Gambling Insider: Malta Focus November 2016

INTERVIEWS:

MALTA FOCUS

• LEOVEGAS CEO JOHAN STYREN • MR GREEN LTD CEO JESPER KARRBRINK

November 2016

Gaming’s most attractive market Why expats should be looking at the job opportunities in Malta

Enjoy gambling responsibly. www.gambleaware.co.uk 18+

A WORLD OF OPPORTUNITIES

SPORTS

VEGAS

POKER

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BINGO © Barcrest Group Ltd 2015

EDITOR’S LETTER

EDITOR Alex Hammond alex.hammond@gamblinginsider.com STAFF WRITER Tom Lewis tom.lewis@gamblinginsider.com EDITORIAL ASSISTANTS Nicole Abbott, Dhanum Nursigadoo, Caroline Watson LEAD DESIGNER Edita Jogminaite DESIGN ASSISTANT Eli Kong OPERATIONS ASSISTANT Hollie Warda WEBSITE MANAGER Tom Powling COMMERCIAL DIRECTOR Deepak Malkani deepak.malkani@gamblinginsider.com Tel: +44 (0)20 7729 6279 SENIOR ACCOUNT MANAGER Oz Mustafa oz.mustafa@gamblinginsider.com Tel: +44 (0)20 7729 0643 ACCOUNT MANAGER Adrian White adrian.white@gamblinginsider.com Tel: +44 (0)20 3487 0498 US TERRITORY ACCOUNT MANAGER Lauren Byrge lauren.byrge@gamblinginsider.com CREDIT MANAGER Rachel Voit WITH THANKS TO: Paul Anastasi, Vallery Bollier, Jimmy Bone, Malcolm Briffa, Gordon Calleja, Angelo Dalli, Gemma Hodge, Jesper Kaarbrink, Ioannis Pagounis, Pawel Piotrowski, Julian Rogers, Johan Styren, Frida Svensson, Norbert Varga Gambling Insider magazine ISSN 2043-9466 Produced and published

by Players Publishing Ltd

All material is strictly copyrighted and all rights reserved. Reproduction without permission is forbidden.

Every care is taken in compiling the contents of Gambling Insider but we assume no responsibility for the effects arising therefrom. The views expressed are not necessarily those of the publisher.

MALTA CALLING

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As a professional who has lived the expat life I am quick to show my solidarity with people who work overseas in the gaming industry. It’s a huge decision to up sticks and relocate to a country that you might not have even visited before, both the career prospects, and the ability to function and be happy outside of the office have to be aligned to make the move worthwhile.

In digital gaming, working overseas has become more and more prevalent in recent years as gaming industry hubs have developed across Europe. The biggest of these is Malta, Europe’s premier overseas digital gaming jurisdiction. So it makes sense that people with the experience and expertise required in the digital gaming industry have either been recruited or are considering applying for jobs on the island.

But how can you calculate whether a move makes sense for you at this stage of your career? The Gambling Insider Malta Focus will hopefully provide you with some of the answers to the questions you need answered.

When I made the decision to leave the UK and work overseas I didn’t do much research into what I was letting myself in for, partly because I misguidedly thought that not being prepared for what I had signed up for would be in some way charming, and in part because there wasn’t really a decent authority on the subject to be found anywhere. So I stumbled through the first three months after the move, learning how the country worked, particularly in reference to its similarities and difference in the UK, on the fly. There were literally dozens of useful pieces of information I had to discover for myself, hopefully new recruits to Malta reading this won’t be forced to do the same.

Of course, the most important aspect of the decision of whether to move to Malta is the career prospects available, and the job market in Malta is certainly a unique one.

With so many companies densely packed into a small geographical area, it is a seller’s market for skilled industry veterans. In this issue’s cover feature, we explain what companies are doing to attract, and keep hold of the best staff workforce they can, and how the competition for talented people is driving up wages.

But we don’t stop there. We also go deeper into everyday life as a gaming industry expat in Malta, getting the answers to the questions I wish I had asked before moving abroad from someone who has recently moved to Malta.

The digital gaming industry in Malta is booming, it’s time to consider whether you want to be a part of its evolution.

I hope you enjoy the issue.

Alex Hammond, Editor When you have finished with this magazine please recycle it.

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CONTENTS

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CONTENTS ISSUES 10 JURISDICTION FOCUS Malta’s i-gaming facts and figures

12 MIGS PREVIEW

30 VALERY BOLLIER

42 JIMMY BONE

32 JESPER KARRBRINK

COVER FEATURES:

On why Malta is a great location for an i-gaming start-ups

Marketing and Client Support Executive,Golden Race

The Malta iGaming Seminar is back

The new Mr Green Ltd. CEO on why operators have success in Malta

13 SIGMA PREVIEW

INSIDER KNOWLEDGE

Why the Malta job market shapes up so well for i-gaming professionals

36 IOANNIS PAGOUNIS

20 MASTERING GAME DESIGN

38 MALCOLM BRIFFA

22 AN EXPAT’S GUIDE TO LIFE IN MALTA

Everything you need to know about the show

14 48 HOURS IN MALTA

How to get the most from a short stay

FEATURES 26 JOHAN STYREN

The LeoVegas CEO sits down with GI 6 GAMBLINGINSIDER.COM

Product Manager, Platin Gaming Director of Business Services, Melita

40 NORBERT VARGA

Head of Affiliates, EnergyAffiliates

16 THE PRICE OF SUCCESS

Malta’s MSc in Digital Games examined

We ask a current expat in Malta all the questions you want answered before you relocate

NEWS

SALARIES UP 4.9% IN MALTA SAYS REPORT

MALTA SMES ALLOCATED €6M INVESTMENT

A report conducted by research agency MISCO has revealed that the average salary in Malta has increased by 4.9% in the past 12 months. The report will help both employers and staff determine appropriate salaries for positions over the next year.

“In a challenging marketplace, effective and competitive remuneration is a key priority,” MISCO director Lawrence Zammit said. “Employers need to ensure their reward policies and practices are both practical and relevant to today’s labour market. As such, having access to robust and up-to-date market information is essential.”

The increase has almost certainly been affected by the notable increase in salaries in the gaming industry in Malta, as companies compete to attract the best workforce possible in a market that is short on supply and heavy on demand.

The MISCO report highlighted IT managers, business development managers and operations managers as the three positions with the most significant average salary increase.

All three positions are key in the online gaming industry. Salary increases for

The European Investment Bank and Banif have signed off on an agreement to provide €6 million of financial facilities to small and medium enterprises in Malta.

Chief executive for the European Investment Fund Pier Luigi Gilbert and Banif Bank CEO Joaquim Silva Pinto put pen to paper to made the deal official last month in the presence of Malta’s deputy prime minister Louis Grech and secretary for EU funds Ian Borg.

In total, the on-going SME Initiative aims to allocate €60m of new finance to enterprises in Malta over the next five years, in part through the leveraged effect. This agreement is the second a financial intermediary has made in Malta concerning the SME Initiative.

The deputy prime minister was quick to praise the deal, and highlighted the importance of the SME Initiative scheme in growing the Malta economy through SMEs. The secretary for EU funds echoed this statement, saying: “They [the new financial implements] are important since they account for significant employment and make an important contribution to the economy.

“In recent years, banks were cautious in their lending and this may have put some SMEs at a disadvantage. Against such background, the contribution of the SME Initiative becomes more significant.”

How the injection of funds will affect the gaming industry is unclear. As the funds are specifically allocated to local SMEs, large international i-gaming operators and suppliers will only feel the trickle down effects of a health economy thanks to the initiative, but what may be more influential on the industry is the launch of local gaming and tech start-ups using finance directly provided by the European Investment Fund.

HR-related positions also exceeded the average rise, with average increases of 5.7%.

At the opposite end of the spectrum, the average salary of managing directors in Malta only experienced minimal change. Other positions less associated with digital gaming, including warehouse managers and production managers, also experienced only a fractional increase in salary.

Whilst it is positive news for the island that the country is seeing wages increase, there is also some concern that if rising expat wages causes inflation this will have a negative effect on local communities.

Many key markets, particularly the housing market, have experienced steep inclines in costs following the establishment of the online gaming hub on the island.

MALTESE COMPANIES SPENT €86M ON INNOVATION

A recent report from Malta’s National Statistics Office has revealed that technological innovation expenditure on the island fell just short of €86m in 2014.

Over a third of the registered enterprises on the island employing at least 10 people, totalling 612 companies, undertook some form of innovation activity between 2012 and 2014.

Slightly under 50% of these companies invested finance in both technical and 8

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non-technical innovation, 126 invested purely in technical innovation, and 207 invested in non-technical innovation.

Despite the reasonably high levels of innovation reported by the National Statistics Office, it was also revealed that only 4.9% of enterprises applied to register intellectual property rights or a licence in the same period. Of these applications, registering a trade mark and applying for a patent were the two type of intellectual property right most commonly applied for.

Of the companies that did invest in technological innovation, 14% were involved in computer programming, the largest percentage in the report.

As a young industry, digital gaming is renowned for its innovative nature, and has made leaps forward in product offering an UX in the past few years. Suppliers based in Malta have been key to this progression in the industry in this regard, and will continue to lead Malta’s innovation record as the industry continues to develop.

ISSUES JURSIDICTION SPECS

Jurisdiction Focus The facts and stats that make Malta such an attractive proposition to the i-gaming industry

Malta must remain absolutely central to the thinking of any person or group seeking to set up a business in the i-gaming industry.

According to the website of the Malta Gaming Authority (MGA), Malta is home to “over 200 world class companies which account to over 85% of Malta’s business output”.

The business case for Malta remains an intensely strong one. The country ranked among the top 5 EU member states in the latest competitiveness scoreboard published by the European Commission at the end of September, while the MGA lists “strong commitment to attract foreign investment” and that “industrial premises” are “available at competitive costs” among the incentives for businesses to establish themselves there.

THE CLASSES OF I-GAMING LICENCES AVAILABLE While combinations of these licences are available, in simple (as is possible) terms there are four available classes of remote gaming licences, per the Malta Gaming Authority.

Class 1: A remote gaming licence covering casino games and online lotteries, whereby “operators manage their own risk on repetitive games”.

Class 2: An example of a Class 2 licence would include fixed-odds betting – it is similar to a Class 1 licence wherein operators must manage their own risk, but here based on a matchbook.

Class 3: A licence to promote and/or abet remote gaming in or from Malta, with examples including poker networks and game portals.

Class 4: This, in essence, is a B2B gaming licence, permitting the holder to host and manage remote gaming operators, excluding 10 GAMBLINGINSIDER.COM

the licensee itself, whereby software vendors provide management and hosting facilities on their platform. As such, it is possible to hold a Class 1 on 4, Class 2 on 4 and Class 3 on 4 licence with the Malta Gaming Authority.

