SBC Leaders Issue 19

ISSUE 19 • MARCH 2022 A CHANGING LANDSCAPE

Preparing for a UK gambling overhaul

EMPIRE STATE OF MIND

New York: the next powerhouse?

A NEW REALITY

Tapping into the metaverse SHAPING SUCCESS

Differentiation in Latin America

Pontus Lindwall

BETSSON

Leading through industry change

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6-27 Sports Betting

• Pontus Lindwall: positioning Betsson as a leading technology company • Assessing the technical reforms of 2005 Gambling Act • Honoré Gaming: creating the next boom in the African market

CONTENTS MARCH 2022

• Bayes Esports and ESL Gaming: professionalising esports beyond data distribution • Sportradar: taking virtual sports from a ‘nice-to-have’ to a sports betting ‘must-have’ • Abelson Odds: the thriving role of stats betting • Freddie Longe: how IMG ARENA is paving the way for new revenue streams

28-38 North America

• NY: the next powerhouse?

• Can sportsbooks afford to be ‘late to the party’?

• Canadian Gaming Summit

39-45 Latin America

• Kym Sleezer: how will differentiation shape success in Latin America?

• A deep dive into the Latin American opportunity

46-53 Casino

• Metaverse: the next frontier for online casino?

• Paul Malt: calling the industry to account on slot design

54-60 Payments

• Mikael Lijtenstein: setting sights on further European expansion • Payment processing: a challenge for player acquisition?

61-67 Lottery

• Taking the UK National Lottery into a new era • Niels Onkenhout: taking a uniform approach to player protection

68-72 Events

• Enrico Bradamante: sun, Sea, Slots and Summits in Malta

The SBC Leaders Magazine is brought to you by SBC - Sports Betting Community: EDITORIAL TEAM: Erin Gallagher, Andrew McCarron, Craig Davies, Ted Menmuir, Joe Streeter, Chris Murphy, James Ross, Lucia Mouriño, Conor Porter, Charlie Horner, Jessie Sale, Mollie Chapman, Fernando Noodt Molins SALES TEAM: Rasmus Sojmark, Alyona Gromova, Conall McCabe, Jan Kowalczyk, Richard Deacon, Bob McFarland, Tom Bullen DESIGNED & DELIVERED BY Better Mags (bettermags.co.uk) All material is strictly copyrighted and all rights are reserved. No part of this publication may be reproduced in whole or in part without the written permission of Sports Betting Community Ltd. Although every effort has been made to ensure the accuracy of the information contained in this publication, Sports Betting Community Ltd cannot be held responsible for any errors it may contain. Sports Betting Community Ltd cannot be held responsible for the loss or damage of any material, solicited or unsolicited. The views in the publication are not necessarily the views of Sports Betting Community Ltd or those of the advertisers.

Produced and published by Sports Betting Community Ltd REGISTERED ADDRESS: Sports Betting Community, 103-105 Brighton Road, Coulsdon, Surrey CR5 2NG, UK TEL.: +44 (0) 161 367 1250 EMAIL: sales@sbcgaming.com WEB: www.sbcgaming.com

sbcmagazine.com 3

INTRO Erin Gallagher

SBC Leaders Editor

W

elcome to Issue 19 of SBC Leaders Magazine!.

For the last few weeks, this introduction has been written and rewritten countless times as I tried to find a funny or witty angle to start off the first magazine of 2022.

But really, there was an obvious topic to address - and that is the situation in Ukraine.

We’ve all seen the news coverage and devastation that continues to take place, and I think an overwhelming majority of us would agree that no person should ever be faced with the prospect of fleeing your home.

It has been bittersweet to see the work that industry leaders are doing to raise awareness of, and funds for, the ensuing refugee TECHNOLOGY crisis. I think I speak for everyone at SBC when I HAS PLAYED AN say we are keeping the INTEGRAL PART IN people of Ukraine in our REVOLUTIONISING thoughts and prayers.

For this magazine, I THE WAY WE ACCESS ENTERTAINMENT wanted to shine a light on the positive goings on from across the betting and gaming industry. In an exclusive interview with SBC Leaders, Betsson CEO Pontus Lindwall reflects on the ups and downs of his career in the betting and gaming industry.

From the creation of Net Entertainment (which later became NetEnt), to establishing Betsson as an industry leader, he explains how technology has played an integral part in revolutionising the way we purchase products and access entertainment.

But while using technology is more of a chore for some - by some, I mean me - others view it as a gateway

4 SBC LEADERS • MARCH 2022

to explore new versions of reality.

That was particularly apparent in our roundtable on the growing potential of the Metaverse.

We quizzed figureheads on the implications that the Metaverse can have on the gaming sector, an industry which is very firmly rooted in the real world. We found out that this new technology will blur the lines between real life and cyberspace through virtual and augmented reality.

For those technophobes among you, have no fear, this edition isn’t all just about technology as Triple Ripple Group President and CEO Kym Sleezer asks how differentiation will shape success in Latin America in 2022.

Over in our US section, we ask whether first mover advantage is the be all and end all for success in the postPASPA market, or whether sportsbooks can afford to be ‘late to the party’.

AstroPay CEO Mikael Lijtenstein sets his sights on further European expansion, as he explains why an in-depth knowledge of individual markets is needed to navigate an ever-changing payment landscape.

Meanwhile our lottery section takes a look at the fourth national lottery licence competition, assessing the contenders’ chances of winning.

As a Mancunian, sunshine is somewhat of an alien concept to me.

So for those of you like me who are longing for a bit of time in a warmer climate, we round off Issue 19 with a preview of our upcoming CasinoBeats Summit Malta which takes place at the InterContinental in St Julian’s, Malta on 24-26 May. Enrico Bradamante, Founder and Chairman of the iGEN trade association, explains why Malta is the ‘place to be’ for gaming companies, and why gaming conferences are one of the things that makes island unique and successful.

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Revolutionising the betting sector

PONTUS LINDWALL: POSITIONING BETSSON AS A LEADING TECHNOLOGY COMPANY THE BETSSON CEO walks us through the ups and downs

of his career, building the company into a global technology brand and how the growing influence of the internet has revolutionised the gambling industry

BY ERIN GALLAGHER

T

he gambling industry has changed substantially over the last few years, most notably with the growing influence of the online sphere on how we consume information and entertainment.

Speaking to SBC Leaders, Lindwall explained that when he first entered the online gambling industry in 1996, the sector was very much in its infancy. But fast forward 26 years and the internet has become an integral part of our daily lives.

He began: “I first entered the online gambling industry in 1996 but there wasn’t really an industry to speak of at that time. That is why I founded Net Entertainment – which ultimately became NetEnt – so that I could establish a business that offered internet gaming.

“I could see huge potential for this, but we had to do everything from the ground up. This meant building a team, developing the software and creating the games.

“A couple of years into doing this, I realised we could resell our platform and games to other operators and that is when we established a B2B division and we eventually distributed Net Entertainment to our shareholders.

Although Betsson Group’s origins started in 1963, the company started operating online in 2000.”

In the early to mid-nineties, Lindwall

6 SBC LEADERS • MARCH 2022

continued, very few internet-based companies - if any - were operating in the black.

But by drawing upon his background in technology, and his strong knowledge of the gambling industry, the CEO believed that this was a sector which had huge potential.

“In the early to mid-nineties, the internet was not that well established and penetration was low. There were a few companies that were based on the internet but hardly any – if any – were profitable.

POLITICIANS AND LAWMAKERS HAVE COME TO UNDERSTAND THAT THE INDUSTRY IS SUBSTANTIAL AND CONTINUES TO GROW, AND THAT IT IS BIG ENOUGH FOR THEM TO HAVE TO CARE ABOUT IT “But having a technical background, I knew that this would change and that the internet had the potential to revolutionise the way we purchased products and accessed entertainment.

I had some knowledge of the gambling industry and truly felt that online gambling would become a significant industry as the internet became more widely available and used.

“The main difference between now and then is that there is an industry today. When I was starting out, there was no such thing as operators and

suppliers. Most companies built their own software and developed their own games. Since then, the industry has matured and out of that maturity specialist suppliers emerged and the landscape became what it is today.”

In tandem with ongoing technological developments, the regulatory landscape has also experienced constant change. Anticipating such shifts, Betsson ensured that it was one step ahead by gaining a Malta Gaming Authority licence.

“In addition, back in the early days there was little to no regulation. We could see that this would likely change and in the early noughties that is exactly what happened,” Lindwall said.

“We secured our Malta licence in 2004. After this, the topic of regulation started being discussed on a European level and progress started to be made in other countries – although the next one (Italy) only came in 2011. This trend has continued over the last decade and now we are seeing more and more jurisdictions embrace regulation and licensing.

“The industry has obviously grown over the years, and this has led to a shift from companies being small and entrepreneurial to established and publicly listed. This, in turn, has been a driver of local regulations.

“Over the years, politicians and lawmakers have come to understand that the industry is substantial and continues to grow, and that it is big enough for them to have to care about it. This is not only from the perspective of protecting consumers but also unlocking the tremendous tax revenues the sector generates on an annual basis.”

In 2022, Betsson now holds licences in 20 markets - a considerable jump

SPORTS BETTING

THE INTERNET HAD THE POTENTIAL TO REVOLUTIONISE THE WAY WE PURCHASED PRODUCTS AND ACCESSED ENTERTAINMENT

sbcmagazine.com 7

Revolutionising the betting sector

from the two that it had secured in 2011. Lindwall believes that this growth will continue long into the future.

He explained: “Betsson started from zero, but today it is a sizable organisation with licences in 20 jurisdictions. The business continues to grow, and we remain profitable, but the market is more challenging today than it has ever been. This is certainly the case when it comes to having to meet different regulations in each of the markets we target and, in particular, the local taxes that we have to pay.

“One of the biggest changes I have seen is that Betsson now considers itself as a technology company above

all else. The technology required to power online and mobile sportsbooks and casinos is at the cutting edge and we are constantly having to develop new tools and features to meet regulations and to deliver the best possible player experience.

“Another area where we have seen change is responsible gambling.

We have been developing our understanding, skills and capabilities in this area for many years and we were the first organisation to employ someone with the sole focus of responsible gambling back in 2005.

Today, we have a full department for this and train each and every member

8 SBC LEADERS • MARCH 2022

REGULATORS PUT HIGH DEMANDS ON OPERATORS AND WE NEED TO BE ABLE TO MEET THEM of the company to ensure they understand responsible gambling and the need to protect players.

“This is an area where we need to continue to push the boundaries.

Regulators put high demands on operators and we need to be able to meet them. This is a requirement and a challenge we are determined to not only meet but exceed. We recently launched a new version of

our AI prediction tool that enables us to identify potentially risky behaviour early on and make the necessary interventions to ensure the player remains in control of their play.”

Discussions soon turned towards Lindwall’s leadership style as well as the highs and lows of his career.

Beginning with the most difficult moments, the Betsson CEO shared some experiences from the early

THE ROLES OF VR, AR AND THE METAVERSE WILL BE MORE PREVALENT IN THE ONLINE GAMBLING SECTOR

days of Net Entertainment - a time which was filled with the trials and tribulations of any start up.

“My toughest time in the industry was undoubtedly in the early days of Net Entertainment. We were committed to building our platform and system but, as a company, we were losing money.

“While this is normal for a start-up, it can be tough to keep pushing ahead with your ambitions and goals for the business. But once we launched and we could see the early numbers coming in, I knew we were on the right path to success and profitability.

“Ultimately, we could see that the cost of acquiring a customer was less than what they were spending over a few months, so we just needed to scale and drive volume in order to have a substantial business on our hands.

“The challenges that I faced in the early days taught me to be careful with money and not to spend more than I had. I remain an advocate of cautious spending and ensuring that any investment within the business – launching a brand, developing a product, entering a new market – is effective and ultimately leads to growth and profitability.”

Despite the challenges, Lindwall also pointed out that his time at Net Entertainment ranks among some of the highlights of his career. His 26year long tenure within the gambling industry is testament to the fact that there have been a number of milestones for the Betsson CEO. “The fact that I am still in the industry after all of this time shows that there have been a lot of good moments for me. I’d say one of the best was at Net Entertainment when we launched after spending a few years building our technology and systems. When the first customer deposited and played, it was such a great feeling that it has stayed with me throughout my career.

“Another highlight came a few years later when we hit profitability for the first time. That lifted an incredible weight that I had felt on my shoulders for quite some time. We were actually attending a conference in Europe when this occurred, so it was great to be able to celebrate with the entire team.

SPORTS BETTING

“Achieving profitability has also given me and the businesses I have worked for the confidence to take on investment and to push boundaries.

Without having the ability to do this, Betsson would not have become the power player that it is today.”

The gambling industry has undergone tremendous changes over the last 10 years, and when discussing what lies ahead in the next decade, Lindwall made some bold predictions as to where we might see Betsson and the gaming sector as a whole.

It is likely, he said, that we will see more countries undergo further regulatory changes as more markets

mature. Meanwhile technological advances will become more prevalent as VR, AR and the Metaverse take leading roles in gambling’s development.

Lindwall concluded: “More countries will have regulated online gambling and this will certainly lead to further consolidation. It is incredibly tough for smaller entities to compete with tier

I FOR ONE AM EXCITED TO SEE HOW THEY WILL IMPACT AND IMPROVE THE EXPERIENCES WE OFFER TO PLAYERS

one organisations – they need to have good products and a team of talented staff while ensuring compliance.

“This is an expensive undertaking and is making it increasingly difficult for smaller organisations – some of which are doing incredible things – to achieve profitability.

“In terms of technology, the roles of VR, AR and the Metaverse will be more prevalent in the online gambling sector. While they might not be at the point of entering the mainstream, these technologies absolutely have a place in the worlds of gaming and gambling and I for one am excited to see how they will impact and improve the experiences we offer to players.” •

sbcmagazine.com 9

New recruits

ON THE MOVE: BETTING AND GAMING’S MOVERS AND SHAKERS WITH COMINGS AND GOINGS commonplace across the

betting and gaming industry, we take a look at some of the movers and shakers over the last few months.

the Board of Directors and help guide Mindway AI’s commercial development as it stands before an expansion into new markets.”

Allwyn BetMakers Back in January, Christian Stuart was recruited by BetMakers Technology Group as CEO of North America, with the group looking to utilise his “significant gaming expertise and experience”.

Stuart has held a number of executive positions at Caesars Entertainment, including SVP of Business Development of Caesars Digital and Head of Caesars Sports and Online Gaming.

He said: “I am excited about the opportunities that lay ahead for BetMakers both in the US and globally.

BetMakers’ suite of innovative products and existing US management team has created an opportunity for the company to quickly expand across the US. “I look forward to joining the team,

10 SBC LEADERS • MARCH 2022

exceeding the goals of existing partners, and positively impacting the future of the US racing industry.”

Mindway AI In February, Mindway AI welcomed Willem van Oort as its newest board member. Currently serving as a consultant and founder of several European igaming communities, van Oort will support the company with its international expansion strategy and stakeholder management.

Upon the announcement of his new role, Willem van Oort commented: “Mindway AI has developed truly innovative, science-based solutions to detect at-risk gambling behaviour early on, and the company demonstrates great growth potential.

“I’m excited to become a member of

Allwyn confirmed the ‘planned appointment’ of Justin King to serve as chair of its UK business, should the pan-European lottery conglomerate win the fourth National Lottery licence competition.

King’s appointment is contingent on Allwyn’s selection by the UK Gambling Commission as the preferred operator and will see him take “immediate responsibilities for ensuring the seamless transition from the current operator of The National Lottery to Allwyn.”

He said: “I have thoroughly enjoyed working with the team over the last two years, putting together a gamechanging application and transition plan. It would be an honour to lead Allwyn as operator of the National Lottery, playing our part in guiding this treasured institution into a new era.” •

Sweeping reforms

SPORTS BETTING

UK FACES CONFLICTS ON TECHNICAL REFORMS OF 2005 GAMBLING ACT AS THE UK PREPARES FOR AN OVERHAUL of its

gambling legislation, industry stakeholders have issued a warning over the costly challenges to meet lawmakers’ new technical requirements

BY TED MENMUIR

C

ast your eyes back to April 2005 and the UK Gambling Act had just been signed into law. The legislation, introduced by Tony Blair’s government, helped create an overarching regulatory body by establishing the UK Gambling Commission, while also introducing wider advertising reach for

betting companies.

But 17 years on and the legislation still stands - despite leaps and bounds being made in betting technology.

