ISSUE 16 • AUGUST 2021
NEW FRONTIERS
RED FLAGS
The Canadian Opportunity
Fighting affiliate fraud
MOBILE VS LAND-BASED
The battle for market share SLOT DESIGN
Stepping out of the comfort zone
Jette Nygaard-Andersen ENTAIN
Revolutionising sports betting and gaming entertainment
6-16 Sports Betting
• Jette Nygaard-Andersen: Building the next global entertainment platform • Warren Murphy: Scaling up Sportradar’s soccer offering • Novibet: Driving new growth within the global GameTech industry
CONTENTS AUGUST 2021
18-24 US Market
• Canada: How Ontario is bringing the sports betting industry ‘into the light’ • Is the US primed and ready for an igaming gold rush?
25-27 Latin America
• Rupinder Singh: Closing the gap in Latin American payments
29-35 Casino
• Is the US heading for a mobile versus land-based battle? • Slots are becoming ‘more diverse’ to keep up with player engagement trends
38-47 Marketing
• From Where I Sit: The importance of micro-communities • SofaScore: The secret sauce to the best performing sports apps • PartnerMatrix: Keeping affiliate frauds at bay
48-54 Payments
• AstroPay takes pioneering global payments solution to Europe • Could the UK’s regulatory red tape drive bettors to the black market?
55-64 Lottery
• Ludovico Calvi re-elected for third term as GLMS President • A bright future for lotteries: SAZKA on becoming a pan-European operator • Tokyo 2020: the National Lottery shows its support for Olympic athletes
65-67 Events
• Face-to-face meetings and new partnerships on the agenda as in-person events return
The SBC Leaders Magazine is brought to you by SBC - Sports Betting Community: EDITORIAL TEAM: Luke Massey, Erin Gallagher, Andrew McCarron, Craig Davies, Ted Menmuir, Joe Streeter, Chris Murphy, James Ross, Lucia Mouriño, Conor Porter, Holly Hunt, Ted Orme-Claye, Martyn Elliott, Kelly Kehn SALES TEAM: Rasmus Sojmark, Alyona Gromova, Conall McCabe, Jan Willem Volbeda, Richard Deacon, Bob McFarland, Tom Bullen, Jan Kowalczyk 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
2 SBC LEADERS • AUGUST 2021
“
INTRO Luke Massey Head of SBC Media
W
elcome to the fourth edition of SBC Leaders for 2021! A lot seems to have changed since we last published an edition of SBC Leaders; hospitality has reopened, lockdowns have been lifted and Italy celebrated victory in the Euro 2020 final much to the dismay of England fans everywhere. The remainder of 2021 is also starting to look much brighter for the betting and gaming industry as casinos, stadiums and racecourses have all been able welcome punters back through their doors - bringing a much needed boost after what has been a very difficult period. For Entain, this year has also seen a change of leadership after Jette NygaardAndersen took the reins of THE REMAINDER the global betting company OF 2021 IS ALSO in late January. In her first betting STARTING TO LOOK industry interview, MUCH BRIGHTER FOR Nygaard-Andersen speaks THE BETTING AND to SBC Leaders about why GAMING INDUSTRY ‘opportunity’ is a word which aptly summarises her first six months as CEO, before touching upon the convergence of technology and entertainment as well as the growing opportunities within the US market. Nygaard-Andersen isn’t the only leader to hone in on opportunities in the US, as speakers from the recent CasinoBeats Malta conference examined whether the postPASPA market is primed and ready for an igaming gold rush. Meanwhile, our gaming section continued with Troy Zurawski, CEO of Design Works Gaming, and Kent Young, CEO of Spin Games, questioning whether we could be heading for a mobile versus land-based battle across the country.
4 SBC LEADERS • AUGUST 2021
Erin Gallagher SBC Leaders Editor
Among one of the many changes that we have seen in the last few months has been the passing of Bill C-218 in Canada, which has legalised single-game sports betting after an 11-year legislative process. Of the 10 provinces, Ontario will likely be the first to join the sports betting club. Similar to its US cousin, it is expected to catch the attention of those operators looking to expand their international footprint. According to Ludovico Calvi, President of Global Lottery Monitoring Systems, a regulated Canadian sports wagering market will also provide a much-anticipated financial boost to professional leagues. Canada was not the only market he had his eyes on, however, as the growing potential of the Brazilian market was among one of the many topics discussed in his interview. Paysafe’s SVP Consumer, Digital Wallets Rupinder Singh also shone a light on the Latin American region as he gives a breakdown of why consumer behaviours, similar to the topography of the South American market, can often be very diverse. Jump over to Europe, and AstroPay CEO Mikael Lijtenstein outlines his plans for global expansion - explaining why Portugal, Spain and the UK were the perfect places to extend its services. Meanwhile SAZKA CEO Robert Chvátal discusses the company’s transformation into a pan-European lottery operator and the bid for the UK National Lottery contract. If you’re looking for more European content, we’ve got you covered with the return of our live events - starting with SBC Summit Barcelona from 21-24 September. We hope to see you then, but in the meantime, enjoy this edition of SBC Leaders! •
Preserving an entrepreneurial spirit
JETTE NYGAARD-ANDERSEN: BUILDING THE NEXT GLOBAL ENTERTAINMENT PLATFORM BY ANDREW MCCARRON
SBC: You’ve been in the role for six months now. How have your previous roles in the media, entertainment, sport, digital sectors shaped your leadership style today? JNA: As you know, I’ve been a nonexecutive director for a little over a year. I knew that there was a unique opportunity for us to really build the next global customer-led entertainment platform. That’s really how I see the business and how I believe that we can revolutionise sports betting and gaming entertainment. Throughout my career, I have always worked in businesses or areas where it’s all about understanding the ways that technology enables new consumer behaviours. I really believe that technology is creating new experiences, ecosystems and expectations, but it also enables you to meet the changing customer needs as well as provide customers with new and exciting entertainment experiences. So when I think about our business, I really think about ourselves as an entertainment company. I think about how we can leverage the fantastic platform that we have created at Entain for our customers to create moments of excitement in a safe and enjoyable environment. I knew this when I came into the business, so of course this has been shaping the ways that I think about Entain and our opportunities going forward. It probably also impacts my leadership style, because when you work in the media and entertainment sectors for as long as I have, there are a few things which just become a part of who you are. One thing is, that it’s always about change. The industry is changing all the time. So you need to have that passion and curiosity around new technology and be able to think about how you want to shape the industry.
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SIX MONTHS AFTER HER APPOINTMENT AS ENTAIN CEO,
Jette Nygaard-Andersen speaks exclusively to SBC Leaders about taking the reins in the midst of a pandemic, why technology is an ‘enabler’ for player entertainment, and why she is hugely excited about new opportunities for the operator across the world I’ve always worked in an environment which has a lot of diversity - diversity between corporate and creative people, between established businesses and entrepreneurs, young and old, men and women. I think it’s hugely important for a business, not least for one of our size and global reach to be diverse. I think this has all shaped who I am. I am extremely passionate about the opportunities that we have in really offering a new and exciting approach for our customers. As I joined, I was attracted to the culture of Entain. We’re
I KNEW THAT THERE WAS A UNIQUE OPPORTUNITY FOR US TO BUILD THE NEXT GLOBAL CUSTOMER-LED ENTERTAINMENT PLATFORM
acknowledging that we are a big FTSE 50 company, but we are also preserving that entrepreneurial spirit within the company. SBC: When you first joined Entain, one of the things you really wanted to highlight was International Women’s Day. What other events have also stood out for you? JNA: There have been so many things that stood out! But you mentioned the pandemic; I have to say, it is quite unusual to take a CEO role in a global company in the middle of a pandemic. When you take a new job, you are so dependent on being with your colleagues, actually meeting people and also being able to story tell around what your vision is. All of this just works best when you’re in a room together. But I’ve had to work like everyone else has had to do through the pandemic, communicate over the phone
SPORTS BETTING
WE’RE ACKNOWLEDGING THAT WE ARE A BIG FTSE 50 COMPANY, BUT ALSO PRESERVING THAT ENTREPRENEURIAL SPIRIT and via video calls. That requires you to be much more on-point with your story telling. You need to be able to come through the screen and show your passion about joining the company, the team, and being so proud of what you do - all through the screen. On the positive side, I have been blown away by the ways that everyone in Entain has come together during the pandemic and continued to deliver great things for our customers, our colleagues and our shareholders. As a fast paced business we went into the pandemic with many big projects underway and without missing a beat our people kept not just the day to day running like our customer service centres, but also delivering new products to our customers, migrating Ladbrokes onto our tech platform and launching in a few US states. I’m also proud of the way that people just stood together. It hasn’t been easy for everyone to juggle being at home, maintaining a private life and then communicating with your colleagues. For good or bad, this has probably been what has stood out the most for me on a personal level. When I came on board, I had a very clear vision of where I would like to take Entain - and I have been so encouraged by everything that I have seen. I truly believe that we have the best people in the industry. We then have our capabilities, our experiences and our technology - it is all of these together that form the Entain platform. This provides a powerful and unique competitive advantage that will enable our ambitions as we look to grow into new markets and revenue streams. I guess you can say that I have really been encouraged by the ways in which everyone is embracing the wider vision. Besides the word pandemic, I think ‘opportunity’ is a word that you could
sbcmagazine.com 7
Preserving an entrepreneurial spirit
really put on a headline to describe my first six months here! SBC: You said earlier that you see Entain as an entertainment company, however you’ve also just suggested that Entain is also very much a technology company. How do you balance the two? And which do you think best describes Entain? JNA: When you are running a digitalfirst entertainment company, I think there are two things that are absolutely critical: understanding technology and understanding your customers. These two things go hand in hand. So I don’t really set them apart from one another, but I do view technology and the platform it creates as an enabler.
SBC: How do you get Entain into the mindset of being ahead of everyone else in terms of innovation and player experiences? JNA: I think there’s a DNA in the company which is quite entrepreneurial. It is still quite a young company. Some very smart leaders spotted an opportunity to build a business which acquired really good teams and companies around the world. So when you are becoming a certain size, you are understanding that the more companies you acquire, you need to build a platform that constantly supports that growth. So when we acquired bwin, the technology there became the platform
If I look back at the last 25 years of my career, every time that there was a new development in technology, or convergence between technology platforms, we saw changes in consumer behaviour. Sometimes that change was slow or gradual, other times it happened overnight! If you just think about streaming, there were several years where there was latency, picture quality was bad, products were outdated, you couldn’t search, there was no recommendation. But then in 2011/12, everything changed really quickly. Today we see technology improving through 5G, reduced latency for streaming platforms. At the end of the day, all of these things will enable us as an entertainment platform to bring you exciting and engaging products.
and that has really been the foundation. For every leader in the company, it’s also hiring the best people. You have to find those people with the best cultural fit - something which I think Entain has been really good at! I think we have passionate people, the best in the industry. And we have team members who are really passionate about our business and technology. Technology is all about what it can do to the player experience, how it
8 SBC LEADERS • AUGUST 2021
TECHNOLOGY IS ALL ABOUT WHAT IT CAN DO TO THE PLAYER EXPERIENCE, HOW IT GENERATES EXCITEMENT AND EVEN THE SOCIAL ELEMENTS THAT IT CREATES
generates excitement and even the social elements that it creates. For customers that I speak to, whether it’s the lady playing bingo in her spare time, or the semi-professional poker player, they highlight the social elements. SBC: Entain is the biggest operator in the UK, which is currently going through a review of the Gambling Act. What role can Entain play in speaking to regulators and politicians? JNA: I think it’s so important that we as an industry, and certainly us at Entain, are supportive of regulation - which we are. But we’re also engaging in real dialogue with the regulator. If you look back over the years, the relationships may not have been so cooperative. But my aim is that we are cooperative and have positive engagement with our regulators. A key thing for us is that we’re able to share with the regulator what we’re doing to improve safety because we fully support balanced regulation. Regulation should be there to protect the very few individuals that come in harm’s way. We are protecting the individuals that get into trouble. We should not be imposing draconian measures for everyone; the worst thing we can do is view legislation as a onesize-fits-all system. You and I need to be treated differently, our needs are different and we need different support mechanisms. Our biggest role here is to really engage with the regulators, talk to them not only about what we’re doing today, but also how we see the future. We need to discuss how technology can actually help build a platform which protects our players. We don’t want to take money from any players that cannot afford it. Instead, we’re all about building long-term relationships with customers. That’s what a sustainable company does. SBC: Entain has so many different CSR and player protection initiatives at the moment - including ARC and then the Entain Foundation. How important is it to be seen to be doing these things, as well as actually doing them? JNA: It is very important! It’s obviously important for the politicians and the regulators, but it’s much more important for our customers and employees. And it’s expected of us by our shareholders. When we did our last employee survey,
SPORTS BETTING
more than 80% of our colleagues said that they were really proud of what Entain is doing. It’s about putting customers first as well as how we’re building a sustainable company. Last November, we launched our new Sustainability Charter which talks about CSR and player protection – being fully regulated, building our foundation and we’re really putting our money where our mouth is. Every one of my colleagues, myself included, has a 15% of their bonus entitlement measured on responsible gambling. I think we may be the only company which does this, ensuring everyone is incentivised to help deliver our safer gambling strategy. So it’s really important that we’re not just talking the talk, but also walking the walk and
WE DEFINITELY HAVE OUR EYE ON THE PRIZE AND WE’RE DELIVERING THE STRONGEST IGAMING PRODUCTS AND AN EXCITING SPORTSBOOK TOO communicating what we’re doing. SBC: Looking at the US, how do you see that market developing? JNA: We’re hugely excited about the opportunities in the United States. We are now live in 12 states, so that just tells you that it’s still early days. We are taking a leadership position - overall, we are number two in market share. And with our gaming offering, where we are only live in four states, we are a very
clear number one. We’re following all the states as they regulate, truly understanding what it takes to enter each individual state while also understanding the variances in legislation - because all state regulations are different. That does make things more complicated, but it is also where our platform shows its strength. With our game studios, we actually produce our own exclusive content for the US markets which has proven to be extremely successful. That has been a part of the reason why we are now going to double our investments into producing exclusive content. The US is built on our global Entain platform and I’m equally excited about the significant opportunities we have for our business outside of the US. We are leaders in 27 markets and are actively looking to expand into other markets either organically, like Colombia, or through M&A, as we have done in Portugal and across the Baltics SBC: And do you think that the rollout of sports betting in the US has made regulators a little less scared about igaming? JNA: It will take time; the process is much slower around gaming. I think there are only five or six states at this point which have regulated - or are currently regulating - igaming. But if you look at the opportunities around igaming, it is of course huge! You could also say there is a definite economic motivation for states to legalise igaming. Look at New Jersey and Michigan! The more success we’re seeing in the states that are opening up, the more likely that other states will follow. But we do have to remember that it is also much more complex because there are many more stakeholders. It’s not just the regulator and legislator, there are the tribal communities and the existing land based operators. So in that sense, I do think the regulation of igaming will certainly be slower than sports betting. We definitely have our eye on the prize and we’re delivering the strongest igaming products and an exciting sportsbook too. So we are really looking forward to seeing more and more states legalise in the coming years! •
sbcmagazine.com 9
A game changer
WARREN MURPHY: SCALING UP SPORTRADAR’S SOCCER OFFERING WARREN MURPHY, MANAGING DIRECTOR OF BETTING AND GAMING AT SPORTRADAR, speaks
to SBC Leaders about the company’s decision to automate Live Odds trading and the benefits this can bring to Sportradar’s partners BY ERIN GALLAGHER
SBC: Thank you so much for speaking with us! What plans does Sportradar have for the start of the soccer season? WM: The domestic season gets underway this coming weekend but for soccer fans like me, it’s been one of those summers where we’ve been blessed with back-to-back tournaments. We’ve enjoyed the highs and lows of the Euros, the Copa America, the Gold Cup and most recently the Tokyo Olympics showpiece. It’s the perfect example of the game’s global popularity. Unsurprisingly, from a sports betting perspective, it’s the biggest revenue generator for operators. And, what’s more, the appetite for soccer content amongst fans continues to grow, hence why we are continually expanding our market-leading soccer offering. We have an exceptionally talented trading team here at Sportradar, working 24/7 to deliver soccer content from across the globe. To do so requires an incredible amount of resources. To give you an idea, producing Live Odds for 80,000 soccer matches a year requires a minimum of 30,000 trading hours per annum. In order to scale up our soccer offering ahead of the new season and
10 SBC LEADERS • AUGUST 2021
THE APPETITE FOR SOCCER CONTENT AMONGST FANS CONTINUES TO GROW, HENCE WHY WE ARE CONTINUALLY EXPANDING OUR MARKET-LEADING SOCCER OFFERING provide comprehensive coverage for an ever-growing list of competitions and tournaments; we’re automating the trading of Live Odds on soccer matches. This will significantly increase the amount of soccer available to our operators and go some way to satisfying consumer demand, whilst also improving product quality. SBC: What effect will this have on
Sportradar, its customers and the market more broadly? WM: Our engineers have been developing this technology in-house for the last two years. At the start of the process our aim was to double the amount of soccer coverage we were able to offer our operators. To put this into context, our traders were providing coverage of up to four matches at one time.