All the relevant application forms and further information can be found on the website of the MGA. LICENCE FEES AND DURATION Administrative and licence fees in Malta are levied pursuant to the Second Schedule of the Remote Gaming Regulations issued under the Lotteries and Other Games Act. Make it through that absolute mouthful without choking on your Maltese Bragioli, and it’s all really rather simple. The application fee for a new licence is €2,330, with licence fee per year for successful applicants standing at €8,500, with a fee for renewal of €1,500.

I-Gaming companies may also have to pay an occasional €2,500 “system review” fee, which is paid in advance of an audit, carried out by a third party auditor approved by the Malta Gaming Authority.

The process undertaken by the relevant authority for the granting of a gaming licence takes around 12 to 18 weeks, with the gaming licences themselves lasting for a total of five years before needing to be renewed.

CORPORATE TAX RATE According to a Deloitte report into taxation and investment in Malta for 2014, companies are chargeable to tax in the country at a rate of 35%. However, “the application of the participation exemption, full imputation system and refund system typically result in an effective Malta tax rate of approximately 0%-5%”, leaving a highly advantageous fiscal regime in place for companies looking to set up shop on the Mediterranean island.

GAMING TAX RATES Class 1 licence holders pay a flat rate of €4,660 in their opening six months, with that amount lifted to €7,000 for every month that follows. Class 1 on 4 licence holders pay at the far lower rate of €1,200 a month.

Class 2 licence holders, as well as those that have their services hosted on a Class 4 platform, pay a sum equivalent to 0.5% of the gross number of bets accepted.

Class 3 and Class 3 on 4 licence holders also pay the same rate of tax, at 5% of real income.

Class 4 licence holders pay no tax for the opening four months of the duration of their licence, €2,330 for the following six months, and then €4,660 upon entering the second year of their licence and onwards.

ANTI-MONEY LAUNDERING Malta has implemented all EU directives on the prevention of money laundering, and is also part of MONEYVAL. Set up in September 1997, members conduct self, as well as mutual, assessment exercises of the anti-money laundering measures implemented by the Council of Europe countries.

On an individual basis, gaming companies must have anti-money laundering policies in place, and conduct regular KYC procedures.

REPORTING AND MONITORING The MGA uses Network Activity monitoring to check up on the real time data of the overall activity of a licensee’s gaming equipment, with analysis undertaken so as to intercept any suspicious gaming activities. Licensees must report their gaming taxes, gaming logs, player balances and play bank account statements on a monthly basis, while audited accounts are also required yearly. ◀

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ISSUES EVENT PREVIEWS

Malta iGaming Seminar preview When: Monday 7 – Wednesday 9 November 2016 Where: The Hilton Malta

VENUE This year’s Malta iGaming Seminar is to be held in the Hilton Malta, which sits overlooking the Portomaso Marina and just on the edge of the trendy town of St. Julians. Getting from place to place on the island could not be simpler, with a streamlined and modern bus service operated courtesy of public transport giants Arriva since 2011 and comprising more than 80 different routes. There are a number of bus stops within easy walking distance of the Hilton, while the hotel, with a fair wind, is a mere 20 minute drive from the airport.

Complete with several restaurants and bars and with free Wi-Fi available in public areas, the Hilton will prove a fine venue for this year’s event.

WHO IS GOING TO BE THERE? “2015 was a big year, 2016 is going to be even bigger” is the claim sitting front and centre on the Malta iGaming Seminar website. It might be quicker to list who wasn’t represented at last year’s event, with Playtech, Trustly and the Senet Group among those represented amongst a diverse group of attendees in 2015.

More than 35 experienced speakers have been lined to share their wisdom at this year’s conference, including Dr. Conrad Cassar Torregiani, International Tax Leader at Deloitte, and Geraldine Huijssoon, Head 12 GAMBLINGINSIDER.COM

of the Supervision and Operator Department for the Netherlands Gaming Authority.

After the success of the Malta iGaming Seminar in 2015, more than 400 delegates are expected to attend this year’s event.

Key partners this year include BMIT, real estate agency RE/MAX Malta and Capstone Group – if 2015 was anything to go by, this year’s Malta iGaming Seminar will be a tremendously widely attended event, with operators, suppliers and industry media organisations all well represented.

will kick off the second day, with the International Masters of Gaming Law (IMGL) Master Class also to come on the second day. The afternoon events will come in a “fishbowl” format, with a moderator and two to three “anchor” participants, with topics to be covered including the rise of eSports and how the industry will settle following the UK’s vote for Brexit.

NETWORKING The 2016 incarnation of the Malta WHAT’S ON THE AGENDA? iGaming Seminar will kick off with a A welcome speech will be delivered on good old fashioned welcome drink before day one by Maltese Member of Parliament day one, held at the Portomaso Casino with Christian Cardona, before a regulatory update all the respective wagering delights that venue courtesy of Joseph Cuschieri of the Malta has to offer. There are several networking Gaming Authority. A talk entitled The Good breaks weaved into the conference schedule, News and the Bad News will follow, with a giving attendees at this year’s event chance veteran from the Global Betting and Gaming to catch up with old friends and make new Consultancy, Warwick Bartlett, providing a run contacts, treating their carefully printed through of Malta’s healthy revenue numbers, business cards in the same way one might alongside an assessment of mounting challenges treat confetti at a wedding. in regulation and taxation.

Day one will culminate with a networking Further talks to follow on the first day reception in the Expo Area, while a Gala Night of the conference will cover a diverse range at the Grand Master’s Suite in the Hilton Hotel of subjects, including keeping up with the will recognise the most talented individuals in fast moving nature of the modern digital Maltese i-gaming, courtesy of iGaming Idol. economy, an overview of virtual currencies “Winding down” network drinks will bring and blockchain, and a look at the hidden the event to a close on day two, with attendees value in the “reactivated player”. sure to have much to reflect on after what will A keynote address from Contributing undoubtedly have been an impressive two Editor to The Economist, John Andrews, days of conference sessions. 

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EVENT PREVIEWS ISSUES

SiGMA preview

When: Wednesday 16 – Saturday 19 November 2016 Where: The InterContinental Arena and the InterContinental Hotel

GENERAL OVERVIEW The third annual Summit of iGaming Malta conference is near, giving the opportunity for one of gaming’s most important regions a chance to welcome over 3,000 attendees.

With hundreds of gaming companies being based in Malta and 9,000 gaming industry employees residing in the country, it always makes perfect sense for Malta to host one of the more eagerly anticipated i-gaming conferences of the year, and this is your chance to find out why the region is so lucrative.

There are expected to be 100+ exhibitors and 60+ speakers appearing at this year’s show. This will be a particularly attractive show for affiliates, with SiGMA paying for 300 flights to bring affiliates over to Malta.

AGENDA It is unlikely that any i-gaming topic will be off the table, with the conference agenda being split into four sections – sports, affiliates, regulatory and payments, and disruptive technology. Each sector will be given half a day’s space on the program, with the conferences running on days two and three of the show.

The conferences kick off with a gueststar appearance from former Liverpool and England footballer John Barnes, who will take his place on a panel that will be discussing emerging trends, such as peer-topeer betting and in-play betting. Two other

names to watch out for will be DraftKings CIO Jeffrey Haas, who will be on a panel divulging on the growing popularity of fantasy sports, and Johan Styren, CEO of LeoVegas, booked in for another panel talk, this time on the modern trend of omnichannel sports betting.

The attention will move to affiliates on the afternoon of day two, with a standout session being a four-man panel addressing the issue of Google’s algorithm updates, featuring Tal Itzhak Ron, Chairman of law firm Tal Ron, Drihem & Co. One of the key themes of the regulatory session on the morning of day three will be one of the potentially most influential business developments of recent years – Brexit. There will be two sessions based on the UK’s referendum vote in June that will result in its exit from the European Union, the second of which featuring gambling consultant Steve Donoughue. That will precede the focus switching to the industry’s M&A activity.

The final SiGMA conference includes a presentation on cyber security by George Quigley, Cyber Security Partner for KPMG UK. These are just some of the areas that will be touched upon, but while attending the show, you can also catch the KPMG eSummit, iGaming Boot Camp, iGaming Forum and Human Capital and Performance conference, with all addressing various gaming topics.

NETWORKING The summit is set apart by the fact that a number of activities will be taking place throughout the show that will allow you the chance to make new Malta-based contacts. These include a football tournament free for all delegates by subscription on day one, as well as the BiG Foundation Dinner and a poker tournament taking place on the first evening. Sponsored networking drinks will be held at Tapaz Lounge, outside the InterContinental Bay Arena at the end of each of the first three days. A careers convention and sunset harbour cruise are two of the networking highlights for day three and a champagne brunch rounds off proceedings on day four.

THE VENUES The show is split up into an expo and a conference, with the expo being held at the InterContinental Arena and the conference being situated at the InterContinental Hotel, specifically in the Cettina Decesare Halls. Single rooms at the hotel are priced at €130 per room per night and twin rooms will cost €150 per room per night.

WHAT ELSE IS THERE TO SEE AND DO? If you get time to drag yourself away from all the conferences and networking, then you could visit tourist attractions such as the medieval city of Mdina Old City, St John’s Co-Cathedral in Valletta, the Malta Classic Car Collection Museum or the nightlife around the Paceville and St.Julian’s areas.  GAMBLINGINSIDER.COM 13

ISSUES A TOURIST’S GUIDE

48 hours in Malta: Your ultimate guide With two major conferences taking place this November, Gambling Insider outlines some out of office activities that might just take your fancy away from the exhibition hall. Words Tom Lewis Malta is home to enough culture, history and economic promise to draw even the most stony-hearted to the shores of an island once dubbed “that tiny rock of history and romance”

by English Prime Minister Winston Churchill.

Of course, David Niven may once have cursed that “Malta is a sod of a place”, but you’ll forgive us for taking Churchill’s word over that of the weakest of the James Bonds.

Incidentally, The Spy who Loved Me, For Your Eyes Only and Casino Royale were filmed in Malta, while Bond’s creator, Ian Fleming, used to regularly holiday on the islands. It is, however, fair to assume that most visiting Malta for this Autumn’s selection of conferences would prefer not to engage in the 14 GAMBLINGINSIDER.COM

However, with museums covering everything from prehistory up to the Second World War, and galleries displaying the work of both the traditional heavyweights alongside local Maltese artists to be found all across the islands, that claim has a great deal of merit, making Malta’s selection as the European Capital of Culture for 2018 no surprise.