For some, this meant that the law governing the UK gambling industry had become somewhat archaic.

Fast forward to 8 December 2020.

The UK government announced that it would be propelling gambling into a

digital age by carrying out a review of the 2005 Gambling Act. At the time of the announcement, the Department of Culture, Media and Sport pledged to undertake a ‘surgical rewiring of UK gambling’ to improve the sector’s outcomes for consumers, society and governing agencies.

Pinpointing 2021 as the perfect time to carry out its review, the government body outlined its intentions to inform UK gambling stakeholders of its new duties towards customers and local communities and, furthermore, its new relationship with sports and wider business. As with any government report, however, this was delayed.

This, as you can imagine, meant that

sbcmagazine.com 11

Sweeping reforms

many were none the wiser as to the pending outcome of its generational judgements.

DCMS’ confirmation of the White Paper’s delay was the season finale nobody wanted. Industry leaders were left with fraught nerves and were undoubtedly facing a further period of uncertainty, playing the guessing game of who is influencing the debate on gambling’s future and its outcome on determinations.

Speaking at the GambleAware conference last December, Chris Philip, the third appointed minister to take the lead on UK gambling’s reform agenda since its announcement, informed delegates that his department had received more than 16,000 submissions to the consultation.

As it stands, the DCMS has only delivered on one definitive technical resolution: forcing the National Lottery to raise the minimum purchasing age for tickets and games to 18.

So following a year-long wait in limbo, UK gambling still requires clarity on the review’s conclusions regarding overarching technical disciplines related to customer affordability, product safeguards and LCCP duties which the consultation's 16,000-

12 SBC LEADERS • MARCH 2022

DCMS CONFIRMATION OF THE WHITE PAPER’S DELAY WAS THE SEASON FINALE NOBODY WANTED plus submissions all indicate are areas of conflict with existing stakeholders.

Of significance, customer affordability has taken centre stage in the review process. Enforced checks are likely to be regarded as intrusive by many consumers, and will require operators to undertake costly changes to enforce them effectively.

The debate over affordability as a consumer protection has also divided opinion. A legal notice

by Mischon de Reya noted: “The importance of a consumer rights perspective to establish whether regulatory interference in the freedom of individuals to buy services is necessary in a democratic society.

UK GAMBLING STILL REQUIRES CLARITY ON THE REVIEW’S CONCLUSIONS REGARDING OVERARCHING TECHNICAL DISCIPLINES

“As such, it is important that any interference with consumer freedoms is justified and proportionate.

Interference will not be appropriate if alternative, less intrusive measures could be adopted instead.”

Though desired by the Gambling Harm APPG, there is still a high bar to clear on consumer trust and duties if affordability checks are to become a necessary requirement and meet a pressing need to protect UK online gambling consumers.

Technical conflicts have been further compounded by the UKGC’s longstanding ambition to establish a ‘single customer viewpoint’ on monitoring UK gambling engagement between consumer and licensed operators.

On a mission to ‘establish the UK as the safest gambling jurisdiction’, data sharing schemes of this nature will require operators to share information regarding problem gamblers.

This gives rise to a number of data protection, consumer rights and competition law concerns that sceptics believe have not been considered when outlining reform objectives.

Highlighted as another concern, regulators also have to define the appropriate limits for sharing data without the consent of the relevant

SPORTS BETTING

Chris Philip

individuals. There may be less intrusive measures that deliver a greater social impact awareness, but will these be effective?

Though criticised by media and industry observers, the All-Party Parliamentary Group on Betting and Gaming’s submission of growing complaints made against the UKGC highlighted ‘regulatory overreach’ as a growing concern, particularly when it comes to how the sector will be governed in the future.

“Numerous significant changes have been made to the regulatory framework within which gambling companies operate,” the APBGG warned.

It added: “It should be noted that the Gambling Commission is a regulator rather than a legislator, and its powers are appropriately limited.

To the extent that the Commission does seek to make further changes to the LCCP, it is essential to ensure that the regulator acts within its statutory powers.”

To date, some changes have been adopted through amendments to the LCCP. However, these alterations would

Andrew Rhodes

not be appropriate in relation to some of the regulatory outcomes desired by the update to the 2005 Gambling Act laws.

While these concerns were branded as an ‘unnecessary attack’ on the Commission, the UKGC soon carried out sweeping leadership changes with the appointment of Andrew Rhodes and Marcus Boyle as its new CEO and Chairman respectively.

IT IS IMPORTANT THAT ANY INTERFERENCE WITH CONSUMER FREEDOMS IS JUSTIFIED AND PROPORTIONATE The new leadership duo would be wise to accept technical concerns aired by the APBGG in relation to the effective governance of a multi-billion pound, tax-effective sector.

Operator complaints also highlighted that a lack of publicly available information relating to the successes of LCCP reforms in reducing gamblingrelated harms has led the industry as a whole to suffer - a concern that must

be satisfied by the next review.

Beyond MPs' desires to grant the Commission further regulatory powers, the APBGG warned that sector incumbents require clear guidance on their technical evaluation - if anything, to offer reassurance that UK gambling is an effectively governed marketplace.

“Change for change's sake will not lead to proportionate regulation,” the report cited. “A regulatory approach adopted by the Commission should not impose unnecessary regulatory burdens in upholding the licensing objectives, and does not unduly hinder the economic progress of the licensee.”

Within the context of what are likely to be generational judgements, DCMS cannot be sensitive to criticism of the regulator for simply highlighting concerns on technical costs and unnecessary applications.

Whilst UK leadership has long accepted that changes are imminent with regards to customer care, conduct and safer gambling duties, desired standards will not be achieved if inbound reforms impose as a straightjacket on operators. •

sbcmagazine.com 13

Supercharged partnerships

Bernhard Mogk, SVP Global Business Development at ESL Gaming

Amir Mirzaee, Bayes Esports COO & Managing Director

BAYES ESPORTS AND ESL GAMING: PROFESSIONALISING ESPORTS BEYOND GLOBAL DATA DISTRIBUTION EXTENDING THEIR EXISTING PARTNERSHIP until 2023,

Bayes Esports and ESL Gaming have embarked on a joint mission to professionalise the esports data ecosystem beyond global data distribution

BY ERIN GALLAGHER

T

he two companies initially started working together back in 2019 to create what they describe as a farreaching network within the esports data industry.

Since then, more than 150 partners have used data products from ESL leagues and tournaments provided to them by Bayes Esports for use cases such as analytics, media, distribution and integrity.

But while interest levels in esports leagues and tournaments has

14 SBC LEADERS • MARCH 2022

continued to grow – a trend which has been somewhat evident throughout the pandemic – Bayes and ESL took the view that something was lacking.

That missing piece in the puzzle, they believe, is the infrastructure and professionalism that can help lesserknown esports titles become more mainstream.

“Esports is a lot more complex than traditional sports,” said Bayes Esports COO & Managing Director Amir Mirzaee. “With it being digitally native and any sort of standard often not existing across leagues and game titles, traditional market participants

often struggle with handling and fully understanding esports.

“Offering official game data means bringing structure to any content offering in esports and allows for standards to be established. We are excited to continue to work on new services and products that will lead to better fan experiences and the continuous growth of esports as a whole.”

Bernhard Mogk, SVP Global Business Development at ESL Gaming, added: “We are very happy to extend our partnership with Bayes, the most experienced, but also the most committed data company to set uniform industry standards.

“Especially in regards to the diverse and ever-increasing interest in official match data, we will continue to be on the forefront to preserve and promote integrity across all our competitions.”

SPORTS BETTING

This year, the two companies will continue to expand their content by adding additional game titles. This will be in addition to the optimisation of coverage “by achieving nearly 24/7 content availability”.

To professionalise the less-explored areas of the esports industry, ESL and Bayes will draw on their experiences in building, broadcasting and commercialising esports ecosystems as well as their leading positions in the industry.

Mirzaee continued: “Bayes Esports is the exclusive, world wide game data commercialization partner of ESL Gaming. At the core, Bayes supports game publishers and league operators in extracting game data live, such as scores, kill, so called economics (gold, cash, etc.) and other data in that content.

“We run the data through our industry leading live data infrastructure, productize it for various use cases and then distribute it to over 150 clients worldwide, close to real time.

“Beyond this, as our partnership grows in tenure, we engage in improving the underlying technical and operational infrastructure, we add complementary services around historic data, add new game titles, etc.

You could say Bayes is the extension of ESL in that context.”

Bayes Esports will focus on covering ESL’s content for both DOTA2 and CS:GO throughout 2022, with more events and leagues in the pipeline.

The company’s Managing Director highlighted that in addition to top-tier events such as Intel Extreme Masters, the Dota Pro Circuit and CS:GO Majors, Bayes Esports will also be taking a revamped series of mid-tier events to market. Mirzaee stated that this will include Challenger leagues, as well as the entry level Cash Cups which now also include women-only events.

WE’RE DIVING DEEPER ON SCALING UP THE OFFERING AND BUILDING AN INFRASTRUCTURE FOR AGGRESSIVE GROWTH Looking forward to the next 12 months, Mirzaee is confident that 2022 will “obviously be a huge year” for ESL Gaming following its recent M&A announcement.

“Looking at the recent M&A announcement of ESL Gaming, 2022 is obviously a huge year for them.

Bayes is not quite the unicorn (yet), but we too have a series of exciting

announcements in the pipeline over the next two months.

“Jointly, we’re looking to supercharge the partnership, not just in terms of expanding on content but to dive deep on the underlying infrastructure as well.

Four years into their partnership, Mirzaee emphasised that Bayes Esports and ESL have already mastered the technical and operational challenges that allow for offering a consistent live game data product.

By continuing with their exclusive agreement, the duo plan to scale up their offering and build an infrastructure for “aggressive growth”.

Mirzaee concluded: “Offering esports live data is exponentially harder than traditional sports data, which is why our tech stack is actually a lot more flexible and performant than that of traditional sports data providers.

“So for this year, we’re diving deeper on scaling up the offering and building an infrastructure for aggressive growth. The ESLGaming merger with FACEIT certainly adds lots of exciting strategic options in terms of jointly establishing a global event and data platform. Long term, the goal has to be to become the operating system of esports so to say, standardised across titles, regions and formats.” •

sbcmagazine.com 15

Overcoming hurdles

HONORÉ GAMING: CREATING THE NEXT BOOM IN THE AFRICAN MARKET A VAST CONTINENT with a

large, young and sports enthused population, it is unsurprising that Africa poses great potential as an emerging betting market with a strong growth rate, albeit with some local hurdles in areas of regulation and payments in particular

BY TED ORME-CLAYE

W

ith the global betting industry keenly focused on developments in North America, it could be argued that the opportunities posed by emerging markets in Africa and Latin America are being overlooked.

Discussing his experience and providing insights on the African betting industry, Honoré Gaming’s CEO, Cyril Casanova, highlighted the ‘strong potential’ but also challenges present in this ‘underestimated’ market.

SBC: Can you tell us about Honoré Gaming and which markets are your core focus?

CC: Honoré Gaming is a wellestablished brand with a strong presence in French-speaking African countries, in particular nations where French horse racing is very popular.

Historically, our footprint has been in French speaking Africa and we are in a very strong position there. During the last two years, we have been focused on adjusting our platform to be competitive and adapted to Englishspeaking markets.

16 SBC LEADERS • MARCH 2022

Cyril Casanova, Honoré Gaming’s CEO

We entered Nigeria last year and have deployments scheduled in Uganda, Kenya, Tanzania, Zimbabwe, and will launch in South Africa this year once we receive certification.

SBC: What makes African betting markets unique when compared with other emerging sectors?

CC: The underlying growth that these markets represent sets them apart, as well as a young population who are open to betting as a form of

entertainment. We are talking about markets where there are very few ways to entertain.

Betting creates a lot of jobs, and so in Africa it is an industry that has a very different image to some other regional betting sectors. Also, there is a lot of passion for soccer in many nations, so betting shops provide an opportunity to watch matches whilst providing added entertainment.

We estimate that the underlying organic growth of the Sub-Saharan

SPORTS BETTING

African industry stands at 20% per year, much more than the global sector as a whole. Overall, Africa has strong potential and is underestimated - as is the case with many other industries on the continent. The European way of considering things does not always apply, as there are some African countries which are richer than LatAm nations.

SBC: What challenges in particular have you encountered in African markets that set them apart from others?

CC: By far the biggest constraint is the lack of regulation. For example, if a bookmaker receives the wrong information from a data feeder in the UK or France and offers the wrong odds on a match, there are ways for the bookmaker to protect themselves legally. This isn’t so much the case in some African markets.

For B2B providers, risk management must be reliable otherwise you are putting your clients in a tricky situation. When it comes to sports betting, you have to adopt a very strict risk management policy based on algorithms and identify ways to limit exposure, otherwise operators are at risk of losing a lot of value.

From a technical point of view, another challenge is integration

of payments and access to API information. This requires a lot of insistence for the right documentation and is often a long process. Overall, Africa is an exciting market with a lot of opportunities, but it is also quite challenging.

YOU HAVE TO ADOPT A STRICT RISK MANAGEMENT POLICY BASED ON ALGORITHMS OTHERWISE OPERATORS ARE AT RISK OF LOSING A LOT OF VALUE

SBC: Which countries have the most potential in terms of expansion for international operators?

CC: The markets with the most potential are the biggest countries - Kenya, Nigeria, Ghana and South Africa, which have the most advanced regulation. In general, the more these markets are regulated the more operators and investors can consider them as a way to boost their growth.

Ethiopia, Rwanda, Tanzania have strong potential, as does Senegal and other French speaking newcomers to the regulatory process.

We could see a lot of M&A over the

sbcmagazine.com 17

Overcoming hurdles

next three to five years with some major European and American players which would benefit from increased regulation, although there is a risk with regards to currency more so than Europe and the US. If we can combine the expertise of the leading betting companies on digital marketing and the online business in Africa, this could create another boom and accelerate growth.

SBC: Do you believe that the technological proficiency of African markets and bettors is underestimated? Can the same be said of other emerging markets?

CC: A common challenge is the size of the average bet slip, in some cases you are looking at 40 or 50 cents per ticket in comparison to say €12 in France. You have to manage a huge amount of transactions across a platform because of this.

Often it depends on who you are working with. Local payments providers do have some shortcomings in comparison to major international firms - you are not working with Visa or Stripe, you are dealing mainly with local monopolies.

However, platforms in some countries such as Nigeria and Kenya are becoming leaders in the continent.

From a tech point of view these are very good quality and even if the CRM and bots are less developed than in Europe or North America are still very impressive.

SBC: How important is it for operators to launch localised and tailored products across different African markets?

CC: It is important to consider patriotism, whilst you of course need to consider how many local languages there are. English, French and Portuguese are widely spoken as official languages, but there are so many local languages to address.

A high level of customisation is needed if you want to penetrate multiple markets, covering policies, affiliation, products, languages and marketing. Ultimately, operators must understand that these markets are all very different, and they need to use varying approaches towards features, promotions and bonuses - there are many ways to attract, acquire and retain customers.

18 SBC LEADERS • MARCH 2022

There is absolutely a need to integrate a lot to be competitive and to create brand awareness and reinforce the seriousness of your product. Lastly, as addressed earlier, payment methods are almost always local.

WE COULD SEE A LOT OF M&A OVER THE NEXT THREE TO FIVE YEARS WITH SOME MAJOR EUROPEAN AND AMERICAN PLAYERS SBC: Football is the most popular betting product for African consumers, but are there any other sports catching attention?

CC: Football is by far the number one betting product, although horse racing is very popular in Frenchspeaking Africa, in comparison to English-speaking nations such as Nigeria, Ghana and Tanzania - with the exception of South Africa and neighbouring countries.

Outside football, you have emerging sports that are becoming more attractive, but still account for a very small proportion of activity - UFC,

boxing and tennis are popular, as well as cricket and rugby, particularly in South Africa.

People are very passionate about football, but actually don’t bet so much on the Africa Cup of Nations in comparison to the Euros and World Cup, or on local championships. This does present a key challenge and we are focusing on pricing these tournaments more, as this reinforces awareness that you are offering a local product.

SBC: What are your opinions on the igaming market in Africa? Is there potential for further development here and cross selling with sports bettors?

CC: There are many opportunities with casino in Africa, although this is a matter of regulation. Many haven’t regulated yet, but we can see that for the countries that have legislated the vertical accounts for around 30% of betting activity.

