Jan/Feb 2024
THE CEO SPECIAL Featuring: Tom Waterhouse, Michael Silberling, Hubert Wang, Cathy Judd-Stein, Joe Pisano and Joanne Whittaker
EDITOR’S LETTER
COO, EDITOR IN CHIEF Julian Perry EDITOR Tim Poole Tim.Poole@gamblinginsider.com STAFF WRITERS Beth Turner Bethany.Turner@gamblinginsider.com Jessica Lynn Jessica.Lynn@gamblinginsider.com JUNIOR STAFF WRITER Ciaran McLoughlin Ciaran.Mcloughlin@gamblinginsider.com CONTENT WRITER Megan Elswyth Megan.Elswyth@gamblinginsider.com LEAD DESIGNER Olesya Adamska
Julian Perry, COO, Editor-in-Chief
A
Tim Poole, Editor
happy – and productive – New Year to all our readers! Working in the gambling industry, we can all safely say 2024 will bring more change, more challenges, but also more growth, more technological evolution and, ultimately, greater revenue generation. As is tradition, Gambling Insider is kicking the year off with our famous CEO Special, the most prestigious issue of the year. And, this edition, we are delighted to bring you a particularly operator-heavy focus. That’s a common theme across our platforms at the moment, with BetMGM CEO Adam Greenblatt being this year’s first guest on our Huddle video series, and this magazine as a whole also featuring articles from Sky Bet, William Hill and more. Within our CEO Special specifically, we present you some of the sector’s biggest operators in the form of Betfred, MGM China, Metropolitan Gaming, Jade Entertainment and Gaming, and also Tom Waterhouse – who used to run William Hill Australia. Each has their own unique story to tell, and that’s not forgetting Cathy Judd-Stein – who completes our list by adding a different perspective: that of the regulator, as Chair of the Massachusetts Gaming Commission. Judd-Stein, it has to be said, might just be the nicest person I have ever interviewed, with all due respect to everyone else I’ve spoken to in my career. But do not mistake her humility and kindness for weakness; each of our CEO Special interviewees is tough, has faced numerous obstacles in their career and is performing at the very highest level of their respective field. We are honoured to include Hubert Wang, MGM China President & COO, as well as Joanne Whittaker, the leader of a tier-one UK operator (with designs on the US and South Africa, too). I was fascinated by Wang’s emphasis on the importance of listening to his staff – and equally so with Whittaker’s stance that heated debates and disagreements are a real positive for a business trying to find the right solution moving forward. Waterhouse’s intimate knowledge of Australian gaming made picking his brain a very rewarding process indeed – and that’s an interview you can also watch in Huddle form. As for Jade Gaming’s Joe Pisano, he ran Judd-Stein close for nicest interviewee ever! Speaking to him – and on this occasion, his dog Duke too – is always a pleasure. Finally, Michael Silberling was a gracious host as we sat down together at the Metropolitan Casino Mayfair. He surprised me with his revelation that he is a Dungeons and Dragons fan, along with a funny story about meeting the Late Queen Elizabeth II. So now that you’ve found our January/February edition, either online or at the last ever ICE show in London, I promise you’ll learn something from each and every CEO interview. And I can also promise there is no better way to prepare for what 2024 has in store for the industry! TP, Editor
DESIGNER Christian Quiling DESIGN ASSISTANTS Gabriela Baleva, Abbie Monk, Nia Marinova ILLUSTRATOR Maria Yanchovichina MARKETING & EVENTS MANAGER Mariya Savova PRODUCTION CONTROLLER Phoebe Petford FINANCE AND ADMINISTRATION ASSISTANT Dhruvika Patel IT MANAGER Tom Powling COMMERCIAL DIRECTOR Deepak Malkani Deepak.Malkani@gamblinginsider.com Tel: +44 (0)20 7729 6279 SENIOR ACCOUNT MANAGER Michael Juqula Michael.Juqula@gamblinginsider.com Tel: +44 (0)20 3487 0498 SENIOR BUSINESS DEVELOPMENT MANAGER - U.S. Aaron Harvey Aaron.Harvey@playerspublishing.com Tel: +1 702 425 7818 ADVERTISING SALES EXECUTIVE - U.S. Ariel Greenberg Ariel.Greenberg@playerspublishing.com Tel: +1.702 833 9581 ACCOUNT MANAGERS William Aderele William.Aderele@gamblinginsider.com Tel: +44 (0)20 7739 2062 Irina Litvinova Irina.Litvinova@gamblinginsider.com Tel: +44 207 613 5863 Serena Kwong Serena.Kwong@gamblinginsider.com Tel: +44 (0)20 3435 5628 BUSINESS DEVELOPMENT MANAGER Michele Brooks Michele.Brooks@globalgamingawards.com Tel: +44 (0) 207 739 5768 CREDIT MANAGER Rachel Voit WITH THANKS TO: Joe Pisano, Joanne Whittaker, Michael Silberling, Tom Waterhouse, Cathy Judd-Stein, Hubert Wang, Ronnie d'Arienzo, Araksi Sargsyan, Tim Scoffham, Chris Nikolopoulos, Gil Soffer, Ed De Hass, Edson Lenzi, Kirsty Caldwell, Paul Sculpher, Dr. Joerg Hofmann, Michael Shinners, Sennette Lam, Mick Confrey, Ranjana Adhikari, Shashi Shekhar Misra, Ruhi Kanakia, Matthew Calascione, Evgen Belousov, Yoel Zuckerberg, Thomas Schmalzer, Alexander Berrai and Simon Hammon. 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.
CONT E 94
96
100
PAUL SCULPHER
JOERG HOFMANN
SENNETTE LAM
ISSUES
CEO SPECIAL
FEATURES
22 Facing facts
38 Down to Earth
86 Simplifying payments
30 Taking stock
46 Saying it as it is
88 Roundtable
Gambling Insider takes a look at various facts and figures from the third quarter of 2023 We track operator and supplier stock prices across a six-month period
Jade Entertainment and Gaming CEO Joe Pisano reflects on a gaming career spanning multiple continents Joanne Whittaker tells us all about life as the CEO of tier-one operator Betfred
54 Rising to the challenge
GLOBAL GAMING AWARDS 62 What is in a name?
34 London
We preview our debut Breakthrough of the Year category
CCO of Freemarket, Ronnie d’Arienzo, speaks to Gambling Insider about cross-border payments solutions We speak to suppliers from the sports betting, casino and payments sectors about the promise of Latin America
Sitting down at the Metropolitan Casino Mayfair, Michael Silberling discusses meeting the Queen and much more
94 Compliance focus
He's danced with the stars and led William Hill Australia. Now, Tom Waterhouse is a chief investor
96 Germany focus
70 Serving the public
Cathy Judd-Stein, Chair of the Massachusetts Gaming Commission, gives us the POV of the regulator
78 The perfect storm
MGM China's Hubert Wang discusses his experience in the US and Macau
Gambling Insider regular contributor Paul Sculpher has some questions for Kirsty Caldwell over at Betsmart
Something's not quite adding up in the German market – and another Gambling Insider regular, Dr Joerg Hofmann, tells us exactly what
98 Operator focus
We speak to Sky Bet about its new product, AccaFreeze. Does it give too much power to the player, or just the right amount?
ENTS 108
114
130
RANJANA ADHIKARI
ARAKSI SARGSYAN
SIMON HAMMON
100 The rat race
Sennette Lam, leading an all-female recruitment team at TalentBet, discusses the latest recruitment trends in Malta
104 Finding the facts
In an interview that is a little different, Gambling Insider speaks with a former murder detective. How can his interview experience be applied within our industry?
108 India focus
Gambling Insider's regular contributors from IndusLaw are back, discussing 'dark patterns'
110 Sports book, not sportsbook
We attend the William Hill Sports Book of the Year Awards, assessing what the operator gains – and gives back – from the sponsorship
INSIDERS 114 Araksi Sargsyan DS Virtual Gaming
115 Matthew Calascione iGP
116 Evgen Belousov GR8 Tech
117 Yoel Zuckerberg Soft2Bet
118 Thomas Schmalzer Novomatic
119 Alexander Berrai Emerchantpay
PRODUCT REVIEWS 120 The latest in the biz
Gambling Insider reviews gaming's latest omnichannel offerings
FINAL WORD 130 Simon Hammon Relax Gaming
3 2.5 2
FEATURES
NUMBER CRUNCHING
1.5 1
FACING FACTS 0.5
0
MGM Resorts
Wynn Resorts
Las Vegas Sands
Caesars Enteratinment
Boyd Gaming
Melco Resorts
Gambling Insider compares Q3 2023 results from major gambling operators across the global industry, looking into the changes of various national sectors have impacted overall company growth Year-on-year change, Q3 2022 vs Q3 2023 2and how these changes Year-on-year change (%) Q3 2022 vs Q3 2023 Melco Resorts Boyd Gaming Caesars Entertainment Las Vegas Sands
Source: Company reports • US-majority operators (Boyd Gaming, Caesars Entertainment) have shown the least growth in Q3 2023 in the sample, while operators working mostly in Asia (Las Vegas Sands, Melco) have seen the most significant growth. • Operators functioning in both territories (MGM Resorts, Wynn Resorts) have taken a middle ground in terms of growth.
Wynn Resorts MGM Resorts
0%
50%
1
100%
150%
200%
250%
300%
350%
Comparison: Operator Q3 net revenues
Comparison: Operator Q3 net revenues ($bn)
3
Vegas operations adjusted property EBITDAR by operator
4.5
Net Revenue USA Net Revenue Asia
4 Boyd 3.5 Gaming
15.6%
3 Wynn Resorts
18.7%
Net Revenue (Other)
2.5 MGM Resorts 2
5.9%
0
1.5
400
200
600
800
1
4 0.5
Macau operations adjusted property EBITDAR by operator, Q3 2022 vs Q3 2023
0 250
MGM Resorts
Wynn Resorts
Las Vegas Sands
Caesars Enteratinment
200
22
GAMBLINGINSIDER.COM
2
150
100
Year-on-year change, Q3 2022 vs Q3 2023
Boyd Gaming
Melco Resorts
Source: Company reports • As the two major operators in Las Vegas, MGM Resorts and Caesars Entertainment have been able to pull in the highest net revenues of Q3 2023 compared to the six in this sample. MGM Resorts also has a notable presence in Asia, through its subsidiary MGM China. • Las Vegas Sands, which operates exclusively in Asia, is less than $20m behind Caesars Entertainment. Such a high net revenue shows a flourishing market in Asia, beginning to overcome the challenges presented to it in previous years. • The other net revenue at Melco Resorts accounts for the operators ventures in Europe, specifically Cyprus Casinos.
Wynn Resorts MGM Resorts MGM Resorts
0%
50%
100%
150%
FEATURES0% NUMBER 50% CRUNCHING 100% 150%
200%
250%
200%
250%
3
Vegas operations adjusted property EBITDAR by operator
3
Vegas operations adjusted property EBITDAR by operator
350%
300%
350%
Vegas operations Q3 2023 adjusted property EBITDAR by operator ($m)
Boyd Gaming
15.6%
Boyd Gaming Wynn Resorts
15.6% 18.7%
Wynn Resorts MGM Resorts
18.7%
MGM Resorts 0
200
400
0
200
400
4
4
300%
5.9%
5.9% 800
600
600
Source: Company reports • Adjusted property EBITDAR by operator for Vegas operations has shown growth overall, with Wynn Resorts making the most notable growth. • Compared to this time last year, only Wynn Resorts saw an increase in adjusted property EBITDA. Both MGM Resorts and Boyd Gaming saw decreases in this metric, down 5.9% and 15.6% year-on-year respectively.
800
Macau operations adjusted property EBITDAR by operator, Q3 2022 vs Q3 2023
MGM vs Wynn adjusted property EBITDAR ($m) Q3 2022 vs Q3 2023
250
Macau operations adjusted property EBITDAR by2022 operator, Q3 2022 vs Q3 2023 Q3 Q3 2023
200 250 150 200 100 150 50 100 0 50 -50
0
-100
-50 -150
-100 -200
-150
MGM Resorts
Wynn Resorts
-200
5 24
MGM Resorts
Wynn Resorts
MGM Resorts net revenue by sector Q3 2022 vs Q3 2023
GAMBLINGINSIDER.COM
2,500
5
MGM Resorts net revenue by sector Q3 2022 vs Q3 2023
Source: Company reports • With Covid-19 restrictions mostly lifted in China, Macau has been able to re-establish its financial earnings and return to revenue levels similar to those pre-Covid. • While MGM Resorts was able to report earnings in Q3 2023 higher than those reported in Q3 2019, this is not reflective of the industry as a whole post-Covid. It is instead a reflection of the growth specific to the company and its unique circumstances.
-100 -150 -150 -200
FEATURES
NUMBER CRUNCHING MGM Resorts
-200
Wynn Resorts
MGM Resorts Wynn Resorts MGM Resorts net revenue by sector Q3 2019 (pre-Covid-19 pandemic) vs Q3 2022 vs Q3 2023
5
Q319 by sector Q3 2022 Q322vs Q3 2023 Q323 MGM Resorts net revenue
5
MGM Resorts net revenue by sector Q3 2022 vs Q3 2023
2,500
Source: Company reports • It is no surprise that MGM Resorts’ Las Vegas resorts have pulled in the majority of its income. Properties include the Bellagio and Mandalay Bay, some of the most notable properties on the Las Vegas Strip. • When it comes to percentage growth, however, MGM China has been the most successful. The sector's year-on-year net revenue was up 829%, compared to Las Vegas, which had a net revenue decrease of 8.5%. • MGM China reported a 10.2% increase in net revenue from Q3 2019 to Q3 2023, reflecting both recovery and growth following the sharp decline in revenue generated by the sector due to the impact of Covid-19. Comparatively, while Las Vegas Strip resorts have also generated more revenue post-Covid, regional operations numbers have remained mostly stagnant.
2,500 2,000 2,000 1,500 1,500 1,000 1,000 500 500
0 Q319
0
Q322
Q323
Q319
Las Vegas Strip resorts Q319
Q322
Q323
Las Vegas Strip resorts
6
Q322
Q323
Q319
Regional Operators Q319
Q322
Q323
Q322
Q323
MGM China Q319
Regional Operators
Q322
Q323
MGM China
Operators in Asia: Adjusted EBITDA of highest-income properties
in Asia: Adjusted EBITDA of highest-income properties ($m) OperatorsOperators in Asia: Adjusted EBITDA of highest-income properties
6 600 600
500
500 400 400
300
300 200 200 100 100 0
0 MGM Cotai, Macau MGM China MGM Cotai, Macau MGM China
6
6 26
Marina Bay Sands, Singapore Las Vegas Sands Marina Bay Sands, Singapore Las Vegas Sands
City of Dreams, Macau Melco Resorts
Year-on-year changes in Q3 Metrics
GAMBLINGINSIDER.COM
Entain Active Monthly User Growth
Year-on-year changes in Q3 Metrics
Source: Company reports • Despite all the successes seen in Macau, it is Marina Bay Sands in Singapore that has the most notable adjusted EBITDA of a single property in Asia of the six operators under analysis. • Even if the adjusted EBITDA of MGM Cotai and City of Dreams, Macau City of Dreams were combined, they would not equal that of Marina Bay Sands. Melco Resorts
500
100
400
0
300
FEATURES
MGM Cotai, Macau MGM China
NUMBER CRUNCHING
Marina Bay Sands, Singapore Las Vegas Sands
City of Dreams, Macau Melco Resorts
200
6
changes in Q3 changes Metrics in Q3 Metrics Flutter Year-on-year vs Entain: Year-on-year
100
Entain
0 MGM Cotai, Macau MGM China
Entain Active Monthly User Growth
Flutter Entertainment
Marina Bay Sands, Singapore Las Vegas Sands
Flutter Active Monthly User 6 Graowth
City of Dreams, Macau Melco Resorts
Year-on-year changes in Q3 Metrics
Entain Adjusted EBITDA (ex-US) Entain Active Monthly Growth FlutterUser Adjusted
Source: Company reports • Flutter Entertainment’s primary non-US territories include the UK, Ireland and Australia, whereas for Entain, territories include Brazil, Central and Eastern Europe and New Zealand. • The year-on-year change at Flutter and Entain shows that regulated markets around the globe outside of the US are growing, particularly Europe and LatAm.
EBITDA (ex-US)
Flutter Active Monthly User Graowth
Entain Total Revenue
Entain Adjusted EBITDA (ex-US)
Flutter Total Revenue Flutter Adjusted
EBITDA (ex-US) Entain Total0% Revenue
5%
Flutter Total Revenue
7
20%
15%
10%
25%
30%
Adjusted Non-US EBITDA by operator
0%
Flutter vs Entain: Adjusted non-US EBITDA by operator (£bn)
5%
20%
15%
10%
Entain
Adjusted Non-US EBITDA by operator
Q3 2023 7
25%
30%
Flutter Entertainment
Q3 2023
Q3 2022
Q3 2022
Source: Company reports • Adjusted EBITDA for Entain has been particularly stagnant over the past three years. Meanwhile, Flutter Entertainment has seen slow but steady increases year-on-year. • Flutter Entertainment put its growth in Adjusted non-US EBITDA down to 1.6 the strong UK & Ireland market. This is despite revenue from Australia being down in Q3 2023.
Q3 2021
Q3 2021
0
0
28
0.2
0.4
0.6
0.2
0.4
0.6
GAMBLINGINSIDER.COM
0.8
0.8
1
1
1.2
1.2
1.4
1.4
1.6
1,000
40
800 20
600
FEATURES
0
July
August
NUMBER CRUNCHING
September
October
November
400
December
200
TAKING STOCK 0
August
July
September
October
November
December
OPERATORS Sticking with our theme of gambling across the globe, Gambling Insider has tracked the stock prices of operators and suppliers from various markets. These stock prices Las Vegas Sands Entain month’s first have been taken from across a six-month period, from the close of each US$ day of trade. Market capitalisation based on data collected GBp 4 December 2023 80
OPERATORS 60
SJM Holdings
Las Vegas Sands
40
7
170
80 20
5
July
August
September
October
November
1,400
400
1,200
December
4
40
3
GBp
600
125
0
Entain
800
150
60
BETSSON
1,000
SEK
US$
6
Betsson
1,200
LAS VEGAS SANDS
HK$
1,400
OPERATORS
100
200
75
0
1,000 July
50
2
20
0
0 July
July September August October September October November November December
August
Las Vegas Sands
60
40
20
0 August
170
6
1,200
150
5
1,000
125
4
800
100
600
75
400
50
SJM Holdings
October
November
December
5 4
July
August
September
October
November
December
• Six-month high - August (HK$3.62) • Six-month low - December (HK$2.29) • Market capitalisation - US$2.08bn
3
30
25
200
0
6
GAMBLINGINSIDER.COM
November
December
October
November
SEK
7
September 17
September
• Six-month high - August (SEK 125.92) • Six-month low0- December (SEK 108.7) • Market capitalisation US$1.43bn September July -August
1,400
2 HK$
October
December
200
GBp
3
November
Entain ENTAINBetsson
HK$
80
August
SJMSJMHOLDINGS Holdings
US$
July
July
• Six-month high - August ($59.23) • Six-month low - October ($45.70) • Market capitalisation - US$35.53bn
OPERATORS
October
400
0
December
September
600
25
1
August
800
Betsson
SEK 170
0
0 July
August September October November December July 150 August September October November December
125
• Six-month high - August (£13.81) • Six-month low - December (£8.08) 100 • Market capitalisation - US$6.55bn 75
2
50
1
25
December
FEATURES
SUPPLIERS
SUPPLIERS Aristocrat
ARISTOCRAT
Aristocrat
IGT
IGT
IGT
AU$ Aristocrat
20 October
October
0
August September July November December
October
November
December
• Six-month high - September (AU$41.09) • Six-month low - November (AU$39.04) Light & Wonder • Market capitalisation - US$17.19bn
November December July August September
October
November
July August September October 20 November December
July
• Six-month high - August ($33.09) • Six-month low - November ($25.73) 0 • MarketSeptember capitalisation - US$5.53bn August November PlaytechOctober
July
October
November
December
GAMBLINGINSIDER.COM
Playtech
December August September
December
N
GBp
800 400
400
600 200
200
400 0
0
August
September
800
600
400 July August September October November December
October
Novemb
200
0 November
October
Playtech
PLAYTECH 600
July
October
Novemb
800
200
November December July August September
October
GBp
600 GBp
July August September November December
30
Playtech
• Six-month high - December ($88.39) • Six-month low - July ($68.99) • Market capitalisation - US$7.96bn
32
September
40
10
Light & Wonder
20 0
August
LIGHT & WONDER
60 0
October
July
800
80 20
September
0
GBp
100 40
October 40
0 20
December
US$ 60
September
10
0
100 80
50 20
10
US$
Light & Wonder
60
10 30
30 0
US$
30
20 40
40 10
IGT
40
30 50
50 20
Light & Wonder
50
40 60
60 30
September
IGT
50 US$
AU$ 40
10
60
60
50
September
US$
US$
SUPPLIERS
60
Aristocrat
ust
st
NUMBER CRUNCHING
July
August
September
October
0
November December July August September
• Six-month high - July (£5.89) • Six-month low - November (£4.01) • Market capitalisation - US$1.63bn
October
N
FEATURES
GLOBAL GAMING AWARDS
Lead partner
34
GAMBLINGINSIDER.COM
GLOBAL GAMING AWARDS
FEATURES
BREAKTHROUGH COMPANY OF THE YEAR Making its very own 'breakthrough' at the Global Gaming Awards EMEA 2024 in London, we preview our first-ever Breakthrough Company of the Year category, featuring 10 gaming brands that particularly shone across EMEA regions over the past 12 months GALAXSYS In a short time Galaxsys has gained 150+ partners, including regulated operators, platform providers, and tier 1 aggregators, in the fast, crash and skill games category. It has introduced unique functionalities like Half-Cashout and promotional tools like Lightning Bonus and Leaderboard into the market. Game launches have seen more than 2K daily players and more than 500K bets per day. Galaxsys currently adds four games every two months to its growing portfolio. CREEDROOMZ CreedRoomz was founded with a vision to offer a unique and immersive gaming experience that stands out from other live dealers. The company has grown steadily, and expanded globally. It broadened its scope of offerings from ultramodern technologies to a wholly personalised experience for operators. Most recently, it also introduced an Indian Gaming Hall and a Brazilian Live Casino Suite, enhancing cultural integration. A major milestone was acquiring Danish licence for live casino operation, solidifying CreedRoomz’s European presence. GAMES GLOBAL In May 2022, Games Global launched with the vision of becoming ‘the one you think of’ when you think about the iGaming industry, whether that’s as a supplier, employer, or partner. With an impressive global presence and world-class distribution channel, the company already services 900+ brands, providing casino content from 36 innovative exclusive studios and 35 third-party providers. Over the last year, Games Global has been on an upward trajectory, releasing 200+ new exclusive games and 1,000+ diverse partner games via its platform. SPRIBE SPRIBE has taken the crash game market by storm. 2023 has been a breakthrough year for the company and its flagship Aviator title. Aviator has quickly become the number one crash game, with more than 10 million monthly active players across the 2000 online
casinos it is live on. The success of Aviator has led to phenomenal growth for SPRIBE, with the company now signing major marketing deals with the likes of the UFC as Aviator becomes a true, global phenomenon. GLITNOR GROUP Founded in 2018 by industry veterans who have founded and managed several successful businesses over the last decade. The company operates B2C brands including HappyCasino and LuckyCasino, as well as owning B2B supplier Swintt. Glitnor Group has seen phenomenal growth over the past few years. The team continues to grow, and the company’s brands continue to launch in new markets and are showing 110% annual top line growth rate since 2018. In late 2022, Glitnor Group established a new venture capital arm with the aim to provide early-stage funding to innovative projects from the iGaming world. GR8 TECH Launching in January 2023, GR8 Tech evolved from a B2B newcomer into a notable sportsbook and casino platform provider in less than a year. Driven by a deep understanding of operators' challenges from decades of B2C experience, GR8 Tech stands out for its customer-centricity and rejection of the "one size fits all" approach. GR8 Tech launched with two major solutions: one tailored to new market entries, and the other - towards mature companies that need a fully customisable solution to integrate into their existing ecosystems. REEVO Founded in 2021, B2B games provider and aggregator REEVO aspires to make an unparalleled difference among the iGaming industry. The company now offers a diverse collection of 8000+ games, ranging from slots and table games to crash games and live gaming experiences. With an impressive portfolio that draws from esteemed third-party suppliers, REEVO quickly expanded to various European markets. The company said that in 2024 it plans to onboard over 60 new game providers.
