ISSUE 9 • JUNE 2020 COVID-19
Partnerships proven in crisis
TAKING CONTROL
LeoVegas COO means business RECOVERY
Las Vegas back to normal by 2022
Sergey Portnov
SOAP OPERA
Finishing Brazil's betting jigsaw
Risk taking is in my DNA
JUNE 16-17 2020
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6-17 Sports Betting • Sergey Portnov: Risk-taking is in my DNA
CONTENTS JUNE 2020
• Carsten Koerl: Partnerships will be proven in crisis • How sportsbooks can get the most out of esports
18-29 US Market • Indian Country to take valuable lessons from COVID-19 • ‘Filler’ content no substitute for real sports • Jan Jones Blackhurst: Las Vegas back to normal by 2022
30-37 LatAm Market • Brazil: Political bluster hides an incomplete jigsaw • Colombia must protect operators from unfair competition
38-57 Casino • LeoVegas means business under new COO • Innovation on hold despite online casino growth • Changing behaviours in an evolving environment • RTP: Can more be done to educate players? • Quanta: From a licensed lottery to a life portal
58-65 Payments • Four key things we learned about digital currency • Compliance challenge: Betting enters the unknown
66-74 Marketing • How gambling can shake off the negative perceptions • New virtual reality: SBC’s digital events take off
The SBC Magazine is brought to you by SBC - Sports Betting Community: EDITORIAL TEAM: Luke Massey, Andrew McCarron, Craig Davies, Ted Menmuir, Joe Streeter, Chris Murphy, Erin Gallagher, Tom Daniels, Matthew Ramirez, James Ross, Lucia Mouriño SALES TEAM: Rasmus Sojmark, Alyona Gromova, Conall McCabe, Neil Judson, Liam Machin, Reece Calderbank DESIGNED & DELIVERED BY Better Mags (bettermags.co.uk) All material is strictly copyrighted and all rights are reserved. No part of this publication may be reproduced in whole or in part without the written permission of Sports Betting Community Ltd. Although every effort has been made to ensure the accuracy of the information contained in this publication, Sports Betting Community Ltd cannot be held responsible for any errors it may contain. Sports Betting Community Ltd cannot be held responsible for the loss or damage of any material, solicited or unsolicited. The views in the publication are not necessarily the views of Sports Betting Community Ltd or those of the advertisers. Produced and published by Sports Betting Community Ltd REGISTERED ADDRESS: Sports Betting Community, 103-105 Brighton Road, Coulsdon, Surrey CR5 2NG, UK TEL.: +44 (0) 161 367 1250 EMAIL: sales@sbcgaming.com WEB: www.sbcgaming.com
sbcmagazine.com 3
INTRO Luke Massey Head of SBC Media
Let's make use of stronger partnerships forged, additional revenue streams that have come to light during this crisis, and even the time away from sports that has allowed us to focus both on the tech behind the scenes and intensified our thirst for live action.
W
elcome to the third edition of SBC Magazine for 2020! I recently completed a feature interview for SBC News WITHOUT mention of COVID-19 for the first time in over two months. Now I appreciate the irony of starting out with this point given that I want to move the narrative of this magazine beyond the ramifications of this horrible virus, but it felt good looking to the future for our industry.
Of course, we are far from out of the woods. Whether you expect the betting industry's recovery to be U-shaped, V-shaped or WHETHER YOU EXPECT even backwards L-shaped THE BETTING INDUSTRY'S (credit to Gambling.com RECOVERY TO BE Group's Max Bichsel for that one), there is a road U-SHAPED, V-SHAPED to recovery.
OR EVEN BACKWARDS L-SHAPED, THERE IS A ROAD TO RECOVERY
But for this edition of the magazine let's try not to look back and instead mould a plan to navigate the path that lies ahead, even if we do have to acknowledge the disruption we’ve all endured thus far in 2020.
Throughout this latest issue, we hear from so many experts in the space. First we get the European perspective on sports betting, quickly followed by fully stocked sections dedicated to the US market, LatAm, casino, payments and marketing. Yes we'll delve more into the esports boom, crisis control and the future for alternative betting content, but this time we've got 'eyes on the tribes', as well as more on the future for Las Vegas, the regulatory soap opera in Brazil and a new COO for LeoVegas. And let’s not forget a roundtable on RTP education; Quanta's transition from licensed blockchain-based lottery to life portal; a review of the lively 'Gambling in Society' panel at the SBC Digital Summit featuring MP Carolyn Harris; and a run-through of the standout virtual events to look out for this summer. We hope you enjoy it!
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SPORTS BETTING
Propelling Parimatch
SPORTS BETTING
SERGEY PORTNOV: W RISK-TAKING IS IN MY DNA
e discussed some of Portnov’s biggest challenges over the last five years, and how his risk-taking has paid off by propelling Parimatch on to the international stage.
SINCE BECOMING CEO OF PARIMATCH IN 2015,
Sergey Portnov has undeniably made his mark by overseeing its evolution from a retail to an online bookmaker, as well as signing iconic sports stars such as Conor McGregor and Mike Tyson
SBC: At university, you studied for an MSc in Management, as well as a BSc in Gambling and Leisure Management. Why were you so keen to get involved in the gambling industry? SP: My father was a professional gambler, so I learnt about the industry from a young age. I got to understand that sometimes you win, but sometimes you lose. I saw both extremes of great success
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Propelling Parimatch
CONSUMER TASTES AND DEMANDS ARE ALWAYS SHIFTING AND WE NEED TO KEEP UP WITH THAT TO ENSURE THAT OUR PRODUCTS REMAIN THE MOST COMPETITIVE AND ENTERTAINING IN THE MARKET and also great failure, and understand what it means to be a risk-tasker. Risk-taking is in my DNA, I inherited it from my father. When I told him that I wanted to follow his footsteps into the gambling industry, his advice to me was to get into the management or operational side of the things, so that’s what I chose to do. I have always had a passion for entrepreneurship, there are lots of similarities between being an entrepreneur and gambling. They both involve calculated risk – you have to risk it all for something that you believe in, whilst also learning from your mistakes. Both involve an appetite for winning, and a drive to succeed despite the odds. SBC: You’re celebrating five years as CEO of Parimatch; what have been some of the biggest changes that you have seen across the company during this time? SP: At Parimatch change is happening all the time, we are constantly evolving. Consumer tastes and demands are always shifting and we need to keep up with that to ensure that our products remain the most competitive and entertaining in the market. We are an agile business operating with a start-up mindset, so we can make changes very quickly. This means that we are continually ahead of the curve - through our product offering, enhancing our online platform with the latest technologies or entering new markets. The obvious change over my time as CEO is the move from physical shops to online betting. This was a seismic shift at the time, and even now the way our customers interact with us is always changing. Not long ago being an online betting company meant that our customers were connecting with us via PCs, but now mobile is much
8 SBC MAGAZINE • JUNE 2020
more popular. 65% of bets placed with us are on some form of mobile device. So now not only do we have to always think digitally, we have to think mobile. Our approach to marketing has also changed. Our aggressive and agile marketing strategy is one of our best assets, and something I am really proud of. Our strong corporate identity and ambassador-led campaigns are
and all I will say is that we are looking to Hollywood, so watch this space. SBC: Esports has been a growing sector in the last few years, and something that Parimatch has capitalised on with the Parimatch League. What was the decision behind this? And might we see more operators following Parimatch’s lead?
CONOR AND MIKE’S STAR APPEAL HAS PROPELLED PARIMATCH ONTO THE INTERNATIONAL STAGE, PROVING THAT SOME OF THE BIGGEST NAMES IN SPORT ARE READY AND WILLING TO BACK PARIMATCH anchored in data, an approach which is consistently delivering results for us. Having sporting icons like Conor McGregor and Mike Tyson as brand ambassadors gives us the competitive edge in our fast-moving industry. This new strategy of using international superstars to represent our brand has propelled Parimatch onto the international stage. People always ask me who the next ambassador will be,
SP: I saw the opportunities in esports way before any of our competitors. So, I took a risk on what was then a niche sport and created a new team to focus specifically on esports marketing and product trading. We didn’t employ people who had experience of betting and marketing products, and instead turned to experts from the esports world itself. The risk paid off – esports now makes up 15% of our yearly profits.
SPORTS BETTING
Last year we set up the Parimatch League as there is relentless pressure on esports tournament organisers to attract the top flight esports teams to their competition, in order to achieve maximum audience numbers. And it is big audience numbers which attract advertisers and sponsorship which ultimately bring money into the sport. We wanted to be the first betting company to organise its own competition, so that’s what we did. We had over 1,000 people attend the final in Moscow, and leading studios from the USA and China broadcasting the event. The tournament got more than six million views on Twitch - it was a great success. Now, thanks to support from companies like us, esports is moving from a niche betting sport into the mainstream. One day it may even take over traditional sports in popularity. SBC: You have been responsible for transforming Parimatch from a retail bookmaker into a fast-growing online sports betting platform which is now operational across multiple territories. Why such an overhaul to the strategy? SP: It was the only way for Parimatch to survive. Simple as that. Moving online is the only way for any business to survive. Now almost everybody lives their lives online and we as a customer facing business have to be part of that story. Today, above everything else, Parimatch is a tech company. We operate with a digital mindset and we are driven by data. We have developed our own in-house betting platform, which means we can test new products really quickly, something which is of critical importance to any company who provides entertainment to their customers. We use AI and algorithms to deliver a hyper-personalised experience for our customers. That is what they want, and have come to expect from us. Content personalisation is critical to our customer retention and loyalty. Customers want a bespoke and tailored gaming experience. SBC: What was the idea behind signing fighting superstars such as Mike Tyson and Conor McGregor as brand ambassadors for Parimatch? And is their fighting spirit
representative of the Parimatch philosophy? SP: It goes without saying that Mike and Conor represent everything that Parimatch stands for. What would be the point in having a person as the face of your brand if they didn’t embody the brand themselves? It just doesn’t make sense. Both Mike and Conor share our fighting spirit and are born winners. Conor and Mike’s star appeal has propelled Parimatch onto the international stage, proving that some of the biggest names in sport are ready and willing to back Parimatch. They strike a chord with our customers, and have helped us to reach new audiences. People from
operator in every sense of the word. We take care of our players by providing information on gambling addiction and enable our customer service operatives to identify problem gamblers. It is our duty to look after our customers. But not only our customers, also people where we have operations. We do this through the Parimatch Foundation, because we believe that every child should have access to quality education in order that they can reach their full potential. We know that sport, either professional or amateur, is essential to ensuring a nation’s health. That is the reason why we are so focused on ensuring the health development
League of Legends World Championship
ESPORTS IS MOVING FROM A NICHE BETTING SPORT INTO THE MAINSTREAM. ONE DAY IT MAY EVEN TAKE OVER TRADITIONAL SPORTS IN POPULARITY all over the world talk about us now. Using real fighters and sporting icons as our brand ambassadors aligns with our rebooted branding, and is key to our aggressive and data-led marketing approach. SBC: You’ve spearheaded a number of responsible gambling initiatives during your time with Parimatch, why is it so important to ‘give something back’ to the local communities? SP: We are a socially responsible
of children, and see this as a direct investment into the economic and social wellbeing of society. SBC: And finally, what does the future hold for Parimatch? Where do you think you will be in five years? SP: I am no fortune teller but one thing I do know for sure is that Parimatch will be known as a leading global tech company, providing exciting entertaining experiences for everybody. •
sbcmagazine.com 9
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Time to lead
SPORTS BETTING
CARSTEN KOERL: “PARTNERSHIPS WILL BE PROVEN IN CRISIS” AFTER THE LARGESCALE POSTPONEMENT
of live sporting events demanded rapid changes to the company’s business strategy, Sportradar’s CEO says the strength of partnerships will be fundamental during this unprecedented period
D
elivering the day-one keynote at the inaugural SBC Digital Summit and kicking off the Leadership in Betting track, Carsten Koerl told delegates that we should see the ongoing crisis as a “defining leadership moment” to deliver the best possible outcomes for all stakeholders. He described how he began his own journey in the industry, founding Bwin and taking it to an eventual Initial Product Offering (IPO), before shifting his focus to Sportradar and creating the world’s leading, full-service data, betting, trading and player management platform business. Koerl explained how he changed his private equity partner in 2018 and, within the same transaction, the enterprise value was €2.1 billion. The company today has 30 offices around the world with approximately 2,500 employees. Its employee hub was initially Europe, however, Sportradar has rapidly grown into a truly global company – something he said he is extremely proud of. “It is a global culture and we have a 24/7 operation, 365 days of the year. This is what we need to do to serve all our clients with the product and content we are selling.”
