Casino

WHAT DOES THE FUTURE HOLD FOR ONE OF EUROPE’S NEXT BIG OPPORTUNITIES?

THE LONG-MOOTED

TRANSFORMATION of the Netherlands’ digital marketplace is finally upon us, and with it comes a multitude of opportunities in what is viewed as one of Europe’s next big opportunities

BY CRAIG DAVIES

After commencing a longawaited licensing window on April 1 2021, Dutch gambling’s new regulated online ecosystem is due to officially begin from October 1 2021, with the intention of channelling players from illegal providers to legally reliable entities.

As the biggest operators line up for entry, and with the country being on the wish list of many for a considerable time, Peter-Paul de Goeij, Managing Director of the Netherlands Online Gambling Association, issued a note of caution at this year’s CasinoBeats Summit that the country represents a “great opportunity” but at the same time “will not be easy and will not be for the faint hearted”.

A further point of concern highlighted at the hybrid in-person and digital

event for online operators looking to enter the market is a tax burden of 29% on GGR, with de Goeij adding that, when compared with other European markets, the Netherlands is “lagging behind”.

However, this also doesn’t factor in a market that is well versed in land-based slot play, and a potential challenge concerning where players will choose to play once the market opens up.

“A new regulated market will mean changes to the choice of brands and products available to slots players,” explained Chris Looney, Chief Commercial Officer of Bragg Gaming.

“There are very well known and established land-based casino brands who are now able to apply for a licence and enter the online space for the first time.

THE NETHERLANDS HAS BEEN A MAJOR ONLINE CASINO MARKET FOR YEARS ALREADY

“They bring huge brand recognition and their own databases of customers to whom they will soon be able to introduce their online casino experience for the first time.

“The same is true for established sports betting brands in the market. For the first time they can launch online casino as a cross-sell product to complement their core business, a model which has seen huge success in the UK.

“It’s also working the other way, for example Holland Casino has just struck a four-year sponsorship deal with the top tier Dutch football league, the Eredivisie marking the start of a new era in the above the line visibility and expected popularity of online casino in the Netherlands.

“While for some players, casino games will always be associated with landbased venues, let’s not forget that the newly regulated online market is not going to be the first ever taste of online casino for the digital generation.

“The Netherlands has been a major online casino market for years already, so players for the most part don’t need introducing to the concept of playing slots online. Furthermore, during the past 18 months or so of COVID-induced land-based closures, more players than ever have been exploring online options when it comes to casino gaming.”

Agreeing with Looney, Julie Allison, Director of Markets at Microgaming, discusses the rapid growth of digital play among a “very mobile savvy” population.

“Online gaming is one of the Netherlands’ fastest-growing industries, and we know that players enjoy classic style slots like their land-based counterparts, so there’s an opportunity to showcase a classic style of slot to players and create similar games for the market while also showcasing our diverse portfolio and attracting new players.

“Also, with progressive slots allowed under the new regulation, we’ve ensured that our initial offering includes access to our progressive jackpot network with popular Mega Moolah and WowPot jackpot titles.

“On top of the 100+ certified games that will be available when the market opens in October, we’ll be releasing new games to our customers weekly in line with their global release.

“The Dutch are very mobile savvy already, so we can expect to see a large proportion of them playing slots

THE DUTCH ARE VERY MOBILE SAVVY ALREADY, SO WE CAN EXPECT TO SEE A LARGE PROPORTION OF THEM PLAYING SLOTS ON THEIR PHONES AND TABLETS

on their phones and tablets. Each new release via Microgaming’s platform is optimised for mobile so those that will play on their smart device won’t be missing content from us.”

Among the optimism that numerous individuals have expressed in the build up to the Netherlands’ big day, the prediction that further regulation is an inevitability has also been conveyed.

With this in mind, Allison moves on to assess how the Dutch model compares with markets such as Sweden and Germany, which have undertaken their own regulatory manoeuvres in recent times to much criticism.

“All regulatory changes are opportunities to learn and improve for the next market,” she says. “There’s no perfect regulatory system, but they are all underpinned by the same common intent to create a safe and enjoyable experience for players while ensuring a viable framework for business to thrive. Microgaming fully supports regulation – it’s the future of our industry.

“The regulations that the Kansspelautoriteit will be introducing when the Netherlands market opens on October 1 appear to be well-rounded and forward thinking, taking the current online gaming trends into consideration.

“With player protection and commercial growth at the heart of the new regulatory framework, we believe online gaming has a bright future in the Netherlands for both consumers and suppliers.”

Examining the important lessons

to be learned from fellow European jurisdictions, Looney concluded: “The casino industry is used to adapting to different regulatory models, and we have already ensured that we are technically compliant in preparation for the Dutch market opening.

“In many ways the regulation is not unlike the UK, with high levels of player protection as you’d expect in 2021, such as reality checks and clear displays of information like the certified returnto-player values of each game.