SPORTS BETTING
IT’S BEEN ONE OF THOSE SUMMERS WHERE WE’VE BEEN BLESSED WITH BACK-TO-BACK TOURNAMENTS
Following a series of successful trials, the automation process has more than tripled our efficiency rate and provides us with the ability to trade more matches concurrently, all the while maintaining the same number of staff within our trading team. It’s a game changer for us. Given the volume of fixtures per season, soccer is by far the most resource intensive sport for us to cover, so introducing
these automated processes will alleviate some of the pressure on our trading team. We can reallocate the resource into broadening our sports coverage or scaling coverage for sports that are currently under-served. For example, our traders can now develop their knowledge of cricket and kabaddi in order to advance the quality of Live Odds that we provide for those sports.
It’s a development opportunity for our staff as we look to align our sports coverage with the company’s wider strategic aims. From an operator perspective it’s simple – they can book more matches. The automated processes will help them scale up their soccer offering and satisfy consumer demand. And, with more than 700 million accepted bets in soccer during Q1, it’s clear
sbcmagazine.com 11
A game changer
that increasing the number of soccer matches available to operators will provide them with significant commercial benefits. The result for the market more broadly will be increased choice. Given the volume of matches we can cover, there will be an increase in the number of soccer matches that fans can engage with, while there will be a greater range of sports events for punters to engage with as we broaden our Live Odds coverage. SBC: How will the automated processes work alongside your trading team? WM: While automating the production process for Live Odds soccer matches will provide significant benefit to Sportradar, soccer is just one of 83 sports we offer and represents a portion of the 750,000 matches annually that the trading team covers. Some sports are more challenging to model and automate than others. For example, sports that include more periods of play, such as basketball, require more input. With basketball the model needs adjusting for markets such as full time total and handicap, but there are multiple quarter / halftime markets that need addressing as well. Additionally, for some sports there
12 SBC LEADERS • AUGUST 2021
SPORTS BETTING
just isn’t the volume of matches each year to warrant the automation process, like American football which hosts 272 matches a season. Compare that to soccer where you have 380 matches played in the English topflight alone – then consider there are four leagues below that and factor in the number of countries that have a professional league or association. The number is huge.
FOR OUR OPERATORS THIS MEANS THAT THERE IS EVEN GREATER ACCURACY AND MORE TIME TO ENGAGE WITH CUSTOMERS Our trading team is now more vital than ever. Their expertise in data and their perspective on quality is vital as they have purview of the wholesale production of our Live Odds offering and can ensure that the quality of the output is in line with the standards we have established over the years. SBC: Have you been able to maintain the quality of the Live Odds offering under these new processes? WM: While we’ve seen the obvious benefits from an efficiency point of
view, for example doubling the number of soccer matches we provide Live Odds for, we’ve also managed to maintain the high quality our operators have come to expect from us. Our already industry-leading error rates have dropped by a further 64%, whilst suspension time has fallen by 27%. For our operators this means that there is even greater accuracy and more time to engage with customers, enabling them to improve their margins and increase their turnover. SBC: What does the future hold for automated odds modelling? Do you plan to roll it out across other sports? WM: It’s an exciting technology that we’re utilising to add value to our clients’ sportsbooks. In the immediate term our focus is very much on soccer. We’re currently automating the trading of Live Odds on 40%+ of our soccer output. The aim is to apply it to more soccer matches, so we can cover the vast number of leagues and competitions worldwide. It will really help with that heavy lifting. And, in the longer term, the aim is to apply this technology to more sports. Sports for which there is a high volume of output, like basketball, tennis and table tennis. •
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Major milestones
NOVIBET: DRIVING NEW GROWTH WITHIN THE GLOBAL GAMETECH INDUSTRY AS WE ENTER THE SECOND HALF OF 2021, Novibet reflects
on some of the company’s major milestones from this year, including the move to Microsoft Azure BY ERIN GALLAGHER
N
ovibet has been operating in the online entertainment industry for more than a decade, employing more than 420 qualified professionals who have been the cornerstone of the brand’s success. With state-of-the-art products and services and its proprietary award-winning technology platform and mobile application, Novibet has been competing among the leading entertainment providers, constantly gaining ground in players’ preferences, across all markets of operation. Our recent landmark partnership with Microsoft, one of the world's top technology companies, has been a clear demonstration of Novibet's commitment to providing a superior entertainment experience as we continue to adjust smoothly to the new digital age. Our target for moving to Microsoft Azure was twofold. First, we wanted to address the more pressing needs of adjusting to the growth we were experiencing, as at some point, it was clear that we had outgrown our infrastructure in our shared datacenter.
WE HAVE PEACE OF MIND IN TERMS OF PLATFORM STABILITY WITH RECORD KPIS AND SERVICE LEVEL OBJECTIVES
14 SBC LEADERS • AUGUST 2021
Secondly, as we were looking at the future, we wanted to have exactly this kind of flexibility we are currently enjoying and to be able to spin out different environments in a completely automated way and have the infrastructure work for us and not the other way around. This is exactly what we have achieved with our move to Azure.
WE ARE QUICKER TO GROW. WE ARE QUICKER TO SCALE UP OR SCALE OUT What we’ve seen is exponential growth. The amount of growth that we have seen is really significant. Furthermore, we have peace of mind in terms of platform stability with record KPIs and service level
objectives. Also, the most important thing for our DevOps teams, is the visibility of the whole technology stack, something that we did not have before moving to Azure. So now we have a complete visibility of the network stack, of hardware resources, of practically everything. And that enabled us to be entirely aware of everything that is going on in our platform, giving us confidence for our dayto-day operations, as well as for our long term plans. Not to mention the optimisation of our reaction time on different client demands. We are quicker to grow. We are quicker to scale up or scale out. Moving to Azure was definitely a big milestone for the company as a whole. It was very well received, and the benefits of this migration were acknowledged immediately by everyone. For our end users, everything was transparent and seamless, and at the end of the day, they were able to enjoy faster and more reliable
SPORTS BETTING
OUR TARGET FOR MOVING TO MICROSOFT AZURE WAS TWOFOLD
sbcmagazine.com 15
Major milestones
NOVIBET’S STRATEGIC INVESTMENT IN INNOVATION HAS PROVED THAT OUR STRATEGY CAN FORM PIONEERING PRODUCTS services, which obviously contributes to the better user experience that we’re always aiming towards at Novibet. One of the challenges that we came up against when moving to Azure was that we were doing everything live in the sense that we had operations. We were transferring stuff and we kept everything transparent for our users. So, judging by the end result it was definitely a huge success story. The participation of Microsoft was really important and the local presence of the Microsoft team, their knowledge and their active participation were really pivotal for the success of this project.
International awards for Novibet Novibet’s strategic investment in innovation has proved that our
16 SBC LEADERS • AUGUST 2021
SPORTS BETTING
strategy can form pioneering products, which have earned the recognition of international institutions. We recently received a new international distinction for “Innovation in Casino”, which was given in recognition of our innovative and personalised casino entertainment offer. The awardwinning communication campaign for the casino product, under the key message ‘Endless possibilities at your fingertips’, was designed and developed based on a qualitative analysis of customers’ special preferences and was enhanced with a variety of activations and reward plans. This latest recognition follows last year's consecutive awards, among which the greatest award for “Best Mobile Operator App” at the
NOVIBET IS NOT JUST A TECHNOLOGY AND ENTERTAINMENT FIRM, BUT A SOCIALLY RESPONSIBLE STAKEHOLDER
prestigious SBC Awards 2020, which rewarded Novibet’s technological excellence.
Responsible stakeholder along with Giannis Antetokounmpo 2021 has definitely been a milestone year for Novibet for a number of reasons. One of the landmarks from this year definitely has to be our meaningful CSR partnership with the ultimate basketball player and MVP, Giannis Antetokounmpo. The collaboration with Antetokounmpo first started in May 2021, through the Corporate Responsibility program The GiANT Heart, confirming that Novibet is not just a technology and entertainment firm, but a socially-responsible stakeholder. Aiming to substantially support vulnerable social groups in multiple ways, Antetokounmpo joined forces with Novibet in an 'MVP Love Alliance’ to implement a series of targeted actions based on the values of social contribution, hope and second chance that will significantly support local communities of Greece, which is Giannis’ birthplace. •
JOIN FORCES FOR A GOOD CAUSE
GIANNIS ANTETOKOUNMPO & NOVIBET
The GiANT Heart Α CSR intiative for Greece, with great social impact
18+ | BeGambleAware.org
Open for business
CANADA: HOW ONTARIO IS BRINGING THE SPORTS BETTING INDUSTRY ‘INTO THE LIGHT’ AFTER 11 LONG YEARS OF WAITING, the passage of Bill
C-218 in the Canadian Senate will pave the way for sportsbook operators to work with provincial partners across the Great White North - but what can we expect from the market in years to come?
BY ERIN GALLAGHER
I
n a roundtable discussion for SBC Leaders, Jordan Gnat, CEO of PlayMaker, Terry Debono, Partner at the Debono Group, and John Levy, CEO and Founder of theScore, assess the ways in which market entrants can persuade bettors to choose licensed operators over the offshore companies that they've grown accustomed to using. Kicking off discussions, Gnat believes that operators must be given a competitive advantage over any unlicensed companies - with favourable regulations ensuring that players opt for the legal option. He began: “Bettors have been betting online in Canada for decades. Bill C-218’s passage now moves this activity into the regulated market. To channel existing bettors into the regulated market, the regulations have to be such that the product offering and customer experience and marketing tools of the regulated operators is competitive with what they have had previously.
IF THE REGULATED MARKET MEANS THEIR EXPERIENCE IS INFERIOR, THEY WILL SIMPLY CONTINUE WITH THE UNREGULATED OPERATOR
18 SBC LEADERS • AUGUST 2021
“Players are accustomed to an offering - if the regulated market means their experience is inferior, they will simply continue with the unregulated operator. However, in general, people will choose a legal versus an illegal option, everything being equal. “For me, this is the single most important thing to get right in the roll out of the newly regulated market. This means allowing all bet types, marketing tools, liquidity for poker and exchanges, novelty bets, casino and bingo games. A full suite of products and services.”
For Levy, theScore will persuade bettors to choose licensed operators by deploying the same strategy it already uses in the US market. He said: “Our basic underlying philosophy of how to approach sports betting is really to treat it as one aspect of why people love sports. “It’s all about an integrated approach between the media - which we have with theScore app - and introducing sports betting in an infused fashion. It should be a combined experience, and to be able to effectively do that is at our core. People tend to label us as a digital sports media company, but first and foremost, we’re a technology company. “Quite frankly, the success we’ve had with the app and with ScoreBet is because of our focus on the end user and creating this bespoke technology. Ultimately, our end goal has always been to own and control that platform.”