IT IS A GLOBAL CULTURE AND WE HAVE A 24/7 OPERATION, 365 DAYS OF THE YEAR. THIS IS WHAT WE NEED TO DO TO SERVE ALL OUR CLIENTS WITH THE PRODUCT AND CONTENT WE ARE SELLING
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Time to lead
Moving on to address business continuity in the face of COVID-19, Koerl admitted that in just a few days in March, sports betting lost 90% of its “raw material or fuel” with many leagues and matches suspended. He added: “The complete supply side was breaking away. It has been a massive challenge that no one has ever seen before.” As the full extent of the crisis became clear, he said his thoughts turned to safeguarding his staff. “The first thing is employees,” he said. “How can I protect them, and give them clear guidance through transparent communication?” The other key area, said Koerl, was to deliver value for Sportradar customers while maintaining the strong foundation of partnerships. “This is a time where I have to say partnerships and leadership will be proven. You must have values which you protect. If you let them go, it becomes very difficult on both sides. We are all facing tough times, there is no question about it, but we must all handle it in the right way. So, let's speak openly about it and let's try to find a partnership solution. “Conditions have changed but what has not changed is that partnerships will be proven in a time of crisis. It's essential and this is what I've tried to execute.” Introducing how Sportradar has
12 SBC MAGAZINE • JUNE 2020
innovated and pivoted its roadmap to generate much-needed content in the absence of live sports, he urged company leaders to be agile and innovative enough to navigate these “unprecedented times”, but without losing sight of the future. He added: “You can get creative if you take everybody together, and we base that on four pillars. First is to create content on the supply side, then comes the demand side and so listening to our partners and their requests is essential.
THE COMPLETE SUPPLY SIDE WAS BREAKING AWAY. IT HAS BEEN A MASSIVE CHALLENGE THAT NO ONE HAS EVER SEEN BEFORE “After that, we needed to find a balance to bring things together, while at the same time working on reducing operational costs to efficiently manage our financial position.” Here, Koerl noted Sportradar’s quick pivot to AI-driven Simulated Reality. This product, he later confirmed, went from initial concept to live in just over a week before servicing approximately 250 clients on the first day. Explaining how this works, he said: “We have decades of experience in our database from data journalists and how they cover matches. They monitor
areas such as dangerous attacks, penalties, goals, fouls, throw-ins, etc. “We have all these data points from hundreds of sports across the globe that we feed into our odds models, so we asked ourselves, what if we applied AI to these models? This way we could provide our customers and their players with an ideal way to visualize and enjoy these sports using data and betting markets that is as close to reality as possible.” Moving on to virtual sports, a range of products which Sportradar has
SPORTS BETTING
operated for nearly 10 years, Koerl explained the company has boosted this content pipeline by “three to four times” – emphasising that “everybody wants and needs content”. He told delegates that the Sportradar offering has been further enhanced by the launch of the virtuals Euro Cup 2020, offering thousands of betting opportunities across 51 matches – the same number that would have been played at this summer’s European football showpiece across 12 cities. Rounding up Sportradar’s extended
FOR US, IT IS IMPORTANT TO LOOK TO OUR EMPLOYEES AND OUR PARTNERS, THAT’S THE KEY MESSAGE
Looking ahead, Koerl said that time away would “enhance the appreciation of live sports,” adding that the current focus on alternative content will likely attract a younger and broader audience.
coverage of Simulated Reality products, virtual sports and esports, Koerl highlighted the provider had increased its sports content available to partners significantly (as compared to same time last year) - offering approximately 24,000 matches worldwide.
He summarised his keynote by saying: “For us, it is important to look to our employees and our partners, that’s the key message. Preserving liquidity and cash is also very much needed at this time, so you need to do everything you can to maintain a strong balance sheet.” •
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Complete, not compete
SPORTS BETTING
HOW SPORTSBOOKS CAN GET THE MOST OUT OF ESPORTS BETTING EVENTUALLY SOMETHING MIGHT SPIN OFF INTO ESPORTS-ONLY BUT FROM A BETTING PERSPECTIVE I THINK IT’S GOING TO BE TIME
Paris Smith, Pinnacle CEO
BETTING ON ESPORTS has
enjoyed a remarkable rise to prominence amid the COVID-19 pandemic as, unlike real sports, most of its competitions have still taken place online. And many (not all) titles lend well to betting markets
D
uring the ‘Esports Let’s Get Digital’ panel at the recent SBC Digital Summit, discussions turned to the role that esports can play for a traditional sportsbook, particularly following the global pandemic. Parimatch CEO Sergey Portnov opened up the topic of how to utilise esports betting by stating that in order to enhance the sector’s long-term growth, it should look to
complement traditional sports, not compete against it. He stated: “I don’t think esports can carry success on its own. Esports is strong, I agree, and maybe the time will come where it can be a fully independent custom but from what I see it blends so nicely with traditional sports. “Overall, I believe that esports should be a part of a portfolio. You can have a shop just selling grass and plants, it will have its niche for sure, people will come.
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Complete, not compete
“But, can you make real money from it? I doubt it. It has to be like a supermarket. If you are talking about serious commercial businesses with high revenue it has to be blended into one single gaming ecosystem.”
Pavol Krasnovsky, RTSmunity CEO
Pinnacle CEO Paris Smith also highlighted that traditional sports operators have a duty to provide coverage on a similar level to esportsonly operators. She said: “I think it’s the objective of the companies that have traditional sports to utilise the infrastructure and the scaling (of esports-only operators) and be able to provide a proper esports product, that’s where we fall short.
IF WE BRING BETTER TRANSPARENCY TO ESPORTS PARTNERS THIS MEANS THAT WE AUTOMATICALLY PROVIDE BETTER PRODUCTS AND BETTER EXPERIENCES “But I agree 100 per cent, you need to have the full ecosystem of sports betting. Eventually something might spin off into esports-only but from a betting perspective I think it’s going to be time.” Portnov and Smith were joined by RTSmunity CEO Pavol Krasnovsky, who discussed the importance of transparency between esports and traditional partners to enhance competitive gaming products and provide stronger customer experiences. He explained: “If we bring better transparency to esports partners this means that we automatically provide better products and better experiences to hardcore traditional partners. “In our perspective esports partners are the right triggers for sports betting companies to make the process of bet placement transparent. This can only positively influence traditional partners.” Creating better relationships between the esports sector and traditional sportsbooks will only boost its betting sector according to Krasnovsky. Despite there still being growing pains in the esports betting industry, Smith firmly believes that due to the
16 SBC MAGAZINE • JUNE 2020
increased focus on esports as a result of the live-sport hiatus, the quality of the product and its potential customer base will only improve. She explained: “The volume has gone up, the number of partners have gone up, the number of players has gone up and the amount of bets has gone up. “I think we are going to keep the players, I do believe that there is the potential for volumes to go down a bit only based on the number of bets that people are able to do right now. But, we have taken the opportunity to increase the quality of the product and tighten up on the integrity which we have always tried to be at the forefront of.” EveryMatrix’s ‘The State of Esports Betting Report 2020’ revealed a 40% growth in betting volume between 9
March and 19 April, with a particular emphasis on the rise of sports-centric titles such as FIFA and NBA. However, during the panel, Smith and Krasnovsky highlighted that sportsbooks
ONE THING THAT PEOPLE DON'T UNDERSTAND ABOUT ESPORTS IS THAT NOT EVERY ESPORTS GAME IS GOOD FOR SPORTS BETTING must carefully select which titles to offer markets for, as not every game is compatible with betting. Smith said: “One thing that people don’t understand about esports is that not every esports game is good for
SPORTS BETTING
Andrea McGeachin, Neosurf’s CCO
sports betting. You can play esports but is it a good betting option? Or is it set up in order to take bets on it?” Krasnovsky added: “Counter Strike: Global Offensive is very simple to understand in terms of meta-games; it has very similar attributes like tennis. “There will be titles which won’t be successful, maybe for example Heros of the Storm, this is a title published by Blizzard. The game was very similar to League of Legends but this game was not successful in the esports and the esports betting scene. The reason was that it was very difficult to have success against a similar sport because they already had to compete against strong titles like Dota and League of Legends.” The panel, sponsored by Oddin
and moderated by Neosurf’s CCO Andrea McGeachin, concluded with an emphasis on esports’ target market and how sportsbooks can tap into this generation.
ESPORTS IS JUST ONE COMPONENT OF A SUCCESSFUL COCKTAIL. IF SOMEBODY WANTS TO BUILD SOMETHING OF WORTH THEY HAVE TO LOOK BEYOND IT TOO, LOOK AT MILLENNIALS Portnov added: “Esports is just one component of a successful cocktail. If somebody wants to build something of worth they have to look beyond
esports, look at millennials. Build a product where you have all the entertainment, memes, hype, kind of bizarre absurd humour and blend esports into it as well as traditional sports. This could be a success. “Think about millennials and do a product for them, put esports maybe at the centre, but don’t limit it to esports.” Smith concluded: “Millennials love influencers so to go forward and have that leads us (the betting industry) in the right direction.” SBC’s first virtual conference highlighted the importance of the esports betting industry through a variety of its panels, with traditional bookmakers and operators also discussing how the industry has used competitive gaming to fill the void left by live-sports. •
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US MARKET
Eyes on the tribes
US MARKET
INDIAN GAMING IS ABOUT PROVIDING GOVERNMENTAL REVENUE TO SUPPORT IMPORTANT PROGRAMMES AND SERVICES
Jonodev Chaudhuri, Partner at Quarles & Brady LLP
INDIAN COUNTRY WILL TAKE VALUABLE LESSONS FROM THE CORONAVIRUS EXPERIENCE FAIL TO PREPARE AND PREPARE TO FAIL was one of the
key messages to come from the tribal gaming sector during the recent SBC Digital Summit alongside the view that nothing ever comes easy in Indian Country
T
he effect of the COVID-19 virus on the US casino and sports betting sectors has been all-consuming, with terrestrial facilities feeling the brunt through enforced closures and extensive furloughing of staff. But there has been another unwanted, and entirely unnecessary,
consequence of the pandemic according to some in the tribal gaming sector who feel that Indian Country was left out in the cold when it came to receiving vital government aid. The argument stems from the Coronavirus Aid, Relief, and Economic Security Act (CARES), more specifically a component contained therein called
the Paycheck Protection Program (PPP). PPP aims to provide small businesses with the resources they need to maintain their payroll, hire back employees who may have been laid off, and cover applicable overheads. Essentially, tribal leaders complain that they have had to fight their way into the program, which promised $349bn of funding to help small businesses navigate the coronavirus, rather than be automatically included. The US Treasury did eventually alter its stance to allow tribal access to PPP, but only after a concerted effort on the part of tribal leaders. And crucially, the initial round of funding had dried up, leaving tribes stuck in a growing
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Eyes on the tribes backlog of claimants needing a cash injection to survive the health crisis. The experience has clearly left its mark on Indian Country and served as a valuable lesson learned that preparation is key to ensuring tribal interests don’t get left off the table in future.
Sheila Morago, Executive Director of OIGA
IT JUST GOES TO SHOW THAT NOTHING COMES EASY IN THE WORLD OF POLITICS, POLICY OR BUSINESS Driving home that point was Jonodev Chaudhuri, Partner at Quarles & Brady LLP, during the recent SBC Digital Summit. Speaking on a tribal gaming panel alongside Sheila Morago, Executive Director of OIGA; and Conrad Granito, General Manager of Muckleshoot Casino, he said that access to PPP had been hard fought. Addressing the summit, he said: “Tribal gaming is inherently different from commercial gaming or any forprofit activity. Indian gaming is about providing governmental revenue to support important programmes and services. In the initial iteration of the CARES Act, tribal gaming organizations were left out and were not able to receive support through PPP. “Indian country has been uniform and unified in pushing for that inclusion. Because of those efforts and because of an outcry from tribal leaders across the country, the Treasury reversed itself and said for limited purposes, for businesses with 500 employees or less, tribal gaming operations are eligible.” He added: “It just goes to show that nothing comes easy in the world of politics, policy or business. And PPP is one example of Indian Country being again left out until enough pressure was applied, to be included.” Emphasising the importance of an
IF THIS EVER HAPPENS AGAIN I THINK WE’VE LEARNED OUR LESSON IN MAKING SURE WE HAVE THOSE STATISTICS ON HAND AND READY TO GO SO THAT OUR ADVOCATES CAN DO THEIR JOB
20 SBC MAGAZINE • JUNE 2020
Conrad Granito, General Manager of Muckleshoot Casino
US MARKET
evidence-based approach to working with government, Morago commented: “The PPP program was something that we definitely had to advocate for. Federal government looks at numbers and statistics. Stories don’t really sway them any more. We were lacking in some of those data points that they needed to make our case. “A large number of tribal facilities are in that area of 500 or less employees so technically they should have been eligible right away for the first round of PPP. It wasn’t until the second round that that happened. If this ever happens again I think we’ve learned our lesson in making sure we have those statistics on hand and ready to go so that our advocates can do their job.”
