67 minute read
Sports Betting
GIVING CUSTOMERS WHAT THEY WANT - BOYLESPORTS’ LEE OTTER ON THE KEYS TO RETAIL SUCCESS
IN THE EYES OF MANY, online gambling has subverted retail as the number one means of betting - but the industry’s big stakeholders still maintain a keen focus on their high-street operations
BY TED ORME-CLAYE
Entain now operates the UK’s largest combined suite of retail holdings via its Ladbrokes and Coral properties. Flutter Entertainment has hinted at a brick-and-mortar rollout, while Betfred remains a familiar name throughout town centres and 888 has now acquired a substantial number of shops via its takeover of William Hill.
Targeting its own expansion in the UK is BoyleSports - John Boyle’s Dundalk-based business is the largest independent betting operator in both Great Britain and Ireland, and its plans for growth in the former are no secret.
What the punter wants
Discussing BoyleSports’ expansion over much-needed lattes in Manchester’s Deansgate district, the company’s Director of Property and Development, Lee Otter, highlighted some of the key considerations for success in retail betting.
“We want to give customers what they want and build up trust,” he began, breaking down the BoyleSports retail strategy. “That goes right across the board, whether that’s from a trading perspective or from a physical perspective, starting with the comfort and layout of the shops.
“Our concession packages are innovative, relevant and change daily, so they provide punters what they really want. I can see the impact this is having on the shops, we are actually giving more money back.
“Ultimately that is what punters want, and if they can do it in an environment where they have the full range of creature comforts, why would they not visit?
“That’s why I have confidence in our brand and our ability to
gain market share in any location - by giving the customer what they want.”
Location, location, location
On the topic of locality, Otter stressed that this could not be a more important factor to acknowledge when developing a retail offering.
BoyleSports has opened six new shops in the past three months in locations such as
Ellesmere Port in North West
England and Darlaston in the West Midlands, and has also extended a pre-existing venue. “The business mix and punter profiles are different, but what is consistent is the fit, quality and facilities,” Otter commented on BoyleSports' geographic diversity. “The quality is the same in every shop, and that’s important to the brand - there are no halfmeasures, the experience has to be right in every location. “We take a handson approach to the design of the shops and refine things as we go. For example, we tried to squeeze too much marketing material in the windows of one new shop, which made it look cramped, so we reviewed and made changes.
“Making sure things are fit for purpose is also important - we like to pay attention to detail and show a willingness to invest in what others perhaps wouldn’t, due to onward
maintenance concerns, to make sure it's giving customers an enjoyable place to be and a comfortable place to bet.”
In Otter’s view, the pandemic has led to change in consumer habits which has seen localised purchases becoming the norm for many customers, as people made more effort to avoid densely populated areas.
“There has been a behavioural shift which has redistributed the betting market, and lockdowns accelerated this,” he continued.
“People choose betting shops because of convenience - not just because of odds, offers, the staff, the size etc - it's all about the location. If you’re expanding your retail holdings and evaluating where to open a new shop, it is paramount you make sure it is in the right area.”
A key question facing many industries as lockdowns ease is
whether the city centre, the traditional focal point for retail business, will be able to rebound.
Hybrid working has also contributed to consumers’ changing retail preferences. Instead of heading to a busy city centre many now prefer a local option.
Explaining this paradigm shift in the context of retail betting, Otter added: “City centres and towns are different in terms of business. Ideally you want a
good mix of race-to-race, early morning and football, but there is more of a transient nature to city centre locations which is where footfall impacts.
“The service we provide lends itself to knowing our customers and having a strong community feel. It's all about building the brand and customer trust. Responsible gambling interactions are also different in town centres and local areas because of that local customer knowledge and relationship building, which can be harder to develop, or needs to be applied differently, in a city centre, due to its often more transient nature.
“You might get better value online, but in retail you have personal contact, often with a familiar face and that all important social interaction - which also supports responsible gaming.”
Content is king
Location is obviously a key factor to consider when laying out the blueprints for retail growth, but the BoyleSports Director also placed a heavy emphasis on one additional component.
Whilst customers will look for convenience and comfort when placing an in-person bet, the content on offer in a store is also an eyecatching element bettors will consider.
For the Irish bookmaker, this has involved setting up ‘the best gantry on the market’ - in Otter’s view - featuring racing and live sports content across a wide range of events.
“It comes down to ‘what is the content on what screen? Where is the screen located?’ This is the detail that’s important,” he emphasised.
“For example, our shop has the full eight-over-eight gantry, and is trading against both William Hill and Coral, but provides a comfortable environment and gives the customers all the content they want.”
BoyleSports’ shop displays often feature 50-55 inch TV screens spread across six-over-six, seven-over-seven or eight-over-eight curved gantries, which Otter likened to a betting equivalent of the cinema experience.
Meanwhile, the company has also signed contracts with the likes of Sky Sports, TRP and SIS (Sports Information Services), to incorporate a diverse selection of sports and betting markets for its customers.
“We’ve got absolutely everything that the customer could ever want,” Otter added. “Sky is in every shop, as well as TRP and SIS, and virtual racing has its own dedicated screens.
“All of the latest odds and offers are all there. We use the Promote system to square the content dynamically, and you can effectively promote different markets in different locations, should we choose to.”
In an increasingly digitised age
and with online betting ever more prominent, the ultimate ‘utopia’ for operators offering both verticals is a strong omnichannel offering.
Central to achieving this in BoyleSports’ plans is the firm’s BoyleXtra account. The BoyleXtra card enables the customer to bet however and whenever it suits them; online, inshop using their online balance, on the app or over the phone.
In addition, every BoyleSports betting shop features self-service betting terminals, which Otter maintained ‘are a step towards online via an electronic means of betting’, providing punters with a bridge to, and a familiar feel for, those more accustomed to online wagering.
“We focus on the SSBTs because the younger generation relate to that electronic style of betting. You can use the terminals to readily give them the vast information they are used to online, which in turn brings on new customers.”
Providing such diverse content does not of course come without its challenges, as Otter noted that media rights fees are an important consideration when sizing up the costs for a new retail venture.
“In some areas where rent isn’t much of an issue, media rights exceed that. The capital required is often significant, and basic commercial sense says for every penny you need to make a penny and half. Rights are a huge contributory factor to costs and you have to include it in any viability study when opening a new shop.”
Moving forward - why bet on retail?
Retail has understandably taken a major hit in recent years, from the rise of online betting to the FOBT stake limit in 2019 and the COVID-19 outbreak the following year. Otter has witnessed all of these developments first-hand during his 10-year and 15-year tenures at Ladbrokes and William Hill respectively, and in his ongoing role at BoyleSports.
Despite these hurdles, retail still remains a safe bet for operators, he reiterated, due to the aforementioned community aspect that the local highstreet offers to punters, enhanced with rich content and a comfortable experience.
“I have absolute confidence in a continued loyal retail customer base,” he concluded.
“It all goes down to the fundamental premise that online is very different to retail. The two have co-existed for over 15 years now, and in many ways complement each other rather than compete or detract.
