33 minute read
US & Canada
by SBC Global
the experience of watching a game by adding the element of personal chance and gain.
By making sports betting a part of watching the game by seamlessly integrating it with the game environment, the conversion of sports fans to bettors is likely much higher, much less expensive and will generate recurring revenue as people will come back.
Overall revenues will be higher with increased food and beverage spend and longer duration of stay means larger bills and larger tips for staff. We aim to create that experience with our terminals to help ensure that watching sports at a bar remains social by blending the process in with the environment.
SBC: As well as sports betting, SUZOHAPP also has a strong presence in the gaming sector. What is it that makes SUZOHAPP the leading provider for hardware needs for casinos, operators and OEMs? Why should companies partner with you?
TK: We have years of experience in the industry and a global network of partners including industry leaders such as Elo, Custom and many more. We can provide expertise and sourcing for gaming needs from top to bottom as a trusted hardware partner.
SBC: Speaking of partnerships, you have signed a number of strategic deals - Elo, Custom, Newland, CountR and Microhard to name a few. What do these agreements bring to the SUZOHAPP brand? And how do you plan to showcase these partnerships at ICE?
TK: We are honoured to have such great partnerships with the likes of Elo, Custom, Newland, Microhard and CountR. We have strategically selected partners across all peripheral product categories that we believe are the leaders in the market and by working through us, we provide them access
to top tier customers and provide the convenience and expertise to provide the right solutions for their designs.
SBC: Now that 2022 has come to a close, what have been the biggest learnings for you so far over the year? And how will these shape your strategy through 2023?
TK: Looking back at the end of 2021 and into 2022, there were so many questions about how or if the industry would bounce back from the restrictions and closures of the pandemic. The biggest learning we’ve had is that the demand is there. And it only continues to grow. We just need to be prepared to supply it and we are working tirelessly to ensure that we meet those needs.
SBC: And finally, what can we expect from SUZOHAPP in 2023?
TK: We have many exciting announcements and new launches on the horizon for this year. If you want to find out what they are, stop by our booth at ICE! •
BY JESSICA WELMAN
Yet, these major operators speak about the loss as a tiny bump in the road. A bump that cost several hundred million dollars, but a bump nonetheless. At the Global Gaming Expo, which took place in the final weeks before election day, DraftKings CEO Jason Robins and FanDuel CEO Amy Howe appeared on stage together and acknowledged that Proposition 27 would likely fail, but still felt confident that California was on the road map for the future.
At the FanDuel Capital Markets Day
presentation a couple of weeks after Election Day, FanDuel Group President Christian Genetski went so far as to say this: “There's one thing on which all
IS CALIFORNIA SPORTS BETTING REALLY “INEVITABLE”? the relevant stakeholders agree – the national online operators, the large tribal gaming casinos in California, the THE FAILURE OF THE ONLINE BETTING ballot measure in small non-gaming tribes, policymakers in California – and that is that as California wasn’t just a loss, it was a beatdown. The sports betting continues to spread Sacramento Bee described it as “one of the biggest California election flops in decades”. Just 16.7% of across the country in the majority of the United States population has access to mobile sports betting, voters casted a ballot in favour of Proposition 27, California is not going to be an outlier.” a measure that would have brought major online operators into the state. Except, here is the thing – that is actually not what all those stakeholders listed think about the situation. “When people say [California sports betting] is inevitable, they typically point back to the fact that there's 30plus states that have legalised, but the vast majority of those states didn't go through the voters,” said San Manuel Vice President and Chief of Staff, Frank Sizemore. “This whole ‘inevitability’ is something that’s a PR effort,” added San Manuel Chief of Intergovernmental Affairs, Dan Little. The San Manuel Band of Mission
Indians was a major part of the No on 27 campaign in California. In a state where tribes often have differences of opinion, 27 was a measure that united a large number of its members through a common cause.
“I don't think there was any division. Like I said, there were a few tribes that decided to exercise their own sovereignty, and we respect that. But for the most part, the majority of tribes were opposed to Prop 27,” Little recalled.
Where there was more division was Proposition 26, a measure to allow retail sports betting at tribal casinos that qualified for the ballot before Proposition 27 did. San Manuel had no official stance on 26, though many tribes were pushing for the measure.
“We felt like 27 was such a threat to San Manuel operations and tribal sovereignty that we wanted to focus all of our resources and our energies just on making sure that we kept the commercial operators out of the state,” Sizemore explained.