BEYONDPLAY Founded in 2020, BeyondPlay is on a mission to transform solo game sessions into engaging multiplayer entertainment experiences with the community. To date, the company has raised €7m in funding. 2023 saw BeyondPlay’s product certified and licensed by MGA, UK, SGE and AGCO. The company also launched its Jackpot product on over 15 leading brands since the summer. It powered the largest exclusive Jackpot in the industry for LeoVegas Group, currently standing at over €16m. It also launched Jackpots on BetMGM UK from day one. BGAMING BGaming is a rapidly expanding iGaming content provider and game publisher, which has now established itself as one of the most social and player-driven companies within the iGaming industry. BGaming has developed a reputation for creative games, including modern classics like Elvis Frog in Vegas and Fruit Million. The company is known for innovating through striking promos and exciting tournaments. It was also one of the first to support cryptocurrencies and offer the Provably Fair feature. WA.TECHNOLOGY WA.Technology has significantly grown its presence in the EMEA iGaming scene and formed strong alliances with multiple key players in several emerging markets. The company has garnered widespread praise and acknowledgement for facilitating several successful entries for operators into emerging markets, notably playing a pivotal role in driving PixBet's entry and subsequent triumphs as a leading brand.WA.Technology's expanding portfolio includes collaborations with prominent clients and products such as F12, Headsbet, Toisbet, FazOBetAí, PixBet.tv, PixJogos, PixBet Fantasy 5, PixFantasy, and more, and are clear indicators of its accelerated growth trajectory into EMEA, with several exciting ventures also on the horizon.
GAMBLINGINSIDER.COM
35
CEO SPECIAL
THE CEO SPECIAL Featuring (from left to right): Michael Silberling, Tom Waterhouse, Hubert Wang, Cathy Judd-Stein, Joe Pisano & Joanne Whittaker 36
GAMBLINGINSIDER.COM
CEO SPECIAL
GAMBLINGINSIDER.COM
37
CEO SPECIAL
JOE PISANO
DOWN TO EARTH Jade Entertainment and Gaming CEO Joe Pisano speaks to Gambling Insider Editor Tim Poole about working in four different continents, witnessing the birth of Macau’s casino industry and the “best thing” about being a CEO When Gambling Insider asks Joe Pisano what the best aspect of being a CEO is, it is not the salary or status that comes to the forefront of his thinking. “The best thing about being a CEO is you’re creating jobs for people,” the Jade Entertainment and Gaming Founder tells us. “This is one of the best things in the world you can do because you’re not only helping that one person, you may be helping a family and that person may be putting kids through college. As a CEO, that’s the best thing about what I do.”
◆◆◆ As Gambling Insider sits with Pisano and talks through a career that has taken him to multiple continents, and the Digital Operator of the Year title at the Global Gaming Awards Asia-Pacific 2023, there is a certain calm and patience that comes
across. It becomes immediately clear that, in conversation, Pisano is never one to rush to a decision or say something in the heat of the moment. His dog, Duke, is perhaps less patient! Once or twice during our chat, Duke makes his presence known – maybe he was barking his own answer to one of our questions, we’ll never know… Animals are actually a common theme for Pisano these days. As well as his Border Collie Duke, the CEO also holds a “passion” for farming, owning a farm two hours north of Manila – where he spent the weekend prior to our interview. On that farm, Pisano has goats, pigs, chickens, turkeys, two cows, a horse, geese, rabbits and more – and the executive takes great pride in telling us all about them. But an awful lot has happened for Pisano, the boy born in Australia, to get to this point – a father who owns his own gaming company and farm in the Philippines. We reflect on the journey from the beginning.
THE RACE TO GAMING
You go to different countries; you install products in those countries; you work with the locals. But you effectively end up going to another ‘village.’ You don’t consider that you’re going to a different part of the world; it just feels like you’re visiting another village
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“I grew up in Australia and went to what would be considered a city school; Canterbury Boys High,” Pisano reflects. “I guess the most famous alumni from there would be the former Australian Prime Minister, John Howard. We did have a racecourse across the road from the school. So, in my early years, I was very familiar with horseracing. Quite a few of the kids we went to school with, their dads were jockeys, trainers and the like at the racetrack. Even some of our after-school friends were involved in racing.” There are no prizes on offer for putting two and two together: that early exposure to the racing sector inevitably lent a hand to Pisano’s future gaming career. Of the many CEO Special interviewees Gambling Insider has spoken to, there have been a variety of routes into gaming; growing up around racing is one of the more explainable – an influence also present for one of our other Australian CEOs in this edition, Tom Waterhouse. “After school, I got into IT and worked for a company called Digital, which was eventually bought out by Compaq and then Hewlett-Packard,” Pisano continues. “They developed real-time systems and I ended up working for Automatic Totalisator, where we developed the first fully computerised Tote system.
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I then went on to become Project Manager. I installed the Tote system in the racetracks in South Africa in Cape Town, Kenilworth and Milnerton, then in Port Louis, Mauritius, Tab in Malaysia and the racetrack in Malaysia. In those days, where the racetrack was is where Petronas Twin Towers are today. The track was eventually moved to make
Jai alai, the popular Filipino sport, in action
The Petronas Towers
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way for the Twin Towers and moved to the Royal Bangkok Sports Club, which was one of the few venues that allowed betting in Thailand. This was in 1986.”
AROUND THE GLOBE
We have only just started our interview and, already, Pisano has mentioned jobs
in Australasia, Africa and South-East Asia. It is a point of comparison Gambling Insider is naturally keen to learn more about, but not before the CEO guides us further through his journey, including not only time in Nevada and a return to Australia, but Pisano’s initial arrival in the Philippines. “In 1988, I came to the Philippines to install the Manila Jockey Club, which is where Winford Resorts and Casino Manila is today. The racetrack later moved to Carmona CTI and, in June this year, horseracing ended. Manila Jockey Club is no more. I then set up a book on Jai alai in Manila in the early ‘90s. We used to get around 20,000 patrons per night, so we ended up putting Tote windows in the car park.” The sport Pisano refers to here, Jai alai, is popular within Latin America and the Philippines. Both UK and US readers may be forgiven for not being familiar – it involves ‘bouncing a ball off a walled-in space with a hand-held wicker cesta.’ It is comparable to a cross between squash and polo, played on a court similar in width to basketball – but almost twice as long. Between 1992 and 1994, Pisano recollects Jai alai being “by far” the most popular sport in the Philippines, which brought “so many patrons” to Pisano’s venue. Due to regulations, however, the property was eventually closed, prompting Pisano to move to another new continent, North America, before returning to Australia. Pisano’s next destination was Reno, Nevada, to be precise, where he became involved in linking systems together and testing keno. Keno stayed with Pisano during his career, and his move back to Australia saw him join IGT to oversee its Asian operations. Here, Pisano found a central position to witness the birth of the Macau casino industry as we know it. It could be said Pisano had the best seat in the house – but this cliché would be unfair, as the executive was hands-on in the development of the land-based systems that helped forge Macau’s casino landscape. Pisano joined IGT in 2002 and the early 2000s was when the supplier opened its first office in Macau. “During those days, there were very few casinos in Asia,” Pisano tells Gambling Insider. “There were skiing highlands and a couple of properties in Macau and the Philippines. So I’ve seen the great build of casinos here in Asia and, here in Manila, we now have four integrated resorts. We have an integrated resort in Cebu. We’ve seen big resorts in
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Phú Quôc in Vietnam, including slot clubs, which were developed in Vietnam and two casinos in Singapore: Marina Bay Sands and Resorts World Sentosa. Over the past 24 years, I have seen great development in the land-based casino industry.”
TRULY OMNICHANNEL
With the turn of the millenium, it was no longer all about land-based casinos. It sounds simple enough to say in this day and age – especially with Pisano now the CEO and Founder of an online gaming company – and it is easy to look back now with hindsight and declare the rise of online gaming ‘inevitable’ or ‘obvious.’ But, with even the world wide web being so new, there were no guarantees. That explains why, despite holding conversations and seeing that “there was a future online,” Pisano did not become involved in online gaming until later on in his career. Another reason was regulatory restrictions in the Philippines, although this is also
a situation that has changed over the years – with the nation now one of the largest online jurisdictions and “probably one of the few licensing jursidictions” in Asia. The overall approach, therefore, is truly omni-channel, as Pisano describes: “Here in the Philippines, we have land-based casinos and online casinos. We have online sports betting and we have retail. We have live bingo and we have electronic bingo. We have slot parlours and we have a great diversity of gaming. You’ve got to credit the regulator (PAGCOR, the Philippine Amusement and Gaming Corporation) for allowing us to be adventurous with gaming here and develop new products.” Pisano, visibly upbeat during this part of our discussion, is also optimistic about the state of Filipino gaming moving forward. He explains: “We’ll see several games being developed called colour games, which are unique to this market. I also watched a video of the new development in the Philippines, which is going to be over 80 hectares, an integrated resort, and one of the
The best thing about being a CEO is you’re creating jobs for people. This is one of the best things in the world you can do because you’re not only helping that one person, you may be helping a family and that person may be putting kids through college Pisano with his border collie, Duke
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best resorts in the world. It has 5,000 rooms and the video showcases what it’s going to look like. It’s going to be absolutely amazing!”
WHERE NEXT?
In general, Pisano’s optimism for the future applies to gaming on a global basis: “In terms of where the gaming industry is heading, it seems to be all about data and AI.” Discussions in recent years have centred around data warehousing and business intelligence, according to Pisano, and AI is going to play a “very big part” in the development of sports betting and new slot games. “The online industry and the land-based industry have embraced this technology and they’re going to continue to embrace it,” he says. “The next step here is AI and it’s really all about data and understanding not only the players but how to address those players. Part of this AI is going to include things like responsible gaming and understanding where there’s a problem.” On this note,
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Pisano concludes: “If you’re in the industry, it’s going to be exciting to watch these developments over the next few years.” Despite the technological advances gaming – and the rest of the world – is making, however, it is interesting to note that the core gaming experience retains significant similarities across the globe, and perhaps over time too. When Gambling
today or an Egyptian theme tomorrow. We’ve seen leprechauns on the same game, it could be anything as long as it works well – and that’s quite common.”
SOMETIMES, YOU CAN’T MAKE IT ON YOUR OWN
A common phrase one will find in job descriptions is “self-starter” – and an equally common descriptive term in
I see India and Sri Lanka as the biggest markets in the Asia region. India has 1.4 billion people and Sri Lanka is right next to it Insider asks Pisano to compare life and work across the different continents he has worked in, 40 years of travelling to different countries and sampling their gaming ecosystems has led the exec to the observation that people are “pretty much the same everywhere.” The CEO explains: “You go to different countries; you install products in those countries; you work with the locals. But you effectively end up going to another ‘village.’ You don’t consider that you’re going to a different part of the world; it just feels like you’re visiting another village. Gaming-wise, it’s pretty much the same. The pathology of a gambler is similar whether it’s Africa, Asia, America or Australia. Of course, we see some differences; Asians, for example, like different types of games. If we go to Macau, we see it being predominantly a table games market. If we look at the electronic gaming slot machines, if you come to Asia, you’ll see the Asian theme games. But now, if you go to Las Vegas, you’ll see a lot of the same Asian theme games working just as well.” Indeed, the “core essence” behind those slots, as explored by the cover feature of the July/August edition of Gaming America magazine, is the mathematics behind the games. Pisano notes that some of the earlier games in the industry’s history were Egyptianthemed: Cleopatra, Queen of the Nile and Book of Ra were some examples. Yet it wasn’t necessarily the theme that players loved, it was the maths behind them. The same concept applies industrywide, whether that is a “Chinese theme
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biographies is “self-made.” While both of these phrases do hold meaning, and some individuals are simply more intrinsically determined than others, there is an argument that no one is completely self-made or self-starting. For every CEO we have interviewed over the years, there was an inspiration or mentor somewhere along the way. And, when Gambling Insider asks Pisano who the biggest mentor in his career was, it provides an interesting reflection on his own character and management style. “When I worked at Automatic Totalisator, we were going from electromechanical to computerised technology and the Head of Services there was called Alan Rose,” Pisano recalls. “He had a down-to-earth style of dealing with technology. We had mechanical engineers. We also had electronic engineers, and we were transitioning from mechanical to electronic and computerising. I had a lot of respect for Alan, not only as a technologist but as a person, the way he conducted himself. He was a very down-to-earth person.” Here, it is certainly worth noting how Pisano presents himself today and our own description of the executive earlier in this very article: ‘There is a certain calm and patience that comes across. It becomes immediately clear that, in conversation, Pisano is never one to rush to a decision or say something in the heat of the moment.’ On the flipside, though, we should not pretend for one second that the CEO role is an easy one. Not everyone possesses the
ability to lead an organisation, and not even everyone who can will get the chance. What is Pisano’s toughest challenge as a CEO? “The budgeting and financing,” he responds candidly. “I’m not strong at that. I like to have new projects and spend – and I need a strong CFO to say ‘we don’t have the money to do that!’ So the worst thing is the money side of the business: controlling the money, looking at spreadsheets and when I know we can’t spend the money.” But, again, this is where Pisano is not alone. Jean Rose Buenaventura, his “brilliant” CFO at Jade Entertainment and Gaming, is ex-William Hill and “very strong” – a “big help” that is not lost on Pisano.
MAKING THE LEAP
The influence of Rose and Buenaventura help prove the point that no executive can truly go it alone – but, naturally, those with an entrepreneurial mindset can choose to pursue their own avenues of doing business. Previous guests on the CEO Special who have explored the entrepreneurial route – and with great success – include DraftKings CEO Jason Robins, LeoVegas CEO Gustaf Hagman and PointsBet CEO Sam Swanell. In 2009, Pisano made this leap himself, founding Jade Entertainment and Gaming. He admits, though, that the thought process behind the move was rather simplistic: ‘I need a job, so I’ll create my own.’ As Pisano recollects, there was a space in the market for a distributor of diversified gaming products. He began working with properties on a revenue-share basis, where Jade would supply the equipment and operate the property for the owner. Over time, Pisano brought in more products and then started to introduce services. “Pre-Covid-19, there was an opportunity to go into sports betting,” Pisano tells Gambling Insider. “A casino asked me, ‘Can you supply sports betting?’ And I said ‘yeah, sure. Why not?’ So we installed our first sports betting site in the famous Okada Manila. But we got hit by Covid-19 and we had to close. Then we thought a good thing to do would be to expand the casino floor online. This is where remote gaming came in. The property was closed, but expanding the casino floor into the online space allowed the business to continue. So that’s when we got together with BetConstruct and developed the full retail and online solution. This is where Jade Sports Bet is today.” Over the years, Pisano has recognised the importance of attracting customers within sports betting – which is no surprise given the competition for customer acquisition across key markets like the UK and the biggest US states. As such, Jade has spent “a lot” on marketing. Once you go under the hood,
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however, Jade has also expanded heavily in terms of product in recent years. There is live horseracing and dog racing streaming from the UK and Mexico, while Jade is about to go live with fantasy esports in the Philippines (at the time of writing). “It will be the first fantasy sports product here, and that’s as a player acquisition tool,” the CEO explains. “We’re also launching fantasy basketball here in the Philippines. Then for the future, I see India and Sri Lanka as the biggest markets in the Asia region. India has 1.4 billion people and Sri Lanka is right next to it. We’re about to launch Jade Fantasy Cricket in Sri Lanka. That’s together with Supreme TV, who have the rights to the Sri Lankan cricket league there. So now it’s moving into products such as fantasy that will bring players into our database, which we can market offerings beyond gaming, such as microgaming or opinion betting. You may have an opinion that it will rain after lunch and an opinion exchange is where we can post what we think and set the odds. These are all maths and database-driven.” As for Pisano himself? A rewarding career shows no signs of slowing down. “I enjoy the industry, I have a lot of friends in the industry and, as you know, I go to a lot of industry events,” he closes. Let’s see which gaming “village” Pisano ends up visiting next.
It could have a Chinese theme today or an Egyptian theme tomorrow. We’ve seen leprechauns on the same game, it could be anything as long as it works well – and that’s quite common
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SAYING IT AS IT IS Betfred CEO Joanne Whittaker joins Gambling Insider Editor Tim Poole to discuss her journey alongside Founder Fred Done, lessons learned as an entrepreneur – and why debates, disagreements and collaboration are vital for company progression Betfred has become a household name in recent decades – one that is synonymous with the gambling industry. The brand’s reach is increasing internationally but – naturally – it is the UK where it is best known. In 2023, owners Fred and Peter Done, and family were the nation’s fifth-biggest taxpayers thanks to turnover generated by the operator (bet365 owners Denise, John and Peter Coates came second in the list). It is Fred Done, formerly the operator’s CEO and now Chairman, who has been both the voice and face of the brand over the years. But since her appointment as CEO in April 2021, it is now Joanne Whittaker that is taking the business forward and managing the day-to-day operations.
Regulation is really important for our sector. I try and embrace it. I think we’ve had a culture and mindset shift within Betfred since I started... it is too easy to blame regulation, saying it’s the problem and it’s everybody else’s fault
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And, as Gambling Insider gets into our discussion with the CEO, it does not take long to form a picture of how she and Done work together. Suffice it to say polite agreements do not sit high on the Betfred priority list. Whittaker is a big believer in using friction to create fire: “Fred and I have got a fantastic relationship. We’ve never fallen out,” she reflects. “But we get into lots of arguments... I think you’ve got to get into debates and heated discussions to really get to the right outcome for the customer.”
◆◆◆ Whittaker’s Betfred journey began two decades ago. With a background in programming, the now-CEO initially oversaw the company’s IT department. Back then, Betfred had 500 shops (it is now well beyond 1,300) and Done asked Whittaker to join the organisation to roll out its EPOS (Electric Point of Sale) system. At the time, Betfred was a far cry from the company it is today; it was “very much a small bookmaker” and had only recently launched its online call centre. In fact, after helping bolster the company’s technological systems, Whittaker expressed her desire to step away from the brand and run her own business – ironically just as its estate began to grow at pace. Here, her Betfred journey had not ended – but it would take one or two detours.
