19 minute read
Remote revolution?
whereas other roles benefit from a quiet environment. Different individuals may have different preferences, too. To gain quantitative research on the debate between remote and hybrid working, Gambling Insider conducted a poll on LinkedIn asking what types of working conditions people preferred post-pandemic. The highest figure showed 36% in favour of a fully remote workforce, with the lowest number accounting for 17% choosing two days per week. However, the results were quite evenly spread: CSB also conducted a survey. “People prefer the hybrid way of working,” Dutton states. “The nature of our jobs allows the best of both worlds; the ability to be with colleagues and understand what they are required to do in the office, but at the same time, concentrate and be quiet working at home.”
Malta stands as a European iGaming hub, with hundreds of iGaming companies operating in the highly sought jurisdiction. IGaming is one of the region’s fastest-growing industries, along with blockchain, and Malta is establishing itself as a popular place to call home. CSB has supported the industry since its inception and Dutton has worked with numerous clients over the years. She sheds some light on her knowledge of working in the gaming industry: “The full remote working option was very popular. I have had many companies that designed fresh remote working policies. I know that some gaming operators – whether it’s about the culture of the employees or that they have more international employees – who want to be back home in their countries, we’ve had a lot of people wanting to be predominantly remote.”
This topic raises the question of whether the iGaming industry is more suited to working online than in the office. Dutton proffers: “Online is more suited because you aren’t dealing with anything tangible (like tangible paper, original signatures, or certificates). Working in gaming gave me an insight into clients being online as well. However, here we often have them drop by the office, so need to have physical premises to meet people.”
Thousands of businesses and employers have been weighing up the dilemma of how to bring their employees back to work in a safe environment. The subject of ‘no jab, no job’ is a sensitive one. Where some companies have made the vaccine mandatory for all new hires (think: MGM Resorts and many Nevada casinos), others believe it to be an employee’s personal choice. Dutton explains that CSB does not feel it “has the right to impose the vaccine on anyone.” “The moment you start policing employees can create a very negative repercussion very quickly. That is not the type of relationship we want to have with our staff.”
CSB has voiced to its employees that it believes in the vaccine and its benefits in protecting its team members; however, it does not believe in “forcing anyone.” Dutton explains that the company does take note of who has had the vaccine due to the safety of others who may have chronic conditions. “We aim to be in a position where if anyone joins the company or becomes pregnant, and they need to know how safe the office would be, we want to be able to answer that.” Regardless of the company not forcing vaccination, CSB’s employee coverage stands at 95% double jabbed, meaning the office has achieved herd immunity.
Overall, working remotely is based on adhering to essential job responsibilities from the employer and the employee: “I feel it is important to know how to manage a remote workforce. I can understand the hesitation around the concept of remote working, but only if objectives and performance targets are not set beforehand.”
Dutton continues: “If there isn’t any sense of agreement from both parties on what is expected (and vice versa), then it can’t work. This is the piece of the puzzle that remote working needs to thrive. There needs to be a sense of accountability for the manager to feel relaxed and not micromanage, checking up every five minutes, saying: ‘are you working on something important or are you taking a break?’
CSB maintains its values in treating employees fairly; with this comes respect from team members. “Employees also need to relax because they start doubting if their employer knows they’re working - when we know you are,” Dutton concludes. “This worry can cause anxiety, so there needs to be a very good working relationship based on trust between both employee and manager, based on very clear tasks and expectations. Both parties can then leave each other alone, but know what to expect from one another. You're doing your job and I’m doing mine. Everyone is working. That is how remote working can be implemented efficiently and how it does not diminish productivity.”
Disruptions and user experience
Yggdrasil CEO Fredrik Elmqvist speaks to Tim Poole about the evolution of gaming, the importance of user experience and how key disruptions have impacted the industry
You’ve been at the helm of Yggdrasil for almost 10 years. How do you reflect on this? Coming towards 10 years exactly, it’s been an interesting adventure in that sense. I think it is fair to say that the industry has evolved a lot since then. We believe it’s a better user experience to let the players select from various types of games instead of just having a smaller, limited range.
And I think that disruption has been pretty big because it led to more innovation, and this big because it led to more innovation, and this was allowed because we had taken down the was allowed because we had taken down the barriers around manual fund transfers, which barriers around manual fund transfers, which enabled a slow evolution of more providers. enabled a slow evolution of more providers.