The California tribal gaming economy is massive. But for tribes and for the state, according to Little, the industry produces 180,000 jobs as well as billions in economic impact.
Looking at who joined the campaign, this impact on Caifornia does not go unnoticed by state officials. Gov. Gavin Newsom officially opposed Proposition 27, albeit his endorsement came long after it was clear the measure would fail.
The campaign also had support from all four major leaders of the state legislature. Bipartisan agreement at that level is unusual, particularly in this politically contentious time.
“Gov. Newsom has worked really well with the tribes over the years,” Little said. “And he understands the value that the tribes bring to the state, but he also understands the partnership that we have.”
Another group that overwhelmingly
spoke out against Proposition 27 was the editorial boards of state newspapers. After speaking with key stakeholders both for and against the measure, major papers like the Los Angeles Times came down against it.
In op-eds explaining the stance,
many of these publications expressed hesitance about any kind of gambling expansion, not just sports betting.
“The rationale was that California doesn't need any more gaming, we have plenty,” Sizemore said. “We have card rooms, we have horse tracks, we've got the lottery, we've got tribal casinos. So I think the general consensus was that there's enough gambling here already, we don't need more gambling to occur.”
The LA Times minced no words in its stance, stating: “In just one month last year, sports gamblers wagered $7bn - a 20-fold increase from three years earlier. That’s money they’re not spending in other parts of the economy, or worse, money they borrowed that they may not be able to pay back.”
That is a big statement and a good example of the increasing number of mainstream media outlets focusing on the negatives of the gambling industry. Sizemore and Little also pointed out the recent slate of New York Times stories as another reason why Californians might be sceptical about gambling expansion.
They expressed the sentiments of many people who are concerned about the speed at which the new industry of online gambling is launching.
After getting crushed at the polls,
major operators nonetheless seem content to pull themselves up by their bootstraps and try again in two years. But, even if there is not a competing measure the next time around, how can another campaign win over Californians to the idea of online betting?
In his talk, Genetski acknowledged that 2022 would have been “audaciously ahead of schedule”. In fact, he said even getting on the ballot exceeded the company’s expectations. Company leaders at the major operators have said they are ready to try again in 2024 and apply lessons learned in this first campaign, but even if the operators are ready, Californians may not be.
The campaigns for and against Proposition 27 wore voters out. Brandt Iden, who now serves as VP of Government Affairs for Fanatics, but previously served in the Michigan legislature noted that when it is a voter referendum, these campaigns are designed to intentionally create confusion around the issue.
“Even if voters did support it, they really don’t know what the issue is that they’re voting for anymore,” he said.
If there is one takeaway for all parties involved, it seems to be that competing initiatives will always result in defeat. Getting consensus in California, where there are so many gambling stakeholders, has always been difficult. Coming in as outsiders with a ballot measure failed.
For once, these competing interests in the state united to strike it down. Will the lesson for major online operators in 2024 be to reach a compromise that includes key state players like tribal nations? Some might say it is inevitable. •
Dan Little, San Manuel Chief of Intergovernmental Affairs
ARIZONA SUPER BOWL: THE BIG GAME IN A REGULATED STATE FOR THE FIRST TIME
AS PREPARATIONS RAMP UP
for this year’s Super Bowl, we ask whether hosting the game in a state that has regulated sports betting could present new opportunities for sportsbooks across the Grand Canyon State
BY CONOR PORTER
The NFL’s final game of the 2022 season, Super Bowl LVII, will be hosted in Glendale, Arizona at State Farm Stadium, home of the Arizona Cardinals, in February 2023.
When the game takes place, history will not only be made on the field but off it as well, since the Grand Canyon State will become the first regulated sports betting state to host the Big Game since the repeal of PASPA in 2018.
The game has generated huge excitement, even though the two teams who will be competing for American sport's biggest prize have not yet been decided.
GeoComply has predicted it will be a "betting bonanza", as data from the Arizona Cardinals’ opening home game of the 2022 NFL season against
the Kansas City Chiefs revealed over 66,000 geolocation checks from more than 7,300 accounts at State Farm Stadium.
David Highhill, the NFL’s Vice President and General Manager of Sports Betting, also anticipates big things.
Highhill commented: “We are incredibly excited to welcome our fans to Super Bowl LVII in Arizona this February. Arizona will be the first state we have played a Super Bowl with legal sports betting (though we have played many games in states with legal sports betting since 2018).