THERE AND BACK AGAIN
Leaving Betfred, however, did not equate to leaving her working relationship with Done. Far from it. In 2005, Done provided Whittaker with a £100,000 ($127,000) loan in return for 25% of her new company, Fideliti. What was Fideliti? Humbly, Whittaker describes her idea, which found a gap within the market and improved on its existing offerings, as “really boring.” She explains: “I had this idea of creating a business that did childcare vouchers. I had never written
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a business plan. I had never run my own business. But Fred offered me a loan for 25% of the company, and we went from there.” Fideliti became a “massively successful business that grew over seven or eight years – one of the biggest in the UK.” The organisation’s premise is that of an ethical family-owned company, which specialises in the provision of childcare vouchers and runs Childcare Voucher Schemes designed to ‘offer maximum flexibility’ for parents and families. And yet, after a while, Whittaker came to the realisation that the business “didn’t really need” her after a certain point – not unlike
Betfred in her first stint with the firm. “I developed the system. I was everything. I was the salesperson, the developer; every element of that business,” she tells Gambling Insider. “But as we grew, the team I recruited didn’t really need me, so I went back to Fred to do something else.” Whittaker ended up creating a second business, Angel Advance, which was a debt advice service. Another organisation that still exists today, Angel Advance performed well, was “very innovative” and included offerings such as an end-to-end advice tool. The early success of those two businesses, though, showed Whittaker –
Why do people come to work? They want to be paid well, they want to be successful and most people want to advance their career. So we’re doing a lot of work in that area. We want to be the best and to be the best, you have to listen to your staff and your customers
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to her mind – what she excelled at: coming up with an idea, getting it off the ground and leaving the right people in place to “get on with it.” With that stage taken care of for both Fideliti and Angel Advance, Whittaker’s next step would return her to familiar territory.
“MEASURED RISKS”
That next step saw Whittaker appointed Betfred CEO in April 2021, allowing Done to scale back his duties at the operator and take the role of Chair. But, in its new CEO, Betfred was not just getting the Head of IT that originally departed the business 16 years prior. Yes, Whittaker was the same detailoriented, no-nonsense character. Years of entrepreneurship, however, brought years of experience. As Whittaker looks back, there are a number of lessons she can draw upon to this very day. “Fideliti was so long ago now. Fred lent me £100,000 and, at the time, it was such a phenomenal amount of money – it frightened the life out of me! I was probably too cautious and too slow in terms of marketing the brand and really pushing the business. We got to where we needed to in the end – and we grew it to be a massive business – but I should have been braver earlier on.” Yet that source of potential wisdom for Whittaker does not bring with it a source of regret. In terms of financial management, Whittaker learned the hard way – i.e treating the business’ money as she would her own. And that’s because it was her own. Her experience at Fideliti has instilled a sense of financial sensibility that has stayed with Whittaker ever since. “Even at Betfred now, I treat every penny as if it’s my own and we make sensible decisions,” she says. “It’s really easy to get carried away with spending money and becoming complacent. For me, it’s really important to control the P&L, manage all costs and really question ‘do we need it? Why do we need it? And what value do we want to derive for every pound spent?’” It is a concept best described by Whittaker’s use of the phrase “measured risks.” As an entrepreneur, she warns, you simply do not earn money if your business is not performing well. In her eyes, this “makes you understand value a lot more.” Her agreement with Done saw her forego a salary until Fideliti made a profit. “I would say you take risks, but more measured risks, because you’re still risking someone else’s money the minute you become employed. But in my opinion, you take more measured risks.” The other advantage entrepreneurship brought Whittaker is that it gave her the understanding of “every aspect of the business.” “Even as I grew the business,
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you’re growing it from nothing, and that was something I had to get to grips with,” she adds.
BACK TO BETFRED
After running her own businesses and so closely overseeing all departments, Whittaker’s Betfred return called for adjustment and adaptation. By comparison – both to Betfred’s hitherto size and her other businesses – the brand was now a “massive beast.” Whittaker therefore does not know every one of her 10,000 global employees individually – nor has she personally carried out every element of the production chain. She still likes to understand the details where she can, and aims for a certain level of
understanding that enables “meaningful conversations” with employees or team leaders. Yet, in contrast to her first days as an entrepreneur, being Betfred CEO since 2021 has required an appreciation that Whittaker cannot “be in the detail of everything.” Echoing similar sentiments from Metropolitan Gaming CEO Michael Silberling, another interviewee in this year’s CEO Special, she muses: “It’s about managing my own time, but not killing myself trying to work four million hours a week to know the detail.” Whittaker’s second spell at Betfred has centred on “the next stage of the journey” for the company. In her own words, it’s very much a handover from the Founder to someone else running the business. As
Fred Done and I get into lots of arguments and debates, and we don’t always agree with each other. We both like to say it as it is, but we’ve never fallen out. We’ve got a fantastic relationship, and I think that comes down to mutual respect
such, Whittaker and Done still work closely to this day. She has “tonnes of respect” for both Done’s achievements and Betfred as a wider entity. “I've been working a lot around governance and structure, making sure we’re in the right place to run a global operation and get a bit more oversight,”Whittaker explains. “We’re working in 10 states in the US and with two businesses in South Africa, as well as UK retail and digital. So it’s about looking at that structure, what we’ve got, how we grow the business at the same time as working on our proprietary technology with our IT teams here.” Unsurprisingly, Whittaker tells Gambling Insider that an “extremely hard-working” Done “genuinely works seven days a week.” He still holds involvement in several other businesses, as well as Betfred, and his relationship with Whittaker is one of respect but, as alluded to earlier, not one without its disagreements. These are not personal or emotional disagreements, but sources of debate that can ultimately take a business forward. Whittaker explains: “I’m the CEO and I manage all the day-to-day dealings of the business. But Fred is there for me when I’m not quite sure, or when we’re having a bad day. Fred is the voice of reason. If I’m playing through an idea in my head, he is a good sounding board. We get into lots of arguments and debates and we don’t always agree with each other. We both like to say it as it is, but we’ve never fallen out. We’ve got a fantastic relationship, and I think that comes down to mutual respect.”
“THE RIGHT OUTCOME FOR THE CUSTOMER”
Whittaker is extremely keen on having those arguments and disagreements. She won’t shy away from them. Indeed, the CEO acknowledges her role as the ship’s captain, but describes herself as a team player – and is a huge believer in collaboration rather than a follow-the-leader mentality. “I think you’ve got to get into debates and heated discussions to really get to the right outcome for the customer,” she says. “I’m not always 100% right, but I think getting into those debates, working with your team, and listening to all levels of the organisation is critical.” With Betfred being an omnichannel – and predominantly retail – operator, Whittaker regularly gets the chance to apply this principal on an even more granular level. The CEO likes to “get into the weeds and listen to people on the ground.” She visits shops, sits with all levels of the organisation, listening to staff. “You hear terms about ‘customer centricity,’ but no one’s ever bloody listened to a call
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from customer services!” To find out how customers are actually getting on with Betfred staff, Whittaker will read their actual live chat conversations with customer support. Makes sense, right? All of the above, however, is dependent on having the right staff in place – and keeping them motivated enough to perform. So, in the end, it’s a case of listening to both the staff and the customers. “I’m a great believer in people – supporting the people within our business by creating the best work environment and empowering them to drive positive change,” Whittaker comments. “We’ve got to ensure we provide the right package, create exciting career opportunities, to attract and retain the best staff. Why do people come to work? They want to be paid well, they want to be successful and most people want to advance their career. So we’re doing
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a lot of work in that area. We want to be the best and to be the best, you have to listen to your staff and your customers. You have to look at where you are good, and where you are not good – and then fix the things you’re not good at. That’s what we’re doing.”
AGILITY VS SCALE
Whittaker is “just really proud” when she thinks of those she has worked with during her Betfred journey to date. The organisation, employees, brand itself and the work put in by Done all leave the executive beaming as she tells us: “The fact that I’ve been chosen to take that brand forward and protect the legacy... That’s really easy to do when you’ve got fantastic people working with the organisation. It’s not an easy job overall – but it’s a lot easier because of all those people around. You can’t do it on your own.”
Of course, here the Betfred CEO hits the nail on the head. Added to the pressures Whittaker faced as a Founder at Fideliti and Angel Advance, in her current role the exec is leading a tier-one gambling operator competing within a dynamic tech industry. And the hardest part of the job for Whittaker relates directly to that technological aspect. “We’ve had lots of technology restraints,” she states. “When we’re in an organisation, we talk about being agile, but we just can’t deliver things as quickly as we want sometimes, and that gets frustrating because you want to be innovative. In my own businesses, we were able to come up with an idea and get it out the following day. Once you get to an organisation of the scale of Betfred’s, I find that pretty tricky. Everything takes longer.”
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Improving this specific area of the business is obviously a priority for Whittaker and, in the immediate term, Betfred does have what it hopes to be a solution. Indeed, its new technology platform has launched, giving the operator the “bedrock” to move faster and “really start to deliver.” It’s a topic Whittaker feels strongly about, to the point where she somewhat refutes Gambling Insider’s suggestion that regulation is an added hurdle brought about by having scale. “It can be seen to be like that, but we are where we are with regulation,” Whittaker responds. “Regulation is really important for our sector. I try and embrace it. I think we’ve had a culture and mindset shift within Betfred since I started. We have embraced regulation and we’re looking at ways to be innovative
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in that area. Rather than seeing it as a barrier, we’re looking at how we can flip it on its head, innovate and lead. Again, our new technology platform will give us the ability to do that.”
THE UK, US AND SOUTH AFRICA
Refreshingly, Whittaker believes it is too easy to blame regulation or claim that “that’s the problem and it’s everybody else’s fault.” While it has not been a “smooth journey” for the sector, and the UK is an imperfect market (what market isn’t?), the Betfred CEO is keen to defend the Gambling Commission, a regulator she believes is actively working with the market to move it in the right direction. That direction is a “really exciting” prospect for Betfred and Whittaker, as she states: “The launch of our new platform enables us to start increasing market share and making a dent in the UK market.” Inevitably, Whittaker must also look beyond the UK. In the US, Kresimir Spajic was recently appointed Betfred USA CEO, bringing with him experience of North American markets at the likes of Hard Rock International and Great Canadian Entertainment. In another highly competitive landscape – “it’s not an easy place to be!” Whittaker quips – Betfred is looking to define what the brand stands for within the US and map out its strategic approach. In South Africa, meanwhile, Whittaker is encouraged by the “fantastic job” the Betfred brand has done with its retail arm. Similarly, Betfred appointed a new CEO for its South Africa division in December 2023: Lawrence Azar. “It’s all about watching his journey as we get that digital brand off the ground. For LottoStar, our other South African brand, it’s about continuing to watch that grow. It’s beaten all targets and is growing year-on-year, so it’s exciting to stay on that journey.” Hopes are high, then, for Whittaker and Betfred as 2024 simultaneously presents its various challenges and opportunities. What Gambling Insider holds no doubts about, though, after our conversation with the Betfred exec, is that Whittaker will continue “saying it as it is” to navigate the ongoing balance of technological progress, agility and sensible financial decision making. Industry growth will remain a constant – as shall the demands that are placed on Whittaker’s team and operators like Betfred. But so too, no doubt, will the CEO’s determination to keep up, her attention to detail and her desire to do right by the customer. Along with the odd heated debate – although that’s perfectly fine in Whittaker’s book.
Even at Betfred now, I treat every penny as if it’s my own and we make sensible decisions. It’s really easy to get carried away with spending money and becoming complacent. For me, it’s really important to control the P&L, manage all costs and really question ‘do we need it? Why do we need it? And what value do we want to derive for every pound spent?’
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MICHAEL SILBERLING
RISING TO THE CHALLENGE Metropolitan Gaming CEO Michael Silberling speaks to Gambling Insider Editor Tim Poole at the Metropolitan Casino Mayfair. They discuss meeting Queen Elizabeth II, Dungeons and Dragons and, more importantly, a career that has spanned multiple continents as a gaming leader If anyone has ever tried to find a link between paleontology and gambling, they’ll hit the jackpot when they meet Michael Silberling. Growing up in California, Silberling’s father was a paleontologist, exposing him to the mountainous landscape of Nevada as a child. But, reflecting on a career that with hindsight seemed destined for gaming, he admits there were a few “other tells” early on. Not least of which was the first elective course Silberling took in college: probability and gambling. Around the same time, the now CEO also played “a bit of poker” and, given this concoction, the Management Training Programme at The Promus Companies – which would subsequently become Harrah’s then Caesars – felt like the perfect step to launch Silberling’s gaming journey.
◆◆◆ As Gambling Insider sits with Silberling at the Metropolitan Casino Mayfair, we are surrounded by lavish decor, high-grossing table games and the general sense of ‘yes, this is Mayfair.’ It is exactly the kind of property the term ‘VIP’ was coined for – inviting exactly the kind of clientele that would be considered ‘high-end.’ And yet these surroundings were not always home for a young Michael Silberling. Far from it, in fact, as the exec tells us his first job was that of a dishwasher. “I think that's invaluable,” he remarks. “I think those early lessons as a dishwasher, and as a bartender, have been invaluable. I’m still truly appreciative of people who are on the front line and serving customers.” The sentiment reminds Gambling Insider of our CEO Special interview with MGM Resorts chief Bill Hornbuckle back in 2020, who told us he started out as a bus boy. Like Hornbuckle, any glitz or glamour Silberling sees around him today is the result of hard work and determination alone. There was no silver spoon for him starting out, except perhaps those he washed on duty.
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OCEANIA BY WAY OF NEVADA
“Before I joined the casino business, I worked in hospitality so I know how hard it is to do shift work and different hours, different jobs,” Silberling continues. “However, after joining the Promus Companies I was lucky to later be in marketing, operations and finance, so that was very important, as well as getting exposure geographically to different regions and understanding that there were different ways to do business. There is not just one right way. I also learnt under [former Caesars Entertainment CEO] Gary Loveman's leadership, and he introduced me to his thoughts on loyalty programmes and the use of data in business. He taught me about the service profit chain, which is: happy employees give good service, which leads to customers coming back, which leads to financial performance.
I think what I have seen is a little bit of a pattern, in that I don't go into established businesses where everything is running smoothly and fantastically. Instead, I seem to jump into the fire
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So there was a very solid grounding from my perspective during that period of time.” Naturally, Silberling looks back on his time at Promus (then Harrah’s, then Caesars) as a “significant part” of his early career. The timing was “fortuitous,” as the casino industry had just started to expand. This made it a “very good time” to join the organisation, not just from a strategic standpoint but because it was “in a massive growth phase.” Over his years with the company, Silberling went on to witness riverboat gambling, Indian gaming and international expansion. He also rose through the ranks in what he feels was “not very long” from manager to director to VP, then SVP and President (of International Operations) – all fueled
by the company’s “rapid expansion.” Soon, Silberling’s career would no longer be limited to North America, as his international expansion experience became a little more literal – with a particular focus on the continent of Oceania. “Oh, it's been a bit of a travelogue for me, hasn't it?” he quips. “Because I started in Nevada, then I opened Harrah's first international property in New Zealand. I went back to Nevada and then I went to Australia. After that, I went to the Midwest, and then to London. Between these, I learnt that there are some universal truths about customers and the casino hospitality business everywhere. But there are of course some changes in the different environments, in terms of customer tastes, and political and regulatory environments.”
At the time, I was wearing a rental suit and the trousers had malfunctioned, which meant the entire time I was meeting the Queen with the BBC cameras there, I thought my trousers were about to fall down! But I’m pleased to say they did not…
Silberling sits with Poole during our interview at the Metropolitan Casino Mayfair 56
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FROM TROUBLE IN PARADISE TO MOHEGAN SUNSHINE
Silberling’s years of experience had, by this point, spanned three continents and four different brands. Some 14 years at Harrah’s interweaved with three at SkyCity, three at London Clubs International and a further three at President level with Caesars. Collectively, this all prepared him for what was to become his first CEO role at Affinity Gaming, in August 2014. Yet Silberling recollects that were easier gigs he could have picked… prompting a moment of self-realisation for the executive. He tells Gambling Insider: “Affinity Gaming was my first CEO role. It was my first time going into a private equity company too. I think what I have seen is a little bit of a pattern, in that I don't go into established businesses where everything is running smoothly and fantastically. Instead, I seem to jump into the fire; and I have examples of that in Laughlin, Reno and other times in my career.” Certainly, “jumping into the fire” is an appropriate phrase when it comes to the appointment at Affinity. Alas, Board directors were suing one another. Following a company data breach, three state attorney generals were also – you guessed it – suing Affinity. Perhaps predictably in such a chaotic environment, financial performance wasn’t “where we wanted it to be.” But, summing the turnaround up rather succinctly, Silberling is “really proud” of a “very interesting and dynamic time” that saw the company’s finances come good. Here, though, Silberling is keen to credit “several people on my team” without which Affinity could not have achieved the feat. The executive’s next move was a unique one, in that he moved from CEO to COO – and from his first private equity firm to his first tribal organisation. Indeed, in October 2018, Silberling was appointed Mohegan Gaming & Entertainment’s Chief Operating Officer, a “different chapter” that left him with “nothing but respect” for what the tribe had achieved. This was especially in relation to its flagship property at Mohegan Sun in Connecticut. “It’s a fantastic property with a number of restaurants, bars, nightclubs, hotels, a golf club and spa,” the exec comments. “The tribe has expanded and diversified the business, too, including but not limited to owning professional sports teams and expanding internationally. “Interestingly, they take a much longerterm approach to their business. It takes a generational approach, unlike a public company, which is every quarter; or private equity company approach, which is ‘we want to sell this business in three to five years.’ A generational approach in the respect with which they treat their employees in
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this long term is very interesting to me. It was very clear as they brought me into the business that this was their approach. But it's definitely a mindset change when you think about it. It's a very different, interesting and, in many ways, healthy approach to running the business.”
“I SEEM TO PARACHUTE MYSELF INTO TROUBLED SITUATIONS”
After Silberling’s earlier suggestion of a tendency to avoid smoothly functioning, established businesses, Gambling Insider was curious as to the exact motivation here – whether these situations kept
developing particularly because Silberling loves a challenge, or whether it was just circumstance. In response, he is keen to point out that not every job he had was like this: Mohegan being a case in point. But he admits there is “no question” he does like a challenge. In Laughlin, for example, Silberling was able to grow his business following several years of consecutive decline. In Reno, meanwhile, Silberling was the fourth General Manager hired within the space of a year. When he arrived in London, the exec was also greeted by a freshly implemented smoking ban – along with the small matter of the onset of the global financial crisis.
In fact, he summarises: “I seem to parachute myself into troubled situations. I do think I like the challenge. I do think I like the intellectual stimulation that comes from having to address things with some degree of urgency.” But on top of his desire for a challenge, another common theme in Silberling’s career is the fact he has been repeatedly rehired by previous employers. The CEO earlier talked about happy employees providing good service, which ultimately leads to returning customers. It seems Silberling has applied this mantra quite literally to his own journey. “When I left Caesars to go to Australia, they hired me back to run their Midwest business, and when I left SkyCity to come back to Nevada, they hired me back to run their Australian business.” This trend has not stopped, either, with Silver Point Capital, for whom Silberling worked when CEO of Affinity Gaming, appointing him once again as CEO of Metropolitan Gaming in August 2021 – the role he still holds in London to this day.
ADVANCE TO MAYFAIR, DO NOT PASS GO
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For those of you who understand the above reference to the famous ‘Monopoly’ game, Silberling’s career is comparable to a journey around the famous board. Right now, he is in a strong position – Mayfair is at the board’s very pinnacle and, in real life, one of the go-to places of the casino world. But, like a Monopoly player trying to avoid the game’s many hazards (rent, fines, going back three spaces or worse), Silberling faces constant hurdles. “Once again, it’s a business that is challenged by external factors,” he explains. “Coming out of the Covid-19 pandemic, when the business was largely closed, to a current operating environment where there's the greatest world war in Europe since World War II, there’s a cost of living crisis, high inflation, and some uncertainty with the UK Government, the White Paper and what will be allowed in a political and regulatory environment.” Silberling is forced to conclude that, not for the first time in his career, his job is “quite challenging.” In addition, he references the fact the UK has had, during this time, a new monarch, several Prime Ministers and “too many heads of the DCMS (Department for Digital, Culture, Media & Sport) for me to even count.” And yet Silberling – a characteristic that has shaped his time in gaming – is optimistic the work he and his team are doing “will negotiate the tides,” allowing Metropolitan Gaming to come out in a better space. Undoubtedly, the greatest uncertainty facing the UK market is of a regulatory
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nature. The aforementioned White Paper genuinely took years to produce, with an almost-countless number of revisions, and was published on 27 April 2023. In itself, it was only a set of recommendations for how the UK market can update its Gambling Act – now outdated having been introduced in 2005. It is telling that, since April, there has been no actual implementation of these recommendations, as the UK Government, Gambling Commission and industry stakeholders continue to undergo a series of follow-up consultations. For anyone following the subject closely, there will be familiarity with a concept of ‘don’t expect anything any time soon.’