Chaudhuri agreed, adding: “When legislation happens and policy is shaped, oftentimes it happens fast. And it’s been humbling to watch how quickly Indian Country was able to
THE FIRST ONE IS DATA AND THE SECOND ONE IS GOODWILL BASED ON INFORMATION AND EDUCATION mobilise around some of these issues like PPP or the stabilisation fund and how quickly tribal leaders across the country were able to make their positions known. “But you have to have certain things
in the can, so to speak already, to be able to mobilise quickly. And you can only mobilise to the extent that these things are in the can. The first one is data and the second one is goodwill based on information and education. “When I was at NIGC we would regularly meet with new members on the hill. We’d meet with our counterparts at other federal agencies and it was always incredible to me that the same education process that my mentors had to do 30 years ago still had to be done almost on a daily basis to let folks know what Indian gaming is. “It’s not about enriching shareholders or stock owners. While that’s a respectable avenue in the private business arena, that’s not what Indian gaming is about.” •
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Sports betting alternatives
US MARKET
ALTERNATIVE CONTENT GOOD ‘FILLER’ BUT NO SUBSTITUTE FOR REAL SPORTS JASON SCOTT, VP OF TRADING AT ROAR DIGITAL, praised the industry’s response to COVID-19 but suggested that non-traditional sports content such as table tennis will “duck back into obscurity” in terms of wagering when the big US sports return
S
cott was part of a panel discussing alternatives for sports betting when traditional sports are shut down, held as part of the US Track at the inaugural SBC Digital Summit. The panellists started by talking
about some of the sports to capture headlines over recent weeks, particularly table tennis, Nicaraguan soccer and Taiwanese baseball. Jamie Shea, Head of Sportsbook Digital at DraftKings, said: “While sports are on hiatus, DraftKings isn’t.
Jason Scott, VP of Trading at Roar Digital
Some of the stuff we’ve put out there is not traditional content. “Table tennis was not high on the list before, but people have really embraced it. I’m excited to see what it will look like when traditional sports come back. I think that one of the
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Sports betting alternatives
Jamie Shea, Head of Sportsbook Digital at DraftKings
I THINK THAT ONE OF THE SILVER LININGS IN ALL OF THIS IS THAT THERE’S BEEN A LOT OF NEW FANS CREATED FOR NON-TRADITIONAL MARKETS silver linings in all of this is that there’s been a lot of new fans created for non-traditional markets.” Max Bichsel, VP for US Business at Gambling.com Group, admitted that you “have a giggle” about how popular some of these markets have become before adding: “If you can get a new depositing customer in this environment, it’s really a testament to how strong the operators are, how strong the experience is and ultimately how strong the product offering is. You start to see a real delineation between the strong operators and the weaker ones.” Keith O’Loughlin, SVP for Sportsbook
24 SBC MAGAZINE • JUNE 2020
Max Bichsel, VP for US Business at Gambling.com Group
& Platforms at SG Digital, agreed that customers have been “switching in droves” to alternative content. To emphasise this point, he shared: “We’ve seen customers in APAC (Asia Pacific) holding 70-80% of previous turnover and customers in Europe between 30 and 50%, while in the US anything between 15 and 45%.” However, Scott said he had a bit of a different take on this. He explained: “We’re in peculiar times. For people that haven’t lost their job, they’ve never had more disposable income and more time. My suspicion, in fact my guarantee, is that when the NBA and MLB are back we’ll write as many bets for table tennis in November as we did last November – none. “People have adapted because they want to spend their money. These sports are a great adaptation, something for people to take away the mundaneness of living at home. Long term, though, it will have no effect on how any of the markets go. As a
MY GUARANTEE IS THAT WHEN THE NBA AND MLB ARE BACK WE’LL WRITE AS MANY BETS FOR TABLE TENNIS IN NOVEMBER AS WE DID LAST NOVEMBER – NONE wagering option, they’ll duck back into the obscurity they’ve always been.” The discussion then turned to the potential for virtual sports and esports in the US. Scott argued that the growth opportunity is more on the virtuals side, adding: “In esports, there’s so many concerns there with underage participants and integrity issues. I don’t think that’s going to grow but the other side will continue on.” The panellists all agreed that virtuals are great ‘filler’ content and can provide a good option for those who want more action after a sports event has finished, but doubted whether its popularity in the US would ever reach
US MARKET
Keith O’Loughlin, SVP for Sportsbook & Platforms at SG Digital
European levels, let alone those in Africa. Bichsel said: “Virtual horseracing is maybe a little bit of a different conversation, but if you’re talking about virtual sports in general it’s effectively a sugar substitute. If the NFL starts back up, that’s the king. It’s the real deal and what people are looking for. There is no comparison for real-life sports.” Shea added: “I do agree that virtual sports are a filler product. We are going to be releasing that we have a deal with Inspired. In the next two weeks we should be getting virtual sports up on our site so it's going to be really interesting to see the data. I have worked with virtual sports before as an operator. When the game is over, people still want to have action so it really allows that for those down-times when there's nothing going on.” The session’s moderator Robert Davidman, Partner at Slapshot Media, then looked to the short-term future
WE’VE SEEN CUSTOMERS IN APAC HOLDING 70-80% OF PREVIOUS TURNOVER AND CUSTOMERS IN EUROPE BETWEEN 30 AND 50%, WHILE IN THE US ANYTHING BETWEEN 15 AND 45%
for live sports in the US, including the possible impact on the betting market should we see a phased or gradual return to action. This might mean that sports are played out in front of reduced crowds, or perhaps a whole league’s matches squeezed into a single state - something that would have big
continue the alphabet analogy - a backwards L shape recovery. It'll go right back to what it is. I don't think it'll be a matter of days, it'll be a matter of hours. The amount of deposits coming in will be astronomical.” Scott replied: “I'm probably a bit more tepid on the return of the wagering dollar. There is no doubt in my mind that sport played without spectators will reduce engagement. Therefore, I think it's more of a gradual drive back rather than coming back at the total turnover dollar where it was when sport ended.” Wrapping up the session, a question came from the audience about the potential for political or novelty betting in the US, which Davidman put to the panellists. Bichsel replied: “We had a little bit of a false start in West Virginia with some election betting, but markets like that are definitely attractive. New Jersey has stuff where you can wager on Oscars or certain novelty bets that drive some stickiness to the customer. However, I don’t expect the US to adopt the level of novelty bets we see in Europe.” Meanwhile, Scott bemoaned the wagering opportunities that the US
VIRTUAL HORSERACING IS MAYBE A LITTLE BIT OF A DIFFERENT CONVERSATION, BUT IF YOU’RE TALKING ABOUT VIRTUAL SPORTS IN GENERAL IT’S EFFECTIVELY A SUGAR SUBSTITUTE ramifications for the pricing of betting markets given that there would be no ‘home field’ advantage. There were contrasting views from the panelists about how quickly preCOVID wagering levels would return, particularly if there were no fans allowed in the stadiums. “With the economy, they expect a U or a V shaped recovery,” said Bichsel. “For live sports, I think you'll see - to
market is missing out on by restricting political markets. He highlighted: “The 2016 election in America is the largest betting event the world has seen – it still hasn’t been surpassed. “I had a look on Betfair this morning and there’s been $36m matched on who will be the next US president. The sooner we can broaden our base and bring this option to our clients will be fantastic for wagering in this country.” •
sbcmagazine.com 25
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Road to recovery
US MARKET
LAS VEGAS BACK TO NORMAL BY 2022
CAESARS ENTERTAINMENT’S JAN JONES BLACKHURST
looks back on her time working in the US betting space, touching on her successful tenure as Mayor of Las Vegas as well as her most recent work as part of the Caesars group
I
n the SBC Digital Summit session titled ‘Fireside Chat - In Conversation with Jan Jones Blackhurst’, the Caesars board member - who holds the honour of being the first female mayor of Las
Vegas - opened up by discussing her time in the role. “What is interesting about Las Vegas is that the mayor is the mayor of the city solely, but the mayor has always stood for something,” she said. “It's a city that everyone knows about and is interested in. The title brings with it responsibility that when you speak, many people are going to think you're speaking for a broader whole. “When I was the mayor, most of the gaming was on the strip. I helped the city grow revenues from $15m to $35m and in that time it was collaborative, everyone worked together to make it the number one resort/convention city but also a great city in general.” Moving on to discuss life postCOVID, Blackhurst discussed the term ‘deep hospitality’ and explained to those viewing that it would be vital
LAS VEGAS IS GOING TO HAVE A LONG CLIMB AFTER COVID TO GET BACK TO WHERE WE WERE TWO MONTHS AGO in the regeneration of Las Vegas following the eradication of the health crisis. She stated: “Deep hospitality means being sensitive to your customer base. So you have to meet the criteria of a broad customer need, speak their language, understand where they are coming from and realise what they need. Going forward that will be key to our revitalisation. “We need to find a way to build on our hospitalities whilst breaching these
sbcmagazine.com 27
Road to recovery
LAS VEGAS IS GOING TO HAVE A LONG CLIMB AFTER COVID TO GET BACK TO WHERE WE WERE TWO MONTHS AGO
COVID barriers. We need to make people feel that they want to come back and we will need to be very deliberate as to how we look at it as a city and individual operators. “Las Vegas is going to have a long climb after COVID to get back to where we were two months ago. “We have to find a way to ensure all the healthcare things we want in place don’t become barriers for people who want to come. Las Vegas is fun, it's where people want to be and it's somewhere to come and enjoy who you are. We have to keep it safe but find a way to sustain that energy, to let people know this is still the
28 SBC MAGAZINE • JUNE 2020
I HOPE THE INDUSTRY SEES THAT WE NEED TO LEGALISE ONLINE AND SEE THAT IT IS PART OF THE OVERALL GAMING EXPERIENCE place you want to go to. “Whether it's providing thermal temperatures or other defenses against the illness, we need to be careful that these give you a sense of security and are not barriers. Las Vegas has been able to reinvent itself several times and this is a time where
we will have to do that again and I have no doubt we will successfully.” The former Las Vegas mayor also took some time to give her thoughts on the medium of online betting and the opportunities that come with it. She acknowledged the boom seen by online operators due to the closing of brick and mortar casinos, and reiterated the need for it to be legalised across the US. “I've been a strong advocate for online betting, sports and poker for a long period of time,” she added. “It's not competitive, it's collaborative. We were limited by people being nervous
US MARKET about online. Now people have nowhere to go so the limited online we offer is exploding. I hope the industry sees that we need to legalise online and that it is part of the overall gaming experience. “I think states will be interested but I think they need to understand it is different to brick and mortar. Online is important to our future and I hope the industry coalesces around this and states work together to make it happen. It's a great opportunity to meet new users and eventually bring them back and entice them to your brick and mortar operations. “People like to bet, most people bet for the sport of it. We're concerned for those with disorders but that's 1% of the overall usership. Legalising gaming online is the way of the future. People like it, they want to bet on their phones easily, they enjoy it and they like the fun. “Making it difficult to access does not prove any points. States like New Jersey that legalised all aspects of it found that it brought new customers which resulted in crossover play - it didn't cannibalise the market.” Aside from her successful career, Blackhurst is also considered to be a trailblazer for women within the industry. On the topic of diversity within the betting sector, she commented: “Diversity is not a feel good initiative, it's a strategy to get the best performance. When I talk about reimagining the city we need diversity to get different ideas and different inputs. “The purpose today is a best business practice, if we want to come back as an industry we need diverse thinkers and diverse thinkers mean you need women, people of colour, white men, everybody. Now more than ever, inclusivity and different mindsets will make the difference in having a huge going forward success or failure. “People have a tendency to look at diversity as an initiative. Diversity is a strategy, it has to start with your CEO and begin with unconscious bias training. It's changing the processes of hiring and retaining people. Changing from top to bottom, changing the way you review, the way you interview, the wording of job openings etc. “You need to start at the top of the organisation and mean it. The outcome will see you become a
I THINK ONLINE GAMING COULD BE A ROBUST PIECE OF THE INDUSTRY COMEBACK AND I THINK LAS VEGAS ABSOLUTELY COMES BACK BUT IT WILL BE SLOWER higher performing company. Now more than ever we need to use diversity to look for our hospitality solution because if we continue as we have for the last few years we will hit problems.” Finally, the Caesars board member looked to the future of Las Vegas, offering her thoughts on a return to glory for the gambling hub and what is required to get there. She concluded: “We have to start thinking about how we can still keep the energy, hospitality, excitement and
WE NEED TO THINK ABOUT HOW TO PRESERVE THIS INDUSTRY AND HOW WE MAKE SURE THAT FIVE YEARS FROM NOW WE ARE PROUD OF HOW FAR WE HAVE COME safety. Is there something we can build into the security that makes you feel safe? I don't know. We don't have all the answers but we need to think outside of the box, we need the greatest minds. It’s going to be different but we need to tap into that energy with an
enhanced level of safety. “What I think will come back first are local casinos. I think online gaming could be a robust piece of the industry comeback and I think Las Vegas absolutely comes back but it will be slower. I think the Tribes will come back quickly but I think Las Vegas follows that. “We’ll have to be more thoughtful. We depend on airlines so we need air traffic to return to what it was before COVID-19. I think 20% of our visits are international so we need to work on giving those travellers not only the
ability but also the comfortability to come back. My crystal ball says by the end of 2022 we’ll see Las Vegas back to normal. “I think we’re one of the most creative industries in the world. Now more than ever we need to work together and believe in ourselves. We need to find ways to bring the industry back. It's a time where being competitors isn't in our best interests. “We need to think about how to preserve this industry and how we make sure that five years from now we are proud of how far we have come.” •
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LATAM MARKET
Regulatory soap opera
LATAM MARKET
BRAZIL: POLITICAL BLUSTER HIDES AN INCOMPLETE JIGSAW THE SBC DIGITAL SUMMIT PANEL on Brazil’s betting
market outlined the political twists and turns in developing the country’s federal framework
E
ntering 2020, industry narrative pointed towards Brazil being home of the next big market opening for the betting industry. However, betting leadership and on-the-ground stakeholders have been left frustrated by a continued delay in regulatory proceedings and lack of transparency in policy-making. Moderating the Brazil Market panel at the SBC Digital Summit, Christian
Tirabassi - Senior Partner of Ficom Leisure - questioned whether operators can capitalise on any early market movements, amid punctured regulatory developments. Sao Paulo based lawyer Neil Montgomery, Managing Partner of Brazilian Law Firm Montgomery Associados, gave an overview of Brazil’s radical political makeover, in which the Jair Bolsonaro government has made sweeping changes during
its first year in power. Montgomery described Brazilian betting’s legislative journey as a ‘true soap opera’, in which a novice government has been tasked with completing a two-year policy schedule to deliver Brazil’s first federal sports betting framework. “Approved by the last government in 2018, the law established a twoyear timeframe for the Ministry of the Economy to develop its regulations,” Montgomery explained. However, sweeping departmental changes in 2019 saw the Ministry of the Economy fail to publish its proposed framework and form the legal basis for a federal decree. Proposals appear to be stuck in a never-ending ‘public consultation phase placed’ under the remit of SECAP - the agency tasked by the Ministry of the Economy to deliver betting into law. Having sanctioned its third open consultation, SECAP bluster stated that it has received its ‘richest feedback from stakeholders’. However, Montgomery detailed scepticism in achieving actual legislative progress. He added: “There is still a lot
sbcmagazine.com 31
Regulatory soap opera
Neil Montgomery, Managing Partner of Brazilian Law Firm Montgomery Associados
Christian Tirabassi, Senior Partner of Ficom Leisure
of uncertainty, as the latest draft does not contain information on how licensing invitations will be launched and what actual concession agreements will look like. “The jigsaw is incomplete, as we don’t know what the financial reserve will be, what bidding prices will be asked for…we are still in the dark for many things that have been requested.” Andre Gelfi is the CEO and Cofounder of Suaposta, which operates Brazil’s only regulated digital wagering domain for horse racing. He shared Montgomery’s frustration as Brazilian betting continues to be maintained as an ‘offshore market’. However, Gelfi, who will be tasked with leading Betsson AB’s Brazilian charge once the market opens, noted significant on-the-ground disruptions following the COVID-19 pandemic, which may advance the government’s agenda. “Brazil has followed the global phenomenon, and we are witnessing the migration of offline players
32 SBC MAGAZINE • JUNE 2020
choosing to wager online,” said Gelfi. “For Suaposta this has been positive as offshore customers have come back, choosing to wager on our legal horseracing vertical.” Asked to detail COVID-19 political
BRAZIL HAS FOLLOWED THE GLOBAL PHENOMENON, AND WE ARE WITNESSING THE MIGRATION OF OFFLINE PLAYERS CHOOSING TO WAGER ONLINE impacts, and whether SECAP’s will revamp its policy as an embattled government seeks to regulate sports betting and further tax-generating industry verticals such as the popular bingo, Gelfi urged caution over optimism. “In terms of regulating further products, I don’t see why that cannot happen,” he said. “But I won’t dare risk my opinion on our congress!