“Arizona’s sports betting laws will allow fans all over the state to engage online and at retail locations. Arizona’s broad consumer access, coupled with their robust integrity and consumer protections, are examples of a model state betting framework.
“We know that the Super Bowl is peak excitement for sports betting in the US, and would expect February 12th in Arizona to be no different! We will look to see how our fans engage with our betting partners Caesars, DraftKings and FanDuel on-site and online to continue to enhance the gameday experience throughout the season for our fans.”
With the Grand Canyon State
already one of the top 10 sports betting markets in the US in its first year of operation, with 18 mobile operators and 25 different retail venues, what heights could sports betting achieve during the week of the country’s biggest sporting event?
The Arizona Department of Gaming (ADG), the state’s regulatory authority, is excited about the potential the Super Bowl could bring.
Max Hartgraves, Public Information Officer for ADG, said: “The Super Bowl has already had a lasting impact on Arizona. Arizona has hosted four Super Bowls, the latest being Super Bowl XLIX in 2015. It is estimated that Super Bowl XLIX produced a gross
IT IS ESTIMATED THAT SUPER BOWL XLIX PRODUCED A GROSS ECONOMIC IMPACT OVER $719M FOR THE REGION
economic impact over $719m for the region.
“Sports betting and the other new casino games such as craps, roulette and baccarat, are now legal in the state due to Arizona’s modernisation of gaming in 2021. These new games provide another reason for tourists to visit, particularly for major events such as the Super Bowl and the Phoenix Open (which are held on the same weekend in the Phoenix Metro area), which sees thousands of out-ofstate visitors come to Arizona.”
Despite this, the ADG has stated it's difficult to pinpoint exactly what to expect and they haven’t forecasted any specific handle amount.
BetMGM, which partnered with State Farm Stadium and the Arizona Cardinals to launch a sportsbook on the Great Lawn tailgating spot within walking distance of the Super Bowl venue. It is preparing for the Big Game the same way it has in previous years, but it is still expecting the event to provide new highs.
The sportsbook operator noted that in-game betting will be available to those that wish to wager on their mobile inside the stadium.
“We’re expecting record handle and bet amounts, this is likely to be the most bet on the Super Bowl to date,” commented Jason Scott, VP of Trading at BetMGM.
“We’re excited to get more fans into the BetMGM Sportsbook at State Farm Stadium. I think that will be a great experience that will bring more exposure to the fun of being in a retail book environment.”
When asked if the Super Bowl could result in the Grand Canyon State breaking its sports betting records, Scott said: “Yes, definitely, between betting now being legal and Arizona hosting the Super Bowl I think we’ll see big numbers coming out of Arizona.”
However, Hartgraves is unsure. “It is hard to tell. In 2022, Arizona saw just under $500m wagered in the state during the month of February, which includes the period of the 2022 Super Bowl. We look forward to seeing how it compares to 2023,” he said.
For the Super Bowl LVI in 2022, the American Gaming Association forecasted 31.4 million Americans would wager $7.61bn. Following the Big Game, New Jersey and Nevada both declared new Super Bowl sportsbook handle records of $143.7m and $179.8m respectively.
At the time of writing, sports betting is live in 32 US states plus the District of Columbia, with Kansas and Maryland both launching since the last Super Bowl. Massachusetts is also scheduled to go live ahead of the Big Game in February 2023 as well.
In 2024, the Super Bowl will be
hosted in Las Vegas, Nevada, and will be played in Allegiant Stadium, home of the Las Vegas Raiders.
It will be interesting to see if the Silver State learns, or takes anything away, from the Grand Canyon State’s hosting of the Big Game in a regulated sports betting state for the first time in preparation for when the Super Bowl visits the gambling capital of the world next year. •
RESPONSIBLE GAMBLING COUNCIL: EDUCATING YOUNGSTERS ON GAMBLING RISKS
SHELLEY WHITE, CEO OF THE RESPONSIBLE GAMBLING
COUNCIL IN CANADA, explains how the organisation uses player education campaigns to reduce the risks of gambling harm amongst those aged 18-24
BY CHARLIE HORNER
Responsible gambling is an increasingly crucial part of the industry’s inner workings. Both internal and external pressures have made operators, suppliers and other stakeholders take notice of the work they do to protect players from gambling harms.