It is a great way to attract people and offer an online product in some countries where casinos are less developed. Casino will be the next boom in Africa once regulation is introduced. •

Blurring the virtual world and reality

SPORTS BETTING

VIRTUAL SPORTS: FROM NICHE ‘NICE-TO-HAVE’ TO SPORTS BETTING’S ‘MUST-HAVE’ FROM A PRIMITIVE BASEBALL GAME in

the 1960s to complex simulations designed to thrill and engage sports betting fans in highprofile environments like Germany’s Bundesliga, virtual sports is now a must have product.

Sportradar’s Frank Wenzig explains.

BY CHRIS MURPHY

V

irtual Sports have come a long, long way since John Burgeson coded an early form of fantasy baseball for an IBM 1620 back in 1961. With just 20 KB of memory to play with, his game was rudimentary by today’s standards, albeit bleeding edge at the time.

Fast-forward to the present day and companies like Sportradar are shining a light into whole new areas of virtual sports, using technology and relentless innovation to push the boundaries of fan engagement.

Sharing his views on the subject with SBC Leaders was Frank Wenzig, the firm’s Managing Director, Gaming.

“The market has changed beyond recognition in the last 10, 15 years,” he said. “Virtual sports betting solutions have gone from a niche, ‘nice-to-have’ for operators, to a critical component in a sportsbook’s always-on operation.

That’s particularly true of the last two years when the reduction in live sport left many operators bereft of content

sbcmagazine.com 19

Blurring the virtual world and reality

leading to a significant uptake in virtual sports betting solutions.”

According to Wenzig, the evolution of virtual sports betting has been driven by consumer demand. He explained: “Betting customers want a broad range of sports to bet on with all the main markets available to them, as well as hyper-realistic game play with the graphics to match.

Realism is crucial amongst customers who expect the same quality from virtual sports betting as they do live action sport.”

A great example of this is Sportradar’s ongoing collaboration with Bundesliga International in the virtual sports betting space. It’s a longstanding and successful relationship that continues to stand the test of time, with both having been linked for the best part of two decades.

“With two leaders in innovation working hand-in-hand, the move into virtual sports felt like a natural progression for our relationship,” offered Wenzig. “I’m excited because together we have developed a distinctive virtual sports betting solution.

“Incorporating footage from real soccer matches, Virtual Sports Bundesliga is the first virtual sports betting solution to feature the top

20 SBC LEADERS • MARCH 2022

players from their leagues. It’s a game changer and provides the end user with an experience as close to real life as possible.”

He added: “The solution will help Bundesliga International connect with their fans and reach new audiences outside of the DACH region, using our global network of 900 sportsbook operators to provide a new means of experiencing the excitement and drama of Germany’s biggest soccer league.”

REALISM IS CRUCIAL AMONGST CUSTOMERS WHO EXPECT THE SAME QUALITY FROM VIRTUAL SPORTS BETTING AS THEY DO LIVE ACTION SPORT Given the huge appeal of top flight German football, the need to engage with fans in a simple and seamless manner has not been overlooked, as the gaming boss explained: “There are an estimated one billion Bundesliga fans worldwide.

“And for operators wanting to connect with them, we’ve simplified the integration process of Virtual Sports Bundesliga. The solution is available to operators via our remote

gaming server (RGS). Once clients have integrated the RGS, new product rollouts are effortless and quick.”

Expanding on the technology Sportradar is using to deliver the partnership and drive fan engagement, he advised: “Our portfolio of virtual sports betting products is powered by real sports data and features factual team strength parameters and player stats based on an artificial intelligence analysis of data from thousands of matches in our historic database.”

That, noted Wenzing, provides customers with a sports betting experience that he believes is “as close to real life as possible”. He continued: “We had a team of 100 specialist data operators reviewing more than 3,500 Bundesliga matches from the last 10 years, editing video content into dynamic event clips such as players entering the pitch, scoring goals, or stepping up to take a penalty.

“The video clips within the solution are surfaced via an AI and machine learning analysis of real sports data to deliver a realistic overall match perception. We use a sophisticated software component that, in real time, stitches together the match video clips. This creates a vast bank of

SPORTS BETTING

match highlights and avoids content repetition, which is key to maintaining engagement.”

Wenzig also predicted that the new solution will affect the industry in a number of ways. “I believe we will see greater demand amongst rights holders for virtual betting solutions as a means to market their brands to fans worldwide,” he said.

“Virtuals provide a unique route to fan engagement and offer a platform to access the sport, the players and the action. Additionally, the gamification of virtual sports betting makes it a softer entry point for those leagues and federations reluctant to enter sports betting directly.”

He believes that for rights holders, they will have the opportunity to grow their brand on a global level.

“Even in territories where there are restrictions on betting and gambling, we have legitimate working relationships in place to ensure cut through,” he explained. “For example, state-owned lotteries in Azerbaijan, Hungary, Russia and Turkey offer our virtual solutions as part of a limited betting offering.

“These are countries,” he underlined, “in which rights holders may find it harder to achieve visibility and reach new or existing fans. Additionally,

partnering with us in this manner and engaging with fans in this way can enlarge the scope of adjacent businesses such as merchandising and content subscriptions.”

For sportsbook operators, Wenzig believes that offering virtual sports betting products that are official and include club names, club badges and high-profile players can only increase customer dwell time and overall engagement with the product.

THE GROWING AMOUNT OF REGULATION AND CERTIFICATION IN PLACE IS A CLEAR STATEMENT OF THE MARKET’S POTENTIAL FOR GROWTH So much for the past and present.

But what about the future for virtual sports in a betting space that is continually evolving? Wenzig responded: “As with this past decade, innovation will be key. As pioneers of the industry, we don’t sit still – we’re continually innovating in the space to improve user experience and enhance engagement.

“I believe we’ll see an increase in officially branded content within virtual sports solutions as more rights

holders follow the likes of Bundesliga International and Major League Baseball and move into this space.

“Customers really engage with video content – it’s sticky and increases dwell time, so I believe we’ll see an increase in the use of real match footage. We’ll also see a trend towards in-play betting in the virtual space, further enhancing that ‘real life sports betting’ experience.”

The lightning speed of innovation will also play its part, according to Wenzig. “Fast technical development will further blur the line between the virtual world and reality, especially when ultra-realistic 3D animations come into play,” he said. “Technological advancements with computer vision, NFTs and the Metaverse will create opportunities within the virtual sports betting space.”

And finally, there is the omnipresent influence of policy makers to consider - mostly for the good. “Regulation and legislation will also be a key factor in shaping the future of virtual sports betting,” he noted. “The growing amount of regulation and certification in place is a clear statement of the market’s potential for growth and should lead towards a standardisation and harmonisation across different jurisdictions.” •

sbcmagazine.com 21

From unique to mainstream

THE THRIVING ROLE OF STATS BETTING ABELSON ODDS’ JEEVAN JEYARATNAM shines a light

on how stats betting has evolved from a unique feature in a sportsbook to an integral part of any operators' offering

BY JOE STREETER

F

rom shots on target to player tackles, stats betting and data-driven markets have deeply enriched the match day offering that sportsbooks provide over the last few years.

Jeevan Jeyaratnam, Chief Operations Officer of Abelson Odds, shares his views on why the markets have become so pivotal to sportsbooks, the potential challenges of their growth and whether they could play a role in bridging the gap between sportsbooks and Fantasy Sports.

SBC: Firstly, how important has stats betting become to a sportsbook’s offering?

Jeevan Jeyaratnam: You have only to glance at the landing pages of leading UK bookmakers to see the importance of player and team-related stats bets. Bet Builders have become an increasingly profitable wager and their appeal is driven by stat-rich elements.

Pre-canned bet builders have proven a gateway into this emerging trend, and there are plenty of operators who have dedicated resources to making the same-game acca as simple to join as possible.

Without player markets, especially, these can lack originality and appear rather dull. If we accept that we are part of the entertainment industry, then the notion of building a narrative is front and centre; player stat markets are a vital component of that framework.

22 SBC LEADERS • MARCH 2022

LOCALISATION IS ANOTHER KEY REASON FOR THE RISE IN INTEREST IN PLAYER STAT MARKETS

Localisation is another key reason for the rise in interest in player stat markets. We’ve seen examples of this in our own business. As a client moves into a new territory, we have seen requests for us to add goal scorers

SPORTS BETTING

from the local leagues, offering the opportunity to wager on teams and players that the customer base is familiar with. We have recently added Cypriot, Colombian and Chilean goalscorers for this very purpose.

DURING THE EUROS, THERE WAS A PUSH TOWARDS PROVIDING MORE OPTIONS FOR CUSTOMERS

SBC: We have seen the growth in ‘shot betting’, what makes this type of market so appealing to a punter?

JJ: With many of the more granular markets, like tackles and passes, it is far harder for the punter to keep up with the tallies. There are widgets on most sites to help, but it is a better experience if you can quantify the numbers yourself. Shots are one such market where this is possible.

The other adage is that people want to see action, shots and goals are correlated and punters love to bet on goals, so it makes sense that they would want to bet on shots, which occur with greater frequency.

There is also the subtle push from operators, because from a compilation point-of-view, there is more data available, and therefore confidence, with the pricing. Therefore, pushing customers towards adding these markets into their bet builders is sensible.

realistic cash-out opportunities for players. If you don’t know the “true” probability for a player’s expected tackles and you decide to offer a defensively priced one-way market, cash-out calculations are likely to be favourable to the punter, ebbing away operator value. It is integral to the whole business to understand the

SBC: Have there been any emerging trends in stats betting over the past year? Was there an uptake during Euro 2020 and the Copa América or did markets remain steady?

JJ: I can’t comment on bookmaker turnover during the big international tournaments, I’m not privy to that information, but certainly during the Euros there was a push towards providing more options for customers.

It’s easier to handle this when there is a single key focus, like a major summer competition. Of course, it helps when squads are defined and named, as they are during these international competitions.

The trend is, very slowly, moving from offering only the “over” portion of the bet to offering two-way lines.

This is an expected natural evolution as suppliers and operators continue to gather data and tweak algorithms, affording them the confidence to offer a more rounded and differentiated product.

Two-way markets require much sharper pricing acumen - a critical ingredient if operators are to offer

“true” price of any selection at any given juncture. Pinnacle, for example, has built its entire business on this philosophy.

SBC: As stats markets become intricate and specific, what are some of the challenges that could arise?

JJ: One of the bigger challenges is ensuring punters are aware of the status of their bet at any given point.

OPTA has some great data widgets

THE BALANCING ACT BETWEEN SPEED AND ACCURACY IS CRUCIAL FOR PROVIDING INCREASED LIFETIME VALUE

that embed on to bookmakers’ sites, updating in real-time.

The more granular a metric, the greater the chance that the live tally could be adjusted post-match. This is especially true of passing metrics. To provide the best possible experience for users, there needs to be some confidence that the bet has won and won’t be adjusted following a post-match review by the scouting team. The balancing act between speed and accuracy is crucial for providing increased lifetime value for bookmakers and entertainment for punters.

SBC: Do you think we will see more ‘Price Boosts’ around stats betting and how fruitful an engagement tool do you believe that could be for operators?

JJ: ‘Price Boosts’ are part and parcel of a marketing team’s arsenal, so I am sure that they will continue with this approach, although whether they provide longer-term value for the sportsbook is open to scrutiny.

Cleverly, during the Euros, one of the exchanges was opening markets on the price boosts that other bookmakers were promoting. This provided a haven for those wishing to lay off the other side of the price boosted bet. There was no shortage of liquidity on the lay side because users were laying at the right price. The fixed odds book was

sbcmagazine.com 23

From unique to mainstream

taking the negative expected value (EV) and therefore risk, while the layer on the exchange was gaining positive EV and, in theory, would profit in the long term.

SBC: Is there room for integration with fantasy sports and stats betting?

Could a combined approach between the two strengthen engagement with a new demographic of punters?

JJ: This has been the holy grail for operators for some time. In the USA, pre-PASPA, Fantasy Sports carried huge weight. Without legal sports betting in place, it is easy to see why the sports and stats mad US customers took to it so vehemently. Over in Europe, where a legalised sports betting framework has existed in many territories for decades, trying to convert the fan the other way has proved much harder.

THIS HAS BEEN THE HOLY GRAIL FOR OPERATORS FOR SOME TIME That said, as player markets become more intricate and the advance of bet builders allow a real narrative to be spun, the gap between the two verticals has become smaller.

Scout Gaming is a good example of a business that has done a very good job of helping to bridge the gap.

SBC: What do you believe will be the next evolution of stats betting and do you think it could become a more prevalent part of the sportsbook offering?

JJ: The next step will be to transition fully to a two-way offering that can be wagered in-play with cash-out. Uptime is also very important. PointsBet’s quant arm, Banach, managed to maintain totals and money line wagering through the lifecycle of the game without suspension.

The user experience is greatly enhanced by allowing markets to remain open longer, it becomes a far more fluid experience. While it will be some time before we can include all stats, especially player stats, in this type of free-flowing offering, it should at least be an aim.

SBC: In terms of the demographic of punter that engages with stats betting markets, have you noticed

24 SBC LEADERS • MARCH 2022

it leans towards a more casual or experienced bettor?

JJ: The more granular player stats markets are still very much at an embryonic phase of development; therefore operators are very cautious as to stake limits and are very quick to restrict accounts that appear to have an edge.

While the punter has the choice to bet only the markets they want

to, a sportsbook has to offer prices on nearly everything. This leads to a safety-first approach. All this means is that these types of bets are predominantly aimed at the recreational punter, and really intended as inputs into bet builders.

As the markets evolve, we can expect operators to have more confidence in their pricing partners and maybe stake limits will begin to increase. •

Evolving fan engagement

SPORTS BETTING

FREDDIE LONGE: HOW IMG ARENA IS PAVING THE WAY FOR NEW REVENUE STREAM HAVING RECENTLY BROADENED its Sports

Media product portfolio with the launch DP World Tour ShotTracker, it’s evidently a case of busy times for IMG ARENA. Executive VP and Managing Director Freddie Longe took time out to talk about all things IMG and what lies in store for 2022

BY CHRIS MURPHY

SBC: For those less familiar with the IMG ARENA brand, can you describe its existing focus within sports betting?

Freddie Longe: IMG ARENA is a sports content and technology business. Our vision is to evolve and inspire how fans engage with sports.

The business was launched in 2012 to leverage our rights expertise and ambition to pioneer the mainstream introduction of official data rights to the sports betting industry. We paved the way for a new revenue stream for our rightsholder clients, whilst at the same time delivering greater value to the sports betting industry.

We have since expanded our Sports Betting product suite with the addition of live streaming, next generation immersive event centres and official virtual sports products.

At the same time, we have strengthened our relationship with rights holders via the acquisition of

FlightScope Services and the launch of our Sports Services vertical in 2021. This ground-breaking suite of data collection methods has enabled

fans to enjoy much richer data driven products and a comprehensive range of next-generation markets in tennis, golf and MMA.

sbcmagazine.com 25

Evolving fan engagement

SBC: Can you tell us more about IMG ARENA’s business pillars and how they coexist within the IMG ARENA business model?

FL: The four pillars are: Sports Services, Sports Betting, Sports Media and Sports Performance.

We have reached a new frontier – the data age of sport – where the ecosystem for the modern fan is ‘always on’ and the competition for a fan’s attention is greater than ever.

We believe 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.

This starts with rights holders and via our Sports Services we help them

to grow their reach and to meet the needs of their existing and potential audience.

Our Sports Services pillar is underpinned by cutting-edge content creation. Building out fast and reliable data through our configurable applications, player and ball tracking and computer vision capabilities.

Data is brought to life across a growing suite of products and content feeds, including our award winning Golf Event Centre and DP World Tour ShotLink.

SBC: How does that all come together?

FL: One case study is our golf offering for the DP World Tour, where our

26 SBC LEADERS • MARCH 2022

sport-to-fan vision truly comes to life.

Our Sports Services team collects shot-by-shot data and produces audio-visual feeds from the par-three holes on the course. The complexity and levels of accuracy are second to none. For example, we can measure the position of a ball on the green to within half a millimetre’s accuracy.

This data powers our three use cases – Sports Betting, Sports Media and Sports Performance.

For Sports Betting, fast path data feeds combine with the live video stream within our front-end solution – The Golf Event Centre – to allow fans to ‘step-inside’ the ropes and enables true, multi-market in-play betting on golf for the first time. Side bets on the

longest drive or the player nearest the pin might be standard fare in the average club four ball or corporate golf day, but until we launched the Golf Event Centre the ability to wager on professional golf has been a lot more limited.

