due to the lack of sport.

From their update in March, William Hill expected the impact of the coronavirus outbreak to reduce group EBITDA by £100m to £110m, considering that in 2019, 53% of its revenue was generated through sports betting.

GVC Holdings, who owns Ladbrokes Coral, predicted EBITDA will be reduced by £130-150m, while Paddy Power Betfair-owned Flutter Entertainment estimate reduction of group EBITDA of £90-£110m, with 78% of its 2019 revenue coming from sports betting.

However, in relative terms, a £100-£150m reduction of EBITDA doesn’t, on the face of it, seem like a considerable amount when you factor in the percentage of revenue it makes from sports betting.

That’s especially true when you look at 2019 total revenue. GVC’s Net Gaming Revenue (NGR) for 2019 was £3.66bn on a reported basis. Flutter’s revenue for last year was £2.14bn and Stars Group recorded revenue of $2.53bn.

This demonstrates that despite what you would automatically assume would be a catastrophic impact of having all sporting events suspended or cancelled, operators will still thrive.

That sentiment goes further for suppliers who don’t rely on sports betting nearly as much. Evolution Gaming stated in March that daily operations were largely undisturbed, and many players had switched to online casino games. While affiliate Net Gaming only makes 9% of its total revenue from sports betting.

Despite once thinking sports betting was the main vertical in the gambling industry, the coronavirus outbreak and the subsequent suspension has categorially proven that it’s just one of a handful of offerings now. Operators and suppliers will continue to excel

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in their esports, live casino, poker or virtual offerings, just to name a few.

In an era where the speed and engagement of the game is what appeals to a newer audience, in particular a millennial or Generation Z consumer, the likes of online casino and virtual sports can offer what the new player wants.

That’s exactly what virtual sports offer, with Newgioco saying it’s a great alternative to a lack of live sports, where customers can engage more with virtual events. It also expects the lack of live sport to have a surging effect on the long-term future of virtual sports.

It’s obviously a tough time for the industry, as the world tries to come to terms with the life-changing virus. Losses will naturally occur but the industry has an opportunity to cement its offerings in various verticals. It’s very clear that the industry will survive without sports betting for now, but that’s not to say how desperate we are for sport to resume. And fast. After all, the show must go on.

COMMENT

EZRA AMACHER

SLOW RECOVERY EXPECTED FOR US CASINOS Ezra Amacher assesses the risk vs. reward aspects of US casinos getting back on track, with a look to the East for guidance When the United States government declares the country reopened for business, casino owners and operators will have to decide whether it’s safe enough and financially feasible to allow guests back inside their properties. Dueling philosophies will inevitably emerge. On one side there’ll be those who want to win back lost profits as soon as possible. Others will take a wait-and-see approach. Whichever path these operators choose, they’ll encounter plenty of pain along the way.

There’s no one-size-fits-all approach to handling COVID-19, which has struck American cities disproportionately to more rural areas. While heavy metros like New York, Detroit and New Orleans have suffered enormous sickness and fatalities, other regions like the Midwest and Southwest have been relatively spared from the virus.

It’s likely that we’ll see casinos open sooner in states with fewer cases. Nevada reported around 3,000 COVID-19 cases by mid-April, a small number compared to the approximately 200,000 cases in New York and 70,000 in New Jersey over the same period. Las Vegas and Atlantic City could be on far different time tables for opening non-essential businesses.

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Even if Las Vegas casinos reopen sometime in May, they’ll struggle to bring in out-of-state or international customers.

Though some companies have begun to reschedule conventions for later in the year, Las Vegas is sure to lose out on millions of work-related trips in the coming months.

Sin City must bear for a significant loss of American and Chinese tourism dollars as well. As the American economy enters a recession with record unemployment numbers and a capricious stock market, fewer people will be able to afford to take trips. In late January, the US government barred entry to foreign travellers from mainland Chinese, effectively shutting off Las Vegas from vital clientele.

Casinos will hurt for as long as Chinese tourists are denied entry into the country.

Macau, which recently instituted its own orders prohibiting some Chinese mainland visitors, offers a grim forecast for what Las Vegas casinos can expect once they do reopen. The Public Security Police Force of Macau reported that less than 1,000 people visited the city over a three-day Easter weekend. Macau brought in 250,000 visitors in March, down 92% year-on-year and April figures are sure to be worse.

Las Vegas casinos that choose to open as early as possible face the risk of spreading COVID-19 among customers and causing another spike, which could lead to more shutdowns. Though there won’t be a linear road to recover for La Vegas or anywhere else, some situations are more dire than others.

Tribal casinos will face heightened pressure to reopen and provide much needed revenues to their communities.

A report from Meister Economic Consulting states that casino closures cost tribes $4.4bn in economic activity over a two week span. An empty gaming revenue stream could threaten to obliterate social and educational programs among poorer tribes.

The safety of casino workers and guests should be paramount as operators and owners strategise when to reopen, but the economic repercussions of keeping casinos closed cannot be understated.

A staggering $74bn in total annual wages is at risk due to casino closures according to the American Gaming Association. The welfare of those employees is paramount, especially the ones who live paycheck to paycheck.

Casinos are stations of risk and reward. Now it’s the turn of casino executives to place their own bets, not on a hand of blackjack or a roll of dice, but on the health of their employees and guests. Sound judgment and decision making are essential in the coming months as casinos and the entire gaming industry respond to an unprecedented crisis.

COMMENT

OWAIN FLANDERS

THE SILVER LINING As the COVID-19 pandemic impacts gambling markets across the globe, Owain Flanders asks if any positives can be taken from the situation So far in 2020, the gambling industry has taken a beating from COVID-19.

In March, Macau’s Government halved its expectations for the jurisdiction’s gross gaming revenue to MOP130bn (US$16.3bn), while the European Gaming and Betting Association reported an estimated 11% drop in global gaming revenue as a direct result of the outbreak – which actually seems slightly optimistic.

As stock prices fall and with no real idea of when the situation will improve, these are uncertain and worrying months for the industry.

But at times like this, it’s beneficial to live by the words of Eric Idle’s crucified character in Life of Brian: “Always look on the bright side of life.”

So what positives can the industry salvage from the remnants of this coronavirus-shaped crater?

MOBILE/ONLINE MIGRATION One solace a lot of operators can take from the closure of land based betting shops and casinos is the inevitable migration of players to online.

Speaking with Gambling Insider shortly after the Italian lockdown was first enacted, Newgioco CEO Michele Ciavarella outlined the migration to online as a positive for the gaming company’s operations in Italy, and this was a sentiment mirrored across the gambling world as the coronavirus trading updates rolled in.

888 Holdings reported that, while delays to the sporting calendar had caused damage to its sports betting vertical, a rise in casino and poker activity had allowed the operator to trade above expectations. As a result, up to March 18 the operator’s daily revenue was up 18% year-on-year.

In fact, while the pandemic caused stock prices to tumble across the globe, at press time, online gaming companies have begun to see significant share price growth. In early April, 888Holdings saw a 62% rise, while NetEnt saw its stock rise 42% and Playtech 28% - perhaps representing a shift of investor interest towards online gaming businesses.

If operators are able to capitalise on a growth in online activity, then it won’t only see them through the tough months ahead, but could also prove vital in acquiring permanent online customers.

This will be particularly significant in those markets traditionally reluctant to make the shift to online, such as Italy.

GROWTH IN ESPORTS With an aim to combat fan disappointment after the indefinite postponement of the Australian Grand Prix, Lando Norris, a young Formula 1 driver for Mclaren, took to Twitch to stream his own online version of the race with the help of a number of ex-racers, professional athletes and celebrities. The race was a major hit with Twitch users, accumulating more than 70,000 viewers – smashing the previous record held by F1 esports.

As more races are cancelled and virtual races organised for the rest of the season, it seems this situation could be providing us with a glimpse into the future. Esports is already experiencing a growth

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in viewership as homebound sports fans look towards the online world for entertainment. As the situation continues, could we see mass numbers of football fans turn to FIFA competitions for their weekend entertainment; or basketball fans tuning in to Counter Strike for a daily dose of competition?

Speaking with Gambling Insider in March, Quentin Martin, CEO of esports betting site Luckbox, explained that esports is “more resilient because matches can be played online, without players needing to be in the same place.” As a result, he said there was a 54% increase in new player registration figures since the English Premier League was postponed.

While undoubtedly the postponements have caused heartache to operators hoping for a profitable sport-laden summer, the increased interest in esports provides an opportunity for operators to build on what is fast becoming the future of betting.

THIS TOO SHALL PASS There is hope for the future of gaming. While the situation in Europe seems to be showing some faint signs of recovery, the city of Wuhan, ground zero for the pandemic, is slowly getting back on track. Over months the situation will undoubtedly improve. Betting shops will once again open their doors; our screens will be graced with more sport than we know what to do with; and bettors will return to their favourite bookies with a new vivacity fostered in these solitary months. The future is bright.

GRAPH 3 ISSUES

NUMBER CRUNCHING Updated period

% Customers

Proportion of gamblers aware of self-exclusion

Updated Jun 18 - next update due Sept 18

51%

Proportion of gamblers that have self-excluded

Updated Jun 18 - next update due Sept 18

8%

Updated Mar 18 - next update due Sept 18

8%

Updated Mar 18 - next update due Sept 18

61%

Facing facts

Gambling Insider compares Q4 2019 figures for some of the industry’s Updated Jun 18 Proportion of gamblers that have - next update 18% biggest companies and looks attitudes towards casino gaming ever read the T&C’s into US due Sept 18 Proportion of gamblers that have made, or attempted to make, a complaint about a personal gambling experience

GRAPH 1GRAPH 1

Proportion of all respondents

Suppliers’ Q4 2019who revenue ($m) have been sent or seen any information from gambling Source: Company reports companies

New2GRAPH 2 New GRAPH

GRAPH 6

1400

1400

1050

1050

Legal sports betting

750

750

Direct TV Advertising Revenue from Gaming Services

350

350

0

0

GRAPH 1

4000

4000

Annual revenue 3000

3000

2000

2000

1000

1000

0

0

New GRAPH 2

4000

3000 Direct Sponsorship Revenue from Gaming Services

$586 (M)

$267 (M)

2000 Scientific IGT Games

Scientific Games

IGT Evolution Gaming

Operators’ Q4 2019 revenue ($m) Source: Company reports

Evolution Revenue AGSData and VideoAGS Gaming

$89 (M)

Boyd Gaming Kindred

Boyd Gaming

Kindred Betsson

Betsson MGM Resorts

MGM Resorts

1000 Indirect Revenue from Media Rights, Sponsorships, Merchandise and Ticket Sales

$3.28 (B)

0 Scientific Games

IGT

Evolution

AGS

Boyd Gaming

Gaming comparison: GRAPH 4 Caesars Entertainment, GRAPH 2019 FY4revenue

GRAPH 8

Sector

AtMar 31 Mar At 31 AtMar 31 Mar At 31 AtMar 31 Mar At 30 At 31 Mar At 31 Mar At 31 Sector Las Vegas Sands Caesars Sept MGM 2015 2016 2017 2018 2015 2016 2017 2018 2018

Betting

Betting8,995

3.8 Adult Gaming Centre Adult Gaming Centre (AGC) 1,610(AGC) Bingo 674 At 31 Mar At 31 Mar Sector 2015 2016 2.85 Family Entertainment Centre Family Entertainment Centre (FEC) 331 (FEC) Bingo

Betting

t Gaming Centre (AGC) 1.9 1,610 TOTAL 1,549 TOTAL 11,758 Bingo

y Entertainment Centre (FEC) 0.95

TOTAL

8,557 8,425

8,425

1,610 1,549

1,5461,549

1,546 1,511

1,511 1,436

1,436

635

650657

650

219319

2013219

2013

654

635 At 31 Mar 2018 319345

657 At 30 Sept 2018

8,802 148 152

8,557 152 149

8,425 149 151

1,546 11,758 11,615

1,511 11,615 11,451

1,436 11,451 11,095

674

654

635

657

650

331

345

319

219

2013

148

Casino

8,557 8,802

345331

8,915 8,995Casino 148

Casino

8,8028,915

674

0 11,758

152

149

151

152

11,615

11,451

11,095

10,866

Q1

Q2

Q3

152151 11,095 10,866

GRAPH 5

At 30 Sept 2018

8,995 8,915

654 At 31 Mar 2017

GRAPH Betsson 5GRAPH MGM Resorts5

US attitudes towards casino gaming Source: American Gaming Association

MGM and Las Vegas Sands ($bn) Source: Company reports

GRAPH 4

Kindred

152

50 adults have a favorable view 50 49% of American

48

48

of the casino gaming industry, an all-time high

40

40 40

40

35

35

10,866 40

31

30 2009

49

48 36 34

34 45

36 45

31

40 30 20102012 20112014 20122018 20142019 2018 2010 20092011 36

34 35

31

30 Q4

2009

2010

2011

2012

2014

2018

2019

GRAPH 7GRAPH 7 16

GRAPH 7

GAMBLINGINSIDER.COM

Total gross gaming surplus ( EUR) Total gross gaming surplus ( EUR)

45

45

45

50

45

49

% share of customers % share of customers

Average gross gaming surplus Average gross gaming surplus per customer (EUR) per customer (EUR)

2

Scientific Games

IGT

Evolution Gaming

New GRAPH 2

GRAPH 1

3 NUMBERGRAPH CRUNCHING

GRAPH 4

ISSUES

4000

1400

At 31 Mar 2015

Sector

750

Number of active premises licensed by the Gambling Commission Source: Gambling Commission

350

IGT

At 31 Mar At 31 Mar 2017 2018 Updated Jun 18 - next update due Sept 18 8,557 8,802

8,915

8,995

Adult Gaming Centre (AGC) 1,610 1,549 Proportion of gamblers that have self-excluded 1000674 Bingo 654

Evolution Gaming

At 30 Sept 2018

51%

8,425

Updated 1,546 Jun 18 1,511 - next update due Sept 18

635

1,436

8%

657

650

Family Entertainment Centre Updated 203 345 319 Jun 18 219 Proportion of 331 gamblers that have (FEC) - next update 18% ever read 0 the T&C’s due Sept 18 151 148 152 152 149 Casino Boyd GamingUpdated Kindred Betsson MGM Resorts Proportion of gamblers that have Mar 18 made, or attempted a 11,095 10,866 TOTAL 11,615 11,758 to make, 11,451 next update 8% complaint about a personal due Sept 18 gambling experience

0 Scientific Games

At 31 Mar 2016

Proportion of gamblers aware of self-exclusion 2000

Betting

% Customers

Updated period

3000

1050

on

AGS

AGS

MGM Resorts

Proportion of all respondents who have been sent or seen any information from gambling companies

Updated Mar 18 - next update due Sept 18

61%

Annual revenue the American major leagues are GRAPH 5 expected to generate from legal sports betting Source: American Gaming Association GRAPH 6

UK customer social responsibility measures GRAPH 3 awareness GRAPH Source:4Gambling Commission

GRAPH 7 % Customers Updated period At 31 Mar At 31 Mar At 31 Mar At 31 Mar 2015 2016 2017 2018

Sector

49

48

Updated Jun 18 - next update due8,915 Sept 18

Proportion of gamblers aware of self-exclusion Betting 8,995

45

Adult Gaming Centre (AGC) 1,610 Proportion of gamblers that have self-excluded Bingo 674

1,546

345Jun 18 Updated - next update due152 Sept 18

319 149

151

152

Proportion of gamblers that have TOTAL 11,758 made, or attempted to make, a complaint about a personal gambling experience

Updated Mar 18 11,615 - next update due Sept 18

11,451

11,095

10,866

Proportion of all respondents who have been sent or seen any 2019information from gambling companies

Updated Mar 18 - next update due Sept 18

2018

635

8%

50

45 Direct TV 45 Advertising Total gross gaming surplus ( EUR) Revenue from Gaming Services

8,425

8,557

1,549 Updated Jun 18 - next update due654 Sept 18

Family Entertainment Centre 331 (FEC) of gamblers that have Proportion ever read the T&C’s 148 Casino

2014

8,802

51%

1,511

1,436

657

650

219

2013

15,001 - 30,000

Legal sports betting

20,349

10,805

19,423,756

31

9,648,523

13,653,368

18,087,884

18,436,519

Data and Video Revenue

30 22,931,914 22,007,735 2009 2010

0.08%

0.13%

0.48%

0.48%

1.08% 2014

1.09% 2018 2019

$89 (M)

21,600,129 2012 2011

1 - 8,000 76,596,044 71,410,935 67,150,397 70.63% Indirect Revenue from Media Rights, Sponsorships, $3.28 (B) Merchandise and Ticket Sales Winning players -21,848,010 -23,056,491 -23,003,994 27.73%

103,104,929

98,098,586

97,836,418

100.00%

Paf player statistics 2017 to Sep 2019 Source: Paf

Annual revenue

GRAPH 8

Direct TV $586( EUR) (M) Total gross gaming surplus Advertising Revenue from Gaming Services 3.8

44,765

6,037, 35 225

8,001 - 15,000

61%

Average gross gaming surplus per customer (EUR)

% share of customers

Oct 2018 Oct 2017 Oct 2016 Player loss (EUR) Sept 2019 Sept 2018 Sept 2017 Direct Sponsorship Revenue from Gaming Services $267 (M) 2.85 > 30,000

Oct 2018 Sept 2019

Oct 2017 Sept 2018

Oct 2016 Sept 2017

Oct 2018 Sept 2019

Oct 2017 Sept 2018

Oct 2016 Sept 2017

6,037,225

9,648,523

13,653,368

0.08%

0.13%

0.20%

36,589

39,870

44,765

15,001 - 30,000 19,423,756 Data and Video Revenue 8,001 - 15,000 22,931,914

18,087,884

18,436,519

0.48%

0.48%

0.60%

20,686

20,255

20,349

1.08%

1.09%

1.32%

10,766

10,751

10,805

70.63%

66.74%

73.65%

551

570

604

27.73%

31.57%

24.22%

-400

-389

-629

100.00%

100.00%

100.00%

524

522

648

Q3

Q4

$89 (M) 1.9 22,007,735 21,600,129

1 - 8,000 76,596,044 71,410,935 67,150,397 Indirect Revenue from Media Rights, Sponsorships, $3.28 (B) Merchandise Sales Winning players and Ticket-21,848,010 -23,056,491 -23,003,994 0.95

604

TOTAL

-629

103,104,929

98,098,586

97,836,418 0 Q1

648

Q2

GAMBLINGINSIDER.COM

GRAPH 8

Oct 2017 Sept 2018

O S

34

> 30,000

GRAPH 6

GRAPH 7

2017

% share of customers

402018 Oct Oct 2017 Oct 2016 Oct 2018 Player loss (EUR) 36 2019 Sept 2019 from Gaming Sept 2018 Direct Sponsorship Revenue Services Sept 2017 $267 Sept (M)

TOTAL

s

$586 (M)

40

18%

8%

49

48 Annual revenue

Legal sports betting

At 30 Sept 2018

17

66.74% 31.57% 100.00%

1

ISSUES

TAKING STOCK

Gambling Insider tracks operator and supplier stock prices across a six-month period (November 2019 to April 2020). The stock price is taken from the first day of each month and last date available at press time The Stars Group

GVC Holdings Currency (GBP)

17.5

2.5

8.75

0

0

Nektan

888 Holdings

1.5

0.45

0

0

GAMBLINGINSIDER.COM

y ar nu Ja

be No ve m

M

y ar nu Ja

Six-month high – 5.75 (01 Nov) Six-month low – 0.75 (27 Mar)

M

0.9

r

3

ar ch

1.35

r

4.5

ar ch

Currency (GBP) 1.8

be

y nu Ja

Six-month high – 34.45 (2 Jan) Six-month low – 17.61 (18 Mar)

6

No ve m

ar

be No ve m

M

y ar Ja

nu

No ve m

be

Six-month high – 9.32 (12 Feb) Six-month low – 3.24 (19 Mar)

Currency (GBP)

18

M

5

r

26.25

ar ch

7.5

r

35

ar ch

Currency (CAN$)

10

Six-month high – 1.8 (01 Nov) Six-month low – 0.71 (18 Mar)

ISSUES

TAKING STOCK

Playtech

Penn National Gaming

2.5

22.5

1.25

15

0

0 y nu

ar

be

Ja

M

Ja

No ve m

y nu

ar

be No ve m

M

30

r

3.75

ar ch

37.5

r

5

ar ch

Currency (US$)

Currency (GBP)

Six-month high – 4.11 (20 Nov) Six-month low – 1.40 (19 Mar)

Six-month high – 38.28 (13 Feb) Six-month low – 4.52 (18 Mar)

Eldorado Resorts

Boyd Gaming Currency (US$)

Currency (US$) 35

70

30 52.5

25 20

35

15 10

17.5

5

20

GAMBLINGINSIDER.COM

ar ch M

y ar nu Ja

be No ve m

ar ch

ar nu Ja

M

y

r be No ve m

Six-month high – 69.47 (20 Feb) Six-month low – 7.10 (18 Mar)

r

0

0

Six-month high – 34.74 (20 Feb) Six-month low – 7.84 (18 Mar)

ISSUES

FANTINI RESEARCH

STRENGTH AHEAD OF COVID Fourth quarter earnings results from US gaming companies showed the strength of the industry before the COVID-19 crisis began.