Whilst attention has traditionally
gone towards making existing gamblers aware of the risks associated with wagering, often those gamblers are of older demographics. A survey conducted by Statista in December 2021 found that the age group that had the most weekly sports betting participants was those aged 35-44.
Yet, as the rise of online and mobile gambling has increased the accessibility and usability of gambling to those of much younger age groups, the focus has shifted to ensuring that young people growing up around gambling do not get sucked in by the risks of online gambling.
At the forefront of this in Canada is the Responsible Gambling Council, which has conducted research into gambling harms for decades and has taken up a role as an educator. The RGC has ramped up its efforts in recent times to educate young people aged 18-25 to reduce the impact of online gambling.
There are a myriad reasons why young people may get involved in gambling, especially online. Peer pressure through social groups, access to drugs and increased accessibility certainly all play a role, but a far more intrinsic and internal reason plays a part.
Shelley White, CEO of the RGC, told SBC Leaders that neurology is a key influence on young people’s susceptibility: “There's a neuroscience element to this, and that the prefrontal cortex, which manages judgement, really doesn't develop fully until
the age of 25. So actually, prior to that age, young people are making decisions with more of the emotional side of their brain.”
A popular way of educating players
is to encourage players to not drink and gamble. But in Canada, specifically, there is an issue too with the use of cannabis and gambling, which White noted plays a big role in young people’s risk.
“In several jurisdictions, it's in that age range that they have legal access to alcohol and to substances such as cannabis,” she added. “And, in a few jurisdictions globally, we know that based on research there is a correlation between higher gambling risk, and simultaneously using alcohol or cannabis.”
An evidence-based organisation, the RGC always conducts thorough research before undertaking any line of strategy. During the COVID-19 pandemic in 2020, the organisation conducted a study into the effects of lockdowns on the gambling behaviours of those aged 18-24.
Owing to financial issues, mental health deterioration and loneliness, young people were found to be at increased risk of gambling harm during this period.
As the RGC’s lead outlined: “Young adults aged 18 to 24 years were consistently found to be at an increased risk of gamblingrelated harms during COVID. More specifically, young adults are more likely to have suffered negative financial impacts due to losing their job or reduced work hours.
“Over 50% experienced a reduction in their household income. And in line with the financial harm, young people were also significantly more prone to mental health concerns, reporting greater levels of severe anxiety and depression, as well as lower life satisfaction compared to older adults. And social isolation contributed to that immensely.”
But having well thoughtout and reasoned research over the years, that it's so important to tailor the message to the audience. So because we understand that youth and young adults are at an increased risk, we've really created a dedicated youth and young adult portion to our website that provides information to these groups about what is gambling because we know that they're online, they'll go to websites to seek information.”
As well as carving out a specific youth page on its website, RGC has developed several other ways to reach younger gamblers while using the correct language to create an effective piece of education.
White addressed the need to use appropriate language within the messaging: “Public service announcements (used to be) more directive, like don't drink and drive, to a culture that is more about engagement and giving people the information so they can make choices.
“So if we look at the alcohol industry, it's gone from ‘don't drink and drive’, to 'plan your ride home’ and giving people options, which we know is extremely important. Providing individuals with messaging that lets them know what the risks are, lets them know what the options are, but gives people choices.
“We also know how to communicate with language that isn't patronising, so the inclusion of humour is really helpful too. We did research and created an ad campaign for young people about the risks of gambling while under the influence of cannabis. “When cannabis became legalised in Canada, we developed a whole campaign called Grunk that had this young guy who was trying to teach people gambling while he was under the influence of cannabis, so that you could see how ridiculous and how his judgement was impaired. “It was really
HAVING WELL THOUGHTOUT AND REASONED RESEARCH ISN’T THE ONLY FACTOR IN CREATING AN EFFECTIVE PLAYER EDUCATION PROGRAM
isn’t the only factor in creating an effective player education program, White noted. Striking the right tone, developing the most engaging language and reaching the correct medium is essential to communicating with this digital-savvy cohort of gamblers.
“That's one thing that we've learned
successful in terms of helping to communicate that message in a way that young people could relate to.”
Ensuring that youngsters are protected from harm is essential for the campaign, yet for the RGC this doesn’t mean that any form of gaming must be ruled out of the messaging.
After all, young people nowadays have, for the most part, grown up with game consoles and other devices, meaning they can often be engaged and informed by gaming content.