“At 29% of gross gaming revenue, the new gaming tax is higher than in the UK or Sweden but nowhere near as high as the new and controversial 5.3% wagering tax in Germany. In the Netherlands the regulations are closer to what we already work with in other regulated markets.

“I would just add that as a supplier to the online casino industry, in any market we welcome regulation that protects the player, is fair and workable for the industry and is properly and uniformly enforced. Hence, we are present in multiple regulated markets with plenty more to come.” •

THERE’S NO PERFECT REGULATORY SYSTEM, BUT THEY ARE ALL UNDERPINNED BY THE SAME COMMON INTENT TO CREATE A SAFE AND ENJOYABLE EXPERIENCE

IN MANY WAYS THE REGULATION IS NOT UNLIKE THE UK, WITH HIGH LEVELS OF PLAYER PROTECTION AS YOU’D EXPECT IN 2021

LIVE CASINO: PROVIDERS NEED TO EMBRACE A NEW KIND OF DISRUPTION

IN AN SBC LEADERS ROUNDTABLE, experts from the casino industry share their thoughts on the seismic shift from land-based to online, the big powerhouses in the European market and why innovation is the ‘life blood’ of live casino

BY JAMES ROSS

For well documented reasons, and ones which we’re all quite frankly tired of hearing about, the last 18 months has witnessed a major shift within the igaming sector from land-based to online.

One of those verticals which has been enhanced due to the global shift has been live casino, as companies throughout the industry trialled various alternatives to try and replicate the land-based experience from the comfort of players’ homes.

SBC: As we begin to approach a new sense of normality following the pandemic, what teachings have been learnt in relation to live casino?

Ulf Norder, CCO at QTech Games: Since the outbreak, and throughout the peaks and valleys of various global lockdowns, the rise of live casino has been there for all to see.

While the transition from land-based towards digitised entertainment was already clear, COVID-19 had a catalytic effect in our sector, strengthening this tide towards digital. And, of course, as the virus closed casinos, or made people far more reluctant to venture out because of the risks, it was incumbent on QTech Games to deliver a high-class live casino product for our partners and their players.

That meant offering relatable gaming experiences to players from the comfort of their homes or on the move via mobile. We anticipated the demand with two cornerstone integrations in the past year from Evolution and Ezugi’s state-ofthe-art live studios.

Ulf Norder, CCO at QTech Games Amy Riches, Head of Marketing at Evolution Utku Sarper, Business Development, TVBET

Market-leading customisation options, dedicated tables and native speaking dealers also make it far easier to customise the experience to any specific market needs.

Strong growth in the live casino vertical has continued in the face of the pandemic’s fluctuating lockdowns and challenges, and we’re thrilled to see how our games are performing across a range of emerging markets from Europe to Asia.

Ultimately, habit formation around this gaming vertical proves players are still eager to channel the visceral thrill of participating in a real world casino, not to mention the chance for some long delayed social interaction with the dealers themselves.

Amy Riches, Head of Marketing

at Evolution: The pandemic has undoubtedly affected the industry in many ways, and in order to continue developing and releasing new products we quickly adapted our operations and created contingency plans, so that we could first and foremost ensure the safety of our people.

We also had to ensure continuous delivery of our products, excellent levels of customer care to our partners and continue to provide an excellent gaming experience to players. Although it was a complicated process, everyone came together as a team and it was through this teamwork that made our success possible.

We continued to see high demand for our products throughout the pandemic – it really indicates just how strong our customer base is, and that we are in a resilient industry that can adapt quickly and continue to provide the very best of player experiences. What it has highlighted however, is the need for providers to appeal to entirely new player bases and provide operators with cross-selling tools.

The industry needs to continue to be innovative, to adopt new types of technologies that will attract more than the experienced player but will entice those that may have never stepped foot into the live casino arena before.

Innovation has always been and will remain crucial, and providers need to embrace a new kind of disruption. We’ve already seen an increase in popularity for more immersive titles, titles that are entertaining to every type of player.

Through the inclusion of advanced technology, such as RNG, virtual reality and bonus games, providers will be able to attract a wider range of players that will ensure that it can continue to remain a robust and resilient industry.

Utku Sarper, Business Development,

TVBET: During the world pandemic players started shifting to online, which boosted the growth of online live casino sector, as a substitute to a land-based experience.

Players started discovering the approach of online casino brands with regards to deposit bonuses and free play promotions which are not available at land-based casinos. Our main focus has been on how to reward players through the deposit/welcome/free play bonuses to retain profitable players.

THROUGHOUT THE PEAKS AND VALLEYS OF VARIOUS GLOBAL LOCKDOWNS, THE RISE OF LIVE CASINO HAS BEEN THERE FOR ALL TO SEE

SBC: In regards to live casino, which European market will be the next powerhouse? Who will be on the ‘oneto-watch’ list and who do you think will suffer in a post-pandemic world? Explain your answers.