“Retail will always offer a comfortable social environment and have the draw of social interaction and placing a bet around like-minded people.” •
IMG ARENA: GROWING RIGHTS HOLDERS’ REACH IN THE DATA AGE OF SPORT
HAVING SECURED A MONUMENTAL DEAL with Major League Soccer (MLS), IMG ARENA President Freddie Longe shares how the two organisations will work together to revolutionise the fan experience and extend the reach of rights holders in an era that’s becoming increasingly dominated by the power of data
BY CHRIS MURPHY
SBC: First off, how did the deal between IMG ARENA and the MLS come together? What makes the two organisations such a great match?
FL: The MLS is one of the most forward-thinking organisations in world sport. It has been a constant and meaningful innovator since its inception, making it a standardbearer for the integration of new technologies. We are committed to helping rights holders grow their reach in the data age of sport and to be part of the MLS journey is a great honour.
As with any deal of this size and scope, it was a long time in the making, featuring an extensive RFP process. It is a ground-breaking, technology-led agreement with a multi-faceted delivery that completely revolutionises the fan experience.
SBC: Let’s talk about how you can tailor soccer to a US audience. US bettors are more focused on individual props and see sports through a fantasy lens. How can data be used to help build up micro betting markets that will cater to a US audience?
FL: The power of data is its ability to help audiences further understand and connect with the game in a digestible format. Our award-winning Event Centres – already successfully implemented in golf and MMA – offer a unique data-driven front-end solution that visualises data in a way that informs and engages the fan.
Critical information, including the latest team form guides and insight on how star players are performing, will enable sports fans and bettors to become more comfortable in placing bets on upcoming MLS matches.
When you couple that with recent innovations and deals across US
soccer, then data really comes into its own. For example, Apple and the MLS recently announced a 10-year, $2.5bn global broadcast partnership that will shake up how soccer fans and sports bettors immerse themselves in live matches. This unique deal means that for the first time, all MLS matches will be available directly through the streaming platform via a subscription model.
Crucially, the MLS is set to introduce an NFL-inspired RedZone service for viewers, delivering an elevated in-play experience on game days across a multitude of matches. For sportsbooks, this creates more betting opportunities and heightens the appeal to soccer fans and bettors.
Despite soccer growing to become one of the most popular sports in the US outside the big four, engagement from a betting perspective has historically been relatively low. However, the next four years provides US sportsbooks with a major opportunity to attract and convert soccer fans into depositing betting customers.
With the US, Canada and Mexico national teams all qualifying for the 2022 World Cup in Qatar, sportsbook operators are in a prime position to lean on this hype and promote soccer betting markets throughout the month-long tournament. And as North America prepares to host the event in 2026, this is a pivotal period for soccer’s future growth.
Data is a vital piece of the jigsaw puzzle to ensure more fans engage with soccer betting markets and ultimately leads to more informed wagering decisions. Built upon our ground-breaking golf data collection methodology, our configurable scoring applications are designed to collect the fastest, most accurate and reliable data.
The real point of difference comes in creating a connective tissue between data feeds. Currently there is a separation between data collection
methods. This has limited the potential growth of soccer data, analytics and insights.
FastPath, Event and Tracking data have largely existed as independent data streams and the synergies between them haven't been unlocked. Via the convergence of human and automated data collection we can provide MLS with fast and accurate data and powerful new data sets.
It then comes down to how you use that data and present it to fans. The
SBC: How will you tailor your data collection and fan engagement approach to MLS, which is structured differently to traditional leagues?
FL: IMG ARENA is committed to only using 100% official data. Content creation underpins our universe.
new MLS Event Centre will play a key role in this by delivering innovative, data-driven content for soccer fans and bettors. It will combine MLS data feeds and live streaming, and present live and historical event statistics, data visualisations, and ultra-responsive markets via 2D and 3D interfaces.
SBC: Beyond data collection/ distribution, how will this partnership benefit the MLS digital assets of MLSsoccer.com, the MLS App, and related club Sites?
FL: MLS and IMG ARENA will launch a suite of new digital products enabling the league, its teams and partners to use data, graphics and insights to enhance the game and further engage the digital MLS audience on MLSsoccer.com, the MLS App and all MLS club sites.
The multi-year, global partnership will focus on the growth of the MLS fan base, with IMG ARENA delivering programmatic marketing and ad tech to assist MLS in building its audience share among the 3.5 billion global soccer fans.
SBC: Data plays an increasingly large role in how bettors decide on what to bet. What trends and types of data are you seeing bettors tending towards, especially when it comes to US bettors and soccer?
FL: The US market has some of the most sophisticated consumers in the world. It is a completely blank canvas, so we are seeing a lot more creative thinking and convergence between rights holders, sports betting and sports media.
Our view is that we must develop our productised technology and layer in content and experiences across all touch points to keep fans immersed throughout the value chain. The growth of in-play betting and the importance of data here cannot be underestimated. THE US MARKET HAS SOME OF THE MOST SOPHISTICATED CONSUMERS IN THE WORLD. IT IS A COMPLETELY BLANK CANVAS, SO WE ARE SEEING A LOT MORE CREATIVE THINKING AND CONVERGENCE BETWEEN RIGHTS HOLDERS, SPORTS BETTING AND SPORTS MEDIA
There is also growth in demand for content outside of the big four. Recent analysis we commissioned with H2 Gambling Capital suggests that North America will see notable rises in market share of GGR for the following sports: volleyball (15.5% global share in 2021 up to 27.1% in 2026); table tennis (21.3% up to 35.6%); MMA (43.0% up to 60.8%); and golf (45.1% up to 61.9%). We have some exciting plans in the works across all these verticals, building on the pedigree we have built in golf, MMA and tennis. •
KWIFF: WE’RE POISED FOR FURTHER EXPANSION, BUT THE US IS NOT THE CURRENT FOCUS
IN THE HIGHLY DIGITAL and multinational betting industry of today, maintaining a firm grasp on technological development is a key skill for any operator to learn
BY TED ORME-CLAYE
Betting and gaming has become increasingly digitised and multinational in the 21st century, with high profile firms cruising their way across international borders via online operations.
A common factor both the new webbased betting scene and its older, brick-and-mortar counterpart share is the need for a strong technological foundation. For online sportsbook Kwiff, this is paramount.
Reflecting on the development of Kwiff’s tech stack, Founder and CEO Charles Lee highlighted the increasingly complex nature of modern betting products and the company’s international outlook.
Transatlantic ambitions - or lack thereof?
The rapid growth of the US betting and igaming market has been phenomenal over the past two years, with 18 states - at the time of writing - open to online wagering, whilst more than half now accept other forms of gambling.
A recent report found that should the 42 states of the union that currently allow either land-based casinos or online sportsbooks (or a combination of both) open their markets to online casino products, a potential annual turnover of $6.35bn would result.
With this in mind, it is unsurprising that many operators are prioritising North American expansion. Kwiff, however, is “biding its time“.
“When the opportunity is right and when it presents itself, we'll know,” Lee said. “We've held back a little
Charles Lee, Founder and CEO of Kwiff
bit, although we've got the tech built that will handle a multi-jurisdictional territory like the US, but the current climate is not right for us at the moment.
“The cost of entry is a prohibitive factor, and I also think the marketing spend of other operators in the territory is a bit restrictive as well. However, I see that coming down significantly, certainly this year and into next year. So 2023 is going to be a really interesting year.”