White explained: “We've also gamified the approach - we find that gamification of the message also resonates well with this particular age cohort as well, just given the fact that they've grown up with video games. So for teenagers, we have a programme that goes into secondary schools throughout the province called the Game Brain and it's more like a game show.”
Having created player education campaigns to reduce the impact of gambling harms on young people across Canada, the RGC is turning its attention to measuring success, as well as reinforcing its messaging and creating new campaigns.
For White it will be a long process, as she admitted that it can be a difficult task to measure changes in gambling activity or individual activity.
But remaining adamant and consistent that problem gambling is a stain on Canadian society will help to reduce the issue.
“I have to say that measuring behavioural change is somewhat difficult, but we believe that being consistent is imperative,” she said. “We consistently reach different segments of the population with our programs and campaigns, and we're constantly reevaluating the message and the tactics that are evidence-informed and backed by research.”
It’s not just the RGC that has a reason to fight this battle. It remains a key priority for all stakeholders,
particularly operators, to fight problem gambling across all demographics, not just younger people.
iGaming Ontario is mandating all partners in the province to undergo the RGC’s RG Check from April 2023 to ensure they employ best practices when it comes to RG. At the same time AGCO remains strict on its advertising standards, which include banning offers and inducements.
Concluding, White noted that every industry stakeholder has a shared responsibility and the initial signs are encouraging. “I think it's a real partnership,” she noted. “I have to say that at RGC, we're really encouraged to see how seriously operators are taking responsible gambling and that it's at the forefront of their work. You'll see it on the homepages of their sites, they're really trying to incorporate it into the player experience.
“They're talking about player sustainability, customer loyalty, they see it as really important to the sustainability of the industry. And these are operators around the world. So we really believe that collaboration is key.” •
DAVID CLIFTON: COMPLIANCE IN A WORLD OF REGULATORY CRACKDOWNS
AS THE MICROSCOPE that the industry finds itself placed under becomes ever more tightly focused, can a path to potential rejuvenation in the eyes of the public be envisaged and, perhaps more crucially, achieved?
BY CRAIG DAVIES
With a ramp-up of regulatory activities having been witnessed on a global scale, it could be argued that the changing public perception of gambling has not been evidenced in a more clear fashion than it has in the UK. This hasn’t been helped by an increase in regulatory action which saw 16 operators, during the 11 months to November 30, 2022, pay out a total of £45m due to failures identified by the UKGC. This included a record £17m settlement paid by Entain.
For comparison, in the 2016/17 fiscal year, action was taken against just three operators that paid out £1.7m for regulatory failures.
To delve into the issue of compliance amid a deluge of regulatory crackdowns, we spoke to Licensing Expert David Clifton to gather insights on whether lessons have been, or are being, learned, and if a precedent has been set that would later be observed elsewhere and more.
SBC: We saw an uptick in regulatory action across numerous regions as 2022 progressed, with this particularly evident in the UK. Why do you believe this is?
DC: As a newly-qualified solicitor, I first started advising British gambling operators in 1983, shortly after evidence of skimming, junketing, fraud, corruption and the provision of unlawful credit led to the closures of several London casinos.
In many ways, it was a different time then. 1983 was six years before Tim Berners-Lee invented the World Wide
Web. It was 13 years before the first money was staked on an online casino, resulting in fears that gambling on the internet was akin to the lawlessness of the American Wild West of a century earlier.
It was 18 years before the USA Patriot Act was passed in the immediate aftermath of the 9/11 attacks on the World Trade Centre. At the same time, the UK Government considerably strengthened the provisions of its Terrorist Act 2000 and, hot on the heels of that, introduced the Proceeds of Crime Act 2002.
It was 21 years before casinos were brought within the ambit of the UK’s Money Laundering Regulations for the first time.
It was 24 years before the UK Gambling Act 2005 came into force with an assurance from the UKGC that it would apply a “light touch“ and “proportionate“ regulation in relation to the three new licensing objectives focusing on crime prevention, fair and open gambling, and protection of children and the vulnerable.
In that same year (2007) Apple released the world’s first smartphone, enabling people to carry a casino around in their pocket, always open for business 24 hours a day, seven days a week.
It was 30 years before the UKGC started to take serious enforcement action to uphold those objectives, having identified operators’ AML and social responsibility failings for the first time. It was 33 years before the UKGC’s then CEO famously announced that the regulator wanted gambling companies to do much more to put consumers at the heart of the businesses.