Ewelina Antonakos, Head of Sales and Business Development at TVBET:

It’s difficult to point out one specific European market. Surely retail and land-based casinos are suffering mostly and quickly shifting to online.

In Europe, we do not have such issues as bad internet service or no access to modern devices that punters can use to place bets (as more common in LatAm or Africa), therefore the shift

Ewelina Antonakos, Head of Sales and Business Development at TVBET

I AM BETTING ON THE NETHERLANDS AS A MARKET THAT WILL BE MORE PERCEPTIVE TO LIVE CASINO CONTENT

is faster and more apparent.

This year we have two new markets in the spotlight and being regulated - the Kingdom of the Netherlands and Germany. We need to take three things into consideration: 1. Size of the market; 2. Regulation. 3. Players preferences.

Germany is obviously a much bigger market so potential revenues will be higher. However, the new regulation might be too over-engineered, this might impose different restrictions on types of games allowed for online.

I am betting on the Netherlands as a market that will be more perceptive to live casino content as well as the fact that the regulator is putting the consumer first, which might allow more diverse content.

At the same time I’d say that the biggest suffering was also brought on to these two countries. The pandemic stopped land-based operations, and due to the yet unregulated market, people had no alternative.

Ulf Norder: As this global pandemic has proved by its very occurrence, predictions are for the birds!

Still, there are some key differences between Europe and Asia from QTech Games’ own aggregator and distribution perspective.

For the most part, I’d say in Europe that many smaller studios enter large operators via an aggregator due to integration complexity and licencing expenditure. Operators in Asia, though, typically utilise aggregators because they then obtain a lot of varied content from one supplier.

On top of that, European studios can be somewhat more reluctant to devote two or three years before their Asian sales generate appreciable revenues.

Joe Pisano, CEO at Jade Entertainment

SBC: How innovative is live casino currently and what improvements will technology bring in the not so distant future?

Joe Pisano, CEO at Jade

Entertainment: We saw the first live casino back in 1994. Naturally, though, as technology evolves, so do live casinos and games. The expected global roll-out of 5G networks, as well as AR and VR technology, will breathe new life into live casinos. That goes

AS THIS GLOBAL PANDEMIC HAS PROVED BY ITS VERY OCCURRENCE, PREDICTIONS ARE FOR THE BIRDS!

double for 5G technology.

In the new world, as we are becoming more isolated, having a bridge between land-based properties and live casinos will give players the ability to interact with other players.

Furthermore, it will provide a sought-after space where players can build their avatars and, for the land-based properties, it will enable them to engage far greater numbers of customers and keep the doors open during uncertain times, as we’ve obviously just observed with the global pandemic.

Amy Riches: Innovation is the life-blood of live casino. It’s one of these industries that just doesn’t slow down – because it physically can’t.

While most of the technology we use tends to be obscured from players, there are some advanced technologies that are coming to light that could be really exciting when applied to the iGaming industry.

We’ve been watching virtual reality technology for a while, and we already employ artificial reality in our games. This is something that players love, and we’re looking forward to continuing to experiment with this kind of technology in the future.

But we’re always on the lookout for new ideas that push the boundaries of the iGaming industry – everything from augmented reality, slots-style features embedded into live games, to the intricacy of studio builds.

When it comes to the technology that players don’t readily see, enhancing detection and monitoring tools should always be a big focus for any provider. It’s a cyclical process, and it never really stops.

The Game Integrity and Risk function plays a vital role in developing marketleading live casino games, ensuring that Evolution maintains its ‘As Real As It Gets’ user experience edge, while keeping the game protection shield on.

The innovative game titles launched by Evolution have disrupted the game protection vertical as new products bring new challenges.

We use the same innovative approach in Game Integrity and Risk that we use when we are designing a game – as we are creating world firsts, we also create world firsts in this area too and that’s an avenue where we see new technologies bringing an impact as well. •

ARE STREAMERS JUST A NEW TYPE OF AFFILIATE?

IN THE LATEST EDITION OF THE 100 CLUB, CasinoBeats looked into the latest rising star of affiliates in the form of slot streamers and why this can be a great way to reach new demographics of players

BY JAMES ROSS

The use of slot streamers has been on the rise in the last few years, and this trend is showing no signs of slowing.

Streamers can play an important role as ambassadors for brands, promoting new titles and giving them visibility among the crowd of releases each week.

So CasinoBeats quizzed its CB100 club members on what they think of this new form of affiliation. They asked: Delving 5-10 years into the future, what kind of influence will the streamer community have on the industry?

One of the CB100 members, Fiona

Hickey, Head of Sales at Push Gaming, emphasised that when it comes to streamers the industry needs to remember that “they are just the newest type of affiliates”.