Lee detailed that Kwiff’s focus is instead on its current markets, namely in Europe and Africa where the Maltabased operator has built up a strong presence since its inception in 2015.
For the many firms who have decided to make the trek out West and seek their fortunes in the New World, however, Lee did have one piece of advice - get the tech stack right.
“We’ve seen businesses slow a lot recently and you can see that in the share price, but when the time is right the US presents itself as an enormous opportunity,” he explained.
“I'm sure their share prices will bounce back and strong businesses will prove resilient at the end of the day. They also need to make sure that they can control all of the elements of their product, and the tech stack is vital to that. If they're not owning their own tech stack, then being on a really strong third-party provider is going to be important as well.”
IF THEY'RE NOT OWNING THEIR OWN TECH STACK, THEN BEING ON A REALLY STRONG THIRD-PARTY PROVIDER IS GOING TO BE IMPORTANT WE'RE PRETTY CONFIDENT THAT WHEN THE TIME IS RIGHT, OUR TECHNOLOGY WILL STAND THE TEST OF THE US AND ALSO OTHER MARKETS
Betting on technology
Lee observed that, as gambling products are becoming increasingly complex, features are commonly ‘stacked on top of one another’.
In the CEO’s view, it is vital that this complexity is not ”passed on to the customer”, adding that at Kwiff the avoidance of this practice is the company’s mantra.
Kwiff’s six-year development of its in-house tech has more than paid off, he asserted, with the company now capable of taking on “any jurisdiction, any guidance or restrictions“.
“The user won't really experience anything different apart from those restrictions, so it's vitally important for the UX and the UI of the product,” he said. “We can employ servers within different territories, be it physical servers or use the cloud - we have the flexibility to use either.
“We're continually pushing ourselves as a technology outfit to challenge the normal and explore different emerging technologies and methodologies and push the boundaries of being on the edge of technology development.”
In Kwiff’s case, the CEO explained that ”no expense has been spared” by the bookmaker, such as utilising ”best in class developers” and native technologies.
This has resulted in the development of a ”seamless cross-sell experience”, including a sportsbook, casino and bonus engine - a product which the company believes will succeed across any market.
“We're pretty confident that when the time's right, our technology will stand the test of the US and also other markets. Actually, I don't think the US
is the most complex market that we could be in - there are other markets that offer more challenges.”
Trends and challenges
It would be hard to argue that the shift from retail and brick-and-mortar betting to online gambling is one of the most significant trends to take place within the industry over the course of this century. It is a trend that has not only been driven by technological developments, but also by changes in consumer behaviour.
Customers are now pretty savvy, Lee noted. They understand the degree of seamlessness required to execute an enjoyable betting experience and whether or not friction is being encountered. This requires greater personalisation than before.
“Looking at sports betting specifically, giving a round of experiences is key, and for us that starts with personalisation,” he said.
“As a B2C operator, there's more and more content out there for us to deliver to customers, whether we're providing it within the product or we're taking it from elsewhere and then feeding it to the customer.
“The customer is not always going to want all of that content. What we need to be able to do is look at the data that the customer is providing us from their betting patterns and feed them the relevant content that we know is going to engage them.
“This is going to lead to bettor stimulation and increase the loyalty of the customer and give them the relevant information. An operator that can do that will really have success towards the end of this year, next year and beyond.”
Building on a tech base - what's on the horizon for Kwiff?
While Kwiff may be playing a waiting game on any US moves, the firm is still eyeing international growth. WE WANT TO OFFER THEM A PERSONALISED AND UNIQUE SPORTS AND GAMING EXPERIENCE, BUT ALSO WITHIN A SAFE AND SECURE ENVIRONMENT
According to Lee, the rollout of personalised products is the next key objective.
Kwiff will be taking that experience to its international customers in different territories, working to personalise its products on a regional basis for bettors across jurisdictions.
“It's not just languages or prioritising different sports over others depending on where you are, it's the full offering that needs to be personalised, and the amount of data we can pull from our platform is incredible.
“We haven't even touched the surface of what we can do. We want to offer them a personalised and unique sports and gaming experience, but also within a safe and secure environment.” •
WHAT OPERATORS NEED TO SUCCEED IN TODAY’S INTERNATIONAL IGAMING LANDSCAPE
AS MORE REGULATED AND EMERGING MARKETS
come into play, operators are finding themselves in a familiar quandary: how can they increase revenues and compete successfully in existing and new markets?
BY ERIN GALLAGHER
Delasport, a global leader and a provider of sports betting, PAM and casino solutions, has entered eight new markets in 2022, pushing boundaries and elevating player experiences through personalisation, engagement tools, intuitive UX and flawless player journeys.
We talk to Oren Cohen Shwartz, CEO of Delasport, to find out more about how global expansion, player personalisation, content and service localisation, and managed services are a crucial combo for ambitious operators.
SBC: What is Delasport’s strategy that allows your partners to thrive?
OCS: To compete successfully, our partners need a trusty partner that works closely with them to set the right strategy. First and foremost, we make sure our partners get the highest level of service and our full attention. We listen to their needs and expand to more and more markets, pushing boundaries to
Oren Cohen Shwartz, Delasport CEO
bring innovative betting options and player engagement tools, focusing on personalisation and content localisation.
SBC: Can you tell us about Delasport’s latest entry to the UK market and market entries in general?
OCS: We are expanding worldwide to accommodate our partners’ expansion strategy, and to attract new local and international partners. Operators understand that to thrive, they need to expand their business to more and more markets. Entering emerging markets on time gives us a better
ENTERING EMERGING MARKETS ON TIME GIVES US A BETTER CHANCE OF GAINING A FOOTHOLD EARLY ON
chance of gaining a foothold early on.
Over the past 12 months, we have entered nine new markets, the latest of which is the UK. For us, being able to take part in Europe's most desired igaming market is a huge opportunity that we have worked hard for, and look forward to growing in.
SBC: What are Delasport’s player personalisation mechanisms; what do they bring to the table?
OCS: Our partners compete in markets where all operators have the access to the same content and are therefore striving to differentiate themselves. To facilitate this, we make sure that player betting experiences will be at the highest level possible in several different and unique ways.
At Delasport, we take a playercentric approach to perfect the user interface with single-playerpersonalisation capabilities and maximum service, with minimum friction. We have one of the most advanced casino and sports betting interfaces in the industry and our mobile UX allows smooth player navigation to elevate their experiences through the many sports events and markets, together with intelligent categorisation, automation and personalisation.
We are presenting sports events upon past activities and by geolocation; for example, the second league sports event will get the top UX position for players who live near the participating team. The player's minimum and maximum bet size can
be adjusted accordingly to the player's VIP level and ife time value.
We have an ongoing goal to create a better product by continuously learning about the player's activities. We also analyse their sessions and betting activities to reveal deep insights into their behaviour and offer personalised betting opportunities based on what we find.
SBC: Can you elaborate on Delasport’s player engagement tools?
OCS: Keeping today's sports betting and casino players engaged is a real challenge. With the high cost of player acquisition, retaining the player and increasing lifetime value become crucial. To meet this challenge, we offer an array of engagement tools like tournaments, missions, spin-wheel-towin and many more.