At Yggdrasil, we see third-party partnerships At Yggdrasil, we see third-party partnerships coming and joining our development cycle, coming and joining our development cycle, they are licensing our intellectual properties to they are licensing our intellectual properties to get their content into our big network. I think get their content into our big network. I think that is the next disruptor; we are kind of in that is the next disruptor; we are kind of in the middle of it, we see our top line growing the middle of it, we see our top line growing pretty well due to that; we never wanted to pretty well due to that; we never wanted to be a hub. Aggregation has been there all the be a hub. Aggregation has been there all the time, we wanted to disrupt the aggregation time, we wanted to disrupt the aggregation by developing this piece of tech called GATI by developing this piece of tech called GATI (Game Adaptation Tools & Interface) in the (Game Adaptation Tools & Interface) in the regulatory landscape, allowing each part of a regulatory landscape, allowing each part of a chain to do what they do best. So we are kind chain to do what they do best. So we are kind of in the ideals of that and sailing through it at of in the ideals of that and sailing through it at the moment, which is very exciting. the moment, which is very exciting.
Given these disruptions, on a scale from Given these disruptions, on a scale from 'slightly different' to 'unrecognisable,' 'slightly different' to 'unrecognisable,' just how much would you say the just how much would you say the industry has changed during this time? industry has changed during this time? Well, for me, a lot. I can only look at the casino Well, for me, a lot. I can only look at the casino side and slot side of this mainly. There I see side and slot side of this mainly. There I see a lot of disruptions, but it all started with seamless a lot of disruptions, but it all started with seamless wallet and free spins. Seamless wallet broke wallet and free spins. Seamless wallet broke down the barriers; and that led to branching to down the barriers; and that led to branching to new innovations that led to new disruptions. new innovations that led to new disruptions. Everything is driven by the user experience. Everything is driven by the user experience. What I see now if I compare the casino with What I see now if I compare the casino with sports betting is that it’s been pretty big with sports betting is that it’s been pretty big with tech and software. I think there will be a lot of tech and software. I think there will be a lot of innovation coming from the US in sport. I do think casinos still do have disruptions to come, based on what we are doing with GATI, opening up third parties, enabling people undertaking R&D (research and development) based on being convinced on a strategy or user experience. So do I see a change? I’ve seen a lot more sports involvement in the last year.
You mentioned as well how Yggdrasil has adapted and, as you say, perhaps caused some disruption. In the next 6-12 months, given the Masters Programme and your aim to be seen as a global publisher, what is on Yggdrasil's roadmap? We focused a lot on the B2B technology side; we are a provider to the operators but also to the studios. You see a lot of focus on the tech to make it scalable, which is very important. Today we are actually doing a lot more with a lot less resources, which is a huge difference from two and a half years ago. What we are working on now is to be seen as not only a B2B company, but as a B2B company working on consumer and gambling B2C products. So, you will see more of this, and will see new types of games coming out, games like Vikings Go Berzerk Reloaded.
A different focus from the beginning, on the R&D front, is focusing on the gambling user experience. We are taking back the B2C experience, focusing a lot more on our own intellectual property. We are also focusing a lot around monetising on the “GEMs,” the Game Engagement Mechanics that we licence to our partners. Because we see that when the players recognise the mechanics, it’s a win-win for the studio. You’ll see more known and working mechanisms but with permutations from us and our partners. We are going to be much tighter with the B2C experience of the products. It’s been implemented since August, but it will continue – it’s part of a strategy.
You touched on GEMs and GATI earlier, and I know these are big products for you. In terms of distribution and change, obviously something that impacts the industry as a whole is M&A. This year we have had several examples, Evolution – Lightning Box, 888 – William Hill, Aristocrat – Playtech, to name a few... What a list! How do you review 2021 in terms of industry consolidation, and the deals and trends that are driving the sector at the moment? I think it is very interesting. You see a lot of interest between the UK and US, a lot of shareholder value is also created in Evolution deriving from the US and continuing for several years, even NetEnt had a lot of shareholders coming in from the US. I see gaming moving into a new phase and I find it so interesting. That is why there is never a dull moment or quarter in this industry; new innovations, new deals, global macro trends, they all have an impact. SPACs are coming in and changing things around again. There’s a lot of money involved, in the US regulating sports, in casinos following after. Then there is, of course, a very tough regulated landscape in Europe that is struggling, probably the lowest it’s ever been before in the regulated markets. You need to keep an eye on the global macro and the local macro – again, never a dull moment.