In its wake, 99% of the US gaming industry is closed, including commercial casinos, tribal casinos and distributed gaming outlets.

Most companies have not yet quantified the impact COVID-19 will have on earnings moving forward.

Below are some highlights following fourth quarter earnings by company: • AGS generated record quarterly EBITDA of $37.265m in the fourth quarter, and pre-Covid forecasted EBITDA to grow 1 to 5% this year with the launch of cabinets Orion Rise, Orion Curve and Starwall.

• Boyd generated strong EBITDAR growth in the first quarter in every segment, and prior to COVID-19, was forecasting $915m to $935m in adjusted EBITDAR this year. The Midwest and south operations were bolstered by recent acquisitions of Ameristar and Belterra properties, while Las Vegas locals remained consistent in the fourth quarter with strong trends throughout 2019.

• Churchill Downs posted record adjusted EBITDA in the quarter after a 72% spike, boosted by strong performances at Derby City Gaming and Rivers Des Plaines. The Kentucky Derby has been postponed to early September due to COVID-19.

• Eldorado Resorts grew markings in the fourth quarter by 1.3% points to 26.4% and grew EBITDA 11.%. The merger with Caesars is still reportedly moving forward, thought details on the closure amid the COVID-19 crisis remain unclear.

• Everi generated record EBITDA and games sales in 2019. FinTech had another year of growth in all areas, while Everi also entered into the player loyalty business through the acquisition of marketing assets from MicroGaming Technologies.

• Full House Resorts’ Silver Slipper casino in Mississippi had its best year ever despite low hold in the fourth quarter. EBITDA at its Bronco Billy’s and Rising Star was hurt by the casino being down for the installation of Konami’s slot management system.

• Golden Entertainment generated record fourth quarter revenue and EBITDA on growth across casinos and distributed gaming. Distributed gaming in Nevada and Montana at the end of the fourth quarter were generating attractive organic growth, according to CEO Blake Sartini.

• IGT beat fourth quarter consensus and had expected to generate $740m to $790m in operating income this year, though those estimates pre-date the COVID-19 crisis. The company generated $1.1bn in cash from operations that it used to pay down debt, invest in the company and return cash to shareholders.

• Melco Resorts posted all-time high adjusted property EBITDA of $1.689bn in 2019. Fourth quarter revenue grew as the mass-market table game segment performed better than the year prior.

• Scientific Games had decreased gaming revenue in the fourth quarter on lower gaming machine sales and fewer fourth quarter system launches in Canada. Its gaming installed base was flat vs. the third quarter as a new casino opening was offset by the removal of older machines.

fantiniresearch.com

22

GAMBLINGINSIDER.COM

FANTINI RESEARCH

ISSUES

FULL YEAR HIGHLIGHTS

Company

Revenue

Year-over-year % change

EBITDA

Year-over-year % change

AGS

$304.71 m

+6.81

$146.06 m

+7.24

Boyd

$3.326 bn

+26.61

$798.965 m

+20.94

Caesars

$8.742 bn

+4.18

$2.405 bn

+4.20

Churchill Downs

$1.330 bn

+31.81

$451.4 m

+37.29

Eldorado

$2.528 bn

+22.96

$697.479 m

+34.93

Everi

$533.227 m

+13.57

$253.201 m

+9.90

Full House

$165.432 m

+0.94

$15.940 m

-9.69

GLPI

$996.166 m

+33.24

$1.040 bn

+12.24

Golden Ent

$973.410 m

+14.28

$184.394 m

+11.93

IGT

$4.786 bn

-0.93

$1.713 bn

-1.38

Las Vegas Sands

$13.739 bn

+0.07

$5.389 bn

+2.08

Melco Resorts

$5.737 bn

+10.56

$1.574 bn

+14.22

MGM

$12.900 bn

+9.67

$3.01 bn

+6.27

MGP

$881.078 m

+1.33

$922.80 m

+15.68

Monarch Casino

$249.166 m

+3.68

$61.687 m

+1.82

Penn National

$5.301 bn

+47.74

$1.239 bn

+19.25

Red Rock Resorts

$1.857 bn

+10.47

$509.01 m

+0.01

Scientific Games

$3.400 bn

+1.10

$1.33 bn

+0.30

SciPlay

$465.8 m

+11.92

$122.3 m

+30.11

Twin River

$523.577 m

+19.67

$167.150 m

+0.88

VICI Properties

$894.798 m

-0.35

$846.613 m

+17.19

Wynn

$6.61 bn

-1.59

$1.815 bn

-11.20

GAMBLINGINSIDER.COM

23

FEATURES

SHIFT IN SEARCH

SEARCHING FOR SOLUTIONS Managing Director of Panoptic Media Greg Tickner examines the impact of the coronavirus pandemic on the gaming industry to search results

COVID-19 has caused international chaos, both on the health front and the economic front too.

It’s a pandemic that has had devastating impacts on lives, and many businesses around the world could never have envisaged the utter turmoil it has caused. As a specialist online gaming link building agency, we thought we would explore

the impact of the coronavirus on search behaviour in the online gambling industry.

The data below shows how gambling industry link building perhaps could, and should, shift during the COVID-19 pandemic we’re currently facing.

NB: All data in this article, relates to the periods mentioned, prior to the date of writing – 23rd March 2019.

Taking the topic ‘Online Casino’ and looking at Google Trend data over the past 30 days, it has remained fairly stable:

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23 Feb 23 Feb

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However, since the pandemic has really begun to set in over the past five days, with businesses closing and countries

10 Mar

18 Mar

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18 Mar

going into lockdown, searches around the topic of online casino have seen an upward trend:

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FEATURES

0 16 Mar

18 Mar

The incremental increase may be somewhat marginal, but nevertheless, there is certainly a pattern there. However, the same marginal increase cannot be said for online poker related terms. If we take a look at the data for Google

20 Mar

searches around the topic ‘Online Poker’, the trend is remarkably different.

Rewinding back to the end of December, when COVID-19 wasn’t the household term it is now, and wasn’t causing the devastation we’re

seeing today, searches around ‘Online Poker’ remained fairly constant. However, since the world went into isolation and lockdown to varying degrees, the surge in these types of searches has been somewhat staggering:

1

100

75

50

25 0 19 Jan 2020

23 Dec 2019

15 Feb 2020

13 Mar 2020

And when we look at it over the past 30 days, the curve is sharper still:

1 100 100 75 75 50 50 25 25

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0

23 Feb

2 Mar

23 Feb

10 Mar

2 Mar

10 Mar

18 Mar 18 Mar

It is again similar for the past 10 days: 100 100 75 75 50 50 25 25 0 0

13 Mar 13 Mar

15 Mar 15 Mar

19 Mar 19 Mar

GAMBLINGINSIDER.COM

100

25

100

75

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50 FEATURES

SHIFT IN SEARCH

75 25 0

50

13 Mar In a nutshell, searches for topics around ‘Online Poker’ have seen a sudden surge, to the 25 extent they’ve seen almost a 400% increase in search volume over the last 30 days0 – quite a staggering statistic.

13 Mar

15 Mar the same can be said about Furthermore, searches relating to ‘Online Bingo’. In fact, search volume around this term has seen an increase of over 400% in the last 30 days alone:

19 Mar

15 Mar

19 Mar

100

75

50

100 25

75 0

50 23 Feb

2 Mar

10 Mar

18 Mar

25 0 Feb increases in online poker and 2 Mar These23sharp online bingo related searches coincide with the worsening of the COVID-19 pandemic. It’s 100 no coincidence that as the situation worsens, and more and more people are forced into

10 Mar taking residence in their own homes, there is an incremental increase surrounding these online gambling related topics.

However, as we approach a stage in the pandemic where almost all major sporting

18 Marcancelled or postponed, events are being fewer people are searching for terms around this. As an example, here is the Google Trends data for the past 30 days, on searches around the topic, ‘Sports Betting’:

75

50

100 25

75 0 23 Feb

2 Mar

10 Mar

18 Mar

50

25 0 23 Feb

2 Mar

It has taken a massive nosedive, with there now only around 35% of people searching around this topic, in comparison to 30 days ago, on 23 February.

So what does this mean for online gambling companies and affiliates? It

26

GAMBLINGINSIDER.COM

10 Mar

certainly presents a real opportunity for those who operate in the games, casino, poker or bingo space – or indeed those who wish to shift their strategy towards these areas. There are more searches, arguably than ever before for topics

18 Mar

around online bingo and online poker. As people are being forced to stay in their homes, it's clear there's a large chunk of the population looking to entertain themselves with the products the online gaming space has to offer.

FEATURES

SPORTS BETTING AFTER COVID-19

ROAD TO RECOVERY

By Owain Flanders

Owain Flanders looks into the impact of the COVID-19 pandemic on the retail and online sectors of the UK sports betting market, and assesses how the industry can get back on track once the dust has settled

The COVID-19 pandemic has been devastating to the global gaming industry, and the UK sports betting market has been especially hit hard.

The need for social distancing has hugely impacted the market’s retail sector, causing the closure of nearly 7,000

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GAMBLINGINSIDER.COM

high-street betting shops. As a result, UK sports betting giant William Hill announced it expected the impact of the virus to reduce its EBITDA by £100m ($118.8m) to £110m for the year. This concern was made even more evident in March, when incoming William Hill CFO

Adrian Marsh announced he wouldn’t join the operator, deciding instead to maintain his role at a packaging company.

Ultimately, governmental assistance could prove absolutely vital for the retail segment’s survival. However, the UK Treasury has been indecisive in its

SPORTS BETTING AFTER COVID-19

treatment of the issue. On 17 March, Chancellor of the Exchequer Rishi Sunak announced the Treasury would provide a business rate holiday for “every single shop, pub, theatre, music venue and restaurant and any other business in the retail, hospitality or leisure sector”.

This relief excluded the gambling sector, however, with bingo halls betting shops and casinos classified as financial services.

Without this much-needed assistance, the Betting and Gaming Council (BGC) predicted the pandemic would undoubtedly result in permanent closures – risking the jobs of around 64,000 employees across the UK. However, after the publication of an open BGC letter condemning the Chancellor’s decision, the UK Government changed the ruling to include the gambling industry within the leisure sector, prompting bookmakers and their workers to breathe a collaborative sigh of relief.

The BGC has since announced a number of key measures to assist bookmakers during the crisis, including a coronavirus job retention scheme, the suspension of VAT, grant funding of £25,000 for retail, hospitality and leisure businesses, and a statutory sick pay relief package. But will all of this be enough for the retail industry to survive, particularly considering the struggle it's already endured?

Last year, the UK Government introduced a stake reduction on fixed-odds betting terminals (FOBTs) to £2 and undoubtedly this had a huge impact on retail betting shops, with many forced to close their doors for good. GVC, owner of Ladbrokes Coral, was one of the worst affected. The operator was forced to close down 13% of its land-based estate in 2019 as a result of the maximum stake cut. Now, with the added difficulties created by the pandemic, the betting shops of GVC and its fellow UK bookmakers will be under even more strain.

When contacted for comment on the issue, GVC’s concern is evident. However, the operator insists governmental assistance does provide some confidence for the future of retail. “We’ve completed our shop closures that resulted from the £2 stake limit,” a GVC spokesperson told Gambling Insider. “While it’s too early to say what the full impact of COVID-19 will be on the retail estate, the intervention of the UK Government paying furloughed workers wages and providing business rate relief was hugely welcome and helpful. This leaves us confident on the future of our retail offer.”

Whether or not this relief will allow the retail sector to survive is questionable, but there’s some inspiration to be taken from GVC’s innovation prior to the closures.

In December 2019, Ladbrokes Coral opened two new “concept” betting shops in partnership with Racing Post. The new design aimed to take retail betting away from the humdrum darkened shops of the past, and towards a brighter more digital experience, with the addition of new self-service terminals, sports screens and digital displays.

Regardless of financial assistance during the COVID-19 pandemic, UK retail betting is evidently in a fight for survival, and its future could lie in innovative new designs such as this. While the retail shutdown has dealt a damaging blow to businesses that rely heavily on revenue from land-based betting, it could also provide some operators with the motivation they need to incorporate a revamp into the reopening of their shops, turning a difficult situation into an opportunity for a fresh start.

GVC’s Q1 2020 trading report also offers a glimmer of hope, showing a slight revenue increase year-on-year despite the challenging circumstances. Although exact figures were not provided, group net gaming revenue (NGR) increased 1% from Q1 2019, while online NGR rose by 16%. Although original projections in March suggested group EBITDA would endure a £100m monthly drop, the operator recalculated this figure at £50m. As a result, GVC CEO Kenny Alexander said he’s confident the company can “emerge from this period in a position of strength”, words that most retail bookmakers should take comfort from.

For online sports betting operators, the effects of the pandemic are less severe.

Without the need for land-based betting shops, online operators are able to continue almost as usual. However, the impact of sport cancellation can still be felt in the sector.

As COVID-19 spread across the world, the regulatory bodies of major sporting events began to announce cancellations and postponements. The Tokyo 2020 Olympic and Paralympic Games have been postponed until the summer of 2021, while the UEFA European Football Championships were also set back a year.

Detrimentally, the outbreak also put an end to some of the UK market’s most popular and regular wagering opportunities, such as the English Premier League and all horse and greyhound racing across Britain.

Kindred Group, owner of sports betting operator 32Red, has used the opportunity to increase its focus on esports and virtuals – a t actic adopted by the majority of online bookmakers. However, Neil Banbury, General Manager UK for Kindred, said that, while the company is able to somewhat fill the void left by sports with these alternative

FEATURES

Neil Banbury verticals, there’s still uncertainty surrounding postponed events.

“The biggest uncertainty is how the major governing bodies will determine the end and start of the seasons and how customers will be affected,” Banbury explains. “For example, will the Premier League end up null and void, and how will bookmakers respond to this in terms of paying out bets and voiding? There are so many unknowns that can easily dissolve trust and it’ll be vital for bookmakers to treat customers fairly and show they’re on the same side.”

Bet settlement could be one of the biggest hurdles facing operators post-COVID-19.

Considering current English Premier League leaders Liverpool were 25 points clear when the pandemic hit, customers will not be satisfied with refunds if the season is cancelled completely. Here, fairness is paramount for customer retention, and retaining customers will be more important than ever once sport returns.

Despite all this, Banbury insists the UK sports betting market is strong enough to survive the pandemic and is poised for a swift recovery once sports leagues are given the green light to continue. Kindred even estimated a rise in year-on-year revenue for Q1 2020, forecasting gross revenue to be in the range of £247-252m – similar to GVC this would represent a slight increase on last year’s Q1 figure of £224.4m.

Sadly, the industry will not be without its casualties, and those who were already struggling will see the worst of this crisis, something we’ve already seen in a number of industries outside of gambling. However, as Banbury suggests, those who focus on entertainment and “delivering an

GAMBLINGINSIDER.COM

29

FEATURES

SPORTS BETTING AFTER COVID-19

experience as an enhancement to the sporting event” have a great base to build on with the return of the sporting calendar.

The final factor to be considered during this crisis is the fragile issue of public perception. When the Treasury initially refused to provide financial relief for the gambling industry, Steve Donoughue, an industry analyst, suggested there may be ulterior motives for such a decision.

“What it obviously is,” Donoughue insisted, “is that the government doesn’t like the British gambling industry and is happy to see it destroyed or at least not seen worth of supporting in any way.” Strong words but when we consider the government ban on FOBTs resulted in the loss of thousands of gambling industry jobs in 2019, it isn’t difficult to understand Donoughue’s thinking.

Government action centres around public perception, and this has been a constant cause of grievance for sports betting operators in the UK. However, Donoughue believes that by putting itself on the right side of this crisis, the industry can defy its critics and perhaps even build some affinity with the government in the process. “The trouble with a time of national crisis is that the anti-gambling brigade get to put themselves on the side of the angels while gambling is portrayed as taking advantage of the isolated,” Donoughue adds. “We

need some major donations to the NHS and land based staff volunteering while their shops are closed.”

This is a sentiment clearly mirrored by the BGC which, in response to the Government’s U-turn on holiday rate relief, ensured the industry would “do its absolute upmost to help with the fight against the virus”, words backed by actions when the group organised for profits of the Virtual Grand National to be donated to the NHS Charities Group. The donation, which amounted to £2.6m, even prompted some (faint) praise from the ever-critical Guardian newspaper.

Bet365 CEO and owner Denise Coates also played her part in demonstrating the industry’s generosity. She awarded a £10m grant to the University Hospitals of North Midlands Charity to assist the organisation during the COVID-19 pandemic. The funds will provide support to staff and enhance patient care during the crisis – another example of the industry getting it right.

Despite the harm caused by the current situation, there's light at the end of the tunnel. Government relief will provide the retail sector with the tools it needs to survive, and although there will be closed shops and lost jobs, initial revenue estimates still look stable. Meanwhile, the generous acts of the BGC, Bet365 and many others during this unprecedented

situation have demonstrated the honest good nature of the industry for all to see. For those businesses that can survive these difficult months, they can be assured of positive growth on the other side.

“THE BIGGEST UNCERTAINTY IS HOW THE MAJOR GOVERNING BODIES WILL DETERMINE THE END AND START OF THE SEASONS, AND HOW CUSTOMERS WILL BE AFFECTED. FOR EXAMPLE, WILL THE PREMIER LEAGUE END UP NULL AND VOID, AND HOW WILL BOOKMAKERS RESPOND TO THIS IN TERMS OF PAYING OUT BETS AND VOIDING? THERE ARE SO MANY UNKNOWNS THAT CAN EASILY DISSOLVE TRUST AND IT’LL BE VITAL FOR BOOKMAKERS TO TREAT CUSTOMERS FAIRLY AND SHOW THEY ARE ON THE SAME SIDE”

- Neil Banbury

30

GAMBLINGINSIDER.COM

FEATURES

CYBERSECURITY

HONOUR AMONG THIEVES

By Tim Poole

Cynance CEO Stav Pischits talks Tim Poole through gaming’s biggest cybersecurity threats during the coronavirus pandemic, including where hackers draw the line

Can you detail what Cynance does regarding cybersecurity and how it’s becoming an ever-more important aspect for gaming companies?

The gaming world is a data-driven environment. There’s game data, financial data, the data that makes the engagement very personal for players. Long story short, the more data they have, the better. What we do is help companies protect their data and their assets. Obviously, there are a lot of assets to protect and funnily enough, attackers feel much better about attacking a gaming company than a bank from a moral point of view. When you think about it, both banks and gaming companies have money and large amounts of client data.

But to hack banks can seem less moral, especially during a pandemic.

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GAMBLINGINSIDER.COM

Even among hackers, there is some dignity.

Here you have gaming companies who make a lot of money and people have different opinions about the gaming sector. Many offensive actors find it more legitimate to act against gaming companies. While banks are also very secure, regulation in gaming is not even half as tight as it is in the banking sector. Cynance tries to help these companies with their cybersecurity, especially now as retail customers move to online. We would call ourselves the digital bodyguards of online casinos.

With the coronavirus outbreak so widespread at the moment, what should gaming companies be aware of in terms of hackers exploiting the situation?

Environments are changing. If you previously

had the majority of your company working on site and connecting to the corporate network in one way, you now have a completely different infrastructure. For companies that were established on much more distributed infrastructures, with people working from home and using a lot of contractors, it’ll be much easier to get accustomed to the new circumstances.

But many companies are not there and were really based on premise. So engaging internally and externally, starting something new presents new difficulties.

These difficulties I wouldn't say are much different than what the companies faced before. You still have the basics of cybersecurity, with the crown jewels of the company you need to protect. These crown jewels didn’t really change.

CYBERSECURITY

But what changed is the way you operate and communicate, and the trust you need now to do the same things you did previously. If I worked in the finance department of a gaming company and needed to approve a payment to a major supplier, I would just come to my CFO and ask for approval. But right now, you can’t shout to your colleague, raise a hand or do something easily. You need to do something differently, implementing procedures that were documented in company policy – but that no one really paid attention to before.

Now it comes into force and it can create new challenges. Everything you do the first time, there will be some things not always working as expected.

What kind of ethical hacking campaigns does Cynance carry out to assess client cybersecurity?

It’s good to have procedures and policies in place. If you think you’re okay, there’s nothing as good as testing during a real-life scenario.

You want to mimic the same techniques a hacker could use. The two major campaigns that can bring the most value for companies are, firstly, the external exposure assessments, assessing what malicious individuals can really do from the outside. A company has a certain amount of IP addresses, the company name and some other assets that are publicly available, so it’s useful to see what an adversary can do with this information.

For example, if a large gaming company has four IP addresses and I try to scan these addresses, it may expose what kind of services and technologies they’re using.

So it would be a good test to see what’s out there and what attackers can potentially do, closing as many gaps as possible.

The other campaign deals with phishing.