“At the moment, everything that happens in congress is a lottery. It's impossible to predict. I have to also take into account that Brazil will also host municipal elections in October, which could change the roadmap.” Working with new owners Betsson, Gelfi stated that Suaposta has maintained its focus on a single sports betting vertical being regulated amid Brazil’s ongoing political turmoil. His comments led to Tirabassi probing the panel on ‘future steps’ and pre-market initiatives that can be undertaken by interested foreign incumbents. Responding from experience, Montgomery said that ‘planning is key’ as foreign actors will likely be forced to establish some form of business presence within the country, with legal requirements yet to be specified by SECAP. Montgomery explained: “The law so far expressed that operators will only receive licences if they are Brazilian companies.”
LATAM MARKET
INTERESTED FOREIGN OPERATORS NEED TO DO THEIR HOMEWORK AND PLAN AHEAD
Andre Gelfi, CEO and Co-founder of Suaposta
incumbents against taking a soft localisation approach, adding: “With regards to local protections, I’m sure that BNDES will be forced to maximise the value onshore. I don’t want to go much further, but the bank will inhibit offshore activities.”
Observing grey areas within the government’s demands, Montgomery added: “In the timeframe, interested foreign operators need to do their homework and plan ahead. This may require establishing a business partnership, subsidiary or holding company.” However, Montgomery forewarned that homework does not imply that an operator will secure their desired license, as government agencies continue to dispute the type of licensing model Brazil should adopt. On this key agenda of licensing procedures, Gelfi highlighted the intervention of BNDES Brazil’s National Development Bank as a critical development that stakeholders should follow. Gelfi welcomed the oversight and influence over licensing procedures of BNDES, as an agency that will get serious on delivering a cohesive federal framework for businesses.
However, he warned that BNDES interventions may see foreign actors disappointed, as post-pandemic Brazil’s national bank will likely prioritise terms favouring established domestic enterprises over international incumbents.
WE KNOW THAT FOOTBALL WILL BE 95% OF THE MARKET AND THE CLUBS SHOULD BE ABLE TO DEMAND BETTING PARTNERSHIPS AND SPONSORSHIPS “BNDES… these guys are serious and will go into detail reviewing the framework,” said Gelfi. “In my opinion, they will run a model that will seek to maximise value for home enterprises. And when they do, things will change drastically.” Branding BNDES oversight as a game changer, Gelfi warned foreign
Adding ‘some spice to discussions’, Arthur Silva - Head of Sports for cryptocurrency operator Sportsbet.io - noted that favouring local enterprises clashes with Brazilian football’s aspirations. Silva views Brazilian football clubs as the market’s most influential political actor. “Brazilian football is not solvent, most of its clubs are buried in debt, with some on a lifeline if incomes do not come back quickly,” he responded. “The big picture points towards football being the first sector to harvest the benefits from the industry. I expect pressure to come from the clubs and leagues, who are powerful in how the law will be reshaped.” Silva explained that local protections should be geared towards Brazilian football and its need of vital funding - a mandate that cannot be achieved should BNDES pursue a nativist agenda. He continued: “Who can blame them? They see betting as a new wave of investment. We know that football will be 95% of the market and the clubs should be able to demand betting partnerships and sponsorships. “What Andre said is true. But if they want to prioritise an industry that protects jobs, that should be football. The clubs want their Pounds, Dollars and Euros coming from abroad… that is the case for offshore businesses to come to Brazil.” The panel concluded by agreeing that diverse stakeholders and political players will have to surrender numerous concessions in order to complete the ‘betting jigsaw’ within its allotted time frame… and that no one will be satisfied once the pieces fall into place. •
sbcmagazine.com 33
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Competing with illegality
LATAM MARKET
COLOMBIA NEEDS TO PROTECT OPERATORS FROM UNFAIR COMPETITION THE SBC DIGITAL SUMMIT
discussed the current situation for the leading regulated betting market in Latin America, before asking ‘What’s next for Colombia?’
Evert Montero Cárdenas, president of Colombian trade body Fecoljuegos
T
he land-based industry in Colombia is the biggest contributor to the health sector, with 61% of its resources. But the vertical is also the one that has been suffering the most, since all casinos and bingo halls are closed, according to Evert Montero Cárdenas, president of Colombian trade body Fecoljuegos. “In this type of business, we depend on the daily cash flow, which covers the high operational expenses,” he added, and said that even if they could open shops, it wouldn’t be profitable since the economy is still not ready. During the panel, Juan B. Pérez Hidalgo, the president of the national gambling regulatory agency Coljuegos, announced that Colombia approved online operators to offer live casino content. This aims to provide them with more tools to mitigate the effects of COVID-19 and the lack of sports activity. According to Montero Cárdenas, even if this relief intends to cover operational costs, the land-based sector is still at risk, and the sustainability of the sector has become a challenge. The head of Fecoljuegos
HALF OF OUR INCOME COMES FROM BINGOS AND CASINOS, SO WE WANT THE SECTOR TO DO WELL
sbcmagazine.com 35
Competing with illegality said that it is necessary to integrate those operators in the live casino business: “This is a call for them to give a look at this sector and, following all precautions, allow them to reopen if possible.” “We will make all the necessary arrangements with the Ministry of Health and with the President so the land-based sector can restart operations. Half of our income comes from bingos and casinos, so we want the sector to do well,” added the Coljuegos president. Due to the closure of stores and the mandatory lockdown measures, users have turned to online channels, leaving local operators at risk and encouraging the illegal market.
Juan B. Pérez Hidalgo, the president of the national gambling regulatory agency Coljuegos
WE’LL CARRY OUT AN INTENSE INITIATIVE WITH BANKS SO THEY UNDERSTAND THAT WITH THESE ILLEGAL PAYMENT SERVICES THEY’RE LOSING RESOURCES THAT COLOMBIA CURRENTLY NEEDS Pérez Hidalgo said: “We have blocked around 3,500 websites - in collaboration with the Ministry of Information and Communication Technologies - but we have found that the sites migrate very easily: we block them and they use different domains or change a letter from the original one. “So we’ll carry out an intense initiative with banks so they understand that with these illegal payment services they’re losing resources that Colombia currently needs.” The president of Fecoljuegos said that the regulator’s work is essential, and that they need to focus on the financial area, which “is the best way to hit illegal operators”. But he stressed that there’s still much more work to do, as there are currently unlicensed international operators competing with local companies and creating “unfair competition”. He added: “We have asked the president that all current illegal platforms be banned for five or 10 years.” Montero Cárdenas said that he has invited many Latin American countries to agree on a measure that would ban an operator from their jurisdictions if
36 SBC MAGAZINE • JUNE 2020
they’re operating illegally in a different one. He explained that it is unfair that people who have invested in Colombia have to compete with “companies that break the law”. “The sector at this time can no longer compete with illegality because the margins are very short, this is a
THE SECTOR AT THIS TIME CAN NO LONGER COMPETE WITH ILLEGALITY BECAUSE THE MARGINS ARE VERY SHORT, THIS IS A VOLUME BUSINESS
LATAM MARKET
Julio César Tamayo, CEO of Wplay
bookmaker led by Julio César Tamayo has managed to position itself as the brand with the largest market share, and in 2019 that growth helped set an alliance with online gaming giant Playtech. Tamayo revealed that the integration process with Playtech is still in a technology transfer stage. The crisis delayed the schedule, but the strengthening and knowledge that Playtech will provide is more important than rushing the process. He said: “Colombians are innovators, the fact that we have ventured into the industry as pioneers gave us big opportunities and advantages. But the knowledge and the marketing tools that we can integrate thanks to Playtech will take us a step further.”
WE FEEL VERY BAD ABOUT FOOTBALL, WE’RE WAITING FOR THE POSSIBILITY TO RESUME GAMES WITHOUT THE PUBLIC
volume business. The best they can do is leave the country,” Montero Cárdenas added. On the other hand, the president of Coljuegos believes that closing the market is unnecessary, and that they plan to leave it open for “whoever wants to participate in it”. He added: “Some are
stronger than others, but this market is open to whoever wants to enter.” The success of the online regulation in Colombia has allowed local companies like Wplay (Aquila Global Group) to establish itself as a leading platform. Less than three years after it landed in Colombia, the
Wplay has sponsored the nine biggest football teams in Colombia, such as Atlético Nacional, América de Cali and Millonarios FC, and the Colombian Olympic Committee (COC). The agreement with the latter was expected to end after the Tokyo Olympics in August, but Wplay has decided to extend it at least until the end of 2020 to reevaluate the situation. Tamayo explained: “We feel like this is not going to stabilize soon and many clubs are financially affected. Dimayor - the organization in charge of operating football leagues in Colombia - has organized esports tournaments, which have been broadcasted on TV. “They have many followers but before we bring new products to the market, we must understand this is a learning process for the user, we must gain their trust and be clear. “We feel very bad about football, we’re waiting for the possibility to resume games without the public. I think it’s a good option for all of us, sports is very affected and in a very unfortunate economic situation.” He concluded: “But we will continue to sponsor teams, we have contracts and we must fulfill those obligations. We also hope to make a profit when activity resumes.” •
sbcmagazine.com 37
CASINO
May the Forste be with you
CASINO
LEOVEGAS MEANS BUSINESS UNDER NEW COO MÅRTEN FORSTE is focused on people, tech, culture and providing a 'best in class' customer experience for players on LeoVegas to navigate the COVID-19 crisis
M
årten Forste may privately have hoped for calmer waters to smooth his transition from Board Chairman to COO at LeoVegas. However, he told SBC Magazine that these are "exciting times" for the operator. He also explained why it has seen a neutral - or only slightly negative - impact on revenues for its home market, combined with an international increase as the gaming market shifts from land-based to online.
