18 minute read
Gaming
‘INCREASINGLY COMFORTABLE’ GROUP AIMING TO BUILD ON COLOMBIAN AND MEXICAN MOVES
THE EMERGING MARKET nature of many jurisdictions across Latin America has been discussed, and discussed and discussed, the world over for many a year as countless predictions and suggestions have been evidenced on a global scale
BY CRAIG DAVIES
However, key developments have cemented LatAm’s position of being at the forefront of the industry agenda, with Brazil, Argentina and Peru among those causing fresh optimism at the recent SBC Summit Barcelona.
Ahead of SBC Summit Latinoamérica, which will be held at the Hard Rock Hotel and Casino in Hollywood, Florida, between November 1-3, SBC Leaders has been reflecting on moves made thus far, how crucial recent developments have been and plans moving forward alongside Rush Street Interactive.
The Chicago-based group, which also has offices in New Jersey and Bogotá, as well as Tartu, Estonia, was the first US gaming company to launch a regulated online sportsbook in Latin America when it debuted the RushBet brand in Colombia back in June 2018.
To begin the conversation, Mattias Stetz, RSI’s Chief Operating Officer,
spoke proudly of the moves made thus far in the region; touching upon group strategy regarding a pair of market entries.
“RushBet entered Colombia in June 2018, just before the 2018 FIFA World Cup, and from nothing quickly grew into a clear top three player in the market today,” he said.
“We entered Mexico on June 30 and, much like in our entry in Colombia, we have used the first couple of months to test the user flows.
“We are at a stage where we are increasingly comfortable to increase our marketing investment heading into the peak sports season.”
Whether this aforementioned
marketing expenditure is reflective of the race to capture share further north remains to be seen, but with a World Cup firmly on the horizon, capitalising on the region’s firm interest in the beautiful game is a necessary short and long-term strategy.
Regional interest from those across the Americas comes the way of Mexico, where RSI will look to capitalise on its aforementioned recent entry, in addition to Brazil, Argentina, Ecuador, Uruguay, Canada, Mexico, the United States and Costa Rica.
However, utilising the popularity of football has firmly been a part of the company’s game plan, with RSI recently extending a Colombia-focused
exclusive La Liga partnership across the wider South America space.
This sees RushBet, in a threeseason deal, gain intellectual property rights for the league's top two divisions, LaLiga Santander and LaLiga SmartBank, which includes the usage of team names, shields, players' pictures and competition logos.
In addition, an array of experiences via ‘money can’t buy’ encounters, giveaways and access to brand ambassadors all form key components of the enhanced deal.
“The exclusive partnership with La Liga gives us a unique tool in our marketing portfolio,” continued Stetz when assessing the importance of the agreement in gaining an additional foothold in the area as well as how this will be utilised to drive the RushBet brand further still.
“For example, on a weekly basis we are having pick ‘em style contests for La Liga which - by the way - is the most popular foreign soccer league in Colombia.
“We also have local events in Colombia with former players of La Liga, and numerous assets including tickets to games in Spain. La Liga is one of the most renowned soccer leagues in all of South America, and gives us a great platform for further expansion in the region.”
In July of this year the operator built upon a partnership that was inked alongside Grupo Multimedios earlier in the year by enhancing its LatAm
footprint via the launch of igaming and online sports betting through the RushBet brand in Mexico.
Under a 25-year alliance, RSI will operate an online casino, including more than 350 slots and table games, and sports betting countrywide in close partnership with the company, a subsidiary of which holds a licence to operate online gaming in Mexico.
The company’s wider interests span multiple industries such as media, sports, entertainment, wines, food, retail and real estate, and dates back almost 90 years.
When examining why the Mexican and Colombian markets were specifically identified as prime candidates to begin a wider charge across LatAm, Stetz cited population and long-term land-based gaming interests as key components.
“With 50 million people in Colombia and another 130 million in Mexico, they are two of the largest population markets in Latin America,” he continued.
“Additionally, we feel comfortable with the regulations in both jurisdictions from a product (both allowing casino and sports betting) and tax perspective. That gives us a stable foundation for our business in each respective country.