Analysis by H2 Gambling Capital suggests 95% of the gross win on golf was derived from pre-event betting – a figure that is much higher than in tennis and football. When you compare the suitability of certain sports to a

DIGITAL SPORTS BETTING IS EXPLOSIVE RIGHT NOW

live betting format, golf stacks up incredibly well.

The data we have seen since the product went live in 2020 is that the Event Centre more than pulls its weight as a customer acquisition and retention tool. This same data feed is now powering an increasing number of non-betting services across the DP World Tour and its digital assets, and we expect this to continue evolving over time.

SBC: Last month saw the launch of ShotTracker, a highly-sophisticated new product. How much of a gamechanger is this for golf fans and what does it bring to the sport?

FL: A part of our Sports Media product portfolio, DP World Tour ShotTracker is one of the most sophisticated sports data products ever created and builds on the success of the Golf Event Centre. This is an exciting extension to our relationship with DP World Tour and, through our technology, will give golf fans greater insight into how their favourite players are performing and how the tournaments are unfolding.

We have created a completely fresh way to engage with the sport as part of our ongoing commitment to enhance the fan experience SBC: How do sports fans and consumers get to enjoy products like this?

FL: Through the various points of distribution we are establishing. We have a large number of soon-to-launch tier one and two sportsbook operators currently integrating the products as well as via an additional range of future digital customers where conversations are gathering pace.

SBC: How does that align with all that OpenBet brings to the fold?

FL: The closing of the OpenBet acquisition is still subject to regulatory approval, which is anticipated later in 2022. The principal products we deploy within IMG ARENA’s Sports Betting pillar are live streaming, fast path data and our immersive front-end solutions, which can be modularised— either packaged or sold as isolated component parts. This is the very logical point at which the IMG ARENA and OpenBet businesses would come together. By providing sportsbook operators with the platform, engine

SPORTS BETTING

THE US, IN PARTICULAR, IS A COMPLETELY BLANK CANVAS SO WE ARE SEEING A LOT MORE CREATIVE THINKING AND CONVERGENCE BETWEEN RIGHTS HOLDERS, SPORTS BETTING AND SPORTS MEDIA

and content to deliver a world-class sports betting proposition for fans around the globe.

Factors such as the changing regulatory landscape of the overall sports betting industry in particular since PASPA was repealed in 2019, and growing digital infrastructure are fueling the demand for sports betting.

It is now firmly part of the overall sports entertainment ecosystem. The OpenBet platform powers many of the pre-eminent sportsbooks and lotteries in the world; the combination of our relationships with rights holders, content creation and front-end products, would differentiate our offerings.

SBC: What are the most interesting growth opportunities for IMG ARENA and can you tell us about your plans in a more general sense for 2022?

FL: Digital sports betting is explosive right now, so there are enormous growth vectors available. Fast, accurate and official data is at the heart of modern sportsbook offerings and for a business like ours, we can see many areas of exciting expansion and growth.

Number one is territorial expansion, being driven primarily out of the US, with the brisk pace of regulation

changes. But we’re seeing global support for the adoption and acceptance of digital sports betting as a form of entertainment.

Another is sport expansion. In Europe, historically a lot of the focus is around football, but the landscape is evolving. For us, golf is still nascent as a proposition and therefore an incredibly exciting growth opportunity as the perfect in-play betting sport,

I EXPECT WE’RE GOING TO SEE A HUGE AMOUNT OF ONGOING DIVERSIFICATION OF PRODUCT OFFERINGS but you’re also seeing all sorts of additional sports entering in the fray. Tennis enjoyed massive growth during the COVID pandemic, and niche sports like cycling, pickleball, and padel tennis grew in popularity as well. Sportsbooks are broadening their horizons to meet the needs of the modern fan.

Then there is product development fuelled by unprecedented levels of technological advancement and, in particular, the types and depth of data

available. In golf, for example, the depth of data allows you to power 35,000 new betting markets at every tournament.

Live statistics for every player, every hole and every shot at a latency of less than one second didn’t exist. This data has evolved the fan experience and enabled deeper levels of engagement.

When you think about the modern sports fan, they’re very technologically sophisticated and demand incredible levels of innovation and consumer experiences. As a consequence, I expect we’re going to see a huge amount of ongoing diversification of product offerings. And it’s an exciting opportunity for IMG ARENA to play a role in that.

The US, in particular, 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 a potential future where rights holders become sportsbooks, where sportsbooks become broadcasters, where broadcasters become sports betting operators. And IMG ARENA, is well-positioned to sit right in the middle of all of that given our vast relationships across those various ecosystems. •

sbcmagazine.com 27

JULY 12-14, 2022 MEADOWLANDS EXPOSITION CENTER, NEW JERSEY

THE LEADING SPORTS BETTING AND IGAMING EVENT IN NORTH AMERICA

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The next US powerhouse?

NORTH AMERICA

NEW YORK: BITING INTO US SPORTS BETTING THE EMPIRE STATE HAS DOMINATED a huge chunk

of the industry agenda in recent months, with the record pace that has followed January’s mobile sports wagering debut well documented

BY CRAIG DAVIES

W

ith a reported 1.2 million accounts created amid a deluge of betting across New York’s five sportsbooks - authorised a little over a week after the action began - it seems only a matter of time before records across regulated US jurisdictions will begin to topple like dominoes.

As more operators begin to enter the fray on an ‘as and when’ basis, Lindsay

Slader, Managing Director of Gaming at GeoComply, and Sarah Robertson, SVP of Sales at Kambi, assess the main talking points, potential threats and which North American regions pose a challenge to New York.

SBC: New York has very much been one of the main talking points in the industry thus far in 2022, what opportunity do you believe the region presents both for yourselves and the wider industry in general?

Sarah Robertson: We were thrilled to be selected as a mobile sports betting licensee for New York State along with our partner Rush Street interactive, and it was fantastic to be up and running on day one of the market going live on 8 January.

Several licensees were given the green light to launch before the rest of the pack, putting them in a great position to acquire new customers early on.

Our launch with Rush Street Interactive went off without a hitch, with steady growth early on that we

THE REST OF THE COUNTRY, IF NOT THE WORLD, LOOKS TO NEW YORK

sbcmagazine.com 29

The next US powerhouse?

Sarah Robertson

hope to build on as New Yorkers increasingly discover the strength of the product.

The early activity demonstrates the scope of the opportunity going forward in New York, which is the most populous to legalise mobile wagering in the United States so far.

Lindsay Slader: New York has been an exciting market for our company.

We take every geolocation challenge seriously, and when you have millions of people so close to borders, it means our teams have worked overtime to ensure success.

The rest of the country, if not the world, looks to New York, so legal, compliant and ultimately successful online betting there will have a positive, wide reaching impact for the advancement of other markets.

SBC: In the immediate short-term that has followed market launch, we have witnessed stats that show the region has established itself as the largest within the country. How can New York best keep up this early momentum?

30 SBC LEADERS • MARCH 2022

Lindsay Slader

LS: It’s been amazing to see. Based on our data, 87% of New York bettors are brand new to regulated sports betting. This means that operators have done a great job of drawing players from the illegal market as well as attracting first time bettors. As more online sportsbooks come online, we anticipate the market will continue to grow.

THE ABILITY TO OFFER A COMPETITIVE PRODUCT TO NEW YORKERS SO THAT BETTORS HAVE NO REASON TO CROSS THE BORDER WILL BE CRUCIAL SR: It is still early days so a little premature to jump to any conclusions.

It’s worth bearing in mind that some operators went live in New York with extremely generous bonuses and signup offers, while there are still a couple of other operators yet to launch.

With some major sporting events such as the Super Bowl and March

Madness right around the corner, we should get a better picture of the market based on the ability of sportsbooks to attract and retain players before and after those events.

In general, Kambi firmly believes the sportsbooks that succeed in the longterm will be those that have a highperformance sportsbook, one that is able to retain customers and reduces the need for expensive acquisition and reactivation efforts.

SBC: Despite the wave of positive headlines, various potential issues have been flagged across various quarters - including warnings that New York could struggle to reach its revenue projections. How can the jurisdiction overcome these?

SR: One threat to the state is the potential loss of customers who cross over to New Jersey and other states that have already regulated online sports betting, or that they continue to play with offshore operators.

Early projections will only be reached if the New York market is competitive, and operators are able to offer an

NORTH AMERICA

A COUPLE OF STATES IN A POTENTIAL POSITION TO SUPPLANT NEW YORK COME TO MIND, SUCH AS CALIFORNIA AND TEXAS experience on par, or better, than neighbouring states and illegal sites. To ensure that happens, the ability to offer a competitive product to New Yorkers so that bettors have no reason to cross the border will be crucial.

Regulators realise the need for operators to offer a high-class product to keep those who had been betting over state lines, and to ensure the legal market in New York can compete with illegal offshore bookies unconstrained by taxes and regulations.

LS: We focus our attention on delivering the high-quality service, from geolocation to fraud prevention, that our customers rely on to keep their businesses running and successful.

If we do our job, they can do their jobs, and ultimately New York will benefit from strong consumer protections and new revenues.

SBC: Looking further afield across the US, and North America in general, and presuming this early momentum is maintained, which state/s stand best poised to potentially challenge, and even overcome, New York? And why?

LS: Population is generally a strong indicator of how well a market will perform. It doesn’t surprise us that New York has rocketed to the top of the list since it has 7 million more residents than the next largest state with legal sports betting (Pennsylvania).

New York is also well situated for sports betting because it has so many professional franchises and enthusiastic fan bases. The next big states that could rival New York will be Texas and California.

SR: A couple of states in a potential position to supplant New York come

POPULATION IS GENERALLY A STRONG INDICATOR OF HOW WELL A MARKET WILL PERFORM

to mind, such as California and Texas, but that will largely depend on the regulatory frameworks introduced.

Population alone should put them in a position to compete with the Empire State as Texas is about the same size and California is nearly double that.

These states also account for a combined 27 professional sports teams with dedicated fan bases who will be eager to place wagers on their teams.

Furthermore, California is home to more gaming tribes than any other US state as well as the second most tribaloperated casinos, which could be another substantial revenue stream for

ONE THREAT TO THE STATE IS THE POTENTIAL LOSS OF CUSTOMERS WHO CROSS OVER TO NEW JERSEY the state depending on the regulatory framework it adopts.

California is set to put sports betting legislation on the ballot later this year, but there are some talks of a market with only retail sports betting, which in our view would fail to capitalise on the mobile opportunity while providing a boost to the offshore market. •

sbcmagazine.com 31

Balancing first mover advantage and user acquisition

CAN SPORTSBOOKS AFFORD TO BE ‘LATE TO THE PARTY’? expansion, product ownership and growth with profitability.

Expansion was also a common theme for Kucharz as he noted that DraftKings has largely concentrated on market and product diversification - whether that be sports betting, igaming, or the creation of its NFT marketplace.

Cathryn Lai, OpenBet’s Chief Commercial Officer

THERE HAVE BEEN THREE MAIN GOALS: EXPANSION, PRODUCT OWNERSHIP AND GROWTH WITH PROFITABILITY

AS MORE STATES OPEN UP ACROSS THE US, should

sportsbooks be prioritising first mover advantage, or is there more value in acquisition within already regulated states? Panellists at the recent SBC Summit North America assessed the different options

BY CONOR PORTER

M

oderated by OpenBet’s Chief Commercial Officer Cathryn Lai, the SBC Leaders Panel began by looking at how the industry has grown since the repeal of the Professional and Amateur Sports Protection Act in 2018.

Taking part in this panel was BetMGM’s Chief Revenue Officer Matt Prevost, Head of Penn Interactive

32 SBC LEADERS • MARCH 2022

Jon Kaplowitz and DraftKings’ Chief Business Officer Ezra Kucharz.

Prevost said that over the past few years, BetMGM has been building out its team to have more of a national presence in the US as well as considering Canadian expansion and developing its transactional experience.

Discussing how Penn Interactive responded, Kaplowitz noted that there have been three main goals:

At the time of writing, 30 states - plus Washington DC - have now legalised sports betting. The battle is starting to heat up between operators to gain first mover advantage in new states, while others have placed their focus more on acquisition, engagement and retention in markets which have already legalised sports betting.

The balance between being first to market and acquisition in regulated states was a topic which Lai highlighted, quizzing panellists on their different approaches. Kaplowitz began by explaining that Penn Interactive strives to be first to market alongside its peers.

Being late to the party, he said, isn’t as bad as some might think pointing out that the operator entered Pennsylvania a year after its sports betting launch and New Jersey three years after it went live.

Kaplowitz stated: “What we’ve found is that it's actually not as bad as we thought. We have a loyal audience with Barstool followers, 100 million social media followers strong, that are willing to give us a chance.

“When we enter into a state like Pennsylvania late, we’re number three in the state right now from a handle

NORTH AMERICA

IF WE’RE LAUNCHING OFF-CYCLE, WE DON’T HAVE TO COMPETE IN TERMS OF THE CACOPHONY OF VOICES AND MEDIA SPEND OUT THERE

Matt Prevost, BetMGM’s Chief Revenue Officer

perspective, and after 60 days in New Jersey, the most competitive state and the biggest state in America, we have 9% of the GGR. “The reason behind this is we have this very loyal audience who want to be part of the Barstool ecosystem, they want to be part of the fun, and to us that gives us optionality.

“If we’re launching off-cycle, we don’t have to compete against these guys in terms of the cacophony of voices and media spend out there, the rising rates

of paid media and affiliate spend.

“We can do it at different times where maybe it’s a little bit less expensive and the noise is a little bit more muted where we can be a little bit louder in terms of our share voice, that leans into our organic growth and balancing with profitability strategy as well.”

Prevost expressed a similar view, noting that there is a “mad rush of acquisition” when you launch

alongside others on day one in a new market. This is a time when you tend to see some great players, but also others trying to gain a footing in the sports betting industry for the first time.

The Head of Penn Interactive said that BetMGM’s approach will often differ from state to state, adding: “Here in New Jersey, we might be spending more on retention than straight out acquisition, whereas in Arizona, where we launched at the start of the NFL season, we’re in maddash acquisition mode.

“I think, over time, this will normalise, but right now, we do have very different spend strategies state-bystate.”

For Kucharz, multiple DMAs - or direct market access - can have an effect upon DraftKings’ strategy at that particular time. The sportsbook has placed a significant focus on different marketing channels within each state

Jon Kaplowitz, Head of Penn Interactive

sbcmagazine.com 33

Balancing first mover advantage and user acquisition

Ezra Kucharz, DraftKings’ Chief Business Officer

as it seeks to identify what will help DraftKings “compete and win” in each market.

“Part of that means being first and part of that means acquiring, it’s not an either/or, it’s a both,” he said.

“We’re going to compete wherever we are and we’re going to compete wherever we are. We have great peers and we compete with these guys every day, we’re all good friends, but at the end of the day, this is a competition and we want to win.”

Lai then brought up the topic of omnichannel player convergence and its future destination, to which Kucharz stated that DraftKings is looking to “have something for everybody” and provide “entertainment value” for all.

Meanwhile BetMGM’s Prevost noted that the retail experience offers “an opportunity to teach new customers about sports betting”.

Kaplowitz agreed with his fellow panellists and gave a prediction: “I think if you look one or two years down the road, I think the most innovation that will be coming out of

34 SBC LEADERS • MARCH 2022

operators will be the convergence between sports betting and online casino.

“Today, in our app, it’s a little bit of a disparate experience. You click on to this whole new area on the app and we have some cross-sell opportunities there. When I think about the art of the possible, what you’re going to need is your own content studio to create your own games from the ground up.

PART OF THAT MEANS BEING FIRST AND PART OF THAT MEANS ACQUIRING, IT’S NOT EITHER/OR, IT’S BOTH “Your own casino platform where you can do your own leaderboards, tournaments, and progressive jackpots, owning your own managed and trading services organisation, your PAM so you can infuse bets inside the casino experience.”

He continued: “What I get super excited about is when you throw on top of that, the content distribution

that we have through our Barstool Sports media empire, a whole lot of magic can happen.”

The discussion came to a close with a brief look at the role of content and how this can help sportsbooks stand out from the crowd. Content enables Penn Interactive to drive meaningful value from the assets at its disposal, while Kucharz underlined the importance of transactional content and product innovation which are helping DraftKings to meet the changing demands of its customers.

