22 minute read
Gaming
by SBC Global
Jonathan Michaels, SVP of Strategic Development & Government Affairs at Sightline Payments
increase retention by delivering rewards and loyalty that matter to that guest. The days where you send out expensive hard-mailers with an offer to all your guests are gone – and they will be replaced by custom targeting based on guest activity both on and off property.
“Payments allow you to meet your guests wherever they are – be it visiting your casino or via your digital channels. The goal we help reinforce for our operator clients is to help them best engage their customers wherever they may be – and cashless is an incredible tool to help them do that.”
However, with the ever evolving digitalisation throughout society as a whole, could we see brick-and-mortar casinos lose that so-called cliché ‘old school’ appeal?
Responding to that point, Acres argued that losing old-school appeal is a “common misnomer” that is “without merit”.
He stressed: “Cashless is an option, not a rule. Players who want or prefer cashless can use the new technology while those with old-school physical cash preferences can continue uninterrupted.
“But the idea that casinos adopting new technology burdens or turns players off is an oft-repeated misnomer in the casino industry.
“In the 1990s the experts said players preferred mechanical spinning reels and didn’t “trust” video reels. This was completely false and today you can see roughly 90% of all slots are video.
“The same experts also told us that players loved using coins in slot machines and wouldn't adapt to bill validators or TITO technology. The expert logic said players loved handling coins and that slots couldn’t survive without the audible noise of coins clanging in the coin tray.
“Of course, today almost everyone would be completely disgusted with handling a large volume of coins, let alone lugging coin buckets from machine to machine.
“Remember that 80% of consumer transactions are non-cash. How ridiculous is it for someone to argue that cashless won’t work in a casino?”
Throughout any changes in the industry, the main clarity we hear is that customer service is the biggest focus and evolutionary directions also factor this in mind. That being said, what are the implications of going cashless in a land-based casino to AML and KYC?
On this, Michaels concluded that digital payments provide a “huge benefit”.
He explained: “Regarding AML, all digital transactions have a corresponding digital record – and can be tracked accordingly by properties, payment companies and law enforcement where appropriate.
“AML is trying to find a needle in a haystack. With cashless payments and cashless wagering accounts, you can reduce the size of that haystack.” •
CASHLESS WILL BE A MOBILE-FIRST PROPOSITION HOW RIDICULOUS IS IT FOR SOMEONE TO ARGUE THAT CASHLESS WON’T WORK IN A CASINO?
APPARAT IN GERMANY: NAVIGATING A ‘CONSERVATIVE’ MARKET IN TRANSITION
CHALLENGING REGULATORY FRAMEWORKS is nothing new to the German gaming market. As operators and suppliers will readily testify - it’s one of the toughest European jurisdictions to crack. Apparat Gaming’s Thomas Wendt explains how the jurisdiction has been coping during the latest regulatory transition
BY DANNY LEE
’G aming with a German accent’ is the tagline of Apparat Gaming, the Malta-based company that has served the regulated market in Germany since its inception. With the turn of the year behind us, SBC Leaders sat down with Co-Founder and Director Thomas Wendt to discuss how this jurisdiction has been performing during a crucial phase of regulation.
Going back as far as January 1, 2022,
de Glücksspielbehörde (GGL) assumed sole responsibility of combating illegal gambling in Germany through a noticeably strict regulatory framework.
During this unprecedented time for the German igaming space, operators, suppliers and players have faced combative issues that restricted them from performing as they would in most other regulated jurisdictions. And, according to Wendt, “there is still a long way to go” before they can compete.
“I do not want to engage in speculation,” said Wendt when asked why he thought that the German regulators had implemented such tough restrictions in comparison to other European markets. “Because this is the result of a primarily political process, where one should know all who were involved in the decision making.”
He continued: “Since I don’t know, I can only look at the outcome. The ‘cui bono’ can best be answered in reverse, as it is not to the advantage of the established market participants in the online industry - perhaps that is already part of the answer.
“The current regulation definitely influences the development of the market, because the still incomplete licensing process for the approximately 70 casino applications or the approval process for the games shows that everything will take at least a little longer here than in other comparably regulated countries such as the Netherlands.”
As a supplier, Apparat Gaming has faced a number of challenges in its bid to market games for German players, with the Interstate Treaty on Gambling placing a number of restrictions on the way they can enjoy its slot titles.