Absolutely, never a dull moment and no two days are the same. Do you have any thoughts on the operator-supplier merger trend, while not too common we are seeing a lot of it. As time goes on, do you think we will see more? It’s usually driven by the operator who wants to have production from a strategic point of view; they think it’s going to differentiate themselves with new content and be easier to market. I think it is just a strategy but this is nothing new, it’s been like this for a very long time; several B2Cs have it, Paddy Power had it, it’s really nothing new.
I don’t think that online game providers really understand the complete quality in user experience, until guys like Megaways came about and really turned this upside down and focused completely on user experience targeting the players; that was the disruption itself. I think you are going to see a much more fragmented landscape between B2Bs and B2Cs in terms of collaboration and flexibility. Work with your frenemies – have a collaborative and flexible approach.
When it comes to M&A and being acquired by another company, what is Yggdrasil’s stance and approach to this? And what about perhaps going public? Well, I would say there is a big barrier today in the public market. I think given how the banks are treating gaming today and especially in Sweden, I think it makes it tougher to have an IPO there. I would say that back in the day, having an IPO was almost a preferred way forward for the shareholders to exit the business or continue rolling forward. Today we work with a private equity company, Bridgepoint. If I would bet, I would bet more about looking at the option to potentially sell the company or merge the company. When it comes to Bridgepoint’s strategy – you’d need to ask them how they are philosophising around this; but for me personally, I can say there is an interest in continuing the journey one way or another. It depends on who we talk to and who wants to do a deal. We are open to discussion but it depends who and how, and so forth. There are currently no ongoing activities.
So, looking ahead (and looking back), how do you sum up 2021 and what is Yggdrasil’s outlook going into 2022? Looking back, we don’t rate 2021 as a bad year, we see it as a good year; we have delivered our promises and KPIs, we managed to sell some GEMs to partners and we built a top line. I think we have had a pretty decent year, with a very strong Q4. 2022 will be more focused on the B2C and user experience. This means a lot of motivation, less games coming out; but more games proportionally will have our own intellectual property, in-house games and licensing intellectual property. We are going to declare some kind of strategy towards the West, and we will most probably announce something on that over the next few weeks. For us, 2022 is a year of exciting, tighter accumulated strategies.
After enjoying rapid growth throughout the early stages of the pandemic, what does the future look like for esports?
Erik Lögdberg Kambi, COO, Erik Lögdberg
What was at one stage a largely niche pastime, esports is currently one of the fastest-growing global entertainment industries with an audience of more than 450 million people worldwide. Buoyed by the success of popular games such as League of Legends, Counter-Strike: Global Offensive and DOTA 2, as well as the growth of streaming services like Twitch, esports is now estimated to be worth more than $1bn in revenue this year at a growth rate of 15% year-on-year, according to Newzoo.
Such strong growth is why, particularly in recent years, esports has become such an enticing opportunity to the sports betting industry. Indeed, more and more betting companies have begun offering markets on esports and many have invested significantly in their respective esports betting products, in some cases treating it as a standalone vertical alongside casino, poker and sports.
As the question this article poses might suggest, there was a particularly large surge in the popularity of esports betting at the height of the Covid-19 pandemic. The cancellation of major sports across the globe resulted in a more limited offering comprising the likes of Belarusian soccer, table tennis and esports in early 2020. By way of example, in March 2020 the number of esports bets placed on the Kambi network was approximately 250% higher than in the same period the previous year.
Interestingly, when the global sporting calendar returned to normality, the interest in esports remained high, which served to underline that the growth of esports betting was no flash in the pan. Data from the Gambling Commission, for example, showed that gross gambling yield from esports betting continued to rise into May 2020 once the sporting calendar had resumed, while other ‘niche’ verticals reported a decline. The potential for esports to be a significant part of the sportsbook has never been clearer.