US MARKET
Jordan Gnat, CEO of PlayMaker
John Levy, CEO and Founder of theScore
Ontario, a state which accounts for almost 40% of the Canadian population, has quickly taken the lead in the race to permit sports betting - having initially launched its igaming consultation last April. Levy explained that while Ontario has been “out in front”, theScore team has been helping to move the legislative process along. “By the nature of what the Ontario government is promoting, it’s an open environment so to speak they’re encouraging competition,” he continued. “So even if grey market operators get their act together, they can apply for a licence and it’ll be a level playing field. We’re really looking forward to it. Ontario is our home turf, we were born and raised here. We had our TV network here. The brand is recognised in the US, but we’re Canadian at heart.” For Debono, one of the key challenges for operators looking to enter the Ontario market comes in the form of the taxation system - something which is yet to be formalised by the regulatory authorities. He noted: “Looking at Canada,
there is a quest for knowledge which doesn’t seem to end. There’s a lot of conflicting agendas and circumstances, but one thing for certain is that there is a significant pent up demand for online gaming and sportsbooks. “Ontario is taking the leadership in moving from a monopoly-focused regime to a licensed and “revenue share regime” (yes it’s a tax – but for legal reasons in Ontario we have to call it a revenue share). Until the actual revenue share model is finalised (one tax rate or two tiers of tax rates, or a tax rate based on the amount invested by the operator in the market), it will be challenging for operators to finalise their commitment to entering the Ontario Market. “The next thing for operators to consider is the competition from the Ontario Lottery monopoly, which will have certain advantages because of
LOOKING AT CANADA, THERE IS A QUEST FOR KNOWLEDGE WHICH DOESN’T SEEM TO END
THE FIRST BATTLEGROUND WILL BE THE JURISDICTION. ONTARIO WILL DETERMINE THE LEADER IN THE MARKET their point of sale and established presence in the online gaming marketplace (and their ability to have shared liquidity with some of the other Canadian Provincial Lotteries). “The chances are, however, that the OLG will be relatively slow to innovate in the online gaming industry in comparison to the private sector. The issue then becomes the high cost of customer acquisition and retention.” As more provinces begin to embrace sports betting regulations, Gnat views jurisdiction, user experience and promotions as key battlegrounds. He said: “The first battleground will be the jurisdiction. Ontario will determine the leader in the market. There will always be regional players, but Ontario will be key to building the foundation of a full Canadian market. “The second will be the user experience (UX). International
sbcmagazine.com 19
Open for business
operators have been in Canada for years and the existing bettors are used to it. The mass market, the casual bettors, those currently making parlay bets, are not used to it. “We have seen in the US that a UX focused on the casual consumer can have a very meaningful impact. That will be a key differentiator. Lastly, promotions. That sounds simple everyone has them - but those who bother to understand how Canadians are different from Americans will have an edge.” Gnat pointed towards a number of lessons that Canada can learn from the US market, the first of which should be the introduction of a common regulatory framework.
He added: “Having a common regulatory framework across the country (or very close) allows for a better fan experience. Secondly, launch all products at the same time. Players are used to an offering today and it must be the same if the government wants to channel as much of the grey market as possible into the regulated market.” Echoing Debono’s reference to the Canadian tax system, Gnat warned Canadian regulators to consider a fair taxation system - something which, if too high, can reduce channelisation rates.
20 SBC LEADERS • AUGUST 2021
US MARKET
THIS INDUSTRY, WHICH HAS EXISTED FOR DECADES IN THE SHADOWS, WILL NOW COME INTO THE LIGHT IN A REGULATED AND SAFE WAY FOR PLAYERS TO ENJOY “If the tax rate is too high, like Pennsylvania, the market will not be optimal and the grey market will thrive,” he continued. “Fourth, an open market with unlimited licences is the best solution for consumers. The US has created artificial markets with limited licences and market access agreements. An open market allows operators to offer better, more competitive pricing and higher value to players.” The need for a common regulatory framework was a point echoed by Debono who warned of potentially
onerous restrictions being imposed at a later date. He said: “As it stands, we’re starting in Ontario with no hard rules, just recommendations. The issue with this is, if there are no restrictions from the beginning, when these measures are eventually introduced (and they will be), they’ll be draconian.”
ONLINE GAMING IN ONTARIO WILL SOON BE OPEN FOR BUSINESS. ON YOUR MARKS. GET SET. GO
Rounding off discussions, the trio was quizzed on what lies ahead for the Canadian market, with each stakeholder highlighting that the country has huge potential. Gnat said: “Canada has historically punched above its weight in internet activities, and online gambling is no exception. This will be a material market for operators globally. We need to remember that this market exists today, it is just not regulated, much the same as marijuana before legalisation. How big will it get? It will be measured in the billions. “The impact and general economic activity will be measured in the tens of billions. Most importantly, this industry, that has existed for decades in the shadows, will now come into the light in a regulated and safe way for players to enjoy.” For Levy, there is going to be considerable levels of competition in the Canadian market as more operators eye up the growing opportunities. He added: “Everybody's going to come in and it's going to be very competitive. Obviously, I think we have a huge advantage up here, because of who we are, what we are and the relationship we have. But we're not resting on our laurels. “At theScore, we’re focusing on building an amazing product and making sure that the consumer is at the centre of everything.” Debono concluded: “The story of the Canadian gaming market is going to evolve for years to come, and there will be winners and losers. The winners are going to be those who can provide a better product to their customers, who can genuinely deal with responsible gaming issues, who can contribute to the local economy and who can also survive the exuberance of the first few years of high costs of customer acquisition. “Online Gambling’s success in Canada will be dependent on how we evolve from a nascent to a mature market. Online Gaming in Ontario will soon be open for business. On your marks. Get set. Go!” •
NOV 30 - DEC 2, 2021 MEADOWLANDS EXPOSITION CENTER, NEW JERSEY
THE LEADING
SPORTS BETTING & IGAMING EVENT IN NORTH AMERICA 2,500+ Delegates
200
Speakers
50
Exhibitors
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FOR MORE INFORMATION PLEASE VISIT SBCEVENTS.COM
Opportunity under every stone
IS THE US PRIMED AND READY FOR AN IGAMING GOLD RUSH? US STATE POLICY MAKERS are increasingly cognisant of the potential to drive significant new revenue streams from igaming. But is it going to be the gold rush they hope for? And where will the product innovation come from?
BY CHRIS MURPHY
T
he market potential for igaming in the US was the subject of debate at SBC’s recent CasinoBeats Summit. A panel of industry experts, gathered to speak as part of a packed agenda sponsored by Scientific Games, was tasked with answering the burning question: is the US primed for a new gold rush? James Myles, Analyst at Eta Delta and moderator for the Microgamesponsored session, put the question to Adam Noble, Co-Founder and Chief Business Development Officer at Playstar Casino. “I’m not sure whether it’s primed for the next gold rush or whether we’re right in the middle of it,” he responded. “You mentioned New Jersey, Pennsylvania, Michigan - the two latter markets have been live for a relatively short time in the online casino world and are two of the largest, or soon to be largest markets, globally. So it’s just a couple of states that we are talking about. By the time you add another 10, 15, 20 states to
I’M NOT SURE WHETHER IT’S PRIMED FOR THE NEXT GOLD RUSH OR WHETHER WE’RE RIGHT IN THE MIDDLE OF IT
22 SBC LEADERS • AUGUST 2021
that equation, absolutely that will be a gold rush.” On the potential for new incumbents, he added: “From budding operators, suppliers and affiliates and so forth that are looking to get across and take advantage of that gold rush there’s opportunity under every stone that you lift. From our perspective as an operator we see huge potential to come into that market. “There are several big brands that are establishing positions in that market at the moment, but we believe that there’s opportunity to come in
James Myles
Adam Noble
US MARKET
WHEREVER IT’S ‘LAND FIRST’, IT WILL FOLLOW ONLINE and still find plenty of gold between those cracks. The answer to the question is a resounding yes.” Fintan Costello, Managing Director of BonusFinder.com, was equally bullish about the prospects for a burgeoning US igaming sector. He noted: “The short answer is yes - it’s automatic growth as more and more states pass igaming laws. A tiny fraction of the US population has access to legal online casino. It’s just natural organic growth.” He added: “I think where the stumbling blocks could be is things around how many licences are going to be issued in a particular state, what kind of restrictions are going to be put in place, what tax rates. It’s not a given. “If you take the difference between West Virginia versus New Jersey in terms of how many licences are being issued for example, or Pennsylvania tax rates. But even with the tax rates that had a lot of negative press - when you start looking at the numbers that are coming out of Pennsylvania it’s probably not as bad as people think. But I think ultimately over the long run, if we look at the next decade, absolutely.” Benjamin Truman, Co-founder and CEO of Media Troopers, adopted a more cautionary tone, suggesting that the US is at a very early stage in the development of igaming. “It’s going to take a while,” he said. “The states are looking at it. Every single state sees what’s going on in New Jersey and Pennsylvania, even a state like West Virginia with about only one million people has pretty strong numbers. It’s going to take a while though. Wherever it’s ‘land first’ it will follow online, and the US is very much ‘2000 UK’, it’s very young - it’s still long term to grow. “It will take a while for this market
Fintan Costello
Benjamin Truman
WE BELIEVE THAT THERE’S OPPORTUNITY TO COME IN AND STILL FIND PLENTY OF GOLD BETWEEN THOSE CRACKS
sbcmagazine.com 23
Opportunity under every stone
to mature and people like Adam have a great chance. Anybody who is small coming in with a good product will succeed in the US and that’s what we see now.” When pushed on who will make money from igaming, Truman answered: “The people making money right now are the people that aren’t necessarily throwing money at the TV. You have your FanDuels and DraftKings which obviously led the way in New Jersey with market access very quickly. It’s the guys that are doing this very slow, very methodically your Golden Nuggets. It’ll take a while. The US, remember, is a seven trillion (dollar) black market. It’s just slowly going white.” As the unfolding sports betting market has clearly shown, operators and suppliers have been faced with a piecemeal approach to the US with legislation being passed on a stateby-state basis. Moderator Myles posed the question: will it be 50 completely different markets for the igaming sector? Noble responded: “A lot of the conversation in Europe talks about the
24 SBC LEADERS • AUGUST 2021
I THINK AS EUROPEANS WE ARE UNDERESTIMATING THE US TECH AND VC ECOSYSTEM US being the next gold rush, or is it the next gold rush primed and waiting to happen. Well yes it is collectively but then you’ve got to look at it as a bunch of different minds. They’re (states) all opening up at different times with different regulations, with different sizes, with different people. “So yes, you view it as the whole, but really it’s Europe 20 years ago with a bunch of differences between each state that you’re going into - a bunch of differences in the regulation. And, you know, when you launch in those states, arguably a product that works for you in one state isn’t necessarily going to work for you in another. So you need to be cognisant of the
I ACTUALLY SEE A LOT OF INNOVATION COMING FROM THE GRASSROOTS UP
US MARKET
differences right across every state. Just to say it’s the US is probably the wrong way to approach it. The panel session also addressed product innovation, with Costello telling delegates that he sees a more homegrown approach. “I think as Europeans we are underestimating the US tech and VC ecosystem which is completely different to what we’re used to over here (Europe).” Referring to US startups - the “classic really smart guys working in a garage” - he noted: “I’ve spoken to eight of those companies so far this year. And each of them have got some really, really cool stuff. And they’re very quickly - through their funding - being put in touch with some of the big land-based operators. “I actually see a lot of it (innovation) coming from the grassroots up, and my feeling for a lot of the more traditional brands - the suppliers that we’re familiar with - they’ll be too slow to innovate in an American way and provide a product that Americans actually want. My money is on a few guys we’ve never heard of doing amazing stuff.” •
A global brand story
LATAM
RUPINDER SINGH: CLOSING THE GAP IN LATIN AMERICAN PAYMENTS RUPINDER SINGH, SVP CONSUMER, DIGITAL WALLETS AT PAYSAFE,
discusses why the pandemic has created an irrevocable shift in consumers’ thinking BY LUCIA MOURIÑO
L
ockdowns and shelter-inplace orders have led to an unsurprising shift away from land-based casino gaming and retail sportsbooks as well as cash and in-person payments - all of which have been replaced by a rising demand for online gaming and digital payment solutions. In mid-April, Skrill announced Argentine football player Paulo Dybala as its new brand ambassador in a two-year contract. Speaking to SBC Leaders, Singh discussed this collaboration and how sponsorship deals are helping the digital payments industry to expand in Latin America, a region that is still highly focused on traditional methods. “Our presence in Latin America has always been an important part of our global brand story,” Singh said as he highlighted Argentina, Colombia and Mexico as significant markets where Skrill continues to see opportunities. The partnership with Dybala seeks to strengthen Skrill’s overall global presence, especially given his reach and impact as an international football star whose name is recognised around the world. Singh added: “As a brand ambassador, Dybala reflects Skrill’s core values around the speed of delivery and our focus on providing a world-class service. We are looking forward to sharing the many benefits of Skrill with football fans worldwide.”
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A global brand story
In recent months, a number of major brands have penned different types of brand ambassadorial agreements with top-tier athletes in a bid to expand their reach to new demographics. Dybala is currently one of the most valuable players in the world and one of the biggest celebrities in Argentina and Latin America. It should therefore come as no surprise that Skrill wanted to partner with him. Singh stressed that “he’s not only popular there, but also in Italy and throughout Asia,” so he “appeals to a younger generation who spend more time online or on their phone and who are looking for new ways to manage their money digitally”. He continued: “Skrill has had a number of successful partnerships in the football world. As an international brand, we focus a significant amount of our marketing efforts in establishing partnerships that extend globally.”
DYBALA REFLECTS SKRILL’S CORE VALUES AROUND THE SPEED OF DELIVERY AND OUR FOCUS ON WORLD-CLASS SERVICE In addition to this agreement with Dybala, in March 2021 Skrill became an Official Partner of UK Premier League team Leeds United, and was also named Official Global Payments Partner of A.C. Milan in 2020. Singh explained that delivering a service which offers an allencompassing payment portfolio is one of the main pillars of Skrill’s current approach. Ultimately, he clarified, these types of partnerships are about meeting people and connecting them with localised payment options that they are both familiar with and trust. “We’re excited to see how the campaign resonates with football fans and sports bettors, especially in Latin America where Dybala’s impact is prominent.” When announcing the collaboration, Skrill commented that this agreement will help them share the many benefits that the brand offers, such as managing money on the move. But, in the great scheme of things, how important is the football industry in the digital payments industry?
26 SBC LEADERS • AUGUST 2021
Singh believes that there are several benefits given the sport’s global reach and impact, especially considering that football is embedded within the cultural identity of Latin America and Europe. Furthermore, the Prepaid Mastercard in Europe and Prepaid Visa Card in the United States are highly popular
among sports fans, many of whom wager at online sportsbooks. “We see this as an effective way of reaching and engaging with them,” said the SVP. “Our sponsorship deals encompass highly targeted and effective ways of highlighting how easy, efficient, and cost effective it is to use Skrill as a payment method every day.”