Our engagement suite is unique in the industry as it includes crossproduct engagement, allowing operators to run specific tournaments for casino and sports bettors, simultaneously or individually.
SBC: How do managed services fit into the overall strategy?
OCS: Managed services are an essential suite of igaming operational services that B2B suppliers manage for operators. The services include customer relationship management, cashier management, payout, KYC, responsible gaming, cross-sale, anti-fraud, customer journeys, player engagement tools, sports and casino management, VIP, customer service and other such areas. Without them, partner operators will have to supply a lot of manpower to keep their business at a high level in an incredibly complex and competitive environment. This is especially challenging in markets that are new to them.
SBC: Why would an operator choose to take managed services?
OCS: It depends on the operation’s type, size and strategy. An operator that likes to focus on online marketing
alone will take a full managed services solution from his B2B partner. In this scenario, the operator will enjoy access to highly professional experts and a faster time to market, especially if it’s a newly regulated one.
With managed services, the operator removes the hustle of expert recruitment, operation processes and procedures, compliance know-how, the need to let a bigger office, training
and retaining employees, and other day-to-day operational headaches.
When an operator takes on a fully managed service, it’s common that they’ll also ask to run on the B2C licence of the B2B supplier. This scenario is also known as a white label operation, and in some cases, a white-label brand can be launched within a few weeks.
Again, this is crucial for an operator who wants to enter certain regulated markets but doesn’t want to go through the difficult and timeconsuming process of getting a licence. Instead, they just use that of their supplier.
SBC: What should an operator look at when choosing the right supplier for managed services?
OCS: I would say that trust, level of expertise, localisation and transparency are the main aspects to look for. Whether the operator chooses fully managed services, or only a few elements, the partnership is based on trust. The operator invests in creating a strong brand and the B2B supplier personally represents the brand for the brand owner.
The operator should also look at qualifications, years of experience, processes, procedures, best practices, and customer support languages.
DELASPORT IS A TRUSTED MANAGED SERVICES PARTNER
Also important is a payment team that holds market-specific know-how, compliance operations of KYC, AML, GDPR etc.
Delasport is a trusted managed service partner that provides operators with a tailor-made suite of igaming services, where the partnership is based on mutual interests. And, with our presence in so many markets, it’s never been a better time to work with us. •
ANTON KASZUBOWSKI: STARTUPS AND THE ART OF PERPETUAL PROBLEM SOLVING
SBC ADVISORY’S FOUNDER AND MANAGING DIRECTOR
shares his expertise on the world of emerging technologies and the key ingredients for success that start-ups should consider when looking to make a mark on the sports betting and igaming space
BY ERIN GALLAGHER
SBC: What would be your advice to startups looking to make a mark in the sports betting and igaming industry? Are there any key ingredients for success?
AK: Build an expert team that intimately understands the market that you are addressing with your product or service. That will give you the highest probability of gaining traction with the business. Understand your customers and what problems they need solved or the ways in which you can improve their experience and then you have a good basis for an idea.
Then it comes down to having a team that can execute a strategy in times of adversity and is always looking to follow success with improvement. In my experience, business - and especially the business of start-ups - is an exercise in perpetual problem solving, whether it be fixing an issue, or seeing an opportunity and making good on that. Practical intelligence and a strong work ethic is key in this respect.
Then, of course, there is a large dose
of luck and timing in success. Almost anyone who tells you differently has an over inflated opinion of themselves!
So I think the key ingredients to success are actually pretty straightforward, but it’s incredibly difficult to have all of them come together at once.
SBC: At this early stage in the development of emerging technologies such as the metaverse, is any investment purely speculative?
AK: I don’t think that in conceptual or real terms, emerging technologies like AR/VR and metaverse are speculative at all. It is crystal clear that these technologies will have significant impacts on the future of society and therefore will create lots of opportunities for new types and models of businesses.
However, until the markets are well developed, being able to pick what will be the most successful applications, products or services within those technologies is clearly an act of speculation. You can transpose certain types of existing businesses and business models to these emerging technologies, for example video gaming into VR, but the opportunity for new types of application are even greater. So not all ideas will be totally speculative.
However, timing is also a major factor. You can have the best idea in the world but if the market is not developed enough in terms of hardware and addressable customers, you may well fail. The adoption of VR for example has been slower than many people predicted. Consumer adoption has been quite slow as devices have not been cheap or super user-friendly.
We are clearly still waiting for VR and AR to have an ‘iPhone moment’ where the tipping point of mass adoption is crossed, which then releases potential for the growth of many new applications – it is obvious and simple if you think about it in terms of the growth of the App Store. Industrial, medical and military uses have actually been far more useful and wide ranging for VR.
SBC: What areas do you think are going to be a key focus when it comes to investment and acquisition within the emerging tech space?
AK: I think the most important developments and deepest changes
to the industry will be driven by AI and machine learning technologies that will eventually replace or improve a lot of the functions that are key to running a successful sports betting or gaming business. I am not saying that all human roles will be replaced - but some certainly will - and increasingly humans will be working alongside and complementing AI-driven processes.
The increasing use of blockchain to manage information and transactions is also an obvious area that will continue to transform the way people transact and do business.
a very high value niche market. It also helps if you are early to a trend. First mover advantage is definitely real, if not always a winning factor.
A team with a proven track record of success can give you some comfort, and experience definitely counts. But no entrepreneur gets success right every time. that created a lot of good PR, it never felt like a long-term commitment to embracing innovation. The fact that it was a one-off suggests that feeling to be accurate. Across the board, however, I do think that attitudes have changed as a result of the increased focus from early stage and also now later stage investors on early stage tech companies during the pandemic, creating many unicorns.
This trend has started to be reflected by companies in the gambling sector also taking the view that both financial value and strategic competitive
advantage can be created through having a stronger focus on investing into innovation.
In the gambling sector, this trend has also been driven by the quick development of the US market. The highly developed investor ecosystem, larger appetite for risk and enormous amounts of funds available means that an early stage investment community of professional investors and funds focused on betting and igaming has developed. This never really happened in Europe despite myself and several other even more prominent and successful individuals trying to create funds focused on innovation in the sector. •
SBC: When looking to invest in areas of emerging tech, because futures are far from clear, how can you tell the difference between unicorns and those which may not take off?
AK: I’ve invested in successful companies but no unicorns, so I am not the best person to ask! However, the clearest factor is picking businesses that have a very large addressable market that they can scale into or have
SBC: In your opinion, how should the leaders of this industry be responding to emerging tech and blockchain, the continued growth of esports and a virulent VC market?
AK: Leaders should increasingly embrace emerging tech and treat having a long-term strategy of innovation as an area where they can build a clear competitive advantage. We are now increasingly seeing this happen with larger companies developing innovation labs or developing VC style functions in-house.
I was a mentor in William Hill’s Innovation Lab competition in 2016. While it was a commendable endeavor
GORDON MOODY: WHITE PAPER DELAY CAUSING ‘GREAT DEAL OF UNCERTAINTY’
MATTHEW HICKEY discusses the growing demand for problem gambling treatment across the UK and the ways in which operators and suppliers can best support companies such as Gordon Moody
BY JAMES ROSS
We’d be surprised if you managed to miss the bitterly fought Conservative Party leadership contest following Boris Johnson’s ousting in July. But whilst Tory members were taking to the polls to decide who would head up the party, gambling industry stakeholders were eagerly awaiting a date as to when the White Paper on gambling reforms would be released.