The National Museum of Archaeology in Valletta is perhaps the most famous of those sites, with a visit essential to anyone with an interest in the history behind Malta’s prehistoric MUSEUMS AND GALLERIES “Discovering 7,000 years of history is easier than temples. The original Sleeping Lady artefact, you might think”. A bold claim sits atop the Visit discovered at the Ħal Saflieni Hypogeum, is Malta website for anyone looking to take in some a must see, while the building of the museum of the country’s cultural and historic institutions. itself carries a great deal of history, with a salon tussling with international criminals Bond so readily throws himself into, nor his penchant for throwing out corny one-liners in the attempt to woo improbably attractive women. To that end, Gambling Insider presents a guide packed with more slightly more sedate activities to fit into 48 hours in Malta, with a broad and varied selection of things to see and do across a stay on the island and its neighbours, Gozo and Comino.

A TOURIST’S GUIDE ISSUES

RESTAURANTS AND NIGHTLIFE No visit to Malta would be complete without taking the time to visit the country’s ancient capital of Mdina. A medieval town with criss-crossing, labyrinthine streets, it is here that you will find one of thecountry’s finest eateries, Medina, which serves Mediterranean food to customers eated in an inviting and airy stone courtyard.

There are a number of excellent restaurants in Valletta, with Malata on the city’s main square among the best options it has to offer. Sitting outside confers upon patrons an exceptional view of the Grand Master’s Palace, with both the square and palace lit in spectacular fashion once the sun goes down.

Slightly less pricey bites to eat are also far from hard to come by. Café Jubilee in Valletta and the Piccolo Padre pizzeria in St Julians come highly recommended.

Interweaved with the baroque architecture that so heavily characterises the nation’s streets is a booming nightlife trade, with the St. Julians’ suburb of Paceville chief among the destinations for anyone seeking to extend their evening into the small hours.

Fort Saint Elmo

The Hilton hotel housing the Malta iGaming Seminar sits on Paceville’s outskirts, with a wide selection of pubs and clubs dotting the suburb’s eclectic, brightly-lit pathways. Able to cater for more than 3,000 revellers at any one time on a dance floor stretching more than 300 square metres, the Sky Club is among Malta’s biggest.

The nearby Portomaso Tower harbours the grandiose surrounding and flashy dress code of Twenty-Two, which as its name might suggest looks out over Portomaso from the tower’s 22nd floor. Shadow Lounge is another club at the same end end of the nightlife spectrum as Twenty-Two, equally stylish and serving drinks at three fully stocked bars.

Those into a more relaxed night on the town could do a lot worse than making their way to Havana, a popular bar playing a selection of rhythm and blues tracks, as well as plenty of soul and hip hop.

SIGHTS The aforementioned Grand Master’s Palace, built in the last 1500s by the Maltese architect

Mdina

Gerolamo Cassar, demands to be visited, sitting resplendent in Valletta’s main square and housing Neptune’s Courtyard, a tapestry chamber and the impressively grand Supreme Council Hall.

Cassar’s hand can also be found in the construction of St John’s Co-Cathedral.

Consecrated in the year 1578, it boasts a similarly breathtaking interior, as well as a magnificent collection of tapestries and artwork, the highlight of which is a painting of St John the Baptist by Caravaggio.

The Maltese Islands have three sites inscribed on the UNESCO World Heritage List – these are the city of Valletta, seven of the Megalithic Temples dotting the islands and the Ħal Saflieni Hypogeum. The archaeological importance conferred on the islands by these temples and the Ħal Saflieni Hypogeum sets Malta’s history apart from many of its Mediterranean neighbours, and according to the Visit Malta website, the megalithic temples

Grand Master’s Palace

“are thought to be the oldest freestanding buildings known to man.”

The Ħal Saflieni Hypogeum, an extraordinary and vast underground necropolis hewn from the rock in the year 3600 BC, contains three levels and offers up many questions as to the history of these islands, although anyone wishing to see inside must book well in advance as only 80 visitors per day are permitted to enter.

On Neighbouring Gozo, a hop on, hop off bus tour is among the best ways to take in the islands beautiful vistas and fascinating temples, with the island itself easily reached by taking advantage of a regular ferry service, the trip itself taking no more than 25 minutes. Once on the island, the Citadel, or Il Kastell, should be your first port of call. Once used as a refuge from attacks by Ottomans and pirates, it is now replete with museums, as well as an impressive central cathedral.

Should you find your way to Comino the island nestled in between Malta and Gozo, an eight kilometre circuit walk will allow you to blow away the cobwebs, and also take in the natural beauty of the Blue Lagoon and the Santa Marija Bay. Great views can also be had along the dirt road route, which will take you to the island’s highest point. The end of the trail will take you past the Saint Mary’s Battery and back to the Blue Lagoon. photo: mystical77/Shutterstock.com

on the museum’s upper floor conveying the grandiosity of the building’s former glory as the Auberge de Provence.

Both the National Museum of Archaeology and the Spajzu Kreattiv at St. James Cavalier hold regular exhibits of art, sculpture and ceramics, with the pair more than worth a visit for anyone stopping in Valletta. Staff at both St. James and the nearby Fine Arts Museum can happily provide details of local artists should any visitors wish.

The National War Museum is located in Fort Saint Elmo, the site of the Great Siege of Malta, when the outnumbered Knights Hospitalier and a Maltese Militia repelled an attempt at invasion by the Ottoman Empire. It provides a great deal of insight to the island’s history and is filled with information and items from World War II, including Italian torpedo boats and the George Cross that was awarded to all the Maltese people in 1942.

St John’s Co-Cathedral

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COVER FEATURE RECRUITMENT

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RECRUITMENT COVER FEATURE

The price of success With hundreds of online gambling companies having firmly planted their flags in Malta, hiring and retaining key staff – especially in technology roles – is an on-going challenge. Julian Rogers takes a look at the market from an employee's perspective, and hears from those at the sharp end of recruitment on the island

Ever since Malta became an online gambling trailblazer in 2004 by being the first EU member state to regulate remote gaming, the country has been a magnet for many of Europe’s most prominent online gambling operators and suppliers. Today, more than 250 companies, including industry heavyweights such as Betfair, LeoVegas, Betsson, Mr Green, Tipico and Cherry have their headquarters or operations there, making the island something of a remote gambling Mecca.

The industry has also turned out to be a cash cow for the Maltese Government, with both online and land-based gambling contributing more than €52m a year to state coffers through gambling taxes. The sector also accounts for 11% of GDP. And, of course, it has led to a huge influx of i-gaming professionals over the years. “In the beginning, it [Malta] was a bit like the Wild West, while now it has become super professional, attracting talent from all kinds of different industries,” says Mr Green CEO Jesper Kärrbrink.

Yet the industry’s rapid expansion as Malta transformed into the world’s premier online gambling hub meant that competition has always been intense between companies when looking to hire and retain the best talent.

“It’s always been fierce and undoubtedly getting fiercer,” states Angelo Dalli, CEO of Malta-based online gaming platform software company Bit8, although Kärrbrink sees competition as a positive. “This competiveness is actually what drives the industry,” he says. “Malta is for i-gaming what Silicon Valley is for tech companies.”

There are currently more than 8,000 people employed directly and indirectly in the online gambling industry – spanning everything from software development and digital marketing roles to data science and customer support.

And yet many companies still struggle to fill job openings, particularly tech roles.

“I wouldn’t say [there is] a staffing crisis as such,” explains Gemma Hodge, Head of HR at Cherry. “But competition can indeed be fierce sometimes. Companies are obviously very keen

to keep good staff members and will present tempting counter offers to them if they have received another offer elsewhere.” Hodge, who says Cherry’s headcount has almost doubled year on year in the four years she has been with the Swedish operator, also highlights how some tech roles are “particularly hard to fill”, while timeframes to close a position can take months in some cases. It can also prove hard to recruit staff with desirable language skills to meet the demands of a 24/7, global industry like online gambling. “Norwegian is certainly a competitive language – always has been and always will be,” she says. “German speakers have also been in hot demand this year.”

Bit8 is currently embarking on an aggressive expansion drive, with the target being the addition of 50 roles to the current workforce of 80. Yet whilst filling customer support positions has been “relatively easy”, recruiting for the more technical jobs in software development, business analysis and UX design has thus far proved to be more difficult.

“If we were in London where lots of other industries need those skills as well, it might be a bit easier,” says Dalli, “but I’m still confident

January 2014. Talent acquisition manager Justin Paul Anastasi echoes the view that competition for staff has intensified noticeably of late. “Yes, the environment for finding talented individuals has certainly gotten harder and the competition is ever-growing within the same talent pools, making the industry quite candidate-driven, especially when looking at IT or languagespecific roles.” He continues: “Competition in most industries is fierce and i-gaming is no different, especially with it being such a fast-moving industry. However, it has not yet created a crisis and ultimately where there is a will, there is a way.”

Boasting an average of 300 days of sunshine a year, as well as some 7,000 years of history, great restaurants and leisure activities, all surrounded by crystal-clear waters, it is little wonder the so-called "Gem of the Mediterranean" is a natural draw for expats. Furthermore, the capital, Valletta, which takes centre stage as European Capital of Culture in 2018, offers good connections to major European cities, while Air Malta flies to over 35 countries across the continent. Besides this, Malta is part of the Eurozone and English is widely spoken

This competiveness is actually what drives the industry. Malta is for i-gaming what Silicon Valley is for tech companies – Jesper Kärrbrink we will fill them with highly skilled people because this is a great place to live and Bit8 is an attractive place to work. It will just take a little bit of time because Malta has been a bit of a victim of its own success in growing very quickly. But recruitment is definitely catching up.”

Meanwhile, Live Casino supplier Evolution Gaming employs almost 400 people, including international dealers and operational staff, at its state-of-the-art Malta studio, which opened in

due partly to the fact the country is a member of the Commonwealth, with close historical connections to the UK. “Malta is most certainly an easy sell,” says Anastasi.

But with so many companies needing to call on the services of these expats, it has meant wages, particularly for the more specialist roles, have risen in the past few years. If you want the best, you have to pay for it. And it’s not just bumper salaries; job seekers ▶ GAMBLINGINSIDER.COM 17

COVER FEATURE RECRUITMENT year as a software engineer or €80,000 a year as a marketing director at an i-gaming company, Malta’s rents aren’t really going to put a hefty dent in your pay packet. Indeed, housing could be deemed a reasonable outlay compared with wallet-draining cities such as London where a centrally located, one-bedroom flat will set you back the best part of £2,000 a month.

Many of those that move to Malta tend to be Millennials, often drawn by the island’s natural charms coupled with the chance to experience life in a foreign country surrounded young people of various nationalities. Although this makes for cosmopolitan work environments, it does tend to mean the sector has a transient workforce, sometimes with a propensity to jump ship to a rival company. As a result, staff turnover is an on-going issue.

“As an industry we do suffer from our fair share of job-hopping,” says Dalli. “But I think it’s up to the employer to make itself an attractive place to stay, as well as join in the first place.

After all, we are in the retention business as well as acquisitions.” On the flipside, Svensson says: “Let’s be honest, working in the same company for ten years is no longer the norm, whichever the industry – I would dare say that such behaviour would nowadays raise eyebrows.”