“In Mexico we also have a partnership with Grupo Multimedios, a media group based in Monterrey. Both markets also have a strong interest in sports and sports betting along with a well established land-based casino market.”
Richard Schwartz, RSI’s Chief Executive Officer, recently spoke of the exciting opportunities presented across the Americas when disclosing the group’s second quarter performance, with current moves in Mexico highlighted as a particular cause for optimism.
In addition to declaring a year-overyear improvement in revenue alongside increases in net loss and adjusted advertising and promotions expenses, Schwartz also gave an update on the operator’s progress in Ontario, Canada and Mexico.
It was noted that since their respective launches, Ontario’s handle and revenue have “steadily” grown, while the group remains optimistic and “excited” about upcoming marketing campaigns in Mexico.
The company also stressed that its total addressable market is $72bn across the US ($62bn), Latin America ($3.5bn) and Canada ($6bn), with fresh expansion certainly being sought as opportunities present themselves.
Regarding the moves being taken at a legislative level across the continent, Stetz addressed those market conditions that would hold a particular appeal to RSI while remaining coy on where the company’s path will take it next in its LatAm journey.
“While we can’t speak about specific markets, we are constantly evaluating new market opportunities in Latin America,” he ended.
“We are most excited by markets with large populations that display favourable characteristics, such as support for both the online sportsbook and casino verticals.” •
’LA CELESTE’ AS URUGUAY SET TO EMBRACE ONLINE GAMBLING
AS URUGUAY MULLS OVER NEW REGULATIONS
which would legalise online gambling, Juan Ignacio Juanena discusses why online betting adds a new dimension to entertainment
BY JAMES ROSS
August witnessed Uruguay’s online gambling bill take a leap towards becoming law after it was approved by the country’s senate. The bill will now be sent to the region’s House of Representatives for further consideration.
If the bill is passed, it would allow the General Directorate of Casinos of the Ministry of Economy and Finance to regulate online gambling in Uruguay. In order to monitor all online gambling providers in the country, a region-wide register would be utilised.
Delving into Uruguay’s potential new regulations, Juan Ignacio Juanena, Interactive Business Manager at Enjoy Uruguay, revealed that the potential of the Uruguayan market, at its highest level, is estimated at around $52m in gross gaming revenue.
Moreover, he highlighted that casinos that currently hold land-based licences will be able to obtain an online permit
He noted: “The law establishes that the executive branch, through the General Directorate of Casinos, can launch online casino operations (poker, roulette, slots and more), either directly through the traditional system or through current operations that work through the so-called mixed-system.
“Thus, the General Directorate of Casinos can authorise land-based casino games licensees (or even the ones who have a permit to operate in the future) to operate online.
“The project that is still pending the approval of the Chamber of Deputies is a new commercial way for land-based operators that already have physical operations in Uruguay and doesn’t allow other companies to obtain a licence to only operate online.
“The land-based operation is an essential requirement to obtain an online gaming licence and is even conditional to its existence.”
Since the last quarter of 2021, Uruguay has moved forward with the regulation of the market due to a project drafted by the Ministry of Economy.
If approved by the Senate, the National Directorate of Casinos would be in charge of redirecting 5% of its gross profits to financing problem gambling programmes.
Looking at what the Uruguayan casino operator expects to witness in the country’s online vertical, Juanena stressed that online gambling is “almost a crucial commercial need” for physical operators in the country to modernise the entertainment offering and to be able to adapt it to new technologies and new generations.
“Online gambling has existed for over a decade in countries in Europe and the United States,” Juanena added.
“Even in Latin America, some countries have regulated the activity many years ago.
“Online gambling is one more marketing tool that complements the entertainment offering of land-based operators. There are international studies that have analysed the impact of the online gambling regulation in physical casinos and the results have been very positive for all parties involved.
“In Atlantic City, in New Jersey, the activity was regulated in 2013, and land-based casinos received an online licence to either operate independently or with a partner. The results of these operations reflected the importance that online gambling would have in other countries.