WE HAVE MANAGED TO RECRUIT SOME OF THE BEST PEOPLE AND BUILT A FLEXIBLE AND SCALABLE ORGANISATION THAT CAN ADAPT TO MARKET NEEDS
sbcmagazine.com 39
May the Forste be with you
WITH CLOSE TO 10% OF OUR EMPLOYEES WORKING IN ROLES LINKED TO COMPLIANCE AND RESPONSIBLE GAMING, I THINK IT IS CLEAR TO ALL THAT WE MEAN BUSINESS
SBC: Could you be taking the COO role at a more critical time for LeoVegas? MF: I’d like to think that I am taking the role at incredibly exciting times. The company has had and will continue to have a focus on growth and efficiencies while maintaining leadership in terms of customer experience and innovation. With an industry in constant development and – for some markets - with increasingly complex and uncertain regulatory framework we are in a very good position. We have managed to recruit some of the best people and built a flexible and scalable organization that can adapt to market needs, all supported by a diverse revenue base and the advantage of a proprietary tech platform. SBC: What sort of approach can we expect from you? What have you learned, both from your time on the Board and from your work in other sectors?
40 SBC MAGAZINE • JUNE 2020
MF: I spent many years with the market leader of dating products before joining LeoVegas. In addition to the obvious learnings you get in a media driven B2C company with focus on the customer experience, I was fortunate to work on the re-organization and go to market strategy for Europe. At the time, the rationale for the project was a changing
coping with the COVID crisis; what steps have you taken and what trends are you seeing? MF: First and foremost, we have prioritised the safety of our employees, hence we have been working remotely for a long time. It has been both interesting and impressive to witness the willingness of all colleagues to ‘make it happen’ and thus the results
IT HAS BEEN BOTH INTERESTING AND IMPRESSIVE TO WITNESS THE WILLINGNESS OF ALL COLLEAGUES TO ‘MAKE IT HAPPEN’ AND THUS THE RESULTS THAT HAVE BEEN DELIVERED media landscape. From an overall perspective, I believe it is important to understand and adapt to the fact that all mechanics of the business change rapidly. It goes for gaming as well as for other tech industries. What was best practice last year or even last quarter may not, or is in fact most likely not, the case any longer. SBC: In general, how is the business
that have been delivered. On the business, also shared when reporting Q1 earnings, our opinion is that the crisis has had a neutral to slightly negative revenue impact for LeoVegas in the Swedish market. For our international revenues, the assessment is that those have increased somewhat relating to market shares moving from land-based to online gaming.
CASINO
SBC: What is driving growth at LeoVegas when comparable businesses are not doing as well? MF: People, tech, culture and a best in class customer experience. Over time we have invested in all of them and they have been paramount when working together in building our position as King of Casino. Adding to this are the efforts made on sustainability (ESG) and a thorough knowledge of compliance and regulatory frameworks. SBC: LeoVegas recently announced a focus on sustainability, responsible gaming and positive developments in society; what will that look like in practice? MF: All of this is on top of our agenda. We are determined to continue showing progress and believe in measuring our efforts. With close to 10% of our employees working in roles linked to compliance and responsible gaming, I think it is clear to all that we mean business.
In addition to the development we do internally to secure a safe gaming environment, we are running the message in paid media campaigns. We are setting ambitious targets on customer interactions and the usage of our responsible gaming tools.
YOU MAY SEE US TAPPING INTO A NEW VERTICAL AND I THINK IT IS A SAFE BET THAT WE WILL SEE GAME SHOWS GETTING A BIT MORE EXPOSURE I am also very excited to see the Board strengthen with the addition of Mathias Hallberg, a professor in molecular addiction research at Uppsala University. SBC: Nearly a year and a half on, how's it going in Sweden? Is the market there tougher than many had anticipated? MF: I do not think the market is tougher.
What is unique and a disadvantage for the Swedish market is the lack of predictability in terms of regulatory framework and sanctions. The administration has created a solid regulatory framework, including the tools needed to create a functional, safe gambling environment and a functional marketplace – but with evidence in the continuous changes and actions to it, they chose to reject their own product. SBC: Can you tease any innovations/ launches to expect from you in the next 12-18 months? MF: A large part of innovation is in the details. We will continue to focus on the best customer experience and for that to happen you need to have a seamless experience from sign-in – to game selection – to payment and so on. You may see us tapping into a new vertical and I think it is a safe bet that we will see Game Shows getting a bit more exposure. And of course, in all of what we do, we will strive to add features for personalization. •
sbcmagazine.com 41
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CASINO
ALEX TOMIC: INNOVATION ON HOLD DESPITE ONLINE CASINO GROWTH SLOTSMILLION CEO ALEX TOMIC shares the view
SlotsMillion CEO Alex Tomic
that business for online casino operators has been growing as a result of COVID-19 and the subsequent live sports shutdown, but admits that it has put a brake on new innovation for the sector
T
omic was speaking on the panel titled ‘Gaming – the industry’s lifeline’, held as part of the second-day Leadership in Gaming track at the inaugural SBC Digital Summit. He explained: “Business is growing because people are staying at home. We can do what we used to do before, but we can’t continue like this for months. For me, it’s a maintenance status – we are able to do business as usual, but we are not able to do new things.” In terms of the revenue spike, Tomic added: “What we see in terms of increase we know is probably not going to be sustainable. Let's face it, if this crisis goes on people will cut spending that is not necessary and gambling is going to be one of the first ones.” Itai Zak, GoWild Gaming CEO, agreed: “We all understand that this is something temporary, we understand that this is something that is a side-
IT’S A MAINTENANCE STATUS – WE ARE ABLE TO DO BUSINESS AS USUAL, BUT WE ARE NOT ABLE TO DO NEW THINGS
sbcmagazine.com 43
Industry lifeline
Videoslots CEO Alexander Stevendahl
effect of the current situation. I don’t believe anybody is counting on this pattern to be sustained for the very, very long-term. “We need to act responsibly, we need to understand that the players we have now are much more vulnerable, they are much more at risk of developing, let's say, compulsive behaviour. And as a responsible operator, we are making sure that we keep the safety of our customers as a very, very high priority.” Ariel Reem, Genesis Group CEO, talked about how his company has adapted to the new way of working. He commented: “We are still growing, we are going into more projects and initiatives. For those who are more focused on casino products – it’s not
AS A RESPONSIVE OPERATOR, WE ARE MAKING SURE THAT WE KEEP THE SAFETY OF OUR CUSTOMERS AS A VERY, VERY HIGH PRIORITY
44 SBC MAGAZINE • JUNE 2020
a big difference apart from how you manage people remotely.” Meanwhile, Videoslots CEO Alexander Stevendahl said: “We have seen an increase in business, however we don’t see players spending more. This is still at the same level – in fact some are actually spending less. But we do have more customers.” Tomic then clarified his comment on innovation, or a current lack of it,
by adding: “It’s not that innovation is frozen, but obviously what we’re trying to do is to learn how to all work remotely together. We’re used to doing it but not all at the same time. “I believe that for innovation, you need the physical presence. I don’t think that if this [COVID-19 crisis] goes on for six months we will completely stop innovation, but to be honest – for the moment at least – it is
CASINO completely on the side.” He also took the chance to air his views on the potential exploitation of COVID-19 from a branding and marketing standpoint. “There's two ways I've seen it,” he said. “Firstly, companies that go to hospitals. They would go with a car, make all the marketing communication around it. I think it's poor. It is cheap - you can spend €50 max and brag about it all around the internet. “And the other way. We made clear from day one where we're not going to go. We're not going to have a special COVID bonus, we're not going to have a special COVID logo and we're not going to do anything public about the crisis - we think this is very important, especially for an industry like ours.” The conversation, led by moderator Gaming Malta COO Ivan Filletti, later turned to the topic of responsible gambling and protecting customers that now have more time to play. Filletti called for all online casino stakeholders to ensure that the heightened level of responsible gambling is maintained "throughout COVD-19-imposed lockdowns and beyond". He then invited the panelists to discuss the effectiveness of crisis-enforced changes to gaming legislation, for example in Sweden, where new deposit and time limits will come into force from 1 June until the end of the year. Stevendahl admitted his disappointment at the Swedish developments, adding: “It’s very surprising what the minister came out and said, and I totally disagree.” He also explained how Videoslots reiterated its commitment to responsible gambling across the globe by enforcing mandatory loss limits in the UK - something it highlighted as the “right thing to do,” even if it isn’t yet enforced by the UK Gambling Commission.
THE INTERESTING PART FOR US IS THE FACT THAT PEOPLE ARE MAKING MORE USE OF THE RESPONSIBLE GAMBLING TOOLS, WHICH SHOWS A MATURITY LEVEL IN THE INDUSTRY “It’s been operating under regulated markets for some time now, and when things happen and when things hit you think that it’s going to lose control and that people might go and play in a way that it is less responsible.” “Clearly we are seeing more activity in the casino now but I’m very happy to say that I see it in a good manner, in a responsible way which gives the
confidence that the business itself can create long-standing longevity.” Specifically on the Swedish regulations, he concluded: “We saw some countries deciding to limit, or to introduce more restrictions in terms of responsible gambling or regulation. At Genesis, we couldn’t see the need for that.” •
Gaming Malta COO Ivan Filletti
Reem followed by revealing that Genesis had sent questionnaires to its players regarding responsible gambling thresholds, as the operator aims to ensure the safest environment. He said: “The interesting part for us is the fact that people are making more use of the responsible gambling tools, which shows a maturity level in the industry.
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Online shift
CASINO
CHANGING BEHAVIOURS IN AN EVOLVING ENVIRONMENT
PLAYER HABITS are very
much in a constant state of flux, with operators and suppliers alike striving to develop new games, mechanics and solutions to maximise retention and engagement across numerous jurisdictions
T David Mann, Business Development Director of Swintt
hese alternating behaviours have, arguably, never been more prevalent than this year as the spotlight on igaming gets ever brighter and stringent after the coronavirus health crises wiped out a large proportion of the world’s sporting action. With a smattering of what were previously considered niche options remaining for sports bettors, a perceived inevitable uplift in online casino’s volume saw many conversations documented, particularly when it came heightened safety restrictions. With changing behaviours gaining much airtime in recent weeks given the current climate, how has consumer behaviour has evolved in recent weeks and months: “In the last few weeks and months, the whole world has experienced a drastic change,” begins David Mann, Business Development Director of Swintt. “One in which our everyday lives took a complete turn, disrupting our normal behaviours. As such when we look at customer behaviours, we will naturally see drastic changes in how the customers interact with our products. “Economic uncertainty can alter a players normal habits, but there will also be an increased amount of free-time with lockdowns in place. A lack of sporting events brings the opportunity for cross-selling casino
sbcmagazine.com 47
Online shift and other verticals, and the closure of land-based gambling opportunities will open up the online sector to a wider audience. “Focusing on the latter point, it’s crucial that operators are able to offer products that new players can resonate with, understand, and most importantly enjoy. Many land-based players will be looking for their favourite and trusted games online so the more accessible these games are, the wider the resulting player base opens.”
OPERATORS AND SUPPLIERS SHOULD FOCUS ON MAKING SURE THAT CUSTOMERS HAVE RELEVANT AND ENGAGING CONTENT
Itai Zak, GoWild Gaming CEO, documented a rise in web-based footfall that has not necessarily translated to monetary actions: He said: “We are seeing around 15 per cent increase in the time players are spending on the website. It is not
throughout the remainder of the year and beyond. Zak continues with an outlook of very little change: “We do not anticipate any significant long term impact. We believe the COVID-19 impact is mainly short term. We do, however, believe that we will see an even bigger shift towards mobile platforms. It is also likely to assume that players who traditionally didn't gamble online but only via street/ offline channels will have higher tendency/will to gamble online.”
necessarily that they spend more, but they are just coming to the web sites more often. We also see a slight shift of players toward different types of products than the traditional popular slots, such as live dealer. We see a slight uplift in the amount of new players we acquire and improved conversion rates for this new traffic combined with better retention.” Another key talking point of recent months and weeks has been that of the short, and more crucially, long-term impacts that the current environment will have on the industry
Mann offered a different perspective and elaborated on his own views of the COVID-19 igaming impacts: “Operators have seen many customers crossing over to casino from sportsbook for the first time, trying and enjoying the different products. A number of these customers will surely retain on casino and as such we should see an increase in activity from this aspect. “Customers that have moved over from land-based casinos will also retain, we should see an increase in activity on ported slots and
48 SBC MAGAZINE • JUNE 2020
slots that are more familiar to this demographic. This should increase the market share that online has versus land-based and accelerate the overall market growth. “Certain markets in Europe, Germany for example, have seen a much slower transition to online play from the land-based sector but this is expected to change given recent circumstances. Since we have had a spike in promotional activity some of these new customers will have accustomed to a certain amount of engaging promotions and as such this may become the norm and expected by customers. This may affect what requirements and expectations the customers have on the products.” Among the talk of a perceived online casino spike looms the sporting spectre just over the horizon, with a bumper calendar of events promised for 2021 almost inevitably set to lead to a drop-off, or at the very least return to ‘normal’ operations. As well as the standard schedule of events next year will also see the inclusion of Euro 2021, the Olympic and Paralympic Games, Rugby League World Cup, the ICC World T20 and the commencement of an Ashes Series. With that in mind what role can/ will operators and suppliers play in retaining consumers when sports resume: “Operators have as much responsibility to ensure players are looked after as ever, if not more so during this pandemic. With both the increase in activity from existing players and entirely new players, responsible gaming measures should be in place from both the regulators and operators to ensure customer wellbeing is prioritise,” Mann explains “As addressed by the above points, an increase in casino activity has been investable as much as the dropoff is when sports resume. Yet how much of a decline casino experiences once sports opens up is based on activity. The new customers will be accustomed and used to casino and as such we won’t see them completely drop-off yet a reduction in activity as their bankroll is split between sports and casino. “Sports will also not return in an instant, so the casino vertical will have quite some time to establish itself with newer players. Uncertainty over
CASINO
WE DO BELIEVE THAT WE WILL SEE AN EVEN BIGGER SHIFT TOWARDS THE MOBILE PLATFORM
Itai Zak, GoWild Gaming CEO
league restarting and major sporting events will last for many months, so operators will have to make sure growth stems from somewhere. “Operators and suppliers should focus on making sure that customers have relevant and engaging content such as promotions that keep these customers engaged with a more equalised split between sportsbook and casino. As suppliers like Swintt continue to grow, which will open up more localised content with powerful promotional functions, the shift of spend back towards sports will be
negligible against the growth of the business overall.” As Zak concludes with his own perspective: “We are seeing a moderate spike in our casino activity. It doesn’t necessarily come from existing
AN INCREASE IN CASINO ACTIVITY HAS BEEN INVESTABLE AS MUCH AS THE DROP-OFF IS WHEN SPORTS RESUME
players who spend more but mainly from new traffic we are acquiring. “Operators should focus on two main key factors: i) having a strict and proactive responsible gaming approach when dealing with their players and ii) focus on providing their players with the best possible safe and entertaining environment. Operators’ ability to sustain the growth in their casino they are experiencing during the COVID-19 period for the long term will be much dependent on how effective they can be in focusing on these two key factors.” •
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Identity Verification
Affordability Assessment Transaction Monitoring
Behaviour Monitoring Open Banking Data
Knowing Your Customer is vital‌. I help operators implement onboarding and monitoring solutions, delivering an understanding of players; identity, affordability, behaviour and exclusion status. Our platform allows operators to make automated and manual decisions with the full player picture. Reducing risk of non compliance and delivering a safe and low friction player experience.