There is also the real possibility that these Millennials will only stay in Malta for a year or two before returning to their home country, or perhaps another destination to find employment, or maybe settle down and start a family. This situation keeps HR departments and the slew of recruitment agencies that have sprouted up in the country busy. Kärrbrink says: “We must remember that many of the employees in the i-gaming industry are young and foreigners living here with kids and spouses and, by such, will move back home again at some point, meaning that recruitment and talents search always will be an important part of our industry.”

Hodge also adopts a similar philosophical viewpoint. “It is a factor we accept – we will have more risk of people leaving the island.

We try to combat this as much as possible but sometimes it is out of our control. However,

Photo: giovanni boscherino / Shutterstock.com

have come to expect attractive company benefits and relocation packages if arriving from overseas, not to mention shiny, modern work environments in lively locations. “The competitiveness of the industry does drive salaries up, which will affect the overall economy in Malta,” Anastasi remarks.

However, Frida Svensson, head of HR at mobile-first operator LeoVegas, which runs it operations division from Malta, reports that the upward trend in salaries has recently plateaued to a certain degree. “I think wage increases have actually normalised as of late, although it is very difficult to benchmark ourselves as there is no reliable salary data for the industry in Malta.” Svensson also says that attracting and retaining staff is a combination of factors, such as company reputation, growth, a fun working environment, and having a good variety of added benefits. “It is not just about salary, although that does play a key part,” she acknowledges. Nevertheless, Kärrbrink suggests climbing salaries have had a knock-on effect on living costs. “It is not only salaries [that have risen]; it spans from office rent to housing to prices on food and other things,” he says.

“And I actually see this as perhaps the largest problem for Malta – it is becoming too expensive for regular people.”

To underline the point, an article published in the Times of Malta in August reported that National Statistics Office figures showed how rent for a one-bedroom apartment leapt 38% in the past four years – up from an average of €437 a month in 2012 to €605 a month. Rent for two-bedroom apartments rose 29% during the same period, with tenants now paying an average of €796 a month, while three-bedroom apartments increased 23%. Economists attributed the escalating rents to a booming economy and, perhaps inevitably, the influx of overseas workers choosing to reside in rented accommodation.

Also, many people upping sticks and moving to Malta are single, which puts pressure on one-bedroom housing stock, therefore pushing up rents, particularly in desirable spots such as Sliema, St. Julian’s and Paceville. But it has to be put into perspective; if you’re earning €50,000 a

The cost of rent continues to rise in Valletta

18 GAMBLINGINSIDER.COM

Angelo Dalli

without the Millennials I don’t think the industry would be what it is today, so we have to take the rough with the smooth. On a positive note, though, we are faring well with reduced turnover year-on-year and have seen our employees in junior roles develop into more challenging careers at Cherry. Last year alone, we promoted around 35% of our customer support agents to other positions in the company, which has been fantastic as we have retained the knowledge within the company as well as the person who fits in to our team culture.”

Another key issue that could very well impact Malta and the i-gaming industry is “Brexit” following the UK’s shock decision to depart the EU in this summer’s referendum. Malta Gaming Authority executive chairman Joseph Cuschieri spoke after the result about how Brexit could affect the remote gaming industry in terms of movement of staff and funds, as well as tax, but the truth is no one knows for sure what the long-term implications will be. Europe’s other online gambling hub, Gibraltar, is on the verge of being harder hit as things stand though, considering that it is a UK territory. The “Rock” on Spain’s southern tip is home to 30 or so online gaming companies employing around 3,000 people, raising the prospect that Brexit could lead to staff and companies relocating their operations, possibly to Malta.

“Yes, there are concerns and we did feel an increased level of interest from people currently employed in Gibraltar,” says Svensson. “The process to exit the EU has not even started and even once it starts, it is expected to last for a couple of years – so I believe that many people are actually waiting to see what will happen and then decide once things become somewhat clearer.” In the meantime, though, the focus for Malta’s i-gaming firms is laser-trained on growth and having the right people onboard to facilitate this momentum. It’s also about working smarter, according to Mr Green’s Kärrbrink. “The industry needs to become even more professional. We have a lot to learn from other industries in many aspects, from how we work with processes and data to customer retention and product development. Our challenge is to do this better than the other 250 i-gaming companies on the island,” he concludes.

COVER FEATURE ACADEMICS

Mastering game design One method of solving the talent shortage in Malta is to educate students in industry-relevant academics. Professor Gordon Calleja, Director of the University of Malta’s Institute of Digital Games, takes GI through the Masters course offered by his department, and how it is helping to develop graduates able to meet the challenges of modern game design head on When was the MSc in Digital Games first offered, and what were the motivating factors behind offering the course?

The MSc in Digital Games launched in the autumn of 2012. There are two inter-related reasons for launching the programme. First and foremost, Malta lacked a comprehensive programme in games. Secondly, a number of us had just moved over from different universities from across Europe, primarily IT University of Copenhagen’s Centre for Games Research, and we were eager to share our accumulated knowledge and on-going research with students.

So the programme is designed to accommodate students who want to follow either an industry or research-oriented path.

As described, our strong-point is cuttingedge research and multi-disciplinarity.

Could you outline the experience of Contemporary game design requires a yourself and your fellow members of constant emphasis on innovation and staff at the Institute of Digital Games originality of ideas. While aspects of the game in the areas of games technology and industry still survive on derivative titles and game design? franchises, this is becoming increasingly less Our expertise is fairly wide-ranging so viable a commercial strategy. We prepare our I’ll give a summary. The Institute of Digital students for this environment by pushing them Games has staff from multiple disciplines to think outside of the box when it comes to including humanities, computer science, game design and, especially, to use innovative engineering, architecture and design. In terms technologies in their work (in the case of of specialisations within those disciplines, we Design and Technology Students) and giving have people working in player experience them a broad analytical education (in the case from both technological and psychological of Design and Analysis) that gives them the perspectives, with particular emphasis on conceptual tools to critically analyse games affective computing, player involvement and and understand the gaming phenomenon presence/immersion. We also have a strong from an experiential and socio-cultural presence in narrative analysis and design. perspective. The latter is a crucial component Another area that there are several staff and to garnering innovative and reflective design funded projects is machine-assisted creativity that is too often neglected in both industry and procedurally generated content. We also and vocational game programmes that we have a cluster of researchers working on sound emphasise in our education. design and analysis from both humanistic and technological perspectives. Finally, we How far do graduates receive a grounding have an emphasis on various aspects of game in both the technology that powers games design. Some of our researchers are world and in the creative side of game design, for leaders in their respective fields and we happily example in graphics and game mechanics? attract a considerable number of international Both aspects are covered strongly, but being researchers spending research periods and a graduate programme technology students sabbaticals with us at the IDG, which adds to the are required to have a solid computer science vibrant community of developers and students or engineering background to be admitted we have present with us most times of the year. into the Design and Technology thread of the programme. We have a strong emphasis on How does the teaching at the Institute innovative game mechanics and game design of Digital Games go about providing in general so both sides are covered strongly. graduates with the skills to meet the We do not, however, cover game graphics at all. challenges presented by modern Other parts of the University of Malta deals game design? with the visual art side of things.

20 GAMBLINGINSIDER.COM

How important is prior experience in game design to those hoping to enrol in the Masters course?

While preferable and surely helpful, it is not a pre-requisite.

How do the two streams of Game Analysis and Design and Game Technology and Design differ?

The Game Analysis and Design is focused on critically analysing games to supplement the game design process, and is thus more focused on the creative side of game design.

The Game Technology and Design stream has a strong emphasis on artificial intelligence and procedural content generation, either for their own sakes or to supplement design for more technically oriented game designers.

In terms of the demographic of the course, is it primarily Maltese, or do you take a lot of international students? Is there a large range of ages enrolling in the course?

The intake of the course is mixed. Some years there have been more foreign students than Maltese, in others its been the other way round, but every cohort has enjoyed a mix of students.

Do you feel the i-gaming industry’s strong presence in Malta presents graduates of the MSc in Digital Games with good opportunities for employment and work experience?

Yes, especially with the increasing interest of the i-gaming industry in skilled gaming, there is more of a need for game designers that have gone through our education. In general though, our students are more interested in working within the video game industry. ◀

COVER FEATURE EXPAT LIFE

An expat’s guide to life in Malta

Moving to a new country can be a daunting experience, especially if you don’t have all the information you need at your fingertips before you relocate. After living in Malta for eight months, Yggdrasil Product Owner Pawel Piotrowski tells Gambling Insider the information potential new expats should consider before taking the plunge with a move to the island What were the unexpected challenges you encountered when you first relocated to Malta?

It's now been eight months since I moved to Malta, but as I had worked in Yggdrasil's Krakow office for a while before moving over, I'd made short visits here a few times before deciding to leave Poland.

Being Polish, I wasn't accustomed to lefthand drive traffic and I had to be extra careful when crossing the streets as the traffic comes from the other direction, especially considering that the driving style tends to be a bit erratic and there are lots of accidents.

The other thing is the heat. It's not that I was expecting a completely different climate and I generally like hot weather, but in the summer the heat becomes pretty relentless after a while.

AC, or at least a proper fan, is a must when you're booking a hotel room or looking for an apartment. This kind of weather attracts lots of tourists during the summer season and, given the fact that Malta is one of the most densely populated countries in the world already, it gets really crowded here at peak times.

In your opinion, what are the biggest positives and negatives of living in Malta?

Every place has its perks and disadvantages.

Who wouldn't like to live on a Mediterranean island, at least for a while? If you enjoy sun bathing, swimming or any kind of water sports, it’s a fantastic place to enjoy all of those things.

The sea temperature can go up to 27°C during the summer. There aren't that many quality sandy beaches on Malta, but the rocky ones 22 GAMBLINGINSIDER.COM

are really charming and picturesque. It's not uncommon to go for a relaxing swim during a lunch break at the office, which you can’t say about many other places you could possibly work around the world.

Malta also has a very long and interesting history, which means that the island has a rich culture and lots of cool places to visit.

The capital city, Valletta, is a UNESCO World Heritage Site. It's absolutely stunning with beautiful architecture, parks, museums, restaurants and cafeterias. The islands of Gozo and Comino, which are a part of Maltese Archipelago, are also very popular weekend destinations.

And if you're into nightlife, St. Julian's, Sliema and Gzira are the cities you want to go to. Considering all the things you can do with your free time, there's no way of getting bored after work.

Because you’re working in such a touristic place guarantees that you'll have lots of friends visiting, which is also a bonus compared to other expats who are working somewhere less appealing to visitors, so having an extra guest room when renting an apartment is a good idea.

Overall, living here is easy, it’s slow paced with Mediterranean charm. It's a perfect place to enjoy a chilled out lifestyle away from the office, which definitely appeals to a lot of people in the gaming industry, particularly if they have worked in a busy capital city before and want to experience something different.