If you have 500 to 1,000 employees working from home during the pandemic, our phishing campaigns were successful even before this. These emails appeal to users with specific information about the company.

For example, if they use Zoom, I can send them an email to update their Zoom software. Now, with people working from home, think how successful those campaigns can be; people can’t refer to a colleague just sitting two yards away for verification.

There are some codes of ethics between attackers and hackers but we can see cyberattacks are on the rise today. Attackers are exploiting the coronavirus pandemic like any other situation.

Out of the several you’ve already touched on, what is the single biggest challenge currently facing gaming firms when it comes to cybersecurity?

I would say it’s that companies don’t know what they don’t know, so to speak. Sometimes, for gaming companies, time to market is a challenge as they have to be so quick due to fierce competition. Sometimes they neglect security and don’t realise what can happen.

It’s not just that they can be hacked or be a victim of ransomware, there are plenty of other threats. It’s like going to the dentist: it’s much better and much more cost-effective to address a problem before it happens. The aftermath can just take companies completely out of business.

FEATURES

exposure to data breaches, with many more parties accountable for data protection.

Data protection authorities all over the world will gain more strength and their importance will rise, with more and more gaming companies fined for data breaches.

But to finish on something positive, I think this will do good for customers.

Customers will only be able to get services that are much better for them; both the security and experience will be improved, so I am optimistic after all.

How important are GDPR considerations for gaming companies when working with data?

I really cannot stress how important GDPR is to gaming companies. Gaming companies are eventually in the chain a B2C business, which means there is so much personal data to protect.

But the maturity level of these companies is usually not great; there are a lot of quick wins and companies are not aware of the risks here. There is a big difference as well between compliance and security. Good data security starts from the basis of compliance, but it’s not just about ticking the boxes.

What advice would you give to a new gaming operation starting from scratch when it comes to GDPR? Get good engagement from the senior stakeholders first. If it’s only important for people who aren’t decision makers, it’ll never work. You need to understand why GDPR is important as senior managers. So you really need this support from senior managers and to understand things from the top down.

If the support is there, you need to assess the processes. With this in place, you’ll be able to build something really sustainable. The first step is data mining and understanding what companies have and what they want to protect. After that, they can think about the different technologies to implement down the line.

How do you see the gaming sector developing in the cybersecurity field, bearing in mind the effects of the coronavirus pandemic?

Everything happening now is changing how companies and technologies work.

You’re seeing a lot moving from on-premise to off-premise. This trend will be very dominant in the coming years. People will also get more things outsourced – not only for managing human resources but also technology and different processes. More concerns regarding data protection will arise, as so much outsourcing will increase your

Stav Pischits is a cybersecurity risk & data protection architect, researcher and speaker.

Trusted advisor in information security, cyber risk and data protection. He leads information security advisory engagements, providing clients with a full cyber security silhouette by viewing organisations from an adversary’s perspective.

“THERE’S A BIG DIFFERENCE BETWEEN COMPLIANCE AND SECURITY. GOOD DATA SECURITY STARTS FROM THE BASIS OF COMPLIANCE, BUT IT’S NOT JUST ABOUT TICKING THE BOXES”

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TOO MUCH OF A GOOD THING

By Iqbal Johal

With tighter regulations now in place across the European market, Iqbal Johal assesses if this could have a more negative impact on the gambling industry, rather than a positive one

Regulation has been a major focus of the gaming industry for a long time.

There’s been a radical transformation in the UK market in the last decade, but more specifically in recent years.

The Gambling Commission has been especially busy since 2018, with a number of tighter regulations coming into force.

These have included strengthening rules around unfair terms and conditions, strong online identify verification

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requirements, customer interaction and marketing restrictions.

In terms of marketing, the Gambling Commission, working with the Advertising Standards Authority (ASA), has brought in requirements prohibiting adverts that might be associated with children, and no one featured under the age of 25.

The regulatory bodies haven’t been afraid to dish out fines when these rules are flouted. Betway, Football Index, 32Red

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and Coral have all had adverts banned for failing to adhere to the new rules. Operator Betway was also fined £11.6m ($14.5m) by the Gambling Commission in March after being found guilty of a series of failings in relation to its VIP customers.

Then of course, came the biggest regulation, with the commission announcing a ban on consumers being able to use credit cards to gamble in the UK, which came into effect in April.

All these restrictions are to help protect the player, with Gambling Commission stats showing 22% of the 800,000 who use credit cards to gamble classed as problem gamblers. And according to the regulator, more than two million UK adults identify as at least low risk to gambling harms.

While UK regulation gets tighter, two big markets are following the restriction route. Gaming in Sweden was re-regulated in January 2019, but with strict requirements, including gaming verticals being part controlled by the state, and limitations in player stakes and marketing.

Online poker and casino in Germany is excepted to go ahead from July next year, but, like Sweden, with watertight regulations.

These include slots being subject to a €1 ($1.09) per stake limit with no autoplay or jackpots, and a monthly deposit limit which must not exceed €1,000.So is all this regulation helping the industry? Apparently not in Sweden, according to research by affiliate bonus guide, Bonusfinder. It suggests up to 30% of players in Sweden are searching online for unlicensed casinos and being channeled to the black market.

Last December, it was reported by the Swedish Gambling Authority (SGA) that gambling participation dropped to 60%, from 66% a year earlier.

Steffan Jones

With any stake limits having the opposite of the desired effect and players turning to the black market, it’s a worry for GVC’s Director of Regulatory Affairs, Martin Lycka.

“In all honesty, I believe 'one size fits all' stake limits would be counterproductive because there are definitely people out there who can spend much less than some other people, which could bog us down in a perennial debate about where to draw the line in terms of the limit, the amount and how it would be set,” he explains. “Excessive or unreasonable regulation may lead to the operators’ inability to offer attractive products to their customers, who may then decide to start gambling with black market operators. France's market, for example, has grappled with this issue for many years.”

Whomever you speak to in the industry, whether it’s operators, payment providers or suppliers, when you ask them what their biggest challenge is, nine times out of ten regulation would be their answer with no hesitation.

While Lycka believes the challenge operators face comes from the constant addition of new regulations, stronger clarity will prove to be key.

He added: “My view is that gambling operators are used to absorbing near-constant regulatory change and over the years have become very efficient in this regard. The challenge usually stems from a lack of clarity or absence of practical impact posed by new regulations.

“Sensible regulation creates an environment where innovation can thrive.

But regulation that is too prescriptive and not forward-looking can hinder technological developments, ultimately designed to supply customers with an ever more safe and entertaining experience.

“Clarity and collaboration based on a good understanding of the industry and its needs are key. At the same time, the industry needs to appreciate what legislators and other decision-makers seek to achieve and act accordingly.”

Even from a payment’s perspective, regulation still proves to be the biggest challenge for them in the gaming space.

While payments provider PXP Financial deals in other industries, gambling is a vertical that's been involved in since company’s inception. PXP works with some big industry players, such as GVC Holdings and Lottoland, factors that make the payments provider understand gaming, according to board member Kamran Hedjri.

“Our systems have been built by gambling merchants for the gambling merchants, so its in our core and DNA,” says Hedjri. “What we’re doing very well is we’re in multiple geographic locations, so when the gambling

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Kamran Hedjri merchants come to us, we have deep knowledge about multiple geographies and we’ve got the background and the 20 years in our rucksack to know what works and what doesn’t work.”

On that basis, Hedjri would know a thing or two about the challenges PXP faces in the gaming industry. No prizes for guessing the biggest. “On the gaming side, the biggest challenge is definitely with regulations,” he explained. “The whole industry is feeling that, and it’s not so optimistic anymore as it used to be. Having said that, regulation has always been there, but we’ve seen plenty of change throughout our time in gaming.

First there was almost no regulation. Then national regulation, and then national regulation got a little different and had more flavours added to it.

“What we’ve done in the past is actually get on board with all these different phases.

There’s nothing new in terms of that but despite the challenge, there’s also an opportunity because it makes the market more stable and more predictable. If it’s not regulated, it makes things more complicated but the moment it’s regulated, then you know the rules of the games and you can act within this framework and actually help the merchants. Obviously regulation is a strong influencer on any trends we see that could enhance the product. There’s going to be more and more regulation coming in so the entire vertical will be regulated within five years.

“Our expertise, experience and how we can apply different regulatory changes that happens in each country are things we’re very optimistic about, and we can help the industry to actually take the challenge and make an opportunity out of it.”

Hedjri’s relative optimism differs from the views of another payment provider executive. Commercial Development

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REGULATION

Martin Lycka VP of Gambling, Global Enterprise and eCommerce at Worldpay, Steffan Jones says he believes operators trying to comply with ever-changing regulations is taking up a lot of development time, which, in turn, could impact on product enhancement.

Jones reiterated the view that the real challenge for both payment providers and operators is keeping up to date with regulation, which has seen a significant change, particularly in Europe, in his nine years at Worldpay.

“There’s been an increasing amount of regulation in that time, when you think back to nine years ago, often operators might run off one maybe two licences using Malta or Gibraltar for example, which could be used to gain access into most markets in Europe,” he details. “But clearly you see more country regulation and licences coming in today. With that comes a real challenge for operators in the markets they want to be in. Then in order to comply with those local licensing frameworks, they’d have to do a lot in country requirements to conform to that license. From a regulation point of view, just from licencing and then additionally player safety, that’s taking up a lot of development for operators, particularly over the past two or three years, which has made product enhancement a little bit harder.

“Obviously you want to comply with those local licenses, but it’ll be interesting to watch what that does for innovation.”

Jones makes interesting points about operator resources being taken up by

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regulation. The situation in Greece could be a perfect example of that. Government plans, which were submitted to the European Commission in January, proposed online betting license fees for operators would be set at €3m ($3.26m) for seven years, while the gross gaming tax (GGR) rate for operators would be 35%. That represents an extortionate amount compared to other markets, such as the UK where the Gambling Commission charges operators £2,200 (£2,734) to £19,333 annually, a rate that’s vastly higher than Sweden, which is 18%.

With the amount of cost involved, it’s not surprising then that operators are looking outside of Europe, if adhering to regulations in certain markets is hurting product enhancement.

Jones added: “We’re focused on supporting operators, including those looking to expand their global footprint, which is a bit harder within Europe at the moment, considering the cost of player acquisition and complying with all the regulation.

"This means operators are looking for new markets, but Worldpay has got the infrastructure to help with that.

“While there’s a huge desire for both us and the operators to offer some really exciting new technology to players, at the same time they’ve got to comply with industry regulations, so it’s how you get that and how they fit within everyone’s busy roadmap, which is a real challenge we have."

As mentioned, there are several examples of highly regulated markets, particularly in Europe, with the likes of Sweden and Greece, and soon Germany, while the UK is fast going that way.

As the contributors to this have mentioned, regulation is obviously very important in the gaming industry, and mainly exist to protect the player and to allow operators to promote their products fairly. But as we are beginning to see, too much regulation will act as a detriment to the industry, and ultimately drive players away from the regulated market to the black market, where player safety goes out the window. Sensible regulation is key and not overwhelming operators and suppliers who feel the need to exit the jurisdiction.

There needs to be more clarity and collaboration between all the stakeholders, to create an environment where all parties – not just the regulators – feel happy the regulations they have to work with don’t hinder the overall product, and ultimately the players. It won’t be easy under political and public pressure, however.

Let’s hope that further regulation is for the benefit of the gambling industry, and not to its detriment.

“SENSIBLE REGULATION CREATES AN ENVIRONMENT WHERE INNOVATION CAN THRIVE. BUT REGULATION THAT IS TOO PRESCRIPTIVE AND NOT FORWARDLOOKING CAN HINDER TECHNOLOGICAL DEVELOPMENTS, ULTIMATELY DESIGNED TO SUPPLY CUSTOMERS WITH AN EVER MORE SAFE AND ENTERTAINING EXPERIENCE”

- Martin Lycka

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ROUNDTABLE

ROUNDTABLE: WHAT ONLINE CASINO SUPPLIERS CAN OFFER LAND-BASED CASINOS Three online casino suppliers discuss the future of the vertical and what they can offer land-based casinos in these unprecedented times

THE PANEL AB - Andrea Boratto – WorldMatch CEO EM - Edgar Mkrtchyan – BetConstruct Chief Product Officer DS - Dylan Slaney – SG Digital SVP Casino

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What is the main benefit online casino suppliers can offer land-based casinos to give them the edge over their competition?

AB: The possibility of adding an online product to the land-based offering certainly creates interesting synergies.

The casino, through a web channel and a mobile application, can maintain contact with its customers even when they’re away; the advantages are numerous. The customer can keep playing from home or from the hotel room (which often accompanies the presence of the gaming rooms). Operators can also use the virtual casino to promote various types of initiatives that can be enjoyed within the physical casino. In a nutshell: don't lose the player, keep him playing; communicate directly to stimulate him to return to the physical casino.

EM: The best solution online gaming suppliers can offer to land-based casinos are live streaming options from the physical venues to online players and branded live casino halls. With a live stream solution, land-based casinos enable their players to play their favourite casino games with their favourite dealers online anywhere, anytime. With branded live studio solutions, casinos can customise dealer outfits, cards, table design and studio environment. Needless to say, with both solutions, casinos can customise their live casino landing page, UI elements and colours, user interface language and table limits.

The recent events have shown us that the world can change in a matter of days and we need to be ready and flexible enough to switch our business guidelines. Running an online gaming business holds no threat to

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an existing land venue. On the contrary, it gives the owner an opportunity to promote their business to the wider masses, target wider player profiles and reach the people who don’t have the opportunity to visit the physical casino. The decision to go online even with one single table and dealer allows the owner of an online casino to attract thousands of players and maximize revenues of that table.

DS: The beauty of online gaming is that it allows players to access their favourite casino games at a time that’s convenient to them, building on the fantastic offering of a land-based casino. They don’t have to leave the comfort of their home to enjoy a slot game or to spin the roulette wheel, as online casinos are open and available at all hours of the day. The key is making the omni-channel experience as seamless as possible. Once players leave the casino floor, it’s important to have a wallet system in place that lets them access the same funds on their account both in-store and online. The online environment allows casinos to offer a greater number of games too, so while many popular land-based titles have made the transition online, there’s also an opportunity to introduce players to new game concepts that are only available online.

Does an online offering provide an advantage when targeting a younger demographic?

AB: Definitely. In 2002 we collaborated with an Italian land-based casino for the production of free online roulette, which

the casino wanted to use to attract younger players. The younger generations find it very natural to interact socially through mobile devices. In 2002 there were no smartphones or social networks. In fact, I still remember the constraint of a few hundred kbytes for the development of roulette in Java. Young people are intimidated by the formality of typical rituals such as board games. Nobody wants to go to the casino and mock inexperience.

Giving them the opportunity to ‘train’ at home is one of the ways to break down the psychological limits that keep the new generations away from the casinos.

EM: Definitely yes! Generation Z grew up entirely in the digital age and are hungry for digital content and experiences, thus online offerings will grant a bigger advantage to casinos. Plus with online comes a wider choice of offerings such as various types of games, jackpots and bonuses.

DS: We now have a generation of players who have grown up with desktop and mobile devices and are very tech-savvy.

Land-based casinos will always be an important part of the industry, but the online space allows operators to offer their content to a wider audience, including the players in their mid-20s who can be found through these channels. To this end content providers can push the boundaries of innovation more than ever as online gaming affords the option to use new and developing tech, innovative mechanics and persistent game states.

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How do you attract those more used to traditional casino gambling, like boomers, towards an online offering?

AB: The charm and the atmosphere that a land-based casino can offer is difficult to recreate with a web or mobile experience.

In this sense, live casino offers have a very strong advantage where the presence of a real croupier makes the experience more familiar to those coming from the land-based market. Of course, unlike a few years ago, all people, even those not so young, are equipped with a mobile phone with very large multimedia and computing capabilities, and I think that having the possibility to play without necessarily having to physically move to go to the casino is an undeniable advantage for any player, regardless of age.

DS: There are plenty of options available that players will find familiar to their retail experience. For instance, live casino is hugely popular as it allows players to sit at a virtual table and interact with a dealer based in a remote studio, all in real time.

The HD streams of these live dealer games along with the ability to talk directly with the presenter make for an immersive experience.

Nowadays, online casinos have a far greater volume of slot games and feature a variety of game themes and mechanics.

A number of popular land-based titles have been converted for the online market, while new games still feature traditional machine mechanics that will be appealing to players. Traditionally and still today, the land-based market provides the online

“THE RECENT EVENTS HAVE SHOWN US THAT THE WORLD CAN CHANGE IN A MATTER OF DAYS AND WE NEED TO BE READY AND FLEXIBLE ENOUGH TO SWITCH OUR BUSINESS GUIDELINES. RUNNING AN ONLINE GAMING BUSINESS HOLDS NO THREAT TO AN EXISTING LAND VENUE. ON THE CONTRARY, IT GIVES THE OWNER AN OPPORTUNITY TO PROMOTE THEIR BUSINESS TO THE WIDER MASSES, TARGET WIDER PLAYER PROFILES AND REACH THE PEOPLE WHO DON’T HAVE THE OPPORTUNITY TO VISIT THE PHYSICAL CASINO” - Edgar Mkrtchyan

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continues with no guess on how long it will take, so the only way for land-based casinos to continue their business and keep the profit up is to move their operation online by either opening an online casino or using a dedicated studio solution, or both. It’s really very simple and quick.

DS: COVID-19 is having a significant impact on every business right now in our industry and we’re taking the appropriate steps to respond to this unprecedented global crisis. For land-based casinos in particular, it’s more important than ever to have a strong online offering that allows their customer base to access fun and engaging content in a responsible way, especially in a time when they’re looking for relief from a difficult period. Additionally, we will look to support operators in any way we can, especially with regard to new responsible gaming measures they may wish to put in place.

world with a real insight into players’ behaviours and habits. This in turn feeds the key decisions we make around game design and the porting of land-based games. Now more than ever traditional casino players will find games they love and enjoy in online play.

What developments in the online casino space are you most excited about right now?

AB: From a technological point of view, in the medium term, I believe that augmented reality can make an important contribution in terms of innovation of gaming products. From a business point of view, I think the potential offered by the omni-channel is now what we can actually contribute to increase the effectiveness of communication and marketing initiatives to the full benefit of revenues.

DS: There are plenty of innovative concepts in online gaming right now and there are a couple of developments, which have proven to be very popular with online casinos and their players.

Our new Syndicated Jackpots feature first went live with Betsson and allows groups of people to ‘win together’, creating more chances of scooping big prizes within a

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slot game. The feature taps into the rise of social gaming, with the millennial demographic appreciating the ability to interact together when playing their favourite games.

Has the pandemic affected your own operations in any way?

AB: We operate in many parts of the world and perhaps it’s still too early to draw conclusions. On the one hand, the lack of the main events on which to bet has brought many bettors closer to casino games. On the other, the closure of land-based casinos and betting shops has depressed the gaming topic, and for operators with very retail-oriented business models, the decline in revenue is beginning to be felt. The requirement

What are the main challenges facing land-based casinos during the current COVID-19 crisis, and how can online casino suppliers provide resolutions for these?

AB: As anticipated above, the potential breadth and great immediacy of the online offer could compensate, in terms of revenue, for the charm that the gambling hall has for the ‘traditional’ player. The minimum social distance imposed by the virus may not represent a limit for VIP tables or private lounges, but for the crowded slots area of land-based casinos, the web channel could actually represent a more than valid alternative, or even the only solution to avoid having to place the slots in a way that is too dispersed and perhaps even unattractive for the player.

EM: Many land-based casinos have closed their properties in light of the coronavirus pandemic in an effort to reduce the spread of the virus, and some still operate but lack customers. The trajectory of the outbreak

Dylan Slaney

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through these challenging times. We’re sourcing even more content to our OpenSports and OpenGaming portfolios, including additional esports and virtual sports, which are enjoying a surge of interest right now.

Andrea Boratto for everyone to stay at home with their families has also reduced gambling opportunities. In our experience, many people play in quiet moments during office hours or during lunch breaks. For those with wives and children, finding quiet moments of leisure in this period of confinement at home is not always easy.

In March, we recorded mixed trends, some customers lost almost 50% of turnover, others (and they are the majority) increased turnover by around 20-30%.

EM: As many businesses around the world, we are currently taking numerous steps to lower the potential impact of COVID-19 and to protect our staff and their families. We have implemented work from home policies across our worldwide offices, with teams working remotely to ensure our operations continue as usual. None of the recent events have affected our productivity as our services, platform and products operate in the same manner as usual.

DS: First and foremost, we’re protecting the wellbeing of our staff by adopting a remote work policy and procedures including social distancing. We’re also going above and beyond to continue providing our partners with services to keep their customers engaged. Our company is in a strong position due to our diverse portfolio of businesses, our talent and our products in managing

What do you see as the future for online casino gaming and how can land-based casinos utilise this?

EM: Compared to land-based casinos, online casinos are set at lower costs, provide more generous bonuses and are accessible anytime and anywhere, thus online casinos are more appealing to players. Mobile is the future of gambling.