These restrictions include a monthly deposit limit of €1,000, a bet limit of €1 per spin and a ban on autoplay features and progressive jackpots.
In addition to considering these limits, suppliers have to go through an extremely lengthy certification process to ensure that their games are suitable for the country. Wendt focused on this topic of authorisation as one of the key issues that remains unclear as the GGL gets to work.
He said: “From our point of view, the certification of the games is currently a major, unsolved problem. The approach chosen by the legislator of approving each game individually for each operator, regardless of whether it has already been authorised identically somewhere else, is obviously not very practicable.
“To put it quite simply: if staffing does not allow for the implementation of their own regulations, then they could look to the best practices of other markets. And that would mean outsourcing game certification to reliable partners who are willing to comply with strict standards, instead of trying to do everything themselves.”
The Interstate Treaty also saw a number of limitations presented to
operators within the jurisdiction, as they must go through a similarly lengthy approval process for German licences.
Wendt explained how these limitations, when combined with the issues Apparat itself faces, have caused the company to warn against creating games that stand out from the competition. Due to the Treaty’s lengthy approval process, similar games have been pushed out by studios as they know they are more likely to be approved.
The Apparat Co-Founder commented: “The German market is still in a transitional phase, which will probably continue for a while due to the special circumstances, in particular the limited range of games on the market.
“Our games are specially designed for the German market and its needs, and to that extent our expectations have been fulfilled so far. At the same time, however, we also observe and warn against distortions in competition, because the tough approval process for games makes it difficult to differentiate offers.”
While the country’s restrictions on players, suppliers and operators have been unwelcome in the igaming industry, companies have been working hard to find ways of succeeding in one of Europe’s most densely-populated countries.
With 10 slot titles to its name, Apparat is still finding its feet as a slot creator. But Wendt explained how the company tries to tailor its games to German players while navigating the strict regulations.
“With 10 titles, our games portfolio is still quite small to allow a general statement here,” said Wendt. “But since we have built up our portfolio
directly with the German market in mind, it is already a quintessence of what works well as an intersection in the European markets, but primarily in Germany, in terms of features and themes.
“The German market is somewhat more conservative than other markets, but that doesn’t have to mean that the games look stale. Our approach of giving the ‘German accent’ a refresh has worked very well so far.”
It comes as no surprise that due to the Interstate Treaty’s various limitations, for some companies, particularly smaller studios and operators, delving into the German igaming market is simply not worth it.
However, Wendt instilled hope that the country’s igaming space will find its feet if the regulators can pull together to address these issues. “One or two stumbling blocks will have to be cleared out of the way,” he said. “This can only happen through real cooperation between regulators and industry. Calling for eye level here sounds presumptuous, because there
is a good reason why regulation and player protection take place, and the regulator is well advised not to be taken in by particular interests.
“There is still a long way to go before we have an internationally competitive market - and having a functioning, regulated market should be the common goal. Some other markets are undoubtedly a few years ahead of the German one, but we are confident that you don’t have to make every mistake yourself to learn from it and that it is only a matter of time before the German market fulfils its potential.” •
CHRIS SCICLUNA: THE WORLD OF SOCIALLYCHARGED CASINOS
THE CEO OF LIVESPINS takes us on a journey through the world of slots and the ways in which his company is meeting the demand for a more interactive, community-driven entertainment experience
BY ERIN GALLAGHER
SBC: Thanks for taking the time to chat with SBC Leaders! So, we're now in 2023 - how have the last 12 months been for Livespins? What have been the main highlights for the company?
CS: It’s been a breakthrough year for Livespins as we continue our mission to provide socially-charged online casino experiences to players around the world. A big highlight for me has been the onboarding of so many quality slot studios including Relax Gaming, Yggdrasil and iSoftBet to the platform.
Slots are vital to the success of a stream, which is why we continue to partner with in-demand providers that know exactly how to get streamers and audiences on the edge of their seats with each spin.
Another milestone has been putting pen to paper on several operator partner deals with WynnBet in the US and Campeon Gaming in the rest of world. These are major operators in their respective markets and mark the arrival of Livespins as a tier-one provider.
SBC: In a post-pandemic world, how important is it that the igaming ecosystem places more of an emphasis on the social side of gaming? How can this be done effectively?
CS: Even without the pandemic, it’s clear that consumers are seeking more interactive and community-
driven entertainment experiences. Online casino is competing with other entertainment options such as mobile/ video gaming, streaming and social media, all of which provide deep social elements and features.