Adam Doyle Head of Gaming - TruNarrative
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Do the maths
CASINO
CAN MORE BE DONE TO EDUCATE PLAYERS? AS THE SLOTS INDUSTRY
continues to ponder what more it can do to better inform players about the logic of RTP calculations, we asked a range of operators and suppliers about whether players' interests should be considered more decisive
W
e heard from Evoplay CEO Ivan Kravchuk, Realistic Games commercial director Rob Lee, Alea game supplier manager Golazin Rahattalab, Rhino Entertainment MD Ross Parkhill, Red Tiger director of business development Carl Ejlertsson and Arcangelo Lonoce, head of business development Europe at Habanero. SBC: What more can operators and suppliers do to further educate players on RTP? Lee: The most important thing about the RTP is that it is clear, accurate and doesn’t vary on the same game from site to site. Operators and suppliers have a duty to the players to ensure this transparency. We shouldn’t lose sight of the fact that lots of players don’t necessarily know what we’re talking about when it comes to RTPs. Some just don’t have that product knowledge. They may have arrived at a slot via sportsbook or lottery. For those players we should provide a simple explanation, so they know what they are playing and how it varies from title to title. Rahattalab: Today, we see more suppliers adopting their content to feature variable RTPs. This is due to the industry understanding players' relationship with the theoretical percentage payouts. We have witnessed players in different markets have different
WE SHOULDN’T LOSE SIGHT OF THE FACT THAT LOTS OF PLAYERS DON’T NECESSARILY KNOW WHAT WE’RE TALKING ABOUT WHEN IT COMES TO RTPS reactions to different levels of RTP. While it is known that players in the UK are more tolerable toward lower RTPs, players in Spain, for instance, aren't. We believe this is due to the level of players' understanding of RTP. Players in the UK have been gambling online
for a longer period of time and do have access to an immense amount of information on forums. Providers and suppliers could educate players by providing statistics and real data to teach their players how different RTPs could affect their in-game experience. Kravchuk: Clearly outlined visual guidance is the right place to start – now more than ever. We’ve seen a significant influx of players getting into slots and instant games in the last few months, and the need to educate new players on RTP during this current time is essential.
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Do the maths With a wealth of trusted B2C gambling media platforms emerging, such as AskGamblers and BitStartz – suppliers would do well to leverage these relationships to produce a range of educational topics in an accessible format for the new generation of players. Parkhill: It’s in the interest of the industry as a whole to provide engaging reliable information that players want or need to read to help keep things enjoyable and sustainable. We live in a world where everyone is used to having information in an instant to make more informed decisions. You have companies like Netflix who employ people to watch their films to help provide information for recommendations. When people
Ross Parkhill, MD of Rhino Entertainment
WHILE IT IS KNOWN THAT PLAYERS IN THE UK ARE MORE TOLERABLE TOWARD LOWER RTPS, PLAYERS IN SPAIN, FOR INSTANCE, AREN'T decide to go out to a restaurant, they often look online for reviews. If our industry wanted to do something similar with games, we need to use mathematical measurements, consider game mechanics and aesthetics but also find an effective way of communicating this. Another important aspect of this is the psychology in how players view a game, for example, did they have a big win on their first session? Or maybe they didn’t see the feature after 400 spins? How a game plays is a complex matter when you consider human nature as well as mathematics. We need to take some of the subjectiveness out of it and find a way to offer relevant and reliable information. SBC: Should operators and suppliers be able to alter the RTP? Or should it be set as part of the game design and left? Ejlertsson: Absolutely. RTPs are an operator’s price point. We take the view that we should be able to assist them with adjusting that, so they can remain competitive in the market in which they operate, as long as it is
52 SBC MAGAZINE • JUNE 2020
Arcangelo Lonoce, head of business development Europe at Habanero
done in a responsible and compliant manner. I’ve heard it said that the game is formed around the RTP and the maths, and you wreck it by making changes. Personally, I think that is lazy mathematics. Changing the RTP doesn’t change the soul of the game. Or maybe it does if you are not very good at scaling games! I Don’t
I’VE HEARD IT SAID THAT THE GAME IS FORMED AROUND THE RTP AND THE MATHS, AND YOU WRECK IT BY MAKING CHANGES. PERSONALLY, I THINK THAT IS LAZY MATHEMATICS
Rob Lee, Realistic Games commercial director
see tweaking the model as being detrimental if you’re smart about it. Rahattalab: Players from different markets prefer different RTPs. Operators should be able to alter their content to the best practice for their business while maintaining their players' wishes. Due to the negative correlation between RTP and GGR, operators should have the option to choose the best RTP they could afford to offer to their players. However, to protect players as well, there should be an acceptable rate no operators could go below it. Lee: This has always been an interesting debate and I know that some suppliers offer operators a choice of RTPs. In my personal opinion
CASINO
Carl Ejlertsson, Red Tiger director of business development
- and that of Realistic Games - each game should have one RTP that is never changed. Maths is a huge part of the design of any game. In fact, it is the engine around which the whole car is built. Reducing or altering it fundamentally changes how the game was originally designed to play. What that doesn’t say, of course, is that all your games should have the same volatility, this is completely different. It’s about having a diverse range of games with high, mid-range and low volatilities, so there is something to suit all tastes and different markets without impacting the RTP across any of those types of games. Kravchuk: The Gambling Commission undertakes rigorous checks on RTP before certifying a game, so products are transparent for both players and operators. Bettors are therefore provided with a clearly outlined and fully regulated overview of a game’s RTP. From our perspective, alterations to a game’s RTP are permissible as long they are transparently presented to players and regulated accordingly. SBC: Blueprint Gaming recently included a separate introduction
screen which shows the players the RTP for specific games. Is this something that more should consider rolling out? Rahattalab: Players could get the RTP information in the paytable on most games; however, very few players open the paytables, and when they do, it doesn't mean they are there looking for the RTP level. Blueprint has decided to experiment with five of its Megaways games. We shall see the results in the near
Ivan Kravchuk, Evoplay CEO
understand it, the better protected they will be. Parkhill: To be honest a lot of operators have started adding this and it’s something that can only help from an RG standpoint. As a product guy, my only issue is I’d prefer to see a consistent solution and messaging across the site – so it’s not shown on some games and not others. Going forward I think this will be best handled by operators. Kravchuk: We think it’s a great idea
RTP IS A CRITICAL BENCHMARK USED ACROSS REGULATED MARKETS AROUND THE GLOBE, AND THE BETTER THE PLAYERS UNDERSTAND IT, THE BETTER PROTECTED THEY WILL BE future; however, I highly doubt it could enhance the player experience much. Lonoce: Anything that further clarifies game dynamics is a step in the right direction. In this instance, it wouldn’t harm the player, the operator or the supplier. In fact, doing more to educate players is always beneficial from both an ethical and commercial standpoint. RTP is a critical benchmark used across regulated markets around the globe, and the better the players
and look forward to hearing player feedback following the trial period. Game developers should provide any and all RTP information that might educate their audience. I commend Blueprint on its proactive approach and like we undertake our development in a similar manner. Each of our game’s technical specifications are readily available for our players who want to find out more, with easy-to-follow rulebooks and clearly identified RTP figures. •
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Change of thinking
CASINO
QUANTA: FROM A LICENSED LOTTERY TO A LIFE PORTAL HARMEN BRENNINKMEIJER, QUANTA CEO, explains his clear
vision for the world’s first fully licensed blockchain lottery, before outlining the first steps taken to creating a ‘Life Portal’ using the technology, and how the firm’s Quanta Pass, Quanta Pay and utility token can combine to make a real difference to people’s lives
sbcmagazine.com 55
Change of thinking
SBC: Hi Harmen, thank you for speaking to SBC Magazine. Can you explain to our readers the core vision of Quanta? And how can technology support this? HB: Quanta began with a clear vision. To use blockchain technology to make lotteries more transparent. We built our lottery platform and random number generator accordingly and were the first ever licensed blockchain lottery supplier after we were issued a lottery licence by Isle of Man’s Gambling Supervision Commission and our RNG was certified by NMi. Whilst that was a significant achievement, upon achieving that milestone we realised we needed to go further. We realised it isn’t enough to just create a more transparent lottery using blockchain – you need to aim higher and use blockchain to create a
56 SBC MAGAZINE • JUNE 2020
platform that impacts the way people use technology to interact with any digital product or service. That’s the reason Quanta expanded its horizon and why we made our first step towards achieving our vision to use blockchain to create a ‘Life Portal’ that is both technology and currency agnostic. We call our Life Portal Quanta Pass. Quanta Pass will take advantage of all the benefits of blockchain – transparency, immutability, low cost – whilst connecting with public and private blockchain products and services as well as products and services that utilise more traditional technologies. It will be a place to store and spend cryptocurrencies on traditional
products and services as well as a place to consume crypto products using fiat currencies. Our first step in realising our Quanta Pass Life Portal vision is the development and launch of our transparent payment gateway Quanta Pay. Quanta Pay is a mobile payment gateway built on blockchain that provides end users a non-custodial crypto wallet in which they can intuitively manage crypto as well as connect with integrated products and services. Users can load funds and make payments to any connected product or service. So for instance, they can access, pay and then play our blockchain lottery games and in the future from the same interface could also retain their health passport, participate in peer-to-peer lending or even play games. The goal of Quanta Pay is to
CASINO
provide a simple gateway between a user’s funds and the digital products and services they want to consume, the vision of Quanta Pass is to provide a single point of consumption for the main digital products and services provided by Quanta and third party companies. SBC: In quite a saturated market, it’s important to ensure that your offering stands out. What is it that differentiates Quanta from other lottery operators? And how do these products and services benefit users? HB: Our major differentiator in the context of the lottery is two-fold. Firstly, our lottery is run entirely using blockchain technology including the RNG, which is different from any other supposed blockchain lottery companies. Our system has also been certified and is licensed. However, what really sets us apart is we are not limiting our products and services. We are not limited to lottery, or even to gaming. We are also a platform that enables the publishing and consumption of both blockchainbased as well as products built using traditional technologies. We are strong believers in blockchain technology. We believe that it will ultimately change a lot of industries, but this will not happen overnight and certainly not now whilst the world is still dealing with the coronavirus pandemic. Blockchain will change the way we do everyday things such as how we store critical data and how we hold and spend our money. Ultimately, we believe blockchain will help to reduce the number of layers involved and help to make many of the daily digital products and services we use less expensive, more transparent, and more trustworthy. The key to this being successful is if the user can maintain their independence and stay in control. We are aiming for Quanta Pass to provide that level of independence and control. SBC: How does Quanta deliver the expectations of investors whilst driving the adoption of users? HB: Quanta has developed a utility token that aims to deliver returns to investors whilst also rewarding its users. Much has been written about the relevance of cryptocurrencies and
the hype that surrounds ICOs and since I have been involved with Quanta I have re-focused the company on first developing a core product based upon the company’s vision. This has resulted in some adaptation to our digital token so that investors and users are placed in the spotlight of its utility. Our token provides holders the opportunity to earn payments based upon their participation in Quanta’s ecosystem, for example participating in generating random numbers as part of our decentralised RNG called Randao. Our
Now add the dimension of emerging markets, where users are less protected by regulations that we take for granted in more developed markets. Where incomes are typically lower and traditional banking is not equally available to all. You now have a scenario where Quanta Pass, Quanta Pay and our token economy becomes even more relevant and even more exciting in its potential to make a real difference to people’s lives. Imagine a scenario where mobile and crypto-savvy unbanked users can earn rewards for participation in
QUANTA PASS, QUANTA PAY AND OUR TOKEN ECONOMY CAN BECOMES EVEN MORE RELEVANT AND EXCITING IN ITS POTENTIAL TO MAKE A REAL DIFFERENCE TO PEOPLE’S LIVES token can also potentially be spent by users of the products and services provided in Quanta Pass and settled via Quanta Pay. You therefore get an interesting scenario where an investor/user can consume products or services integrated with Quanta Pass, for example play a lottery, earn rewards for doing so and get paid for participating in the generation of the results for the lottery. This concept can be carried across into multiple products and services which means we are effectively offering investors and users cost savings on popular digital products and services.
the Quanta Pass ecosystem and earn rewards that they can use to purchase health insurance or pay bills. Similarly, they could participate in lotteries and transparently see the good causes impacted by their spending. Quanta is focused on the B2C market in Sub-Saharan Africa and we are building local relationships necessary to develop large potential user networks. We have started in Nigeria and are working with key partners that will help us to realise our vision. Ultimately, we are aiming to subsequently offer our technology as a B2B solution to strategic partners that share our vision of the future. •
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PAYMENTS
On the blockchain
PAYMENTS
FOUR KEY THINGS WE LEARNED ABOUT DIGITAL CURRENCY AS THE GROWTH OF DIGITAL CURRENCY
accelerates as a result of the COVID-19 pandemic, we brought together a collection of thought leaders to share insight on the use of blockchain payments as a ‘driver in crisis’
Rebecca Liggero, CalvinAyre.com
H
ere are the four key takeaways from the session, moderated by CalvinAyre. com’s Rebecca Liggero, held as part of the SBC Digital Summit’s Payments Day track.