Mobile gambling has been increasing during recent years and will continue to do so as technological advancements enable online casinos to introduce more competitive and appealing mobile products, resulting in the overall expansion of the mobile audience.

Live dealer product is another growing vertical in the gambling industry. Advances in technology, improved streaming and graphics quality and diversity of games offered contributed to the rise of live dealer products, and this trend will continue to grow exponentially. The rising number of online casinos and the popularity of online products are indeed at the cost of land-based casinos. In order to stay in the competition, online casinos must act quickly and leverage the possibilities available in the online gambling industry.

DS: We’ll see even more innovative developments hit the marketplace, as companies strive to bring groundbreaking concepts that evolve the casino experience.

For land-based casinos, there’s an opportunity to tap into online and expand the reach of their brand by diversifying their offering. Players love traditional games, but they’re also hungry to try out new things and the flexibility of the online environment allows suppliers to achieve this. Online game mechanics can be adapted very quickly, which cannot be done with land-based machines. The future of online gaming is very exciting.

Is there something specific your company can offer land-based casinos that they might not be able to get elsewhere?

AB: Our origin is strongly connected to land-based casinos. In some ways we started from there, supporting them from a consulting, technological and marketing point of view. We certainly have a very strong knowledge of the problems and potentiality of land-based casinos, and I

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believe that our growth path is now an advantage in terms of know-how that not all of our competitors can boast.

EM: While the market has analogues for live streaming for casino games and live studios for dedicated tables, what we offer is the latest technology, the best equipment that money can buy and full support on any stage of partnership.

DS: We’re an end-to-end ecosystem that allows land-based casinos to launch a comprehensive online offering through one seamless integration in regulated online gaming markets. It’s packed with more than 2,500 games from both our in-house studios and third-party providers to ensure that players receive next level experiences and win together. In addition, there are numerous add-ons such as jackpots, free-rounds, tournaments and peer-to-peer gaming that keep players coming back for more.

“PLAYERS LOVE TRADITIONAL GAMES, BUT THEY’RE ALSO HUNGRY TO TRY OUT NEW THINGS AND THE FLEXIBILITY OF THE ONLINE ENVIRONMENT ALLOWS SUPPLIERS TO ACHIEVE THIS” - Dylan Slaney

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AUTOMATION

ONWARD WITH AUTOMATION

By Ezra Amacher

Examining the limits of human interaction in a COVID-19 world

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A week before COVID-19 shuttered casinos and sent Americans into lockdown mode, MGM Resorts debuted a new sports wagering kiosk they hoped would eventually transform the way people bet at their sportsbooks. The kiosks, part of BetMGM’s rebranding rollout, allowed

customers to select a wager and print out a ticket all without interacting with another person.

When MGM deployed these machines to its Las Vegas properties in early March, the company unintentionally became an early proponent of social distancing. Why

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engage with other people at casinos when it’s easier and safer not to?

Elisa Richardson, spokeswoman for BetMGM, tells Gambling Insider: “For a lot of people it’s way easier than going up to a sportsbook and having to wait in line, which for some people is really intimidating.

As a female who also bets on sports, I love the kiosk option, the app option.”

The BetMGM kiosks were designed for a pre-COVID-19 world, of course, but they offer a glimpse into a future where automation and artificial intelligence creates an increasingly individualized experience for customers. By way of technological advancement and the collection and application of data, gaming companies are changing the way they attract and retain customers.

Robert Rippee, a professor at the University of Las Vegas and director of the Hospitality Lab at the International Gaming Institute, studies the trends of automation in the gaming and hospitality industries.

Rippee tells GI: “Operators are trying to determine how you can create experiences that are more designed for the individual than for the mass. I think AI and machine learning could lead to some of that. You’re definitely seeing trends in robotics.”

A prime example, according to Rippee, is the implementation of robot bartenders at Marina Bay Sands in Singapore. MGM has also considered bringing these automated beverage systems to Las Vegas, but automation is bound to affect the relationship between humans and technology in gaming much more thoroughly, as Rippee believes the two sides will become mutually dependent on one another.

“Whether or not it would replace a bartender, I don’t think the technology is there today,” Rippee says. “I think bartenders do more than mix drinks. They help provide a form of entertainment; they talk to customers. Robots are not very good at those sorts of things. I’ve had teams in my lab who have looked at innovations where you combine a human with a robot so you pair them rather than replace them and allow the robot to take more mundane tasks and allow the human to do the more creative customer side tasks. By doing that together you increase productivity.”

Many casinos floors are already stacked with electronic table games (ETGs) which may reduce the demand for dealer workforce.

Traditional table games such as blackjack, baccarat, craps and roulette are digitalized, and some ETGs allow for multi-play and multi-game functionality.

Rippee continues: “I think particularly for a novice player who is somewhat

intimidated by games or not really knowledgeable about how to play the game, that kind of takes away some of the intimidation and some of the risk for them. In learning how to play when it’s just a machine, and there’s no embarrassment in front of a machine. Evidently they are accepted by customers in increasing numbers, so I think soon you’re going to walk into a modern integrated resort and you’re going to find ETGs. It’s very likely that for certain parts of their audience that may be a preferable style of play.”

As consumer data becomes more accessible and widespread, operators have a better feel for the preferences of their customers, from restaurant and shopping tendencies to how casino players gamble.

Many new gaming kiosks collect data in real time, giving operators vital information for how to better market to players. By the same token, operators face greater responsibility to diagnose impulsive gamblers.

Mindway AI is a problem gambling solutions company founded by Kim Mouridsen, professor in neuroinformatics at Aarhus University in Denmark.

“I’m a professor in neuroscience so I have a long track record in research — we’ve done brain imaging studies, behavioral studies and so on,” he says. “It was that knowledge that we put into the algorithm that we

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started the development in 2013, and in 2018 we started Mindway and that’s where we really started to see some traction.”

Mindway began working with operators in Europe who provided Mouridsen’s team of researchers and psychologists data from users of their online games. Once Mindway collected enough data from individual customers, its board reviewed the gaming trajectories of players and identified which ones showed signs of addiction.

“What we can do is use artificial intelligence to learn and behave like an expert,” Mouridsen continues. “This is pretty much the same idea as in radiology, which is also a field where we work. It’s now possible to have machines essentially read radiological images and then find signs of tumors or strokes and so on. It’s exactly that idea we’re using at Mindway.”

Since Mindway cannot brain scan every customer, it developed a task that indicates whether the participant shows signs of addiction. A person is shown four decks of cards and told that some are advantageous and others are not. The task is to select some of the deck of cards and over time determine which decks are or aren't profitable.

“What we know from a lot of research is that problem gamblers are attracted to certain bets and non-addicts are attracted to other bets,” he adds. “That means we can

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AUTOMATION

start to see some of the behavior during the game. We can see who are likely to be addicted or become addicted and who can play it without any risk. The way we use this is not only to give a risk score bank to an individual and give them a probability that you might become addicted to gambling, but we can actually identify some types of addiction.”

Mindway can spot whether an individual is attracted to large gains, whether they tend to neglect losses, or if they’re attracted by the speed of a game.

Individuals who pass the addiction criterion are offered GameChanger, a tool that attempts to mitigate impulsive gambling behaviors. The customer is presented two types of images: some related to gambling and others related to healthy social relationships, relaxation and wellbeing. The goal is to finish the game as rapidly as possible by choosing the latter images while abstaining from selecting the gambling ones.

Mouridsen says: “Typically the last resort for an operator to prevent an escalation of problem gambling is to say to the customer, ‘You know we think you should take a break and maybe you shouldn’t be playing for a long time.’ To me that’s sort of a hand stop. I think GameChanger is sort of a selflearning. So instead of saying, ‘This is out of control, we don’t think you should be playing at all,’ before that we offer a tool where if you play this game you can actually train your mind to become less impulsive and also play in a more

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controlled fashion, which means the customer can keep enjoying play and the operator doesn’t lose a customer.”

Regulators are fond of Mindway’s offerings, Mouridsen says, because they provide operators with a third-party solution to problem gambling rather than in-house software, which tends to be more biased.

Mourdisen continues: “The response that we’re getting is that this gives an additional argument when operators are having their interactions with regulators where you can say, ‘This is third party, it’s independent, it’s rooted in science, it’s being kept up to date.’”

Mindway is beginning to receive more interest among US parties, though the economic fallout of COVID-19 may cause operators to be wary to buy into new technologies.

Automation and artificial intelligence will determine the future of gaming and it would be a mistake to ignore that, according to Rippee. He says: “They don’t have the capital to invest or desire to invest right now, but certainly putting intellectual capital behind it is something that everybody can do and should be doing.

In terms of being able to do research, read what’s been done, speak to experts, and try and gather more knowledge on how things could be different is a great exercise for everyone. Obviously it won’t happen overnight so there will be a growth curve.

During that period it would be wise to explore ways to become more efficient, more relevant to new audiences.”

“I THINK BARTENDERS DO MORE THAN MIX DRINKS. THEY HELP PROVIDE A FORM OF ENTERTAINMENT; THEY TALK TO CUSTOMERS. ROBOTS ARE NOT VERY GOOD AT THOSE SORTS OF THINGS" - Robert Rippee

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VIRTUAL SPORTS BETTING

HERE TO STAY

By Iqbal Johal

The suspension of live sports has opened the door for virtual sports to thrive. Gambling Insider takes a look at why it’s the perfect vertical to fill the void and if it can sustain its growth

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The coronavirus outbreak has seen all major sports leagues indefinitely suspended, including the English Premier League, while the European Championships and Olympics have been postponed to next year, which will cause a major hit to operators’ 2020 revenue.

That opens the door to offer other verticals to fill the void. Whether it’s online poker, casino or esports, there are plenty of other verticals to keep players interested.

However, perhaps none more so than virtual sports.

The virtual sports betting product started becoming popular at the start of the last

decade, as consumers became more obsessed with immediacy. Players only have to wait between 90 seconds and three minutes in most instances to have the result of their bet come through, and don’t necessarily need knowledge on the sport to play.

Even before the current spike, there had been an increased rise in virtual betting. In Italy, the share of virtual betting doubled from 1.9% in 2017 to 3.8% in 2019. The CEO of virtual sports supplier Golden Race Martin Wachter told Gambling Insider last year, long before the coronavirus outbreak, that virtual sports have the enormous

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Dario Jurcic potential to exceed sports betting revenue.

In fact, 79% of Golden Race’s Gross Gaming Revenue (GGR) for 2019 came from virtual football.

A factor that goes in virtual sports’ favour is that players are already familiar with the product considering it’s the vertical that replicates sports betting the most; all of your favourite sports, just in virtual form. That puts it in great company when it comes to filling the sports betting void, ahead of the likes of esports, which is a new discipline to many operators.

And the evidence of an increased popularity in virtual sports is there to see at this early stage. According to research from Optimove, using Italy’s lockdown on 9 March as the threshold, compared to the previous month, virtual sports betting increased 30% among 10 leading European operators.

Speaking at April’s Betting in the Face of COVID-19 virtual conference, Wachter reinforced the notion that virtual sports is the vertical to fill the void. He stated that Golden Race has had more than 100 operators sign up with them, which should cross 200 during this period.

It’s not hard to see why. Virtuals sports has proven itself to be a profitable business due to consistent margins and low operating costs, which are likely to continue when sports betting returns, as players become more familiar with virtual sports.

The sentiment that virtual sports is a vertical that operators and suppliers should invest more in is seconded by the chief business officer of Nsoft. The Bosnia and Herzegovina-based supplier focuses on numerous verticals, but one of its specialties is the creation of virtual

games for both retail and online. Despite this, their annual virtual sports turnover growth is 20%. But even before the coronavirus pandemic, Dario Jurcic noted that the supplier needed to invest more in virtual sports with the current predicament surely only reinforcing that fact.

During ICE London in February, Nsoft introduced Virtual Penalty Shootout and Virtual Drag Races to go alongside their existing virtual sports offering. And just to prove how much they believe in the virtual sports vertical, they offered its virtual games for free to its partners during April and May. “There was a clear signal, even before the pandemic, that we need to invest more in virtual sports,” says Jurcic. “Our two new games will allow us to target more specific audiences and assure even higher year-on-year growth.

“Virtual sports will be very beneficial for operators during the pandemic. Companies that don't introduce virtual sports and virtual games, in general, will suffer an even higher decline of business.

“We have been closely monitoring this case for our current customer portfolio, and there’s a significant advantage for customers that recognised this and introduced virtual sports early on.”

However, while Jurcic is adamant during this time those who don’t offer virtual sports will suffer, he didn’t see the vertical being the main one to replace the financial hole left by sports betting.

“I would say that casino and live casino will still hold an edge over virtual sports,” Jurcic added, “but the current situation will surely help promote virtual sports and create a new player base that wouldn't happen otherwise.

“The vertical will grow much faster than anticipated. But let’s not forget esports growing at a tremendous pace as well, so I wouldn’t rule out live sports betting just yet.”

Despite this, Jurcic admitted there are a couple of reasons why virtual sports can stand out as the main vertical to replace sports betting, due to the fast paced-nature of it and it’s natural comparison considering it’s a virtual take on real sports. But where the offering stands out the most compared to the real thing is it’s available 24/7, a factor even live sports betting can’t replicate.

Just like the Jurcic acknowledged, the rise in business with operators looks to replace live sports betting with virtuals, with football as the main product.

“Football is definitely the king of virtual sports,” Jurcic emphasized. “The demand for virtual sports nowadays is astonishing.

We have been contacted by so many companies in the industry that are willing

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to introduce our products, and this is a clear sign that the business is and will continue to grow. The player demand is there, and that’s always the best driver.

However, companies that introduced virtual sports before the pandemic will benefit more as they have built a stable player base by now. The ones that just introduced them will see slower growth but still will benefit a lot. Now is the time to convert traditional sports betting fans to virtual sports.”

While Jurcic made the point that companies who already had a virtual sports product to offer would reap the benefits more, there’s plenty of operators and suppliers jumping on the virtual sports bandwagon.

That applies to sports betting solutions provider ExeFeed, who released its virtual product Simulated Reality Football in April, with its main purpose for operators to help fill the void of sports betting.

The Serbian provider usually specialises in odds calculations and live odds feeds, but saw this period as the chance to capitalise with their Simulated Reality Football. The product will reflect team form and normal match play, with all remaining fixtures scheduled to be played as per their original date and kick-off time. ExeFeed will also offer pre-match odds, live BetBuilder and cashout features to complement the virtual football offering, clearly designed to replicate betting on live sport.

“It's impossible for virtual sports to replace real matches, but we think this kind of real match simulation can create the content that is between sports betting and virtual sports to create a new sports betting space,” explains ExeFeed senior partner and product manager Marco Josipovic. “For operators, content is now most important

Brooks Pierce

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VIRTUAL SPORTS BETTING

Marco Josipovic and this will certainly help to overcome this crisis. We quickly realised the entire industry will be in crisis and that online casinos, poker and so on were not enough for operators who have sport betting at the core of their business.”

As mentioned before, the longer major sport is put on hold, the more familiar consumers will become with virtual sports, which can only add to the continued popularity of the vertical once – hopefully sooner rather than later – things start getting back to some semblance of normality. In terms of attracting a new audience, once given a taste, fans are still likely to keep on engaging with virtual sports, even when live sports returns, a point Josipovic agreed with.

“It is certain virtual sports will be popular right now, and I think the popularity will grow as this crisis situation continues,” Josipovic said. “We received positive feedback from clients we work with and everyone was eagerly anticipating live virtual events, so we expect to attract a lot of new clients. This opens the door to our company.”

In terms of virtual sports being the main vertical to replace sports betting, a case in point is popularity of the Virtual Grand National. The annual UK race was aired on ITV on 4 April, replacing the actual race that was cancelled because of the coronavirus outbreak. The race raised £2.6m ($3.2m) for NHS Charities Together, while reaching a peak viewership of 4.8m, the equivalent of 30% of the national television audience.

While this figure was half of the viewers for the real race in 2019, it was a monumental rise from the 737,000 that tuned into 2019’s virtual race. This further emphasises the fact that while virtual sports might not be able take over from real sport just yet, it’s certainly a more than adequate temporary replacement, according to the COO of the company behind’s the race’s animation.

“In addition to the extensive viewership, information about Inspired’s Virtual Grand

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National was trending second worldwide on Twitter for a period of time,” said Brooks Pierce, Inspired Entertainment’s president and COO. “This is a great example of how virtual sports can plug the gap and bring people together.”

Inspired Entertainment provided the animation for the Virtual Grand National, with the supplier having a portfolio stretching 14 different sports, which are available 24/7 and available in 30 countries.

Virtual sports is a speciality of Inspired, who too will use this current climate as an opportunity to further grow their virtual sports offering, with business showing a significant boost since the suspension of live sports.

Brooks added: “Virtual sports can fill the void of live sports with ultra-realistic content and with attractive betting options that sports wagering fans are used to and can easily adopt.

“It will also be a core offering when live sports are back, as players like the quick action offered by virtual sports with a contest going off every few minutes.

“Our virtual sports business has seen significant growth in the last month, and so have our online and mobile slot games. The appetite for our virtual sports has been strong in Europe for years and the quality and instant gratification our products offer are proven. Content for each of our virtual sports mimics the real-life rules of gameplay and betting options for that particular sport.”

The growth in Inspired’s virtual sports offering is backed by it’s 2019 Q4 results, which according to the supplier, was the verticals strongest ever quarter, contributing to a revenue increase of 116% from 2018, to $66.3m.

The point about virtual sports continuing to grow once live sports does return is also backed by the general manager of gaming at Sportradar, Frank Wenzig. Speaking to Gambling Insider in a recent GI Friday roundtable discussion on virtual sports, he said that virtual sports can enhance engagement with consumers. The fact fans are now seeking new ways to engage with their favourite sports, added with the use of new technology, means virtual sports can be a credible alternative to real sports betting for the long-term.

And from what the various contributors have said, the current period can be used as an opportunity for virtual sports to establish itself, and it will only continue to grow once live sports and sports betting return. That can put the vertical in a great position to become essential to operators.

Make no mistake about it, virtual sports are here to stay.

“THE PLAYER DEMAND IS THERE, AND THAT IS ALWAYS THE BEST DRIVER. HOWEVER, COMPANIES THAT INTRODUCED VIRTUAL SPORTS BEFORE THE PANDEMIC WILL BENEFIT MORE AS THEY HAVE BUILT A STABLE PLAYER BASE BY NOW. THE ONES THAT JUST INTRODUCED THEM WILL SEE SLOWER GROWTH BUT STILL WILL BENEFIT A LOT”

- Dario Jurcic, Nsoft

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TOM WATSON

REFORGING THE RELATIONSHIP

By Tim Poole

Gambling Insider assesses the early progress made by the Betting & Gaming Council as it bids to unify the voice of UK gambling, with even long-time industry critic Tom Watson impressed with the association

It's human nature to complain. In the UK, we’re all prone to a good moan and there are certain staples we can fall back on when our very British instincts to complain kick in. There’s the weather, a guaranteed winner, either “typically British” or “too hot;” there’s public transport, something else we can never fail to bemoan; then there’s the Government, local councils and so on. The reason these topics are so good to vent about, so to speak, is we rarely see any concrete, tangible improvements to reduce our frustrations. And if we do, as the British public absolutely loves to do, we’ll find some aspect of the new improvements to highlight for criticism.

Unfortunately, this concept applies just as heavily to the UK gambling industry, where there’s been plenty of remonstrating over the past few years – both incoming and outgoing. Simultaneously, the public, media and politicians have lambasted the sector to no end, while those in the industry have equally expressed their frustrations with these external pressures.

Internally, a long-standing issue has been the lack of unity within gambling and the

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subsequent lack of a strong, independent voice when facing up to these external forces.

But the good and bad news is finally we may be seeing some concrete, tangible progress in this regard. It’s bad for those who want to complain, of course, but it’s good in every other way imaginable.

Indeed, in November 2019 the Betting and Gaming Council (BGC) was formed, bringing together what were previously the Remote Gambling Association and the Association of British Bookmakers.

Under the stewardship of CEO Michael Dugher and Chair Brigid Simmonds, the BGC has set about representing the gaming industry with a more unified voice, embarking on a mission of bringing the industry’s disparate interests together and presenting a united front to outside stakeholders. In other words, one less thing to complain about.

So far, its progress has been resounding.

Several examples have highlighted a strong and swift response from the Council, providing a more satisfying balance to what was previously a one-sided narrative in the UK. That’s not to say the public mood has even been remotely shifted, nor the UK Government suddenly reminded of the benefits the industry’s taxable revenue brings to the Exchequer.

But the BGC, to date, has reacted authoritatively on numerous issues, being particularly vocal when refuting derogatory reporting of the sector and with its political lobbying.

Just six days after its official formation, the Council announced the introduction of an Anonymous Player Awareness System on gaming machines in betting shops. This system uses a real-time algorithm for gaming terminals and was implemented in UK shops to enforce a cooling-off period after indications of harmful play; staff members are also alerted by the system if certain problem gambling behaviour indicators are

shown. On the cooling-off measures, launched during Responsible Gaming Week (good timing can only enhance good press), then Interim CEO Wes Himes said he was “convinced the approach can help restore public trust.”