THE UK: A LOST OPPORTUNITY
Understandably, this creates a great source of frustration for the Metropolitan Gaming CEO. He has previously appeared on a GI Huddle video interview bemoaning what he considers to be a rather contradictory set of restrictions in the UK compared to the US. “There are big political and environmental differences,” he explains to Gambling Insider. “There's such a lost opportunity in the UK for jobs and capital, as well as investment for tax generation and tourism. There's been tremendous debate about whether land-based casinos should go from 20 slot machines to 80 slot machines. And yet the reality is that every single adult in the UK who has a phone or a tablet has the ability to turn that into a slot machine. They could be anywhere and they could pull up a slot machine based out of Gibraltar and generate employment for the Gibraltar economy.” Given his experience with Caesars and the like, Silberling can not only draw on theory but personal experience when
it comes to the US. The Las Vegas approach – a city that has become the entertainment capital of the world, evolving from a gamblingonly destination – boasts entertainment venues, high-profile concerts, restaurants and bars that can attract international visitors. But, of course, all of these amenities stem originally from the casinos themselves, and from regulation allowing those properties to thrive. Granted, Las Vegas resorts have far more geographical space to utilise. In the UK, however, there are still great question marks about how the readily available space within a casino is ultimately under-utilised due to legally imposed limitations. Silberling argues that this is even more pressing case with regards to “intrusive” financial checks for gamblers – especially when compared to other industries. “On the regulatory side, I think people should be allowed to make individual choices. I really find that the regulatory environment is so intrusive to people's personal freedom and allowing them to participate in a legal activity that is enjoyed by adults worldwide. The checks and balances they make people go through in the UK regulatory environment to enjoy a casino are very different from what someone would have to do to enjoy an alternative activity. My daughter could go into a nightclub and spend a fair amount of money on a table and champagne without anyone bothering her. And yet, if she wanted to do that in a casino, she would be subjected to any number of checks.”
MEETING THE QUEEN
The Metropolitan Gaming CEO has already alluded to the fact that the UK has seen more than one monarch in recent times, following the passing of Queen Elizabeth
I can't triple employee wages, or change the odds on the roulette table while driving financial performance all at the same time. I'm a big boy and they’re paying me to make these decisions. But I'm no longer able to walk away with my job done at the end of the day and have everybody happy with the decisions I've made
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II on 8 September 2022. The late Queen Elizabeth was succeeded by her son – now King Charles III – and Silberling has actually met both monarchs. Indeed, Silberling’s LinkedIn profile picture proudly shows him standing with a younger Prince Charles, although he jokes that this “wasn’t for my charm, personality or good looks!” Instead, Silberling was meeting royalty due to the fact he was contributing to the Prince’s Trust, a UK youth charity. “I was lucky as a suburban boy from California to have met royalty. My mother was very impressed with that,” he beams. As for Silberling’s meeting with the Queen, though, there is a little more humour to that story… “We were giving the prize to the leading jockey and trainer of the Royal Ascot series and she came down to participate in the ceremony,” the CEO recalls. “At the time, I was wearing a rental suit and the trousers had malfunctioned, which meant the entire time I was meeting the Queen with the BBC cameras there, I thought my trousers were about to fall down! But I’m pleased to say they did not…” Charity, in general, is a huge part of Silberling’s life, both personally and professionally. The CEO tries to support research into the treatment of Alzheimer’s as much as he can, an affliction that, tragically, has affected his family. Growing up as the son of a Stanford professor, Silberling was also adopted, and is therefore “always interested in supporting children; especially those in adoptive circumstances or without parents.”
DUNGEONS AND DRAGONS
Outside of Metropolitan Gaming, Silberling serves on the team at SCCG Management and is close friends with Founder Stephen Crystal, himself a friend of Gambling Insider’s and a regular contributor to Huddle interviews and Gaming America magazine. The pair were classmates at Dartmouth College and have known each other since the 1980s – or “what seems like the Jurassic Age.” “As someone who has climbed the corporate ladder and worked in the corporate environment, I always have respect for entrepreneurs,” Silberling comments. “And he is the consummate entrepreneur who is looking for and investing in new business opportunities. So, to the extent that my extensive experience in the casino and online business helps him, as an advisory board member, I'm happy to do so. Steve is a friend.” Meanwhile, outside of boardrooms altogether, Silberling enjoys an active lifestyle, particularly the outdoors. While he holds “no interest” in climbing Mount Everest, he has summitted Mount
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Kilimanjaro, also possessing a love of skiing, hiking and playing tennis. He loves travel, spending time with his children and, additionally, board games. Here, Silberling surprises Gambling Insider with the revelation that he is “a bit of a geek.” He even used to play Dungeons and Dragons. We reassure Silberling, however, when he asks “if today’s generation even knows what that is.” With fans of the classic game in our own office – and a movie released in 2023 – the CEO is in good company!
A COMMON PURPOSE
As our interview draws to a close, we return our conversation to the life of a CEO. It can be grueling – with no ‘off button.’ “I remember early in my career as a bartender that, at the end of the day, I was done. My till was balanced, my customers left happy, my colleagues and boss were happy… but as a CEO, you're never done.” There is always “more to do,” Silberling muses, with some days even being about selecting “what not to tackle.” There are so many factors to weigh upon an ever-balancing scale: employee morale, customer service, financial performance and conducting business the right way. This leads to an important acknowledgement that “there are tradeoffs in making people happy.” And, in fact, considering all the inspirational life lessons industry leaders have provided Gambling Insider across various CEO Specials, Silberling’s next piece of advice might be one of the most crucial for any C-Level executive to heed. He is extremely down to earth, sans any one-size-fits-all clichés, when he says: “I can't triple employee wages, or change the odds on the roulette table while driving financial performance all at the same time. I'm a big boy and they’re paying me to make these decisions. But I'm no longer able to walk away with my job done at the end of the day and have everybody happy with the decisions I've made.” That said, there is one aspect of C-level leadership the Metropolitan Gaming CEO is able to single out with relish. “What I get the most enjoyment out of is being part of a team that feels they're being successful in creating new and interesting things,” he comments, summing up one of the most satisfying feelings any manager or business leader can experience. Perhaps that is why Silberling has willingly taken on so many daunting challenges throughout his career – and, to date, successfully navigated them. Oh, he gets by with a little help from his team… concluding: “As a CEO, the thing I enjoy most is building a team that is working together for a common purpose.”
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TOM WATERHOUSE
WHAT IS IN A NAME? Tom Waterhouse, Chief Investment Officer at Waterhouse VC, spoke with Gambling Insider about his family history in Australian bookmaking, his role as William Hill Australia’s CEO and the joy he has found in the world of investing. Words by Staff Writer Beth Turner Gaining a bookmaker’s licence at the age of 20 is hardly the easiest of achievements; being Australia’s most profitable on-track bookmaker before 30, with turnover exceeding $200m annually, is even more of a challenge. Yet, for Tom Waterhouse, Chief Investment Officer at Waterhouse VC, the challenge was one he was willing to take on. His family background and those in his life that guided him were a major driving force behind his success, he tells Gambling Insider...
It’s a real skill set. I was on a learning process for four years. I got a lot wrong in being CEO of William Hill Australia and I realised that it’s a big task. The bigger you get, the harder that challenge is... I take my hat off to the people who run these huge organisations successfully
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WELCOME TO THE FAMILY
“I grew up in a family with a great-grandfather who was a bookie in the 1800s and my grandfather who was a bookie in the sixties, seventies and eighties. My dad was also one and ran (and still runs) professional betting syndicates,” Waterhouse explains. “My grandfather was Australia’s leading group one trainer and my mum is Australia’s leading living group one-winning trainer.” Despite being part of a family with historical ties to the racing industry, Waterhouse wasn’t particularly interested when he first went to the University of Sydney to study commerce. His eyes were on finance. However, after a conversation with his father, his opinion changed. “My dad said to me, ‘Look, do you want to work one day for me on a Saturday at the races?’ I worked for him and fell in love with it.” He began by working as a bookie at the greyhound racing two nights a week in the early 2000s, a role taken on a suggestion from his father. After this, Waterhouse became a bookie at provincial races. He also partnered with his grandfather, Bill Waterhouse, who had just come out of retirement. It was “an incredible time” where he learned much about the industry. “I just loved it. I look back so fondly on that time.” Still, being part of a family so deeply integrated with the world of competitive racing came with metaphorical hurdles. Waterhouse described his mother as “strict.” It was a trait necessary for her position as a horse trainer, but for a young Waterhouse, an understandable deterrent from following in the family’s footsteps. Working early mornings in the stables as a teen with his mother on weekends, when “all my friends are going to the beach and going out at night,” was hard work – though, it seems hard work runs in the Waterhouse family, from his parents to his grandparents and extended family. “For the last 40 years my mum has woken up at 2:05am every morning and worked nonstop. Same with my dad; he’s up every morning at 3:30am doing the form. They’re hard workers, but they love it. And if you love what you’re doing, it makes it a lot easier.” While horse riding and horse rearing may not have been for him, the world of betting more than made up for it. “It’s funny, I never wanted my parents to talk about horses… Now my mum says to me,
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when I’m over at their house, ‘Please stop talking to your father about betting!’”
IT ALL STARTS WITH A BET
Despite gaining his bookmaking licence in 2003, Waterhouse’s sports betting site, TomWaterhouse.com, was not launched until 2010. The journey to the launch goes back far beyond a decade, though. It goes back 60 years. “My grandfather was the biggest bookie in the world in the sixties. He used to take million-pound bets when you could buy one of the biggest houses in Sydney for £3,000 ($3,800).” Despite his grandfather’s history with big bets, Waterhouse’s initial idea was to stay small, to "be a small bookie and just win all the time," he told his grandfather.
His response? “Look, you’ve got a bet. You’ve got to gamble” To Waterhouse, his grandfather was “right about nearly everything” and his comments here were no exception. “He transformed me into being a big bookmaker and by 2008, I was the biggest bookie.” At the time, Waterhouse held more money for the Spring Carnival than any other bookie, holding about AU$6m (US$4m) daily. With his dad’s form and access to Betfair (something inaccessible to bookies in New South Wales), Waterhouse could ‘bet big.’ High-value punters, combined with the Waterhouse name, gave him an edge. “I thought, well, I want to be doing this forever. It’s like playing poker every day. But high-stakes poker. It was just so fun.”
I love the industry. I feel so lucky to have grown up in this industry because it’s high growth. It’s interesting
Waterhouse had become a figure of note outside of betting at this point, too. In 2006, Waterhouse competed in the fifth season of the Australian version of Dancing with the Stars. Despite being the second contestant to be voted out of the competition, it proved Waterhouse’s notoriety. He also shared the season with a pre-Marvel Chris Hemsworth.
THE NEW FRONTIER
Around 2008, advertising laws in Australia changed and online bookies were able to advertise. “[I] got a AU$500,000 cash out of the favourite on Derby Day 2008 and couldn’t get AU$5,000 out of it in the favourite in 2009 Derby.” This sealed the deal – it was the last time he worked the races, taking on something new to keep and grow his customers. The next year, TomWaterhouse.com launched. The internet in 2010 was beginning to show its potential for sports betting. FanDuel had only been founded a year prior and DraftKings was still two years away, but operators including bet365, Ladbrokes and Paddy Power had entered the online space. They proved fierce competition, but the Waterhouse name held weight and allowed the site to grow. Despite the site growing “from 100 customers to a quarter of a million in 18 months,” TomWaterhouse.com remained behind other big operators. “We found out early that live sport and advertising on live sport worked, but we didn’t have the scale to compete.” The solution? Find a partner. Starting the sales process in 2012, Waterhouse turned to William Hill. “William Hill did a $700m acquisition roll-up of Centrebet and Sportingbet and we were a small add-on as part of that transaction in 2013. Then, in 2014, they asked me to be the CEO of that business in Australia, so that was a big transition.”
THE WILLIAM HILL CHAPTER
Becoming the CEO of William Hill Australia was a big leap for Waterhouse, but one he was able to navigate with his years of experience both as a bookie and online start-up manager. Managing operations in Australia, Tel Aviv and Manila, Waterhouse ran “a 500-person multi-brand part of their business,” despite never having had a corporate job before. Waterhouse found the role “an amazing experience. I’m very grateful for having that period working with William Hill for four years.” The start-up experience Waterhouse gathered in running TomWaterhouse.com was particularly valuable in this new venture. “When you go into one role in a corporate, you can often get stuck in marketing for
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10 or 15 years, or in the finance function for that period of time or trading.” Yet, when working in a start-up, Waterhouse tells Gambling Insider one must become a “jack of all trades.” “You see how all the different areas function and you’re going through a fast-track learning experience of understanding: What are you going to do for marketing? How does the trading function operate? How do all of the payments and finances function? It’s a different beast.” With knowledge of multiple business facets, coming into the role presented a smooth transition. Yet Waterhouse makes the point that, despite the perks, a start-up environment is far from perfect. “Big corporates have some huge advantages with scale and talent that a start-up doesn’t have when it’s just beginning.” Reading that quote, you can perhaps see where this story goes... in 2018, William Hill Australia was acquired by The Stars Group.
THE BUSINESS OF INVESTMENT
After the acquisition, Waterhouse focused on a new chapter of his career – and one he has fallen in love with, given his visible enthusiasm when discussing it: investing. He made note of a particular interest in brands with a high chance of succeeding that “can navigate their way from start-up to working with large corporates,” using the knowledge he has built up to date to see things from both perspectives. Large corporate and independent start-up
Entertaining his 20,000+ followers on Twitter, water skiing in a tuxedo... Just an average day for Tom Waterhouse
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I thought, well, I want to be doing this forever. It’s like playing poker every day. But high-stakes poker. It was just so fun
roles require different skills, most notably in staff management. The difference between managing 100 people versus 500 is vast. “I imagine it’s a completely different skill set you’d need to run an organisation with 50,000 to 100,000 people,” he adds. Small businesses have the advantage of familiarity. Aligning objectives “is very easy because you know how to communicate" with everyone; yet in a large business, a lot of time and effort must go into accountability and being “able to cascade those objectives and those priorities down to all the different people in the organisation.” Being able to manage these large groups was a skill even Waterhouse admitted to being imperfect at. “It’s a real skill set. I was on a learning process for four years. I got a lot wrong in being CEO of William Hill Australia and I realised that it’s a big task. The bigger you get, the harder that challenge is... I take my hat off to the people who run these huge organisations successfully.”
Still, with the acquisition of William Hill, Waterhouse re-aligned his career goals. But, while investing became key, something else presented Waterhouse with questions: his re-acquaintance with TomWaterhouse.com. “I wasn’t quite sure I had TomWaterhouse. com back,” he explained. “I had a two year non-compete. I wasn’t quite sure what to do, because I got used to the corporate lifestyle and being part of a company.” The re-acquisition of the site gave Waterhouse an interesting realisation. “There was a whole bunch of third-party suppliers trying to get into the William Hill or other corporate ecosystems” with cash out, data provision, affiliate marketing tools and others trying to be placed in the product pipeline. “I thought, if you’re an investor in William Hill or Paddy Power or Tabcorp, it was somewhat easy to analyse the value of those co-companies in it. They’re very similar lines of P&L.”
FINDING AN EDGE
Here, Waterhouse brought a unique trait to his investments: an understanding of the value of both small-scale and largescale businesses. The value of a large business, for example, is easily measurable. This goes beyond just turnover, gross win, cost of sales, marketing costs and headcount costs. It is also crucial to understand the team, the management and their tech skills, plus the company’s marketing and properties. This was Waterhouse’s edge. “Understanding the technology suppliers and whether they could get integrated or whether they were needed by the operators was an area that most analysts and people outside the industry couldn’t understand and it was much narrower.” With this thought in mind, Waterhouse assembled his team: “a handful of the best developers I’ve worked with over the last 20 years,” with a mission to “analyse all of the tech around the world” to find the best suppliers with attractive deals and valuations. The venture began in August 2019 and has continued in the four and a half years since.
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Attending conferences both in person and online, Waterhouse and co. met tech businesses supplying to the industry on the hunt for those with significant upside. “We’ve found some really interesting businesses so far thankfully; a lot of success,” he said, though stressed “you need a bit of luck.” “We had that luck to begin with and we’ve carried that on. Once you have a bit of luck it snowballs. My hope is that over the next 10 to 20 years, I can just focus on tech suppliers
to the gambling industry and invest in some really great businesses.” Given their similar career trajectories, Gambling Insider can’t help but compare Waterhouse’s journey to that of Tekkorp Capital Chairman Matt Davey. Davey’s “top-notch” team of people ran parallel to Waterhouse’s time at William Hill, having worked closely with him during that time for four years. The talent Davey was able to amass was “amazing.” “I feel the team I work with, trying to attract the best people
you’ve worked with over 20 years in the industry... I feel he’s done the same; he has surrounded himself with talent and they’ve done some great deals.
FINDING THE POT OF GOLD
Investing is far from a simple task; the assessment necessary to conclude the value of a business is thorough and even when completed does not guarantee a return. Even having experience on the side of the operator, as Waterhouse does, does not equate to a home run. Being in the industry for 20 years, as Waterhouse has, does improve your odds, though. Waterhouse expressed excitement about several businesses with whom he and his team are working, noting three in particular. One, a listed odds data supplier, was the business that gave him “a blueprint” for structuring deals, setting him up for further investments in his developing career. The second was a business that builds platforms for crypto betting projects. The third was a tennis syndicate, run by a young exec Waterhouse described as “one of the most talented people that I’ve worked with.” He has designed a tennis model Waterhouse believes will allow him a “huge opportunity to grow his business.” This is not the entirety of Waterhouse’s list. He also spoke of some of his emerging investments, with “a dozen or so really exciting businesses that I think have huge potential to be a success.” Overall, finding businesses with a unique identity and selling point that can positively benefit operators is the centre of Waterhouse’s investment ventures. In simple terms, if a business has this, it could have the capacity to grow the number of operators it supplies to – and for Waterhouse, that is where things get interesting. He describes the whole process of picking suppliers as “political,” with a lot of “competing priorities” needing to be understood for a correct, collective decision that will boost revenue for both parties.
BEING THE BOSS
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Having been his own boss, the CEO of William Hill Australia and the current Chief Investment Officer at TomWaterhouse. com, Waterhouse is now well versed in leadership roles. To him, “business is so fun. It’s the best game in the world, isn’t it?” The joy he experiences in seeing businesses grow and working on business strategies makes hobbies like golf or football obsolete – Waterhouse finds his happiness here. As a CEO or business owner, “you don’t get to see lots of different things.” However,
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with investments, the doors for exploration are flung wide open; “You see so much different talent... You get to speak to amazing talent every day. When I was an operator, especially in start-up mode, I had the blinkers on. I wouldn’t even know what was happening in the news because I was just so focused on operationally getting through day-to-day. Now it’s like [having a] 30,000 ft view, which is a bit different, but it’s enjoyable.” Even missed deals and missed opportunities have not dampened Waterhouse’s perspective on working in investment – the opportunity to just meet these individuals is enough. Of course, being the boss of an investment firm isn’t a perfect experience – nothing ever will be. When it comes to the businesses his team invests in, Waterhouse VC does not “take any management role, any board positions, any active involvement,” which can lead to confusion and frustrations when certain business decisions are made. Decisions that, as an investor with industry experience, create the feeling of wanting to “take the reins and urge the business to “move quickly. This needs to be done.” Whether on the supply side or with operators, the need to remain passive can be a challenge. “Not every business is going to be a success, so that’s part of the learning also.” Another frustration experienced by Waterhouse is some executives’ lack of vision. Specialists, especially, are hyper-focused in their role, leaving little room for forward thinking. Conversely, executives with grand ideas for the future require a “a good team around them” to get the business from A to B. But if an executive cannot drive their team, the business will struggle.
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It’s funny, I never wanted my parents to talk about horses… Now my mum says to me, when I’m over at their house, ‘Please stop talking to your father about betting!’
CLOSING WORDS
As our interview approached its conclusion, Gambling Insider asked Waterhouse what the future held for him. His goal, simply, is to spend the next decade or so becoming a specialist in the operating side of the gambling industry. The team already possesses expertise and understanding of the industry; but for Waterhouse, it is his history with the industry that keeps him coming back. “It’s great to be in an industry that I enjoy, but also one I feel I have an edge in. I love the industry. I feel so lucky to have grown up in this industry because it’s high growth. It’s interesting... It’s been around since the beginning of time and I think people are going to be gambling and betting forever.”
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CATHY JUDD-STEIN
SERVING THE PUBLIC Massachusetts Gaming Commission Chair Cathy Judd-Stein tells Gambling Insider the story of her career: serving five different State Governors, overseeing the launch of a legalised sports betting market and leading – via Zoom – through a global pandemic Some operators might not want to hear it, but the simple truth is that no gaming sector could function without a strong regulator. Legal or illegal, gambling has taken place throughout history and will continue ever-more. It is human nature, after all. As countries around the world – along with states across the US – have discovered, the answer is to regulate the activity, endeavouring to ensure the practice is as safe and responsible as possible. It will never be a panacea. But it is the best viable option if you have a regulator that is responsive, proactive and co-operative with the industry – being firm when needed but equally open to an exchange of ideas. That’s where a good gaming regulator comes into play. And, in Massachusetts, that’s where Cathy Judd-Stein comes into play.