To draw consumer attention away from these competing pastimes, online casino operators need to provide similar levels of engagement and interaction and that is exactly what Livespins provides. We do this through our bet behind system, which allows players to bet directly on the streamer’s action taking place across the reels. This creates a group bet and a shared experience, but with each player able to set their bet size and number of spins.
Players can communicate with the streamer and each other throughout, as well as add reactions and emojis. This means that regardless of whether they win or lose, they are having a fun, social, community-driven experience.
SBC: As the industry prepares for ICE London, what can delegates expect to see when they pop by the Livespins stand?
CS: They’ll be able to see what all the fuss is about. For operators, they’ll be able to understand just how Livespins integrates within their casino and the additional revenues a live streaming offering can generate while still being compliant and providing high levels of responsible gambling.
For studios, they can learn more about how Livespins offers unrivalled exposure for their games among audiences and players, and the ways in which our streamers can market new titles by unboxing slots and talking audiences through bonus features and gameplay.
For streamers, they can find out how Livespins allows them to do what they love doing the most, while enjoying the stability and security
that comes from working for a large, well-funded business. For anyone else, they can strap themselves in and feel what a socially-charged online casino experience is really like.
SBC: In the last few months, we’ve seen a big focus on technologies such as the metaverse, artificial intelligence and machine learning. What role will these technologies play at Livespins when it comes to delivering a more social gaming experience?
CS: For Livespins, it's predominantly AI and ML that we engage with. An example is moderation of the social features, where we deploy these technologies to ensure a safe and responsible social environment for the community. I think the Metaverse and the definition of such is still in its infancy and for now we focus on the near-term landscape, but of course keep a keen eye on all developments that will influence consumer entertainment consumption and behaviours.
SBC: Are there any particular trends which you believe will truly capture the industry’s attention in 2023 and beyond?
CS: From a streaming perspective, it’s hard to ignore Twitch’s decision to ban some online casinos from its platform. This will have a huge impact on how online casinos and studios leverage the popularity of streaming to engage these audiences and ultimately market their brands to players.
Livespins is the perfect alternative or at least complement to Twitch, and because we integrate directly into the casino lobby any concerns around responsible streaming and compliance are totally mitigated.
I think discussions will also continue around how online gambling brands can tap into the psyche of the next generation of players and provide the social, entertaining experiences they are seeking. Streaming will have a big role to play in this.
SBC: What can we expect from Livespins over the coming months?
CS: The next 12 months are going to be big for Livespins. Our main priority is to shift focus away from onboarding studios (we now have more than 20 integrated into the platform) to signing deals with operators. We’re already up and running with CasinoFriday and in mid2022 announced we’d partnered with WynnBet in the USA.
At the back end of 2022, we also put pen to paper on an agreement with Campeon Gaming to add Livespins to the lobbies of its roster of casino brands. We carry this momentum into 2023 where we have several big-name operator partnerships lined up.
As part of this, we will make a major push into North America, a market where we see huge potential for Livespins, while also continuing to make progress in Europe and other regions around the world. •
IGT: BRINGING A BLOCKBUSTER BRAND TO ILOTTERY
CHRIS COSTELLO, IGT’S eINSTANT STUDIO SENIOR
DIRECTOR, tells us about the reasons why the US gaming giant chose to take inspiration from a much-loved comedy in its latest eInstant title, Ghostbusters Prized Possessions
Ghostbusters Prized Possessions, IGT’s latest eInstant, packs quite a proton punch. Leveraging one of the company’s high-quality licensed brands, the game’s strong design, entertaining bonus rounds and eye-catching animations are destined to make it a supernatural success.
“We designed Ghostbusters Prized Possessions with players in mind, adding in layers of movie iconography and interesting ways to win,” said Chris Costello, IGT eInstant Studio Senior Director.
“In my favourite bonus round, players battle the Stay-Puft Marshmallow Man to save the city and win prizes. The game is 100% slimy fun that will quickly become a player favourite.”
The enduring popularity of the Ghostbusters mega brand and the game’s vibrant graphics make Ghostbusters Prized Possessions the perfect eInstant portfolio addition to
Ghostbuster Prized Possessions Features:
• Tumbler-style game play • Proton Wilds: free turns with sticking wilds • Dancing Toaster Bonus: instant win pick a prize • Stay-Puft Marshmallow Man battle
bonus round • Iconic movie characters and props • Captivating and colorful art and design • Plus, lots of slime!
engage players and drive revenues for good causes.