Its next notable move, however, was even more effective. During the Third Round of the English FA Cup earlier this football season, kick-offs were moved to one minute past the hour in honour of a mental health campaign. This created a unique set of circumstances whereby a large selection of games were only broadcast on betting sites – as opposed to free-to-air television, which only showed a handful of matches. Cue a media storm in a teacup, with Bet365 in particular receiving severe media scrutiny. National newspapers were particularly outraged that operators were ‘exploiting’ the fact people were promoting mental health awareness to boost their product – a product known to have negative mental health connotations.

But the BGC stepped in, swatting the story like a fly, and the media attention quickly dispersed. The story in itself was a non-story – the streaming rights deal had been negotiated three years prior, so the ‘news’ in question was not news.

In fact, it turned out no bookmaker had exclusivity on these events. Even so, Simmonds came out with a simple statement supported by Bet365, GVC Holdings, Flutter Entertainment, William Hill and Kindred Group. It said: “Our members did not seek exclusivity for the rights to screen FA cup games.

They are therefore happy for IMG to offer the rights to screen these games to the Football Association or another appropriate body, so the games can be viewed for free by the public with immediate effect.” Pre-BGC involvement, these same operators would have been

TOM WATSON

unlikely to come together in this fashion – and the scrutiny would likely have lingered.

In January, the BGC followed this episode with a number of straightforward statements that helped further stem the tide of one-sided reporting within the UK. When Claire Murdoch, National Mental Health Director, sent an open letter to the CEOs of GVC, Flutter William Hill, BetFred and Bet365 criticising the industry’s approach to problem gambling, the Council responded. It outlined exactly what the industry has been doing for years to address the matter, inviting Murdoch to meet with the CEOs in question to discuss her concerns. In the past, high-profile figures have simply been allowed to publicly rant about the gambling industry, broadcasting fabricated and unfounded claims. Here, Murdoch continued that trend, speaking as if operators have no responsible gaming measures in place whatsoever. It’s worth noting she did not write any such open letters since the BGC’s response (before the coronavirus pandemic gripped the nation), nor in fact did she accept the request to meet said CEOs. As a whole, this kind of activity and negative PR has gone on far less since the BGC has begun to set the record straight.

And this was again evident on a smaller but equally important scale during another example in January. A week after the BGC’s response to Murdoch, a report in the Sunday Times claimed betting companies had access to the Learning Records Service database – i.e. that they could target individuals as soon as they turned 18, having all the data required to market to them on hand already. This was quite simply rebutted by the BGC, as the report was based on a set of very weak claims.

Were it any other industry, media outlets would likely think twice before levelling such accusations without sufficient proof. But, while in the past they've gotten away with just that time and again, the betting industry was this time able to stand up to what could only be described as slanderous allegations – thanks to the BGC. Although the coronavirus headlines have naturally deterred mainstream media outlets from their usual bookie-bashing, the BGC’s aid in shifting this narrative has already made a difference.

Where the Council may face a difficult challenge, though, is in the political arena.

In the US, American Gaming Association (AGA) CEO Bill Miller has continuously spoken of the need to turn “public sentiment into political muscle”, with the AGA representing US gaming’s interests skilfully and with a great degree of success. And yet,

on the other side of the Atlantic Ocean, that public sentiment is dearly lacking.

The BGC is attempting to change this. Most recently, it lobbied for the retail gambling sector to be included in the Government’s care package during the COVID-19 pandemic. This lobbying was initially unsuccessful and the BGC responded in kind, writing an open letter to the Chancellor, questioning why gambling was classified as a “financial service” rather than a “leisure activity.”

If the Government, at such a serious time, was looking to score a political victory over the gambling industry while sacrificing its citizens’ jobs en masse, the BGC was sure to at least raise the issue publicly. Cue a U-turn from the Government, which duly included the retail gambling sector in its package, justifying the BGC's work.

With such early results, along with the Virtual Grand National raising £2.6m ($3.2m) for the NHS thanks to a BGC initiative and the voluntary recent ban on TV and radio advertising during the COVID-19 pandemic, it’s been an encouraging opening salvo from the Council, even going as far as impressing Tom Watson – a heavy previous critic of the gambling industry.

Watson is the former Deputy Leader of the Labour Party and strong advocate of gambling regulation in the UK. Yet even he can only stop and praise the BGC, as he tells Gambling Insider: “I’m never complacent about things but I’ve been impressed with the engagement from the BGC. They’re pretty good at being the grown up voice for the sector already.

This is a very good start but only time will tell if the organisation can convince the industry to speak with one voice.”

The politician was equally as puzzled as the BGC about the UK Government’s lack of aid for the industry. The Government’s decision excluded the gambling industry from its plans for a 100% 12-month business rate holiday. In light of the COVID-19 outbreak, the Chancellor of the Exchequer pledged the relief to all companies within the "retail, hospitality or leisure sector".

However, this originally excluded casinos, bingo halls and betting shops, which were classified as financial services.

"It seems harsh to specifically remove community betting shops and bingo halls from the support package announced by the Government," explains Watson. "Very often these venues are staffed by local people at the centre of their communities and they are the ones that will lose out. They’ve [the BGC] already made their case well.

"Why treat nightclubs preferentially to bingo clubs? It doesn’t make sense to me,

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Tom Watson though I readily accept the Government has a lot on its plate and this is not a national priority.”

The BGC can certainly claim at least some of the credit for persuading the Government to rethink its decision. But, moving forward, one key long-term issue lurks on the horizon, even if it has been inevitably delayed by the coronavirus pandemic: online stake limits. William Hill CEO Ulrik Bengtsson and GVC Holdings CEO Kenny Alexander have this year told Gambling Insider they feel there will be a more “sensible and evidence-based approach” from the Government than with past regulation.

Watson, for his part, agrees that following the same pattern as before may not be an appropriate solution.

He says: “I think the BGC must gather the evidence, decide what reforms are needed and make their case. Applying the analogue solutions of the past to digital problems faced currently is obviously not sensible.” But his overall message, a sentiment aided by the BGC’s early progress, is one of palpable encouragement. “Let’s not replay past disasters and focus on the future,” he concludes, with a sense of long-term hope. “Engage, listen, reform; then the relationship can be reforged.”

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BIG QUESTION

EMERGING MARKETSS In an increasingly connected and regulated worldwide gaming industry, which emerging market holds the greatest potential for gaming companies and why?

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BIG QUESTION

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ASIA Iryna Kurochkina, founder & CEO of international marketing agency Digital Chain, shares her thoughts on the promise of Asia as an emerging market

Iryna Kurochkina

If you want to talk about emerging markets, perspectives are important to consider.

Globally, there are currently over a hundred markets with significant potential – the only key difference is when these potential markets will start to bloom. From my perspective, I’d advise we concentrate on the ones to shake up the gaming industry within the next 5-10 years.

Almost any market’s potential can be predicted by simply looking at the region’s respective leaders. Now, there are currently three Asian countries in the top-five market category by gaming revenue: China, with its approximate one billion internet users with over $3.65 billion in revenue; Japan with $1.87 billion; and The Republic of Korea with $6.2 billion. A number of countries in this region are steadily, confidently following this path of glory.

Southeast Asia, by comparison, is particularly interesting in this context.

This region is projected to increase gaming revenues of up to $4bn by 2021. This is merely a continuation of a long-lasting trend of steady annual growth. However, the rigidity that inevitably follows large markets is absent; Southeast Asia is still very dynamic and flexible. The region offers much less in the way of market entry barriers for new operators and service providers compared to countries such as China, for instance.

The outlook for Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam is forecast to be the most promising and exciting. These countries are rapidly developing – each in their own unique way. Some common features to take into account are increasing development and common adoption of technologies; the growing role of the mobile sector; and an increased emphasis on new targeting methods in gaming advertising.

Most importantly, Asia is ahead of most of the world technologically. Consumers there are more likely to try and adopt new technologies like augmented and virtual reality and cloud gaming. Esports has become extremely popular there, too, with a surprisingly big share of female gamers – more than 40% in most countries in which our industry has interest. Presently, Southeast Asia has become a trendsetter in

the world of applied gaming tech; it’s commonly understood in the industry that it’s a major factor for capturing new opportunities and fresh approaches.

Secondly, mobile games in Southeast Asia are growing at a faster pace than PC online games due to a large part of the local population being smartphone users, as well as the availability and widespread nature of free-to-play options. Annual growth of more than 17% in this sector makes Southeast Asian countries the fastest-growing mobile games market in the world. Cloud-based technology, which I have previously mentioned, only adds to this growth.

Last but not least, as the number of casual gamers grows, advertisers are provided more avenues and opportunities to reach them. This is favourable, but there’s a catch: after the flow of opportunity comes ad market saturation; creating effective advertising becomes exponentially challenging. That is a common obstacle faced by all emerging markets at a certain stage of development. We, like our ethos, are constantly looking forward to tackling this issue by using our vast experience and unique approach of utilising emotional targeting, which is based on cultural touch points rather than numerical algorithms. It requires an organisation to steeply immerse itself into the region’s cultural background and psychology, which are exactly what we are looking into at the moment.

The emerging markets of Southeast Asia hold great potential for both operators and service providers such as Digital Chain, and we’re observing the region closely and are ever vigilant to strategically pinpoint the correct time to make our entrance.

“MOST IMPORTANTLY, ASIA IS AHEAD OF MOST OF THE WORLD TECHNOLOGICALLY”

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BIG QUESTION

LATAM Arturo Chaltelt at Play’n GO looks at the latest developments in Latin America and highlights the required steps to make a strong impact in the industry’s fastest-growing emerging market

Arturo Chaltelt

Much has been discussed about the burgeoning US market, but developments south of the border are equally as intriguing. As the regulatory landscape in Latin America continues to change and more regions begin to embrace legislation, the territory is becoming a major target for a wide range of online operators and suppliers this year.

And with good reason, given the sheer size and population of this territory.

With a thriving land-based casino sector, there’s an opportunity to leverage this success into the online environment and bring even more exciting experiences for players across the continent.

The question most senior execs will be pondering right now is how best to approach the LatAm opportunity. From our own experience in multiple regulated jurisdictions across the globe, it’s clear a “one-size-fits-all” model simply won’t suffice. With a population of over 626 million people and different frameworks in place across countries, there are plenty of factors to consider.

Above all else, localisation will be key.

For instance, taking the same approach that works in Europe and translating it for the LatAm market will only be a case of forcing square pegs into round holes.

Some operators have tried this trick before in this part of the world, but quickly realised players favour an experience that’s made local to their tastes, which can be very different to mature markets.

NEED FOR QUALITY MOBILE CONTENT Several countries have begun to embrace more open legislation, making it easier for operators to make an impact. Colombia is a glowing example of a nation that has adopted a robust framework and is experiencing major growth in online engagement. Although the online sector is still in its infancy, latest figures from the country’s regulator Coljuegos shows there is significant progress in this area, with online licensees contributing a 106% increase to COP65.97bn ($19.6m) in revenues for the year ending 31 October 2019.

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Mobile usage is expected to rise in Colombia and across the continent, too, and those with an offering that consists of proven games in this format will hit the ground running. It’s estimated that overall mobile penetration in Latin America will rise to around 73% of the total population, an increase from the 67% that currently exists (according to research from Statista).

From our own studies into the region, we’re seeing an increase in general online services, including banking. The more familiar players become with accessing and consuming entertainment online, it’s sure to have an influence with how they approach their favourite casino games, as we have seen in more mature gaming markets.

FURTHER DEVELOPMENTS AHEAD Over the next couple of years, recent trends suggest online and mobile gaming will only increase in Latin America.

Brazil, the region’s biggest nation in terms of population, is edging ever closer to introducing a framework to allow online betting and gaming. Leading tier-one operators have identified Brazil as a key area of focus, should legislation finally cross the line. While we await the next steps, it’s clear those that have experience in multiple regulated markets will be the frontrunners in capitalising on this exciting opportunity.

Competition is fierce right now as operators jostle for a commanding position and grab the interest of players as markets become more stable. Retaining players will be no easy feat either, given the rising entrants to this attractive marketplace. For casinos, it’s why having an abundance of localised games featuring a wide range of themes and mechanics will be crucial.

While the quality of games will prove to be a defining factor for those looking to differentiate their casino offering, the support that operators receive will be just as important. When it comes to Latin America, an online offering backed with the right content and expertise is sure to make a big splash in this huge emerging territory.

BIG QUESTION

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USA Nick Nally, managing director – Americas, Continent 8, takes stock and reflects on US opportunities and cyber threats

The current hiatus due to the coronavirus pandemic gives us a chance to take stock and position now for the future. In the world of online sports betting and casino, we’ve seen a complete reversal of fortunes in the activity of the two bedfellows over the past few weeks with sports events being cancelled globally, and corresponding betting activity coming to a grinding halt. This has provided an opportunity for online casino and poker as an alternative outlet for some.

But is the USA ready?

Nick Nally

MISSED OPPORTUNITY? It’s almost two years since the repeal of PASPA and there’s been an unprecedented wave of activity in the US to bring online sports betting to the market. In its haste, though, an opportunity may have been missed in some states to bring forward regulations for online casino and poker alongside sports betting regulations. With some very successful models in states such as New Jersey and Pennsylvania, now is possibly the perfect time to consider the introduction of such legislation or to fast-track existing legislation. There’s a window of opportunity for the States and this unfortunate pause may be the right time to act – especially when some industry leaders are predicting the US market will hit $8 billion by 2025.

proportion of the population that can legally bet online. The US market is predicted to grow exponentially over the next few years with an ever-increasing amount of confidential data being held in-state by licensees and operators. Sports betting companies have always been targeted by hackers and cyber criminals, but the advent of huge corporate brands into this space makes it inevitable they’ll become the focus of large-scale attacks and ransomware demands.

There are industry and corporate responsibility concerns regarding the protection of this data and it’s incumbent on all stakeholders to work together to this end.

Within the online gambling market it’s critical that licensees, operators, service providers, data center providers and, most importantly, regulators act together to ensure the integrity of the industry. Now is the time for this sector to put in place the building blocks to grow into the future.

PROTECTING CUSTOMERS’ DATA At the heart of this should be a protection of customers’ data. To this end, regulators need to know where bets are placed, where the data resides and examine whether there are appropriate practices and safeguards in place. While licensees and operators should be ensuring they meet these criteria, it’s CYBERCRIME essential regulators demand rigorous and While the sports betting industry may be taking internationally recognised standards when an unwelcome break, cybercriminals are more it comes to this area. For data centers, there active than ever, with national cybersecurity are a number of security and compliance agencies in Europe and the USA warning of standards that a provider should meet as a threats posed by criminal gangs and state-backed minimum, such as ISO 27001, SSAE 18 SOC 1 hackers. The outbreak of COVID-19 has seen & 2 and PCI DSS. an unprecedented number of attacks against all These, coupled with a range of security types of businesses and organisations, preying products, ensure customers are well prepared on people’s vulnerabilities and fears. The global for what seems like an inevitable onslaught of concentration around this pandemic has shifted attacks now and in the future. In the US market, focus and the movement towards working from we work with a number of partners to ensure home has provided weak points in systems all data centers we offer meet the above criminals are happy to exploit. We have seen a standards. In addition, we provide an notable increase in attacks against the online expanding range of security offerings including gambling industry in the past few days DDoS detection and mitigation and WAF to and weeks. complement the above standards.

In the US, the legalised online sports betting So, while the US overall is certainly one market is still, to a large degree, a nascent of the fastest-growing and biggest-expanding market despite being almost two years old. markets in gaming, fighting cybercrime and The number of states going online is increasing the protection of customer data are at the heart rapidly but there is still only a modest of managing this growth effectively.

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PROBLEM GAMBLING AND COVID-19

A VERY REAL PROBLEM

By Iqbal Johal

With a rise in players gambling online during the coronavirus lockdown, Gambling Insider looks at how big the risks are of an increase in problem gambling

We live in unprecedented times. The coronavirus has wreaked havoc with our daily lives, forcing people worldwide into lockdown mode, limiting their social interaction and to work from home where possible. Industry after industry has been severely hit by the outbreak, which by the time you read this, would have seen nearly 1.5 million cases reported worldwide.

The effect the coronavirus will have on the gambling industry is an interesting topic. On the face of it, you’d expect the industry to suffer with all major sport being suspended or cancelled, having an aggressively detrimental impact on sports betting. While the likes of GVC Holdings, Flutter Entertainment and William Hill announced in March that each operator's EBITDA will be reduced by between £100-150m ($123.9-$185.9m), all three take in revenue in the billions, so those losses can be offset.

Even though all betting shops and casinos have been closed during the outbreak, online has seen a spike in players. According to research by Optimove, which focused on 10 leading European gambling companies, the week after Italy went into lockdown on 9 March, online poker activity increased 43%, with a rise of 255% in first-time poker players, while daily virtual sport users rose 30%.

Considering people are limited in leisure and entertainment activities during lockdown, and considering the accessibility of online gambling with a vast choice of verticals to choose from, an online spike should come as no surprise. But with such a rise in online gambling activity comes the vast warnings around player protection and promotions on responsible gambling. According to the Gambling

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Commission’s 2018/19 annual report, 24 million adults gambled during the period, with 340,000 adults identifying as problem gamblers. The fear in the current climate is this figure could rise the longer the lockdown period carries on, and the more players online gambling attracts.

That’s certainly the feeling among regulatory and association bodies in the UK. In March, the Gambling Commission reinforced to operators that customer protection and responsible marketing is essential during the rise in online gaming.

The Commission’s CEO Neil McArthur made it clear that irresponsible behaviour regarding customer welfare and compliance with licence conditions would be punished.

The Betting and Game Council (GGC) also reinforced this message, announcing in a 10-point action plan, setting out the standards expected of its members during the lockdown period. CEO Michael Dugher said it was vital to ensure safer gambling and protect those vulnerable or at risk.

The pledges include: an increase in safe gambling messages directly to customers,

PROBLEM GAMBLING AND COVID-19

Jack Symons a promotion in deposit limits, action to ensure appropriate and responsible advertising, and ensuring funding for research education and treatment.

From an operator’s point of view, there couldn’t be a more apt time to focus on the responsible gambling message. That’s certainly the case from the director of regulatory affairs at GVC. Martin Lycka is tasked with all things regulation and oversees group-wide licensing efforts. He also understands that it’s the responsibility of operators to look after online customers.

Lycka drew to the fact there has been an industry wide effort in the past few years to step up player protection, including banning the use of credit cards to gamble in the UK, effective from April.

With plenty of tools, be it self-exclusion, session timers, markers of harms and a variety of limits available to players, Lycka was adamant that now was the time to continue those efforts.

He said: “Of course, we at GVC remain absolutely committed to upholding the highest applicable industry standards in terms of consumer protection, in particular responsible gambling.

“Now is not the time to ditch any of that.

If anything, we see it as our responsibility to make sure people can continue enjoying gambling and betting as a form of entertainment in a responsible fashion.

There’s a constant effort to offer our customers the most sustainable and safest online product there is and it’s our intention to carry on doing that during these testing times and beyond.”

What the coronavirus outbreak can be is an opportunity for the industry to focus on responsible gambling more than ever, and

improve its damaged reputation, at least in the eyes of the wider public.

Lycka seconded that sentiment, adding: “I absolutely believe it’s a huge opportunity for the industry as a whole. It gives the online channel an opportunity to provide additional information about responsible gambling and also the likes of sports integrity, consumer protection and KYC checks.

“There’s definitely an onus on the industry to make sure we continue and step up our efforts in this space, and that was going to have to happen regardless of the virus.

“There’s an opportunity to further educate people and provide them with new information and new tools, especially tools that haven’t been exposed to online before.”

But while education and the continuation of promoting the responsible gambling message are key, further regulations could prove to be counterproductive.

An idea from the UK cross-party Gambling Related Harm All Party Parliamentary Group (APPG), was for operators to introduce a daily gambling limit of £50, during the self-isolation period.

However, Lycka believes this one size fits all strategy would only drive players to the black market, because different people have different spending limits.

He added: “If the customer demand can’t be satisfied, there will be a certain number of punters who might be driven away from the regulated market, by being incentivised to gamble with operators that do not have to have any such restrictions.”

Regardless of the operator’s rhetoric on measures in place to deal with the added pressures of player safety, there’s still going to be a very real concern that problem gambling will rise. Jack Symons is one of those who remains concerned about player welfare at this current time. The CEO and Founder of Gamban, a gambling blocking tool that blocks access to online sites and apps, is wary that operators won’t use the rise in online players as an opportunity to take advantage and offer an overload of bonuses that might affect the most vulnerable player.

Speaking as someone who has had problems related to gambling before, Symons is all too aware of how engaging and exciting online gambling can first appear to new players.

He said: “There’s a big risk in problem gambling rising because of isolation, and it’s potentially a breeding ground for negative online habits.

“I hope the way bonus tactics are applied won’t be entirely around the fact people are isolating and therefore deserve a bonus because that would be both opportunistic and parasitic. Also, any tactics that involves

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user acquisition in a predatory way given the circumstances, would be a big no.