LATAM
The challenge of taking a step towards the digital world Payment solutions have helped the gambling industry with the convergence between physical and online operations. This is increasingly apparent in countries where the online industry was taking its first steps or was in the crucial development stages. Thus, the bottom line is to develop and improve a platform that completely closes the gap between these two verticals and contributes to making online payments the preferred option for online bettors. When it comes to sports betting, placing a bet online has many advantages. Skrill enables customers to place a bet instantaneously and seamlessly move from one event to the next and cash out winnings in real-time. This all occurs without the need to be present within a physical sportsbook. However, traditional payments - specifically cash - will always have a place when it comes to payments. According to Singh, the broader discussion is: How do we effectively create a platform that embraces this nuance whilst bridging the digital divide and reassuring consumers that digital solutions can be both modern and simple? The answer is that rather than cashfree, the future is more likely to involve online payment methods – credit and debit cards, digital wallets and online cash or eCash – existing alongside in-person payments, with contactless cards, digital and mobile wallets and even cash. “A frictionless omnichannel payment experience for consumers will be key to closing this gap,” he said.
Key elements when developing products Flexibility seems like one of the pillars of digital payment companies when branding their products. Besides that, there are other functionalities that need to be effective and seamless in order to make these kinds of services attractive for a region that is known for being attached to traditional payment methods. “When it comes to product development, our primary consideration is to provide a solution that meets the varied and nuanced needs of players and operators,” he said.
A FRICTIONLESS OMNICHANNEL PAYMENT EXPERIENCE FOR CONSUMERS WILL BE KEY TO CLOSING THIS GAP “We understand from our recent research that sports bettors are prioritising streamlined online payments, and payouts in particular, over all other factors (odds, sports markets, promotions offered) when choosing a sportsbook.” Beyond flexibility and the demand for frictionless payment methods, players want to know which operators
the digital wallet is integrated with and be sure the solution is secure: “Through our partnership with Dybala, we’re promoting the Skrill Prepaid Mastercard, which gives users flexibility, security and privacy when spending their money,” said Singh. In addition to the Prepaid Mastercard, Skrill also offers a multicurrency digital wallet with a number of available services, such as Skrill Money Transfer, which enables
IT’S IMPORTANT THAT WE ALWAYS REMAIN COMPLIANT WITH REGULATORS AND LOCAL LAWMAKERS
users to send money to friends and family internationally, as well as the option to buy and sell interests in cryptocurrencies.
The future of the sector in Latin America When discussing the main obstacles and challenges that arise when trying to expand a business in Latin America, Singh noted that one of the more imminent ones stems from the need to continually adapt to and anticipate the changing needs of consumers and operators throughout the region. “Similar to the topography of Latin America, consumer behaviours are diverse and have the ability to evolve
within a short period of time,” he said. To conclude, Singh stressed that understanding both broadly and on a granular level what the market needs from a payments perspective is an area that Skrill focuses on strongly. “Additionally, each market adheres to its own regulatory framework, so it’s important that we always remain compliant with regulators and local lawmakers,” he added. And just as Dybala highlighted the flexibility that Skrill offers for people who are “always on the go,” being one step ahead to foresee the next consumer preferences will be one of the keys to expanding the sector and eventually becoming the go-to company in the region. •
sbcmagazine.com 27
27-28 OCT 2021
JW MARRIOTT MARQUIS MIAMI
LATIN AMERICA’S
SENIOR EXECUTIVE BETTING AND GAMING SUMMIT
750
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100
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25
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Mobile gaming’s US momentum
CASINO
IS THE US HEADING FOR A MOBILE VERSUS LAND-BASED BATTLE? THE NOTION OF IGAMING BEING THE NEXT BIG GOLD RUSH for US gambling
is one that is quickly becoming well trodden. However, in equal measure, it continues to captivate many as numerous conversations continue amid an array of industry incumbents vying for position in the handful of legal states
BY CRAIG DAVIES
D
espite being met with much scepticism at certain stages, the growth of online casinos throughout those legal regions is one that certainly cannot be argued against, with it being a question of when, and where, will the next drives for legalisation come to fruition. The uncertainty of the last 16 months or so has certainly done no harm to the digital charge, with land-based entities shuttered and quickly striving to either establish, or enhance, an online presence. This is backed up by recent
comments by the American Gaming Association, which said that the COVID-19 pandemic has had a significant impact on the US commercial gaming ecosystem, with the “enormous challenges” bringing “significant changes”. “The gaming industry faced enormous challenges in 2020 – and we also saw significant changes, as player
THE LEGALISATION OF ONLINE GAMBLING ACROSS THE US WILL HAVE AN ENORMOUS IMPACT ON THE COUNTRY’S LAND-BASED CASINO SPACE
demographics shifted and emerging verticals saw strong growth,” the Association's CEO Bill Miller reiterated. Alongside a rise in online gaming comes an accompanying surge in mobile play, a topic of conversation that united numerous speakers at the recent CasinoBeats Summit as representing the future of the industry. However, with all of this mind, how will the rise of mobile gaming across the US impact the country’s land-based casino space? And what impact will the numerous stay-at-home mandates have? Troy Zurawski, CEO of Design Works Gaming, begins by suggesting that this does not have to spell the beginning of the end for land-based entities,
sbcmagazine.com 29
Mobile gaming’s US momentum
which could view these developments as an opportunity as opposed to a hindrance. “The legalisation of online gambling across the US will have an enormous impact on the country’s land-based casino space. “First, it will have an impact on how often current land-based players go to casinos. If a casino offers an option for a player to continue playing from home, many will take that option. “This does not have to be a negative for that casino; leaning into the vast new opportunities to engage with players is the right way to go. “Next, it will provide an opportunity for casinos to interact with players who previously may not have stepped foot on the physical property. For the land-based casinos, this provides an opportunity to increase the player base tied to its brand.” A viewpoint shared by Kent Young, president and CEO of Spin Games, whose buyout by Bragg Gaming Group is expected to be completed during this year’s final quarter, who asserts that online should be seen as an additional service rather than a competing one. “Since the COVID-19 pandemic forced a shut-down of land-based casino operations, and then resulted in numerous operational restrictions like social distancing, capacity reductions and shorter hours, the North America
THE STRONG INTEREST IN ONLINE WAGERING IS CONTINUING AND REPRESENTS AN EXCITING OPPORTUNITY gaming market has seen a rapid increase in online gaming interest from states where land-based casinos are not allowed to offer igaming, especially as ‘stay at home’ mandates had a positive impact on online revenue with some markets seeing up to a thirty percent increase. “Over the past year, numerous landbased gaming states including Nevada have begun exploring legislation, while states like Connecticut have passed laws that permit igaming as an additional wagering and state revenue opportunity.
30 SBC LEADERS • AUGUST 2021
Troy Zurawski, CEO of Design Works Gaming
Kent Young, president and CEO of Spin Games
CASINO
“These efforts are in part due to online gaming being seen as an additive service to bricks and mortar operations rather than as one that cannibalizes traditional play. “Land-based gaming appears to be quickly recovering from the COVID closures and restrictions as players are eager to return to traditional casino services, but the strong interest in online wagering is continuing and represents an exciting opportunity for online gaming companies. “As one of North America’s first approved online technology and content providers, we are pleased to be at the forefront of igaming expansion.” With the overwhelming message being on a wholly union, Kent moves on to look at if the online and landbased ecosystems can work together to ensure collective success, and what this could potentially look like. “Because online and land-based gaming services are complementary and often serve the same patrons, it’s optimal for them to work together to support the growth and sustainability of each gaming industry vertical. “This structure provides for cross marketing opportunities which have
shown great success in markets such as New Jersey, Michigan and Pennsylvania. The market is beginning to see omni-channel product releases, whereby gaming products are being launched in the land-based and igaming segments simultaneously, and we expect to see more of this in the future.
IT’S OPTIMAL FOR THEM TO WORK TOGETHER TO SUPPORT THE GROWTH AND SUSTAINABILITY OF EACH GAMING INDUSTRY VERTICAL “Player database leverage is key across both verticals, and we are seeing operators with existing databases in the land-based space having optimal success in the iGaming space after launch.” Zurawski closed things off by strongly insisting that collaborative actions are perhaps the logical way to proceed by those occupying space in one or both ecosystems. “Online and land-based ecosystems absolutely can and should work together to ensure collective success.
The three main verticals of casino games have vastly different barriers to entry. “Social is the easiest and fastest to market. Online real-money gaming is much more difficult, while getting games into land-based casinos is by far the most complicated process. “Because of this, suppliers should be incentivised to get data from at least one of the two online sources before bringing games to land. “The relationship is not 1:1, but online performance is a powerful predictor of land performance. This should reduce the large, unnecessary cost of bringing unsuccessful games to land-based casinos. “On the practical side, we are working directly with customers in the US on ways to bring the best of the land-based and online worlds together to create a stronger product for all. “Sometimes it can be as simple as migrating a popular mechanic from one space to another, as we did with our recent release Diamonds, Sapphires & Rubies 4Play; playing across four simultaneously spinning reels is a fairly new concept in online casinos despite being well-established in land-based casinos.” •
sbcmagazine.com 31
Keeping up with the trends
CASINO
SLOTS ARE BECOMING ‘MORE DIVERSE’ TO KEEP UP WITH PLAYER ENGAGEMENT TRENDS KAJAL VERMA, ART DIRECTOR AT PUSH GAMING, AND NORBERT MATHIES, MANAGING DIRECTOR AT SPINMATIC ENTERTAINMENT, delve into whether slot design is key
to attracting new player demographics BY JAMES ROSS
S
lot content and design are constantly evolving, with new features being released all of the time. But how important are these design elements when it comes to attracting new players? And
if this is important, what scope is there for the localisation of certain slot titles to cater for the differing tastes across global markets? Speaking to SBC Leaders, Kajal Verma and Norbert Mathies explain why they believe the slot sector is becoming ‘more diverse and including visuals to
attract more players’ and how keeping up with market trends is ‘crucial in understanding what is engaging players’. SBC: Throughout the slot sector, we’re seeing more and more titles becoming diverse visually, yet are slots still being tailored for current players and, in regards to slot design, is enough being done to attract a new audience of players? Kajal Verma: I feel the industry is definitely stepping out of its comfort zone and pushing the boundaries more. We are seeing more themes and
sbcmagazine.com 33
Keeping up with the trends
art styles that are visually daring and standing apart from the typical slot styles that have dominated over the years. Successful games such as Jammin’ Jars and Fat Rabbit have shown how players are looking for something different and are enjoying greater diversity. I do believe there is still more to do in successfully attracting a new audience, for instance taking inspiration from outside the slot space, and I look forward to seeing how this will influence and evolve slot design in the future. Nortbert Mathies: Spinmatic is always looking to innovate and introduce new games and features to attract players from all over the world. It is certain that some games are tailored for the customers but at the same time, it is obvious that the sector is becoming more diverse and including visuals to attract more players. Although those ideas seem to contradict each other, they actually don’t.
Kajal Verma, Art Director at Push Gaming
I FEEL THE INDUSTRY IS DEFINITELY STEPPING OUT OF ITS COMFORT ZONE AND PUSHING THE BOUNDARIES MORE Frankly in tailoring, thanks to our customers, we have the chance to meet their needs with our perspective of innovation. So we actually have even more chances to think big! Whether tailoring or not, we always consider our user friendly and innovation policies. There’s still so much we can do, and new technologies allow for incredible and exciting innovations. In the future, we believe both current and new audiences will enjoy seeing the incorporation of AR and VR technology, for example. SBC: Slots tailored for localised markets can generate tremendous success - do you think this will be the same on a global scale? KV: I think as we continue to move more into a more globalised world, this will affect all areas, including games and game design. At Push Gaming, we design according to how we feel players will respond globally and not just one market. This has been very beneficial for us and shows that titles can cater for multiple
34 SBC LEADERS • AUGUST 2021
markets if designed well. A perfect example of this in the recently opened up Dutch market. Traditionally, players in the Netherlands have preferred a particular type of game, influenced by the landbased ‘casino’ market. The charts of the most popular games and the studios that make them are dominated by similarly styled games, but now the market is open and players there have access to a much wider selection of games, we’re seeing the titles that have been popular globally gaining greater traction there.
KEEPING UP WITH THE MARKET TRENDS IS CRUCIAL TO UNDERSTANDING WHAT IS ENGAGING PLAYERS
NM: We used to consider local things from other places as special, rarely known and even sometimes exotic. In today’s era, although this can still be the case, we are also now in the middle of globalisation, so localised markets or even local customs and traditions are nearer than ever before. This means that slots tailored for the localised markets do not have to come to a dead end, but rather can attract globalised markets because the themes, genre or slots created are not unfamiliar for the rest of the world. As an example, Spinmatic Entertainment has a ‘Sushi House’ slot game which could seem to be created for markets in Asia since it includes localised elements. However, although everyone has the consensus that sushi is a local element, nobody considers it far or distinct from themselves.
CASINO
SLOT GAMING IS A MUTUAL RELATIONSHIP BETWEEN THE PROVIDER AND THE PLAYERS CONNECTED BY OPERATORS
Norbert Mathies, Managing Director at Spinmatic Entertainment
between the provider and the players connected by operators. This relationship should always be in equilibrium so that games are developed fairly - both mathematically and technically. Moreover, implementing the advantages of new technology for players’ chances of winning always attracts them. Hence for developers, the reliability of the game and likelihood of winning is directly related to the future of the game. At the same time, creating userfriendly interfaces can lead to a more positive gaming experience and introducing new players to the game. Likewise, attractive visuals, game designs and sound effects play a significant role in creating a sentimental bond between players and the games. To achieve those goals, Spinmatic has released the Fruity Beats Xtreme! slot game which has 99.08% RTP and is the debut of a new Xtreme! product line.
Similarly, ‘Plato o Plomo’, Spinmatic’s slot game which is inspired by Pablo Escobar, is not only for Latin America but also the rest of the world. In short, games for localised markets can definitely be global. SBC: How much of an impact is player preference having on slot design and how can developers use this to innovate future titles? KV: Keeping up with the market trends across games and mobile titles is crucial in understanding what is engaging players and how we can incorporate that into our future releases. We’re an entertainment provider and our ethos is ‘Players First’, so it’s vitally important for us to invest time and resources into researching this and creatively responding to player’s preferences as the market evolves.