Of course, the future growth of esports betting is largely dependent on how it is regulated on a country-by-country basis, or, in the case of the US where licensed sports betting in general is still in its infancy, on a state-by-state basis. This forms part of a wider industry trend which has seen many regulators across the globe permit betting on esports; while also attempting to establish a framework that ensures the highest standards of integrity monitoring are upheld, and that esports is protected from manipulation.
Since the repeal of PASPA in May 2018, an increasing number of US states such as New Jersey, Colorado, Nevada and West Virginia have regulated esports betting, and more states are expected to follow suit in the future. Many US sports teams have entered into partnerships with esports betting providers too. In general, esports is immensely popular in the US and, as we don’t feel anyone has really cracked the esports betting product or market yet, we believe it offers a significant opportunity
Malte Hegeler Malte Hegeler, Head of Product Development, OddsMatrix – EveryMatrix
Firstly, it is important to recognise exactly how transformative the pandemic was for esports betting. Our own research showed that the shutdown of live sports resulted in this vertical growing 40 times over. The extraordinary bubble of esports betting did not suddenly pop once the Premier League and other major sports resumed operations, either. We have found on our platform that betting revenues on esports events are nine times higher than they were in the pre-pandemic era. One industry-wide report predicted that the esports betting market will be worth more than $13bn by 2025, up from $800m in 2019.
Clearly, a large reservoir of potential for esports betting remained untapped prior to last year. Sports-themed games events that emerged onto betting platforms proved an extremely popular option for bettors, with the knowledge barrier for understanding the mechanics behind FIFA and NBA2K contests easily overcome. These simulation titles remain popular mass-market choices within today’s sportsbooks, as quick-fire matches from across the world constantly take place around the clock.
With the more traditional esports disciplines, such as CS:GO, their ascent into the mainstream has been less dramatic but no less impressive. Once a niche pastime, competitive gaming now commands massive sponsorship deals, huge prize pools and is covered on major TV channels. While Dota 2 might not ordinarily pique the interest of a Premier League fan, the $40m prize pool on offer in The International this year certainly provides a point of intrigue for many who would not typically take in a major esports tournament. Many football fans will also have been interested enough in Jesse Lingard’s recent purchase of a Rainbow Six Siege team – rebranded as JLINGZ esports – to take a close look at the game mechanics on YouTube. The patronage of global sporting superstars does not stop there and also includes Sergio Aguero (founder and CEO of KRÜ Esports), Gareth Bale (Founder of Ellevens Esports) and David Beckham (Co-owner of Guild Esports).
Unfortunately, the traditional sports betting world for some time turned a blind eye to the continued ascent of CS:GO, League of Legends and similar titles. This is out of a lack of understanding of the genre and its devotees, who sit outside of the demographic that enjoys regular sports betting. What is needed is for true esports market knowledge to be integrated within a reliable and quick sportsbook platform, to appeal to a generation that sees little or no difference between esports stars on Twitch and football superstars on the pitch.
That deal points to one of the major challenges that still needs to be resolved within esports: the lack of reliable data from below the top level, both on the teams and from the organisers of tournaments. While the likes of the ESL are very well-served with credible data, the next tier of esports events – which are still very popular – features semi-professional players who can suddenly quit mid-season, making it difficult to build reliable pre-match markets, and with inferior in-game data.
Ultimately, operators entering the esports space need to select a solution that is comprehensive, powered by people who hold a deep understanding of the vertical and who can offer partners the widest range of compelling products. At OddsMatrix, our enhanced platform currently features more than 50,000 live events every month across over 370 tournaments and with 95 different bet types. Those numbers are constantly growing. Operators also benefit from real-time odds, stats, scores, settlements and automated trading, as well as the option for operators to configure their own odds to customise profit margin. The future growth and continued development of esports betting is guaranteed, so selecting the right partner now can ensure operators get on the front foot, to stake a claim in a vertical that is only just getting started.
Malte Hegeler leads the product development for EveryMatrix across all its sports products. Having a deep understanding of bookmakers’ needs, thanks to his 10+ years of experience in trading and sportsbook development, Hegeler is a key contributor to the recent revamp of OddsMatrix’s front-end and back-end capabilities, as well of the launch of the Esports Services in 2019.