◆◆◆ Judd-Stein, Chair of the Massachusetts Gaming Commission, now boasts a storied background in gaming. Her career in its entirety,
To see our team members present complex matters and have to deal with our sometimes pretty thorny questions on the fly; it’s not lost on me how difficult that is – and I’m super proud of them
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however, is a blend of gaming, law and politics – a journey that began with Judd-Stein’s attendance of Dartmouth College and none other than Harvard Law School. To this day, Judd-Stein’s Dartmouth class continues to be a “really important” part of her life. So much so that there is a weekend party in New Hampshire the Saturday after Gambling Insider’s conversation with her. The “entire class is a little bit crazy” – but she adds that they’ve “been there for each other” during both times of personal hardship and professional development. As for Harvard, Judd-Stein humbly looks back hoping she “hasn’t disappointed” those who admitted her to the Law School. She recalls: “When I was accepted, I suspect many have a little bit of imposter syndrome, so I was stunned and instantly recognised that being part of Harvard’s extensive network was a huge privilege. It was an incredible experience to spend three years there with the benefit of brilliant peers and really great professors; professors who were very empathetic. I didn’t expect it, but I just have really warm feelings from my law school classes – not in accordance with the movies!” Indeed, Judd-Stein is able to draw on one particular stereotypedefying example that resonated with her. One might immediately assume a Harvard professor would be more demanding than empathetic – and there were naturally demanding elements of attending Harvard Law School. For instance, students had to be prepared to answer a professor in a lecture hall on cue if called upon; there were no do-overs. But, during a particularly sensitive and important class, Judd-Stein’s professor gave her and some fellow students a “heads up” in advance. The class addressed the subject of rape, the first time ever this had been taught at a law school – back in the 1980s – meaning it would receive coverage in the news (not your ordinary university seminar). As such, Judd-Stein’s professor ensured her and her fellow students were not caught off guard. That professor was “very highly regarded” and, in JuddStein’s opinion, showed a willingness to break barriers and push limits through her students.
LIFE BEFORE GAMING: THE GOVERNOR’S OFFICE
As the Chair of the Massachusetts Gaming Commission, Judd-Stein’s role within the gambling industry today is clear
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for all to see. Starting out, though, her gaming experience was initially limited to her French-Canadian grandmother inviting her to play the occasional game of bingo! Judd-Stein does not even recall playing the lottery, so at this point, a career in gaming remained very much a distant prospect. After law school, her first move was to take up a “fantastic clerkship” that led her to a large law firm in the real estate sector – carrying out “very complex development deals.” “I love that transactional work,” Judd-Stein states. “I like the tangible outcomes.”
Judd-Stein also undertook additional pro bono work (work without payment), which ultimately led to another private law firm. It was here that a chance cocktail party meeting determined the most significant step of Judd-Stein’s career to date. “The Chief Legal Counsel to then Governor Paul Celucci here in Massachusetts was at a cocktail party and he ran into a mentor of mine,” she explains. “They said, ‘I’m looking for a lawyer in the Governor’s legal office. Somebody who has varied experience and is mature’ – whatever that meant at the time. But my mentor thought of me, and
We all said our prayers when we had to conduct our first public virtual meeting, which was when we actually had to shut down operations. And ever since then, we have been reading boxes, conducting our meetings publicly and streaming them publicly
now I’m forever grateful for whatever they were drinking at that cocktail party that led to me being hired in 2000!” Working at the Governor’s legal office was and is “really a gift” for a lawyer. Covering an “array of subject matters,” Judd-Stein encountered numerous issues of “real interest” to her, as well as becoming acquainted with the Massachusetts State Constitution. Her role covered subjects ranging from transportation to health, to human services and education. She then became Governor Celucci’s ethics advisor “by default.” Here, she was able to “add value in a unique way.” Even if that value wasn’t commercial, expertise was developed that aided government officials and state employees – leading to Judd-Stein being kept on and, ultimately, serving several different governors within the state. Succeeding Cellucci were Governor Jane Swift, Governor Mitt Romney and Governor Deval Patrick, the latter of which Judd-Stein served as both his Deputy Legal Counsel and Judicial Nominating Commission Executive Director. After this eight-year period, Judd-Stein decided to leave the Governor’s office. She served for a time within the state’s highest court then was asked to join the Massachusetts State Lottery. This is where gaming would become prominent within her career for the first time (although most certainly not the last).
IN IT TO WIN IT: THE STATE LOTTERY
It was the month of May 2011 that saw Judd-Stein appointed Assistant Executive Director, and Director of Policy and Special Counsel, at the Massachusetts State Lottery Commission. She joined just as the Bay State’s expanded gaming law was passed, with State Treasurer Steven Grossman and Executive Director Paul Sternberg asking Judd-Stein to help the Commission develop its licensing process for casinos. Indeed, the expanded gaming law prioritised the Massachusetts State Lottery – under the purview of the State Treasurer – and the state wanted to avoid the cannibalisation of lottery through casino play. On top of that, Judd-Stein was involved in starting Treasurer Grossman’s taskforce on iLottery – a topic still pertinent today. Currently, Massachusetts State Treasurer Deborah Goldberg is still seeking the legalisation of iLottery, which leads on from the initiation of that very taskforce. Back then, Treasurer Grossman did not take a stance on the matter, but wanted the research conducted even though he did not eventually pursue it. Either way, the ball was now rolling and that process continues today.
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CATHY JUDD-STEIN
As for Judd-Stein herself, it is no longer an issue she deals with as a member of the State Lottery Commission, rather now as the Chair of the Massachusetts Gaming Commission. There was, of course, the small matter of six years between those two roles, as she spent over a year as General Counsel for the Treasury – and was then “really lucky” to spend four years as the Deputy Chief Legal Counsel for Governor Charlie Baker, the fifth governor Judd-Stein would serve under. It was Baker who then approached her about joining the Gaming Commission, cementing her firmly within the world of gambling once more. A “common thread” that weaved through her career, according to Judd-Stein, was
that she worked for Governors who valued “integrity, transparency and fidelity to the law.” These aspects are “critical” to any regulatory role, in Judd-Stein’s view, preparing her for the role of Chair, where she is pleased to have played her part in important decisions that impact both public and private issues. As Chair, she is also buoyed by the belief that the expansion of gaming has generated benefits for the Massachusetts Commonwealth. This equally applies to the legalisation of sports betting in August 2022 (before launch in January 2023 and mobile gaming following in March 2023). It is inevitable that gaming brings revenue as an economic driver, but Judd-Stein does not believe this to
A good cup of coffee, some dark chocolate and a conversation with my dog also keep me in the game
be the priority for legislators. She adds: “I like to think the Gaming Commission’s allegiance is really with things like consumer protections, strong advertising regulations, the enforcement of internal controls and regulation that you need to preserve and enhance integrity.”
DIVERSITY, EQUALITY AND INCLUSION
In the Chair’s eyes, Massachusetts is at the “forefront of the responsible gaming conversation” and Judd-Stein loves the influence she has on the state’s licensees on this front. She tells Gambling Insider: “To be clear, we’re really lucky to have very cooperative licensees, but I have to say perhaps the most rewarding and unexpected benefit in terms of our sports wagering licences hit recently. Massachusetts asks a lot of our licensees. We are a very active group of regulators. We are innovative in our application process and we prioritise consumer protection and advertising. But we are also working with intentionality around diversity, equity and inclusion (DEI) – which are very important in Massachusetts, and in our nationwide dialogue.” Judd-Stein is impressed with how each licensee within the Bay State has “stepped up to the plate,” developing DEI benchmarks they didn’t previously have. Giving a particular “shout out,” Judd-Stein cites the Boston Globe’s announcement that DraftKings was named one of Massachusetts’ top 10 large employers – but also that it was designated as a 2023 DEI Champion. “I’d like to think we might have pushed that needle a little bit,” she reflects. “So I would say as much as I’m very interested in making sure the gaming industry in Massachusetts has a sustained model of integrity and offers all the consumer protections, it’s those unexpected benefits of this job that I’m really enjoying.”
ZOOMING IN
Judd-Stein began her role as Chair of the Gaming Commission in February 2019. Some quick arithmetic tells you that gave her roughly 12 months before the Covid-19 pandemic began to permeate lives across the globe. For billions, this not just disrupted but transformed company practices on a temporary basis; but for Judd-Stein and the Commission, the Zoom culture that was thrust upon them has actually remained a permanent feature of Massachusetts life. “It was an interesting development and we were lucky that we were able to anticipate a pandemic from the CEOs coming out of Las Vegas – who were already looking at Asia,” she looks back.“We’re required to do all of our
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meetings in public and we were doing them all in person, so we anticipated that something was going to have to shift. I did get in touch with the Governor’s office saying we might need to have some relief here to conduct our business virtually. Apparently there was one other big public body – bigger in terms of number of employees and scope of business – that also approached Governor Baker and, under an emergency procedure, he issued an executive order that gave us that relief to start doing virtual meetings.” “Our IT team immediately got us organized and we all needed some training,” the Chair continues.“We all said our prayers when we had to conduct our first public virtual meeting, which was when we actually had to shut down operations. And ever since then, we have been reading boxes, conducting our meetings publicly and streaming them publicly. We’re committed to transparency by law. The law requires us to make sure the public has access to our agenda and our meetings. We record everything and, since Covid we have conducted pretty much every meeting in public, with a few exceptions. We were just out in Springfield and we had an in-person meeting that also had some virtual capacity; and we conducted one
roundtable while standing up sports wagering at the statehouse, to understand the landscape of interest that was conducted in person. That was very effective.” As Judd-Stein rightly points out, our own conversation is taking place across Zoom and the online platform allows for a greater overall level of participation at the Commission’s meetings. The obvious advantages extend to attendees who might otherwise be engaged, with Judd-Stein explaining that it allowed the participation of so many different parties, from responsible gaming researchers to representatives from the MLB Players Association. They used to join via phone – but it was less effective. Commissioners now have increased flexibility and, while an in-person capacity is being worked on, the virtual element has been “highly efficient and super participatory.”
SEEING STAFF SHINE
When Gambling Insider tells Judd-Stein we have attended a fair few of those virtual meetings ourselves, and can therefore vouch for their 100% public transparency and availability, Judd-Stein quips: “I’m so sorry!” While she reemphasises the desire to do more in person, the Chair is also pleased the occasional animal guest – such
as Mango the cat – helps add a fun side to the meetings. Yet, on a more serious note, these meetings also present a fantastic opportunity for the Massachusetts Gaming Commission’s younger members of staff, whether virtual or in person. In fact, this leads us to Judd-Stein’s “favourite thing about being Chair.” “It’s when I am conducting a public meeting or working with members of staff, and see our younger employees and newer team members shine,” she beams.“We have a great team. They have really good mentors and superiors. We have an opportunity for growth in the organisation and I’ve witnessed it. I’ve worked with some of those younger or newer employees, and now they’ve got big roles. I like seeing that and I forget – because us Commissioners are so used to appearing in these virtual meetings that I have to just forget they’re public; and that they may be attended by members of the press, et cetera. To see our team members present complex matters and have to deal with our sometimes pretty thorny questions on the fly; it’s not lost on me how difficult that is – and I’m super proud of them.” However, an issue that constantly challenges Judd-Stein – and any gaming regulator for that matter – is how to combat the black market. Regulators cannot physically stop illegal, unregulated operators, meaning the best Judd-Stein, the Commission and others can manage is to partner with law enforcement officials, and “really encourage how best the tactics we use can shut those businesses down.” But it is not easy. The Chair is keen to emphasise that, particularly within sports wagering, the Commission has been organised, wellcoordinated and, importantly, flexible. Something she has said to Gambling Insider on more than one occasion is that a regulator must stay nimble. Again, this is not easy.
REGULATION AND COOPERATION
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In fact, ensuring your regulations actually work in practice – not just on paper – is one of the hardest things about being a regulator, according to Judd-Stein. Due to the inherent culture of Massachusetts as a state, “a lot” is expected of its licensees. There is a desire to be fair, but it is matched by a statewide desire to be “rigorous.” The Chair feels like licensees are asked to “jump through hoops” – but her “biggest frustration” does not come from their reluctance to do so. Indeed, Judd-Stein’s frustration stems from the fact they are all doing what is asked of them – “and they’re doing it well.” But that only encumbers the DraftKings, FanDuels and MGMs of the world – the operators actively taking part
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in the regulated market – when unregulated and unlicensed entities do not follow the same rules. “It’s an unequal playing ground,” Judd-Stein remarks. “It’s an issue that frustrates me, but we’re working on it.” From frustration to “guilt,” Gambling Insider is surprised to hear the ever-positive Judd-Stein list a second consecutive negative emotion. But her reasoning is true to her gracious self as she explains why: “I feel guilty sometimes because I know that, with Massachusetts being in the more nascent entry point for expanded gaming and sports wagering, I, my fellow commissioners and all of our staff members, have relied on the expertise and the generosity of other regulators. That level of collaboration and cooperation is absolutely vital for us to be successful.” Occasionally, the Chair says, the Massachusetts Gaming Commission is able to give back, but she acknowledges the body is more of a receiver than a giver in this area. But this requirement for collaboration extends beyond just regulator-to-regulator relations, too. Judd-Stein explains: “It is key not only among us regulators, but even between licensees and regulators. Because I think we’re all trying to make sure the industry is safe for patrons and for employees. It reminds me how young America is when I go to Europe. When I’m in a room full of regulators, like I was at the Regulating the Game conference recently in London, I am reminded about how new we are to this industry and how grateful we are for everybody’s generosity.”
BEYOND THE BOARDROOM
The culmination of all this cooperation, and the Commission and Judd-Stein’s work in Massachusetts, has been the creation of a market that generated $143m in total gaming revenue for November 2023. In total, $48.9m of this figure came from sports betting, while all-sources revenue accumulated a total $36.1m in monthly tax revenue. After legalisation, Massachusetts’ sports wagering sector took just six months to launch. To meet that timeframe, the Commission “learned all perspectives,” convened around 150 public meetings and worked “incredibly hard” to form a sector with “the strongest of consumer protections” while, at the same time, being “grounded in integrity.” There is life beyond legal duties for the Chair, though, as she admits “the outside world is a lot more fun than some of our meetings!” Judd-Stein feels she is “really fortunate” to have been able to navigate her work-life balance. Wise words from a mentor once helped create a sense of perspective. “She once saw me working hard at my job
and also raising three kids close in age,” JuddStein explains. “She said to me: ‘If you allow your family to be your priority, you’ll always make great choices around your career.’ I’d say, given the career path I’ve had, it’s been so varied that it’s worked out. But anybody who knows me really well knows that it’s my husband, my three adult kids, my two perfect toddler grandsons, and all my friends who I look to for support; and to inform me about my choices and priorities.” Outside of the ‘day job,’ Judd-Stein sits on certain nonprofit boards that focus on education, particularly within the sphere of secondary education. As she demonstrated earlier in the interview, she is “very committed” to working on gender equality issues. This extends to the delivery of healthcare, ensuring both women and men are treated alike. Family and “the little
things in life” give Judd-Stein the kind of balance in her personal life she is constantly striving for within Massachusetts’ gambling landscape. But, while those most important to Judd-Stein help keep her balanced, she adds that “a good cup of coffee, some dark chocolate and a conversation with my dog, Mojo, also keep me in the game.” The Chair is “lucky enough to still embrace the outdoors” through skiing, hiking and even paddleboarding, kayaking and water skiing. “That’s where I flourish,” she smiles. Although, after a career serving five different Governors and contributing her fair share to US gaming, it’s fair to say Judd-Stein has also flourished on her legal and regulatory journey. Humbly, however, she will no doubt credit the role of the team and staff around her for any success to come.
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HUBERT WANG
THE PERFECT STORM MGM China President & COO Hubert Wang speaks with Gambling Insider about moving to America, the struggles of running a business through Covid-19 and what it means to be a good, well-rounded leader in the gaming market It was never Hubert Wang’s intention to enter the gaming industry, he tells Gambling Insider. “Just like many things in life, it was by chance that I entered the industry.” At the time, the internet was new. The 1990s called for the thorough reading of classified newspaper ads and dropping resumes to job postings. Stumbling upon Caesars (at the time, Harrah’s) which offered “the right job opening at the right time,” Wang found he was just the man for the job. “The rest is history, as they say.”
◆◆◆ MGM President and COO Wang stands today as a gaming industry stalwart – holding one of the most important positions within Macau’s casino industry. And yet it was a move to America that truly set him on the path to where he is today. Wang recalls: “When I finished my undergraduate study from college, I worked in Shanghai for a while. China was going through rapid economic expansion and social changes in the ‘80s and ‘90s thanks to its open-door policy. But I believe
I always remind myself never to overestimate my own capabilities, nor to underestimate the role that luck played in my career
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going to America presented me with a totally new set of career opportunities that were very different from the ones that I would have had, had I opted to stay in China. Looking back at my career path, I enjoyed all the things that I did or was a part of. I really appreciated all the opportunities presented to me.”
COMING TO AMERICA
In the 1990s, Macau’s gaming market was influenced by expanding recognition and interest in American culture, which too was impactful for Wang when he first moved to the US. Globalisation and the influx of American media into China made America the trending new place to visit for Chinese students, and young people wanting to explore the world and study internationally. Wang was one of them. “Personally, there was definitely an initial shock.” he admits when describing his initial experience in the States. “For a while, I had to adapt myself to a very different cultural environment and a very different social system. I had my fair share of struggles along the way in interacting with people, not so much with the language, but rather with the culture and the customs.” Wang made friends along the way, people who showed him the ropes and made adapting to a new environment easier. Still, in Wang’s eyes: “had there been no adversities, I would’ve never been the person I could be.” Wang first entered the gaming market after being hired by Harrah’s over 25 years ago. “It was a growth period of the riverboat markets in the US, with new jurisdictions popping up in many states. During the same period, there were a lot of new project undertakings on Indian reservation land throughout the country. I did a lot of investment analyses on projects and gave recommendations to the company’s top leadership, to which sometimes they listened and sometimes they disagreed!” During his time with the company, Wang was able to progress to property-level CFO. The role was one that gave Wang “excellent experience in developing my leadership skills in managing big teams with a large number of people.” Although he admits working at a property level was different to working in a corporate office due to the change in priorities and focuses of day-to-day operations. From here, Wang went on to work as Corporate VP of
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Planning and Analysis for Las Vegas Sands before arriving in Macau. It was for this ability to experience both markets that Wang has expressed particular gratitude: “My experience in the US also afforded me the opportunity to participate in Macau’s economic expansion and transformation over the past two decades. In a way, I think I got the best of both worlds – US as well as China (through Macau).” Overall, Wang describes the skills he gained from his time in the US as “critical for business success as well as career success.” Working in various financial positions, he “learned to use analytical approach in framing and solving problems” as well as skills in data gathering and data analysis. Despite all this, Wang does not chalk his success up entirely to skill – he also thanks his timing and good luck (luck is always good in gambling...).
THE PERFECT STORM
Being in the US and China – and being there during the period he was – created the perfect storm to propel Wang’s career. In his own words: “I was fortunate in several aspects.” The first was the aforementioned growth of riverboat gaming in the US, as well as the development of large-scale luxury casino resorts. These new ventures created jobs. A lot of jobs. That also meant it required more people to manage them. Secondly, his work at Harrah’s gave Wang opportunities to mingle with the big boys, C-suite execs and board members, all at an early stage in his career. Meeting with CEOs and CFOs to discuss revenue forecasts put Wang front of mind when
When I walked around the property, people greeted me, but they were also looking for assurance. They wanted to know what their future would hold
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senior leadership were recruiting for new roles. Off the back of this was Wang’s third point, in that he had: “Bosses who were genuinely interested in making me successful.” This, combined with his own work ethic, allowed the stars to align and create steady progress for Wang throughout his career. Yet, despite all this: “I always remind myself never to overestimate my own capabilities, nor to underestimate the role that luck played in my career.” As part of his time in the US working with Las Vegas Sands, Wang participated in the establishment of the Venetian Macau and Marina Bay Sands in Singapore as part of the pre-opening team. “The job at Sands allowed me to get very familiar with Asia’s top gaming markets and their dynamics. That experience also helped me in my later decision to join MGM China and to move to Macau.”
MGM CHINA TAKES OFF
Wang came to MGM China in 2011 as CFO, taking on additional responsibilities as the years went on before being appointed as President in 2019, and President and COO in 2020. Even before settling into the role, his experience at Las Vegas Sands gave him a familiarity with the inner workings of gaming in Macau, allowing him to hit the ground running in the managerial positions he entered with MGM China. “It has been a unique and rewarding journey marked by many milestones and several business cycles,” he tells Gambling Insider. “The key milestones at MGM China that I was part of included the company’s IPO in 2011, the expansion of MGM Macau in 2012, the opening of MGM Cotai in
The Grande Praça at MGM Macau
2018 and the 10-year new concession awarded at the end of 2022. “They were important time points throughout the growth of the company as well as my own career.” In his current position as President and COO, Wang describes one of his favourite aspects of the job as being the characters he has the opportunity to meet. “I can meet a lot of interesting people, including very successful businesspeople, celebrities, community leaders, politicians, diplomats etc. In talking to them, I can really broaden my own knowledge and thought horizon.” Despite the glitz and glamour of gaming, there have been notable challenges along the way Wang has learned to work with during his tenure as President. Talent acquisition and retention across sales, marketing, project management and operation have presented a challenge in Wang’s view, although this challenge paled in comparison with another huge hurdle: the global Covid-19 pandemic. “A lot of expatriates left Macau during Covid. Particularly now with all the diversification projects committed under the new concession agreement, the city doesn’t have enough talent to manage and operate the projects.”