“My concern would be perhaps monitoring systems operators use aren’t designed for cases like this. They must recognise that no two problem gamblers are the same and different people can have different problematic relationships with gambling and will continue to do so even more in isolation.

The Gamban CEO envisages that its technology will be used more than ever, depending on how long the period of isolation lasts. But when asked on his thoughts on operators using this period as an opportunity to hammer home the responsible gambling message, Symons thinks they’re better off quietly adhering to their duties.

He said: “Personally, I’ve always preferred for the industry to get on and do what it does: provide entertainment. Where I have a problem is where these organisations come together and tirelessly tell us all the good things they’re doing to help people.

You provide an entertainment product, continue doing that that. Differentiate yourself from your competitors but don’t preach and brag about how socially responsible you are.”

The coronavirus pandemic is a watershed moment for every industry, with the gambling world no different. How it deals with the biggest risk of a rise in problem gambling figures will be remembered for a long time.

On one hand, the right messages are being relayed by the regulator, and operators are saying all the right things.

But on the other hand, there's the risk of immoral practices for customer acquisition and retention being used. Whatever happens, all eyes will be watching.

Martin Lycka

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CHANNELISATION

THE ISSUE OF SWEDISH CHANNELISATION

By Owain Flanders

Owain Flanders looks into the current rate of channelisation in the Swedish market following its re-regulation last year, and assesses how these numbers can be improved moving forward It’s almost expected for any newly re-regulated market to experience a few growing pains.

However, the Swedish market has had more than its fair share. Since its re-regulation on 1st January 2019, the market has created difficulties not only for the Swedish Gambling Authority (SGA), which over the course of the year dished out fines to 18 operators for breaching regulation, but also for the market’s gaming companies, who endured a turbulent year with disappointing revenue figures.

Betsson saw full-year 2019 revenue of SEK 5.16bn ($509.8m) for 2019, a decrease of 5% year-on-year, while net income fell 27% to SEK 787.1m. The operator attributed much of this decline to its development in Sweden,

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which, they say, “continued to be weak”.

Perhaps over-ambitiously, Pontus Lindwall, President and CEO of Betsson AB, predicted a recovery in Q4, a target which he humbly admits they “did not reach”.

Meanwhile, as another operator heavily reliant on its activities in Sweden, Kindred’s results also suffered. The operator saw marginal growth during the year with total revenue of £912.8m ($1.18bn), a year-on-year rise of 1%. Similarly to Lindwall, Kindred Group CEO Henrik Tjärnström attributed this in part to Swedish re-regulation, which he described as creating “headwinds” throughout the year.

While there have been a number of reasons suggested for why the Swedish market was

such a regular feature in negative trading updates, one of the most prominent is the failure of channelisation.

In his last update for 2019, Lindwall explained why low channelisation rates had been such an issue over the year. He said: “We’ve seen declining channelisation, which makes it difficult for the licensed operators who pay 18% gaming tax and it also jeopardises consumer protection. High channelisation contributes to competition on equal terms for the companies in the sector that operate in the Swedish market.”

Gustaf Hoffstedt, Secretary General of Branschföreningen för Onlinespel, the Swedish trade association for online gambling, insisted the SGA’s punishment of license holders for

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CHANNELISATION

“WE HAVE SEEN DECLINING CHANNELISATION, WHICH MAKES IT DIFFICULT FOR THE LICENSED OPERATORS WHO PAY 18% GAMING TAX AND IT ALSO JEOPARDISES CONSUMER PROTECTION. HIGH CHANNELISATION CONTRIBUTES TO COMPETITION ON EQUAL TERMS FOR THE COMPANIES IN THE SECTOR THAT OPERATE IN THE SWEDISH MARKET” - Pontus Lindwall regulation transgressions was unfair, considering the number of unlicensed sites that had managed to avoid punishment. At the time, there were 40 ongoing penalty cases towards license holders in Sweden and none towards unlicensed operators targeting the market - a ratio that Hoffstedt ensured was “not sustainable in a healthy licensing regime”.

However, in a meeting between the SGA and the licensed operators in September 2019, it seemed the Swedish market was meeting its targets for channelisation levels. SGA coordinator Marcus Aronsson announced the market had achieved a channelisation rate of 91% in H1 2019, based on data obtained in coordination between the SGA and Swedish taxation authorities.

Despite this, many operators felt the issue was insufficiently addressed and that the rates had been miscalculated. A month later, the SGA lowered its channelisation estimations for H2 to 85 to 87%, also seeming to backtrack on the original figures for H1.

Recent figures released by an affiliate betting bonus guide also support this suggestion that channelisation rates are not as once thought.

The research, carried out by Bonusfinder.com, suggests up to 30% of players are searching online for ‘unlicensed casinos’ and other black market keywords, and while data released by the SGA suggests 91% of gambling is carried out by licensed operators, Bonusfinder claims this figure is closer to 70%.

In reaction to these contrasting figures, Bonusfinder Managing Director Fintan Costello said: “Instead of misguidedly declaring phase one of the Swedish legislation a success, regulators should be focusing on the rising proportion of players searching for unlicensed brands.”

This also sets a precedent for other burgeoning markets, with Costello warning that German regulators appear to be ignoring the mistakes of Sweden - perhaps due to miscalculated figures.

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Now Sweden is entering its second year of re-regulation; working on channelisation levels is in the interest of both the SGA and those licensees who rely on the market. In increasing traffic towards license holders, the SGA can ensure customers are betting in a safe environment with carefully monitored responsible gambling regulation. Meanwhile, increased traffic flow will increase revenue for those operators who have taken the time to earn a license.

With all this in mind, how can the SGA improve the market’s channelisation?

Tobias Fagerlund, CEO of Global Gaming, is one person who has a lot of advice for the SGA in this regard. Shortly after Sweden’s re-regulation, Global Gaming subsidiary SafeEnt’s operating license was revoked for “serious deficiencies” in business practices – a decision which ultimately ended the operator’s activities in the country.

However, when speaking to Gambling Insider at ICE London 2020, Fagerlund’s criticisms were mainly centred on the SGA’s channelisation efforts, describing it as “vital” for channelisation rates to improve in the country.

In one potential solution to the problem, Fagerlund proposed the idea of greater scrutiny for licenses of gaming suppliers.

He said: “They need to look at licenses and certificates for game providers and actually say to them that if they provide games to Swedish licensed operators, then you cannot also provide them to unlicensed operators – that will cost you something.”

As the SGA is limited in its ability to penalise unlicensed sites, this could offer them a method of restricting the activities of unlicensed operators through the supply chain. Fagerlund raises the interesting point that currently there's nothing to

stop a gaming supplier from partnering with both licensed and unlicensed operators in the Swedish market – something that seems at odds with the SGA’s aims of channelisation.

There have also been interesting points raised about the role of advertising. During a regulatory conference at ICE London 2020, Camilla Rosenberg, Head of the SGA, ensured she was pleased with the reduction of gambling advertisement in Sweden over the past year – outlining plans to further reduce the amount of advertisement moving forward.

However, Yanica Sant, Senior Counsel for the Malta Gaming Authority, had a warning for the regulatory body in regard to implementing a full ban. She said: “A complete ban might do a lot to appease the public, but not for channelisation,” a sentiment mirrored by Lindwall of Betsson, who insisted that advertising can provide a vital way for customers to distinguish between licensed and unlicensed sites.

It’s no secret the SGA has been considering a blanket ban on online gambling advertising since April 2019, similar to that currently found in Italy. The Gaming Market Commission has been tasked with developing measures to limit advertising in the country, and has been asked to deliver a report by October 1, 2020, assessing the benefits or negatives of more intense restrictions.

In developing such a report, it would certainly benefit the body involved to take the warning words of Sant and Lindwall into account.

These are all factors for the SGA to consider moving forward in 2020, but most of all, it’s vital the authorities take a humble approach to the first year of re-regulation and are prepared to make any necessary changes. Ultimately, it’s important to remember the words of Hoffstedt: “We as an industry and the authority have a joint interest here.” Improved channelisation benefits everyone, from licensed operators to their customers and the SGA itself.

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MACAU

THE ROAD TO RECOVERY

By Iqbal Johal

With Macau gaming revenue suffering a yearlong decline, Iqbal Johal looks at the reasons behind the slump and what the future might look like for the region once the coronavirus outbreak passes 64

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When you think of Macau, it’s hard not to associate the Chinese city with the gambling industry. After all, it’s often referred to as the gambling capital of the world or Monte Carlo of the East, and with good reason too.

Although gambling is illegal in mainland China, it's remained very much legal in Macau since China took control in 1999, thus becoming a Special Administrative Region. It’s no secret how much the Macau government relies on gaming. In 2018, the government collected MOP106.78bn ($13.21bn) in gaming taxes, accounting

for almost 80% of its total tax revenue at MOP134.20bn, representing a 14% year-on-year rise. In 2019, that percentage rose to 86% through to November, with gaming contributing MOP104.4bn ($13bn) to Macau’s total tax revenue.

The astonishing figures don’t stop there. In 2018, Macao’s casinos generated MOP302.85bn ($37.53bn), six times more than $6.59bn on the Las Vegas strip. It’s clear Macau is well established as the hub of gambling, and it’s clear how much its government relies on the industry for the

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good of the city. But why is gambling so popular in the region?

According to Jason Ader, CEO of independent sponsor and buyout firm, SpringOwl Asset Management, there’s several reasons for that. The overall draw of the city makes it extremely popular. “Overall, Macau is a spectacular destination,” he says.

“In normal times, you’ve got some of the best hotels and restaurants in the world.

You’re in very close proximity to major population centres throughout Asia, with excellent airport access. It’s just a very exciting place with retail shops too that are the best in Asia. So for those in the region, it’s hard to get much better.

“Of course, there’s gaming too and that’s the primary driver. The government’s main focus over the past couple of years has not been so much on approving gaming expansion, but the non-gaming expansion as there’s a lot of entertainment beyond the casinos. It’s become quite a place, and most the people I know who go there come back surprised at the quality of the amenities beyond gaming; that’s why it has become so popular.”

But despite the strong position gaming in Macau finds itself in, you can’t avoid the fact revenues have been falling, and long before the coronavirus outbreak.

In 2019, Gross Gaming Revenue (GGR) showed a year-on-year decline in eight of the 12 months, including the last three with December down 14% on 2018, to MOP22.84bn ($2.84bn). For the full year, revenue was 3% down on the previous year, to MOP292.46bn ($36.45bn). However, 2020 revenue has really plummeted, mainly down to the coronavirus outbreak, which closed casinos for 15 days in February. Although by late March, at least 37 of the region’s 41 casinos have reopened, but with strict social distancing rules in place and no more than 80% of gaming tables taking bets.

Despite casinos being open for the whole month, March GGR was down 80% on 2019, to MOP5.36bn ($660m), but understandably 69% higher than in February, which showed a 88% decrease on the previous year. In terms of accumulated GGR, Macau casinos were down 60% to MOP30.49bn for Q1 2020.

While there’s a number of factors that can be linked to revenue decrease starting from last year, the most obvious one is the coronavirus crisis. As of early April, there were 41 reported cases in Macau, with travel restrictions coming into place in mid-March, including a 14-day quarantine for anyone arriving in Macau who has travelled outside Hong Kong, Taiwan and mainland China within the previous two weeks. Around the same time, the government announced

it was closing its borders to all non-residents coming in from outside those regions.

For Ader, the March drop in revenue came as no surprise with business not expected to pick up anytime soon.

“There wasn’t any surprise with the 80% drop. There was a moment in the period where it was down 100%,” Ader said.

“Nothing is normal right now with borders being closed and the distance between the tables in the casinos, with dealers all wearing masks. It’s not even close to being back.

“I know the Chief Executive of Macau Ho lat Seng wanted to have things back to normal by May, but I don’t think there’s any real chance of that given the more recent flare up with respect to new outbreaks.

I think the quarantine measurers are probably going to be in place for at least a month.

We have another tough month ahead for gaming Macau.”

What about other contributing factors behind a recent fall in revenue? Ader puts that down to a couple of factors. “There were pretty significant protests in Hong Kong against Carrie Lam and that did have an impact on travel, and although Macau was not participating in the protests, they were ongoing, so I do believe that had an impact,” Ader explains.

“In terms of other reasons, the economy in the region has been quite poor and I would attribute that to the trade dispute that has existed between the US and China.

The US put pretty extraordinary tariffs on China, but the countries seemed to have been moving to a much better place more recently.”

Up until January this year, the US has imposed tariffs on more than $360bn of Chinese goods, with China retaliating with tariffs on more than $110bn of US products. Given the friction that exists between the two countries, and the fact 60% of the Macau market comes from three US operators – MGM China, Wynn Macau, Sands China – the impact this must have had on Macau gaming can’t be underestimated.

There are ways the government, in particular the Chinese government, can counter these losses though. With the closure of casinos worldwide and the suspension of live sport, online gaming has seen a spike, which is something Macau gaming needs to seriously look at, with the sector currently illegal in Macau.

“I really think this is the moment to legalise online gaming if you have a licence in Macau,” Ader adds The Chinese government has been against online gaming and you do have a black market there for people who are playing online, but there shouldn’t have to be.

“Why not allow your licensees in Macau to connect with those customers in mainland

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Jason Ader China. The government would obviously watch it and monitor, regulate and control it but at least you then have the potential to tax and regulate online.

“Allow the mass market and the premium mass market in Macau to play online in the current environment and that loss of tax revenue would be mitigated and I think that’s the key. Gaming exists because it’s an economic driver and source of revenue, so that’s why I think the Chinese government should really consider it. There’s nothing wrong with online gaming if it is controlled.”

Looking ahead, while 2020 looks like being a write off as far as business picking up in Macau’s casinos is concerned, 2021 could well make up for lost time.

Ader said: “I think there is a decent amount of pent up demand for 2021 to be a strong year in gaming. There’s a fair amount of infrastructure improvement that various operators in Macau have under construction in terms of room and entertainment upgrades.

The whole city of Macau is a great product and I think there’s a massive amount of demand to travel.

I think 2021 will be a very big travel year. According to one of our surveys we do with some tour travel agencies who deal with bookings in Macau, 99% of customers surveyed said they want to go to Macau, which would help lead to gaming recovering in Macau.”

It's been a tough year to 18 months for gaming in Macau. Whether its been the coronavirus outbreak, protests in Hong Kong or the US China trade war, the region has been stuck in the middle and suffered either directly or indirectly. However, it didn’t get its name as the gambling capital of the world for nothing, and if, as suggested, the demand for travel and gaming remains, expect the region to thrive again by the time you read Gambling Insider May/June 2021.

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EVENT ORGANISER UPDATE

GOING VIRTUAL As expo and event organisers scramble to salvage global shows sidelined by the coronavirus, Tim Poole speaks to Rory Credland, Event Director at Clarion Gaming, and Mariya Savova, organiser of AffiliateCon Sofia, about making the best of a bad situation With the COVID-19 pandemic spreading ever-more globally this spring, it’s not just the retail gaming and sports betting sectors that are feeling the impact. Trade shows and gaming conferences have become central to the B2B gaming sector in recent years, and social distancing measures mean they can no longer take place in their usual format. Many have been cancelled or postponed, depriving attendees of what have become annual trips to London, Amsterdam, San Diego and other first-class destinations.

Others, however, have taken a different direction by going virtual. Events like ICE North America and AffiliateCon Sofia have now moved online, conducted in a webinar format, meaning those originally set to attend can still share information, gain valuable

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insight and network virtually. Who knows – if virtual events become a success, perhaps some events will retain the format, and this summer will be remembered as the birth of a new genre.

To gauge more on this new breed of conference, Gambling Insider caught up with Rory Credland, Event Director at Clarion Gaming, and Mariya Savova, organiser of AffiliateCon Sofia.

more serious and more global we then realised we wouldn’t be able to host the event. We quickly took the decision to postpone rather than cancel, and we wanted to give ourselves the best chance of that happening by not announcing anything in haste. With everything moth-balled until next year, we’ve now thrown our energies into creating a great Digital equivalent to keep people informed and help them with their business development.

How difficult was the decision to move to a virtual conference and was there ever the possibility of cancelling your event fully?

RC: Like everyone else, we were hoping that we wouldn’t have to postpone, but as soon as everything began to lock down and things got

MS: Organising events is a long process, so of course no one will want to entertain that option. Technically, cancelling is always possible but no one even wants to consider it; it would feel like a failure, even though the circumstances are extraordinary and have nothing to do with event organisers.

EVENT ORGANISER UPDATE

“POSTPONING THE ACTUAL EVENT WAS THE RIGHT THING TO DO AND NOT A DECISION WE MADE LIGHTLY. BUT ONCE WE WERE SURE IT’S NOT SAFE TO DO THE EVENT THIS YEAR, MOVING TO A VIRTUAL CONFERENCE WAS AN EASY DECISION” - Mariya Savova We have been working on AffiliateCon Sofia 2020 since May last year and of course we wanted to host the best and biggest edition of the show; however, given the circumstances, postponing the actual event was the right thing to do and not a decision we made lightly. But once we were sure it’s not safe to do the event this year, moving to a virtual conference was an easy decision.

We like experimenting; we just livestreamed another one of our events, the Global Gaming Awards London, for the first time and doing a virtual conference is another new thing we want to try out.

The bonus is affiliates who were looking forward to the event in Sofia can still get a little taste of what it could have been like and learn from the fantastic speaker line-up.

How difficult was it to completely uproot from a land-based event, and rearrange everything?

RC: Clarion is obviously a very experienced organiser, not only in the gaming space but across multiple industries. We appreciate not everyone can always attend industry events, even in the good times, so we’ve been making online content available before, during and after events for some time. It’s not a major step to produce

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online. It’s a question of cherry-picking the best bits of the ones we've done and blending them so people tuning in get a great experience.

learn about recent trends, just like they would do at a normal conference or exhibition.

This is where virtual conferences come in and solve the problem.

MS: As soon as countries started imposing travel bans, hotels and airlines were prepared that a lot of people and companies will cancel their arrangements, so sorting all this was surprisingly easy, or maybe we were just lucky.

The hardest thing to do was having to break the news to speakers, attending brands and affiliates already registered to attend. We will have to make new arrangements with all of them for next year’s event when life goes back to normal, which is hopefully soon.

Due to the pandemic, are you getting a sense of industry cohesion and a greater willingness to help strengthen it across all disciplines, using virtual conferences as an example?

RC: I think so. People realised pretty quickly that we’re all in this together and we’ll get through it by offering a helping hand rather than going into our shells. That’s the main reason we wanted to put ICE North America Digital on for free. We could've charged to access the content and made it a commercial venture, but we thought it was time to give a bit back.

How does going virtual impact you as a business?

RC: Who knows what the new normal will look like, to be honest. But I would think we will retain digital elements and they may well become a bigger part of the exhibition experience. As such, I think they will be integral rather than ancillary, with interaction taking different forms: in person at the shows and online at their convenience.

MS: Luckily our business doesn't revolve solely around events, so the impact of postponing the real event and running a virtual conference instead is not too bad.

Of course, a virtual event costs a lot less than a physical one. Just taking out travel costs makes a difference. We don’t sell tickets for AffiliateCon Sofia so we won’t be selling them for AffiliateCon Virtually Live either.

How effective do you believe virtual conferences will be?

RC: We recognise that people have got a lot on their plates at their moment running their businesses, so there’s an obvious benefit to being able to dip in and out. Not having to travel frees up people’s time too. But I don’t think you can beat the ability to meet people in person at shows, where that human interaction is an essential part of commerce.

There’s also so much fun to be had at events like ICE North America, and we’re gutted we can’t showcase the wonderful city of New Orleans to people who’ve not been before. The good news is, we’ll be back bigger and better than ever next year.

MS: This year they will be very effective.

Even if the COVID-19 pandemic is under control by summer, a lot of people will think twice before going to a big event with hundreds of people attending. At the same time, however, people will still want to engage with others from their industry and

MS: From what I’ve seen, companies and people from the industry have been very compassionate and understanding. We’re all adjusting and the gaming industry has realised that it’s easier to get through it all if we communicate. Virtual events certainly facilitate the conversation, as they still offer opportunities to network. Also, people get to see industry CEOs and other executives during virtual events sat at home, in front of their laptops, maybe even dressed more casually, which makes people realise that they're not the only ones stuck at home.

Additionally, most speakers tend to say a positive message about how we’ll all be fine in the end, and most days, this is all the industry needs to hear.

“IT’S NOT A MAJOR STEP TO PRODUCE ONLINE. IT’S A QUESTION OF CHERRY-PICKING THE BEST BITS OF THE ONES WE'VE DONE AND BLENDING THEM SO PEOPLE TUNING IN GET A GREAT EXPERIENCE” - Rory Credland

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BETINVEST

ADAPT & THRIVE BetInvest COO Max Dubossarsky speaks from the heart to advise industry peers on how to navigate the difficulties sports betting companies face during the coronavirus pandemic Coronavirus. This is a word familiar to people all around the world. It’s something that’s affected more than 150 countries and over a million people. In fact, half the world in under a stay-home order.