“Around 80% of the casino online players were new, not land-based players or customers that no longer attended casinos physically. The other 20% were players that were active customers of land-based casinos.
“The percentage of customers who are going to share the online and land-based spaces is relatively low, but even within this segment, the statistics show that the value of the omnichannel customer, the one who likes both verticals, ends up increasing.”
Predicting when the regulation itself would be implemented, Juanena believes that it may take “a few months” but hoped the bill would be in place during the first quarter of 2023.
Tackling the question of if there should be a greater focus on responsible gambling, both within Uruguay and the Latin American market as a whole, Enjoy's Interactive Business Manager expressed his opinion that the country has treated the regulation project “responsibly” via the participation of all political and private sectors, as well as the different organisations involved in the industry.
He commented: “This project takes into account many things included in other countries’ regulations, their experiences and it also adapts to the local reality in Uruguay, which is a smaller, reduced market, where the jobs and the investment of current operators must be protected.
“Limiting online gambling licences to local operators is a good way to protect Uruguayans, both employees and customers, who will be able to access local support, physical offices, and will have the support of the different operators, which always guarantee greater transparency for the client.”
Furthermore, Juanena emphasised that regulation will be a “key point” in the project, stressing that “many issues” in the market depend on it. However, he did state that the models being taken as a reference to online gambling in Uruguay to produce a competitive framework with a “guarantee for all” in taking care of both employees and players.
“Free competition between landbased operators, the use of certified independent platforms, the selection of providers that have local permission, the payment methods and responsible gambling policies are key aspects of the regulation and it’s been clear in the discussion of the project,” Juanena added.
“It would be really important for the country to set in the regulation that everyone in the country is allowed to play, regardless of their nationality, considering that today we have a strong tendency of welcoming foreigners in our country, who add to the millions of tourists who enter Uruguay every year.
“This audience can generate significant revenue for both operators and the government through taxes. Currently, there are tools that easily verify the location of a person in order to enable access to the game only within the country.”
As part of the proposed regulations, casino games will remain under the orbit of the General Directorate of Casino, while other verticals would be under the control of the National Directorate of Lotteries and Quinielas.
Looking into the benefits of such a structure, Juanena explained that the proposed framework respects the current operation and distribution of games of chance in Uruguay.
He commented: “Without a doubt, we would have liked this project to allow operators authorised by the General Directorate of Casinos to also operate sports betting, as is the case in the rest of the Latin American countries where the operation of this vertical is open to operators, favouring free competition between the operators and forcing each operator to have a better product, on par with the main sports betting operators at a global level and with competitive odds, but unfortunately this project doesn’t consider that possibility.
“It is now important to move forward with this project, and making progress on this is already a big step for the land-based operators. Without a doubt, in the future, Uruguay will have to analyse whether or not to have a single sports betting operator.”
Revealing what enticed the government to regulate the Uruguay online gambling space, Juanena stated that in countries that have been developing online gambling, revenue from the aforementioned sector - including sports betting - can, in some cases, reach 50% of the volume of games of chance.
Enjoy’s Interactive Business Manager concluded: “In Latin America, Colombia, Argentina and Peru have approved online gambling, and in the rest of the countries it is under discussion. I believe that it is an obligation as a country to regulate an activity that is a reality in the world and that allows physical operators to modernise and offer their clients and non-clients a new entertainment proposal according to the new reality.
“Sustained growth above 12% per year for more than 10 years reflects the potential of the industry and the interest of customers around the world in this activity.” •
HIGH 5 GAMES: DIAMONDS, GREEN MACHINES AND RAPID REWARDS ON THE PATH TO GROWTH
IF YOU ARE A REGULAR VISITOR to America’s real-money online casinos, there is one slots brand that you will have noticed more and more often over recent months - High 5 Games
BY MARTYN ELLIOTT
With hundreds of games released every month, it is difficult for developers to stand out from the crowd and impress both the operators populating their slots rooms and the players logged in to them. Yet High 5 has managed to do it, establishing a status in the top six of the Eilers-Fantini Online Game Performance Report, without having to invest in the type of expensive promotional hullabaloo employed by many rival studios.