BetMGM’s Prevost concluded by stating that having the best transactional content experience will be core for the winners in the sports betting space.

“If you look at when cash-out was first introduced in the UK, there was this scramble from every other operator to then turn around and offer cash-out. I think you’re going to see similar patterns emerge here in the US,” he stated. “Once an operator delivers a world-class experience, other operators will be in a scramble to get there.” •

A world of new opportunities

NORTH AMERICA

CANADIAN GAMING SUMMIT CELEBRATES 25 YEARS AS CANADA’S PREMIER GAMING EVENT TORONTO WILL HOST THE 25th ANNUAL Canadian

Gaming Summit, Canada’s premier gaming event, from June 7-9 at the Metro Toronto Convention Centre

BY ERIN GALLAGHER

U

nder the theme “Canada - A world of new opportunities”, the annual Canadian Gaming Summit will reunite the Canadian industry in person at an exciting time.

“The past two years have been challenging for gaming in Canada, as they have been across the world, and the resilience of the industry has been on full display since 2020,” said Chuck Nervick, Senior Vice President of Media Edge Communications, a partner of the Canadian Gaming Association and publisher of Canadian Gaming Business.

“This resilience, innovation and relentless pursuit of the evolution of our industry is thanks to the strong leadership in and the dedication of the Canadian gaming industry. Having missed the last two years, this year’s Summit is the first chance in a long time for the industry to gather in person en masse.

“We have seen high demand and strong support from exhibitors, sponsors and registrants, many of which have never been involved with the Summit, and we are excited to welcome the industry back together.”

There is certainly no shortage of significant developments to discuss at this year’s event – Ontario opening

its regulated igaming market, the continuing transformation of Canada’s sports betting landscape and the ever-evolving product and technology innovation that characterises the industry.

Speaking to SBC Leaders, Paul Burns, President and CEO of the Canadian Gaming Association, explained why all these considerations make the 2022 Canadian Gaming Summit an unmissable event.

Discussing what attendees can expect from this year’s gathering, Burns began: “A lot has changed in the last two years in the Canadian marketplace, and this is a wonderful chance for industry veterans and newcomers alike to come together

for a great three days of interaction.

I also think we will be able to see the early results from the opening of the Ontario igaming market.

“There has been a significant amount of interest – between 30 and 40 operators are expected in the market within the first year – and I think we'll see the beginnings of that by the time of the Summit. We’ll also see new technology and innovators in the sports betting space and beyond.

There’s a great deal of excitement around this year’s event and it's going to be a great showcase for what's happening.”

The Canadian Gaming Summit, Burns continued, offers the opportunity to shine a spotlight on “everything great” in the gaming industry. By bringing

THIS RESILIENCE, INNOVATION AND RELENTLESS PURSUIT OF THE EVOLUTION OF OUR INDUSTRY IS THANKS TO THE STRONG LEADERSHIP IN AND THE DEDICATION OF THE CANADIAN GAMING SECTOR

sbcmagazine.com 35

A world of new opportunities

industry figureheads together, he believes that attendees will be able to gain further insight into the innovation and expertise on offer in Canada.

“The Summit has always been a chance to shine a spotlight on everything great in the gaming industry in Canada,” he said. “There are distinct attributes in every market in the world and Canada has unique relationships between government and gaming operators.

“The Summit brings people together to share ideas and network and is a great way for new entrants to the market to get to know the industry. We want to let the rest of the world in to see the great innovation and expertise that is here.”

So with Canada opening up to new operators, what opportunities are available to companies considering entering this burgeoning market? For the President and CEO of the Canadian Gaming Association, the Great White North gives companies access to a hospitable investor climate.

He continued: “Companies and brands are seeing the benefits of what's Canadian. Canada is a great place to create a beachhead for the North American market – we have

36 SBC LEADERS • MARCH 2022

a lot of strong features, from a very hospitable investor climate to access to capital markets to the depth and wealth of talent available across the country in the tech space.

“It’s an exciting time and given what Ontario is offering companies, it’s a chance for them to put their best foot forward to consumers. I think it will truly be a battle of product.

“Canada has always punched above

WE WANT TO LET THE REST OF THE WORLD IN TO SEE THE GREAT INNOVATION AND EXPERTISE THAT IS HERE its weight in the igaming space and we have seen a lot of great success from Canadians who have, until now, had to go abroad. Now, there is an opportunity for that innovation and expertise to stay and prosper here.

“Ontario is one of the largest jurisdictions in North America and its open-licence model for igaming, wherein anybody who wants to apply for registration is free to do so, is a unique feature in North America. We're seeing companies from both inside and outside “Canada is actively looking to

participate, there are new start-ups entering, and it’s going to produce a competitive and dynamic market.”

So as more and more companies step foot into Canada, responsible gambling has been placed at the top of the agenda, with Burns highlighting that CSR has been a core part of the industry’s DNA there for a considerable time already.

With Ontario choosing to regulate igaming and end the grey market, this will subsequently allow the creation of an industry shaped by the “best-inclass RG features”.

Burns added: “Dedication to responsible gaming has long been part of the industry's DNA in Canada.

Other parts of the world are having discussions that we had here over a decade ago. We have some of the leading lights in RG who have been exporting their expertise around the world. It’s something that has been in every jurisdiction in Canada and operators are seeing that dedication.

“One of the policy factors in Ontario choosing to regulate igaming and end the grey market was to close the loop to create a strong regulated marketplace with best-

NORTH AMERICA

in-class RG features built into the regulatory standards, while also allowing operators to show their own commitment and programs.

Prospective operators are embracing those standards and programs.”

Speaking about the main differences between the roll out of sports betting across the US and Canada, it was noted that there is a growing opportunity for Canadian sportsbooks to provide education to sports fans and bettors about the products on offer.

Alongside bettor education, Burns pointed out that there is an openness among sports fans to bet on sports even if they have not done so regularly before “We’ve seen in the Ontario regulatory standards that one big difference from the US is the limitation of inducements and offers to the public through advertising,” he said.

“That's a choice Ontario made, to not permit those to occur in mass-market advertising. Ontarians and Canadians have had access to online sportsbooks for years, whereas in the US there was very limited or no access to sports betting in many places. I would call Ontario somewhat of a semi-mature market when it comes to sports betting.

“There is lots of potential because there are a lot of sports fans, and research has shown an openness among sports fans to bet on sports even if they have not done so regularly before. That's an exciting opportunity for sportsbooks to educate novice sports bettors and give them new, innovative, and unique products.”

When it comes to the next five years, Burns predicted that there is going to be a lot of transition taking place in the Canadian betting industry as the market moves from grey into the white. Bringing his discussion with SBC Leaders to a close, the President and CEO advised that the industry must come together to focus on introducing fair regulatory frameworks.

He concluded: “There is going to be a lot of transition. As it has over the last few years, the online gaming and betting industry will continue to evolve. The future of the land-based casino sector is very important;

the government and partners and stakeholders in the industry want to see that sector recover fully. There are lots of investments in innovation coming from the land-based casino sector that will be of tremendous benefit. Then, of course, we’re going to see that growth of sports betting in the Canadian market.

“It’s a bright future right now after a very dark couple of years for our

WE ARE ON THE CUSP OF SIGNIFICANT CHANGE, FROM THE LAWS ON SPORTS BETTING TO THE REGULATION OF THE IGAMING MARKET IN ONTARIO

industry. We are on the cusp of significant change, from the laws on sports betting to the regulation of the igaming market in Ontario. We just need to make sure that all sectors of and partners in the gaming industry pull together to ensure the regulatory frameworks are fair and that we create a level playing field for the industry to compete. Ultimately, this is going to be a fascinating period of transition for the marketplace.”

For more information on the 2022 Canadian Gaming Summit and to register as a delegate, please visit www.canadiangamingsummit.com.

If you are interested in exhibiting, sponsoring or being a session presenter, please contact chuckn@mediaedge.ca

sbcmagazine.com 37

June 7-9, 2022 Metro Toronto Convention Centre, Toronto, Ontario, Canada

www.CanadianGamingSummit.ca

2022 THEME:

CANADA - A WORLD OF NEW OPPORTUNITIES There are many reasons for you and your entire team to join us this June in Toronto at the annual Canadian Gaming Summit:

25th

• We are back in or normal face-to-face format • Canada provides a wide range of new opportunities for product and service providers • A robust and relevant education program developed by the gaming industry • Recognized education program presenters

Please join us for the 25th Annual Canadian Gaming Summit

• Numerous engagement opportunities through Summit social and networking events • All delegates receive complimentary access to all meals, breaks and receptions

DEVELOPED AND COORDINATED BY:

OFFICIAL MEDIA PRODUCT:

Partnerships and operations

LATIN AMERICA

BY LUCIA MOURIÑO

A

HOW WILL DIFFERENTIATION SHAPE SUCCESS IN LATIN AMERICA?

s we edge further into 2022, the Latin American journey of online gaming success is a target for many aspiring and existing stakeholders. While there is still a lot to discover for many companies, those that have already set their plans in motion know that 2022 is the start of a new chapter.

But what do these plans look like? Are they really factoring in the dynamics of Latin America or are they set in a more legacy mindset of practices transferred from matured markets?

The region is rapidly gaining the attention from domestic and international start-ups to more incoming top tier global operators.

2022 will be the year where the region undergoes some form of reshuffle; Latin America will continue to be an emerging market, but one where established operators that have been testing their support systems in their ongoing operations will now have sufficient comfort to scale up and confidently seek stronger market share.

Global operators that have been in the region for the last two or three years can now increase their investment with a lesser degree of risk as they have gained regulatory, fiscal and legal experience while, at the same time, have plenty of historical customer data analytics to make stronger and more informed customer acquisition and retention decisions.

Any company that is on its journey into the region, whether currently generating revenue or on its final planning stages and ready to deploy and execute, should be well versed on the dynamics of the region. They have a game plan of their choosing based on their success and expectations criteria.

While I am one of many voices that strongly promotes partnerships into the region, I acknowledge that by no means it is the only way to enter the Latin American market. But time will be the best validator.

KYM SLEEZER, PRESIDENT AND CEO of gaming advisory

Differentiated partnerships

firm Triple Ripple Group, shares his personal in-depth analysis on what can be expected from the online gaming markets in Latin America in 2022

A well vetted and right-fit local partner will, as a minimum, provide a fast track time to market, solid regulatory, fiscal, legal and compliance turnkey

sbcmagazine.com 39

Partnerships and operations

services, a strong local network of service providers, as well as customer cultural and consumption behaviors and insights.

But Latin America requires a drill down of differentiation from the structure of traditional partnerships as well as for the execution of operations.

Everyone from B2B and B2C operators, content and service providers and the rest of the stakeholders need to adjust their traditional mindset of their niche if they want to match their revenues to their vision.

The primary partnership models in Latin America to run a B2C operation are equity, joint ventures and licensing rights agreements. Obviously, there

restructured if these operators want to achieve their expectations in Latin America. This includes content, services, support and pricing models, but also expanding the traditional boundaries and stretching into the B2C to nudge and support deployment and ongoing Go-Live engagement.

It’s already a work in progress for those that have partnered in LatAm but also it must be closely observed by anyone else looking to come into

are other ways to fund a new or existing operation and, of course, the structure of each specific agreement has various levels of complexity in the details that makes it unique to the parties involved.

It may be totally valid that international operators determine that to enter different markets in the region, they would be in a position of having different partnership models.

Regulation, size of the market, competition, investment levels and local partnership strength are but a few factors of why there could be differences in partnership models from one multi-market operator.

The traditional B2B technology partnership model must be

the region and proactively make the adjustments.

In Latin America, a profit sharing model under this concept can be devastating. Not all B2C operators are fully equipped to successfully get the operations off the ground. Timelines can be a constant ongoing moving target. This will create tension as modeling revenue projections could be difficult to establish.

The concept of managed services is already part of the arsenal of the more astute B2B operators. How this is presented as an insource or outsource service, how costs are built into it and support timelines to transition out of it still need further fine-tuning for seamless success and healthier

40 SBC LEADERS • MARCH 2022

THE TRADITIONAL B2B TECHNOLOGY PARTNERSHIP MODEL MUST BE RESTRUCTURED IF OPERATORS WANT TO ACHIEVE THEIR EXPECTATIONS IN LATIN AMERICA revenue streams.

From a B2C point of view, they too are looking at more resilience business efficiency. There is a growing awareness that multi-year commercial agreements where there are fees , development costs, upgrade costs and revenue share, puts a chokehold on profitability margins.

There is an increasing number of these operators that have realised that they can significantly reduce operational costs by equity ownership into a technology provider company.

In fact, there is a growing number of “built-to-sell” technical platform companies that are making their products available in the region.

While an increase in options in the supply chain is healthy and it creates an expanding ecosystem of stakeholders, the dust will eventually settle. From here to there, those involved in this evolving process must carve out and design an attractive model that is both profitable and allows for profitable growth in the region versus just expanding with negative profit margins.

All in all, regardless of the type of partnership, the successful companies, both small and big, will be the ones that adjust their business model and structure an operation where the value chain in both their revenue and cost models takes in consideration these legacy conditions and mindsets and make the necessary adjustments moving forward.

The flexibility and versatility to enter new partnerships or restructure current partnerships with this differentiated mindset will bring forth the market leaders in Latin America.

Differentiated operations An organisation has a lot of moving parts and is never a constant. Never more so in an emerging and evolving market where competition and market forces as well as availability of resources shift to accommodate opportunities and manage risks.

But one thing is constant in Latin American gaming: we are a high

LATIN AMERICA

Relationship marketing will require hyper personalisation.

The strategy for Latin America operators to create better and faster dividends is by focusing on the relationship from the onset. Year one marketing budgets probably will be less than $5 million for most incoming operators.

Monetising marketing investments must be scrutinised so that operators do not fall into a “follow the trend” trap and deal with a high player acquisition cost.

Regarding payment solutions, Latin America is and will continue to be a cash-based economy. To differentiate, operators must look beyond the traditional payment solutions. But, most importantly, operators must understand the dynamics of their customer base and understand the revenue potentials by different segments. They must look for payment solutions that cater not just to the banked customers but also to the underbanked and unbanked.

SENIORITY DOES NOT EQUAL EXPERIENCE OR, MUCH LESS, COMPETENCE AND EXECUTION

frequency and highly sociable consumer.

Operators must build their strategy with this at its core. Yes, ecommerce is growing and there is a growing comfort zone in digital consumption.

But this is a catalyst that will facilitate growth. Every operator will benefit from it. Realise the opportunity to differentiate and focus on the real opportunity and those will be the operators that will be better rewarded for their awareness, design and deployment of core-based initiatives.

I believe these are the drivers to design a differentiated strategy: upskilling the organisation; relationship and digital marketing; and payment solutions.

Upskilling the organisation is more than a resume. It is about developing the team to roll up its sleeves, to learn and apply, to test and adjust and to be challenged. It’s about raising the bar on deliverables.

It’s about discovery and creating commitment and achieving a sense of purpose and belonging.

It goes beyond the catchphrase of “localisation”. Seniority does not equal experience or, much less, competence and execution.

A strong upskilled team will build the strategy and make the right decisions and understand how to design the second and third drivers of relationship and digital marketing and amplifying the ideal payment solution offers.

Every customer wants instant access and gratification when they want to bet and when they want to collect a winner. Real time cash-in, cash-out and pay-in and pay-out is how to monetise maximum engagement. Operators must understand and consider all payment sources and look to integrate.

Where regulation is a constraint, lobbying must be fierce.

Companies that will dedicate the resources and allocate their energy in understanding the dynamics of their chosen markets in the region will thrive. There is no easy path, and nothing is guaranteed, but designing around high value market insights and designing a differentiated strategy should facilitate success.

I look forward to what 2022 will bring to Latin America. As a strategic resource in the region, I look forward to being part of success stories as well as collaborating with the various stakeholders in building a responsible and resilient industry. Fortune favours the bold! •

sbcmagazine.com 41

New opportunities

LATIN AMERICA: THE NEXT FRONTIER FOR BETTING? AS MORE COUNTRIES ACROSS LATIN AMERICA

Arcangelo Lonoce, Head of Business Development at Habanero

begin to introduce gambling legislation, which markets should betting companies be considering for future expansion?

BY FERNANDO NOODT MOLINS

G

ambling regulation across Latin America has come a long way in recent years, with more and more countries expanding and modernising their own sports betting frameworks.