Why have I delivered that history lesson? It’s because the answer to this first question lies in all that happened over that very same period of time.
Competition grew rapidly as online gambling spread across the globe. Regulatory boundaries got pushed as commercial considerations outweighed compliance responsibilities. In the UK, public trust and confidence in the industry declined dramatically as negative stories about FOBTs, gambling-related tragedies, consumer
complaints and the sheer volume of gambling advertising started to grab media headlines.
The UKGC’s actions soared (culminating in this year’s record sanction of £17m for AML and social responsibility failings) as the regulator lost patience with an industry that it believes has not learned sufficiently from its repeated mistakes.
Similar trends, concerns and clampdowns have occurred in other countries, prompting newly-regulated jurisdictions to impose more restrictive regulatory regimes and longestablished jurisdictions to come down increasingly hard on non-compliant operators.
But was it really such a different time back then in the early 1980s? One only has to look at the cause of the recent casino scandals in Australia to learn that in the field of international gambling regulation, the well-known epigram “plus ça change, plus c'est la même chose“ is most certainly applicable in spades.
SBC: This increase undoubtedly has a detrimental effect when it comes to the public’s perception of the industry, so have lessons been learned or are they being? And why?
DC: Lessons have very definitely been learned for all of the reasons I have mentioned above. However, have operators learned from those lessons?
Whilst he was the CEO of Mr Green, Jesper Kärrbrink appeared to have learned from such lessons when he said: “I think we as an industry have a lot to blame ourselves for; being too aggressive and having a business model of buying new customers all the time. It’s not sustainable in the long term and we come across as greedy and loud.”
More recently, outgoing Flutter Entertainment CEO for UK & Ireland, Conor Grant, was quoted as saying: “I think we have to acknowledge that what has happened in the past in some instances hasn’t been right, and we have made mistakes – but I think we have to move the discourse on,” adding: “We have to be part of the solution.”
The final part of that quote chimes with the UKGC’s repeated call for “collaboration”, the buzz word of its last CEO Neil McArthur.
The challenge for the industry is that, in the eyes of many regulators, lawmakers and the public alike, trust in gambling operators has been lost forever, that the online gambling sector in particular was given a ”rope of opportunity” to self-regulate effectively but proceeded instead to use that same rope to hang itself. However, even if some believe that such a suicide has been committed, surely something can still be salvaged from the situation?
For example, although Entain was the unfortunate recipient of a UK record £17m penalty earlier this year (incurred by reason of regulatory failings during 2019 and 2020), it is widely regarded as now leading the way on both sides of the Atlantic in terms of setting the highest standards in player protection and social responsibility.
In addition, UKGC statistics published this year have indicated not only continued maintenance of lower problem gambling rates in the UK, but also significant increases in
THE UKGC’S ACTIONS SOARED AS THE REGULATOR LOST PATIENCE WITH AN INDUSTRY THAT IT BELIEVES HAS NOT LEARNED SUFFICIENTLY FROM ITS REPEATED MISTAKES
more positive public perceptions of gambling. All is not yet lost.
SBC: Could these actions potentially set a precedent that could be witnessed elsewhere? What could newly-regulated markets, or those looking to regulate soon, learn?
DC: UKGC Deputy CEO Sarah Gardner accurately summed up the opinion of many in a speech delivered in mid-November when she said that “gambling has changed radically in recent years, looking more like a global tech industry than the traditional gambling sector many people think of when they think about gambling”.
I have long held the belief that the more robust regulatory standards set by the UKGC would become a benchmark for other gambling jurisdictions. That is why I have warned in several international conference speeches of my own in recent years that both operators and regulators in new online markets should learn from the UK precedent – both what has worked and, sadly more often, what has not worked.
In October this year, the UKGC’s present CEO, Andrew Rhodes, issued his own warning when addressing an audience of international gambling regulators. He said: “In Great Britain we have the largest online gambling market in the world and one of the most liberalised. So, what happens in the UK will likely happen in your jurisdiction, if it is not already happening.”
He explained the reason for that comment with the following forecast: “Many of us will be dealing with the same operators and groups of operators. We will be tackling the same issues too, whether you are a newly-regulated market, licensing online gambling for the first time or a large and mature market,” adding: “… and ultimately, we all want the same thing too - operators who are compliant with our regulations and rules. But we know as well as you, in such a volatile and innovative environment, it can be hard to keep pace. And a lot of the time, that story suits all too many operators in the gambling industry.”