Certainly no one expected the situation to unfold the way it has since just a few weeks ago no one imagined the outbreak would turn into a pandemic. Nor could they have imagined governments scrambling to salvage entire economies,

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citizens under lockdown and all forms of transport essentially suspended. It doesn’t seem possible in the 21st century, but 2020 has proven it is: our lives have changed and it seems no one was prepared.

International sport and the gambling industry have been served a huge shock as well. Practically all championships and tournaments have been put on hold, with Euro 2020 and the Tokyo Olympics

postponed to 2021. Fans will not be able to watch sporting events, place bets or support their favourite teams or athletes from the stands. What’s more, events from outside the world of sports, which are popular in the gambling industry, have also been postponed – the annual Eurovision Song Contest, for example.

So, what advice can we offer, as a sports betting provider with 20 years of market experience?

BETINVEST

STAY AT HOME The world is in a dangerous situation and almost every industry is facing daily losses. We all hear about it in the media and notice it for ourselves, but it’s important to remember your personal safety and that of your colleagues are of the utmost priority. Since isolation measures began, we’ve been working remotely and we begin each day by asking our colleagues how they’re doing. We make sure we’re always available with one another about work and other matters as we realise how important that is now more than ever.

We also speak to our partners from all over the world more regularly.

This is vital at the moment both for business and for a feeling of support.

The gambling industry is the entertainment business. It’s one of few industries that can brighten up these days of isolation for people and at least take their minds off current problems for a while. But this wouldn’t be possible if it weren’t for the comfortable and safe conditions provided for each member of our team. We understand the importance of our work, so we urge all our colleagues in the industry to look after themselves – and we urge employers to provide them with the means to do so.

STAY AHEAD OF THE GAME As mentioned above, coronavirus has had an impact on sports in many countries. Lots of sports events have been postponed; bookmakers can’t include them in their sportsbooks and sports fans can’t place bets on them. But there’s no reason for operators and sports betting providers to despair – this is a time to develop aspects of the business that have not previously been a priority. And for loyal sports betting customers, this is the time to try something new.

Esports, one of the main forms of entertainment for younger generations, has turned into an industry worth billions over the last several years.

With isolation measures in place, and because of how easy it is to hold esports tournaments, esports solutions are now among the most in demand.

We also see that, given recent developments, traditional sports have given way to digital versions.

Sports fans can support the virtual version of their favourite teams or athletes without leaving the house,

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Max Dubossarsky and they can feel all the same excitement when selected, qualified players control the teams in real time on their consoles.

The task providers of sports betting solutions are facing today is to keep an eye out for other options, and offer operators and their players solutions adapted for current demands. So, on top of sportsbooks, esportsbooks can be offered an extended selection of events and markets for eGames such as eFootball, eBasketball, eTennis, Mortal Kombat and more.

CREATIVITY Situational marketing and a sense of humour can save us even in the most distressing times. We want to stress again the gaming industry, and the gambling industry in general, is a form of entertainment that is extremely important in times of crisis. We suggest companies should use their imaginations.

Expand your offer with bets on alternatives to traditional sports.

Learn the key request from the end customers – the players – and try to offer something to interest them in the current climate. Develop new directions and attract new players through immersive and advanced solutions. Recent events have shown how resilient and decisive all of us can be. So don’t be afraid to try – and be prepared to trial solutions.

“THE GAMBLING INDUSTRY IS THE ENTERTAINMENT BUSINESS. IT’S ONE OF FEW INDUSTRIES THAT CAN BRIGHTEN UP THESE DAYS OF ISOLATION AND TAKE THEIR MINDS OFF CURRENT PROBLEMS FOR A WHILE” GAMBLINGINSIDER.COM

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BETGAMES

FACING THE CHALLENGE HEAD ON

By Owain Flanders

BetGames.TV COO Aiste Garneviciene looks into the ramifications of the COVID-19 pandemic, and how service providers must alter their business models in the short to medium term

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The COVID-19 pandemic has forced an urgent and rapid rethink of gambling business models while also highlighted the importance of a tech-savvy digital world.

Today, operators face two opposing trends and challenges. The first is an increase in online traffic due to the closure of retail business and the transfer of customers to online sites. The second is a decline in demand for online services of betting companies due to the cancellation of sporting events around the globe.

Unfortunately, the spread of the virus and quarantine measures has seen a lockdown of almost 40% of the world, while the rest is practicing strict social distancing. There's no doubt that businesses and people are facing enormous challenges and will need to adapt their behaviour to the situation by changing their habits.

This accelerates online growth in all age groups and markets by increasing the business pool, with billions of potential consumers down the line.

BETGAMES

FEATURES

“THE SPREAD OF THE VIRUS AND QUARANTINE MEASURES HAS SEEN A LOCKDOWN OF ALMOST 40% OF THE WORLD, WHILE THE REST IS PRACTICING STRICT SOCIAL DISTANCING. BUSINESSES AND PEOPLE ARE FACING ENORMOUS CHALLENGES AND WILL NEED TO ADAPT THEIR BEHAVIOUR. THIS ACCELERATES ONLINE GROWTH IN ALL AGE GROUPS AND MARKETS BY INCREASING THE BUSINESS POOL, WITH BILLIONS OF POTENTIAL CONSUMERS DOWN THE LINE” - Aiste Garneviciene The sports betting industry is particularly hard-hit and will have to re-invigorate their business models with an injection of variety, innovative games and wide-ranging options for their consumers. All businesses are driven by the user-end experience and this is evident in the gaming sector. It’s no secret consumers want products quicker, better or like their loved games, and as such the industry must adapt at a rapid pace.

BetGames.TV conducted research to explore how a diversified betting portfolio, a wide range of entertaining games using cutting edge technology, smart business realignment and bespoke solutions can help ease the current economic situation and provide much needed stimuli to the marketplace. The research also analysed the behaviour of sports betting players, and the possibility to help partners fill the gap by offering a wide selection of games and betting options, as well as a wide variety of fun, entertaining and structured risk and reward outcome-based games that have the look and feel of a live sports match with odds changing during games.

There's evidence of increased customer activity in the group’s products that might, in part, compensate for the sports betting disruption for a period. Statistics gathered

by BetGames.TV from the last few months have shown that the number of new players has increased by 30%. It’s obvious that this is influenced by the lockdown and cancellation of sports events across the globe. And with everyone confined to their homes, players are looking for alternatives to meet their previous needs and to entertain themselves.

We’re also seeing that adaptable, realigned frameworks are soaring in revenue, traffic and increased new player acquisitions.

This COVID-19 reality shows that companies must tackle new challenges head-on and with creative, innovative and efficient business models, and by doing so, bring a more comprehensive all-round package to the end-user.

In any case, the market position of the company will largely depend on the right strategy in such a situation. There’s only one recommendation: that after the pandemic, the period for recovery will come, and now it’s necessary to lay the foundation for future growth.

I have been involved in the betting industry at a senior level for many years and have seen new market trends, paradigm shifts and innovative products hitting the sector with varying degrees of success, yet now more than ever, we need to realise the significance of an adapt-to-change-to-succeed philosophy.

We have a responsibility as entertainment providers to try to keep a consumer’s life as close to normal as possible, and when the current COVID-19-affected economy changes course in the future, the alternative game sector will grow.

I’m optimistic the crisis will strengthen resolve and provide alternative ways of thinking outside of the box. We have embraced these challenging times, and collated data has revealed that if flexible business solutions are found, then the barrier to success will be nullified to an extent.

The past few months have been tough across the globe, but it’s heartening to know

that there are sections of the industry that are showing huge growth and potential.

The data gathered by BetGames.TV is promising with some of our games seeing as much as a 600%+ growth on bet counts and above 200% growth on online player counts. The report also suggested gamblers were migrating to alternative products.

Three months ago, no-one could have predicted this happening, so there aren't many service providers that would have made provisions or strategies. We're fortunate to have developed a sustainable, live dealer betting games model that can help many online sports betting sites survive.

The gap left in the sports betting sector can be filled by online betting products such as live broadcast games, esports and even traditional casinos and slots features.

The Guardian, in a detailed report citing UK government sources, indicated that many online casino and slots games won’t be beneficial in the long run as many consumers will bet far more than they had been doing in the sports betting sector.

Products such as our range of games will provide much-needed relief to both the service provider and the consumer, given the fact that all the products are similar to outcome based, fixed-odds mechanisms and hence they closely model those of the sports bettor.

The games are live broadcast, which gives off a feeling of taking part in a ‘sports’ activity and players can bet as each game unfolds, giving off a live in-play look and feel.

The current crisis will not last forever, but the enduring nature of change will, and we have to be able to evolve and adapt.

GAMBLINGINSIDER.COM

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EVENT REVIEW Bet 2020 Tim Poole analyses one of the gaming industry’s first fully virtual conferences, which delivered several engaging panels despite teething problems on the technical side

It’s easy to miss the sound of people talking when working from home and social distancing is enforced. Conference calls are always available, true, but it’s hard to replicate the background noise and interaction the daily hustle and bustle of office life brings. In this sense, tuning in to Bet 2020’s first online gaming conference was a real pleasure on 9 April, allowing a day-long stream of analysis and conversation into the home offices of everyone who tuned in.

Far from just alleviating boredom, however, Bet 2020 successfully delivered to its digital audience and in many ways acted as the gaming industry’s guinea pig in showing the potential of this new format. The analysis, at times, was top class, although the event was understandably the victim of a few teething problems and technical difficulties. As part of an experience viewers may have to become acclimatised to during this new era of virtual conferences, the agenda was subject to last-minute changes, and speakers were occasionally cut off due to problems with microphones, internet connections and other external factors.

But when Bet 2020 got going, it certainly offered some gems. Kicking off the day’s analysis was arguably its most powerful speaker – gambling consultant Steve Donoughue. Offering his traditional

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anti-regulatory stance, Donoughue made some daunting forecasts for the UK gambling sector. He began: “We’ll have affordability; that will be the killer. I think we’ll have increased regulation and basically I think we will end up with a limit to what you can lose per month. It’ll be purely arbitrary – it will be say, £500 ($623). If you want to lose more than £500 a month, you will have to go and prove to your gambling operator all about your sanity, your wealth, your source of wealth, probably the size of your feet and what you like to eat on a Tuesday.”

Donoughue also discussed how regulation, in his view, stems partly from a new national health approach towards problem gambling in the UK. He explained: “The idea is the more gambling is restricted, the more you’ll reduce problem gambling. There is absolutely no evidence that this is the case. Problem gamblers will then go to the black market, where there is no obligation to protect them.

There’s an 80% chance gambling turns into the new tobacco – with no advertising, real restraints on marketing. There is a 20% chance of nationalising gambling – one gambling organisation run by the state and that’s it.”

A wide variety of topics were explored thereafter, from geographical market focuses to compliance, crypto-currency, artificial

intelligence and esports, with all the main gaming bases covered. During one of multiple payments talks, Viktoria Soltesz, Founder of P2P Angels, provided practical financial advice for online gaming start-ups, while the event’s penultimate segment focused on marketing in emerging markets. In a talk named ‘Is marketing a poker game?’, Nicc Lewis, Founder and CEO of Expozive Marketing/Marcom Agency Consulting, mused: "When we play games like poker we tend to be analytical – tend to think fast, act fast and be technical. If we apply this same strategy to marketing, we can be successful.

“In the UK, gambling addiction became a focus of politicians and news media,” he continued. “It became a bargaining chip, essentially, and pressure was placed on the Gambling Commission.

Proposed credit card restrictions were suggested and the Gambling Commission reached out to the UK industry before this was put in place, but there was no single voice at that point, so the ban was implemented. One piece of advice I have for emerging markets is make sure the market has a single voice such as with the UK, which now does have a single voice. You can really see the benefits.”

The audience was not left wanting when it came to advice and analysis, contrary to the belief that remote work is usually lacking.

There was plenty of audience interaction too and the event was streamed free on YouTube, allowing easy viewer access. Save for a few glitches, Bet 2020 dared to go where few events had gone before, and in that pioneering spirit, given the global circumstances and the need for industries to adapt, it certainly won’t be the last conference of the virtual kind either.

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SLOT AND PRODUCT REVIEWS

WHAT’S NEW ON THE MARKET? Gambling Insider previews some of the newest products available in the online gaming market

Ring of Odin - Play'n Go

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REALTIME TOURNAMENTS AND LEADERBOARDS – ORYX GAMING Oryx Gaming has introduced realtime tournaments and leaderboards, an advanced feature aimed at pushing player engagement and retention to the next level.

Results are refreshed in real-time, and displayed in-game allowing players to check their current tournament positions with a glance. This real-time element effectively creates a competitive environment where players not only want to win in the game they’re playing but win against each other, in whatever the operator decides the tournament is about.

The plug and play nature of the feature makes it work instantly in all 8000+ games available in Oryx Gaming’s content aggregator platform Oryx HUB, and are available to all operators and their players with no additional integration.

An intuitive and easy to use setup page allows operators to set all tournament parameters with simple clicks and selections, so operators can have

tournaments up and running in a few minutes.

All this allows for active and dynamic usage of tournaments and leaderboards as a powerful marketing tool that helps keep players excited, entertained and engaged while they play the games they love the most.

KNOCKOUT FOOTBALL RUSH - HABANERO With football fans the world over craving the return of sport, Habanero’s new slot Knockout Football Rush offers action-packed football entertainment to all those missing the beautiful game.

With wild symbols, penalty shoot-outs and an immersive match day soundtrack to boot, the title is jam-packed with unexpected thrills, drama and excitement.

The game offers the chance to beat the keeper in style with a net-bulging bonanza of goals leading up to a massive multiplier. An easy-to-use and engaging 3x3 reel configuration grants players the opportunity to win random penalty kicks that pay out up to 60x. On every spin, Wild symbols can appear on row three.

So stay prepared because the game can turn at any second!

With three Wild Symbols multiplying all wins by 2x, six by 4x and 9 by 60x, the chance to net incredible prizes is always just around the corner. Developed with the provider’s advanced gamification features and exhilarating game play to fill the gaping void in live football entertainment, Knockout Football Rush showcases Habanero’s rapid adaptation to changing playing preferences without deviating from classic slot-based thrills.

RING OF ODIN – PLAY’N GO Players can wield the mighty power of the All-Father in the brand new Play’n Go title Ring of Odin. The game is based on the legend of Draupnir, a powerful ring gifted to Odin with the ability to multiply itself into nine separate rings; players will use it to find their fortune. A wonderfully designed slot, Ring of Odin has been created to reflect

SLOT AND PRODUCT REVIEWS

FEATURES

the Norse mythology including symbols directly related to Odin and his legends, adding to that authentic slot feel.

The main feature, the titular Odin’s Ring, is based on the tale of Draupnir being able to multiply itself. The ring multiplies across the reels, triggering re-spins and free spins for players to enjoy. The game has three great features; Odin’s Ring, Draupnir Re-Spins and Foresight Free Spins giving players plenty of exciting game play to keep them entertained during their session.

STREET FIGHTER II: THE WORLD WARRIOR - NETENT Street Fighter II: The World Warrior Slot is one of the most exciting upcoming games in the industry. The original arcade game took the world by storm in 1991, and is arguably the greatest fighting game ever made. NetEnt recreates the action in all its 8-bit glory.

The game incorporates aspects of video games, which throw elements of strategy into the mix. You start by choosing one of eight original Street Fighter II characters, and each fighter offers a unique style of play that affects the game’s volatility and RTP. The main game is presented as a typical Street Fighter fight, including health bars and special moves. Victory in the main fight leads to Free Spins.

Here, four levels of free spins with an increasing multiplier awaits the player, culminating in a fight against the big boss, M. Bison himself. Defeat in the main game launches the Car Smash Bonus Game – another nod to the original.

It’s an action-packed, fast-paced gaming experience, a brilliant take on the Street Fighter franchise, and a fantastic addition

Knockout football rush - Habanero

Street fighter II: The world warrior - Netent to NetEnt’s collection of branded slots. Round one begins on 21 May. Get ready to fight!

SURVIVOR – BIG TIME GAMING New from Big Time Gaming comes Survivor, a game that leverages the excitement of the international television franchise of the same name and offers a unique twist on the wildly popular Megaways mechanic. The game debuts exclusively at Leo Vegas via the Relax Gaming Network before being unleashed on the SG Digital network four weeks later.

Two tribes battle it out on a remote tropical island, and our intrepid contestants populate the reels, but can players outwit, outlast and outplay the game? With BTG’s Megaways random reel-modifier mechanic, the number of winning paylines changes at every spin. And when the action really heats up, you can play on 100,842 Megaways possible paylines.

But Survivor doubles the excitement with the dual reaction mechanic that splits the main reels in two. BTG believe this makes Survivor one of the most sophisticated and exciting games in the online casino space, and pre-launch reviewers appear to agree: the game garnered a whopping 94% rating from Big Win Board.

And with loads of free spins and wild multipliers that can multiply each other, there are some truly astounding wins up for grabs in this volatile and endlessly engaging slot.

LA CASA DE PAPEL CLÁSICO – SKYWIND GROUP This January, the Skywind Group released its new classic style slot game based on the hugely popular Spanish Netflix series Money Heist.

With three reels, three rows and one way to win, the game sees players joined by The Professor, a criminal mastermind planning to pull off the biggest heist in recorded history by printing billions of Euros. La Casa De Papel Clásico has multiple exciting chapters, beginning with the mint and stamp building section, which initially triggers the heist. Players will then enjoy printing their own money before escaping with some potential big wins. In the final stage, players will be able to risk it all and return to the scene of the crime for an even bigger score.

Featuring masked bank robbers on a red and gold backdrop, the striking graphics and slot design truly absorb the player into the Money Heist world.

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CONNECTIONS

FOR SALES TEL: +44 (0) 207 729 6279

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ActiveWins

BBIN

www.activewins.com / T: +44 1613593593 / E: hi@activewins.com ActiveWins affiliate program unifies top online gaming and sportsbook brands. ActiveWins facilitates the highest level of affiliate marketing via a dedicated team of affiliate managers, marketing specialists and campaign analysts, ensuring that every campaign achieves optimal impact.

www.bb-in.com / E: bbin_cs@mail.ur163.com BBIN is the leading online gaming software supplier in Asia.

With 20 years of experience supporting over 500 clients and more than 1,000 professionals around the world, BBIN is one of the most suitable partners in the East. For connecting with industry dynamics, BBIN not only keeps enriching four product categories - Live Casino, Casino Games, BB Luck and Sports, but also upgrading two main services: Game API and White Label Solution.

Agilysys

www.agilysys.com / T: +1 8773696208 / E: sales@agilysys.com Agilysys delivers next-generation solutions that enable property managers to better connect, interact and transact with their guests by streamlining their operations, improving workflow efficiency, increasing guest recruitment and wallet share, and enhancing the overall guest experience.

AGS

www.playAGS.com / T: +1 8667206105 / E: marketing@PlayAGS.com AGS is a full-service designer and manufacturer of gaming products for the casino floor. The company’s roots are in the Class II, tribal gaming market, and it has expanded its product lines to include top performing slot games for the Class III commercial marketplace, as well as live felt table games and mobile gaming.

Ainsworth Game Technology

www.agtslots.com / T: +1 7029543000 / E: Sales@agtslots.com For more than half a century the Ainsworth name has been synonymous with the gaming industry. With global vision and exceptional leadership, Ainsworth provides the global gaming market with its outstanding range of gaming technology and game combination software.

bet365

www.bet365.com / T: +44 8000288365 / E: support-eng@customerservices365.com bet365 is one of the world’s largest online gambling groups with over forty-five million customers worldwide. bet365 offers a Sports-Betting, In-Play, Casino, Live Casino, Poker, Bingo and Games experience that is unrivalled. bet365 products and the bet365 affiliate programme continues to be enhanced and have consistently won multiple top industry publication awards during the last 10 years.

BetConstruct

www.betconstruct.com / T: +44 2037099010 / E: sales@betconstruct.com / marketing@betconstruct.com BetConstruct is a developer and provider of online and land-based gaming solutions with development, sales and service centres in 15 countries. BetConstruct’s offerings include an extensive range of products and services, including sportsbook, sports data solutions, retail solutions, RNG and live dealer casino, VR casino, poker, skill games, fantasy sports, social platform, Spring BME and more.

BetGames.TV Aristocrat

www.aristocrat-us.com / T: +1 7022701000 / E: contact@aristocrat-inc.com Aristocrat Technologies Inc. is a subsidiary of Aristocrat Leisure Limited, a global provider of land-based and online gaming solutions, offering electronic gaming machines to casino management systems. The company is licensed by more than 200 regulators, and its products and services are available in more than 90 countries.

www.betgames.tv / T: +370 655 50 015 / E: sales@betgames.tv BetGames.TV is a unique, innovative and pioneering live dealer betting games supplier. The company offers fixed odds betting products combined with popular lotteries and table games to industry’s leading operators and platforms.