It’s without a doubt that the COVID-19 pandemic increased the adoption of online gaming legislation exponentially in some of these countries, but the eyes of the industry remain firmly fixed on the developments taking place in Brazil.

For Arcangelo Lonoce, Head of Business Development at Habanero, Brazil presents a wealth of potential for the supplier.

Speaking to SBC Leaders, he explained that the developer has worked to establish different business links throughout Latin America. These, he said, are "key" agreements - all of which are with major, established companies in the markets where they operate.

Currently, Habanero has a stronghold in both Colombia and Mexico - two jurisdictions which the company uses to project its business on to the rest of Latin America.

As an older market, Colombia has given Habanero access to specific data which has enabled the developer to double in size - both in terms of online sports betting and casino games.

Shining a spotlight on Mexico, Lonoce praised the company’s work with some "very important operators" over the past three years, assuring that this allowed Habanero to reach

42 SBC LEADERS • MARCH 2022

"many users" and drive interest among players.

Likewise, he highlighted the increasing interest in Chile and the Argentine market as well, where Habanero has just gone live in both the city and province of Buenos Aires during 2021, helping formerly-localised

CURRENTLY, HABANERO HAS A STRONGHOLD IN BOTH COLOMBIA AND MEXICO

operators with the launch of their hybrid operations.

Looking towards the future, Lonoce explained that Habanero has been focusing on the recently regulated Panamanian market and anticipated that we will see new slots from them in 2022.

"We continue to focus on quality," he said, adding that throughout 2022 there will be monthly launches of one or two titles. All will have different themes and varied graphics to reach as many players as possible, while

LATIN AMERICA

still focusing on original mathematical models.

In addition, he explained that they will seek to continue growing in the markets where they already have a presence and continue to certify themselves in new ones as they launch, in order to set foot there as soon as they can.

Plans have also been put in place to expand the company’s Malta-based internal team to ensure that it meets the evolving needs of its European clients.

But while European growth and expansion within existing markets is high on the agenda, all eyes remain firmly fixed on Brazil; with Lonoce emphasising that the country “is a gigantic market with a lot of potential” for its population and other factors.

Regulation in Brazil - a complex story Gambling regulation in Brazil has generated a lot of debate in recent years, with continued expectations that Congress will move forward with the introduction of a regulated gambling framework. But unfortunately,

title is the Jogo do Bicho, otherwise known as The Animal’s Game.

The game is very similar to that of the lottery, featuring an animal for each number. During the game, players can bet as much as they want and, as is the case with a number of offshore sites, more than they can afford.

ALL EYES REMAIN FIRMLY FIXED ON BRAZIL

Brazilian President Jair Bolsonaro

we’re still waiting for that to happen.

Since the 1940s, casino gaming has been banned - although this hasn’t stopped people from gambling via offshore sites. Still, the most popular

But since 2014, Jogo do Bicho has been the subject of much discussion in the Brazilian parliament. Two proposals have been submitted to policy makers - the first to regulate all forms of gambling, including Jogo do Bicho; the second to only permit gambling at integrated resorts that would be a tourism booster.

In December 2021, the Chamber of Deputies approved the request to urgently deal with bill PL 442/91, which legalises casino games, betting and bingo. This allows the floor to vote on the immediately without having to go through any parliamentary reviews.

However, the proposal faces

sbcmagazine.com 43

New opportunities

opposition from religious lawmakers who reject gambling in all of its forms.

That’s why Congress formed a task force to adjust the project and try to bring the prohibitionists on board.

Either way, the Brazilian President Jair Bolsonaro has already announced that he will veto any project that Parliament approves to regulate the market.

Even if that happened, Congress itself could vote to reverse the veto, although it would need a majority consensus to do so, which, right now, seems hard to achieve.

Regardless, the Supreme Court has recently annulled the federal state's monopoly on lottery gaming and given each Brazilian province the power to determine its own regulation. This has opened the regional lottery market, in addition to the fact that the ruling

JOGO DO BICHO HAS BEEN THE SUBJECT OF MUCH DISCUSSION IN THE BRAZILIAN PARLIAMENT

44 SBC LEADERS • MARCH 2022

LATIN AMERICA

also authorised them to control sports betting within their jurisdictions.

The wider Latin American market: an overview Colombia became a beacon for the Latin online gaming industry after opening its doors in 2017. This boosted the market’s capacity and, according to the latest report by Coljuegos, sales reached 36 trillion Colombian pesos (about $9bn) in the first 10 months of 2021.

Another active and attractive country for international operators is Mexico which has already authorised remote betting. However, experts agree that there is still room for improvement and market conditions need to be updated to adjust to meet current demands.

The pandemic acted as a catalyst for Argentina’s introduction of a digital industry. Its localised market is very mature, but the online gambling industry is still in its infancy.

Uruguay is a unique case for the region, with a state-owned monopoly

BRAZIL IS A GIGANTIC MARKET WITH A LOT OF POTENTIAL for the online market, while Paraguay also has a single operator for sports betting, private-owned Daruma Sam. The online market is not regulated in Ecuador, Bolivia or Peru, although the latter "allows everything that is not forbidden" - meaning that there is currently a market operating. Chile does not have its own regulation either but, among this group, it’s one of the most advanced and could soon establish new regulations.

Central America, on the other hand, has just seen Panama regulate its industry, which will likely create a major tourism boost for the country.

Meanwhile, El Salvador continues to deepen its foray into the blockchain world and will launch a casino in the metaverse, linked with non-fungible tokens (NFTs). •

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A new reality

METAVERSE: A PATHWAY TO A NEW GAMBLING SCENE? THE METAVERSE. A massively scaled and interoperable

network of real-time rendered 3D virtual worlds which can be experienced synchronously and persistently by an effectively unlimited number of users. Enough to send the imagination into overdrive! But what are the implications for a gaming sector that has its roots very much in the real world?

BY JAMES ROSS

T

o paraphrase Marvel’s Doctor Strange - the metaverse is a concept that we know frighteningly little about.

To put it as plainly and simply as possible, this is a virtual reality space in which users can interact with a computer-generated environment and other users. But as the world is well

46 SBC LEADERS • MARCH 2022

aware, nothing is as straightforward as it seems.

Question marks still remain on how, or if, the metaverse will work in numerous sectors; online gambling is no exception to this. But one person who is optimistic about its potential is Mark Robson, CEO at Eminence Holdings, who believes that online gambling “will work better in the metaverse”.

Robson noted that through the metaverse, things such as onboarding, payments, and locating favourite slots will be made much easier. Moreover, the CEO stated that sportsbooks will become “much more exciting”.

He continued: “Traditional sports betting can already be done when you’re at the venue of the event taking place, but the metaverse will blur the lines between real life and cyberspace through virtual and augmented reality.

“From a business perspective, there will be far more opportunities to crosspromote, target your advertising and create a better winning feeling and more excitement for customers.”

Another optimist regarding the metaverse was Ben McDonagh, CEO and Co-Founder of Green Jade Games, who remarked that by being “less Black Mirror and more hopeful”, this

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Mark Robson, CEO at Eminence Holdings

new reality can become the “perfect destination for a myriad of consumers” with a heightened emphasis on those with limited physical abilities or those who are introverts.

“We can focus on those with limited physical abilities that can’t take the walk they used to, or ever could, to a casino where they take pleasure in the whoops and hollas of a live gambling scene,” McDonagh explained.

“We can focus on those that are introverted and can hide behind a digital persona that allows them to be ‘who they dream of being’ or just fancy playing the role (think Aech from Ernest Cline’s Ready Player One) but more than that, we can open the world to a community that want to spend time together, even if it's just to people (avatar) watch and let the day pass by and where colour, creed and

THE METAVERSE WILL BLUR THE LINES BETWEEN IN REAL LIFE AND CYBERSPACE THROUGH VIRTUAL AND AUGMENTED REALITY

Ben McDonagh, CEO and Co-Founder of Green Jade Games

perceived worth are values left in an unjust IRL world.”

Whilst the possibilities are endless for the metaverse, there is a mouth watering prospect for operators to create a social platform for players from all corners of the globe to play and interact. But with this comes regulatory and social challenges.

Will there need to be meta regulations, as we see with the online and land-based sectors? Will there be campaigns popping up for responsible meta gambling?

Evoplay’s CCO, Vladimir Malakchi, believes that since meta gambling is a fusion of both offline and online, it will bring together two common frameworks that mix both experiences resulting in existing core legal foundations being in place, but also adapted in light of further developments.

Malakchi also went on to stress: “It’s important that we focus on protecting those working and playing in the metaverse, much like we would for land-based or online initiatives.”

Suren Khachatryan, Technamin’s Founder and CEO, offered a more

Vladimir Malakchi, Evoplay’s CCO

IT’S IMPORTANT THAT WE FOCUS ON PROTECTING THOSE WORKING AND PLAYING IN THE METAVERSE compelling answer by claiming the metaverse will definitely need to enforce responsible gaming policies just as strictly as the sector does in its online vertical, stressing that “at the end of the day, people are people”.

He noted: “Whether in physical locations or in a virtual reality, standards must be met in order to ensure that players enjoy their time in total safety. The advancements we have made in online gaming allow us to follow responsible gaming regulations in a less rigid manner through customising the experience for the player.

“The same can be done in the metaverse, in an even more exciting way. The more customisable the games and the environment, the safer everything will be for the player.”

Robson also noted that whilst the metaverse will be all-encompassing,

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A new reality

with that comes “the opportunity for abuse from both the consumer and some operators”.

The CEO of Eminence Holdings stated: “Some virtual worlds will allow each and every individual onto their site, with exposure to ads and links to adult content, irrespective of age restrictions or geography.

This is why it is imperative that there are strict regulations placed on each world and each casino in these worlds.

“In theory, this could be similar to the current procedure for online casinos whereby ID is verified, and IP checks/geo-filtering is used. I do think there will need to be some changes regarding AML procedures and responsible gaming guidelines to factor in the metaverse.”

If meta gambling becomes the new normal for the industry over the next decade, could we see it attempt to replicate its land-based vertical?

This is a notion which was shut down

by Robin Reed, CEO at HappyHour, who insisted that it was a “narrowminded mistake”, stating that

48 SBC LEADERS • MARCH 2022

experiences or content built for one platform/environment to another can not be translated.

“We need to build completely new experiences, however keeping the very core emotional and material values that are making gambling appealing to people, in mind,”

I EXPECT IMMERSIVENESS ON STEROIDS, UNPRECEDENTED SPONTANEITY AND EXTRAORDINARY STIMULATION OF THE SENSES Reed expressed. “When walking into a classical casino you escape a mundane everyday life and you enter another world. In the metaverse you can do this to a level that is almost unimaginable.

“I expect immersiveness on steroids, unprecedented spontaneity and extraordinary stimulation of the senses, all wrapping the product which is perhaps the strongest

and most compelling entertainment there is: gambling.”

Delving deeper into the risks associated with the Metaverse, EvenBet CEO Dmitry Starostenkov highlighted that several risks may arise from using a third-party platform for hosting and promoting games.

These include limited access to the user database, being dependent on the frequently changing platform policies and paying commissions that can sometimes be “enormously high”.

He added: “From the overall industry perspective, a new entertainment giant may impose a disturbing threat to independent operators. Many new and casual players may prefer a trusted, well known platform that they are already using for everyday social activities.”

McDonagh noted that the range of risks is “vast” but not necessarily too far away from the issues that the industry currently deals with.

“The mechanism of reward in online casino is already a hot topic for regulation but what is different in meta is suddenly there are other items of

CASINO

value that you can hope to acquire such as NFTs - think jackpot in a slot being an NFT rather than a cash-money value,” he added.

“I’ve already covered immersed time and now we can get really deep into how one derives meaning in life, because who’s to say that living in a simulation isn’t the ultimate goal?

“Humans are believed to be the only ones who can imagine and dream in the way that we can, so what better utilisation of our superior brain power than to get lost in a living fantasy?”

Offering a more conscious approach, Robson noted that in terms of gambling, the metaverse will bring a “more thrilling and sensory experience to the customer” with greater highs potentially leading to greater lows, longer engagement hours and, potentially, problems associated with this.

Suren Khachatryan, Technamin’s Founder and CEO

NO ONE KNOWS HOW FAR THIS TECHNOLOGY CAN GO OR THE APPETITE FOR MAINSTREAM ADOPTION

Robin Reed, CEO at HappyHour

Dmitry Starostenkov, EvenBet CEO

Alex Kornilov, Betegy CEO

He added: "We can't, and won't, ignore this possibility. So we need to ensure we do everything in our power as an industry to leverage technology to be there for our customers and promote responsible gaming. “ On the contrary, Betegy’s CEO Alex Kornilov emphasised his confidence that the metaverse will work but stressed there is no way to define its potential as “no one knows how far this technology can go or the appetite for mainstream adoption”.

He concluded: “In principle, you’ll have two types of companies that set out in this space. The pioneers/ early adopters who will learn from trial and error and create the first viable working products. You’ll then have the larger companies which will then acquire the smaller, more agile winners who will have learned from this process.

This is the same with any new tech.

“I’m hugely confident the metaverse will work – there’s going to be surging demand across both VR and online casino in the years to come – get it right, and you’ll be onto a winner. But again, as this industry doesn’t exist yet, I can’t say how big those winnings would be!” •

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How much is too much?

CALLING THE INDUSTRY TO ACCOUNT ON SLOT DESIGN AND SOCIAL RESPONSIBILITY BETSSON’S PAUL MALT has been around the game

design business long enough to understand that there are crystal clear lines to be drawn when it comes to good taste, decency and social responsibility. Cross them at your peril!

BY CHRIS MURPHY

W

hen does a slot title go too far in terms of pushing the boundaries of social responsibility and good taste and decency? The

50 SBC LEADERS • MARCH 2022

question is increasingly relevant as game developers compete to deliver compelling game content that can bestride the visceral and the virtuous, while avoiding the baleful gaze of industry regulators.

Offering his view on that ‘big ask’

was Paul Malt, Head of Games at online gaming firm Betsson Group. Looking at responsibility for slot design and how the sector currently handles social responsibility, he chose to reference the three main tenets of the Gambling Act 2005 as a starting point.

“There are three main objectives which support the whole basis of gambling regulation, and slot game design needs to consider them all.

These objectives are that crime should be kept out of gambling, it should be conducted in a fair and open way and children and

CASINO

other vulnerable persons should be protected from harm or exploitation from gambling.”

He warned: “Slot designs that fall outside of these responsibility parameters are less likely to see wide area release to the end user. This is because operators, and especially those targeting regulated markets, understand that they are ultimately responsible for protecting players and simply will not stock games in their lobbies that do not meet the requirements set out under the licence or licences they hold.

“This is why it is so important for developers to understand the three main objectives that underpin gambling regulation and design and develop content within these boundaries.”

Malt also has some clear views as to the key requirements that slot developers need to account for when factoring in social responsibility at the design stage. He’s in no doubt, for example, that playing slots is very much a ‘grown up’ pastime.

SLOT DESIGNS THAT FALL OUTSIDE OF THESE RESPONSIBILITY PARAMETERS ARE LESS LIKELY TO SEE WIDE AREA RELEASE TO THE END USER “Playing slots and gambling in general is fundamentally an activity for adults,” he advised. “In addition, the vast majority of operators are live across multiple markets and have many different player demographics and segments to engage with. This means that game providers are pretty much free to develop the content they want, so long as it is aimed at adults and will appeal to the players the operator is targeting.

“Of course, operators will have to consider the responsible gambling measures required under the licences they hold as well as their own safe gaming policies when it comes to deciding on the content they stock, so developers must also be aware of this when designing and building their slots.”

But for some, that grown up approach to slot entertainment

is veering a little too close to the rubicon, prompting the inevitable question: how much is too much when it comes to designing slot titles?

When does an adult theme go beyond

HOW MUCH IS TOO MUCH WHEN IT COMES TO DESIGNING SLOT TITLES?

the realms of good taste?

Malt believes that a line has already been transgressed, and more than once. He commented: “In my opinion, the ‘too much’ boundary has been crossed on many occasions, especially when it comes to the sexualisation of themes and characters within slot games. However, as I mentioned above, so long as developers are designing games for adult audiences

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How much is too much?

then it is down to the specific operator if they wish to stock games based on such themes or not.”

While Malt is keen to expound the virtues of the Gambling Act’s aforementioned three main tenets, and the industry’s duty to adhere to them, he also emphasised the need for balance and some real world context.