SLOTS TAILORED FOR THE LOCALISED MARKETS DO NOT HAVE TO COME TO A DEAD END, BUT RATHER CAN ATTRACT GLOBALISED MARKETS For example, hyper-casual games are very popular at the moment, and we are looking at ways to bring that into our future games, the prospect of which is very exciting. NM: In my humble opinion, thinking as a player I wouldn’t play the games I do not trust. If any customer feels like the game is robbing them and trying to cover it up with attractive visuals, that means the game is not reliable and credible. Slot gaming is a mutual relationship
SBC: How do you think slots can be redesigned to adhere to responsible gambling guidelines and protect the player? KV: We have always, and will continue to, work hard to ensure that designs, animations and the overall presentation of games more closely match the wins that the players achieve. This creates the more honest and transparent gameplay experience that we truly believe in at Push. We want players to enjoy themselves - but we are equally aware of the responsibility we have and always strive to communicate this to our audience as best we can. NM: Taking special care of security and legacy is paramount to us. We’ve been working on our newly updated framework, SpinEngine 3.0, which is all about enhancing the player’s experience in all sorts of aspects, not just entertainment. Players are informed and protected according to regulations and the framework complies with all the relevant legal requirements. •
sbcmagazine.com 35
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The power of relationships
I SIT IN A VERY UNIQUE POSITION BOTH WITHIN SBC AND AS PART OF THE GLOBAL BETTING AND GAMING COMMUNITY OVERALL
FROM WHERE I SIT: THE IMPORTANCE OF MICRO-COMMUNITIES SBC’S VERY OWN KELLY KEHN reflects on her experiences
of the global betting and gaming community and the power of building strong relationships
BY KELLY KEHN
M
y first regular column. What an honour! As someone who loves this industry and has personally learned so much from the people in it, I’m incredibly proud to have been asked to give my thoughts to the readers SBC Leaders on a regular basis. I’ll do my best to add value to your experience while you are here.
38 SBC LEADERS • AUGUST 2021
I sit in a very unique position both within SBC and as part of the global betting and gaming community overall. My role is to build relationships relationships between businesses, across countries and certainly with the people who work here. As someone who has been in this industry since 2004 both in North America and Europe, I’ve met a lot of people, I know a good amount of you
fairly well and I’d love to get to know more of you better. I care deeply about people and will use this space to give my personal thoughts on the personal side of the industry. “From Where I Sit” will be about my personal perspective on topics that cover our industry’s people. And I’ll welcome your personal thoughts as part of this column. Yes, that’s an open invite to call, connect or email me as and when you have a great idea, something weighing on your mind or just want to see more of a certain topic in our media. Let’s talk. Before 2020, my job was about bringing people together at live events.
MARKETING
HOW WOULD WE FILL THE CONNECTION VOID WHEN WE WEREN’T ABLE TO BE TOGETHER? THE ANSWER BECAME WHAT I NOW CALL MICRO-COMMUNITIES
I don’t need to talk much about the power of connections, if the pandemic made us miss just one thing over everything else, it would be this. But the question for me soon became about the ways we would fill the connection void when we weren’t able to be together... And the answer
became what I now call microcommunities: smaller, tight-knit groups of like minded people who can engage in a much deeper way for a longer period of time. As most of you know, when the pandemic hit, SBC worked extraordinarily hard and were the first to go to market with a digital
conference model. Our first show, SBC Digital Summit had 140+ virtual speakers over five days. We had a virtual expo where brands could showcase their products. We had a brand new platform and a brand new revenue stream in digital events. We had good content, but one thing that was lacking was the connections
sbcmagazine.com 39
The power of relationships
that we all got from industry events. The ability to see people we’ve known for a while and catch up, to meet new people and explore the possibility of doing business, to network with others across the world… So we added virtual networking to our digital events. We did endless Zoom sessions; some very successful, others not so much. We planned specific conversations and we also invited our community in to speak freely about anything. We hosted speakers after their digital sessions to allow delegates to ask questions. Over the 18+ months, we tried just about every form of virtual connection. We watched digital networking fatigue set in fast. I personally built up a bigger network than I ever thought possible from being stuck in my house (and annoyed as many as I built a relationship with). We learned a lot about what’s important at any kind of event, live or digital: The connection with people and the community we are building. Over the course of our 18+ months of working purely digitally, we started to build out micro-communities of people in our network. Our first was SBC Leaders, a group of leading global operators who we bring together
40 SBC LEADERS • AUGUST 2021
MARKETING
WE LEARNED A LOT ABOUT WHAT’S IMPORTANT AT ANY KIND OF EVENT: THE CONNECTION WITH PEOPLE AND THE COMMUNITY WE ARE BUILDING to share ideas, collaborate on major issues, push innovation and elevate the overall image of our industry through the promotion of its achievements. Then came Affiliate Leaders, a similar community but for global affiliates working across the industry. I also host a call every 6-8 weeks for female CEOs, MDs, NEDs and presidents in our industry to keep the power of connection going. And I’m very sure we won’t stop there. The benefits of these microcommunities are vast both for us and our members and will remain a part of our value proposition as we get back to ‘normal’. 1. Members are engaged. Our microcommunities are made up of a small group of people with a shared goal or
THIS CAN ONLY MAKE US BETTER AS A COMPANY, AS MEMBERS OF THE COMMUNITY AND AS AN INDUSTRY OVERALL
purpose and can tap into each other’s experiences, and build relationships with each other. 2. Engagement drives value for members. “Quality over quantity” as they say. Members may not know what information they will receive when they come, but they know it will be valuable. 3. Micro-communities are also relatively easy to scale. We started small and simply where we can learn and adjust to the needs of the group. We are figuring out the shared goals and adding members who fit the profile. We can now connect with the industry at large both on a stage and off. We are building relationships at live events but also now across the world via video chat. We are learning about what matters to this industry outside of what you read in the press. We are talking about meaningful stuff. I believe this can only make us better as a company, as members of the community and as an industry overall. •
A digital world
MARKETING
WE ARE LIVING IN A MOBILE-FIRST WORLD
SOFASCORE: THE SECRET SAUCE TO THE BEST PERFORMING SPORTS APPS DANIEL JURILJ explains why mobile app usage and
data-driven strategies are becoming all the more important for those in the betting and gaming industry BY TED ORME-CLAYE
I
n recent years, the betting and gaming industry has undergone significant growth and development. These changes have only been exacerbated by the milestones of 2020 and 2021, as the COVID-19 pandemic accelerated the shift towards online, new US states opened their doors to legalised gambling and esports continued to
establish itself as a betting product. Daniel Jurilj, SofaScore’s Ad Operations and Sales Manager, detailed his firm’s role in the betting and gaming industry and discussed the shifting trends as the industry continues to develop throughout 2021. SBC: Can you tell us more about SofaScore and your role in the industry? How do you ensure that you stand out from the competition?
Daniel Jurilj: SofaScore is a premium sports app that provides live results and sports stats to its 20 million monthly active users worldwide. Although football is by far its most followed sport, SofaScore covers more than 20 sports and is translated into more than 30 languages. Our secret sauce to being the bestrated app among the competition, both on the App Store (4.9), and on Google Play (4.8), are our constant efforts to turn raw data into valuable insights that help users immediately figure out what’s going on in the match. That is, SofaScore is known to offer not only detailed stats for every single match, player and team, but also for its
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A digital world
visualisation of statistics in the form of insightful graphics. SBC: In a world with so many different betting operators, how important are odds-comparison sites for streamlining the overall betting experience? DJ: I would say that odds-comparison sites are more for a niche audience of semi-professional punters who are looking for best odds and who usually have a dozen accounts at the most popular betting sites. An average punter is more focused on reliability of the site and consumer protection which guarantees him stress free thrill of playing. SofaScore is more tailored to the latter as we do not offer odds comparison, but we try to empower our users with knowledge to make the best possible bet on the most popular sites. When a gambling brand is advertised in SofaScore, it is sort of “verified” by SofaScore given our users further confidence in the brand. We have seen this in collaboration with several industry veterans who launched new brands in the past two years. SBC: How has SofaScore capitalised
42 SBC LEADERS • AUGUST 2021
on this growth of mobile betting? And how can betting apps help elevate the overall betting experience? DJ: We are living in a mobile-first world, and we have worked with several brands who have struggled with this switch to online betting, with many of them still heavily focused on retail. However, a seamless mobile experience is a must if you are going to survive in the ever-growing competitive landscape.
A SEAMLESS MOBILE EXPERIENCE IS A MUST IF YOU’RE GOING TO SURVIVE IN THE EVER-GROWING COMPETITIVE LANDSCAPE SofaScore has long realised that our users use the app as a second screen when watching the game on TV, or at the stadium for that matter, and punters expect the same from betting apps. Not just straight odds, but stats to help them place the bets. Many brands have recognised this and offered us collaborations for integrating our widgets in their sites/apps.
SBC: In the last 18 months, many bettors turned their attention towards more ‘unconventional’ sports and markets such as table tennis, marble racing and international football competitions. Was this significantly demonstrated in data collected by SofaScore? DJ: Well, the past year has obviously been a very strange one and we have collected data that surely cannot serve as a benchmark for future strategies, but can offer some interesting insights. During the first COVID lockdown in 2020, table tennis has soared to the number one spot on SofaScore and stayed within the top five for some time. We quickly introduced virtual football leagues which had significant following and our users voted on the outcome of these matches similar to real competitions. It just shows people enjoy sports and betting on them, and when the most popular sports are not available, people turn their attention to more fringe ones. SBC: Data has become increasingly important for sports bettors, with more and more punters wanting to
MARKETING
WHEN THE MOST POPULAR SPORTS ARE UNAVAILABLE, PEOPLE TURN THEIR ATTENTION TO MORE FRINGE ONES know every detail about every match. But how important is it that data is correctly utilised when it comes to driving fan engagement? DJ: SofaScore has enormous databases for every team, player, competition… but all that is just raw material you need to transform into something useful. This is what we do, and when we want to launch a new feature, we work on it for a long time to make it just right. The final outcome must not be suggestive, but empower the user to interpret the data himself in a meaningful way, and what is really important is that you listen to users. We have a support team that is available 24/7 to our users and we make many changes according to the feedback we receive. SBC: As more US states, and most recently Canada, begin to legalise betting, from a European perspective are sports fans looking towards markets on US sports at all? If so, which sports are proving to be the most popular? DJ: Absolutely. US sports have always been very popular for betting, most notably NBA. I think it is fair to say US sports drove this data driven approach to sports and betting and punters nowadays rarely bet on the final outcome but look for individual player lines. This is clearly visible in our app where NBA individual player stats have the most views during and post-game. SBC: Esports has grown exponentially in the last few years. Has SofaScore witnessed a rise in popularity of esports betting and do you see any future trends in this sector? DJ: Esports is here to stay. There are whole new generations coming that will view esports on par with traditional sports and betting operators as well as sports publishers need to follow suit. SofaScore has used the COVID period to introduce an esports section which has been growing ever since. Our plan for the long run is to have innovative
features in this section as well as in traditional sports. SBC: Concerns have been raised throughout the pandemic about the prospect of online sports betting activity increasing substantially. Has SofaScore encountered any data that would back this hypothesis?
THE SPORTS BETTING INDUSTRY SUFFERED A LOT DURING THE PANDEMIC BUT THE RECOVERY HAS BEEN REASONABLE
DJ: The sports betting industry suffered a lot during the pandemic with sports being cancelled, but the recovery has been reasonable. We have not seen any dramatic changes in the craving for sports or betting for that matter. One interesting thing though is that we have seen a decreased interest in Euro 2020, which is usually a heavy traffic driver. We have received the same feedback from many brands. On the other hand, the casino industry is the one that really profited in the lockdown and there were some concerning numbers on a larger scale which again bring into question player protection. •
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9-11 NOV 2021
STAMFORD BRIDGE, LONDON
SHAPING THE FUTURE OF SPORTS BETTING IN EUROPE 2,000
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Fighting fraud
MARKETING
PARTNERMATRIX: KEEPING AFFILIATE FRAUDS AT BAY LEVON NIKOGHOSYAN, CEO OF PARTNERMATRIX, tackles the hot subject
of affiliate marketing frauds, focusing on using up-to-date technology to effectively reduce scams
BY LUKE MASSEY
T
he recent years saw iGaming companies focusing more than ever on their security. As an affiliate software provider, we witnessed first-hand an enormous increase in inquiries about system security and anti fraud tools. And, while affiliate frauds have always represented a certain concern, the current boom of the industry also fuelled a rise in more sophisticated and harmful methods. The stakes are high: the value of the online gambling market was estimated at around $60 billion in 2020, compared to $53 billion in the previous year. And it is expected that the number will soon double, reaching $127 billion by 2027. Not only didn’t the pandemic manage to slow this growth, but it actually encouraged it. With so much money involved, it’s no wonder that affiliate frauds are on the rise. Especially since a big share of the incomes are generated via affiliate channels, with some casinos paying $50,000 to single affiliates monthly. This makes us, as an affiliate software
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Fighting fraud
provider, more aware than ever of our responsibility to help our clients filter out fraudulent activities and make sure their affiliate operations run smoothly. The first step of our efforts to fight scams is having and sharing a good understanding of their mechanisms.
Understanding affiliate frauds Most affiliate fraud activities aim to obtain commissions from operators by using scams or breaking the rules of the affiliate programs. One way to do this is exploiting the weak points of the system, like it happened too often with the PPC affiliate commission model. Affiliates discovered how they could trick the system with browser extensions, fake or hidden links, or pop-under texts and images. As
IT’S ESTIMATED THAT AFFILIATE FRAUDS AMOUNTED TO $1.4 BILLION IN 2020
46 SBC LEADERS • AUGUST 2021
a result, the PPC model has been replaced by less risky models, such as the Cost per Acquistion or the Revenue share. However, not even these are without their risks: affiliate scammers can use deep bots to create fake traffic and even bogus actions such as placing a deposit or performing a game action. They’re so efficient that a single scammer can generate losses of tens of thousands of euros. To grasp the size of the problem, it’s enough to take into account the hundreds of portals and forums for blacklisted casinos and affiliate scams. And let’s also take a look at some cases that require operators to be on alert in order to avoid fraud.