THE NEED FOR RESILIENCE
With a career in gaming spanning over 25 years, Wang has been a first-hand witness to the growths and declines of the market. He has seen struggles brought upon the market by everything from financial collapses to global pandemics, and has seen the market bounce back time and time again. “I have witnessed several business cycles with significant
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corrections,” he explained. “The first one was the subprime crisis in 2007 and 2008. I was still with Las Vegas Sands at that time but spent a lot of time in Asia working on the pre-openings of Venetian Macau and Marina Bay Sands in Singapore. And Venetian Macau opened right at that difficult time. The second correction started in summer
2015, mainly because of liquidity drying up on the junket side of the business. These two corrections each lasted for one to two years. Then came the Covid-19 induced correction for three years.” As President in 2019 and President and COO in 2020, Wang was put into a position that had yet to be experienced in
My experience in the US also afforded me the opportunity to participate in Macau’s economic expansion and transformation over the past two decades. In a way, I think I got the best of both worlds
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the modern age: guiding a major Integrated Resort company through a global pandemic. “In challenging and tough times, we often say we need to get prepared for the worst-case scenario. But what if the worst is worse than you ever expected and is getting even worse day after day?” This was the stark reality that faced Macau businesses during Covid-19. The initial belief that the pandemic would only be a short-term disturbance, not unlike the SARS outbreak in the early 2000s, quickly diminished, with further reports coming in of outbreaks, lockdowns and rising death counts. China, more than other countries, was impacted particularly harshly by Covid-19. For businesses across the globe, the pandemic meant reduced income and thus reduced capacity to keep and pay staff. “It was really about survival. You cut back all you could other than the absolute necessities to make the cash on hand last as long as possible. “We had around 10,000 employees right before Covid. We had to release some with severance and asked the remaining employees either to take no pay leave or to reduce their work hours. Understanding the situation, almost all team members cooperated. But, when you had no customers inside the property, you could feel the anxiety in the air.” Wang described the feeling of walking around near-empty MGM China properties, greeted by those seeking assurance from a C-Suite company member, assuring staff not only of their jobs but of the industry as a whole. “When I walked around the property, people greeted me, but they were also looking for assurance. They wanted to know what their future would hold. I always looked into their eyes with a smile to let people see my hope and confidence were alive. It goes without saying that throughout Covid, the communication with and the support from the Board, the Government, the community and the banks were of paramount importance, as all stakeholders are in this together. It reminds me of a quote by Winston Churchill, ‘if you’re going through hell, keep going.’ Indeed, keep the faith that the darkest hour is just before the dawn.” Despite the conditions thrust upon the market by Covid-19, gaming in Macau has been able to bounce back, with the market today close to returning to pre-pandemic levels. As of reports from December 2023, accumulated gross revenue in Macau across gaming operations for the full year was up 334% year-on-year, for a total of MOP$183.1bn (US$22.8bn). “The market has been very resilient,” says Wang, reflecting on not only the Covid-19 era but his career as a whole.
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HUBERT WANG
“In the past 15 years, roughly 1/3 of the time was in the down cycle. But 2/3 or majority of the time, the market was on the upswing. And even more importantly, the underlying business structure shifted.” According to Wang, the market shift away from being VIP-driven and junket dominant, to mass-segment driven, has made for a more sustainable Macau market. This shift, combined with the experiences Wang underwent during the Covid-19 pandemic, has made this business cycle invaluable for Wang and is something he also discussed in a Huddle interview last year. “It’s fair to say I learned how to be an effective leader more in the trough than at the peak of the business cycles.”
WHAT’S NEXT FOR MACAU?
Macau’s resilience gives Wang enthusiasm
for its future prospects. “The demand for casino gaming entertainment is not going to diminish. On the contrary, with more comprehensive diversified nongaming offerings, Macau will become more attractive than ever as a leisure destination. Gaming revenues will likely continue to grow as a result of the simple function between supply and demand.” Wang is also a firm believer in Macau’s need to diversify, rather than embrace the high gaming concentration it has seen. Indeed, he expresses confidence in Macau’s desire to diversify its offerings. As markets grow, diversification in products is natural and a necessity to sweep up additional market share, though Wang also expressed the importance of not placing all your eggs in one basket. After all, according to Wang: “certitude doesn’t mean certainty,” and having been
A lot of expatriates left Macau during Covid. Particularly now with all the diversification projects committed under the new concession agreement, the city doesn’t have enough talent to manage and operate the projects
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at the company a little over a decade, there is still room for unexpected change. “In the end, time and consumers will be the judges to tell the market viability of various diversification efforts. Ten years is not a long period of time. There will be certainly progress made towards greater diversification, but to what extent is hard to predict. Not every project will be successful. Some will fail.”
BEING THE BOSS
Keeping a gaming company afloat throughout Covid-19 was challenging enough, especially when considering the level of land-based revenue generated by MGM China. Doing so requires specific skills that Wang has shown a capacity to deliver. But can this be said of other executives? In his previous Huddle, Wang discussed the topic of listening to colleagues and taking time with key decision-making. When Gambling Insider asks if this is something he has seen applied effectively in the industry or not, Wang knowingly points out that, for the most part, executives will have attended business schools or participated in executive training or coach programs to learn “the dos and don’ts in making business decisions.” In Wang’s eyes, most executives understand the theory behind business and try to apply what they have learned to business scenarios. Retreats among key execs and brainstorming sessions provide spaces in which decisions can be discussed openly and communally, looking for “the wisdom from the crowd.” Yet, in practice rather than just theory, there are still many hurdles that can befall a C-Suite executive. Egotism, narcissism and a distaste for those with opposing views can affect a person when put in a position of authority. “Ironically, very often success can breed a sense of invincibility and overconfidence. One becomes fond of hearing his or her own voice.” An elevated ego combined with business authority can result in a company’s decision quality going into decline when only one voice can be heard. For Wang, therefore, it is crucial to avoid these behaviours. “I believe humility and humbleness can go a long way in helping business leaders improve their own odds of continued success. Being humble and level-headed in your decision making means learning from others.” For Wang, his inspiration was found in Charlie Munger, the investment and business partner of Warren Buffet who passed in late November 2023 at the age of 99. Munger’s talks and books provided wisdom that made him a “better thinker
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CEO SPECIAL
and more effective executive.” “He was a wise person with first-class business and investment acumen based on common sense, vicarious learning, reverse thinking and mental models across multiple disciplines. I learned a lot from his way of looking at things,” Wang comments. One example of Munger’s teachings Wang draws from is the importance of convenience. To humans, convenience is a survival need – a way to conserve energy. When analysing this teaching, the reality for Wang was clear: “Yes, smiles and greetings are nice. But will that alone assure you of returning customers? It won’t.” From this, Wang emphasises the importance that comes with catering to your customers, giving them what they ask for in a way that is simple and efficient even if this means a solution is less convenient on the business end. “In operations, there are hundreds if not thousands of things we can do to make it convenient for customers. This is a continuous improvement process, and no improvement is too small to make. In our industry, the time customers save due to good service at their fingertips will instead be spent most likely on enjoying our products. The better the customer experience, the more time they will and can spend with us and the higher revenue the business can receive in return. It is just as simple as that.”
A FINAL WORD
Wrapping up our conversation with Wang, Gambling Insider looks ahead, asking what the future holds for MGM China – and what Wang’s goals are moving forward. For stakeholders, the goal is to create value and return the company to profitability. While the market is mostly out of the woods in terms of the impact of Covid-19, its impact still lingers. Moreover, losses from this period will need to be recouped and the balance sheet must be re-strengthened. However, this is not the only demographic Wang intends to benefit in the future. “For the Macau Government and community, it’s about fulfilling the commitments of diversification and adapting to new market trends and demand along the way.” Finally for the staff of MGM China, Wang hopes to create more internal career development opportunities. To do so among local staff, forming new business leaders, will allow MGM China to thrive in Wang’s opinion. This will also help with the prior issue of talent shortage, setting MGM China and the Macau gaming market as a whole up for continued and stable growth. And stable growth is just what the doctor ordered, given Wang knows firsthand just how many peaks and troughs gaming can endure.
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PAYMENTS
SIMPLIFYING PAYMENTS CCO of Freemarket, Ronnie d’Arienzo, speaks to Gambling Insider about Freemarket’s cross-border payments solutions and the face-to-face service the company offers preventing fraud is when victims believe they are making a genuine payment such as an investment. Fraudsters may contact victims by phone, email or social media, pretending to be someone else. Such fraud typologies are known as APP (Authorised Push Payment). In October, you received a licence from the Central Bank of Ireland. What potential does that bring for Freemarket? Receiving the Payment Institution licence from the Central Bank of Ireland is a game-changer for Freemarket. This regulatory green light opens doors to the entire European Economic Area (EEA), home to around 24.4 million small to mid-size businesses (SMBs). As the global B2B cross-border payment market is poised to grow 43% by 2030, we’re eager to cater to European SMBs underserved by traditional banks. The licence not only allows us to expand operations in Ireland, but also sets the stage for partnerships with European financial institutions, supporting our mission to make cross-border payments faster, more affordable and transparent for millions of European businesses.
Ronnie d'Arienzo Following on from your interview in Gaming America, can you elaborate on the work you do with the gambling industry? Freemarket exists to help those businesses that either struggle to get access to the banking and payment services they need, or are paying too much for an inferior service. Historically, gaming has been seen as too high risk for institutional banks to focus on. It’s inevitable that risk appetites in banks will change, which is why our resilient solution resonates so well in this space. We take a partnership approach with all our stakeholders. These include customers, global banks and service providers. Our goal is to provide the best service and solution possible for the benefit of all parties. What difficulties has Freemarket faced in the payments industry when it comes to fraud prevention? One challenge all payments firms face with
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Can you talk to us more about the technology Freemarket uses? At Freemarket, our technology approach revolves around integrating all banking relationships and products directly into our proprietary platform. This means our clients don’t need multiple bank accounts; they can access everything through us. Since we’ve developed everything in-house, we’re agile in responding to client feedback and market demands, allowing us to make changes quicker than competitors who outsource. Clients can choose to integrate directly with our API for extensive functionality or use our user-friendly platform for quick transactions. With just two or three clicks, our platform streamlines international payments, eliminating the hassle of navigating multiple screens and banking relationships. Has Freemarket faced any barriers when it comes to its cross-borders payment systems? Partnering with banks for cross-border payments poses complexities as it involves establishing resilient connections. This
process demands thorough due diligence to ensure reliability, security and seamless transactions for our clients - our approach is about simplifying, not complicating. In the fast-paced evolution of the cross-border payments landscape, staying ahead is key. Trends like real-time pricing and distributed ledger technology aren’t just buzzwords for us; they’re tools that enhance efficiency, speed and cost-effectiveness. This proactive approach ensures that our clients benefit from cutting-edge solutions, positioning them at the forefront of innovation and meeting the dynamic needs of the global business environment. How does Freemarket distinguish itself from other competitors who offer a similar service? It’s our personalised service and tailored approach to individual client needs that sets us apart from the crowd. In a digital era, we prioritise face-to-face interactions to foster genuine relationships and gain valuable insights on a deeper level. Spending time with them means we can understand their specific requirements and what’s going to help them grow in their industry. A great example of this commitment is when we flew from London to Sydney to address a client’s issue – it’s while here that we heard they had never even met their local provider face-to-face. Unlike one-size-fits-all solutions, our platform is continuously evolved by our skilled tech team to adapt to their needs. What role does crypto play at Freemarket and in the wider cross-borders payments industry? Crypto is one of the key sectors we serve at Freemarket, where we provide the fiat payment rails for crypto businesses, giving them much needed-banking resilience via our aggregated banking network. In the wider cross-border payments industry, it’s the underlying blockchain technology underpinning crypto where we’re seeing the biggest use cases emerge. Stablecoins are becoming more prevalent due to their speed, cost and traceability compared to the traditional correspondent banking system; and we expect this trend to continue as they become more deeply integrated into the international payments ecosystem.
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ROUNDTABLE
IS LATAM THE MOST APPEALING MARKET? Industry experts answer Gambling Insider’s burning questions on all things related to the LatAm market, including DS Virtual Gaming, WA. Technology, Betby, Galaxsys, Game of Slots and Paybrokers
ARAKSI SARGSYAN Head of Business Development DS Virtual Gaming
TIM SCOFFHAM CEO WA.Technology
ARAKSI has a vast array of industry experience having worked at both BetConstruct and Digitain. She has also worked outside of B2B to develop a B2C project in Kazakhstan and since 2020 has been the Head of Business Development at DS Virtual Gaming.
SCOFFHAM is a Founding Partner and CEO of WA.Technology, a B2B iGaming solutions provider offering the fully scalable and customisable iGaming WA.Platform, bespoke turnkey solutions, standalone products, and expert-managed services across its WA.Casino, WA.Sports, WA.Fantasy, WA.Lottery, and WA.Poker verticals.
ED DE HAAS CEO Game of Slots
DE HAAS currently serves as the CEO of Game of Slots. With a background in software development, he has co-founded multiple startups.
EDSON LENZI CEO Paybrokers
CHRIS NIKOLOPOULOS Chief Commercial Officer Betby
GIL SOFFER SVP Sales and Business Development Galaxsys
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NIKOLOPOULOS serves as Betby’s Chief Commercial Officer, playing a pivotal role in bolstering the company’s expanding global footprint through its operator-centric sports betting solutions. Prior to his tenure at Betby, he held leading commercial positions at EveryMatrix, Playson and Altenar.
SOFFER is the SVP Sales and Business Development of Galaxsys, which was founded in 2021, and is a leading provider of fast and skill games.
Lawyer by profession, LENZI has advised companies in various sectors such as construction and health, providing them business and tax solutions. In the early 2000s, he began to consultatively assist international companies focused on the gaming market. After years of experience in this industry, he built a solid knowledge base and network, enabling him to found PayBrokers, a company that provides payment solutions for international businesses operating in the gaming sector, with a focus on Brazilian users. Currently, PayBrokers holds a significant share of the private payment market in Brazil and is expanding its operations to state-level bidding processes.
ROUNDTABLE
CHRISNIKOLOPOULOS:
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ARAKSI SARGSYAN:
EDSON LENZI:
GIL SOFFER:
DOES BRAZIL’S CERTIFICATION PROCESS MAKE IT EASIER FOR SUPPLIERS TO ACCESS MORE OPPORTUNITIES IN THE REGION?
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CHRIS ED DE HAAS:
GIL SOFFER: HOW IMPORTANT IS THE LATAM MARKET FOR SUPPLIERS DUE TO ITS OBSESSION WITH FOOTBALL, WHICH MAY TRANSLATE INTO MORE GAMBLING IN A VARIETY OF DIFFERENT WAYS?
TIM ARAKSI SARGSYAN:
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ROUNDTABLE
CHRIS NIKOLOPOULOS:
EDSON LENZI:
DOES THE SHEER SIZE OF THE MARKET IN LATAM MAKE IT A MORE ATTRACTIVE AREA TO EXPLORE?
ARAKSI SARGSYAN:
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TIM
CHRIS NIKOLOPOULOS:
ARAKSI SARGSYAN:
WHICH COUNTRY OR JURISDICTION IS MOST COST-EFFECTIVE IN LATAM FOR YOU AND WHY?
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COMPLIANCE
STAYING COMPLIANT Gambling Insider regular Paul Sculpher talks to Betsmart Consulting Founder and CEO Kirsty Caldwell, about how the company helps operators stay compliant with the demands of the industry in early 2021. We now have 10 individuals working in various roles within the company with a varying workload.
Kirsty Caldwell What prompted you to move from the employed world to running your own business, Kirsty? I’d been in betting and gaming my whole career, starting as a Customer Service Advisor for William Hill – that was quite an education! I stayed with them through to becoming their Head of (online) Compliance and saw the overarching compliance function grow from two to over 70. After over 12 years with William Hill, I was headhunted to work at a well-funded startup company, in which we set up the compliance framework from scratch. That was a great role and I learned a lot about building a business. During that time, I was getting more and more contact from recruiters, and it felt like there were going to be opportunities to use the experience I’d gained more productively than just being employed. And Betsmart Consulting was born! It must have been difficult in the beginning, with little to no experience of running a business? I know I found it tough in the early days. Yes, starting in 2019 just before Covid-19, there were certainly challenges, although as I’d hoped, there was plenty of work coming in to make the cash flow element a little less scary. I tended to start with longer-term projects, which brought some stability. It wasn’t long before it was obviously time to expand, and I brought on my first team member
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Entrepreneur to entrepreneur, that’s a pretty amazing growth curve, where is all the business coming from? I think betting and gaming compliance is a perfect example of an area where ‘what you know’ can be particularly valuable. There are a huge number of operators out there across online betting and gaming, casinos, bingo, arcades and so on, and they have enough challenges in their day-to-day business without having to keep on top of a dynamic regulatory landscape. We can offer them the ability to get up to date via anything from a short training refresher to a full audit, a customer compliance journey overhaul, or full-time resource cover for senior compliance roles. Using our services can be more cost effective and less of a commitment than having to beef up a compliance team with full timers, as well as the added bonus of having expert, independent oversight of the internal compliance framework. We also do a lot of work with ‘RegTech’ providers, helping them develop products to support the gambling industry with things like risk management and player protection. One thing I saw was your Prepsmart Licensing product. What’s that about ? We’ve found that in some cases, local licensing authorities need support as well. Licensing Officers have to deal with a tonne of different areas, from Taxi Licencing to Dangerous Animal Licensing and everything in between, so expecting them to be bang up to date on a moving target like the LCCP is asking a lot. We can help them stay current with just what they need to know, as well as provide support through drafting of gambling policy and training of council members. It does feel like a win/win, helping operators to stay compliant and helping their local authority make sure they’re scrutinising the right things. Given that the fundamental objective for everyone is to keep people safe, the more easily operators and authorities can be in the know, the better the end result for everyone.
On the operational side, presumably you’re able to help operators before it all starts to go wrong, right? The Compliance equivalent of planned preventative maintenance? Absolutely, we call it Prepsmart Evaluation. Prepsmart Evaluation was the first set of packages services we developed and remains our most popular offering. Essentially mirroring a regulatory assessment, it is designed to help operators prepare for those very formal and challenging sessions, as well as being used by many of our clients on a six monthly or annual basis to assess the practical implementation of their policies and procedures. Having so much personal experience of working as an in-house Head of Compliance, I know all too well how hard it can be to really ‘see the wood from the trees’ in terms of ongoing process effectiveness and implementation accuracy and so having the outside view from people who are conducting these type of reviews with different operators on an almost weekly basis is invaluable. Betsmart Consulting look to be a company in the right place at the right time, and it’s clear from meeting Kirsty that she’s passionate about the industry and knows the field. Personally, I’m always happy to see bootstrapped entrepreneurs make a go of it in betting and gaming, and I think we’ll see plenty more of these guys in the years to come.
Paul Sculpher
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THE BLACK MARKET
CHANNELISATION IN GERMANY Gambling Insider regular contributor and Partner at Melchers Law, Dr. Joerg Hofmann, explores the need for action to tackle Germany’s black-market gambling problems There is only one criterion that can provide a reliable measure of the success of gambling regulation. That is the channelling rate. The channelling rate indicates the percentage of legal offers in the regulated market. In other words: how high the proportion of players is that could be channelled to legal operators. What is left over is covered by the black market. As player protection can only be achieved if the player to be protected plays in a licensed and state-controlled environment, it follows that the higher the channelling rate, the better. It is the only indicator as to whether a regulatory system is effective or failing. It is therefore extremely important. It is also of central importance for the assessment of the still young gambling regulation in Germany. But it is precisely here that opinions differ as to how high it really is. The current debate is extremely controversial. The highest regulatory authority in Germany, the “Gemeinsame Glücksspielaufsichtsbehörde der Länder” (GGL) in Halle, Saxony-Anhalt, estimates the total share of the black market in Germany at 2% to 4%. A statement published on the GGL homepage in November 2023 states the GGL estimates that there are currently between 800 and 900 websites offering illegal online gambling, e.g. virtual slot machines, online poker, online casino games, so-called secondary lotteries and sports betting. However, the GGL expects that
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“It is therefore crucial to ask why players choose the black-market offer, to analyse what they miss in the licensed offer and to find out what needs to be changed” the proportion of these offerings will decline overall in 2022. The regulator assumed that the illegal websites identified represent a market volume of between €300-500m ($326-543m). This corresponds to about 2%4% of the licensed market. According to the GGL, this survey is based on, among other things, the recording and analysis of visitor activity on illegal websites, the analysis of offers from illegal operators and the evaluation of affiliate marketing networks. A few months ago, on 15 March 2023, GGL Co-Chairman Ronald Benter quoted almost similar figures for the sports betting market alone. Speaking at the Gambling Symposium at the University of Hohenheim, he said that, according to the GGL’s own market analysis, the channelling rate in the sports betting sector was well over 95%. He had projected this figure onto the available tax collection data, according to which less than 5% of betting taxes paid are generated by operators that do not hold a German sports betting licence. However, this view does not take into account all the unlicensed sports betting operators that
(illegally) do not pay taxes in Germany. So much for the GGL - analyses from the industry come to completely different conclusions. They see around half of the players in the black market. On 20th November 2023, the German Sports Betting Association (DSWV) and the German Online Casino Association (DOCV) published an “analysis of the latest developments in the online gambling market as a result of the Interstate Treaty on Gambling”. This study is called the “Schnabl study” because it was conducted by economist Professor Gunther Schnabl of the University of Leipzig. Schnabl concludes that the channelling rate, i.e. the proportion of usage of licensed services, is around 50.7% while 28.9% of usage is accounted for by non-licensed EU operators and 19.9% was accounted for by unlicensed offshore operators. The latest reference month for the analysis was March 2023. Let’s take a quick look at what distinguishes the Schnabl study from the GGL analyses. First, the data collection methods are different. The
THE BLACK MARKET
GGL analyses internet traffic. Schnabl observes the user behaviour of a representative selection of players. The user behaviour of around 25,000 people who are active online in Germany was recorded. This means that every visit to domains, URLs or apps for online services of all kinds is recorded in a click stream (browser history with exact times) for each participant in the group. The results of the analysis are not only interesting in terms of the level of channelling. They also provide intriguing insights into other user behaviour, such as the technology used. It was found that around two thirds of the participants analysed, played on computers (desktops and laptops), with the remaining third using mobile phones. As only the use of online gambling offers is relevant for this study, more than 700 gambling domains were initially identified that contain a real-money gambling offer in German, that can be accessed from a German IP address (without the use of a VPN) and that accept a German residence of the user upon registration. The number and duration of visits to the specified online gambling sites were recorded for each participant per month. This study concludes that a significant percentage of German online gambling takes place in the unlicensed, illegal market. The study found that the channelling rate, i.e., the percentage of use of licensed offers, was around 50.7% in March 2023, while 28.9% of use was attributable to unlicensed EU operators and 19.9% to unlicensed offshore operators. Around half of the time spent by German players is therefore currently spent on illegal online gambling services. An analysis of the data over time shows that the number of recorded uses for licensed operators fell from 1,293 to 995 between January 2019 and March 2023, while the number of uses for non-licensed operators increased. Schnabl also reports estimates that show at least three quarters of online gambling turnover is generated on the black market. With more than 75% of illegal offers being used, this also results in significant tax losses amounting to several hundred million Euros.