He explained: “It’s worth mentioning studies from the video game sector, and in particular the impact violent games have on crime. The studies have generally not supported the existence of causal links, while researchers have also found no links between violent video gameplay and anxiety, depression, somatic symptoms or ADHD. “This research needs to be considered in the real money gaming

RESPONSIBILITY SITS WITH OPERATORS AND HOW, OR IF, THEY MAKE THIS CONTENT VISIBLE TO THE END USER

52 SBC LEADERS • MARCH 2022

CASINO

sector especially when you take into account the additional levels of protection provided to consumers through minimum age requirements, KYC and the ability to self-exclude.

So for balance, I think that whether a game is ‘too much’ needs to be looked at on an individual basis and with these extra levels of protection in mind, too.”

In terms of who is ultimately responsible for what is socially acceptable within the realms of slot design, Malt offered an interesting perspective along the lines that while game designers will always push the envelope, it’s the operator that plays the role of arbiter.

“Ultimately, the operator has a sense of responsibility and specific guidelines to adhere to, so will always be the one to make the final call on whether to release a game or not,” he said. “No outside pressure from the game developer should influence this as ultimately it is the operator’s licence, and reputation, that is on the line.”

Reinforcing the point, he added: “As with film and video gaming, multiple

ULTIMATELY IT IS THE OPERATOR’S LICENCE, AND REPUTATION, THAT IS ON THE LINE adult genres are with us and are likely to stay. Responsibility sits with operators and how or if they make this content visible to the end user.”

It looks inevitable, however, that the industry will turn to good oldfashioned numbers to shine a guiding light on the parameters of decency and social responsibility.

Malt concluded: “The use of data and analytics can help gain insight into customers and their individual preferences, and then the use of game recommendation engines can optimise lobbies for each player to provide a better, more socially responsible experience. This combination of data and analytics provides operators with the insight they need to make better, more informed decisions and improve responsibility.” •

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New horizons

MIKAEL LIJTENSTEIN: SETTING SIGHTS ON FURTHER EUROPEAN EXPANSION SPEAKING TO SBC LEADERS, the CEO of

AstroPay explains how the company plans to draw upon its expertise in emerging markets to fuel its expansion across Europe and why an in-depth knowledge of individual jurisdictions is needed to navigate an ever-changing payment landscape

BY ERIN GALLAGHER

T

he European market has undergone drastic changes in the last few years, with a number of countries across the continent introducing new regulations on payments, gambling and ecommerce.

For AstroPay, its European entry proved to be challenging at first - largely due to the complexity of the region and peculiarities of each individual market.

But by drawing upon the company’s global experiences, CEO Mikael Lijtenstein explained that AstroPay has been able to overcome these obstacles and meet the needs of its European customers.

He told SBC Leaders: ”Understanding the complexity of the region and the particularities of each market within Europe was a challenge at first, but this is not something new to us. We know each market is different, and the

54 SBC LEADERS • MARCH 2022

payment landscape is different.

“For more than 12 years we have been working in developing local solutions by listening to our users to make sure we fully understand what our customers want. This is where our experience comes as an advantage.

It allows us to offer exactly what

our clients need by respecting the differences of each individual user.

“We also have dedicated teams to source feedback from our users, especially the early adopters in each country, to hear about their experience using our product, suggestions for improvements, and

PAYMENTS

WE WANT TO GET TO KNOW OUR USERS, BE CONNECTED TO THEM AND LISTEN TO THEIR NEEDS which sites they'd like to use AstroPay on, among other things.

“This is why we are a customer-centric company, we work with our customers and they help us progress day by day.”

AstroPay made its debut into the European market back in 2021, planting its flag in Portugal, Spain and the United Kingdom.

With populations that have a penchant for contactless payments, this presented a new window of opportunity for AstroPay to expand its global footprint. To ensure the company’s success within Europe, Lijtenstein took some time to work alongside the company’s clients and partners to create a truly unique solution.

“We always try to be 100% compliant with these principles: to be fast, easy, and secure,” Lijtenstein shared. “By applying these principles on a daily basis, we have acquired millions of users and, of course, we don't stop there.

WE KNOW EACH MARKET IS DIFFERENT, AND THE PAYMENT LANDSCAPE IS DIFFERENT “We want to get to know our users, be connected to them and listen to their needs. By doing it this way, the user who tries AstroPay once, continues to choose us over time.”

So does this mean that AstroPay has abandoned its focus on emerging markets? You can probably guess that the answer to this question was a resounding no.

With a considerable amount of experience within the emerging markets, the payments provider believes it is well placed to simplify the risks and challenges that its clients may face - both across younger and more mature markets.

To do this, AstroPay deploys a number of resources which help provide an elevated user experience by executing A/B testing, surveys and listening to its consumers’

EMERGING MARKETS REMAIN A STRONG FOCUS FOR US AS WE ARE EXPERTS IN SIMPLIFYING COMPLEXITIES FOR OUR CLIENTS AND CUSTOMERS

feedback. This, in turn, will help with understanding customer needs and what they value most.

Lijtenstein continued: “Emerging markets remain a strong focus for us as we are experts in simplifying complexities for our clients and customers.

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New horizons

“However, we want to bring our solutions and services global, as a one stop solution for the needs of our international clients, and Europe is a key market for us to achieve that.

“For those who want to succeed in emerging markets such as Africa, Asia and Latin America, we would advise partnering with a company that has the expertise in these regions and a network of local payments providers, as these markets can be complex and difficult to understand at first.

“Being close to the users is paramount to engage them and that is why we partner with more than 200 payment methods which are easily recognised by the customers.”

Understanding that every market has its own unique set of characteristics, Lijtenstein noted that the common factor between emerging and mature markets is a demand for both convenience and security.

This, he added, has been demonstrated by the growing demand for AstroPay’s anti-fraud systems.

“Each market is different and

56 SBC LEADERS • MARCH 2022

BEING CLOSE TO THE USERS IS PARAMOUNT TO ENGAGE THEM AND THAT IS WHY WE PARTNER WITH MORE THAN 200 PAYMENT METHODS WHICH ARE EASILY RECOGNISED BY THE CUSTOMERS every user is different, but one thing common is that all users demand convenience and security. This is proven in our anti-fraud systems that are trusted by our users and are second to none as we tested it in the most difficult markets to ensure that as we enter Europe, we can deliver a very secure payment solution to our clients and users there.

“Furthermore, with so many options around the corner, you need to make sure that the first contact that your customer has with your solution will convert into a successful payment,

WE ARE ALREADY LOOKING AT THE NEXT EUROPEAN COUNTRIES TO ADD INTO OUR PORTFOLIO

and that the user will feel comfortable using your product.

“This is critical to acquiring new users. We have applied it in these markets, and we will continue to apply it in the rest of Europe.”

When considering what lies ahead for AstroPay’s European plans, expansion into new markets was high on the agenda - alongside new additions to the payment provider’s portfolio.

Keeping the list of countries under wraps, Lijtenstein concluded: “We are already looking at the next European countries to add into our portfolio and we have a very ambitious roadmap.

“We are constantly working to add more payment methods and more merchants to adopt our solutions, so that our users can pay and withdraw how they want, and where they want.” •

Overcoming payment challenges

PAYMENTS

PAYMENT PROCESSING: A CHALLENGE TO PLAYER ACQUISITION? AT THE RECENT SBC SUMMIT NORTH AMERICA, panellists

discussed the reasons why a long-winded payment process can present huge challenges for player conversion

BY ERIN GALLAGHER

A

s more US states begin to open up their doors and welcome in a regulated sports betting market, questions are inevitably being raised over the different payment options available for players. And it comes as no surprise that card payments are increasingly highlighted as a preferred option for many bettors.

Speaking as part of the ‘Staying ahead of the game – players' real payment preferences’ panel session,

FanDuel’s Payment Operations Director, Trent Striplin, disclosed that a convoluted payment process can be “one of the toughest parts of the conversion funnel”.

He told delegates that a tricky payment process can often deter someone from placing a bet which, from an operator’s perspective, will hand an advantage

IT CAN BE ONE OF THE TOUGHEST PARTS OF THE CONVERSION FUNNEL

to their competitors.

“The consumers’ preference is to use their cards,” he said. “It’s a device they use every day, whether it's an online purchase or a retail purchase.

Everyone has a card in their wallet or attached to a digital wallet."

He added: “It’s the consumer preference, and it can be a very frustrating and confusing process when to use that card everywhere else and it doesn’t work on an operator site. It can be one of the toughest parts of the conversion funnel.”

Greg Kirstein, Paysafe’s Vice President of Business Development for North America iGaming, echoed a similar view, but expressed that consumer confidence in operators' payments capabilities has increased dramatically in recent years.

He remarked: “As a consumer, when you start to see other payment

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Overcoming payment challenges

IT’S GOING TO PLAY WELL FOR OPERATORS AND NEW PROVIDERS THAT ARE LOOKING TO DIP THEIR TOES INTO GAMING methods and they work the same way they do in other parts of ecommerce each and everyday, it just brings up confidence.

“I think that’s what we’re starting to see now and it’s going to play well for operators and new providers that are looking to dip their toes into gaming that historically haven’t been there.”

Offering further insight on the Canadian space, Christopher Granger, Lottery & Gaming Lead, Visa Inc, believes that the sector is learning. He

58 SBC LEADERS • MARCH 2022

warned, however, that it’s important that it should continue learning from the European, Australian and Rest of World markets which have been ‘so much more advanced’ than North America.

He added that payment providers are continuing to liaise with partners from across the betting and gaming industry to help deliver a better experience for sports bettors.

“To compare what’s going on in Canada right now, it’s a pretty close comparison to what we had in the US four years ago,” Granger observed.

“We’re trying to take those learnings as far as the issuers are interpreting it, whether they are understanding it.

“We’re working with partners and trying to do fact gathering, have conversations with issuers and tech

partners and the like, so that we can have a better experience than what we had in the states when sports betting was first legalised.”

But while it is promising that players are beginning to trust operators more when it comes to online transactions, for Kamran Hedjri, Group CEO of PXP Financial, there must be an increased focus placed upon consumer education.

He added that in the last few years, we are also beginning to see approval rates “getting better and better”.

CUSTOMERS ARE HAVING A BETTER EXPERIENCE AND IT CREATES AN ALL-ROUND MORE ENJOYABLE FLOW

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Director stated that the overall payment process presents the greatest challenge to customer acquisition for sports betting operators.

He concluded: “The landscape is changing. Customers are having a better experience and it creates an allround more enjoyable flow.”

Hedjri and Striplin found further common ground with regards to demographics, as both observed that younger and older customers have very distinct payment preferences.

However, Hedjri added that country

Greg Kirstein, Paysafe’s Vice President of Business Development for North America iGaming

CONSUMERS ARE USING THE PAYMENT OPTIONS THAT THEY USE IN THEIR DAY-TO-DAY LIFE and state-based considerations must also be taken into account, saying: “It is very much country related and very local. What happens is that the consumers use the payment options that they use in their day-to-day life, and the younger demographic like to use Venmo, and Apple Pay and Google Pay – these are for the younger generations.

“It’s different from market to market, and state-by-state. We have entered 15 states now and are offering our payment options there. We are seeing a different perception of payment options there.”

“The approval rates are getting better and better and so we are changing our approach. But what is important for the operators is that they can pass consumers through as much as possible and this offset this negative experience of card rejection.

“We see that confidence is increasing more and more, and the level of education and understanding on how the operators are dealing with this with the help of payment providers is improving.”

The changes to approval rates was something highlighted by Striplin, who shared the view that these have increased over the past two years from around 30-40% to the current standing of 80-90%.

However, the Payment Operations

Christopher Granger, Lottery & Gaming Lead, Visa Inc

Striplin also noted that peer-to-peer apps such as Venmo, Cash App and Zell appeal to a younger demographic, many of whom are using these as a primary banking vertical as opposed to traditional institutions such as Wells Fargo or Bank of America, in a US context.

“Typically older players tend to lean towards ACH, but credit cards across the board are widespread across all demographics,” he said.

“We tend to see older demographics skew towards ACH, especially when you’re entering checking numbers and routing numbers, that’s something they’ve used before and are familiar with.

“The younger generation has grown up with PayPal, so they have that setup and have their cash bank accounts, they don’t have to enter their information and it’s safe and secure.”

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Tough competition

LOTTERY

UK NATIONAL LOTTERY: A NEW ERA? AS WE EDGE CLOSER

to finding out the results of the Fourth National Lottery Licence competition, we assess the hopefuls’ chances and the challenges they face in the meantime

BY CHARLIE HORNER

I

n October last year, the UK Gambling Commission confirmed that it had received four bids in the Fourth National Lottery

licence competition, the most since its inception in 1994. So now the race is on with all four competitors vying for that 10-year contract.

Camelot, the ever-present incumbent, is under fierce pressure to win another term, with the Czech Republic’s Allwyn, Italy’s Sisal and Richard Desmond’s Northern & Shell all taking a shot at becoming the National Lottery operator. Could this be the year that Camelot is dethroned?

We’re now at the stage where the applications are being evaluated, with each applicant expected to provide a presentation to the UK Gambling Commision (UKGC) in the coming weeks and months. With the evaluation process supported by the

Commission’s lead advisory group, Rothschild & Co, licensee hopefuls have a tough road ahead of them.

The process is shrouded under strict secrecy, with little being leaked into the public sphere. A decision was expected in ‘early 2022’, with reports stating that the winner might have been announced as early as February.

And in the event that Camelot is defeated, the licence will be subject to a two-year handover period.

Intriguing times lie ahead in the UK lottery space with Camelot battling criticism from MPs and campaigners questioning its priorities in recent months.

LICENSEE HOPEFULS HAVE A TOUGH ROAD AHEAD OF THEM Allwyn has set out its stall to become a global lottery brand, ferociously targeting the UK and US markets in a strategy that has included a fresh re-brand and enlisting the help of some of the UK’s most influential figures in sport, charity and business.

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Tough competition

Lord Sebastian Coe, Allwyn Board of Directors

Camelot criticism Undoubtedly, the key factor at play in the process is which operator can help maximise contributions to good causes, as set out in the National Lottery’s mandate.

Numerous community, cultural and sporting organisations currently rely on lottery funding to continue operating - many of which were hit hard by the global pandemic. So eyes are eagerly watching events unfold, with Camelot coming under significant scrutiny for its recent good cause contribution record.

Carolyn Harris, Labour MP and Chair of an all-party parliamentary group for gambling-related harms, has urged Camelot to remove any National

THE KEY FACTOR IS WHICH OPERATOR CAN HELP MAXIMISE CONTRIBUTIONS TO GOOD CAUSES

62 SBC LEADERS • MARCH 2022

Lottery branding from its portfolio of online instant games.

Concerns have been raised over whether Camelot’s instant games have contributed smaller percentages to good causes to attract more players through higher jackpots.

The operator’s figures detail that 31% of the income from draw-based games fund charitable and societal causes, compared with about 9% from scratchcards and 12% from instant win games.

Harris told The Observer: “The National Lottery is now unrecognisable from when it was launched. It is not acceptable that they are using what people trust as a brand for good causes to encourage people to gamble. It’s appalling.”

The former Leader of the Conservative Party, Sir Iain Duncan Smith, who acts as the Vice-Chair of the all-party parliamentary group, added: “There should be a fixed percentage on the amount that

THE NATIONAL LOTTERY IS NOW UNRECOGNISABLE FROM WHEN IT WAS LAUNCHED goes to good causes. The operator is beginning to look like any other gambling company.”

Attempting to understand the impact of National Lottery funding on those who it helps most, the Department for Culture, Media and Sport quizzed three athletes as part of the evaluation process of the competition.

In a discussion entitled ‘What next for the National Lottery?’, the threetime Olympic gold medallist swimmer Adam Peaty responded to claims from MPs that the operator’s profits have soared much higher than its contributions to good causes since 2010.

“It’s hard because it’s gambling. Are

LOTTERY

we funded to make them look good?”

Peaty posited.

“I think if we’re doing that, then there should be more funding. If your profits are going up by 120% and good causes are only going up by 2%, then it doesn’t take anyone with two brain cells to go ‘hold on a minute, what’s going on here?’”

the listing to expand its reach into the ‘highly attractive’ US lottery market and drive its organic and inorganic growth metrics.

Sir Keith Mills, Allwyn UK’s Chairman and the man charged with leading the firm’s bid in the competition, commented: “It’s exciting to see our parent company’s appetite for growth and the desire to bring lottery expertise to new corners of the world.