English being an official language here is also a huge plus, it makes your life so much easier when language barrier doesn't exist.

On the downside, Malta is a very small country and some people become claustrophobic after spending a few years on the island. I have visited most of the interesting spots at least a couple of times during the eight months I have lived here, and I understand people who decide to leave after a year or two. On the other hand, Sicily is within a stone's throw of Malta, so you can always go there for a few days whenever you feel an urge to change the scenery.

How have you found Malta’s transport network? On an average day, what is the commute to the office like?

EXPAT LIFE COVER FEATURE

The traffic on the island can be really heavy, especially at the times when people are driving to and come back from work. There are 350,000 registered vehicles on the island, which is a huge number considering the fact that the population of Malta is around 420,000.

I don't own a car since I live next to the office, so whenever I travel around the island, I take a bus which is the main mean of public transport. The buses are pretty new, fitted with AC and will get you to most points of interest on Malta and Gozo (there's an efficient ferry service between the islands). The buses are frequently late and if it's wasn't for the public transport app that shows you an approximate time of arrival for each bus, they would be

completely unreliable. During high season buses tend to be completely packed on popular routes and it's not uncommon for them to just pass by without stopping after you've been patiently waiting at the bus stop for half an hour.

On the plus side, ticket prices are reasonable.

One ticket costs â‚Ź2 during the season and it's valid for two hours which is more than enough considering the fact that it takes a maximum of around an hour to get to virtually any destination on the island provided that there's no traffic. If you're a resident or if you come for longer holidays, it's a good idea to buy a prepaid public transport card which gives you a discounted price.

Taxis on Malta are inexpensive and shouldn't cost more than â‚Ź30 to get you all the way from one side of the island to the other.

How easy is it to integrate your family into local life?

I haven't started a family of my own but many people arrive with their families, often with small children and it's a perfect setting for them.

It's not hard to find a job and English is spoken in schools. Lots of expat families from different countries find their new home here and it's easy to find friends among people who are in the same place and situation in their lives. With Malta being a small island, most of the places you need to go to are a walkable distance, â–ś GAMBLINGINSIDER.COM 23

COVER FEATURE EXPAT LIFE so you don't have to spend a lot of time in the car when shopping or taking your kids to the playground, cinema or other activities.

How different is the cost of living in Malta compared to your home country?

The cost of living in Malta is significantly higher than it is in Poland, if I was estimating I would say the cost of living is roughly twice as expensive. The apartment rental prices go up each year pretty drastically due to high demand in the market. Prices are also seasonal, they go up during the summer as the landlords would rather focus on tourists and rent to short term lets. A single bedroom apartment in a good location costs around €800 a month, and a three bedroom apartment for a family or a group of friends will probably cost around €1800 per month. Lots of new people arrive on Malta and others are leaving regularly, and people tend to change apartments pretty frequently even when they aren’t leaving the island, so it's no wonder there are numerous letting agencies around.

The offices of most of the gaming companies are located in touristic areas of Malta, so the shops and restaurants in the areas around most offices tend to be pricey. The only prices that seem to be on par with the ones back home are for public transport and entertainment. Utilities and clothes are also inexpensive, considering higher salaries employees in the gaming industry receive in Malta.

What’s the infrastructure like in Malta, are there any issues that surprised you?

Unfortunately the infrastructure is far from perfect. Malta isn't pedestrian-friendly. The pavements are usually very narrow and you often have to enter the road to make way for

My leisure activities haven't changed that much since coming to Malta, especially on the weekdays, when there’s not much free time after I finish work. What is completely the other way around compared to Poland is how I spend my free time during different seasons.

When it gets really hot during summer season, I usually spend time indoors. I go to the gym regularly or play squash. When I don’t feel like working out, I enjoy board games with colleagues, a movie at one of the local theatres, or just read a book whenever I feel like spending some time alone. During the weekend I might hit one of the clubs or cool myself down in the sea. During the off-season when it gets a bit colder and there are less tourists, I take my camera and explore the islands. Temperatures become perfect for outdoor activities like jogging or playing tennis.

What do gaming companies such as Yggdrasil do to assist expats when they relocate to Malta from overseas?

I’m not sure about other companies. Depending on the contract, it’s usually a decent relocation package that covers the costs of relocation and lets you rent a place for the first month. The company also helps you arrange temporary hotel accommodation and recommends some letting agencies that can help you find an apartment really quickly. My situation was slightly different as I already worked for Yggdrasil before moving here, so I stayed at my colleague’s place. It only took me three days to find a decent apartment.

What piece of information do you wish you’d known before you moved to Malta?

It’s not worth hunting for an apartment when you’re not yet on Malta. I spent a lot of time on that. Good apartments here get rented really

It is easier to make new friends here than back home, because everybody is in the same position as you are, looking to meet new people people going in the other direction, not to mention walking side by side with someone else which is often not possible. Sidewalks also tend to be slippery so you have to be careful especially after the rain. Lots of the roads are also very narrow. With cars parked on each side it's often impossible to pass a car coming from the other direction. Last but not least is the lack of bicycle lanes in the cities. You don't see many bikers in the city areas as they need to use the roads which can be very dangerous.

How do you spend your leisure time in Malta and how does it change with the seasons?

24 GAMBLINGINSIDER.COM

quickly, often straight after being made available.

You hear a lot of stories about places being rented out while you’re on your way to check them out or even after checking them out and going to the bank to withdraw money for a rental deposit!

Good agents working with same landlords for a long time can take you to the places that aren’t even listed anywhere yet. Website listings are usually outdated so it’s a waste of time to browse through them.

The other thing I wouldn’t do again is bring far too many cold weather clothes to Malta.

It’s never cold enough to wear them, if you’re coming from a country like Poland or the UK you can leave half of your wardrobe at home.

Pawel Piotrowski

How hard is the transition to expat life without the same personal support network you had before?

It’s not that hard really. Of course it differs from person to person, but in general it’s a good way of stretching your world view and putting you out of your comfort zone a bit, which I think is a good thing. People in the industry here are mostly expats from lots of different countries and most of them are friendly, offer advice and help when needed. There are lots of regular expat meet-ups in the evenings. It is way easier to make new friends here than back home, because everybody is in the same position as you are, looking to meet new people. Local people are very accommodating too, which makes a big difference. Maltese colleagues can give you lots of useful tips and help you find the way around.

What kind of comforts are you missing in Malta that you had back home?

It’s hard not to miss friends and family. Luckily I have lots of friends visiting me on Malta and quite often I fly to my home town of Krakow to spend a week there. I miss my favorite spots, restaurant and events I used to attend back in Poland, but what I miss the most after almost a year of living here is the beautiful nature back home – mountains, green forests, lakes. I remember going back home for the first time and I just couldn’t stop staring through the window of a taxi on my way from the airport.

You don’t get to see this kind of landscapes on Malta, the island is incredibly beautiful in its own right but in a different way.

Otherwise life is really comfortable here.

It would be hard for me to find a better place for work outside of Poland. A Mediterranean island where you can work in your preferred industry and English is an official language?

It was a no-brainer to move out here. ◀

FEATURES JOHAN STYREN

“Malta is the best location for i-gaming professionals” Gambling Insider sits down with Leo Vegas CEO Johan Styren to discuss the operator’s impressive growth over the past four years, and how Malta has cemented itself as the ultimate location from which to run a digital gaming business Tell us about yourcareer in gaming to date.

I started my career in the gaming industry in 2008 when I joined Unibet in London as a Business Development Manager. Over the following three years I worked my way through several management positions at Unibet where I really got to see all aspects of the gaming industry.

In January 2012 I joined Gears of Leo in Stockholm – the software provider for LeoVegas – as their COO where I had to set up and manage all operations.

In October 2012 I was made responsible for LeoVegas Gaming in Malta as its CEO, and as they say, the rest is history.

You’ve been CEO of LeoVegas for four years, what are your personal highlights during that period?

In all honesty sometimes the past four years have passed like a flash as it’s been non-stop all the time, and I believe that we have truly achieved impressive results.

enough to call colleagues. In just four years we have managed to place LeoVegas on the map and are nowadays on par with much larger and much longer established operators in the industry.

Another highlight was when we started operations in the UK, just over two years ago.

It was a very tough decision as the competition there is dire, but we knew we had a strong product and so decided to go for it. I must say that this was one of the best decisions we’ve made, and it has also taught us a lot when it comes to operating in new markets.

The listing on Stockholm’s stock exchange and the launch of two new product verticals were also some of the pinnacles of the past year – but more on these later.

How has the industry changed from your perspective over that period of time?

I believe the industry has really matured over the years. Anyone working in i-gaming for a few years can attest how over the past few years the industry has become more

The listing on Stockholm’s stock exchange and the launch of new product verticals were highlights in the last year For me, the best highlight has been the opportunity to surround myself with hard working professionals whom I’m fortunate 26 GAMBLINGINSIDER.COM

mature and professional. It has learnt a lot from other industries and adopted a lot of best practices when it comes to customer

acquisition, payments and fraud, customer support, etc. – all the serious and established operators have really upped their game.

What was your first impression of Malta when you made the move over?

I think Malta’s charm manages to win over everyone’s imagination. Initially I only explored the area around our office in Sliema. After a few weeks I then started to venture to other parts and discover more of the island and quickly learnt that even though Malta is small (when compared to other Western European countries), it has a lot to offer.

Recently I’ve heard someone describing Malta as a big open-air museum; and I agree. Its rich history spans millennia and you still have the opportunity to visit

JOHAN STYREN FEATURES

and enjoy most of it today. There’s also the renowned Mediterranean cuisine, the sea, and of course, the great weather.

In your opinion, is Malta the premier location for i-gaming professionals?

Yes. At the moment I think that Malta is the best location for i-gaming professionals.

There are some 280 gaming companies operating from Malta, employing around 8,000 people and contributing 11% to the country’s GDP. Those statistics are from 2015 so one would assume that the numbers are now even larger. Furthermore, the island has managed to attract a lot of related service providers who have opted to open shop in Malta.

The bottom-line is that the industry is really growing in Malta and thus the

opportunities for professionals to progress in their careers are on the rise too.

LeoVegas is synonymous with mobile. Has it always been like this?

Yes. LeoVegas was born when the two co-founders, Gustaf Hagman and Robin Ramm-Ericson, anticipated how mobile technology would evolve. Look around you today and you quickly realise that it became the norm for people to carry one or more mobile devices around.

People are constantly online and they use the same devices interchangeably for work, personal life and leisure.