By the way, it is important to distinguish between the percentage of players and the percentage of stakes when examining the channelling rate. If, for example, 20% of the players account for 80% of the stakes, the percentages have a very different weight depending on the basis. One could spend a long time discussing which of the two studies best reflects the actual market situation. What is certain is that the findings are worlds apart. It is also clear that they can only ever be estimates and forecasts, the value of which depends on the quality and completeness of the underlying data. Who has the better insights? Black-market operators will not make their gross gaming revenues generated in Germany available. It is not possible to track the exact amount of all stakes flowing into the black market from all players in Germany, nor the actual number of all players connected to the black market or their proportional share. However, the industry sometimes has its own sources of access to data. Software providers know the turnover of their B2B partners. They can (representatively) compare sales and developments. Software providers that deal specifically with consumer traffic and search engine analyses can create their own surveys. The question of what needs to be done can be left open. As long as it cannot be ruled out that the channelling rate in Germany is more in line with the estimates of the industry and its associations, the top priority of those responsible for regulation must do everything possible to win back the lost players. We are talking here about effectively combating the black market, nothing else. This does not mean years of enforcement attempts against illegal operators which, even if one or the other withdraws from the market, only ever hit the tip of the iceberg. The main goal of the new Interstate Treaty on Gambling, which came into force in July 2021, is to channel players into the legal market, where they can play in a protected, state-controlled area. By channelling players into the unlicensed market, the existing player protection mechanisms of the current
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Dr. Joerg Hofmann regulation are completely ineffective. Player protection does not take place. It is therefore crucial to ask why players choose the black-market offer, to analyse what they miss in the licensed offer and to find out what needs to be changed to make them feel at home in the licensed market again. The discussion should seek to find these answers. They are the key to a maximum channelisation rate. The results of different approaches to analysis will hardly differ once the rate is high enough to speak of successful canalisation. Dealing with these questions and their answers, with the figures and information obtained, must be open and transparent. The resulting conclusions must be drawn consistently, swiftly and independently, so that in the end it may not be called: Outside reality is inside the regulator’s office.
Freiburg – in Germany's Black Forest
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ACCAFREEZE
GIVING CONTROL TO THE FANS Gambling Insider speaks with Sky Bet’s Michael Shinners about its new AccaFreeze feature and how it is changing the way players bet on football Back in September, Sky Bet launched a new feature for its football accumulators called Sky Bet AccaFreeze. The concept of this product was to allow bettors to freeze a leg of their accumulator, so if that leg went onto lose, it would not affect the outcome of the entire acca. For example, in November, if you backed Tottenham to beat Wolves in the Premier League as one of the legs of an acca and froze it after Brennan Johnson gave Spurs a 1-0 lead after three minutes, then despite the fact Wolves went onto score two late goals and win the game, this wouldn’t affect the final outcome of your entire acca; as it was frozen when Tottenham were winning. This new feature was launched alongside an advert campaign in collaboration with Grey London. The advert shows an up-and-coming football player putting in the training ahead of a match where he tries to score an equaliser, before he is frozen out of the game by a fan who wants to end the game their way. For many years, Sky Bet has sought to put itself at the forefront of the sports betting arena in the UK. It always seeks to engage its players with new ways of playing, with increased competition from the likes of bet365, William Hill and Paddy Power, among others. With AccaFreeze, Sky Bet has sought to put itself on top of the UK’s congested sports betting market as it seeks to give the fans“control.”
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What was the initial thinking behind Sky Bet AccaFreeze and why it might appeal to the market? We had different options and ultimately as a business, we decided to launch something new to market and give our customers a really exciting product to enjoy. We know our customers love their accumulators, therefore we felt it important to be innovative and stand out from the market.
Do you think AccaFreeze will be another template other betting brands will look to use themselves? We’re sure it will. But we’ve given Sky Bet customers the experience first and we’ll seek to engage as many as we can in the meantime. Innovation and product experiences aren’t things customers forget and we’ll continue to put these things at the centre of our business.
Can you talk us through other features Sky Bet has launched that other brands may have utilised themselves? We launched RequestABet nearly 10 years ago, which was an industry first and has since been utilised with others across the world. We’re also very proud of our player markets, which we developed with Opta and which are now Can you explain how you came up with commonplace in the sector. Much like Sky Bet, the ‘End the game your way’ campaign/ Flutter’s stable of brands all have an incredible TV advert? heritage when it comes to product innovation. Our brand team working with our Creative We invented what we know here in the UK as agency, Grey London, developed the campaign ‘Bet Builders’ after Sportsbet and Paddy Power tagline. Every customer has felt the thrill and colleagues collaborated on a project several years disappointment of that goal that changes the ago. That product was exported to Sky Bet and fortune of their accumulator. We wanted to other brands around the world to great success, convey the message to customers that they including in the US with FanDuel’s Same Game now hold that control in their hand through Parlay. Other brands in our UK and Irish AccaFreeze – they can end the game their way. division continue to innovate in their own way too, with Betfair – the pioneer of ‘cash out’ – Is there a business risk of giving too much creating a new 90-minute payout offer for their “control” to the football fan over their accas? customers this season that has resonated well. We don’t believe so. The customer experience and their enjoyment of our product is the Do you believe AccaFreeze and your other most important to us at Sky Bet. Customers features give you a truly unique position having control, making proactive decisions in within the UK sports betting market? the outcome of their bets, enhances both their Every brand will feel they have their own unique experience and enjoyment. proposition and what we do at Sky Bet will be different to, say, Betfair’s approach – we’ve In what ways will AccaFreeze change the both brought new features to the market way players bet on football? this season that we’ll benefit from. One of Gone are the days of waiting until the final the advantages we have being part of Flutter is whistle to see if you’ve won or lost. First there was that the brands can incorporate these wider cash out and we’ve moved the dial once again, innovations into their product offering easily giving customers the chance to end the game and quickly if they decide to. At Sky Bet, we’ll their way and control the destiny of their continue to innovate our accumulator and wider accumulator. It’s an immersive experience as sportsbook propositions to give our customers customers seek to use their Freeze in the best way the best possible experience, giving them no they can throughout the match. reason to go elsewhere. How popular has the feature been with players since its launch? Customers have loved it. There has been great feedback across our social channels and engagement levels have surpassed expectations. We’re happy with where it’s going.
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MALTA FOCUS
THE RAT RACE Gambling Insider speaks with Sennette Lam, CEO of recruitment company TalentBet. She provides us with a unique perspective into Malta’s iGaming recruitment practices and the realities of employers seeking employees in a competitive post-Covid environment I think a great start would be for you to introduce yourself, who you are and what you do at TalentBet! I’m Sennette. I am now the CEO of TalentBet; prior to that I was Director of Talent. We are a recruitment provider, focusing mainly on iGaming and fintech industries. We have our head office based in Malta. We launched at the beginning of 2023. It was launched by the founders around February time and I myself joined in April. We on-boarded a team that had specific recruitment experience within the iGaming and Fintech field. We offer recruitment to all companies that fall under the spectrum in Malta and everywhere else. I think what makes us different is that we want to stay niche; we aren’t a general recruiter. We grew quite fast, faster than we thought we would, which is great. With the gaming industry being what it is and everyone being connected, we know a lot of people and we ended up onboarding a lot of clients very quickly. Gaming companies are very open to working with agencies. I think it’s because it’s such a niche market and there’s a high turnover in the sense of people moving within the industry, so it’s harder to find the best talent. Plus, prior to recruitment I worked within iGaming and Malta is very small. So you tend to get to know everybody and it’s
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very easy to network. Things like Brexit and Covid-19, even though they were a while back, have had ripple effects. What we've heard and seen is that it’s caused some difficulty in people coming overseas to Malta to work in iGaming. Is that still something you find? Yes and no. I think the Covid effect balanced Brexit a bit. I’m British and I live in Malta, so I have a specific Brexit status. For everyone that was here, Brexit didn’t affect us because we were already working here. It wasn’t an issue at all. When it comes to bringing people over to Malta, let’s say you have expats that are in Gibraltar, or they’re very experienced like a COO or a CTO. If they’re somebody specific within their field, even if they’re British, companies are open to doing visas for them. Maybe not so much of your British customer support agent, you know? I think Covid balanced things in the sense that, since Covid, companies have really become much more open-minded to remote work. Companies have realised everybody had to switch and the gaming industry being as adaptable as it is, switched and then realised 'oh, hold on. We can actually run a business this way.' A lot of companies
now, especially the bigger ones, want people at the office. They say: ‘if everyone’s remote, we’re not building a company culture and we want to get that back.’ But I would say the majority of companies now in Malta offer hybrid - I actually don’t know any company that requires employees to be in the office Monday to Friday Companies, especially small ones and start-ups, offer remote work because, even though it might not be ideal for people to not be in the office, they know since Covid people want to work remote. Companies know that if they want the best talent, they have to be open minded. How do you think hybrid and remote work has impacted expectations of jobs? And do you think hybrid/remote has changed the relationship between employers and employees in the iGaming space? It has its pros and cons. From an employer’s point of view, you’re going to get better candidates because when you offer a role remote you’re making it available to everyone. In terms of hybrid, I think companies are being forced to show they are flexible. I think companies don’t particularly want to give hybrid. I think as a business, if you’re going to request them to be there you would always want them there. I think they’re feeling like the hand is forced - if we don’t offer it and a candidate has an offer with us or an offer with a company offering hybrid, the other company is going to get them. In terms of the culture? I noticed when I was at SiGMA recently how many times you hear people say: ‘Oh, finally we get to meet’ or ‘we’ve got people coming over.' They’ve never met in person and I think that’s one of the cons. But then you have the pro of knowing you’re able to get more quality people and you can offer more when it’s remote. Do you think having these remote and hybrid roles have been a factor that’s helped Malta grow in the iGaming space? Do you think that’s been beneficial for it? I don’t necessarily think that it’s helped Malta, the country as such, because what it’s done is allow people to leave Malta and continue their
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MALTA FOCUS
careers. A lot of people in Covid times left Malta, went home and their companies gave them the flexibility to work remote. Malta has lost quite a lot of good candidates. I think for Malta itself, it wasn’t so much a positive. At one point, everyone was in Malta. Now people are scattered everywhere. So, although they could be working for a company based in Malta, they’re not physically here in Malta. On the islands, people frequently move from job to job, loyalty isn’t always there. How do you think that’s impacted the market and how do you identify a long-term candidate? It’s really hard. At the beginning when iGaming was starting out, people used to be more loyal. Then the gaming industry became saturated because, back then, there were fewer companies. So you’d get into a good company, they’d offer you a good salary and you would be loyal and slowly work your way up. Now it’s changed - someone can start in a company entry-level role, then a year later they’re a CRM coordinator, then another company will come and take them for Head of CRM. There are more jobs and companies than there are people available. So the gaming industry, because it grew so much, has a need for roles. Let’s say, for example, you have 20 candidates in Malta but we have 40 roles. We have 40 companies that need them but there’s only 20 people qualified, so it becomes a rat race. Companies will offer them more money, more benefits and more flexibility. You have to work hybrid now? We’ll give you fully remote. I don’t think it’s a case of them not being committed or loyal. I think it’s a case of other companies. There’re so many companies now, if you are a trained professional in this industry, it’s hard to stay at one company because there’s
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always another that needs someone like you who’s going to offer you more. So there are people that are very loyal still, but I think it goes a bit above just the salary - it’s the whole working environment, who your manager is. Sometimes people leave managers, not jobs. Some of what companies can offer nowadays is insane because they want the best people. It’s hard to remain loyal and it’s not because that’s not their character or they’re not loyal people. It’s just that they could get a better offer somewhere else or a bigger promotion somewhere else. People now in gaming progress so fast. It used to be much slower. Companies, because they need people, are willing to take people on the off chance that they’re good for the role. It’s a very competitive market out there. There’s a push for diversity. Companies want people from diverse backgrounds in the industry, women and people from outside gambling. How do you go about demystifying iGaming and getting new people from diverse backgrounds into the industry? I think iGaming now doesn’t have as much of a reputation as it used to. When I first started in recruitment, there would be times when I would speak to candidates and they would say: ‘I’m not working in gaming, it goes against my beliefs’. In the last five years, I’ve not heard that once. I think the gaming industry has become much more appealing, especially to people who move abroad. In Malta, everybody knows the gaming industry pays better than the local market. Because the majority of the positions in gaming are in a niche market, employers do want people with experience. The only roles where you don’t are entry level and even then they need a language: German, Swedish or maybe Finnish. Tech roles also don’t usually require gaming, nor do a lot of compliance roles. They don’t always have to be from the industry. It’s very easy to sell them across because of what gaming companies offer. They offer good salaries, good bonuses and healthcare packages. A lot of them offer gym memberships, healthcare plans, Friday beers and such. They offer a lot more than your local companies. People are also seeing that fintech is becoming popular and it’s interlinked with gaming. So people are moving back and forth from fintech to gaming. Overall, I just think there’s a lot more awareness about these industries and people are more open minded. When you look at TalentBet’s management and specialist team, it’s entirely made up of women. What is an all-female working environment like? I’ve been in recruitment for the past 10 years and I’ve predominantly worked with females. It just tends to be a role that is more drawn
towards women than men. There are a lot of men in recruitment, don’t get me wrong. We just happen to be more females. Actually, we got an office cat at one point and we made sure he was a boy so that we had a balance. So we have a male. It just wasn’t human! Everyone respects everyone, we all work the same way. Plus, there’s the fun factor. One of the things I said when I agreed to join TalentBet was that I really want to bring fun back because it can get so diluted with admin. At the end of the day, your job as a recruiter is to help people find jobs. It doesn’t need to be stressful. It should be fun. You’re interacting with people, you’re speaking to people and you’re finding them jobs. It’s rewarding. Do they always get the job? No. But you’ve built that relationship and you’ve put in the work there. We were very careful with the team selection. We wanted to make sure it’s a nice office environment. We have a policy; as long as the job’s done, you do what you want. There’s no set start time. There’s no set finish time. Being a recruiter, if you’re good at your job and you’re doing it properly, the job never stops. Clients will be messaging me at 10 o’clock at night. It’s a very fun environment, everyone gets along. I think if there’s any guys there, it would be exactly the same and it’s not that we don’t hire men. It is the way it is at the moment. Have you noticed any Malta-specific employment trends that you don’t really see anywhere else? No, not really. I think because the industry now is all so spread out, it’s the same everywhere. I still find Malta very appealing, but I don’t find it as easy to sell as I did five years ago. I think people are more aware of other locations now and are more open to more remote opportunities. If they know and they’ve worked in the industry for a while, they’re already familiar with Malta and they’ll have already formed their opinion on whether they want to be based here or not. I don’t see any specific trends for Malta. Maybe the industry in general, but not specifically for Malta. Well, we’ll wrap up here - if there’s anything else you want to tell us, maybe anything new coming to TalentBet in the next couple of months? We’re looking to expand even further. The plans for Q1 and Q2 would be to expand more on the fintech side because iGaming is what most of the people we had originally were experienced in. So we’re going to grow in fintech and then we’re probably going to try to move into different niche markets, maybe the US market, and we’ll employ some specific recruiters that have experience there.
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INVESTIGATIONS
FINDING THE FACTS Mick Confrey, Managing Director of Intersol Global, joins Gambling Insider Editor Tim Poole in London to discuss a career of murder cases, the common misconception of the ‘interview’ and how investigations could potentially benefit gambling firms Tell us about your background as a police detective. My background is pretty simple; I’m a council estate kid who left school aged 16. I joined the army, then left the army at 22 to join the police and left the police in 2014. Somewhere on that journey, around
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the early 1990s, I became a detective. Then I got involved in serious crime around 1996 and then by 2002, was working with a major investigation team, which mainly involved murder investigations. Around that time in Manchester, there was a lot of gang violence and shootings. Around
this time many police forces police forces formed units called major incident teams. You have seen them on TV: teams of detectives and then within that team of detectives, you would have specialists. The way it works is – imagine a pyramid. It’s led by a Senior Investigating Officer (SIO) usually a Detective
INVESTIGATIONS
Superintendent or Detective Chief Inspector. Then you have an office team that work a machine called HOLMES, and the police are really imaginative, it stands for Home Office Large Major Enquiry System. That came around due to the Peter Sutcliffe inquiry. So you have a huge computer now that takes a whole team of people to drive and there’s a paper flow that goes through our system. A murder would happen and the senior investigating officer would call out their advisers – me being one of them. So how does the life of a police detective now translate to the gambling industry? People are losing faith in the police. As an ex-police officer, I’m disappointed, but that’s a fact. So there is more and more now being put on the employer to do their own in-house investigations. In London, there’s a big movement of private prosecution. Private prosecutions, in-house prosecution, in-house investigations are active, because the police are just not doing it anymore. So in-house, companies have invested a lot into investigators. And what we do is train those in-house investigators because they’ve got to get better at it and they can no longer rely on the police. The difficult thing with these investigations is that, when you look at gambling and compliance investigations, it tends to attract the investigators who spent a lot of time working on fraud. So they’re very good on spreadsheets and documents, but not brilliant when it comes to speaking to people… or not brilliant with Strategic or Tactical Use of Evidence. If I’ve got evidence now and I’ve got to interview somebody, how do I best use this? If I give you everything up front and say go away and think about it, you’re going to have created a narrative. And that simply won’t work. The police introduced a model of interviewing in 1992 called PEACE (Preparation and Planning, Engage and Explain, Account Clarification and Challenge, Closure then Evaluation). However some police officers got fixated on using PEACE as a rigid model, and haven’t adapted to new types of evidence available to investigators today, and learned how to use it as a framework. Is this more important when interviewing those trained in giving very specific answers, like CEOs? It’s more about bias, basically investigative bias. So I’m the investigator and I’ve gathered all the material from the banks and wherever else. For example, in a casino, I might look at all the memberships and then look at the key codes. Who’s been to the cage and how many times? It’s all in black and white, especially when I’ve got the spreadsheets in front of me. When I’m looking at those spreadsheets, the biggest mistake I can make is
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“When you look at gambling and compliance investigations, it tends to attract the investigators who spent a lot of time working on fraud. So they’re very good on spreadsheets and documents, but not brilliant when it comes to speaking to people…” anticipating that I know what’s happened. And the longer you’ve been an investigator, the harder it is to avoid, because you’ve probably seen something similar before. Sure, you can spend a hell of a lot of time gathering all the evidence, but if you don’t use it correctly or you don’t have a mind for an alternate hypothesis, it can all go wrong. So a poor interviewer would ask many closed questions, rather than saying, ‘Tell me about your casino,’ shutting up and letting them talk. An investigation is an investigation in any setting… it is more like a chassis. Whatever industry you drop in, that is still an investigation. So whether that’s in higher education, HR, law or even health and safety, it’s still the same process. Your job as the investigator is to go in there with an open mind and gather information that either supports or contradicts. We learned pretty quickly about our internal operations, and the same problems occurred in internal audits. Assumptions were being made and investigations were not being peoplefocused; the right questions were not asked, the difficult questions were not asked. Part of the skill of investigation is planning. People don’t do that very well. A lot of our training focuses on planning. Does it make for a stronger investigation if the same person who prepares the evidence also conducts the interview? Yes, it should be the same person. In a major investigation, you might not get that, but you’ve got different standards. In a high-stakes investigation, where the outcome may be that someone loses their job the standard of proof doesn’t change but the quality of the investigation should be higher. A good example is an investigation into a minor criminal offence would be scrutinised
at the Magistrates Court. That investigation won’t be the platinum-standard like it would be if you were investigating a major crime which would be scrutinised at a Crown Court. The standard of proof is exactly the same, but the quality of the investigation will be higher. What about when there is a public figure involved, or when the case has significant public interest? Where people make the mistake, particularly in civil investigations, is they think the standard of proof suddenly becomes higher. It doesn’t. The standard of proof is: is it more likely than not? And there’s a whole host of different explanations. Some people say it’s 51 versus 49, but it’s not. It just has to be over 50% likelihood. The amount of work that should go into the investigation to get to that point should be higher or lower, depending on what the potential outcome is. If somebody at work says you’ve been taking their sandwiches out of the fridge, you’re not expecting a three-month investigation. You’d expect a manager to quickly look at it, but if the manager feels it’s more likely than not you took the sandwiches, you’ll get some kind of reprimand. But, if somebody said they woke up next to a colleague after a work function but can’t remember how, then the potential outcome is that person could get sacked. So the standards of investigation should be high, but the standard of proof is the same. You must look at the facts and see what they say. Do the facts add up to whatever the allegation is? That’s where the investigation bias has to be removed. This can apply specifically in a gaming setting too? Yes, let’s say you’re a casino manager but you’ve worked your way up to that position from a croupier. You’ll know what can
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happen on the tables because you’ve lived and breathed that. But when you’re taking a step away and you’re looking at investigating for potential fraud or straightforward theft, the hard bit is not projecting yourself in there. It’s good to have that background, but the hard bit is not thinking: ‘Oh, I know exactly what’s happening.’ You’ve got to remove more and take a really retrospective step back. That’s difficult to do. The more experienced of an investigator you are, the more difficult it becomes and the more you think ‘I’ve seen this before.’ What are some real-world applications of this that you’ve seen? In some industries they call it surveillance. It’s electronic and you’re taking reactive steps rather than proactive steps. So let’s say you remove a file from a computer system and you know you shouldn’t. Well, that’ll flag somewhere. And by the time the compliance team will come in the next day, somebody will say: ‘Oh, X took a file home with them.’ Now, if I had a bunch of assumptions and closed questions, if you go into an investigation
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with a prescribed list of questions, you’re not going to give that person the opportunity to explain themselves and you’re going to be making assumptions. It would be much better if I went into the interview and simply asked the person why they did what they did. They could explain that they didn’t intend to steal the document, they simply didn’t have enough time in the day to get the work done and wanted to email the work home to finish it off later. Now, rather than having the issue being staff stealing information, the problem is unfair working conditions etc. Are there any issues you’ve come across when working specifically within gambling? Often, you’re dealing with a very closeknit group of people. Let’s say you work in a casino, you all know each other. You socialise together. How hard is it for you to give me information about what’s going on? When you look at the research, most whistleblowers are what they call outliers, so they’re not really part of the gang. It’s
easier to blow the whistle when you’re not right in the middle. Then the other problem is what happens if you’re too far in and you don’t want to be there. You might want to blow the whistle, but pretend you’ve done nothing wrong. To get the information I need to investigate properly, I need to know how to assure people. So the dynamics of speaking to people are massively important. I’ve only got one chance for people to win their trust. And it’s got to work out – that’s on a sort of chemical basis in the brain. Imagine you’re an employee. Now, I know in the workplace regulations, it will say in the in-house discipline codes that you’re expected to comply with the investigator’s requests. And if you don’t, you might get sacked. Yet you can lead a horse to water, but you can’t make it drink… So how do you overcome that? From my perspective, it’s not just about finding out the facts. It’s about the bigger picture, not just a confession. It’s not about driving somebody to a confession and saying 'I’ve done a really good job.' If someone has confessed to stealing money and it may well be an innocent confession. The problem will continue, because you’ve got to identify the weakness of the system. So this is where my journey from police detective to where I am now: training internal audit, external audit, compliance, HR, and health and safety professionals. You can actually learn a lot from health and safety because they are effectively not looking to blame one individual. They’re looking at the Swiss Cheese Model, looking at contributing factors like they’re slices of Swiss cheese with holes in. So the investigation focuses on how did all those slices align so that the little holes lined up and let this happen. So what I want to do at the end of an investigation is say be able to say okay, that person did or didn’t do it. However, this is the reason why and this is what you need to fix to stop it happening again. For many years private industry used the Reid technique. A company called Wicklander-Zulawski were training the Reid technique in the UK. Thankfully, the guys at Wicklander-Zulawski had a moment a few years ago and realised what they were doing was wrong. They turned away from the Reid technique and now deliver training based on the investigative interviewing model. Reid was all about getting a confession. Now, you should recognise the benefit of an early confession if it comes because it can shorten the process, but it shouldn’t be what the investigator sets off to do. I should leave the house thinking I will try to understand what happened. After all, the person who has commissioned me wants to find out what went wrong.