With a number of Ministers and Secretaries of State having haunted the halls of Whitehall with the Gambling Act review in their briefcases, it is unclear as to whether we will see any findings in 2022. Gordon Moody CEO Matthew Hickey noted that this delay was “causing a great deal of uncertainty” in many areas of the industry.
He commented: “From our perspective as a treatment provider, we have been
impacted by this uncertainty as it threatens to undermine the good work we have done collaboratively with the sector to provide treatment to those who need it most.
“Throughout the pandemic, we were supported by our stakeholders which meant we were able to navigate the challenges presented and meet the growing need of those who needed our help.
“New wrap around services and a women’s residential programme were created during this time and we have significantly increased our bedspace to meet the growing demand.
“The delay of the white paper and the uncertainty that this brings, especially around the issue of funding, could impact on this continued work and have an impact on access to treatment for those most in need. Treatment that for many is lifesaving.”
However, where there is time to reflect, there is time to ponder what could be when, or rather if, the White Paper lands on the desks of companies throughout the gambling sector. One issue that Hickey would like to resolve from the revised Gambling Act is clarity on how the funding of research, education and treatment of gambling harm is made available and governed.
“We strive to provide the very highest standards of care for our residents and therefore it is important that a robust funding model is in place to ensure we continue to provide the effective treatment that helps people reclaim and rebuild their lives free from gambling addiction,” Gordon Moody’s CEO stated.
“We have seen from the changing needs of our service users that innovation in this space is important and it is essential that there are opportunities for the sector to develop. Gambling addiction has not had the recognition that other issues such as substance abuse has had, yet the effects of this addiction being untreated can be devastating for the individual and their families.
“The Gambling Act review is an opportunity for more funding to be made available to the sector so that we can continue to tackle gambling addiction together.”
Though the review process is still not finalised and released, this delay should not result in gambling companies sitting on their hands waiting for it to drop on their desk. When asked what more firms can do in the industry, Hickey stated that everyone involved in problem gambling is “on a steep learning curve”.
He explained: “I feel that all of us, treatment providers and industry alike, are on a steep learning curve about how we interact, engage and treat
those that need support. It's paramount that we work collaboratively to provide the right assistance at the right time in the right place.
“There is a real opportunity to share experience, data and innovation so that the customer experience for problem gamblers is consistent across all operators and treatment providers. The major concern for us as a treatment provider is when someone affected by harm makes the courageous decision to reach out for help and come forward, but then disappears.
“This is common at this vulnerable time with some not reaching out again for a long period of time, if not at all. We cannot let that happen anymore. We must work collaboratively as an industry to break down these barriers, reduce stigma and find a way of helping those people when they first come forward.”
One way that Gordon Moody has continued to break down barriers and provide a place for people to feel comfortable coming forward is via its clinics. Recently, the charity opened a hub in the city of Manchester, a development Hickey stated that the organisation was immensely proud of, whilst stressing that demand for bed space has increased since the pandemic.
He added: “Gordon Moody provides a unique treatment offer through residential and retreat programmes where our service users can break the cycle of addiction in a safe, supported environment.
“Our 14-week residential programme designed for those severely affected by gambling harm provides unrivalled outcomes, with many who access the service going on to enjoy a sustained recovery free from gambling. Our unique women’s residential service has been created to meet the needs of women severely impacted by gambling harm, many of whom need to escape an environment which is further impacting on their issues.
“Whilst for many the opportunity to spend time being able to focus on themselves in a residential setting is fundamental to their treatment, for some it is not possible. So our retreat and counselling programmes have been designed to offer a hybrid of short stay retreats and online therapy which have helped hundreds of people on the road to recovery.”
With demand for bed space rising, Hickey noted that gambling addiction is serious, with many accessing Gordon Moody’s treatment as a “last chance to try and beat the addiction”.
He concluded: “The vast majority of our service users have previously accessed some form of treatment for their gambling but have relapsed, felt it was not for them or have not received the required level of support. Gordon Moody was set up in 1971 for that very reason.
“The Reverend Gordon Moody brought gamblers anonymous groups to the UK in the 1960s and became an honorary member. After sitting in on the groups he realised that for many the issues caused by gambling were so severe that they had led to the loss of work, the breakup of families and for some the loss of their home. This led to Gordon Moody opening Gordon House in 1971 as a hostel for single men left homeless by gambling.
“Whilst the treatment programme has changed over the 50 years and our services have expanded to meet the needs of women as well as men, the ethos of Gordon Moody is very much the same and our vision is to be the UK’s benchmark for successfully treating people with the most severe gambling addictions.” •
I FEEL THAT ALL OF US ARE ON A STEEP LEARNING CURVE ABOUT HOW WE INTERACT, ENGAGE AND TREAT THOSE THAT NEED SUPPORT
NIGEL HUDDLESTON
PARLIAMENTARY UNDER-SECRETARY
Department for Digital, Culture, Media and Sport 13 February 2020 - Present
DAMIAN COLLINS
PARLIAMENTARY UNDER-SECRETARY
Department for Digital, Culture, Media and Sport 8 July 2022 - Present JOHN WHITTINGDALE
MINISTER OF STATE
Department for Culture, Media and Sport 14 February 2020 - 16 September 2021
OLIVER DOWDEN
SECRETARY OF STATE
Department for Digital, Culture, Media and Sport 13 February 2020 - 15 September 2021
NADINE DORRIES
SECRETARY OF STATE
Department for Digital, Culture, Media and Sport 15 September 2021 - Present
CHRIS PHILP
PARLIAMENTARY UNDER-SECRETARY
Department for Digital, Culture, Media and Sport 16 September 2021 - 7 July 2022
THE VERY REAL DOWNSIDES OF OVERLY-RESTRICTIVE REGULATION
AS SPAIN’S MINISTRY OF CONSUMER AFFAIRS works on further changes to gambling regulation, Jorge Hinojosa, General Manager of Jdigital (Asociación Española de Juego Online) details the impact that the implementation of advertising restrictions last year has had on the country’s licensed online gambling operators
BY JORGE HINOJOSA
It has been around 10 years since the online market was regulated in Spain. Since then, three key moments have marked the evolution of the industry in the country.
First of all, the day it became a regulated market, back in 2012. This represented an important milestone to help establish this activity and guarantee a safe, secure practice to its users, who have since then been protected and able to bet in a reliable environment.
Secondly, November 2019, the moment when the sector itself agreed to modify its Code of Conduct in terms of advertising, to self-impose additional restrictions and rules to make commercial communications more responsible and protective to vulnerable users.
Finally, November 2020, when the Spanish Government approved the Royal Decree on Advertising of Gambling Activities (RDCC). This marked a before and after to online gambling in our country. Not only did it have a huge impact on the business strategies of legal operators, but it also made unlicensed operators more accessible to gamblers, thus leaving them unprotected in front of potentially unregulated and irresponsible activities.
The entry into force of the RDCC has been a very hard blow for all licensed operators and for the Spanish online gambling sector as a whole. From the third quarter of 2021, coinciding with the full application of all of its measures, especially the most restrictive ones, the situation has been worsening and the future prospects are not positive.