1
Education and an efficient experience are crucial
“If betting operators are to convert players to blockchain, education and informing punters is pivotal,” said Lloyd Purser, COO of Funfair Technologies, who added that there are many other factors involved. He explained: “Education is a major part of what we are trying to do but on top of that we also have to do significant improvements in our product, adding new features, adding new suppliers, there’s a marketing effort as well that has to go into it. “It really is a bit of everything, there’s no magic silver bullet to move people onto the blockchain, we have to improve our product and onboarding journey. We have built our own wallet, something we never would have done if we didn’t have to, but frankly we had to, in order to make the user experience good enough. “We have tried to make a simplified process out of what seems very
THERE’S NO MAGIC SILVER BULLET TO MOVE PEOPLE ONTO THE BLOCKCHAIN, WE HAVE TO IMPROVE OUR PRODUCT AND ONBOARDING JOURNEY
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On the blockchain complex and the wallet is a key part of that.” Max Krupyshev, CEO of CryptoProcessing.com by CoinsPaid, revealed that he witnesses a lot of mistakes when new operators begin to integrate crypto payment methods. “You try to keep the disruption low, which is against what Lloyd is saying,” he said. “Creating blockchains in casinos is an amazing idea, it is disrupting the whole industry, but the element of dedication is huge and you need to get the first step right.
YOU HAVE TO MAKE SURE YOUR PLAYERS DON’T WAIT; THEY HAVE TO MAKE SURE THAT WHEN THE MONEY IS SENT THE PLAYER GETS IT WITHIN SECONDS “You have a big brand, you have a user base so just help them to use this as an option and then see if you want to get more users. “Education, in general, is very important. I want this panel to explain to our listeners what to get right if they want to enable cryptocurrency.” Krupyshev added: “I see a lot of mistakes when operators start working with cryptocurrency - they misunderstand the flows. The key point which created a bad impression from the start was accepting cryptocurrency. You have to make sure your players don’t wait; they have to make sure that when the money is sent the player gets the money within seconds. “Then you have to make sure that the exchange rate is fair. When a player deposits €100 into his account he needs to receive said €100. It should then fit into the existing flow. You don’t have to change your cashier completely for the crypto. Finally follow the big players who have been using crypto for years, these are the people who have got it right.”
2
Know Your Customer
Having a deep understanding of what the customer wants to achieve through cryptocurrency is imperative to maximising user engagement. It once again underlines that
60 SBC MAGAZINE • JUNE 2020
Lloyd Purser, COO of Funfair Technologies
strengthening KYC processes is something that operators should be increasingly focusing on to elevate many aspects of their offering. Tom Bloor, sales manager at Cryptopay, said: “The more you know about your customers and what they like, the better. This is the main job of
IF YOU DON’T KNOW YOUR CUSTOMER WELL YOU CAN’T RETAIN THEM AND THEN YOU CAN’T GROW
an operator, if you don’t know your customer well you can’t retain them and then you can’t grow. “If you know what your customer behaviour is and you know if they prefer convenience or transparency this should inform how you plugin and accept how you are going to work with cryptocurrency.”
3
Creating a positive perception
When it comes to engaging fiat players with digital currency,
PAYMENTS
Max Krupyshev, CEO of CryptoProcessing.com by CoinsPaid
TO GET SOMETHING TO GO MAINSTREAM YOU HAVE TO GET THE BUY-IN OF THE BIG PLAYERS AND THE PERCEPTION HAS TO BE THERE perception is everything. Isabelle Delisle, head of payments at Pinnacle, commented: “To get something to go mainstream you have to get the buy-in of the big players and the perception has to be there.
But if you talk to a bank about crypto, the first thing they think of it you’re doing something dodgy. “One of the things that we have to do is to start talking about this as a legitimate product and really educate the people who are responsible for making the regulations and financial decisions and speak to banks to make them understand the product better.”
4
It’s not one or the other
The idea that for operators it’s a case of either digital currency or fiat
Isabelle Delisle, head of payments at Pinnacle
currency is simply a myth. Firms can specialise in digital currency whilst retaining their regular players. Pinnacle’s Delisle was clear that digital currency can be utilised alongside traditional fiat currencies, as opposed to instead of them, underlining the view that she doesn’t think ‘it’s a one or the other option’. She added: “In late 2017 when bitcoin became a major player in the global economic markets, it opened up a lot of younger players and just as another currency it is easier and faster to use for people in the global market.” •
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Preparing to reopen
PAYMENTS
COMPLIANCE CHALLENGE: BETTING ENTERS THE UNKNOWN SBC MAGAZINE LEARNS THE COLD HARD TRUTH
about the challenges of business continuity and why betting’s reopening will be much harder than its temporary closure
T
hese continuity challenges faced by the industry in the unprecedented circumstances posed by COVID-19 dominated the narrative of the SBC Digital Summit. Industry leaders across all levels of the sector’s supply chain spoke of their firm’s first responses to the virus
pandemic and its following lockdown across all operating markets. Bewildered trading teams saw an entire global sports schedule cancelled, whilst compliance and customer service teams handled en masse player withdrawals as panic engulfed the crisis. Meanwhile, c-level executives rushed to implement emergency action plans, ensuring employee safety, payrolls and cash liquidity for an unknown period of time. “It has been the toughest period of my professional career, as we had no guidance and knowledge on the rapid scale of the virus,” said Shay Segev, Group Chief Operations Officer (COO) of GVC Holdings. “Yet looking back now…
Shay Segev, Group Chief Operations Officer (COO) of GVC Holdings
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Preparing to reopen closing appears to be the easy part.” Shedding light on leading GVC teams through pandemic concerns, Segev detailed to Summit audiences how GVC was forced to quickly deploy individual ‘crisis task forces’ across all operational markets to ensure employee and customer safety. He added: “Its been a tough challenge, as we have closed our large retail presence in the UK, Italy and Belgium. However, reopening will be the toughest challenge, as we will face tough procedures on customer social distancing and health and safety equipment to protect our workforce.”
Steven Armstrong Group Director of AML for William Hill Plc
REOPENING WILL BE THE TOUGHEST CHALLENGE, AS WE WILL FACE TOUGH PROCEDURES ON CUSTOMER SOCIAL DISTANCING AND HEALTH AND SAFETY EQUIPMENT TO PROTECT OUR WORKFORCE
Rahul Das, Head of Payments for VirginBet
Following a period of lockdown adjustments, Segev added that GVC leadership is now focused on the challenge of reopening safely, in which the firm’s executive team has to weigh-up evaluate unique dynamics related to ‘cash management, scenario planning and exit preparations’. Overseeing GVC’s multi-market operations and workforce, Segev underlined that “exit preparations are now the industry’s great unknown", adding that "for sure this will be the biggest challenge facing industry leadership this year”. Speaking on a Compliance Leaders panel, Steven Armstrong - Group Director of AML for William Hill Plc echoed Segev’s sentiments, having had first-hand experience in dealing with customers under pandemic circumstances. In a matter of weeks, William Hill’s customer service teams have had to restructure operating procedures to ensure the bookmaker’s KYC and compliance demands are secure, knowing that financial circumstances may have changed for a significant number of the bookmaker’s customers. Despite the UK government demanding heightened due diligence on customer engagements, Armstrong points out that there is no playbook
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I WANT TO KNOW WHAT A PLAYER’S STATUS IS RIGHT NOW, NOT WHAT CHEQUE A CUSTOMER WAS RECEIVING SIX MONTHS AGO for judging ‘human reactions to a pandemic’. He said: “In general, betting regulations are defined on a risk-based approach. From an operators’ view, this should help them adapt thresholds
and their risk models, however, developing flexible procedures are trickier under this environment.” Leading William Hill’s AML and compliance directives, Armstrong detailed that he has increased team focus and resources on securing accurate up-to-date customer profiles, in which he has expanded requirements with regards to customer affordability checks. “It gets me into trouble with KYC suppliers,” Armstrong added. “But I want to know what a player’s status is
PAYMENTS
right now, not what cheque a customer was receiving six months ago. Their situation will have changed, for us it’s all about the present timestamp.” Having established crisis procedures for William Hill, Armstrong is now preparing compliance teams to deal with the ‘swamp of fixtures’ that will likely begin in May or June, as sports leagues across the globe target a quick finish to the disrupted season. For example, Armstrong highlighted the Premier League, where football clubs seek to finish a nine-week matchday schedule within a sevenweek timeframe, under plans revealed through the ‘Project Restart’ initiative. He continued: “Coming off lockdown we expect customer patterns to change. Players have been in hibernation, and as soon as the Premier League restarts they will be faced with one or two matches per day. “It’s much harder to profile and analyse customer behaviour in such a condensed period of time especially if
their financial situation has changed, as its harder to know if a customer is now gambling to make ends meet.” Rahul Das, Head of Payments for VirginBet, backed Armstrong’s statement that AML and compliance procedures will once again face scrutiny as operators reopen markets.
Countering future impacts, Das advised betting operators to develop ‘frontline teams’ consisting of compliance, responsible gambling, customer service and AML stakeholders to avoid being swamped by the sports schedule. When sports do come back, he said that all compliance teams should
IT’S MUCH HARDER TO PROFILE AND ANALYSE CUSTOMER BEHAVIOUR IN SUCH A CONDENSED PERIOD OF TIME ESPECIALLY IF THEIR FINANCIAL SITUATION HAS CHANGED Furthermore, operational teams will have to meet temporary UKGC orders, demanding that compliance teams conduct more frequent background, monitoring and player interventions. Das noted that the ‘stakes are high’ for compliance and CS teams, amid a backdrop of heightened regulatory scrutiny and tabloid journalists foaming for negative industry headlines.
be ready to ask sensitive questions of their customers – something that cannot just be pawned off to customer services. “You can only put so much responsibility on your CS teams,” said Das. “You need to have specialized teams that can ask the hard questions. CS and compliance teams are now the frontline of any gambling business.” •
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Image overhaul
MARKETING
HOW GAMBLING CAN SHAKE OFF THE NEGATIVE PERCEPTIONS PANELLISTS AT THE SBC DIGITAL SUMMIT looked
Carolyn Harris, Chair of the All-Party Parliamentary Group on Gambling Harm
at the steps that could be taken by gambling operators to shift public perceptions of the industry, and the ways in which positive actions it is already taking can be highlighted to a wider audience
T
o paraphrase a quote by 19th century American showman Phineas T. Barnum, there is no such thing as bad publicity. The gambling industry may dispute that idea, however, having fallen foul to negative press in the UK on numerous occasions. The question of how the industry can change the way it is perceived was among those discussed by those speaking on the ‘Gambling in Society’ panel at the recent SBC Digital Summit. On the panel was TAG Media Director Tom Galanis, Founder of Great.com Erik Bergman, Gaming Malta CCO Ivan Filetti and Chair of the All-Party Parliamentary Group on Gambling Harm Carolyn Harris. Moderator Alexandre Tomic, CEO of Slotsmillion, began the session by addressing the elephant in the room: negative perceptions of the gambling industry. Before quizzing panelists on whether they believe companies have altered their behaviours during the global pandemic, Tomic highlighted that - more often than not - the gambling industry is perceived as having a negative impact upon society despite its ‘positive actions’. He said: “We’re discussing this topic
as the gambling industry doesn't have a very good public image, especially in countries such as the UK despite positive actions being carried out. This industry is sometimes perceived as having a negative impact on society. And especially during difficult times like this, an industry like ours
is continuing to make more money, which can definitely raise questions among the public.” Galanis responded with a similar answer, highlighting that the industry is taking positive steps to engage more positively with society. However, he argued that the sector ‘always has
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Image overhaul
to be doing more’ to ensure that it comes across in a positive light. He added: “For me, the industry always has to be doing more to engage more positively with society. That’s not to say that it is not doing quite a lot already, but a lot of what it is doing is not coming across particularly well at the moment, especially in the UK market.