His speech concluded with the following appeal to his fellow regulators: “If we can crack ways to better work together - sharing data and intelligence, adopting common approaches and co-ordinating actions where possible - we can achieve globalised progress across a globalised marketplace.”
I believe it is inevitable that will happen, and that it will happen sooner than many may think. •
Andrew Rhodes, UKGC’s current CEO
CASHLESS IS AN OPTION, NOT A RULE - THE EVOLVING WORLD OF LAND-BASED PAYMENT
SINCE THE PANDEMIC, we’ve seen a shift towards cashless payments as many bettors shun physical notes and coins. But could this trend towards digital help improve the overall brick-and-mortar experience?
BY JAMES ROSS
In the words of Bill Gates: “The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency.”
Throughout the land-based casino sector, we’re seeing these words come to fruition with the constant partnerships between payment firms and brick-and-mortar properties leading to the integration of cashless payment options to gaming machines.
Earlier this year, Acres introduced its Cashless Casino, a product that enables operators to deploy cashless gaming and loyalty solutions.
At the time, Noah Acres of Acres Manufacturing Company noted that early deployments of the Foundation’s new product have “proven” that cashless players increase their play and visitation.
On whether there is a noticeable difference from physical cash, Acres explained that early returns prove that cashless helps casinos to generate more profit. He believes this trend “will continue”.
He commented: “Over 80% of consumer purchases are made using non-cash methods and casinos are one of the last remaining cash-only businesses. Today’s cash players frequently have to make a trip to the bank to withdraw cash for casino play.
“Those that don’t plan ahead may have to pay expensive ATM or cash advance fees at the casino. This adds friction to the process and makes the player experience more burdensome.
“Penn Entertainment reports cashless players increase visitation by 18% and time on device by 22%. Many of the early adopters to cashless will be high-limit players that can continue to reload their mobile wallet without leaving the game.”
Sightline Payments is another firm
making headway in the cashless field, with the firm gaining approval by the Nevada Gaming Commission on its petition to provide casino customers with a “streamlined cashless experience” at the start of 2022.
This change would also enable Sightline to implement digital identity verification on behalf of its operator partners in Nevada.
Jonathan Michaels, SVP of Strategic Development & Government Affairs at Sightline, stated that, in time, properties will certainly see an overall lift by transforming to digital payments.
Michaels explained: “Cash is a huge cost centre for properties – from the cost of acquiring it, from the people to transport it and count it and the security issues around having large amounts of cash. In every other industry that has gone cashless, there is a lift in spend – and gaming is no different.
“You have seen Penn Entertainment’s CEO, Jay Snowden, talk about the early successes of their cashless program and the increase in spend seen when comparing properties that have cashless to properties that do not.”
“The importance of
omnichannel payments here is paramount,” Michaels continued. ”As digital gaming continues to grow, you want to serve your customers wherever they want to play. Our view on omnichannel is that money and loyalty should follow a customer wherever they go. This omnichannel lift in spend and play is already apparent too.
“Caesars reported that customers who they sourced from their digital channels spent $200m at brick-and-mortar properties. In their last earnings call, MGM Resorts reported that 40% of their overall MGM Rewards enrollments now come via their digital channels.
“This omnichannel tie is going to be the focus for operators over the next two years and the best way to leverage this is to allow for omnichannel payments, allowing the same funds to be used online and onproperty.”
Looking into how this new way of paying will improve player engagement and retention for landbased properties, Acres observed that smart casinos want their players to download an engaging mobile app, emphasising that “cashless will be the glue that holds this app together”.
“In the case of Acres, our Foundation platform merges cashless payments with loyalty and bonus using real-time player data, which will make the overall play experience more entertaining and rewarding,” he said. “Players will want to use cashless because they’ll be able to win more.”
Echoing these thoughts, Michaels expressed that there are “several avenues” that land-based operators can go down to leverage digital payments and technology to aid engagement and retention.
The Sightlight SVP continued: “On the engagement side, cashless will be a mobile-first proposition. We leverage our Mobile+ app platform, which is live at more than 100 casinos nationwide, providing them with avenues to engage their customers.
“Leveraging cashless, you can build a true and customised picture of what your guests want to do on property. Be it gambling, restaurants, nightlife, entertainment, hotel, spa – whatever it may be, you can better engage that guest by leveraging the personalisation aspects afforded by cashless and mobile. “Leveraging that personalisation, you can