Based on past licensed-property performance, IGT predicts a long shelf life for this game, with it exciting players for years to come.
Licensed brands – an acquisition strategy
Knowing players’ affinity for licensed content, IGT sources the best brands to deliver games with the highest appeal for lottery players. Along with Ghostbusters, the firm has a successful and long-standing relationship with the premium brand Wheel of Fortune across casino and lottery products.
In 2022, IGT developed the Wheel of Fortune Prize Burst eInstant, making players feel like they stepped into the game show with its familiar icons, sounds and, of course, the wheel prize spin. Wheel of Fortune Prize Burst recently launched with a US lottery, and it is proving to be popular with players ‒ approximately 80% played the game in its first week.
For lotteries interested in omnichannel content, IGT’s game portfolio also includes instant tickets that let players access their favourite brands across channels.
“Along with top-performing mechanics and innovative features, it’s our attention to detail that sets our eInstants apart,” said Costello.
“We take great care in designing games with high-quality art and animations that elevate the entertainment value. It shows in our customers’ eInstants gross gaming revenue.
“Year over year, US eInstants grew 6% while IGT US eInstant’s year-over-year gross gaming growth was approximately 45% in fiscal year 2022.” • To learn more about Ghostbusters Prized Possessions, Wheel of Fortune Prize Burst and IGT’s diverse eInstant library, contact your IGT Account Manager or stop by our Stand N3-150 at ICE London to play the games.
SAFER GAMBLING FOR LOTTERY SPORTSBOOKS: PLAYER PROTECTION METHODS ON THE RISE
PLAYER PROTECTION HAS OFTEN BEEN TAKEN FOR
GRANTED as a cornerstone of lottery sportsbook policy, but an even greater focus has been shone on the subject in recent times
BY NICK WARE
Over the last few years, the gambling industry as a whole has been forced to address some uneasy and intimidating issues. Player protection is one of them. While businesses have - and always will - profess the value of customers as of paramount importance to their existence, that has, frankly, not always been the case.
But attitudes are changing across the board as a more forward-thinking culture develops. Mental health is no longer a repressed topic, and the breakdown of such a stigma has helped feed into the now widely-accepted narrative that health really is wealth.
In a gambling context, this has helped to propel the issue of player protection among businesses. Pertintently, this has been evident across numerous lotteries who have moved to create a safer environment for their sports betting customers.
Nikos Konstakis, Chief Product Officer at OpenBet, has been one of the key figureheads in implementing safer gambling for lottery sportsbooks. As a provider of sportsbook technology, content and services, OpenBet has
Nikos Konstakis, Chief Product Officer at OpenBet Alexandra Aguzzi-Barbagli, Senior Vice President, Brand, Communications and Sustainability at OLG
partnered with some of the biggest sports betting brands and helped World Lottery Association members across the globe.
The firm counts the sportsbook brands of Czech-based lottery company Allwyn and Danish lottery operator Danske Spil among its partners, and Konstakis delved deeper into how a shared vision has helped OpenBet to further hone its player protection methods.
“We have all the tried and trusted tools at our disposal, such as deposit limits, timeouts and self-exclusion, and these form the basis of what we do. We have developed these tools in recent months and years to include time limits and session reminders, as well as hard limits, such as a tool that will remove a player after a certain time elapses.”
Konstakis added: “Lotteries have been vital for OpenBet for many years, and we have had significant success with them in recent times. Historically, lotteries have always had a focus on social responsibility, and this sits well with the OpenBet ethos.
“As far as our audience is concerned, we are genuinely blessed with our customer base. Each one is taking its approach to responsible gambling seriously, so rather than educating, it is more a case of collaborating with them. We share our ideas and maintain an open dialogue to ensure the best, safest outcome is achieved.”
HISTORICALLY, LOTTERIES HAVE ALWAYS HAD A FOCUS ON SOCIAL RESPONSIBILITY, AND THIS SITS WELL WITH THE OPENBET ETHOS THERE HAS ALSO BEEN A GREATER FOCUS ON BECOMING PROACTIVE, RATHER THAN REACTIVE
Getting ahead of the game
For lottery sportsbooks, there has also been a greater focus on becoming proactive, rather than reactive, therefore being able to identify an issue before it snowballs into something bigger.