THE INDUSTRY REALLY NEEDS TO STEP UP ITS GAME WHEN IT COMES TO MANAGING ITS OWN REPUTATION, BECAUSE THERE ARE A LOT OF GOOD THINGS HAPPENING “What I think we need to look at is what we can do as individuals within our own markets that we operate in, what we can do within the companies that we work for and more broadly what we can do as an industry to take positive steps to help us regain the public’s trust. This would be an end result, and at our core, we must do more to positively protect those within our society.” In recent years, UK gambling operators have come under fire in the media, often perceived to be somewhat of a vice. Filetti pointed out that despite these negative perceptions, the introduction of the gambling industry to Malta led to a ‘paradigm shift’ in HR practices and employee welfare - and that possibly there are lessons to be learned in the UK. He added: “When iGaming came to Malta, there was a paradigm shift when it came to looking at HR practices etc. I think all of these things should be spoken about more across the industry. The industry really needs to step up its game when it comes to managing its own reputation, because there are a lot of good things happening. “At the minute, we’re facing one of the biggest economic challenges of this century, so once this is over, iGaming companies should consider how their companies operate and what will be of their reputation? They should not just be looking at the value of profits, but should also be considering the value of a
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Erik Bergman, Founder of Great.com
sustainable economy.” Describing herself as the ‘cuckoo in the nest’ on the panel, Harris has previously ruffled some feathers across the industry with her campaign to reduce the maximum stake on Fixed Odds Betting Terminals (FOBTs) to £2. But during the ongoing pandemic, Harris believes that the negative perception of the industry falls down
the deposit on my first house. I am not anti-gambling. “What I do have a problem with and there are many ways where you can tell if this person can afford to gamble or not - is when an individual is begging an operator for bonuses. Or if a person has spent a large amount of money over the weekend, they have not gambled for one day, and are subsequently bombarded with
THERE IS A RESPONSIBILITY FOR THE INDUSTRY TO KNOW HOW MUCH RESIDUAL INCOME SOMEBODY HAS SO THAT THEY DON’T SPEND OVER AND ABOVE THEIR EARNINGS to three things: treatment of VIP gamblers, insufficient affordability checks and a failure to carry out enough interventions to prevent excessive or problematic gambling. Emphasising that she is not antigambling, Harris said: “I don’t think that any gambling platform has no place. If someone gains pleasure and can afford to gamble online, they should be able to do so. I bought my house after winning a game of Bingo, I won enough money to pay
emails and marketing messages from gambling companies then offering incentives for them to gamble. “When there are instances of someone regularly changing the card that they use to gamble, specifically credit cards, if that doesn’t tell the operator that that person has a problem, what does? I think there should be stringent affordability checks, almost like when you are going for a mortgage. There is a responsibility for the industry to know
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Tom Galanis, TAG Media Director
how much residual income somebody has so that they don’t spend over and above their earnings.” Harris later suggested that the issue does not necessarily lie with the individual betting companies, but rather the onus of shifting perceptions of the gambling industry comes under the remit of industry trade bodies which Harris believes often ‘throw stones, are very
defensive and are very antagonistic’. Bergman drew upon his experience as a co-founder of Catena Media to explain to the panelists that betting companies must make changes to their corporate values and leadership strategies to win back the trust of the public. He pointed out that betting companies are too disconnected from those who are impacted, and that
another industry. But from my own experience, I don’t think that the industry is innately bad, but I think it is too disconnected from the problems that it is causing. “Problem gamblers are too far away for a lot of people in the industry, it’s almost as though we’re not aware of them. In this sense, gambling resembles the coronavirus. When it started leaders thought it would just
GAMBLING RESEMBLES THE CORONAVIRUS. WHEN IT STARTED LEADERS THOUGHT IT WOULD JUST BE ANOTHER FLU! BUT NOW IT IS KNOCKING ON THE DOOR, AND EVERYONE IS CLOSING THEIR AIRPORTS
Alexandre Tomic, CEO of Slotsmillion
a constructive dialogue between all parts of the industry is key to making the industry ‘more human’. He said: “For me, what is missing in the gambling industry is a closer relationship between the actual companies and the problems that they may be causing. I’m saying this as I’m thinking about my own personal journey. I’ve worked in affiliation, I began playing poker professionally at the age 17, I’ve never worked in
be another flu! But now it is knocking on the door, and everyone is closing their airports. “We need to be closer to the problem, and we need to have a collaboration or a dialogue with those that deal with these issues. I would love to see a situation where we as companies invite people to tell us these stories and we listen to them because I think that will make us more human.” •
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New virtual reality
SBC’S DIGITAL EVENTS TAKE OFF HAVING LED THE WAY
as the events industry responded to the COVID-19 enforced postponement of physical conferences and exhibitions, SBC now has big plans for its virtual summits
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s events organisers saw their schedules for spring and summer 2020 halted by travel restrictions and social distancing measures introduced to mitigate the impact of COVID-19, SBC decided to take an innovative approach to the situation. In April, it staged the betting and gaming industry’s first major online trade show, the SBC Digital Summit, attracting delegates from 100 countries for five days of online conference content, product presentations and themed networking sessions. The initiative generated a hugely positive response from participants and SBC has organised three further online events, each focused on a specific region or sector of the market. The summer programme kicks off with SBC Digital Summit Latinoamérica (16 - 17 June), continues with CasinoBeats Malta Digital (30 June - 2 July) and concludes with SBC Digital Summit North America (14 - 16 July). All three will use the same advanced technological environment that powered the SBC Digital Summit and helped delegates to discover that virtual events have a lot of benefits. Attendees found that the format allowed them to enjoy more conference sessions than at physical events, catch-up with sessions they missed on demand, view the latest innovations from major suppliers and take
advantage of virtual networking tools to make new connections, all while still being able to carry on with their day jobs from their home offices. The digital set-up also enabled delegates to join the event from around the world, with some regional content tracks scheduled for during the working day in the Americas. This helped to connect the Latin American and US sports betting and gaming communities to major players in Europe and beyond.
IT WILL ALSO BE THE FIRST TIME SBC HAS HOSTED AN EVENT WHERE SPANISH IS THE PRIMARY LANGUAGE The LatAm Market track featured detailed regulatory updates, along with CEOs of local operators sharing ideas of how to take advantage of the untapped potential offered by sports-mad audiences in the region. The sessions attracted large attendances, with delegates who already work in South America joined by representatives of operators and suppliers keen to expand into the markets there. To enable more of that valuable sharing of knowledge about opportunities in the region, SBC has organised SBC Digital Summit
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New virtual reality
JD Duarte, Betcris CEO
Latinoamérica, its first ever event dedicated to Latin America. It will also be the first time SBC has hosted an event where Spanish is the primary language, although the four-track conference will also include some sessions in English and Portuguese. Sixty speakers will offer in-depth insights on the future of sports betting, online gaming, lotteries and the landbased industry in the region, along with an examination of the lessons Latin American operators can learn from their counterparts in Europe and the US. The line-up includes Luckia president José González Fuentes and Waldir Marques from Brazil’s regulator, SECAP, together with a host of operator CEOs such as JD Duarte (Betcris), German Segura (Betplay), Xabier Rodriguez Maribona (Retabet), Rodrigo Afanador Carrasco (Zamba), Gonzalo Perez (Apuesta Total) and Andre Gelfi (Suaposta Betsson). As with all of SBC’s virtual events, SBC Digital Summit Latinoamérica will be much more than just a series of conference sessions delivered via the web. A lot of thought and hard work has been put into replicating all the main benefits of a physical trade show, so delegates can also look forward to a virtual exhibition hall with suppliers showcasing their latest innovations at interactive booths, along with chat functionality that makes connecting with
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Xabier Rodriguez Maribona, Retabet CEO
IT’S AN EXCITING TIME FOR THE GAMBLING INDUSTRY HERE AS MORE COUNTRIES MOVE TOWARDS REGULATION fellow delegates straightforward and a selection of themed networking events. Maca Rodicio, editor of the Spanish language industry news website SBCNoticias.com, said: “It’s an exciting time for the gambling industry here as more countries move towards regulation
and there is huge international interest in the latest developments in key markets such as Brazil, Colombia, Mexico and Argentina. “SBC Digital Summit Latinoamérica will deliver a timely examination of the opportunities the region offers, and provide an ideal forum for operators, suppliers and affiliates to make valuable new connections in rapidly-growing markets.” The second of the summer programme of virtual events is a replacement for CasinoBeats Malta, the premier online casino conference and
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Stuart Simms, XLMedia CEO
exhibition. The physical event was due to take place at the InterContinental Malta, but with restrictions on international travel still affecting businesses, it has been transformed into a digital format. Delivered in association with GamingMalta, CasinoBeats Malta Digital will include a five-track conference featuring 120 high-level speakers from the worlds of online casino, slots, compliance, affiliate marketing and payments sharing their insights on 2020’s unique challenges and ideas about the long-term opportunities for
IT’S MORE IMPORTANT THAN EVER FOR PEOPLE IN THE INDUSTRY TO SHARE KNOWLEDGE AND WORK TOGETHER the industry. In addition to examining developments in the international online casino and slots sectors, the event will have a real focus on Malta, with a full-day of content about the working on the island.
Virginia McDowell, GVC Holdings Board Member
Ivan Filletti, Chief Operations Officer at GamingMalta, believes it will be an opportunity to show that Malta remains open for business, despite the COVID-19 pandemic, and an attractive location for operators, established suppliers and start-ups to be based. “CasinoBeats Malta Digital 2020 will be the ideal thought leadership platform to take stock of the current scenario of Malta and the international igaming industry, together with what is shaping the sector’s agenda. We are keen to use this platform to share with both the public and stakeholders why Malta is and remains the home of gaming excellence,” said Filletti. Stewart Darkin, CasinoBeats Managing Director, added: “With the effects of the pandemic still being felt by businesses around the world and the gaming market in very different shape to the start of the year, it’s more important than ever for people in the industry to share knowledge and work together. “CasinoBeats Malta Digital is the perfect platform for them to do it. We’ve had fantastic backing from the speakers, sponsors and exhibitors due to participate in the physical event and who see the potential offered by the virtual conference and exhibition format, not least from key partners such as GamingMalta and KPMG Malta. So, we’re looking forward to delivering a
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New virtual reality
Zach Leonsis, Monumental Sports & Entertainment’s SVP of Strategic Initiatives
great event for the 3,000 delegates set to join us.” The third part of the summer virtual conference and exhibition schedule is the three-day SBC Digital Summit North America, which will further build the events organiser’s presence in the US market. The Betting on Sports America content at April’s SBC Digital Summit featured some particularly lively debate and delegates can expect more of the same this time. The three-day conference will take an all encompassing look at the industry in North America, with a focus on regulatory developments, the growth of online sports betting and the landbased sector. Another high-quality speaker roster has been assembled to deliver in-depth insights on the challenges facing all sectors of an industry badly hit by the COVID-19 induced economic slowdown, and to share their ideas on where the next big opportunities may emerge. It includes Penn National Gaming CEO Jay Snowden, GVC Holdings Board Member Virginia McDowell, XLMedia CEO Stuart Simms, Monumental Sports & Entertainment’s SVP of Strategic Initiatives Zach Leonsis, Hard Rock International’s SVP & MD, Online Gaming and Sports Betting, Kresimir Spajic, and legendary Las Vegas oddsmaker Roxy Roxborough. Sue Schneider, VP of Growth and Strategy, Americas at SBC, said: “We learned, with our first Digital Summit,
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Kresimir Spajic, Hard Rock International’s SVP & MD, Online Gaming and Sports Betting
MANY IN THE US ARE NEW TO SPORTS BETTING IN GENERAL AND IGAMING IN PARTICULAR, AND THEY WANT TO LEARN HOW TO MAKE IT WORK AND WHAT TOOLS THEY NEED that there’s an appetite for a place to gather and discuss the fast-changing conditions in the US market. “Given that Betting on Sports America in New Jersey has now been moved to December, we wanted to meet that demand by staging a virtual event for everyone interested in developments in the US and Canada. We’ll have an up-to-
date programme, some amazing featured ‘fireside chats’, great networking and an active trade show floor. “Many in the US are new to sports betting in general and igaming in particular, and they want to learn how to make it work and what tools they need. The SBC Digital Summit North America will deliver many of the answers they need.” One additional feature of the SBC Digital Summit North America is the Startup Zone, which will give innovative new businesses the chance to present their products to the biggest names in the industry. For more information about any of the events or to book tickets, please visit sbcevents.com. •
JULY 14-16 2020
THE NORTH AMERICAN EDITION
OF THE WORLD’S LARGEST ONLINE BETTING AND GAMING EVENT 3,000 DELEGATES
75
SPEAKERS
30
EXHIBITORS
FOR MORE INFORMATION PLEASE VISIT WWW.SBCEVENTS.COM
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