And whilst we have already submitted our bid for the Fourth National Lottery Licence, this partnership only makes our proposition stronger.”

Aiming to adapt to the UK’s culture and strengthen its hand in the competition, Allwyn appointed Lord Sebastian Coe to its board of directors.

Lord Coe is the current President of World Athletics and was instrumental in London’s bid to host the 2012 Olympic Games. He is seen as key to Allwyn’s efforts in the National Lottery licence competition.

THREE OTHER OPERATORS BELIEVE THEY CAN PROVIDE A FRESH PERSPECTIVE FOR THE NATIONAL LOTTERY Camelot’s position as a 28-year incumbent of the National Lottery licence has led to questions of complacency, given the lack of true competition throughout its tenure.

However, as the increased rival bids pile on the pressure, questions marks are being raised over whether the company is now an antithesis of the lottery’s mandate, prioritising profit over charitable and societal benefits.

Waiting in the wings, three other operators believe they can provide a fresh perspective for the National Lottery, steering its focus back towards providing for good causes.

Carolyn Harris, Labour MP for Swansea East

Allwyn on the charge In the Czech Republic, Allwyn has been preparing to evolve into a global lottery brand, building upon its success in Europe. Namely, the firm formerly known as Sazka Entertainment - announced a rebrand in December of last year.

It stated that its rebrand reflected the group’s “effort to reposition as a global business”, as a result of the recent transformation of its operations and enlargement of its business through strategic M&As. Having previously established Allwyn as a UK-based subsidiary in 2020 to battle for the National Lottery licence, the commitment to a rebrand is indicative of a company with confidence in the UK brand.

Going from strength to strength, the firm recently unveiled its intentions to become publicly listed on the New York Stock Exchange in a transaction worth around $9.3bn, 11.5x higher than its most recent EBITDA. Partnering with the NYSE-listed Cohn Robbins Holding Corp, Allwyn expects

Sir Iain Duncan Smith, Conservative MP for Chingford and Woodford Green

IT’S EXCITING TO SEE OUR PARENT COMPANY’S APPETITE FOR GROWTH AND THE DESIRE TO BRING LOTTERY EXPERTISE TO NEW CORNERS OF THE WORLD Karel Komarek, the group’s Chairman, explained: “We’re honoured to have him join our team as its first Independent Non-Executive Director. He brings tremendous additional strength to our international perspective as we strive to maximise the raising of funds for good causes in all of the markets we serve.”

Allwyn’s efforts to reposition itself as a global brand, twinned with its tailormade approach to the UK market, signals that it is modestly optimistic about its chances of success.

Yet, with two other competitors also in the mix and Camelot’s long association with the lottery, nothing is set in stone until the UKGC announces its decision.

Whether or not Camelot has enough goodwill in the bank to shake off recent criticisms remains to be seen, but its position as the dominant figure in the UK lottery market ensures that it will be considered the frontrunner for a fourth consecutive term. •

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12-14 April 2022 ExCeL London, UK

Together never felt so good

Overcoming regulatory hurdles

LOTTERY

NIELS ONKENHOUT: TAKING A UNIFORM APPROACH TO PLAYER PROTECTION THE CEO OF NEDERLANDSE LOTERIJ discusses the

growing potential of the Dutch online gambling market and the questions the country faces when it comes to player protection and advertising

BY ERIN GALLAGHER

L

aunching an online gambling market comes with its own set of challenges as the Dutch found out in October 2021.

Almost six months later, questions are still looming over the regulator’s head.

Making an appearance in the SBC Leaders Podcast, Onkenhout shared

the view that safer gambling has been a key challenge which requires companies to first define what a ‘problem player’ is. But despite this, player protection has remained at the front and centre of everything Nederlandse Loterij does.

“There are a number of challenges, particularly in the online gaming market,” he said. “One of the things

which I found challenging is making that step from saying we are protecting consumers to actually making sure that is demonstrated in every action we take.

“There are some companies who believe that when you're in the online space, a problem player is somebody who calls to tell you that they have a problem. Then in their statement of purpose they make it known that they don’t want to make any money from problem gamblers.

“Of course, that is an easy way. But a lot of people understand that if you’re a problem gambler, the likelihood of you making that call is very slim. So

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Overcoming regulatory hurdles

THE NEDERLANDSE LOTERIJ HAS A STRONG HOME ADVANTAGE WITH 295 YEARS UNDER ITS BELT - MAKING THE COMPANY THE OLDEST STATE LOTTERY IN THE WORLD

66 SBC LEADERS • MARCH 2022

LOTTERY

we need to have a uniform definition of what constitutes a problem gambler so that we can really address those problems.”

There is also a need to address older players instead of just focusing primarily on protection of young gamblers, he told SBC Leaders, whilst he also acknowledged that some players have multiple accounts which makes deposit limits somewhat ineffective.

Onkenhout maintained, however, that the country still poses a lucrative opportunity for any interested companies. He drew particular attention to blockchain technology which he believes offers betting companies the opportunity to link data with regards to player protection.

“Every company has a deposit limit in place,” he continued. “But if somebody has six accounts, that's six times a day that a person can deposit funds into their account.

“Shouldn't we have some kind of blockchain technology where we link all that data? That could then mean that if someone has deposited a certain amount at Nederlandse Loterij that day, they cannot then make a deposit at another company because the technology will prohibit it.

“Those are things that I would really be proud of if I could have an impact, and I think that the industry itself should proactively make that happen as opposed to waiting until the regulator or politicians, usually not based on facts, make decisions that are adverse.”

The implementation of the KOA Act licensing regime on 1 October brought in a whole host of changes to the Dutch gambling space, affecting both licensing and advertising.

As a result, companies active in the Netherlands before the new regulatory regime was introduced were asked to reapply for their licence under the terms of the KOA Act. Onkenhout explained: “When these operators came back into the market, 5% of their customers went into even worse areas, into illegal areas.

The other 95% ended up with the 10 operators who got a licence, of which Nederlandse Loterij is one.”

Unlike the other licence holders, Nederlandse Loterij has a strong home

THERE IS A PANIC AMONGST POLITICIANS AND REGULATORS ON THE SHEER LEVEL OF ADVERTISING, AND WHETHER WE ARE LEADING YOUNG PEOPLE INTO THE ABYSS advantage with 295 years under its belt - making the company the oldest state lottery in the world. The state lottery also operates a sports betting division, TOTO, which offers pre-match and live wagering and casino games.

Onkenhout continued: “This means we are very well plugged into Dutch society. You can understand what emotions are and how different stakeholders act and what their beliefs are and how you can anticipate.

“At Nederlandse Loterij, we have

continues to divide MPs’ opinions.

Reflecting on the developments of a frantic five months since KOA’s formal launch, he remarked: “After five months, there is now a debate on an advertising ban, in which a new parliament has called ministers oneby-one to be questioned on how all this has come about.”

three shareholders: the Dutch state, the Dutch National Olympic Committee and a group of 18 good causes. But I think that the fact that we are a majority state-owned company helps us to gain a better understanding of what happens in the political arena.”

Onkenhout highlighted how the debate over further KOA reforms

the industry will become increasingly competitive as more operators enter the market.

“This means a country the size of New Jersey will have 20 licensed operators offering online gambling… that is an interesting proposition with a positive impact for all companies,” he remarked.

“It is incredibly well built from a regulatory point of view, but with an enormous amount of rules and regulations drawn from all the experience from other countries; whether it’s the UK or Scandinavia, which is often a role model for Holland.” •

THIS MEANS A COUNTRY THE SIZE OF NEW JERSEY WILL HAVE 20 LICENSED OPERATORS OFFERING ONLINE GAMBLING

Observing that the Netherlands is a similar size as the state of New Jersey, Onkenhout predicted that

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Bringing the industry together

SUN, SEA, SLOTS AND SUMMITS IN MALTA AHEAD OF MAY’S CASINOBEATS SUMMIT conference

and exhibition in St Julian’s, we spoke to Enrico Bradamante, Founder and Chairman of the iGEN trade association, about the health of the iGaming industry in Malta

BY MARTYN ELLIOTT

T

hat Malta is an obvious stop on the betting and gaming industry conference circuit is testament to the work of the Malta Gaming Authority (MGA) and the island’s government over the past 20 years. The early adoption of a licensing regime for online gambling,

68 SBC LEADERS • MARCH 2022

coupled with a favourable corporate tax rate, encouraged companies such as Betsson Group and NetEnt to set up operations in Malta and a high-value industry has since grown up around them.

Today, that industry employs around 8,000 of the island’s population of 515,000 and, depending on which statistical model is being used,

generates between 8.5% and 13.5% of the country’s GDP. iGaming is now firmly established as a key part of the nation’s economy, and the nation is equally well established as a crucial hub for the industry.

As Bradamante puts it: “Malta has certainly reached what we call a critical mass of competencies of skill sets and therefore, today, I would say is the home of iGaming excellence.

I don't think that there is another location that has as many companies and as many staff that are working in the online gambling industry.”

The membership list of iGEN certainly backs up that view. Major global operators such as Betsson,

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Betway, Entain, Kindred Group and LeoVegas sit alongside suppliers and affiliates with teams in Malta, including Aspire Global, Catena Media, GiG, Greentube and Raketech.

However, while Malta is the preeminent hub for the international iGaming industry today, there are

European territories as having changed the landscape and partially eroded the first mover advantage Malta once enjoyed. The availability of the B2B MGA licence remains a big draw though, as it provides a confirmation of quality that is recognised across multiple markets.

IGAMING IS NOW FIRMLY ESTABLISHED AS A KEY PART OF THE NATION’S ECONOMY

Another setback was the Financial Action Task Force’s decision to ‘grey list’ Malta in June 2021, in light of “strategic deficiencies” in its antimoney laundering regime. The Maltese government has since pledged to work with the Task Force to improve the situation, but Bradamante admitted the news had been damaging.

“The grey listing was an extremely disappointing event for the country, for the iGaming industry and for anyone involved in business here,” he said. “The banking environment has always been challenging, especially when it came to working in iGaming, but now it has become even more challenging. This is, of course,

a number of locations that are working towards becoming rivals for that crown. Ceuta, Gibraltar, Kyiv, Manila, Sofia and Yerevan all have different benefits for companies, and Bradamante concedes that Malta no longer holds all the trump cards when it comes to attracting investment from foreign businesses.

He pointed to the availability of B2C licensing regimes across numerous

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Bringing the industry together

not good news, and it has had an operational impact on companies here.”

Despite these developments, Bradamante does not foresee Malta losing its status as a world-leading centre for iGaming operators, technology suppliers and games studios in the near future. Instead, the experienced industry executive, who is also Chief Commercial Officer for Aspire Global’s content aggregator Pariplay, expects to see companies increasingly investigating the benefits of multi-office set ups.

“What we're seeing is companies having offices in different locations, in order to take advantage of the local talent pool,” he explained. “In Malta, the reality is that of the thousands of people that work in the iGaming industry, at least two thirds are foreigners. So the talent pool of local Maltese that are capable and willing and interested in working in iGaming is limited.

“The fact that one can set up an office in Gibraltar and get licences there and in Spain, shows there

70 SBC LEADERS • MARCH 2022

are good alternatives to Malta as a location, but I don't see those as replacing Malta completely. Malta still has this critical mass [of skills] and the tax. These are strong advantages when it comes to the financial operations of companies and creating shareholder value. So I think that is going to remain.”

MALTA HAS CERTAINLY REACHED WHAT WE CALL A CRITICAL MASS OF COMPETENCIES OF SKILL SETS The issue of seeking out new talent for the industry is one of iGEN’s primary focuses. Demand for high tech skills from a wide range of industries means that there is fierce competition for experienced technical staff and the best graduates almost everywhere in the world. Despite its concentration of iGaming professionals, Malta has not been able to sidestep this skills shortage.

While part of dealing with that will

inevitably involve tempting workers from overseas to relocate, persuading local people that the industry offers a great career path is crucial to its future. iGen is working closely with the Maltese government to do exactly that.

“Through iGEN’s interaction with the government, I can say that the government is very keen on developing a workforce that will be matched with the skill sets that are required by the various industries,” Bradamante said.

“Whether it's through MCAST, which is a College of Arts, Science and Technology up to 18 years old, or at university, there are some specific courses and professional courses that are done as part of public education and private education. GamingMalta is also very involved in this through its COO, Ivan Filletti. So I would say the government is doing its utmost to promote and support us, but ultimately, the students need to choose those curricula and want to work in the online gambling industry.

All these are things that will take time.”

Anyone from overseas currently

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looking for a new job in the online casino or sports betting industry may find Malta is very welcoming.

He added: “Right now, through the iGEN members, there are over 700 open vacancies primarily based in Malta for staff of various skills, from customer support to affiliate marketing to account management and finance roles. We have developed a very useful portal, whyiGaming.eu, that assembles all these vacancies and then a candidate can just search them very easily and apply for the job directly to the hiring company.”

One other thing the Maltese government and the island’s iGaming community is keen to support is the continuation of the start-up culture.

Success stories such as LeoVegas and Casumo have earned Malta a reputation as the place to build a gaming business from scratch.

Bradamante, who has established a number of companies in recent years, believes conditions today are difficult for start-ups, largely because the task of finding a local bank prepared to work with iGaming businesses is close to impossible. However, those able to arrange banking services - perhaps via a fintech bank like Finductive in Malta, or based elsewhere in the EU will discover there is plenty of support available in Malta.

“The government, in particular through GamingMalta, has now established an incubator programme, with premises in a new office in Zejtun in the south of the island. The very smart facilities are attracting gaming and they're attracting video gaming.

This is something that of course helps,” he explained.

“In general, I would say that the entrepreneurial spirit is very much here. There are a lot of skilled staff, skilled professionals that are willing to take the jump into a new studio start-up, a new casino start-up, a new affiliate business. But it is difficult and it's being made more and more difficult, I would say.”

While there may be a number of challenges to be addressed, there is still plenty to recommend Malta to the industry at the moment. However, in a high-tech sector such as online casino, standing still is simply a precursor to going backwards. So Bradamante expects to see some developments

SUCCESS STORIES SUCH AS LEOVEGAS AND CASUMO HAVE EARNED MALTA A REPUTATION AS THE PLACE TO BUILD A GAMING BUSINESS FROM SCRATCH in the coming years to keep Maltabased companies at the forefront of the industry as gambling is legalised in more markets in the US, Latin America and Africa.

“Looking at what the MGA could do with its licence, they could approach some of these developing countries such as Brazil or African nations and propose to them that they adopt the MGA licensing regime, in exchange for, of course, some tax monies that will go in their direction,” he suggested.

“Getting the Maltese licence approved in an African country like Nigeria, for example, or ideally, Brazil, and somehow leveragings the experience and the infrastructure that already exists within the MGA for some of these new markets. This is something that MGA CEO Carl Brincat is looking into doing.”

The iGEN Chairman also expects the innovation that the Maltese industry is famed for to continue to produce exciting new products and big improvements to existing games.

“The live element and the social element are things that are still on the horizon when it comes to research and development. I think there's still a lot more that can be done when

it comes to live games,” he said.

“Evolution Gaming has done a fantastic job in bringing new products, new concepts into the industry, but I think there's a lot more innovation coming in that area. There's some interesting concepts like live spins that are being explored.”

The next big industry innovations, how to tackle the skills shortage, the prospects for emerging markets and the future of live casino are among the topics on the comprehensive conference agenda for CasinoBeats Summit 2022. For Bradamante, these types of conference discussions are key to enabling collaboration across the industry.

He explained: “Conferences have played and will continue to play a very important role in the dissemination of new ideas. They allow these conversations, whether it's in the form of sessions where there is a lot of education taking place and ideas that are being shared. Or it's in the networking events, it's in the dinners, in the social part, where the creative juices start flowing and new ideas get created from the discussion.

“Certainly now in a post-COVID situation, everybody is really eager to get together and to meet other human beings in person and to, ideally, hug and high five. People are tired of being at home, so want to be able to meet friends, colleagues and competitors.

“A big part of the success of Malta has been the events, like the conferences. The fact that people are able to meet, socialise, get to know each other and get to trust each other, whether they are doing business today or they are competitors. I think it's a very important component of the chemistry of what makes Malta unique and successful.” • The CasinoBeats Summit 2022 conference and exhibition will take place at the InterContinental in St Julian’s, Malta on 24-26 May. It is part of Spring iGaming Week, which also includes the KPMG Malta Gaming eSummit and the CasinoBeats Game Developer Awards

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