SBC Leaders has taken a closer look at how High 5 has managed to take the low-profile route into the top tier of games developers and become what one of its operator partners described as “one of the suppliers to look out for”.
The story so far
High 5’s status among the leading developers in the North American igaming market will come as no surprise to anyone who has paid attention to the company’s progress in 2022. Its list of launches includes FanDuel, BetMGM, DraftKings, Rush Street and Loto-Québec across jurisdictions such as New Jersey, Pennsylvania, Michigan, Connecticut, Ontario, and Quebec.
From the outside, it could appear as though the company has managed to race into a position as one of the market leaders over the course of just 18 months. However, the key to understanding the success is to realise that it has not actually raced to its current status. In fact, its rise to the top is based on a longevity that has enabled it to develop a deep understanding of what players want, which it has used to produce games that really perform for operators.
Founded by Anthony Singer in 1995, High 5 built its reputation for innovation by developing video slots for IGT’s cabinets and producing such smash hit titles as Da Vinci Diamonds and Golden Goddess. A subsequent move into the online social casino space saw its games reach huge new audiences - more than 28 million players at the last
count - and provided the High 5 team with a treasure chest of information about features that work and how to earn customer loyalty.
The accrued player insights and game design experience left the company ideally placed to move into real-money gaming when New Jersey’s igaming market went live and then to expand into international territories. High 5’s games are now enjoyed by players in every regulated online casino market around the world, thanks to its partnerships with some of the global industry’s biggest brands.
In 2020, with real-money igaming looking set to take off in the US, the High 5 team focused on the engaging products, unique features and promotions, and service levels that would be required to succeed in their home nation. By 2022, those efforts saw the company able to announce new market entries and new partnerships every month.
It’s about more than just games
Obviously, any games developer with ambition needs engaging titles that keep players entertained - and High 5 has hundreds of them. They range from long-running franchises, such as the hugely-popular Green Machine games, to imaginative one-offs including Retro Riches and Cannon Cove.
The feature-rich titles were developed using the studio’s philosophy of ‘listen, learn and improve’, which sees the team utilise operator feedback and player data to inform the next generation of games. However, it is not only individual titles that benefit from this approach, it is also the imaginative Rapid Rewards promotional programme that has proved such a hit with operators.
Rapid Rewards features a networkwide monthly prize pool that is delivered in-game in the form of random cash prize drops of up to $1,000, feature boosts that create additional chances to win, and super boosts that multiply prizes. Together they work to change the format of a game as it is being played and create an added level of anticipation, surprise, action, and excitement for the player.
Unusually, the programme also allows players to defer their promos and use them at a later date, allowing them to begin tomorrow’s play in the knowledge that they have, for example, 20 boosted spins. It’s easy to understand why the combination of added in-game excitement and delayed gratification keeps players coming back to High 5’s titles.
For operators, Rapid Rewards is proving to be one of the top-performing player retention tools in their armoury. It is also one of the most cost effective, as the model means it is a way for their registered players to enjoy a more entertaining experience without it costing the operators anything.
One operator told us: “It's amazing
how High 5 was able to push Rapid Rewards out so quickly and continue to modify and perfect it as they go. It's easy to launch, minimal effort from our side and automatically increases exposure on the High 5 brand.”
Such is the effectiveness of the programme that when you log in to any FanDuel, BetMGM, Caesars or WynnBET real money online casino, you are likely to find High 5’s latest games and Rapid Rewards front and centre in the slots lobby. Not that the High 5 team is resting on its laurels, as a host of new engagement features are in development for 2023, including progressive jackpots and gamification elements.
The games and rewards programme
are backed by something else that operators really value - a commitment to great levels of service. From established relationships with regulators and making integration as painless as possible to a willingness to develop individual plans for each operator partner dependent on the demographics of their player base, the focus is on service rather than gimmicks.
As one satisfied operator puts it: “This partnership doesn't feel like work, it's fun and rewarding to work together.” •