The reality is that, since 1 September 2021, online gambling in Spain is experiencing a stagnation and a recession that casts doubt on the continuity of many operators in our country. The online gambling ecosystem is unstable and tends towards chronification. Furthermore, the industry is now immersed in economic and legal uncertainty that makes it even more unappealing.
It’s not a question of sensations or opinions - the figures support our position. As reported by DGOJ (Dirección General de Ordenación del Juego, the Spanish regulator), the GGR decreased by 4.17% in 2021, compared to 2020, a year marked by the plummeting of sports bets due to the pandemic. Similarly, all online gambling categories, except casino, experienced year-on-year declines in 2021, demonstrating a downward trend in this ecosystem. And the average of new accounts fell by 9.85%. In addition to this, the drop of investment in marketing has been significant. According to DGOJ, marketing budgets in Q1 2022 fell by 27.7% year-on-year. Advertising budgets barely exceeded €34m January to March 2022, 52% less than a year ago, and investment in sponsorship was limited to €630,000, 93.25% less than in the first quarter of 2021. As a result ‘.es’ operators can no longer advertise their products as they used to and they report losses in their annual results, which, in turn, have an impact on tax collection which dropped by 31.6% in Q1 2022 compared to Q1 2021.
Unfortunately, these restrictions not only harm operators, but also the media, advertising companies and
agencies, which see a reduction in their activity and, logically, in their profits. Proof of this is the marketing expenditure, which in one year has gone from €148.37m (Q1 2021) to €107.88m in the first quarter of 2022.
Furthermore, and what’s even more important, operators also point out that users can be losing protection and security, since advertising is an essential tool to channel users to legal gambling and this situation is generating a proliferation of illegal portals in our country. As a matter of fact, and according to data from a study conducted by SigmaDos and Kantar for Jdigital, 53% of Spanish online gamblers declare to play in .es and .com domains indistinctly.
And all of this is happening while other forms of advertising for new products related to cryptocurrencies, tokens and other financial assets are now occupying the places previously used by gambling operators. Who knows whether these products, in an unprotected, unregulated framework, will have detrimental consequences for a good number of people?
Now, months after the full application of the advertising restrictions, the Ministry of Consumer Affairs is working on a modification of the Gambling Law that regulates this activity in Spain. The text is currently under review and, even though the industry will always - and has always - supported legislation that improves the security and protection of consumers, the proposed modification includes measures that are very challenging to implement and do not necessarily protect consumers, but complicate operations instead.
I would like to highlight that, at all times, the commitment of the sector, represented by Jdigital, has been key in developing and achieving responsible gambling objectives in Spain, which to this day remains one of the safest
online gambling markets in Europe.
Thus, we remain committed to a fluid dialogue with the Ministry of Consumer Affairs through the DGOJ, to working for equitable and fair regulation, to guaranteeing the rights of consumers and at the same time making them compatible with a better development of the online gambling market.
This is an innovative, modern, wealthgenerating industry, committed to the values of responsible, safe gambling and we want to continue to be so for many years to come. •
MKODO’S STUART GODFREE: PERFECTING THE ART OF GEOLOCATION
GEOLOCATION SOLUTIONS PROVIDER MKODO has been making some big strides in the igaming and lottery sectors, notably in the recently legalised Ontario market. Playing an integral role in that progression, as Managing Director Stuart Godfree explains, is the firm’s tried and tested GeoLocs platform
BY CHRIS MURPHY
SBC: For those readers less familiar with the mkodo brand, can you give us some background into the company and what it does?
SG: mkodo is an award-winning B2B supplier of mobile and front-end technology to igaming and lottery operators across lottery, casino, sportsbook and bingo. With over 20 years of expertise, we deliver bespoke mobile-first solutions, creating the best mobile apps, websites and digital user experience in the igaming and lottery industry
In 2020 we were acquired by global lottery leader, Pollard Banknote. This acquisition has reinforced our position in the market as leading experts in mobile app delivery. We do everything from designing and developing mobile apps and websites to offering a curated suite of products dedicated to the igaming and lottery industry, including our certified geolocation service, GeoLocs.
SBC: With the industry still getting back into gear after COVID, how has 2022 shaped up for the firm so far?
SG: For us at mkodo, the biggest
topic on the 2022 agenda so far has been the continued opening of the North American market. These exciting developments have seen us continue to promote and develop our suite of products including our proven geolocation platform, GeoLocs, which has been in the market for over 10 years and is built exclusively for igaming and lottery.
We’ve been busy building new networks and spreading the name and brand of mkodo and GeoLocs. A focus this year, as well as promoting GeoLocs, has been to continue to deliver the best custom content for the operators that we work with in different jurisdictions including the Rank Group’s Grosvenor Casino and Mecca Bingo brands; the Ontario Lottery and Gaming Corporation (OLG); Western Canada Lottery Corporation (WCLC); British Columbia Lottery Corporation (BCLC); and some exciting new partnerships in North America, which will be revealed later this year.
We’ve been supplying Canadian operators with apps and websites for over 10 years now, so we have great experience in dealing with the challenges of the ever-evolving landscape and North America opening up.
A FOCUS THIS YEAR HAS BEEN TO CONTINUE TO DELIVER THE BEST CUSTOM CONTENT FOR THE OPERATORS THAT WE WORK WITH IN DIFFERENT JURISDICTIONS
SBC: You’re taking your geolocation product, GeoLocs, to SBC Summit Barcelona. Can you tell us more about what GeoLocs is and how it works?
SG: We created GeoLocs in 2009, when we delivered our first igaming app, as we had to have a geolocation compliance plan as part of Apple's App Store submission requirements. Just over three years ago, we knew that we had a valuable product that we should productise and offer to operators. So, that's what we’ve done; we've taken the product effectively out of our portfolio, rebranded it, converted it into a very simple Software Development Kit, and we are now selling it as a standalone solution that all igaming and lottery operators can implement and benefit from.
The service is a location validation and regulatory platform. It works by taking the location information that we get from a device and testing it for validity (whether the information we believe is truthful). The service then uses that information to determine whether the device is in a regulated region. If the user is not in a regulated region, GeoLocs will deny access to the service.
SBC: Can you talk more generally about GeoLocs - where is it currently in operation?
SG: The most exciting market for GeoLocs right now is Ontario. We've been working with Ontario Lottery Group (OLG) providing their geolocation platform, both for their apps and their web products, for over two and a half years now. Since then, we've effectively been the only geolocation platform provider in Ontario.
Now that the market has opened up, it’s a very exciting time for us, because not only do we have a solid reputation with our partners at OLG, but we understand the market and the AGCO’s guidelines extremely well. We have a fully ratified platform that has been tested with tens of thousands of location requests an hour. So, not only
do we know that we have a product that can deal with the amount of traffic and load that a sizeable place like Ontario has, but we can also deal with all the regulatory compliance that applies in Ontario as well.
We’ve also been taking on new clients across North America, which we will announce later this year. But effectively all our clients across multiple jurisdictions are using GeoLocs in some shape or form.
SBC: What are some of the key features GeoLocs delivers?