Betgenius Aruze Gaming

www.aruzegaming.com / T: +1 7023613166 / E: sales@aruze-gaming.com Aruze Gaming is a global entertainment company that designs, develops and manufactures slot machines and gaming devices for the casino market. It aims to create fun and entertaining experiences, to build trust and maintain global relationships and to be socially responsible by supporting and encouraging responsible gaming initiatives.

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www.betgenius.com / T: +44 (0)20 7851 4060 / E: sales@betologic.com Founded in 2000, Betgenius is the leading provider of sophisticated data-driven software to the regulated sports betting sector. Betgenius delivers robust, cutting-edge technology that helps international bookmakers and lottery operators maximise performance across sportsbook platforms, trading and marketing.

FOR SALES EMAIL: SALES@GAMBLINGINSIDER.COM

Betradar

www.betradar.com / T: +41 715177200 / E: sales@betradar.com Betradar is a brand of Sportradar, the world’s leading supplier of sports and betting-related data. More than 300 bookmaker clients, including over 30 state lotteries in more than 60 countries across five continents, rely on Betradar’s quality services and solutions. The product range of betting solutions consists of event creation, odds suggestions, trading tools, resulting, live scouting and live odds services.

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Comtrade Gaming

www.comtradegaming.com / T: +386 81605200 / F: +386 81605050 / E: gaming@comtrade.com Comtrade Gaming is an independent software supplier to the gaming industry that delivers open gaming platforms, casino management systems and professional services to both online and land-based sectors.

Comtrade Gaming enables the industry to innovate its business model at vendor, operator and regulator levels.

Betsoft Gaming

Connective Games www.betsoft.com / T: +356 2122 4481 / E: sales@betsoft.com www.connectivegames.com / T: +7 3822330775 / Betsoft Gaming develops innovative casino games for desktop and E: info@connectivegames.com mobile. Its portfolio of more than 190 RNG titles reaches players through partnerships with many of the online gaming industry’s leading operators. Connective Games develop state-of-the-art, fully-customised and white label software solutions to operators via their flexible, sophisticated gaming platform. Connective Games' portfolio of online and mobile gaming products include an online casino, online poker, and a host of popular games.

BMM Testlabs

www.bmm.com / T: +1 7024072420 / E: wendy.anderson@bmm.com BMM Testlabs is the longest established and most experienced private independent gaming certification lab in the world, providing professional technical and regulatory compliance services.

D DataSpade Inc.

BtoBet

www.btobet.com / T: +356 27135974 / E: sales@btobet.com BtoBet is a pioneer in new technologies for the betting industry.

BtoBet’s platform is unique, customisable, advanced, secure, reliable, flexible and delivers unprecedented capabilities to drive sportsbook and online gaming business.

C Casino Technology

www.casino-technology.com / T: +359 28129305 / E: sales@casino-technology.com Casino Technology is a recognized gaming manufacturer, present in many global markets. With 20 years of history, the company offers a successful product series, covering land-based and online gaming industries. The company has offices and distributors in more than 15 countries and installations in more than 50 jurisdictions.

www.dataspade.com / T: +1 2313846177 / E: info@dataspade.com DataSpade is an industry-specific software and analytics company positioned to help gaming properties yield profitable results from their player’s club database. DataSpade has created a company that begins its mission at the core of all gaming – the data.

Degree 53

www.degree53.com / T: +44 1613594000 / E: info@degree53.com Degree 53 is an award-winning digital agency, providing bespoke, innovative solutions to the gambling industry. Degree 53 holds the Remote Gambling Software licence from the UKGC and has worked on projects, including sportsbook development, gambling apps, data feed management and system integrations.

Digitain LLC

www.digitain.com / T: +44 1613594000 / E: suren.khachatryan@digitain.com Digitain is a sports betting and casino platform provider for land-based and online operators. Our API integration delivers turnkey or white-label solutions for sportsbook, casino, live dealer and virtual sports.

Colossus Bets

www.corporate.colossusbets.com / T: +44 (0)20 3405 8420 / E: b2b@colossusbets.com Colossus Bets is a B2C and B2B provider of the world’s biggest sports jackpots with lottery-size, multi-million pound prize guarantees. The company pioneered cash-out and holds a series of patents on the technology across the globe. The product portfolio includes FreePlay, a seamless free-to-play marketing extension to its jackpots, as well as award-winning Syndicates, a unique ‘crowdbetting’ platform.

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FOR SALES TEL: +44 (0) 207 729 6279

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Gaming Laboratories International (GLI®)

EGT

www.egt-bg.com/en/home / T: +359 28902400 / E: sales@egt-bg.com Euro Games Technology is a worldwide gaming manufacturer with headquarters in Bulgaria and 20 representative offices in Europe, Africa, Asia and America. EGT’s portfolio includes video slot games, gaming machines, multiplayer solutions, interactive games and casino management systems.

www.gaminglabs.com / T: +1 7329423999 / F: +1 7329420043 Gaming Laboratories International LLC delivers quality land-based, lottery and online gaming testing and assessment services. GLI’s laboratory locations are found on six continents, and the company holds US and international accreditations for compliance with ISO/ IEC 17025, 17020 and 17065 standards for technical competence in the gaming, wagering and lottery industries.

Gaming Partners International

EnergyCasino

www.energycasino.com / T: +356 77200290 / E: mailto:media@energycasino.com EnergyCasino offers almost 400 slots from GreenTube, NetEnt, Wazdan, Quickfire and Oryx, plus poker and live dealer casino games. EnergyCasino will soon offer content from its new sportsbook EnergyBet, covering all major global sporting events.

Everi Holdings Inc.

www.everi.com / T: +1 7028553000 / E: info@everi.com Everi Holdings Inc. is the casino industry’s only single source provider of robust payments solutions, vital intelligence offerings and engaging gaming machines that power the casino floor. Everi’s mission is to be a transformative force to casino operations by delivering reliable protection and security.

www.gpigaming.com / T: +1 7023842425 / E: mmaciel@gpigaming.com GPI manufactures and supplies table game equipment to licensed casinos worldwide, providing chips, plaques and jetons, gaming furniture, layouts, playing cards, dice, and table accessories. GPI also offers RFID currency, readers and antennas, and RFID solutions.

Ganapati PLC

www.ganapati.com / E: info@ganapati.com Ganapati produces high-quality, entertainment-focused casino content for the online gaming industry. Ganapati supplies the online gaming market with titles that combine the best Japanese game logic and design with a unique entertainment element.

With offices in Tokyo, London, Malta, Estonia and Taiwan, Ganapati games utilise the provider’s contacts across the entertainment industry and feature licensed IP from internationally recognised studios along with its own in-house studios.

Greentube Internet Entertainment Solutions GmbH EveryMatrix

www.everymatrix.com / T: +40 371042222 / E: info@everymatrix.com EveryMatrix delivers a modular and API driven product suite with a market-leading, one-stop casino content aggregator and integration platform, a cross-product bonusing engine, a fully managed sportsbook and sport data services, a stand-alone payment processing product, and a multi-brand affiliate/agent management system.

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G GameArt

www.gameart.net / T: +356 99313566 / E: sales@gameart.net GameArt is an independent online casino software provider and developer, providing innovative games and cutting-edge solutions dedicated to online and land-based gaming operators. GameArt’s core business is the development of high quality slot games and gaming contents, not only for online operators but also for VLT and the land-based casino industry in the regulated markets.

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www.greentube.com / E: sales@greentube.com Greentube Internet Entertainment Solutions, the global interactive unit of NOVOMATIC is a leading developer and supplier of iGaming solutions. Greentube is a wholly-owned subsidiary of the NOVOMATIC Group, one of the biggest producers and operators of gaming technologies and one of the largest integrated gaming companies in the world. Greentube’s industry leading Omni-channel technology allows the convergence of online, mobile and land-based games.

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Habanero

www.habanerosystems.com / E: sales@habanerosystems.com Habanero is a supplier of quality slots and table games to the online casino industry with an experienced management team and a host of skilled designers, developers, and mathematicians. Hosted on the company's own platform and made available at a competitive rate, their games are proven revenue generators tailored to the widest possible variety of devices, allowing operators in multiple territories to maximise their incomes.

FOR SALES EMAIL: SALES@GAMBLINGINSIDER.COM

Helio Gaming

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INTRALOT

www.LottoHero.com / T: +356 20925800 / E: info@lottohero.com Helio Gaming provides a lottery engine and custom-made games, including Lotto Hero. They integrate existing gaming platforms, CRM, campaign management, affiliate management, and other marketing automation tools. Their offering covers operator-branded RNG lottery games and those based on international lotteries. This delivers a new player-boosting vertical and multi-vertical cross-sell opportunities.

www.intralot.com / T: +30 2106156000 / E: info@intralot.com INTRALOT, a public listed company established in 1992, is a leading gaming solutions supplier and operator active in 52 regulated jurisdictions around the world. With €1.10 billion turnover and a global workforce of over 5,000 employees, INTRALOT is an innovation-driven corporation focusing its product development on the customer experience. The company is uniquely positioned to offer to lottery and gaming organizations across geographies with market-tested solutions and retail operational expertise.

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IGT

JCM Global

www.igt.com / T: + 1 7026697777 / E: info@igt.com IGT enables players to experience their favorite games across all channels and regulated segments, from gaming machines and lotteries to interactive and social gaming.

Leveraging a wealth of content, substantial investment in innovation, in-depth customer intelligence, operational expertise and leading-edge technology, IGT's gaming solutions anticipate the demands of consumers wherever they decide to play.

www.jcmglobal.com / T: +1 7026510000 / E: Jason.Cribbs@jcmglobal.com JCM Global is the gaming industry’s leading transaction technologies supplier. Its extensive line of products set global standards, with ground-breaking peripheral transaction components and innovate digital media hardware.

K Kambi

Interblock

www.interblockgaming.com / E: info@interblockgaming.com Interblock is a developer and supplier of fully and semi-automated luxury electronic table gaming products.

Its multi-player gaming devices set industry standards and provide the ultimate in luxury interactive entertainment experiences. The Interblock brand is globally recognised for gaming solutions and technical support in more than 166 jurisdictions.

www.kambi.com / T: +356 21315514 / E: sales@kambi.com Kambi provides fully-hosted sports betting solutions through its innovative software platform. The Kambi sportsbook is available in a range of currencies and languages, and covers 65 sports and over 70,000 sporting events annually. Kambi's services encompass a broad offering, from front-end user interface, through to odds compiling, customer intelligence and risk management, built on an in-house developed software platform.

Konami Gaming, Inc.

www.konamigaming.com / E: sales@konamigaming.com Konami is a complete gaming manufacturer that develops, designs, manufactures, distributes, sells and services slot machines and its award-winning casino management system SYNKROS.

Intertops

www.Intertops.eu / E: Affiliate@intertops.eu Intertops accepted the world’s first ever online sports bet and is still one of the world’s largest sites for sports betting, casino, poker and games. The website offers over 4,000 daily wagers for fans of every type of sport and boasts satisfied customers in over 180 countries.

L LeoVegas Affiliates

leovegasaffiliates.com / T: +356 27780258 / E: affiliate@leovegas.com LeoVegas Affiliates is the affiliate program for LeoVegas, one of the highest converting online casinos worldwide. LeoVegas partners can earn commission up to 35%, and are offered uniquely tailored commission plans. LeoVegas also provides a full range of marketing creative and round-the-clock support from account managers.

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CONNECTIONS

FOR SALES TEL: +44 (0) 207 729 6279

Lightning Box

www.lightningboxgames.com / E: info@lightningboxgames.com Lightning Box Games exists to make the most exciting gaming entertainment for players via video slots. It has become a major global supplier of video slot content to the online RMG, land-based and social casino verticals.

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NOVOMATIC

www.novomatic.com / T: +43 2252 606 0 / E: communications@novomatic.com The NOVOMATIC Group is one of the biggest international producers and operators of gaming technologies and employs nearly 30,000 staff worldwide. The product range includes land-based gaming products and services, management systems and cash management, online/mobile and social gaming solutions as well as sports betting solutions.

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Merkur Gaming

www.merkur-gaming.com / T: +49 574127369301 / E: sales@merkur-gaming.com Merkur Gaming, part of Germany’s Gauselmann Group, is the gaming innovator that delivers on game development, high quality manufacturing, cutting edge technology and its overwhelming commitment to top line sales and service.

Microgaming

Ortiz Gaming

www.ortizgaming.com / T: +1 5612415368 Ortiz Gaming provides multi-platform games through land-based, social, online and mobile platforms, always bringing innovation and new experiences for players.

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www.microgaming.co.uk / T: +44 1624647777 / E: sales@microgaming.co.uk Microgaming is the world's largest provider of online gaming software with innovative and reliable solutions to over 160 paysafecard market-leading sites worldwide. They offer unrivalled solutions www.paysafecard.com/business / T: +43 17208380 / for casino, poker, bingo, live, progressives and network gaming E: success@paysafecard.com across online, land-based and mobile platforms.

Paysafecard, part of Paysafe Group PLC, is the global leader in prepaid online payment solutions. Available in 42 countries at over 500,000 sales outlets, it can be used in thousands of online shops worldwide.

By using a paysafecard PIN, customers can pay quickly, simply and safely online as if paying in cash.

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NetEnt AB

www.netent.com / E: sales@netent.com NetEnt AB is a digital entertainment company, providing premium gaming solutions to the world’s most successful online casino operators.

Since its inception in 1996, NetEnt has been a true pioneer in driving the market with thrilling games powered by a cutting-edge platform.

Newgioco Group

www.newgiocogroup.com / T: +39 391 3064134 / E: ceo@newgiocogroup.com Newgioco Group is a leisure betting technology company providing regulated online and offline gaming and wagering through licensed subsidiaries throughout Italy. Newgioco Group, Inc., together with its wholly owned subsidiaries, is a fully licensed and integrated online and land-based gaming operator.

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Play'n GO

www.playngo.com / T: +46 470788851 / E: info@playngo.com Play'n GO are developers of bespoke, comprehensive solutions for the online gaming industry. Utilising the latest cutting-edge technology, Play'n GO have developed products including their innovative independent platform, a range of quality casino games and mobile and tablet gaming solutions.

Playtech

www.playtech.com / T: +44 2075349650 / E: sales@playtech.com Playtech offers cutting-edge, value-added solutions to the industry's leading operators. Playtech develops unified software platforms and content for the online, mobile and land-based gaming industry. It provides licensees with the tools to maximise cross-selling, player loyalty and yield through powerful management interface the IMS.

FOR SALES EMAIL: SALES@GAMBLINGINSIDER.COM

Prestige Seating Technology

www.pstseating.com / T: +44 1914566209 / E: sales@pstseating.com Prestige Seating Technology are providers of maximum-comfort casino furniture in Europe, designing fully customised chairs and tables for high-profile casinos and entertainment establishments worldwide.

R Rymax Marketing Services

www.rymaxinc.com / T: +1 8667962911 / E: info@rymaxinc.com Rymax provides unique comprehensive marketing services, specialising in tailored rewards and incentive programmes for companies in the gaming industry and other markets. Rymax has a wealth of market knowledge and industry expertise, over 300 brands and 10,000+ reward products, putting them at the forefront of loyalty marketing.

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CONNECTIONS

T Tal Ron, Drihem & Co.

www.rd-law.co.il / T: +972 522437484 / E: TAL@RD-LAW.CO.IL The award-winning gaming and financial entertainment law firm, recommended by all leading FX, Binary and online gaming platforms, Tal Ron, Drihem and Co., founded by lawyer Tal Itzhak Ron, offers innovative solutions for company formation, regulation, banking and compliance, along with full legal services for operators, platforms, brokers and affiliates.

TCSJOHNHUXLEY

www.tcsjohnhuxley.com / T: +44 1782260220 / E: info@tcsjohnhuxley.com TCSJOHNHUXLEY is a manufacturer and supplier of end-to-end live gaming solutions and services. With an emphasis on leading-edge technology, their extensive portfolio of products are utilised by land-based casino operators globally, trusted for their quality and excellent after-sales service and support.

Trustly Group AB SBTech

www.sbtech.com / E: sales@sbtech.com SBTech is a provider of interactive sports betting solutions and services.

The complete offering includes an innovative, dynamic and customisable suite of turnkey and fully managed solutions, specifically designed for top gaming operators, existing bookmakers and land-based networks.

Scientific Games

www.scientificgames.com / T: +1 (702) 897 7150 / Scientific Games offers dynamic games, systems and services for Casino, lottery, online gaming and sports betting. It also offers the gaming industry's broadest and most integrated portfolio of game content, advanced systems, cutting-edge platforms and professional services. Committed to responsible gaming, Scientific Games delivers what customer and players value most: trusted security, engaging entertainment content, operating efficiencies and innovative technology.

Sirplay

T: +356 2713 9252 / +356 35505702 / Whatsapp: +356 79088806 / E: info@sirplay.com / Skype: sirplay.com Sirplay is an international software house with over ten years of experience developing online gambling solutions. The company supplies bookmakers, lotteries and betting organisations in regulated markets for online and land-based gaming operators.

www.trustly.com / T: +46 850521120 / E: sales@trustly.com Trustly is one of the best-known brands in the online gambling industry, with a payment service developed by players, for players.

Its core product supports instant pay-ins and pay-outs directly from players' bank accounts with the highest available bank-level security.

U UltraPlay

www.ultraplay.co / E: sales@ultraplay.net UltraPlay is a modern technological company, with the core ambition to offer an innovative approach to the online gaming industry, by providing advanced betting solutions, focused on eSports, sports betting, casino, live betting and bitcoin solutions. UltraPlay is a trusted partner for delivering superior sports softwareand odds products to its customers.

Y Yggrdasil Gaming

www.yggdrasilgaming.com / E: sales@yggdrasilgaming.com Yggdrasil Gaming is a provider of superior online and mobile casino games. It has emerged as one of the industry’s most respected and acclaimed suppliers, providing games for some of the world’s biggest operators. The company is headquartered in Malta, with a development office in Krakow, Poland, as well as a regional office in Gibraltar.

Synergy Blue

www.synergyblue.us / T: x / E: bdolan@synergyblue.us Synergy Blue is a leading provider of entertainment gaming solutions that develops, licenses, produces and manufactures arcade-style, skill-based-games and platforms.

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FINAL On the road WORD never travelled David Patent, CEO of VizExplorer, explains why the US market is in for a long recovery

How does the COVID-19 crisis compare to previous crises that have inflicted US casinos and the gaming market?

Nobody’s ever seen anything like this before. We’ve had hurricanes that have closed properties. Katrina was probably the biggest one. It took out the Biloxi market and much of the New Orleans market. There have been one-offs.

Sometimes fires. Superstorm Sandy took out Atlantic City for a pretty extended period. There have been some strikes here and there, but to have the entire domestic and pretty much global casino industry just come to a screeching halt, nobody has ever seen that before. What we’ve found is that people are awaiting guidance. They don’t really know when they’re going to be allowed to reopen. You’re awaiting the state to give an okay or potentially a city, but in most cases, a state jurisdiction is going to say, “Okay you can reopen”.

But under what rules?

“IF I HAD TO BET I WOULD BE VERY SURPRISED IF WE’RE ‘BACK TO NORMAL’ IN THIS CALENDAR YEAR”

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What’s the outlook for casinos once they are allowed to reopen?

Maybe not bringing back live entertainment for some period of time or only selling a certain number of tickets.

Keeping every other slot machine shut down, no more than three players per table. I think that’s a good way to ease people back in. And then over time you’ll see those rules start to get loosened.

But again there’s just no way to know what that timeline looks like. If I had to bet I would be very surprised if we’re ‘back to normal’ in this calendar year. I think it’s probably 2021 before people both from a legal standpoint and a comfort standpoint are actually going out and leading their lives like they used to, absent some sort of medical intervention that people are working furiously on, but we don’t have anything yet.

Is there increased pressure for tribal casinos to open their doors?

I think there is. Since the tribes in general are sovereign nations, they’re making their own decisions about when to open and when not to. That’s been a concern of mine, too, where you have some operations where it’s not just a casino.

It’s the whole tribe in many cases that depends on the casino revenues that allow them to pay their rent, buy groceries and pay for medical care. Can you see a situation where a tribe just says, “We can’t afford to be closed any longer. We’re not getting the aid we need and we have to reopen”? I don’t think you can rule that out. I would hope that isn’t the case and that there’s a backstop there, but there might not be. All of our customers are shuttered now. Some of them waited a little bit longer than others. We haven’t heard of anybody’s plans to reopen but let’s see what develops with the progression of the disease.

What’s your biggest concern when it comes to the rollout of reopening casinos?

I hope we’re not too anxious. Everybody wants to get back to work, everybody wants to reopen the country. The economic toll of this is unprecedented.

Everybody remembers ‘08. I remember 9/11. I remember the crash of ‘87. I grew up during some pretty rough times in the ‘70s. My grandparents grew up in the Depression. We’re not there yet, but the threat to the economy is as great as anything we’ve seen. This is almost like a wartime economy because everything is shut down. We’re not getting bombed, but from a business standpoint it’s as if everything just got wiped. And it goes up the chain. There’s going to be a ton of anxiousness and pressure to get things reopened, but if you do it too soon, you just make the problem worse.