We have managed to build a robust mobile-first platform that we’re able to use and apply for all our products – be it casino or sport. I think that all the big

operators have realized the importance of mobile gaming. However, what we keep finding is that rather than going mobile first, many still opt for a desktop-first approach and then try to adapt their product for mobile. Such an approach does not only affect the aesthetics and user experience of the product – there are a few quick fixes for that. The issues start to arise when it comes to speed, data usage, loading times, etc., all of which are very specific to mobile devices and are not given too much importance when developing for desktop. Having a mobile-first product enables us to provide speed and reliability throughout the customer’s experience with us. Today, LeoVegas is still very much a mobile-first company and we often say that mobile is part of our DNA. ▶ GAMBLINGINSIDER.COM 27

FEATURES JOHAN STYREN The most important aspect is that as a company we have never taken things for granted. So even though we’re synonymous with mobile, we strive to always be on top of new technologies and exploit new opportunities that new operating systems have to offer. For example, with the recent iOS devices we were able to offer customers the ability to search for any

As said, we’ve been in Malta since October 2012 and one of the reasons we decided to base our operations on the island was the fact that Malta was the first EU jurisdiction to issue gaming licences.

Initially we started off with a small office in the heart of Sliema that was more than enough for us as back then we were only five people. Eventually we grew and

Operating from a country in which you can meet with most of your suppliers faceto-face helps to build relationships game within the LeoVegas game lobby using their iPhone Search Bar on their home screen. We have also managed to incorporate 3D Touch technology using pressure sensors to provide Peek and Pop access to the latest played and top featured games straight from the iPhone home screen without the need to launch the product. Furthermore, through our Touch-ID Login customers are able to conveniently login into our App using just their fingerprint.

This unique position is what attracts customers to LeoVegas initially, and I am happy to say that we have some of the highest customer retention rates in the industry. This means that our customers are happy with what they find at LeoVegas.

Another proof of our mobile first approach is that over 60% of our deposits and revenues are actually generated through mobile devices.

I’m really glad that we were lucky enough to be able to expand in the same office and today occupy almost 2,000 sqm.

What are some of the good things in Malta that you would recommend to others?

Personally I think the biggest benefit is that by operating from a country in which you can meet with most of your suppliers face-to-face really helps you in building professional relationships with them. Moreover, in the last 15 years Malta has managed to attract ample expats and locals who by now can easily be described as highly experienced professionals.

How many people do you employ and is recruitment a challenge?

At the moment we have some 250 professionals working in the Malta office. Being located on an island that is considered as an iGaming hub has What were some of the pivotal its advantages and also its challenges. moments of LeoVegas that have been crucial for its growth and development? Whereas for certain roles it is relatively easy to recruit (due to the high number In just four years LeoVegas has had its fair share of milestones. Some of the early ones included winning prestigious industry awards, such as Innovation in Casino and Innovation in Mobile and Tablet by one of the industry’s major publications. A more recent milestone has been when we went public on the Nasdaq First North Premier on 17 March 2016. This has facilitated LeoVegas’ continued growth strategy as it broadened our shareholder base and provided access to the Swedish and international capital markets.

More recently, we’ve launched two new product verticals – LeoVegas Sport and LeoVegas Live Casino, both of which are already consolidating our growth.

Why are you based in Malta and how long have you been there?

28 GAMBLINGINSIDER.COM

of talented and experienced expats on the island), other posts are more challenging and require more effort from our impeccable HR team.

All in all, Malta has been a great environment for us to grow. We went the extra mile when it came to office environment and managed to create a fun, yet professional atmosphere. We’re lucky to be situated in the centre of Sliema with an office space that more or less has it all, including terraces with amazing views.

The combination of Mediterranean weather and a fast pace working environment has created a great environment for us to attract and retain talent.

What’s the atmosphere in your offices like? Do you still have that start-up vibe to it, or have you outgrown that?

Fun! LeoVegas’ most valued resource is our Lions – often referred to as “staff ” in other companies. I feel that the company is really defined by the great people who form it and not the other way round. One of the aspects that is really valued by everyone at LeoVegas is the environment that we have managed to create and maintain. We are a young entertainment company (the average age is less than 30 years) and whilst we are professional in everything we do, we also value the fun and friendly culture that we have with one another and with our customers.

At LeoVegas we also cherish the entrepreneurial spirit that permeates throughout the organisation. You can still experience the “start-up” vibe whereby decisions get acted upon quick and you can start seeing the results of your initiatives right away. This works so well because of the great people who work here and the culture that everyone takes personal responsibility to contribute their upmost to reach our shared goals.

LeoVegas was extremely active during Euro 2016

FEATURES VALERY BOLLIER

“The Silicon Valley effect is an absolute reality in the Maltese i-gaming sector” Oulala CEO Valéry Bollier gives Gambling Insider an insight into launching a new gaming business, and the business environment for an operator, in Malta How long has Oulala been located in Malta? Did you launch in Malta or did you relocate to the island?

I moved to Malta 11 years ago, to launch ZEturf, the first competitor of the French horse racing monopoly. Picking Malta as the base for ZEturf proved to be an excellent choice because Malta strongly supported us in Brussels. A few years later I met fellow Frenchman Benjamin Carlotti, future managing director of the company, who introduced me to the concept of Daily Fantasy Sports (DFS). Ultimately he moved to Malta and, together, we rolled up our sleeves and began putting together our business.

We launched Oulala in 2012.

What criteria went into selecting Malta as the jurisdiction to locate Oulala?

The survival rate of a start-up is dramatically low.

Picking the most efficient location is therefore a key strategic decision for an entrepreneur, since it could have huge direct consequences on a company’s future.

While the financial aspect is obvious (the break-even point of Oulala would have been 3.5 times higher in France), some less visible factors are also key. Just to give you one quick example: Maltese people have an amazingly positive vision of the future, they always think “tomorrow will be better than today”. As a startup, you desperately need to be surrounded by a positive and upbeat atmosphere.

Additionally, one thing I have observed in Malta is how carefully guided start-ups are, with the help of numerous business incentives specifically implemented to aid them. Within just a few years, Malta has built an efficient ecosystem for digital start-ups. Business incentives come from various official sources: Malta Enterprise, Malta Communications Authority, Takeoff business incubator and the Ministry for the Economy, 30 GAMBLINGINSIDER.COM

VALERY BOLLIER FEATURES Investment and Small Business, to mention a few, which is a great aid.

Less visible factors that are vital for success include Malta’s excellent education system and its modern and efficient health system. Overall, Malta is offering a lot of obvious, but also hidden, advantages for startups. There is no doubt that Malta will soon become a major digital hub in Europe.

Why do you operate under the UK gambling licence? Was it difficult to obtain?

The market always moves quicker than the legislators, so when DFS crossed the Atlantic, DFS operators had no other choice than to apply for, and operate with, a sports-betting licence (a pool betting licence in the UK, for example). As a consequence, a DFS operator will legally be treated as though it is a sportsbook or a casino, even though they are very different types of businesses.

The resulting situation is that the legal framework is unsuitable for DFS operators and their specific needs. An obvious example is that DFS companies operating under a European licence are unable to accept American customers, even though DFS is legal in some U.S. states. This means that the licence prevents companies from offering services to customers that are legally allowed to use them! Kafkaesque!

It is clear that DFS is very different to traditional betting and that a specific licence framework is required for this new opportunity to be of any benefits for both the customers and the operators.

At Oulala, we have already spoken to European legislators about our sector’s needs.

Malta will soon be the first European country to offer a specific license for skill games.

The first step towards the skill-based licensing framework was made last month, when MGA announced that DFS is exempt from the requirement of a gambling licence.

The framework is expected to be passed by the end of this year.

Malta is one of the densest places in the world in terms of location for i-gaming companies. In what ways is that an advantage for those companies located in Malta?

The size (and the quality) of the local ecosystem is a key factor of success for startups (and even for a more mature company).

What we could call the “Silicon Valley effect’’ is an absolute reality in the Maltese i-gaming sector. We meet, communicate, brainstorm, share, sign deals, so much more easily here than anywhere else. Now that Malta is becoming an important digital hub, we are also seeing this virtuous effect with companies outside of the i-gaming sector.

It’s an amazing plus for all of us.

With so many i-gaming companies being located in close proximity, do you struggle with the competitive job market? Is it difficult to find skilled members for your workforce at a reasonable price?

You are right to point out this challenge.

Despite the fact that we found some local talent and that many skilled people are regularly moving from all over the world to Malta, there is an ever growing need for a skilled workforce,

The Maltese authority are always so proactive with digital start-ups, with the aim to optimise their local ecosystem As usual, Malta was the first country to react positively to our suggestions. This is great news for DFS and for Malta.

Is the plan to apply for a Malta licence when this becomes an option?

As soon as Malta issues its own skill game licence, we will be proud to operate under the said licence.

Are you in regular dialogue with the Maltese regulators and legislators? Does the legal landscape for online gaming appear to be moving in any new direction?

Ever since the beginning of Oulala’s journey, we have been working closely with the Maltese regulator (MGA) to build a tailor-made framework for our activity, with hopes that

especially IT professionals. Experienced web developers are the most sought-after workers in i-gaming here in Malta. This is probably the biggest issue we currently have being based in Malta.

What about the services that a company like Oulala needs to be able to run efficiently? Is the support network of services sufficient for operators?

The technical infrastructure and the services we can find locally definitely meet our needs. This is a serious prerequisites for digital companies, so if it wasn’t the case, Malta would not be such an important iGaming hub.

As a gaming company that is established in Malta, can you envisage

The Oulala platform a circumstance where you would decide to relocate to another country?

We would maybe think to relocate if a huge active volcano suddenly appeared between Malta and Sicily. More seriously, there is absolutely no doubt that Malta is currently the best place in Europe to create and run a digital start up and because the Maltese authority are always so proactive with optimising their local ecosystem, I cannot seriously think that we could find a better place for Oulala.

I would also like to add that Malta believed and supported Oulala when it was just a project. We are thankful to them and it would therefore be very unfair to leave. We were born and raised in Malta and we are proud of it.

How do you think the i-gaming environment in Malta will develop moving forward? Is there anything you would like to see change? Or is there anything that you believe will change that you would rather stay the same?

The i-gaming environment in Malta is still growing at a fast pace because the MGA and the authorities have a very pragmatic vision and are humble. They are sticking to the reality of the market and are doing their best to tailor-make optimised legislations (in the interest of both the customers and the operators).

In the case of DFS, I have absolutely no doubt that the skill-based licensing framework will attract all the main European operators.

If you add the fact that Oulala’s B2B offer is the most innovative on the market (and that it will most probably attract many new DFS operators on the Island), Malta will soon, have all that is needed to become the most important hub for the DFS industry in Europe. What an exciting prospect!  Valéry Bollier has over eleven years of experience in the iGaming industry. He is a regular speaker at industry conferences and seminars, as well as a contributor to various BtoB publications. Equipped with a passion for Daily Fantasy Sports (DFS) and “Big Data”, Bollier is the co-founder and CEO of Oulala, a revolutionary fantasy football game which was launched three years ago GAMBLINGINSIDER.COM 31

FEATURES JESPER KARRBRINK

Jesper Kärrbrink: Why Malta works for me The Mr Green Ltd. CEO talks to David Cook about his decision to move to Malta and what factors make the island a lucrative proposition for operators It has been an exciting year for Jesper Kärrbrink, having moved to Malta to take over as CEO of Mr Green Ltd. in April.