Red flags in affiliate marketing Let’s assume that you are managing your casino affiliate program and running Cost per Action or/and Revenue Share programs. You pay $1 for every user who makes up to 10 deposits for the CPA program and you pay 10% for the Revenue Share program.
THE GOAL IS VERY CLEAR: TO DETECT THE SCAMMER EVEN BEFORE THEY TRY TO HACK YOUR PROGRAM Affiliates get their commission after the players perform certain actions, such as placing a first deposit or generating a certain amount of revenue in a specified time interval. While this approach significantly lowers fraud risks, scammers don’t lose any time and they always search for new ways to obtain underserved commissions. It’s a good idea to get to know a few types of activities that can suggest a possible scam: lA t least one IP of the affiliate matches at least one IP of one of its players’ or sub-affiliates’ IP: this can indicate that your affiliate is trying to obtain commissions with their personal account. lT he Active Players ratio of a single affiliate is higher than 50% during the calculation period: it means that
MARKETING
l
l
l
l
suspiciously too many active players performed activities during the selected calculation period. Traffic comes from different sources which are not mentioned in your agreement or Affiliate System: if an affiliate commits to bring traffic from a certain blog, all the other traffic sources might be suspicious. Players show suspiciously short lifetimes: these players might be bots who are visiting your platform to perform some actions and send bonus money to their creators. Stake amount of a single bet is more than X% of the amount of the total bets: our Anti-Fraud Intelligence can detect unusual behaviours such as a difference in bets amounts among affiliates and players. The affiliate’s login IP doesn’t match their country: this might mean that the affiliate is trying to get a commission by breaking the rules.
THE TOPIC OF AFFILIATE MARKETING FRAUDS IS NOT ONLY A HUGE ONE TO COVER – IT’S ALSO CONSTANTLY EVOLVING is constantly updated depending on the market’s needs and the operator’s requirements. The goal is very clear: to detect the scammer even before they try to hack your program.
Real-time data, a powerful anti fraud tool The live data exchange between affiliates and operators is another powerful tool in the hands of affiliate managers. Having access to the data
that was way larger than their earlier bets – and the reports showed that they were in fact trying to place a “safe bet”.
Building reputation with transparency The topic of affiliate marketing frauds is not only a huge one to cover – it’s also constantly evolving. After all, it’s a natural consequence of working in one of the most valuable industries in the world. Where there is big money, there are also huge risks (it’s estimated that affiliate frauds might have amounted to $1.4 billion in 2020). Mitigating those risks becomes part of the job for any affiliate marketing software that’s worth its salt and making sure you’re using such software
There are a lot of behaviours that need to be carefully monitored and checked. The good news though is that technology is catching up to fraudsters. Almost any risk can be automatically measured and prevented with the right tools and techniques, such as anti-fraud detection or real-time data reports. Let’s check out these two options in more detail.
Automatic anti-fraud detection tools The variety of affiliate marketing fraud schemes and mechanisms has naturally triggered some countermeasures. For instance, for PartnerMatrix, our affiliate marketing platform, we developed the Anti-Fraud Intelligence tool, meant to automatically stop any type of affiliate fraud on the spot. It acts so smoothly that your affiliate manager won’t even know about it until he receives the system’s notification. The Anti-Fraud Intelligence tool has several layers of fraud detection and prevention, and every module works independently, filtering certain types of fraud activity and reporting with detailed breakdown under the Fraud Reports. The system finds the risks, starting from simple IP checks (players vs affiliate, location, IPS match) to deep analytics that can prevent “sure bets”. What’s more, its flexible software architecture allows adding new modules to filter new risks. The system
in real time means that operators and affiliates alike can act on the spot. They can either cut off traffic if they detect it’s coming from a bad source, or make sure they extend a well performing deal. That is the idea we had in mind when building our API-based, real-time data reports into our affiliate platform. And the results didn’t take long to appear: one of our casinos used the reports to spot some suspicious betting activity. A player placed a bet
TRANSPARENCY IS A GREAT WAY TO BUILD MARKET REPUTATION
is essential in building up an active protection for your business. APIbased, real-time data reports and automatic fraud detection come to the rescue of Affiliate Managers, making it possible to exclude risks for both sides of the business and ensure a secure infrastructure for the affiliate as well. This essentially means putting in place a transparent partnership, which is invaluable regardless of the company’s size and market. Transparency is a great way to build market reputation and make sure it becomes known that your proposal is a fair partnership. That in itself will turn away scammers and attract affiliates that will help your brand in the long term. •
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A new frontier
EUROPE HAS BEEN IN OUR SIGHTS FOR A WHILE NOW
ASTROPAY TAKES PIONEERING GLOBAL PAYMENTS SOLUTION TO EUROPE MIKAEL LIJTENSTEIN, CEO OF ASTROPAY, discusses the
company’s global expansion plans, the customer journey, and why now is the time to launch its offering to a European market BY MIKAEL LIJTENSTEIN
F
ounded in 2009, AstroPay is a global leader in online payment solutions and has been the payment solution of
48 SBC LEADERS • AUGUST 2021
choice for over two million users and 500 merchants across Asia, Africa, and Latin America, with more than 200 payment methods available globally. The AstroPay journey started 12 years ago when we launched our
operations in Brazil, providing payment solutions to customers across Asia, Africa, and Latin America. Since then, the business has grown exponentially, with the number of consumers and merchants using our service having increased significantly, along with the payment methods available globally.
AstroPay’s global expansion plans Our decision to launch in Europe reflects the business’ strength. Europe has been in our sights for a while now
PAYMENTS
and given the strong success we have experienced in other core regions, we felt now was the time to expand our proposition to customers in Europe – starting with the UK, Spain and Portugal. Feedback from our customers made it clear that there is interest in reaching users in these countries specifically, so we took this on board as part of the next stage of our wider global expansion plans. The European market is very different to that of emerging markets,
THE EUROPEAN MARKET IS VERY DIFFERENT TO THAT OF EMERGING MARKETS, AND IT COMES WITH ITS OWN UNIQUE CHALLENGES and it comes with its own unique challenges. For instance, Europe is highly developed in the digital payments space, with customers used to having a wide range of digital payment solutions available to them,
and many using banking services as part of their everyday lives. Purchasing goods and services digitally has become second nature, which contrasts with some emerging market countries where many people don’t have access to a bank account. The differences between these markets – and the opportunities Europe has to offer – are all considerations that have helped inform our decision to launch AstroPay in Europe. Our experience in handling the specificities of different
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A new frontier
types of markets allows us to adapt to different environments easily, to provide an efficient solution to all types of customers - from merchants and end users to business partners across multiple regions.
Continued focus on improving customer experience As more European merchants make the shift towards online deposits, user experience continues to be of paramount importance. This is especially the case when it comes to onboarding and KYC processes. For instance, many customers do not feel at ease if they need to make multiple fulfilment procedures or if they have to follow several steps to pay. In fact, quite often the main hurdle is at the check-out itself. By moving towards check-outs with minimal user interaction, you can improve the overall customer journey. It is also important to bear in mind that the burden of compliance should be solved by the operator and not transferred to the customer as sometimes occurs. Applying flexible and progressive KYC, which differs
50 SBC LEADERS • AUGUST 2021
PAYMENTS
DESPITE THE DISRUPTION CAUSED BY THE PANDEMIC, WE CONTINUE TO GROW FROM STRENGTH TO STRENGTH according to the region and the amounts of money spent, is one way of removing this issue. Ultimately, the customer experience depends on how a company or product relates to its customers and how much it listens to them, along with their capability to adapt to change. Delivering a journey that is as natural as possible to customers, and that requires a few clicks to get the transaction done, can result in an increased conversion rate as well as stronger engagement with the brand.
WE REMAIN FOCUSED ON PROVIDING THE BEST POSSIBLE DIGITAL PAYMENT SERVICE TO ALL OUR NEW AND EXISTING CUSTOMERS
As we venture into Europe, the customer journey remains incredibly important to us. We work hard to improve both our product and the user journey to create a seamless experience which provides a way to pay through a range of methods in local currency. AstroPay’s digital wallet allows users to deposit online as well as withdraw their money in an easy and fast way. We also devote a great deal of time and resources to understanding new markets and the needs of the customers within them. As such, we have dedicated teams working across our core markets - including Spain, UK, and Portugal - to ensure we maintain a strong understanding of the customers’ needs in these regions.
Conclusion Despite the disruption caused by the pandemic, we continue to grow from strength to strength. It is an exciting time for AstroPay and as we launch into Europe, we remain focused on providing the best possible digital payment service to all our new and existing customers across the globe. •
Lessons to be learned
COULD THE UK’S REGULATORY RED TAPE DRIVE BETTORS TO THE BLACK MARKET? THE UK IS AT A PIVOTAL MOMENT in its regulatory
growth with an excess of red tape potentially driving consumers to the black market BY JOE STREETER
T
he UK gambling sector is embarking on a period of significant change and evolution, as the review of the 2005 Gambling Act leads to reshaping of the region’s regulatory framework. Closing the ‘Key Markets’ track
52 SBC LEADERS • AUGUST 2021
at the CasinoBeats Summit Malta, a panel of legislative experts, hosted by licensing expert David Clifton, shared their insight on where they think the UK market is heading and how it can continue to grow in the midst of its regulatory rewiring. Starting the conversation, Clifton detailed his oversight on what he believes the shape of the market is, as he outlined: “My take on where we are is that we’ve got the new interim chief executive of the Gambling Commission, I haven’t met him yet and not sure many have yet, but he’s being given a very wide brief. “He’s got to sort of try and transform the Commission, which means change it from everything that it is at the moment and many people
will probably think that’s long overdue. But, his job description requires him to review and reset every aspect of operations if necessary. So, potentially, it’s a new boom and I think part of that is going to be to strengthen the Commission’s position in light of
I THINK IT’S DEFINITELY WORTH LOOKING BACK BECAUSE THERE ARE LESSONS TO BE LEARNED criticism from all quarters.” The significant reshaping of the regulatory market followed the fall of Football Index, a situation that led to widespread criticism of the Commission’s governance.
PAYMENTS
Having highlighted his belief that in spite of compliance costs, there is room for new innovative entrants into the market, Clive Hawkswood, Executive Advisor of Gambling Integrity, added that he believes there are lessons to be learned from reflection. “I think it’s definitely worth looking back because there are lessons to be learned, but at the time of the last gambling act, it was a pro-active gambling policy, to introduce new licensing and registrations for the UK. “At the time it spoke about things like super casinos, but was, to a large part,
WE HAVE A GOVERNMENT THAT HAS BEEN DRAGGED INTO THIS - THEY’RE NOT THERE TO SAVE THE INDUSTRY
driven by the recognition of a need to regulate online gambling. But also, Ministers had this catchphrase about taking gambling from the shady side of the street - so they had a clear vision. “The policies at the time couldn’t have been looked at in any more detail, we had a government pushing behind them, and what happened was even with all of that and that fact there was no real anti-gambling lobby at the time, parts of that bill got shredded. “Therefore, what worries me now is coming into legislation maybe next year, with a strong anti-gambling presence in Parliament, we have a government that has been dragged into this - they’re not there to save the industry, we have a regulator that is not in a strong position with regards to media and politicians and that could be a very bad concoction of things for us going forward.”
THE MEDIA PROBABLY NEEDS TO THINK ABOUT ITS APPROACH AND STOP TRYING TO GAIN HEADLINES Savvas Fellas, Managing Director of Lindar Media, echoed the sentiment of concern, and is worried about decisions being made without them being properly informed. He stated: “KYC and registration decisions were made with a good reason. It is very valid to halt underage gamblers, credit cards for us weren’t so big, although I’m sure it’s different for other operators, and I don’t know what’s coming down the line. “The media probably needs to think about its approach and stop trying to gain headlines, it’s the same with MPs as well - they are talking out of turn
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Lessons to be learned
and don’t understand what goes into this. “The big, big issue here is taking gambling away from the back streets, as Clive said, and the irony of this situation is that this is where we are going to end up. No one has their eye on the black market stuff and as long as the GC are losing customers, they will ultimately find their way to a black market operator, the same as Sweden and Germany. “If they put things in force that clear a path for this entry to the black market, they’re really failing and that’s what worries me - for the sake of a headline they will enforce something that will give rise to the black market operators, who have no care whatsoever for the customer’s protection, like us regulated operators, especially those that are trying to enforce this into our architecture, technology and our culture.” As regulatory scrutiny tightens, Clifton asked the panel whether they believe there is still room for ‘nimble operators’ to pave their way and thrive in the UK market. Fellas explained his belief by emphasising: “I do think there is still
54 SBC LEADERS • AUGUST 2021
PAYMENTS
YOUR ABILITY TO BE AGILE IS YOUR ADVANTAGE AGAINST YOUR MUCH BIGGER COMPETITORS room, there are big, big challenges if you’re going to come into this market as a nimble operator because your ability to be agile is your advantage against your much bigger competitors. “At the same time, you can maneuver around all of the regulatory landscape than they can and that’s just a fact because these systems that they were built on were engineered at a time when technologies were different and the way that you execute these things was different and regulation was different. “So, if you come into it now you can build all of these things into
THE UK DOES HAVE A LOT OF STALE OPERATORS – THE TECHNOLOGY IS A CHALLENGE FOR THEM ON LEGACY PLATFORMS
your architecture – credit cards, loss of funds – all in an automated way where you rely upon the technology and so then, whilst everyone else is sort of tripping upon themselves trying to figure out how to retrospectively fix everything, you have confidence in leading your operation in an agile way.” Joe Saumarez Smith, Chairman of Eyas Gaming, agreed as he revealed that his enterprise is re-entering the UK market once again, underlining his belief that new incumbents can compete and revitalise the marketplace. Nonetheless, he said the market now is “very different from what it was when he first entered 10 years ago”, specifically pointing to VIP activity as having completely changed during the period. “There are a lot of customers that you simply cannot accept as they won’t pass the due diligence checks,” he added. “But, the UK does still have the largest gambling market in Europe and it does have a lot of stale operators – the technology is a challenge for them on legacy platforms.” •
A ‘glocal’ approach to integrity
LOTTERY
LUDOVICO CALVI RE-ELECTED FOR THIRD TERM AS GLMS PRESIDENT FOLLOWING HIS RE-ELECTION AS GLMS PRESIDENT, SBC Leaders
spoke with Ludovico Calvi about his plans for the organisation, challenges to overcome as well as what is being done to ensure that sporting competitions remain free of crime BY CONOR PORTER
T
he Global Lottery Monitoring System (GLMS) re-elected Lottomatica’s Ludovico Calvi as its President during its online General Assembly in June, marking his third term in the job. It has been a transformative time for lotteries during his tenure, especially over the past year with lotteries learning to survive and prosper in a COVID world while also helping good causes. SBC: Congratulations on being reelected for a third term as GLMS’ President. What has been a key highlight during your tenure so far? LC: Thank you very much. I am delighted and privileged to have been appointed President of GLMS for a third consecutive term after two very exciting mandates during which we have been able to review the GLMS organisation effectively, invest in human and technical resources, draw new, transparent and more effective processes and governance, and implement new and more efficient statutes which will allow GLMS to grow a diversified membership base involving new strategic sport integrity stakeholders. We have also been able to strengthen relations with key public
and private stakeholders worldwide, define and implement a new communication strategy, and engage and increase our membership base effectively. SBC: What are your plans for GLMS between now and 2023? LC: We have set very solid foundations to drive the success of our association in the titanic fight against match
fixing and to protect sports integrity worldwide. Our strategic drivers are fully focusing on safeguarding GLMS growth while aiming at accomplishing our vision and mission of investing resources in communication, education and operations; market learning and adjusting to new challenges improving GLMS' perception among existing members, and strengthening key stakeholder relations.
