THE FIRST INNINGS

Stephen Crystal, Founder of SCCG Management, was the first guest to join the Huddle at ICE London – talking through all of US gaming’s hot topics, from sports media convergence to microbetting.

Stephen, how are you on this fine morning?

I’m amazing. It’s great to be here – ICE is back bigger and better than ever.

I wanted to ask you a few questions about the US market but, first of all, SCCG management. You’ve had a few developments lately... Can you talk us through the biggest deals and partnerships you’ve signed in recent weeks and months?

Well, over the last five years, we’ve been steadily growing our ecosystem around iGaming, esports and sports betting. Now we’re up to over 100 B2B and B2C brands, and, most recently, we’ve focused on microbetting. We think that’s the next evolution for sports betting, which is in-play proposition betting. So we’re picking some of the best and brightest emerging companies in that space; Grin Gaming was the most recent, before we announced a partnership with Odditt, which is based around in-play NBA betting.

We’re focusing on features that make it easier for customers to sign up and participate in online gaming. I think you’re going to see some consolidation in the US – this market is very competitive. The market will focus on giving better features and a better experience for the customer. And that’s where we’re going to be focusing, as well – absolutely on in-play.

We’ll definitely get into microbetting later... I think we’ll have a lively discussion on that. In terms of your recent partnerships and developments, one thing you didn’t mention there, which is perfect for me to introduce, is the appointment of Scott Butera among your ranks. He’s very experienced with MGM Resorts and, most recently, Fubo TV. What does he bring to your team?

Look, Scott is one of the most recognized individuals in US gaming, both brick and mortar and iGaming. Scott brings a rich background in sports marketing, sports, entertainment, casino, entertainment and iGaming, most recently as President of Fubo. He’s overseen some huge successes like BetMGM and the launch of it, and he’s overseen some situations that didn’t work out – like Fubo. I think you learn as much from the things that don’t work out as the things that do, and what I want on our team is a steady hand who knows the breadth of our industry. He’s that person.

Absolutely, it’s about learning from both the victories and the defeats. To that end, you mentioned Fubo and there are other examples. Fubo ceased its sports betting activity and we had MaximBet, which didn’t quite work out either. You’ve then got other media sports partnerships like 888 and Sports Illustrated, but what’s your take on sports betting and media convergence in general? There was a lot of hype... but it hasn’t necessarily taken the industry by storm yet?

My view, overall, is we’re still in the first innings of a nine-innings baseball game, to use a US sports analogy. We are seeing some consolidation and we’re not seeing some of the big media brands enter in full force. We’re seeing some of the media brands, like Fubo that jumped in, not succeed; even 888 and Sports Illustrated hasn’t reached its full potential. So I just think we have to realize there’s going to be an ebb and flow.

It’s a massive industry. Every day, every week when a report comes out on New Jersey or Ohio, we’re amazed at the strength and size of the US industry. We still have iGaming to go; we still have mobile sports betting to go in many markets; we still have the development of tribal gaming versus corporate gaming, which hasn’t even shown its hand yet. So I just think we have to be patient. We have to see how this evolves and I realize there will be players that come and go.

You mentioned microbetting earlier. I want to get into that. I know you’re a big proponent... you bet faster; you bet quicker; you bet more. Yet something that was put to me a few months ago by someone who works in the affiliate sector was that there might be a bit of bettor fatigue. Are you getting more out of a player, or are they just spending the same budget but quicker? What I like about microbetting is that, with the companies we’re working with, not everything is about real money betting to begin with. A lot of it is about engagement. A lot of it is about social layers; appealing to less hardcore betters and more casual bettors. So, to me, the issue is not what percentage of the wallet it takes. Because I think microbetting has the ability to appeal to a broader audience and expand the overall interest in sports betting. That’s how I’m viewing it.

Does that reflect the rest of the industry at the moment – a huge focus on engagement and acquisition? Maybe here we can touch on something you spoke about recently in our Gaming America magazine: tech firms that are making huge revenues, but not reeling in those profits yet. So is the first innings out of nine the best way to describe the US gaming industry at the moment?

I think it was that way up until recently; I think with some of the companies leaving and the landscape narrowing a bit, the focus now is on corporate profits. So I think you’re going to see people focus much more on how they can deliver a frictionless product and a better product to the customer. They want to create a better customer experience and see how they can spend an appropriate amount of money to acquire and retain customers, and how they can bring profits to the bottom line.

This is the phase we’re in right now for those that are still in the marketplace. And then I think you’ll see new companies come in that will look for niche opportunities to bring something that did not exist before. I think they can succeed, as well.

One final question for you: given all the recent partnerships you’ve taken on, what can we expect from you for the rest of 2023? Because we’re only just getting started, aren’t we?

Well, we announced recently that we’ve opened an office in Bangkok, Thailand, to take advantage of Asia expansion. We’re going to be announcing additional movements in Latin America and Brazil.

I’m going to be making a personal trip down to Africa to see the breadth of the opportunities there.

Gaming is global: we know this. Emerging markets are popping up on a regular basis and, really, what we want to do is do a few things. We want to stay on top of global expansion; we want to be experts in our home market in the US; we want to focus on emerging technology and we want to back the next generation. That’s what we stand for at SCCG Management. Fantastic, Stephen. Thanks very much for your time and enjoy the rest of the ICE London show.