This marks a return to a leading position with a gaming operator, as Kärrbrink previously served as CEO of Svenska Spel between 2004 and 2008. Kärrbrink’s last position in the eight-year interlude was as Active Vice Chairman of Euroflorist, a position he had held since the previous September, having been in the role of CEO for just over four years.

32 GAMBLINGINSIDER.COM

We were intrigued to find out what made Kärrbrink wish to swap flowers for casino and sports. This, combined with the fact that moving to Malta is now being seen as the done thing for many operators and their employees in the current climate, led to Gambling Insider interviewing the new chief, as we also wanted to get a feel for the challenges that are presented from making the transition to the island for an executive, as well as the opportunities this presents. As you will discover, Kärrbrink feels there are

some unfair criticisms about operating in the region which need to be addressed.

Kärrbrink also had time to divulge on plenty of other topics, not least the launch of Mr Green’s sportsbook just before Euro 2016 began in June and how the new vertical, which has taken the operator away from being casino-only, has been performing so far. This is just one of the new developments that have taken up Kärrbrink’s attention in what is now approaching six months in the role.

JESPER KARRBRINK FEATURES

How difficult a decision was it to move to Malta?

Starting a new job is always fun and exciting, but moving to a new country is more complex since the decision includes not only you but your spouse

What are your personal thoughts on what it is like to live in Malta?

It’s is such a different place compared to Stockholm and I like that. Instead of looking for the things we miss we are now embracing all the things we didn’t have in

All it takes is to have a strong employee brand, and then you have more gaming people to choose from than anywhere else in the world and the kids as well. But I was lucky and all these things worked out. The kids are grown up and stayed in Sweden and my wife always thought that Malta sounded like a great challenge.

Stockholm, such as the sun shining almost every day, the Mediterranean being just outside our balcony, the five-minute longboard ride to the office, a new culture, and new people. It’s a long list of positives.

What, if anything, has particularly surprised you about being based in Malta?

How fast you forget that you are 3,500 km from home in a country where the sun shines almost 330 days per year.

As soon as you get into a meeting though everything is the same as in any other job, namely solving problems and spinning ideas with a bunch of great people.

What are the advantagesfor a gambling companybeing based in Malta?

In the beginning, it was basically only for regulatory reasons. Today though, when more and more countries are opening up for online operators, it is more about the ecosystem Malta has created for the gaming industry, with a lot of talent gathered within a limited area.

What challenges are present in Malta?

As far as I can see, there are very few challenges. Malta has an international ▶ GAMBLINGINSIDER.COM 33

FEATURES JESPER KARRBRINK airport, a strong internet connection and a lot of places to spend your free time.

To what extent can there be recruitment issues for a company

e-commerce company at the same time, I realised that the gaming industry had not developed as fast as it could have.

In many aspects, both the free-to-play industry and e-commerce industry have

Gaming is going through an interesting transformation and re-regulation phase. It is stigmatised by some and loved by others. I like the industry’s complexity based in Malta? Are there enough people to fill the jobs?

I have heard this many times since I came here. “It’s a small island, talent is scarce, we can’t find good people etc.” I have a different view. There are at least 150 gaming companies in Malta, all employing 50 people on average. That means there is a talent pool of approximately 7,000 people with backgrounds in gaming. All it takes is to have a strong employee brand and then you have more gaming people to choose from than anywhere else in the world.

After joining Mr Green in April, how would you say you have adapted to the role so far?

It didn’t take long. I adapted easily and there was a great team down here already.

We now have a plan for Mr Green 2.0. The problem is seldom to see what is needed – the challenge lies in implementing the plan, aligning people and keeping the momentum in the change process. At the same time, that is the fun part.

You previously worked as CEO of Svenska Spel. What attracted you to come back to the industry?

Gaming is the largest segment of the entertainment industry and it is going through an interesting transformation and re-regulation phase at the same time.

The industry is stigmatised by some and loved by others. We live to offer entertainment and I like the industry’s complexity. Mr Green has decided to view the industry with a slightly different perspective and this is what we are basing the Mr Green 2.0 idea on.

What has it been like coming back to the industry and how has it developed in the time you have been away?

Well, I never really left it. After Svenska Spel I was on Vera & John’s advisory board until it was sold to Intertain, and could follow the industry this way. Running an 34 GAMBLINGINSIDER.COM

developed faster and are more innovative.

The reason for this is most likely that it has been too easy to make money in our industry. But with regulation, taxes and increased competition, this will change and force us to become sharper. That is another reason why I think this is an interesting time to join the gaming industry and the reason why we are mixing skills from gaming, e-commerce and free-to-play.

What are your thoughts on the performance of Mr Green’s sportsbook brand so far?

I love the fact that we have a sportsbook and that we based this decision on data from our players, and it suits Mr Green well.

We are still in an early phase – a bit like a toddler trying to move our way forward.

We have recruited a good and experienced team, so I think we will grow really nicely in years to come.

Moving forward, how important will the sportsbook be in comparison with your online casino product?

This will most likely change over time, but if you ask me about today and the coming quarters, the sportsbook is a fraction of the casino offering, but an important and growing fraction.

What are your future targets for Mr Green?

The gaming industry is characterised by high churn and extensive customer acquisitions where operators basically swap players with each other and pay higher and higher CPA’s in the process.

Looking at data from gaming suppliers and affiliates, we know that we have high retention and conversion figures in the industry. Our main focus right now is to develop the Mr Green product and brand to reach even higher levels of retention and conversion to increase organic growth and profitability. We will aim to achieve this by being able to deliver healthy margins in an environment where 15-20% gaming taxes are the norm.

INSIDER KNOWLEDGE IOANNIS PAGOUNIS

“It’s the best place in the world to be working in i-gaming” Platin Gaming’s Ioannis Pagounis only has positive things to say about Malta We regularly have roles in our IT, Customer Service and Creative & Design departments, so we are expanding our workforce constantly. In my experience, the process was very positive.

Technology allows for initial interviews to be done over the internet, while the company is very helpful in helping with accommodation and settling down in the country.

Was it a big decision for you to relocate to Malta? What factors did you consider before electing to make the move?

Definitely, I think it’s a massive decision to leave your own country. Luckily, there are lots of other foreign workers in the industry that live and work in Malta, and everybody speaks English, so communication is not a problem where it could be in other countries.

For me personally, I had to consider what it was like to live in a foreign country, leaving family, friends and a completely different way of life. However, when I considered the career opportunities, the only decision was to take the opportunity of a lifetime and move to the island.

Is there anything about living and working in Malta that surprised you when you first moved?

The heat! The weather is constantly boiling, and it never seems to get cool or rain during the summer months. Luckily at Platin we have air-conditioned offices, though it is something that takes getting used to when outside.

Also, the island. I never realised how small and compact Malta is. It is perhaps at its most obvious when you travel near our Gzira headquarters and you see the sheer number of people and cars trying to make their way around. If you are planning on driving, it certainly takes patience.

What opportunities are there to advance your career in gaming once you are in Malta?

36 GAMBLINGINSIDER.COM

The i-gaming and online betting industries are already big in the country and are only growing. This has meant that there are so many roles available, as well as scope for rapid career development.

The fact that there is an annual gaming week on the island is testament to how much of a hotbed it is for the industry. Experts from around the world come together to network and discuss ideas in what is a must-see event for anybody interested in gaming.

As an employer, how competitive is the market? Are you concerned about competitors coveting your staff?

It is an extremely competitive market, and the fact that it’s growing so fast means that skilled workers are in high demand.

There are undoubtedly companies that would like to hire our staff, but we offer an excellent employment package to our employees. We are focussed on their needs and offer a competitive salary as well as other benefits, such as health insurance.

In addition, we try to make office life as fun as possible, and get that work/life balance just right by offering a fresh lunch everyday made by our cooks. Additionally, there are regular company social events.

Professionally, do you feel you made any sacrifices when you moved to Malta?

Or was everything positive?

No, professionally my only experiences have been positive. I think it is great to be in a company with so many different nationalities as it helps you garner information from as many different viewpoints as possible.

I feel it is beneficial to spend time in a different country both personally and professionally.

For the latter, I think it is an important step developmentally – perhaps giving you experiences that you wouldn’t otherwise have.

In your opinion, is Malta the best place in the world to be located as an i-gaming professional?

For sure; the island is at the forefront of the igaming industry. The fact that there is an annual SiGMA event in Malta shows this, and events like it are a marvellous way to grow your knowledge and network with like-minded people. The country is also very good for its ease of travel, so getting around Europe to events in different countries is no problem.

On top of this, the weather is stunning and the cost of living is relatively low, so there can’t be a better place to be situated. ◀

Is Platin actively recruiting staff at the moment? How easy has that process been?

Yes, Platin is always looking for ways to enhance our company. We have a careers site that outlines the recruitment process, and the current vacancies are also listed. Anybody with the requisite skill set is welcome to apply for the roles, as we firmly believe that you should never sit still if you want your company to succeed.

As Product Manager at Tipbet Ltd, Ioannis is responsible for the implementation of marketing campaigns, including digital and affiliate marketing, as well as overseeing product development. With an international background in iGaming, he is leading Tipbet and Platin Gaming to a more diverse and customer-oriented environment within this highly-competitive market

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INSIDER KNOWLEDGE MALCOLM BRIFFA

“Melita Data Centre is pivotal to Malta’s economic growth” Gambling Insider met up with, Melita’s Director of Business Services Malcolm Briffa to take a snapshot of the company’s and the country’s development Upon completing its investment in a new data centre facility in 2014, Melita had increased its data centre capacity tenfold and doubled Malta’s capacity. The massive investment to develop Malta’s largest data centre footprint is paying off; Melita Data Centre has registered 100% growth for the June 2015 - June 2016 period and the same growth trend is expected to continue at least until the end of this year.

Is Malta well-equipped to offer data services to gaming operators?

Most definitely so, and more too. Malta is a reputable gaming jurisdiction, offering a stable regulatory framework under the watchful eyes of a dynamic and very responsive regulator evolving in line with market dynamics.

The combination of a solid tech infrastructure, attractive fiscal incentives, the best lifestyle and climate in the world make Malta the top gaming jurisdiction in the world. No wonder we have had a huge influx of gaming companies over the last few years.

By leveraging Melita’s nationwide fibre network, Melita Data Centre also provides 38 GAMBLINGINSIDER.COM

dedicated and premium symmetric internet over fibre, local point to point circuits as well as MPLS for local and international multisite connectivity.