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A ‘glocal’ approach to integrity
SBC: What challenges are you expecting to face during your third term? LC: The phenomenon of matchfixing is one of the main problems facing the world of global sport and legalised betting. Some believe that the manipulation of sports competition results is the natural negative evolution of sport since the economic implications linked to the development of legalised sports betting became part of the ecosystem and it is a price to pay. I do not agree and there’s evidence to confirm my opinion on the subject. We have concrete and solid indications that the legalisation of sports betting in many countries has averted the proliferation of black markets, criminal organisations and therefore match-fixing. GLMS
LC: As President of GLMS, I have observed an extremely busy period during the last 18 months with the detection and analyses of several irregular and suspicious betting activities. GLMS Integrity Hubs in Copenhagen, Hong Kong and Montreal together with members and partners have never been so busy in fighting the phenomena of ghost matches and match-fixing. During the last 18 months, there have been cases of matches that never took place, but they were promoted on the web with the only objective to generate frauds against the public and betting operators. Criminal organisations have been very active since the outbreak of Covid-19 seizing any opportunity even a health crisis - to further their illicit activities and therefore GLMS has
has always supported regulated, responsible and sustainable betting market environments since bans have often favoured sport corruption. Unfortunately, the evidence of relatively young aged athletes being corrupted is consistent. This negative phenomenon originates from a lack of awareness and the absence of a culture of sport integrity among young athletes. On top of that, the temptation of making easy money without getting caught, given the limited visibility of some low-profile sports events, have been encouraging factors and is at the base of the proliferation of cases among young professional athletes.
THE INTRODUCTION OF A SUSTAINABLE GAMING REGULATORY FRAMEWORK WILL BRING PRECIOUS INVESTMENTS TO THE BRAZILIAN MARKET
SBC: What would you say is the most important lesson learnt by lotteries during the COVID-19 pandemic?
56 SBC LEADERS • AUGUST 2021
increased the level of vigilance and intelligence monitoring and will do more so in the future. Further threats will come from a weaker sport ecosystem, given that the financial crisis has hit several sport organisations globally at all levels, and this, in turn, could potentially increase the level of vulnerability of several sport stakeholders and athletes. The world of sport after Covid-19 will be certainly with more unknowns
and fewer certainties vs the past, in particular with regards to the level of revenues generated by sports clubs and the need to offset the losses with drastic cost-cutting measures. This scenario will inevitably create conditions for fraudsters to exploit weaknesses and take advantage of this moment of vulnerability of the system in the “new normal”. We must work together as a Global Sport Integrity Community actively involving key public and private stakeholders while continuing to be vigilant and protect the safeguarding measures put in place to guarantee the legality and shield athletes and consumers across the globe. SBC: Have there been any particular jurisdictions which the industry should focus its attention on? Brazil or the US for example? LC: The Brazilian Ministry of the Economy has been very active in the last few years on the regulatory front and the market, despite the outbreak of the pandemic, is eager to see through the legalisation process of several gaming verticals. At federal and state levels, Brazilian public authorities are evaluating different gaming bills, including a proposal to exclusively regulate casino resorts in tourist destinations, instant lottery products, in addition to sports betting, bingo games and video slots. The introduction of a sustainable gaming regulatory framework would bring in precious investments to the Brazilian market due to its enormous potential and, above all, legalise all gaming activities, which currently operate outside of the scope of the law and could generate valuable revenues for the federal and local state governments. Another important market, in my opinion, is Canada, where singleevent sports wagering, after almost 10 years and two attempts by political parties, is about to be legal. This is a major opportunity for several B2b and B2C gaming operators. The market is significant especially in provinces such as Ontario and British Columbia. In Canada, black-market bookmakers and offshore websites have had a monopoly on single-event sports betting and igaming for a long time and this is a great opportunity for public authorities, licensed gaming
LOTTERY
organisations to regulate the sport betting market effectively while safeguarding consumer protection and generating valuable revenues for provincial and federal governments. A legal and sustainable Canadian sports wagering market environment will also provide a much-anticipated financial boost to professional leagues through partnerships with gaming operators while selling precious sports data gathered through their matches. As for the US, more than half of the states have now legalised sports betting, the majority of which offer mobile and online sports betting alternatives. Internet casino gaming is legal and available in five states. Even if the market is fragmented due to the different state regulatory frameworks, there are jurisdictions where the regulatory provisions have created sustainable market environments and despite the pandemic, the figures are very encouraging. Unfortunately, there are also US states where policymakers and regulators have been unable to create sustainable regulatory and fiscal conditions, and the sport betting market has turned out to be
not attractive for both consumers and gaming operators, who will no doubt choose to turn away from an opportunity deemed economically non-viable. In these cases, the black market and offshore operators are likely to continue to expand their businesses outside unfettered by integrity measures and standards of consumer protection.
allow robots to analyse real-time price volatility and detect suspicious line/ price movements. GLMS predictive models analyse more than one million prices every five seconds. More importantly, GLMS Operational team can leverage our members' active trading floors in 31 countries, which contribute effectively to the detection of suspicious betting patterns in retail
GLMS’ STRATEGIC APPROACH AGAINST SPORTS CORRUPTION THROUGH A MULTI-STAKEHOLDER, MULTI-JURISDICTION POLICY IS PAYING OFF SBC: Can you tell us more about GLMS’ efforts to ensure that sporting competitions remain free of crime? What are the challenges involved in staying one step ahead of those that threaten the integrity of sport? LC: GLMS’ strategic approach against sports corruption through a multistakeholder, multi-jurisdiction policy with integrity monitoring hubs and active sports lotteries trading floors across the globe is paying off. To manage real-time data flows effectively, GLMS Integrity analysts use a peerless monitoring system to
and digital environments. The “glocal” dimension of GLMS operational arm is the real differentiator from other sports integrity entities since we have an actual local presence and intelligence on the territory and a very active global network. On top of the operational engagement, GLMS constantly invests quality time and key resources in education and prevention, which we consider strategic to create awareness, develop a culture of Integrity and Social Responsibility across the globe. •
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Pushing lottery boundaries
A BRIGHT FUTURE FOR LOTTERIES: SAZKA ON BECOMING A PAN-EUROPEAN OPERATOR ROBERT CHVÁTAL, CEO OF SAZKA GROUP,
discusses the company’s transformation into a pan-European lottery operator and the bid for the UK National Lottery contract 58 SBC LEADERS • AUGUST 2021
BY TED MENMUIR
SBC: Thanks for speaking with us. 2020 marked your eighth year of leading the SAZKA Group. How has this Czech business transformed itself into a panEuropean lottery operator? RC: Thank you for speaking with me. When we took control of the Czech Republic’s National Lottery in 2012,
SAZKA Group’s strategy centered around making lotteries entertaining while focusing on what makes customers play more regularly and safely. Another great example is OPAP in Greece; at a time when investors and businesses were leaving Greece in droves due to the global recession and subsequent Euro crisis, we took the
LOTTERY
I BELIEVE THERE IS A BRIGHT FUTURE FOR ANY LOTTERY IF IT CAN DEVELOP A STRONG MIX OF UNIQUE EXPERIENCES FOR BOTH RETAIL AND DIGITAL decision to show confidence in the Greek market, purchase OPAP via the government’s regulated process, and ultimately revitalise a lottery that had been underperforming for years. It’s now one of the best performing lotteries in the world based on sales per capita. From a technical perspective, if you look at how we have improved each of our lotteries, whether that be in Greece, Czech Republic, Austria or Italy, our customer centric approach has been fundamental to our growth. We listen to our audiences, understand the peculiarities of customer behavior in each market, and plan accordingly. Starting in the Czech Republic, we recognised how lotteries across the continent had become increasingly irrelevant in the modern gaming landscape. Instead of taking the easy route of leveraging a shrinking pool of old but loyal players, we’ve reversed this trend by reinvigorating lotteries using digital innovation to attract new players – both in retail and online – which is why we’ve achieved one of the highest global lottery growth rates
of any lottery operator over the past nine years. SBC: 2020 was a tough year for all lottery operators; how do you see the sector rebounding from the pandemic? RC: SAZKA Group’s recent Q1 results is a clear indicator of how lotteries can thrive as we emerge from the pandemic. In the Czech Republic, Austria, and Italy we’ve even enjoyed our best-ever quarters, and we expect to see similar results in Greece now that retail is reopening.
We’re obviously delighted that retail has bounced back so strongly in most of our markets during Q1, but it’s clear that the pandemic has rapidly accelerated the shift to digital. World leading lotteries of the future need to be digital first, which also means deploying more technology in-store to ensure that retail remains relevant and exciting. In Greece, we’re even helping retailers benefit from the transition to digital by creating a rewards scheme that gives shopkeepers a proportion of digital sales for players they help get online. Additionally, we track in-store traffic through beacons installed in our stores that notify us each time an in-store customer is playing online. I believe there is a bright future for any lottery if it can develop a strong mix of unique experiences for both the retail and digital segments. But to achieve this, big investments in technology must be made while partnerships with leaders in digital innovation are also crucial. This is what SAZKA Group is currently focused on. SBC: Has 2020 fundamentally changed how national lottery firms should be operated, in terms of benefiting society and good causes? RC: Naturally, public spending will be a
WE TOOK THE DECISION TO SHOW CONFIDENCE IN THE GREEK MARKET
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Pushing lottery boundaries
LOTTERY
lotteries, refreshing them with our brand portfolio and by adapting to the unique characteristics of each market by implementing a mix of products and approaches that are tailored for those consumers. So, rest assured – our talented team has exciting plans for The National Lottery! While I would love to talk more about our plans for the UK, under the Gambling Commission’s communications protocol I’m unable to do so. SBC: As lottery and wider gambling businesses re-emerge from lockdown, what advice would you provide to business leaders confronting future unknowns?
KNOWING YOUR CUSTOMER AND BEING ABLE TO PREDICT THEIR FUTURE DEMANDS IS KEY
major issue due to the actions taken to support businesses and jobs during the past 18 months, which is why lotteries and the contributions they make to society are more important than ever. We’ve always ensured that our lotteries maximise returns to society and good causes, both through taxation, and our own initiatives such as OPAP’s redevelopment of the two largest children’s hospitals in Greece, or SAZKA’s support of the Czech Olympic Committee. In the post-pandemic world, increasing returns to society and good causes will only grow in importance. This is why it’s more essential than ever to grow your customer base while ensuring responsible play, as this is the surest way to guarantee more sales and even larger returns for good causes. SBC: SAZKA Group has made no secret of its intent to operate the UK market.
60 SBC LEADERS • AUGUST 2021
Can you shed light on SAZKA Group subsidiary Allwyn’s bid for the National Lottery? RC: In my eyes, The National Lottery is one of the most prestigious lottery institutions in the world. Allwyn’s team, spearheaded by Sir Keith Mills
IN THE POST-PANDEMIC WORLD, INCREASING RETURNS TO SOCIETY AND GOOD CAUSES WILL ONLY GROW IN IMPORTANCE and David Craven (Allwyn’s CEO) and supported by the likes of Vodafone, Justin King, Brent Hoberman and Dr. Mark Griffiths, is building an exciting and credible proposition for The National Lottery. If you look at our track record in Europe, we have consistently improved
RC: As I’ve said, lotteries are more important to society than ever, so any operator should be prepared to shoulder bigger demands from regulators and governments. To deliver for the needs of both customers and wider civil society, lottery operators must speed up the digital transformation of their business by offering customers an omnichannel presence. This is about making sure that players and potential players feel connected to your brand no matter what restrictions we could face in the future. Knowing your customer and being able to predict their future demands is key – omnichannel presence provides more customer touchpoints which are key for gaining this insight. Of course, the technology that makes this omnichannel presence possible will also be crucial as we emerge from the pandemic into an increasingly digital world where the need to improve how lotteries protect their players is vital. It’s all about speed of intervention and prevention – in Greece, our team developed an algorithm that trained on real time data to better predict and manage problematic behavior among players. It has proven to be 30 times more effective than the self-exclusion schemes that have been prevalent in the industry, and it’s clearly something I believe more operators should be developing. •
Going for gold
LOTTERY
TOKYO 2020: THE NATIONAL LOTTERY SHOWS ITS SUPPORT FOR OLYMPIC ATHLETES WITH THE LARGEST TEAM GB delegation for an
Olympics on foreign soil, the National Lottery has continued to show its support for athletes competing in the Tokyo 2020 Games
BY HOLLY HUNT
L
ast year, for the first time ever, the Olympic Games - like many other sporting spectacles - was postponed, having only been cancelled a total of five times as a result of World War I and II since 1896.