Australian company Tabcorp completed a demerger of its lottery and keno business earlier this year, but its recently-published FY2022 sustainability report highlighted some key aspects while the lottery sector was still under its jurisdiction. They included the introduction of a system to proactively detect potential selfexcluded customers who are opening new accounts to stop harmful activity from occurring.
“Where we identify customers that are ‘at risk’, we conduct a review of their activity,” the report noted. “Depending on the result of the review, customers may be contacted to complete a Responsible Gambling (RG) check and learn more about our RG tools. Where a customer acknowledges having a gambling problem or we believe the customer is no longer able to hold an account responsibly, we may close the account temporarily or permanently.”
Recognising responsibilities
Placing the power of responsibility into the hands of players has also been an important feature of safer gambling policies launched by lotteries.
Recently, the Ontario Lottery and Gaming Corporation (OLG) stepped up efforts to protect players with the launch of its new self-exclusion programme ‘My PlayBreak’, marking the latest addition to the RG programme ‘PlaySmart‘ which enables players to take a break from play at Ontario casinos, the Charitable Gaming Centre, or online at OLG.ca.
Alexandra Aguzzi-Barbagli, Senior Vice President, Brand, Communications and Sustainability, said: “OLG prioritises
player health and is focused on continuous improvement of its RG programming. My PlayBreak is just one of the RG tools in OLG’s sophisticated and unmatched PlaySmart portfolio that is integrated across multiple product lines to help customers create and maintain healthy habits that enable a lifetime of sustainable play.”
AI influence
Technology has played a pivotal role in making gambling safer for players, whether that be through the aforementioned settings and automations implemented by sportsbooks, or via the marketing and messages spread online.
The growing use of AI methods cannot be overlooked, either. German lottery provider ZEAL Network SE has been a major proponent of this, recently partnering with trust services provider Nect to utilise its AI-based identity verification technology for the safety of minors.
Nect Ident, its fully automated identification method based on AI, allows users to independently identify themselves using an ID document and a “selfie video“ on an app, with the integrated technology able to detect attempts at digital manipulation so that ZEAL can discern fake profiles from real accounts and block out false identities.
Prior to this partnership, ZEAL also joined forces with the Danish company Mindway AI, gathering feedback from AI to identify gamblers potentially at risk of gambling addiction. Based on scientific findings and algorithms, the system automatically detects gamblers at risk of gambling addiction at an early stage.
Mindway AI’s fully automated GameScanner works like a “virtual psychologist“, and is applicable to all forms of gambling. Rasmus Kjaergaard, CEO of Mindway AI, noted: “Although lottery products have a low potential for addiction, it is essential to reduce possible risks and to monitor and protect at-risk gamblers.”
Rasmus Kjaergaard, CEO of Mindway AI
Innovation and realisation
Meanwhile, Norwegian operator Norsk Tipping earned praise in the lottery industry for its “customer-friendly systems, effective campaigns, attractive products, high levels of trust and good reputation” after winning the 2022 European Lotteries innovation award for its work in the field of responsible gaming in October. Norsk Tipping’s ‘unique’ campaign was praised for its prevention methods for at-risk players, while its personable customer touch also drew plaudits.
However, recommendations made by Lotteri-og stiftelsestilsynet – the Norwegian Lotteries Authority - just a couple of months before Norsk Tipping earned the honour, indicate that there is still significant room for improvement in the responsible gaming field, even from those considered to be leading the way. •
SCA COMPLIANCE SIX MONTHS ON: HOW AGILITY HAS BEEN CRITICAL TO CASHIER OPTIMISATION
STRONG CUSTOMER AUTHENTICATION BECAME
MANDATORY for all online transactions in the UK earlier this year. For igaming operators, taking a dynamic approach to Transaction Risk Analysis for exemption rules has been key to minimising cashier abandonment without increasing fraud rates, writes Warren Tristram, Head of Gaming, Lottery and Esports at Nuvei.
BY WARREN TRISTRAM
In May 2022, after several postponements, the full enforcement of Strong Customer Authentication (SCA) under PSD2 legislation came into force in the UK. The regulation mandates multi-factor authentication for online transactions with the intention of reducing fraudulent payments, but online businesses have long been concerned about the impact that additional friction might have on their checkout conversion rates.
This is especially true in igaming, where optimising cashier performance is critical to overall success. As the final hurdle to winning new players, enabling fast, secure and frictionless payments plays a vital role in the overall player experience; compromising these risk damaging