From a service standpoint, we offer dedicated personnel and team leaders who are specifically trained to manage the tech requirements of gaming operators. We develop solid relationships with our clients to share a collaborative space that yields results for all.

How does Malta offer competitive connectivity which sustains the demands of the gaming industry?

A robust data centre such as the one operated by Melita helps to address the challenges posed by geographical hurdles of a country located at the southern tip of Europe.

First, dedicated fibre – powered infrastructure through direct links with key European hubs.

Second, we offer the best connectivity through partnerships with operators peering directly with Tier 1 providers.

Through our point-of-presence (PoP) in Milan, Melita Data Centre provides connectivity through the world’s largest Tier I internet carriers, Level 3® Communications and Telia Carrier. We are Malta’s leading provider of next generation broadband, fixed and wireless connectivity services, reaching over 99 percent of dwellings in Malta.

Third, we employ multiple connectivity options via separate routes to reduce the potential for carrier failure and to ensure continuity for critical applications. Our service is reliable and with reduced latency.

Finally, we are a carrier-neutral Data Centre, therefore we leave it entirely to our clients to decide whether or not they need additional redundancy from other internet providers.

How is data more secure when hosting within a data centre facility?

Obviously, physical security is one of the highest priorities. Our Data Centre is under 24/7 security, it is a purpose-built, perimeterfenced facility. But there is more to it than just that. Continuity of service and less risks

MALCOLM BRIFFA INSIDER KNOWLEDGE of disruption, such as blackouts, are critical to time-sensitive operations.

Melita Data Centre offers a stable and predictable environment supported by state-of-the-art cooling systems, humidity controls, fire suppression, air flow and power distribution.

Server racks are kept under lock and key, access control and log-ins are installed at every entry point for authorised personnel only.

A reliable data centre can boast of a strong client list. Luckily, Melita Data Centre ticks all these boxes together with the necessary certifications and an exceptional SLA of 99.999% uptime.

How will data centre services be affected by regulation changes in Malta?

Over the past years, Malta has built a good reputation as a principle global gaming jurisdiction. A clear regulatory framework helps make Malta a safer and better jurisdiction.

The Malta Gaming Authority – Malta’s industry regulator – adopts a very effective consultation process with stakeholders to ensure that the country remains ahead of trends, grasping opportunities while allowing suitable time windows for adaptation and change as

required. The expected changes in regulations may be perceived as tougher on data centres but in reality, these will highlight the valueadded that data centre operations bring to the table: quality of service, reputation, reliability and in general ability to be flexible around client requirements.

What are the value-added services to make Malta’s data centre services

In addition, these entities are increasingly choosing to focus on core gaming operations.

They are disengaging from the “hardware” stuff through outsourcing relationships with specialists like Melita. This process, in turn, releases in-house resources to be redeployed or focussed in those areas of core competency for the operation.

Data centres can also provide a more efficient way to manage CAPEX. Companies

A robust data centre helps to address the challenges posed by geographical hurdles presented in Malta an even more attractive proposition for gaming companies?

Online gaming companies host sensitive information, such as user data and payment details meaning that a robust, secure, reliable IT infrastructure that guarantees practically no downtime is an absolute must. We guarantee the highest possible uptime.

do not need large lump sum investments in hardware when they can pay a monthly fee to a data centre operator. In this context, Melita Data Centre also offers value added services such as Infrastructure as a Service (IaaS), from leasing, to hardware management or “cloud” hosting of the client’s property in a virtualised environment. ◀

GAMBLINGINSIDER.COM 39

INSIDER KNOWLEDGE NORBERT VARGA

Leading Affiliate Innovation EnergyAffiliate’s take on innovation in the industry, now and in the future is an exciting one, says Norbert Varga, Head of Affiliate Management at EnergyAffiliates

The i-gaming industry is inherently dynamic and always changing, but how is innovation impacting affiliates and operators? To shed some light on this GI met with Norbert Varga, Head of Affiliate Management at EnergyAffiliates; a leading Malta-based operator.

We begin by discussing the changes in the industry over the last few years.

What do affiliates expect from operators now, and how are operators like EnergyAffiliates responding? “In the past a few nice banners and good toplist rankings was enough, but now our partners want a lot more.” He adds: “Our managers now go the extra mile and offer a great deal of support, plus we provide exclusive, tailormade promotional materials and content.

It’s all about creating long-term strategies structured uniquely around each partner.”

With regards to the driving forces behind the innovations, Norbert points out that much of the momentum has come from the affiliates themselves, with operators responding rather than leading. “Often it is the affiliates who know what they need the best. We have to listen to them and, when we think something is workable, we build something around it.” He adds “a team approach like this benefits all parties, so it 40 GAMBLINGINSIDER.COM

seems natural to us.” The resources and effort that some operators, including Energy, put into building relationships two-way with their affiliates is obvious to anyone who regularly attends the large trade conferences.

A point that Norbert is keen to stress was that any change has to be treated with tact.

“Many affiliates will have invested a lot of effort in achieving a good revenue flow, and they are often, perfectly understandably, reluctant to make changes, or to try something that is unproven.” But he also points out that, increasingly, there are affiliates who expect a constant stream of new things, and who really value being on the cutting edge of developments. “Trying to satisfy all preferences is the trick, and the only way to do that is by building and maintaining good relationships and open communications” he says.

Operators have to forge such relationships increasingly quickly, as intense competition means that affiliates often try out multiple plans at once, and only stick with the very best. As Norbert explains: “It is more and more common for partners to join up and then, after just a few days they vanish.”

Obviously this is going to be more of a problem for new operators who are just trying to break into the market, without an

To really capitalise on the momentum Norbert shed somelight on their plans for the near future. “For Q4 this year we’ll be introducing a ground-breaking new system called Level Up. We’re confident that it will deliver improved results and satisfaction for our partners by giving much more control.

Right from the start affiliates will be able to customise their systems, and then change them as they grow.” The new offering from EnergyAffiliates was hinted at during the Amsterdam conference, and it is scheduled to be fully unveiled during the Berlin Affiliate conference.

The challenge for Norbert and the EnergyAffiliate team, as well as for other operators, will be to keep the momentum going into the future. Whilst the Level Up system is clearly innovative right now, he is aware that other operators will catch up soon, saying: “Within a few short years I predict that most companies will phase out their existing standard offers and commission rates, and will follow a similar path to Energy’s. In order to stay cost-effective and competitive operators will be trying to give affiliates the tools to customise their own systems.” Whilst it may not be obvious to everyone, it does

Most companies will phase out their existing offers and commission rates, and will follow a similar path to Energy’s existing reputation to back them up. According to Norbert, this was a big problem for Energy during their early days, and it is only through building a reputation for excellence that it has been mitigated.

EnergyAffiliates has been building its core affiliate business around EnergyCasino for several years, and recently launched a brand new sports betting service, EnergyBet, enabling them to offer their partners even more.

seem that we may be witnessing the start of a revolution, of sorts, in the industry.

Looking at how other sectors have adopted similar strategies, it appears only natural that the de-centralising of power – away from the operators and towards the individual affiliates – will gather pace. EnergyAffiliates looks well placed to capitalise on this trend, so it will be interesting to see which other operators join them.

INSIDER KNOWLEDGE JIMMY BONE

Don´t forget the bread and butter Bringing existing players into the future is as important as attracting younger players, says Jimmy Bone, Marketing & Client Support Executive, Golden Race There is a lot of talk in the industry about reaching Millennials and what is required for younger customers who are used to instant gratification, for whom interacting with a mixture of online, social, and virtual platforms is completely normal and necessary, and who already expect extremely polished and realistic graphical products. We should not ignore gambling on eSports, skin betting, their popularity, and how we can best adapt to meets the demands of these growing and profitable trends and demographics.

However, we must also recognise that

Our extremely popular 3D virtual football series is entirely computer generated – the kind of thing that initially traditional players would baulk at. However, by utilising real commentators for voiceovers, painstakingly captured and detailed movement patterns translated into lifelike player animations, a highly advanced AI creating believable and realistic plays, localised teams and leagues for all the popular countries and competitions from the real world, all the popular markets, all with an interface which is intuitive and familiar –we have created a product that is so similar to the beautiful game that those that love it in the real world can easily transition and end up loving the virtual version, often even more due to availability, variety, and frequency.

Finally, the award-nominated Real Fighting is unlike anything else on the market. HD video of real champion MMA fighters in real combat, fused with 3D virtual arenas and worlds, this product is a far cry from the traditional way to bet on fights.

However, because it is so high-tech and players become more comfortable with virtual cutting edge, it is incredibly realistic, and this approach has proven to be a knockout gaming, digital versions of classics, and new twists and opportunities as part of events they for traditional players and newer players.

Continue to innovate, continue to move know and love, they too can be brought to the industry forward, meet demands and new products so that we all win. create value for customers and enjoyment Golden Race always strives to innovate and lead the industry, as do other companies. for players… just don´t forget the bread and butter of our business.  We started with the quintessential players love: Greyhound racing. Creating a virtual product based on real videos of real races, we captured the essence of this old pastime – wagering on which dog is the fastest – and packaged it in a way that can be managed, scheduled every few minutes, 24/7, without the need for any animals, a track, trainers, breeders, managers, event organisers, and no huge investment to get started.

Next we captured the classic numbers and casino games: poker, mini-roulette, keno, lotto, with both virtual versions with updated ways to play, and live-streaming of real keno and lotto events. The familiarity of a beautiful hostess welcoming players, running the draw, presenting the results every five minutes is the perfect transition from traditional, real world games, to the virtual world. of bets which are long-time winners for both providers and players. As well as developing something cutting edge, we should consider the classics, why they are popular, why they withstand the test of time (in some cases centuries or even millennia!) and how we can introduce new technologies in line with them so that traditional players keep playing them, transition to newer methods and platforms, and are satisfied and happy to be brought into the future.

We must be careful with new tech to avoid losing current players. Once traditional

Once traditional players are comfortable with virtual versions of the classics they know and love, they too can be brought to new products older players can also benefit from online and virtual gaming, and those players still comprise a large majority of the industry.

While we of course must always look to the future, we must also ensure that we continue to cater to the customers that have brought many of us success – our bread and butter.

We all strive to use the newest tech, platforms, hardware, follow the latest trends, and of course innovate to lead the way with new ideas and concepts. This is vital – engaging the younger players is key to our continued successes and industry growth. The desire to make wagers and play games of chance and skill for some tangible return is fairly universal. However, if you consider that a reasonable estimate of the entire global betting industry is that it comprises 80% traditional players and 20% newer players, then it becomes obvious that we must also meet the demands of that larger section of the overall market.

Companies must invest time and manpower into products which are interesting for that larger segment. We must look to what traditional players enjoy, where they put their money, the games, events, and types 42 GAMBLINGINSIDER.COM