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Going for gold
The events has been shrouded by controversy due to the looming global-scale health crisis and the declaration of a state of emergency in Japan; mass public opposition also cast a shadow over the sporting showcase prior to its opening. Although the country took a gamble on proceeding with the event, the Olympic Games remains to be one of the most exciting events in the sporting calendar, with the event filling a void for operators when leagues and competitions are ordinarily put on pause during the off-season. Despite the lack of spectators in attendance to watch athletes across the globe make history in a summer of sport, 339 events across 33 sports - from table tennis to taekwondo and golf to gymnastics - were hosted across 41 different venues. This year’s edition of the Summer Games, which will go down as the most expensive Olympic Games of alltime, saw the inclusion of a handful of new sports including karate, surfing,
62 SBC LEADERS • AUGUST 2021
THE OLYMPIC GAMES REMAINS TO BE ONE OF THE MOST EXCITING EVENTS IN THE SPORTING CALENDAR sport climbing and skateboarding - all of which unlock new opportunities for bookmakers. Meanwhile baseball and softball made a return to the Games. Athletes from Great Britain were backed by The National Lottery, which continued its unwavering support by launching its ‘largest-ever’ branding campaign, voicing its support for Team GB Olympic and Paralympic athletes. The Team GB investment was used to cover a range of Covid mitigation measures, from cutting-edge hygiene
THE NATIONAL LOTTERY HAS A LONG HISTORY OF PLAYING A ROLE IN THE SUCCESS OF TEAM GB AND PARALYMPICSGB
technology to a comprehensive testing programme, which was set up to protect the team delegation before and during the Games. For ParalympicsGB, the investment has delivered safeguards including lateral flow testing across all prep camps, the Athlete Village and out-of-village locations, as well as Covid-secure transport and dining at athletes’ pre-Games camps in Tokyo. British Paralympic Association CEO, Mike Sharrock, said: “Like so many organisations the Covid-19 pandemic has had a major impact on the British Paralympic Association and this partnership with Camelot will help ensure we can deliver worldclass preparation and Games time environments to empower our athletes to achieve their goals this summer. “Tokyo 2020 is a wonderful opportunity to celebrate the resilience of the human spirit and we are confident ParalympicsGB can help unite and inspire the nation once again.” Sophie Morgan, Marketing Manager
LOTTERY
TOKYO 2020 WAS A WONDERFUL OPPORTUNITY TO CELEBRATE THE RESILIENCE OF THE HUMAN SPIRIT at Camelot Group, commented: “National Lottery players have funded over 1,000 elite athletes across the UK as they’ve prepared for Tokyo and beyond, and The National Lottery has a long history of playing a role in the success of Team GB and ParalympicsGB. “Following the introduction of National Lottery funding in 1997, Team GB has moved from 36th in the Olympic medal table in 1996 to second at the Rio 2016 Games. In total, 864 Olympic and Paralympic medals have now been won by British athletes since National Lottery funding began. “So, the idea of this summer-long, unmissable campaign – which is The National Lottery’s largest ever brand campaign – is to remind players that, every time they play a National Lottery game, they’re helping our Team GB and ParalympicsGB athletes in Tokyo.” Alongside the core campaign, advertising for the individual National Lottery games was badged with the Team GB and Paralympics GB logos, and the Lotto ‘It Could Be You’ TV ads given a fresh update with a Tokyo twist – meaning that players will be reminded of the part they play in funding athletes at every National Lottery touch-point. “Taking inspiration from the original National Lottery campaign of the same name, we launched a new series of Lotto ads under the ‘It Could Be You’ banner last summer,” Morgan added. “With the help of oversized lottery balls, the ads aim to tell the nation that their numbers are coming for them. This summer, the ads will be updated with a Tokyo twist and will feature a famous ParalympicsGB face alongside those mega Lotto balls.”
864 OLYMPIC AND PARALYMPIC MEDALS HAVE NOW BEEN WON BY BRITISH ATHLETES SINCE NATIONAL LOTTERY FUNDING BEGAN
The core aim of this campaign, the Camelot Marketing Manager told SBC Leaders, is to remind National Lottery players of the differences they make in supporting Good Causes. British Olympic Association CEO, Andy Anson, added: “The nation has been heavily impacted during the last 12 months and the Tokyo Games provide an amazing opportunity to generate a positive message. “The support of Camelot is timely in ensuring that we’re able to maintain
With Team GB having sent its largest contingent of athletes to the Games, national pride also played a role in boosting the money raised for the National Lottery’s Good Causes as British audiences watched a host of gold medal winning performances from their Olympic heroes such as Tom Daley and Matty Lee in the synchronised 10m diving and Adam Peaty in the 100m breaststroke, keeping the country firmly in the top 10 leaderboard.
the world-class environment for our athletes in Tokyo whilst incorporating the vital additional infrastructure to make sure our facilities are Covidsecure for our athletes and to allow them to reach the ‘start line’ in the best possible condition.
Morgan continued: “National Lottery players raise an incredible £36 million a week for Good Causes. So, even though they primarily play for the big jackpots on offer, it’s really important that we regularly remind them of the difference that they make. That way, even when they don’t win a prize, they realise that Good Causes have benefited. “The Olympics and Paralympics also always provide a fantastic moment of national pride and, given the
“We’re also excited to work with Camelot and their staff on our innovative wellness programme and share the lessons learned from the success of Team GB.”
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Going for gold
difficult circumstances we’ve all been living through, we hope that National Lottery players get a real boost from knowing that they’ve played a part in this amazing summer of sport.” Throughout the Summer Games, the National Lottery used both its digital and retail presence to deliver Olympic-themed point of sale items - thereby driving new levels of engagement with lottery players across the UK. The items included Tokyo merchandise and a range of specialised games - including a limited edition Win Gold £1 Scratchcard and three special event Lotto and EuroMillions draws The UK’s National Lottery wasn’t the only lottery organisation showing its support for this year’s Olympics, with
WE HOPE THAT NATIONAL LOTTERY PLAYERS GET A REAL BOOST FROM KNOWING THEY’VE PLAYED A PART IN THIS AMAZING SUMMER OF SPORT
64 SBC LEADERS • AUGUST 2021
LOTTERY
IT’S REALLY IMPORTANT THAT WE REGULARLY REMIND PLAYERS OF THE DIFFERENCE THAT THEY MAKE Tokyo 2020 presenting a host of new opportunities for US lotteries. Across the pond, lotteries were able to offer Team USA-themed content on instant scratch tickets, ilottery games, social setting games, and terminalbased instant games. Meanwhile France’s National Lottery operator, La Française des Jeux (FDJ) launched a new scratchcard game themed around the French Olympic and Paralympic teams in Tokyo. “Now is the time for lotteries to plan programs that will bring the excitement of Team USA’s participation in the Winter Olympic and Paralympic Games to their players,” explained Peter Zeytoonjian, Senior Vice President of Consumer Products, US Olympic and Paralympic Properties. “We’re creating amazing opportunities for US fans and we’re excited lotteries can now extend experiences through the games they offer to players.” •
A chance to talk business
LOTTERY
FACE-TO-FACE MEETINGS AND NEW PARTNERSHIPS ON THE AGENDA AS IN-PERSON EVENTS RETURN SBC SUMMIT BARCELONA
will represent another step back towards business as usual for the industry, as operators, affiliates and suppliers gather at Fira de Barcelona on September 21-24 to exchange ideas, network and talk business BY MARTYN ELLIOTT
D
uring 18 months without major international conferences and trade shows, businesses supplying the betting and gaming industry were forced to find new ways to reach and engage with prospective customers. Many were rewarded for their inventive approaches with very healthy sales figures, yet they still warmly welcome the return of in-person events. What is it about these shows that people have missed? Why, when technology has made the business world so much smaller, do companies still see them as so important? For Susan Moran, Head of Marketing for player engagement and retention platform XtremePush, it’s all about the personal approach. “Events are a huge part of our sales and marketing efforts. We believe that there is nothing better than meeting people in-person at events and really getting the chance to understand them and their objectives,” Moran explained. “It’s always great to have a chance
to meet clients and partners, who drive the success of our business, and dig deeper into their strategies to see how we can help them even more.” And it is not only customers that Moran is excited about meeting at the Xtremepush booth in Barcelona. “Personally, I’m looking forward to meeting up with members of our team
software specialist takes part in SBC Summit Barcelona. “For us, in-person events are the best tool to get in front of the audience and market we are targeting,” said Rodrigues. “But more than that, in-person events allow us to create connections right there with potential partners that, otherwise,
THERE IS NOTHING BETTER THAN MEETING PEOPLE IN-PERSON AT EVENTS AND REALLY GETTING THE CHANCE TO UNDERSTAND THEM AND THEIR OBJECTIVES for the first time in far too long. We’re a global business, with colleagues across different countries and time zones, so it’s great to be able to catch up at these events,” she said. Vasco Vaz Rodrigues, Marketing & Comms Manager of Aurum Solutions, is also animated about the prospect of moving out of the virtual world for a few days when the reconciliation
would be very hard to interact with. So they are a big part of our strategy, mainly since we believe more in human, face-to-face interactions than virtual ones.” The ability to meet in-person is not just a more sociable experience, it also has real business benefits, according to Digitain’s Chief Business
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A chance to talk business
Officer Simon Westbury. He described exhibitions as “intrinsic” to the sales process and suggested that all parts of the platform and content provider’s commercial team would welcome their return. “In-person events are key for the account management team, as they get to meet up with existing partners face-to-face, get feedback on our performance over a coffee and to discuss any issues or future opportunities,” said Westbury. “For the sales team, they get to develop their network, demonstrate our great range of igaming products with interested parties and, hopefully, set a few deals in motion.” He added: “SBC Summit Barcelona will be one of the first trade shows that new members of the Digitain sales team will be attending, so it is exciting for me to see how the new team members progress from working solely in a digital world. It’s important for them to build their network, as so much of sales is about long-term relationships and trust.” That sentiment was echoed by Sam
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Wright, B2B Marketing Specialist with Pinnacle, who said: “There’s really no substitute for in-person events when it comes to showcasing our brand to the audiences we’re looking to reach. “Events facilitate constructive conversations with potential new partners, with all parties in attendance generally pursuing the common goal of creating new partnerships or improving on existing ones.
esports strategies, come back with quick answers to the queries they may have, and generally expedite better conversations so we can start executing on mutually-beneficial partnerships sooner than we would otherwise over multiple Zoom calls and email chains.” While generating sales is obviously the number one goal for every exhibitor, most also see real value in
WE CAN START EXECUTING ON MUTUALLY-BENEFICIAL PARTNERSHIPS SOONER THAN WE WOULD OTHERWISE OVER MULTIPLE ZOOM CALLS AND EMAIL CHAINS “There are so few opportunities across the year to engage in these discussions in person. Often the day-to-day operational challenges of running successful 24/7 businesses take precedence and developing conversations can take a while. That’s why events, like the SBC Summit Barcelona, are so important to get right from a supplier point of view.” Wright added: “Face-to-face, we can talk in more depth to understand clients’ trading challenges and
the conference element of events. According to Moran, conferences are vital for Xtremepush “in terms of keeping our finger on the pulse of industry”. She added: “The panel discussions and expert-led sessions are invaluable. We pride ourselves on understanding the challenges and the goals that operators have.” Westbury is also keen to hear the insights and experiences of the senior executives and product specialists on
LOTTERY
the 250-strong speaker line-up at SBC Summit Barcelona. “From a knowledge leadership perspective, it’s always useful to take the opportunity at trade shows to hear the views of industry experts. SBC is excellent at putting an interesting roster of speakers together with a cutting-edge agenda,” said Westbury. “From the agenda, the parts that caught my eye included the leaders panel on innovation - I’m very much looking forward to that. Also, the session on media companies and betting company partnerships should be good too. “In the US, a lot of operators have gone all-in with this strategy, and it'll be good to hear how this has gone, given there's only ever been one real success in Europe with this approach.” The combination of interacting with operators at networking sessions and on the exhibition floor, together with the ideas of the conference speakers, is also set to prove valuable for Pinnacle. Wright said: “I’ll be intrigued to hear what the industry’s take on esports as a betting priority is, come September. We’ve seen more tier-one operators treating it with the importance it deserves in the last year, in no small part due to the abrupt halt in traditional sports in 2020. “It seems that the esports betting revenue numbers are slowly convincing the doubters. We’re excited to showcase our own learnings and expertise at SBC Barcelona, when it comes to building a successful esports product.” Part of the attraction of conferences and trade shows for delegates is the chance to view and try out the next generation of products that have the potential to drive growth in their businesses. Between the presentations on the Product Innovation Showcase stage and the exhibition, there will be plenty of opportunities to do just that at SBC Summit Barcelona, with Xtremepush, Digitain and Pinnacle among the companies participating. Describing what delegates can see at the Xtremepush booth, Moran said: “We will be exhibiting our award-
SBC IS EXCELLENT AT PUTTING AN INTERESTING ROSTER OF SPEAKERS TOGETHER WITH A CUTTING-EDGE AGENDA winning player engagement and retention platform. We’re looking forward to showcasing our realtime data and in-play engagement functionality. In particular, we’ve made some incredible enhancements to our journey builder, allowing operators to do even more through automation, which is the key to scaling player engagement.”
customers. The games are positioned in a sweet spot between casino and sportsbook, and are an excellent cross-sell opportunity too.” Pinnacle has also made significant strides in product development since the last major industry trade show, so many delegates will be seeing its latest range for the first time. “We’re excited to showcase exciting new advancements in our brand and product range in Barcelona, having developed our iFrame solution and esports product to ensure we meet the ever-changing challenges and provide the most value to our sportsbook partners going forward,” said Wright.
Digitain will also be using its booth to showcase upgrades and additions to its established range of sportsbook and online casino products. “As always, we'll be promoting our ‘hero’ product, our award-winning sportsbook, and I’m also looking forward to demonstrating our latest sportsbook bet types and our new bonus tools,” said Westbury. “We’ll be showcasing our new portfolio of in-house developed Fast Games, including our new Blackjack game. We're very pleased how our new games have been adopted by our partners and their customers. “We think these games could be of interest to operators outside our network too, as they offer both boosted revenues and a low-cost recruitment solution for recreational
“The past 18 months have seen us proactively engage with existing clients and prospective partners looking to level up their sportsbook performance. We’ve listened to how their strategies have evolved to account for a postpandemic era and we’ve acted on that to ensure we continue to be a firstrate partner, delivering the revenue gains and hold improvements that they demand. “As a risk management pioneer, Pinnacle Solution has a fairly unique position in the market. So at the Summit, we’ll be looking to demonstrate how our expertise in managing the fundamentals of the trading function will deliver the consistent growth and performance that we take such pride in delivering.” •
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