“Affiliates have been in the space as long as there has been an igaming industry,” she explained. “Whilst many tier one organisations such as Sky Bet and bet365 have stopped acquiring

AFFILIATES/STREAMERS ARE HERE TO STAY AND THEY HAVE A SERIOUS INFLUENCE ACROSS THE INDUSTRY

customers largely through this form of acquisition, many of the up-andcoming operators work very closely with affiliates of all types, including streamers.

“Affiliates/streamers are here to stay and they absolutely influence players and have a serious influence across the industry.

“Over the next five to 10 years, I do expect to see more stringent measures/restrictions imposed on streamers to tie in with a brand’s values and responsible gambling approach.

“I can also see more operators and indeed suppliers having their own inhouse streamer team/partnership.”

Another member, who posted anonymously, referenced that streaming is “extremely popular” in esports with different betting opportunities for the events around it.

They stated: “Fans can bet on entire tournaments, players, battle royale

outcomes, speedruns and much more. However, current sports betting operators aren’t as prevalent in esports and don’t focus on it as much as they do on football or other popular sports.

“The gaming audience tends to differ from the traditional sports fans, so the approach to attracting them needs to be relevant too. Yet, there’s still a crossover between the two in the way that high profile streamers monetise their content and form brand partnerships within their respective industries.

“Esports streamers have been partnering with companies selling energy drinks, clothing, tech equipment and other merchandise relevant to gamers. It’s very common and accepted among the esports community, and they’ve been doing it on platforms like Twitch to monetise what they do. This way, there’s been a greater involvement for these brands in the esports industry, enabling them to reach wider demographics beyond sponsoring a game.

“There are also streamers within sports and gambling. For example, football fans have been creating content, reviewing matches and football news. Many content creators are sponsored by betting apps that are mentioned in their predictions, so there’s already some similarities amongst streamers.

“On the other hand, there’s also a growing number of online gambling

THE GAMING AUDIENCE TENDS TO DIFFER FROM TRADITIONAL SPORTS FANS, SO THE APPROACH TO ATTRACTING THEM NEEDS TO BE RELEVANT TOO

streamers, playing slots with high stakes. If esports is a game of skill and can offer lots of valuable information for the viewer, then the slots streamers come across like they’re showing off how much they can spend, as there’s no skill whatsoever. This type of content doesn’t support responsible gambling, so it might not have longevity or great sponsorship opportunities for operators.

“It’s likely we’ll be seeing more streamers forming partnerships with

I SEE THAT THE FUTURE IS BRIGHT FOR THE STREAMERS, AND THERE ARE MANY MARKETS WHERE THEY ARE STILL NOT DISCOVERED YET

online gambling operators in the future, especially as brands create more relevant products and content for them.

“Streamers will likely be more interested in these partnerships and it will be a great way of including online gambling in their content. What’s important is creating something that is inclusive of the esports market and makes sense for them to participate in.”

One member of the CB100 club was

Dmitry Belianin, CMO at PMI. He stated that any interactive content, and content that engages viewers, will “thrive”, pinpointing Netflix’s interactive movie – Black Mirror: Bandersnatch.

He explained: “As for streamers, it is a bit of a mix of influencers and brand ambassadors. And a role model as well. The power is in the community. They can drive masses to any brand at any time. They can promote new games, show new mechanics, engage users in the upcoming promotions, discover new products.

“The way people are enjoying streams is bound in the core of why people are gambling – emotions. And the way you see current streamers are broadcasting – they do bring a lot of fun, joy, and exciting emotions.

“I see that the future is bright for the streamers, and there are many markets where they are still not discovered yet, and it is a big new niche.”

Rory Kimber, Account Management and Marketing Director at 1X2 Network, expressed his belief that streamers are a “great way to build brand awareness” of a new title to an engaged community of potential new players.

He noted: “It’s brilliant to see a game

COMPLIANCE WILL ALSO PLAY A LARGER ROLE WITHIN THE STREAMER COMMUNITY

that you’ve worked so hard to build come to life in such a fun environment. That level of excitement is undeniable but when talking about influence, I’m not so sure. “Affiliates have long played an integral role in the success of an operator and consequently a game studio. We work with a large number of affiliates including streamers and they all have a different approach to marketing games and also a different audience.

“If we were to look at streamers today and only be concerned with the numbers, then arguably, they don’t really hold too much influence because quite often, the numbers don’t stack up, but if this was to change or be

STREAMERS ARE AN EXCITING AREA OF THE INDUSTRY TO KEEP AN EYE ON

refined in some way – then yes, streamers would definitely be an essential marketing/acquisition tool.

“I also think that compliance will also play a larger role within the streamer community which might make marketing of games more restrictive as regulation continues to tighten. I don’t think they will have any larger influence than many other marketing channels but it’s an exciting area of the industry to keep an eye on.” •