SG: GeoLocs has had an evolution and development cycle that now spans over 12 years. So, it's a very mature product. One of the main fundamentals of GeoLocs has always
been that the product is incredibly self-serviceable. Operators can manage the product successfully without mkodo’s intervention. They can do a lot of the work that they need to do, including managing and creating geoboundaries, entirely for themselves. And that is, I think, one of its key attributes.
Another significant key attribute is that we have worked in, and approached, the product very much from the app world (geolocation is essential for igaming and lottery operators who are running apps). We have a whole set of proven tooling that helps operators to validate and test when they’re deploying this technology into the app space. It’s a genuinely seamless integration - and that's one of its main crucial benefits.
The seamless nature of GeoLocs doesn’t end there. With the service, there’s no need for users to download a companion app in order to verify location. This makes for a much smoother user experience on both mobile apps and web.
Also, the fact that it is a platform that’s now clouded, we operate it across multiple jurisdictions, multiple states across the planet, making it highly available. GeoLocs has such a high availability because we run it on both Azure and AWS Amazon Services, which gives us a great amount of flexibility and performance.
It really is a great platform. It's very easy to use. And it is without a lot of constraints and legacy that many other geolocation vendors, with whom we compete, carry. I think many of our customers and future customers will be delighted to be working with GeoLocs.
SBC: What are the big geolocation challenges currently, and do you think the industry is doing enough to address them?
SG: When it comes to geolocation, there are a few challenges I can think of that the industry is currently facing. One being that there has only really been one supplier in the market, meaning there hasn’t been much choice for operators. With the introduction of GeoLocs, and other competitors in the market, operators are starting to have more choice around who they want to partner with and what’s important to them from a geolocation supplier.
Since GeoLocs is dedicated to the igaming and lottery sector, we truly understand the needs of operators when it comes to geolocation in terms of the various regulations and jurisdictions. This is important when looking for a geolocation provider as the different frameworks within various regulations and jurisdictions can be complicated to manage. So working with a partner who is dedicated to the industry and understands the market is invaluable.
SBC: What are the biggest changes you’ve seen in geolocation technology recently and how are they benefitting both operators and the end user?
SG: Some of the biggest changes we’ve seen in geolocation more recently is how the technology can (and is) being used, not just for compliance, but for customer engagement and targeted marketing too.
Geolocation technology, such as what we use for GeoLocs, can also be used by operators for locationbased marketing. This works by targeting players in a specified region with promotional offers and marketing comms. For example, if a player happens to be in or near an operator's shop or casino, geolocation technology can be used to send at a rapid rate, offering all our products and services to the igaming and lottery industry from geolocation to bespoke apps built on a white label framework. There’s a continued focus on our core offering of delivering the best-in-class, customised casino, sports betting and lottery apps. We're also working with
a number of new clients who are big names in the industry.
Not only that, but we’ve also seen an increase in the number of operators interested in our consultancy services. We have been providing our expert insight on everything, from app store guidelines to improved user experience and interface. •
WITH THE INTRODUCTION OF GEOLOCS, OPERATORS ARE STARTING TO HAVE MORE CHOICE AROUND WHAT’S IMPORTANT TO THEM FROM A GEOLOCATION SUPPLIER
notifications about offers. This helps to increase overall engagement of players. And players benefit by learning about marketing information that’s personalised and relevant to them.
SBC: Geolocation aside, what other areas of the mkodo business can we look to for new developments and innovations?
SG: We’re continuing to grow
VIENA WROBLEWSKA: LET ME TAKE YOU BEHIND THE SCENES OF LANGUAGE LOCALISATION
WRITING FOR SBC
LEADERS, the Owner of APlus Translations gives her tips for finding a truly localised translation service, explaining how a good translation can translate into more players
BY VIENA WROBLEWSKA
Call me weird, but I hate long weekends. I dislike those three-day breaks because it means no, or certainly fewer, emails from folks around the world that we collaborate with. Working with over 100 linguists and dozens of clients from literally every little corner of this planet is exhilarating. It makes me feel connected.
And so, when it comes to language localisation, I know my stuff. This year, my company APlus Translations celebrated its 20th anniversary. I will always know how old my company is, as I launched it the same year my son was born. The company, too, is like my baby.
I started out in my mid-20s, as a polyglot and translator myself. I had studied three foreign languages, which along with my native Polish, and then English of my adopted country Canada, took my language count to five.
Languages and foreign cultures have been an absolute passion throughout my life and so, I got my ducks in a row and by the time I was 27, APlus Translations was born. It felt like a natural progression. And it’s been an exciting ride. My team of project
managers and I have seen companies grow from concepts to gazillion-dollar sales.
We have accompanied sports betting, poker and slots companies on their journeys into one new territory after the next, as they conquer new markets. It’s been gratifying to see them succeed, and obviously, succeed with them.
But this article is not just about my company.
Indeed, I want to share some of my expertise and give you guidance in case you are or will be, one day, contemplating localisation for your product. Or, perhaps, you already work with a localisation partner and want to know what the heck goes on behind the scenes with your content. Maybe you never understood why it carries the price tag that it does. Or you could be confused by CAT tools, translation memories and machine translation. Well, let me take you by the hand and give you a little tour, explain a few things about localisation (which is a more sophisticated cousin of language translation).
First, you’ve got to treat localisation as an elemental part of your development.
Too often, localisation is an afterthought. But you need to program your game in such a way, using folks with localisation engineering experience, as to accommodate the idiosyncrasies of foreign languages. English, in my opinion, is quite simple
in its grammatical structure. But this is not true for dozens of other languages, including several European ones. So, do your due diligence. Get the coding right from the get-go. It will really save time and sweat down the line.
When selecting a localisation partner, be concerned about cost, but please, please, don’t ride the cheapest car!
Trust me. I’ve been in this business for over 20 years now. I’ve seen what the low-end of the language service spectrum means. I know that good translators, the folks whom you really want for your precious content, who know the right terminology and know how to craft YOUR message in their language, they value themselves enough to demand a fair rate.
Let me tell you, if a localisation agency comes to you with a rate significantly lower than others, I guarantee, you are getting a mix of machine translation/substandard translator + proof-reader. Or no proofreader at all. Period. There is no other way around this. I know what good translators demand for their work.
Speaking of machine translation, at times use with caution, other times, avoid!
What I mean by that is that machine translation technology can be useful at times. For some type of content, it is quite adequate, but definitely NOT for in-game texts. When you craft - because it is crafting and not just
writing - your game text, you want to be engaging, right? You want players to choose your platform and to keep using your platform. You want that for your English-speaking audience, and you should want it for your nonAnglophone audience. Automated or machine translation gives results that are stilted. They won’t engage and entertain. Make sure you hire a service that uses human translators. It will be pricier but really pays off.
And do not rush it!
Ok, sometimes you run into trouble and need a last-minute job. That’s fine. But try to give your localisation partner as much time as they request to run your content through a proper quality process. We all know that quality takes time, so consult with your localisation provider to find out how much time they need to do their top job.
From my experience at APlus, every single piece of content, big or small, is reviewed by three pairs of eyes. First, the translator needs to spend a solid amount of time to properly translate the text. That translation is then reviewed by a proof-reader, who may have some back and forth between the translator and themself. Once the two have agreed on their “final” version, it is then checked by your dedicated project manager at our company. Consider that all these people might be in different time zones around the world, which means more time added to the process.
Just as a little example of how long a translation can take. Years back, when I was working as a translator myself, some slogans came across my desk. One of our clients was rebranding and needed to translate some catchy phrases. If I recall correctly, it was about four slogans that I needed to take care of, and it took me the better half of a day to do it! That is a bit extreme, but it really happens, so if your provider is asking for a minimum fee to translate a piece of creative text, it’s a good sign. It means they are really aiming to do a proper job.
A word in one language doesn’t say the same thing in another language. Language localisers have to create. They need to take a leap from the text they are presented with to render the meaning in their native language, using the same catchy fashion. It isn’t easy. And again, it takes time.
Try to stick with the same localisation partner for the long-term
Unless your experience with a provider has been riddled with issues, errors, and oversights of all types, allow them to iron out minor wrinkles as they come up and stick with the same provider. There are a couple of good reasons for that.
Mainly, the provider is accumulating a database of all translations done for you in what’s called a translation memory (aka TM). The more work you do with them, the more leverage you get cost-wise and consistency-wise. Having said this, a Translation Memory, this DB holding all that multilingual content, is typically considered the client’s intellectual property, unless you signed those rights away. That means you can move to a new localisation provider and demand that the old provider you are moving away from give you the TM for each language you paid them for. It should be a seamless process. And one hopes that the new provider will be willing to work with the TM.
Secondly, if you are going to stay with a provider, another good reason for that is that you get the consistency of linguists. What I mean is that an agency may be using the same translator for your content over and over again, which is a good thing. You want that uniformity of style and voice.
Before I sign off, I want to stress
again that quality really is everything when it comes to localisation. It’s your image. Good translation translates to more players. So, it’s worth a good investment.
To engage with us on any question related to translation, localisation or even language-learning (my count is now seven!), I invite you to connect with me at viena@aplustranslations.com. •
APlus Translations is based in Vancouver, Canada, but has offices in Europe and Peru. We localise in over 40 languages and have worked in the igaming space for over 13 years. We excel at game texts, marketing and regulatory documentation within this industry.
A SHAKE-UP OF GAMBLING’S M&A STRATEGY
OVER THE LAST FEW YEARS, the gambling industry has significantly ramped up its M&A activity with big names vying for greater market share. But as a post-COVID recovery period takes hold, can investors throw caution to the wind and continue on this acquisition spree, or is a more conservative approach required?
BY TED MENMUIR
In the space of 12 months, the lexicon associated with gambling’s merger and acquisition strategy has been turned on its head as the reality of a global economic slowdown dawns upon all business sectors.
Previously, this M&A spree was described with words such as frantic, frenzied and feverish. But as we progress through 2022 this has shifted slightly - with cautiousness and constraint becoming much more apt as economic consensus points to a longterm global recession.
We’re now beginning to see the hangover from 2020 and 2021 take hold - two pandemic years in which the unscarred online gambling PLCs announced record results, inflated their corporate valuations and consequently deepened their cash balances. Something tells me that a paracetamol and a litre bottle of Lucozade won’t quite do the trick in easing the headache to come.
Robert Willis, Partner and M&A advisor at CMS Law, appears to agree, warning “that a careful reflection is needed in those hedonistic times”.
“Gambling was part of the most active global M&A stand ever seen,” Willis recalled. “This was a period that saw 60,000 public and private deals announced across all business sectors, with total transactions valued at approximately £5tn.
“It was recognised that there would be a slowdown in 2022, but M&A dynamics have now completely changed.”
Of significance, Willis stated that the appetite for M&A has indeed been subdued across all markets. He disclosedthat six months on from the pandemic, business and investors must now “factor in inflation, raising interest
Robert Willis, Partner and M&A advisor at CMS Law George Fleet, Head of Advisory, Canaccord Genuity
rates, combined with lower stock prices, a market-wide tech sell-off and complex geo-political affairs involving Ukraine and Russia”.
Focusing on the gambling industry in particular, the sector’s investor deck of private equity, venture capital, hedge funds, SPACs and private owners has been forced to revise investment strategies.
This has seen many investors picking companies that they believe can maintain growth amid a multitude of economic headwinds.
These last eight months alone have seen anxieties over a global economic downturn impacting gambling M&A activities. One of the most significant examples can be seen in the financing of the acquisition of William Hill’s nonUS assets by 888 Holdings Plc and the failed takeover of Playtech Plc by Asian investor TTB Partners.
Announced in the summer of 2021 as a transformative deal for 888, one that significantly enlarges its UK and European business, the FTSE250 firm's
takeover of William Hill offcuts soon turned into an arduous affair.
This required the initial deal to be revised after underwriters JP Morgan and Morgan Stanley failed to convince investors to guarantee 888’s £1bn debt bond - the figure required to finance the transaction.
Playtech’s takeover has not been plain sailing either. In a high-profile drama that would rival any UK soap opera, the firm announced that Hong Kong investment fund TTB Partners
had failed to meet its deal deadline, citing that it could not raise capital due to “challenging underlying market conditions”.
TTB’s rejection placed a significant strain on Playtech’s board and investor relations, as shareholders had been advised to reject a previous £2.2bn deal offered by Aristocrat Leisure.
Having observed how both deals played out, George Fleet, Head of Advisory at Canaccord Genuity, believes that 888 and Playtech’s laborious M&A hardships clearly signify “the current blockages in the market”.
He explained: “The transactions that are underway will most likely get done. There is still an appetite to acquire better businesses, even if credit is more expensive.”
Looking at the deal-making side of each agreement, Fleet noted that operators, shareholders, capital sponsors and potential buyers would face a certain impasse on corporate valuations of gambling enterprises.
“The challenge will be as they start to look forward. The key blockage is that there is a clear mismatch between buyers and sellers,” he added.
“Sellers will still be locked into pricings that are six to 12 months older than what they could have had, whilst buyers are looking at current valuations and current multiples against what is happening now.”
Whilst a stand-off on corporate valuations will slow down the industry’s competitor buyouts and further SPAC deals, Fleet shared the view that conditions now favour large private equity and hedge funds. These, he said, include the likes of Blackstone and CVC Capital “who have large gun powder reserves” to expand their gambling portfolios.
Fleet also predicted that the wider gambling industry should prepare for a change in the makeup of its dealmakers. He explained that regardless of regulatory judgements across multiple jurisdictions, “gambling holds traction with the community of private equity and hedge fund sponsors”.
He said: “Invariably, gambling has strong cash generation and has demonstrated good growth as a sector. Meanwhile, there is still a good pool of entrepreneurs that want to sell their businesses.”
Whilst PLC shareholders might have previously favoured strategic likefor-like M&As focused on synergy creation and business enlargement, Fleet suggests that economic realities will see private equity funds dominate deal proceedings as shareholders continue to take the view that “cash has become king”.
“The large private equities won't struggle with cash, the challenge for them will be securing credit lines from banks, which have become more expensive,” he reflected.
“In a difficult market, with hard to predict outcomes, shareholders will likely want flexibility on deals that PE and hedge funds can provide, over strategic party’s standard takeout and incentives on creating a new business.” •