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INDIA FOCUS
LET THERE BE LIGHT Ranjana Adhikari, Shashi Shekhar Misra & Ruhi Kanakia, partners at IndusLaw, discuss the ‘dark patterns’ guidelines issued by India’s Central Consumer Protection Authority – from the perspective of game development Imagine yourself playing a free online multiplayer shooting game. The quest is afoot and your opponents have purchased premium ammunition from the game to vanquish you. As you move deeper into the quest, you see pop-ups and suggestions, nagging you to invite your friends to join the game by giving the game access to your contacts list. You gradually realise that even though the game was advertised as free-to-play, you need to make in-app purchases to unlock all levels, which you were not informed of when you started the game. Finally, there comes a point where the game restricts you from advancing to the next level unless you purchase new ammunition or buy more in-app currency. You may have unknowingly become a victim of ‘dark patterns!'
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BACKGROUND On 30November 2023, India’s Central Consumer Protection Authority (“CCPA”), the statutory body under the federal Consumer Protection Act, 2019 (“CPA 2019”), notified the ‘Guidelines for Prevention and Regulation of Dark Patterns, 2023’ (“Guidelines”). The Guidelines have been framed in exercise of the CCPA’s powers under S.18 of the CPA 2019 and came into force on the same date. The term ‘dark patterns’ refers to deceptive online practices, especially in relation to a website or app’s user interface, which either mislead, coerce or manipulate consumers to impair their decision-making ability in relation to their choice of products/services. Dark patterns are designed to take advantage of the way people habitually use websites and apps to cause them to do something they didn’t originally intend. The Guidelines define dark patterns as a deceptive UI/UX design which amounts to either an “unfair trade practice,” a “misleading advertisement” or a violation of consumer rights. The Guidelines are applicable to all platforms which systematically offer goods or services in India, as well as to advertisers and sellers. While the definition of dark patterns under the Guidelines is fairly wide, on a joint reading of guidelines 4 and 5, one may argue that the prohibitions are currently restricted to the 13 specified dark patterns described in Annexure 1 of the Guidelines (the said Annexure may be updated by the CCPA from time to time). However, since the opening text of Annexure 1 itself says that the Annexure is for “guidance”
and the “facts or conditions may entail different interpretations,” platforms must ensure that practices adopted for any marketing, user acquisition or as a part of the UI/UX don’t fall within the ambit of the definition of dark patterns under the Guidelines. Platforms must also ensure there is sufficient rationale built into the systems and processes to demonstrate that the UI/UX is not meant to be deceptive; and does not mislead or trick users to do something they originally did not intend or want to do. This short write-up attempts to discuss some practices that can potentially be considered as dark patterns in game formats for the purposes of the Guidelines, and what the industry can consider to move towards more ethical UI/UX designs. DARK PATTERNS IN GAME DEVELOPMENT While the primary objective of game design is typically to create a seamless user experience, entertainment and spectacle are intentions not too far behind. However, game designers often incorporate dark patterns within the game’s design to serve platform-favoured purposes such as prompting the player to make more in-app purchases. These intentional design choices can create negative experiences for players, working against the player’s interests. Dark patterns commonly found in games could be categorised into three main types: temporal, monetary and social capital-based dark patterns. While some of the illustrations that we have discussed in this section may not overlap with the ‘specified
INDIA FOCUS
dark patterns’ in Annexure 1 of the Guidelines, the wide definition of dark patterns under the Guidelines could potentially also include these practices. Some games have dark patterns embedded in them designed to specifically attract children. For example, mechanics such as loot boxes may tend to target the uninformed child user, influencing them to purchase them without understanding the real-world financial implications. In addition, in-game advertisements, typically videos or pop-ups, can influence children and prompt clicks or purchases by them. Similarly, product placements may lead children to develop preferences or associations with brands without recognising the commercial intent. It is pertinent to note that the European Union expressly recognises “emotional steering” as a dark pattern, whereby users may be manipulated to purchase more in-game currency or provide more personal data. A frequently occurring temporal dark pattern is “play by appointment,” where players are compelled to adhere to the game’s schedule rather than their own. Failure to comply with the game’s timeline usually results in some form of penalisation. This often pairs with the monetary pattern of “pay to skip,” where players faced with waiting periods can expedite the process by spending real money. Dark patterns prevalent in games often make players feel disempowered and frustrated since the deceptive tactics strip away their control. It, therefore, becomes imperative for the gaming companies to prioritise ethical design practices, ensuring a more enjoyable and trustworthy gaming experience for the players. SOME ‘SPECIFIED DARK PATTERNS’ RELEVANT FOR GAMING AS PER THE ANNEXURE UNDER THE GUIDELINES Annexure 1 to the Guidelines specifies 13 dark patterns that are expressly prohibited. These are: ‘False urgency,’ ‘Basket sneaking,’ ‘Confirm shaming,’ ‘Forced action,’ ‘Subscription trap,’ ‘Interface interference,’ ‘Bait and switch,’ ‘Drip pricing,’ ‘Disguised advertisement,’ ‘Nagging,’ ‘Trick question,’ ‘SaaS billing’ and ‘Rogue malwares.’ We now discuss some of these to illustrate how the gaming industry may inadvertently fall foul of the Guidelines. In “Drip pricing,” the actual price (or elements thereof) is not revealed up front when the consumer is considering the purchase decision. Gaming platforms/publishers sometimes advertise games as free even though usage beyond a particular time requires in-app purchases to continue. Also, at times, a gamer discovers after purchasing a full game that additional payments are required to unlock all its features. “Subscription traps” (also known as “forced continuity” or “immortal accounts”) function in two ways. A gaming platform may either
attach very unfavourable consequences with unsubscribing from a service or the process for unsubscribing may be long-drawn, confusing, cumbersome or difficult to find and initiate. Forcing consumers to share payment details or related identity verification details or authorise auto-debits for a free subscription is also covered under this specified dark pattern. The UI/UX of some games tend to create a “false urgency” to mislead consumers into making an immediate purchase or taking an immediate action, which may lead to a purchase. This includes showing false popularity of an in-app purchase or stating that quantities of a particular in-app purchase or paid feature (or their discounted versions) are more limited than they actually are. The “forced action” dark pattern manifests in different forms. For instance, gamers might be prohibited from continuing with the original gaming experience unless they upgrade to a premium version, or the platform may impose a mandatory newsletter subscription as a pre-requisite for unlocking some game levels or features. Some games also leverage social pressure, requiring players to share details of their contacts or social networks to access some benefits. Dark patterns sometimes also gather excessive or unnecessary personal data. This is likely to fall under the “forced action” (as discussed above) and/or “nagging” dark pattern under the Guidelines. Employing UI/UX design that places the privacy policy acceptance button more prominently than the button to read the policy is a classic example of “interface interference” under the Guidelines. Over-complicated privacy settings, whereby a website bundles together various permissions under a single setting or uses language that is ambiguous and jargon-heavy, making it highly tedious for the user to navigate through multiple steps, may also be seen as a dark pattern. REPERCUSSIONS FOR NON-COMPLIANCE Unlike the provisions of the draft version of the Guidelines, the Guidelines do not specifically mention the penalties non-compliance entail. However, since the Guidelines classify dark patterns as an “unfair trade practice,” “misleading advertisement” or “violation of consumer rights,” non-compliance may trigger the penalties outlined under the CPA 2019 for these contraventions. This could, inter alia, result in fines of up to INR 10 lakhs (US$12,001.64), extending to INR 50 lakhs for subsequent contraventions. The CPA 2019 also provides for criminal penalties in some instances of misleading advertisements but the same has not been imposed till date. Since the law is new and evolving, one should keep a close eye to see in what instances these may be imposed. As per official government
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Shashi Shekhar Misra press releases, consumers can report instances of dark patterns and manipulative online practices through the National Consumer Helpline or via WhatsApp messages to a designated number. THE WAY AHEAD The gaming industry should bear in mind that the raison d’etre of the Guidelines is to safeguard the consumer from being misled, deceived or falling prey to unfair trade practices – all of which are a violation of consumer rights under the CPA 2019. The Guidelines should not be interpreted as prohibiting even those UI/UX features or trade practices which do not indulge in any of the foregoing. Game developers should strive to incorporate design practices which are unambiguous, user-friendly and in line with consumer rights. Platforms and publishers should also check whether any existing UI/ UX features are being hit by the Guidelines or not. The need to educate marketing teams and product design teams on these Guidelines is a must, and going forward, platforms must remain vigilant in identifying and mitigating design flaws that may create adverse experiences and ensure that ethical practices are reflected, both in game design and privacy policies.
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SPORTS BOOKS
AND THE AWARD GOES TO... Gambling Insider looks back on the William Hill Sports Book of the Year Award 2023 and the wider influence this contest brings. Sports book, not sportsbook! In late November, Gambling Insider attended the 2023 edition of the William Hill Sports Book of the Year Awards in Piccadilly, London. When the event was first mentioned in the Gambling Insider office, the assumption was that this award was to reward William Hill’s best sportsbook, given the company is best known for gambling and has launched sportsbooks all around the world. This includes a new upgraded mobile sportsbook app launched through the William Hill sportsbook, in Nevada, back in August 2023... However, in actuality, this event was the 35th anniversary of an annual sports literacy award, which seeks to reward the best in sports writing and is the “world’s longest established and most valuable literacy sports-writing prize,” according to the William Hill website. Entries for the award were closed in August with a longlist of 150 sports books announced in late September, which was then whittled down over the course of a month to a shortlist of six. This included work from Sharron Davies, Lauren Fleshman, Sally H. Jacobs, Ronnie O’Sullivan, Sam Peters and Kathryn Scanlan. Topics for the sports book entries varied,
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tackling issues such as women’s representation in sport and concussion in sports such as rugby and football among other areas, with sports writing at the core of the awards. On the panel making the tough decisions and judging such a vast number of books were Alyson Rudd, Dame Heather Rabbatts, Elis James, Michele Walder, Mark Lawson and former professional footballer Clarke Carlisle. The event took place at BAFTA, situated in the heart of the iconic West End in London. The BAFTAs, or the British Academy Film Awards, is best known for the annual award given to honour the best in British and international contributions to film, so this was the perfect venue for hosting the best in sportswriting across the past year. Since 1989, the William Hill Sports Book of the Year Award has acknowledged the best writing in sports for a variety of topics, covering a range of sports. This includes rowing, football, boxing and even Aikido, which saw a winner in 1998 with Robert Twigger’s ‘Angry White Pyjamas: An Oxford Poet Trains with the Tokyo Riot Police.’ The types of books have also seen wide variation, not only in what they are about, but in how they are written, such as biographies. Each of the six final shortlisted books saw either the author themselves or a representative come up on stage to receive a leather-bound edition of their work, answering questions about the topics covered and the influences behind the books. Also appearing on stage, prior to the final winner announcement, was 2022’s winner Jeremy Wilson. He gave a few words on the award and what it means to win, after his work ‘Beryl: In Search of Britain’s Greatest Athlete’ took the prize a year ago. In the end, Fleshman, the former professional runner who represented the US, crossed the finish line in first. Her work called ‘Good for a Girl: My Life Running in a Man’s World,’ focuses on calling for change in women’s sport and fighting for better for female athletes. This was the first time the award was given to a book about women in sport that was also authored by a woman, highlighting the importance of this 35-year-old award, supported by William Hill. After the close of the ceremony, Gambling Insider sat down with one of the judges, speaking with broadcaster, writer and journalist Mark Lawson. We covered a wide array of topics relating to the award and the work William Hill does to make it all happen, in what was his 11th year judging the William
Hill Sport Book of the Year Awards. “People think we say this every year, but we really don’t. I mean, Alyson Rudd, the Chair of Judges, said this is the strongest shortlist that she’s seen and she’s done it for about 20 years. I do agree with that. I think it’s the strongest shortlist and I think the reason is we’ve fought,” explains the critic on how this year’s award compares to previous ones. AI is a topic which continuously comes up for debate across a broad array of subjects; and for writing this is no different, with skepticism surrounding it. But as stated by Lawson, it can actually bring inadvertent benefits to human writing. “AI will produce you a new book by someone or other, but it’s so obvious when you read them, it’s not them. So we did talk about that a lot. The rise of AI has raised the bar for the quality of writing and I think it has to.” On the impact of the awards themselves and the potential for even more entrants in the years to come, Lawson stated: “I hope so. I mean, this is the biggest entry we’ve had and the most varied and the most women. Alyson Rudd has appealed from that podium for many years for more books by women because it didn’t happen. It was an almost entirely male genre.” The awards have been called the William Hill Sports Book of the Year since its inaugural edition and Lawson expressed what exactly this has meant. “I think the contribution of William Hill to sporting literature has been enormous and needs to be recognised. I think this prize has transformed sports book publishing; I think it’s raised the standards, it’s raised the range of people who do so and you can see that over the years. Even in the 11 years I’ve done this, the type of books, you know, I think at least three would never have been published. It is remarkable that this has always had one sponsor and I think it’s only just struck me as we're talking now. I think they should get credit for how very rare that is,” Lawson added. This was not a gambling award, but the work William Hill does to make this happen is vital to helping promote and tackle issues which are seen throughout the many books. In some ways, this can help to create impact in sport and wider society, such as in this year’s case, potentially helping to give more of a voice to women taking part in sport. Something new was teased by William Hill for next year, but there is no doubt the premise and influence of the awards will be the same and will continue to inspire change and make a difference.
THE INSIDERS In every issue, Gambling Insider commissions guest columns and interviews with people at the heart of the gaming industry – to discover more about the challenges its leaders, pioneers and innovators face. These contributors form The Insiders
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INSIDERS ARAKSI SARGSYAN
How to virtually stand out Gambling Insider speaks with DS Virtual’s Head of Business Development, Araksi Sargsyan, about how the company is making its virtual gaming offerings stand out and available to all many regulators in different markets because we support only regulated operations. There is no possibility for the players or for us to know the result of the round before it’s over. We offer bets according to the statistics of the previous rounds, then the random number generator chooses a random transmission out of 8,000 for racing products and 14,000 for kickboxing products. The whole success of our games comes from the odds and from the bonus engine. One player recently wagered €8 ($8.73) on one position and won over €2,352, when the multiplier bonus popped up. The winning of the player was multiplied by three. I imagine we made his day then.
What does DS Virtual Gaming do to distinguish itself from competitors? How do you make your products available to markets where there is poor internet connectivity?
We show the transmission of our games by using single-board computers with integrated SD cards. All the games are already saved on the SD card, so we only need 1-2 mbps internet connection to synchronise the games with the server. The ones who visited us on our stands at the exhibitions have seen that our games are running on seven TVs, one POS terminal, one computer, three mobile phones and one self-service terminal with only 5 mbps internet. We have extensive experience with markets with bad internet connection and, if you think internet is the only problem, then let me tell you we are also successfully working in markets with poor electricity...
Can you explain how DS Virtual Gaming’s Random Number Generator (RNG) works and how it makes a fair playing ground for bettors? As you know, our RNG has been certified by
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First of all, we don’t copy others. We never develop already existing games. We are one of the pioneers of the virtual gaming segment with our title 'RacingDogs.' In many markets, we introduced RacingDogs with eight greyhounds, harness racing, kickboxing and kart racing. Plus, we are the only ones who don’t use animations. All our videos are pre-recorded in HD quality. Our future games will meet the same standards unique with prerecorded footage.
How successful has your virtual roulette been compared with your virtual sport offerings?
Virtual roulette has its audience and this audience is unique. We have operators where 95% of the income is generated by roulette. However, you can imagine that these operators are national lotteries, which means the players are already used to number games. Roulette is popular, but still 75% of our income is generated by our racing games. Racing products are the classical games in our vertical. Now our goal is to bring something to the industry that will be the new classic.
However, greyhound racing and horseracing will always have high demand.
The Covid-19 pandemic naturally saw an increase in player betting on virtual sports. But how much has the industry grown or fallen since then?
I wouldn’t link our success to Covid-19, to be frank. However, there has been a total change of the main field in the virtual betting industry, which is the land-based betting market. If we compare pre-pandemic numbers with 2023 of the same locations, then we grew by 83% in Europe, 96% in Africa and 127% in LatAm (I am speaking about the same locations which existed then and now, without taking into consideration that our clients have got more locations at present). This growth comes from the technological upgrades we constantly perform. The connection becomes more and more stable; we have reduced the gap from the moment we stop accepting bets to the moment we show the transmission to just one second. The games work 24/7 without any interruptions – no matter where the betting shops are. All of these factors create trust in our games, which in turn translates into long-term success.
Do you ever see a time where virtual gaming will completely replace real-life horseracing and greyhound racing, especially considering falling betting volumes in recent years? We believe that each segment has its players and admirers. I saw simulcast racing in different markets, like LatAm, Europe, United States, etc... We do not compete with real-life racing. We just complement each other. This industry is pretty wide, but only the best get their place under the sun.
MATTHEW CALASCIONE
INSIDERS
Driving growth in the iGaming market COO at iGP, Matthew Calascione, talks to Gambling Insider about how new innovations from the company, its iGaming Deck and how it picks its partners Tell us a bit about iGP.
In simple terms, iGP (iGaming Platform) is an iGaming tech company offering a platform, aggregator, white label and managed service solution, marketed under iGaming Platform, iGaming Deck, and iGaming Labels. It encompasses casino, sportsbook, crypto and several complementary managed services. Deeper than what we offer is that the business is built on the belief that there’s an opportunity to be a leading supplier, catering to the demand for a more dynamic, engaging and user-friendly iGaming ecosystem. It drives us to challenge conventional industry norms in how we build products, innovate and, as a B2B technology provider, give operators what they need to grow into successful iGaming operators. Growing from an early stage startup to managing over €600m ($657.4m) in monthly wagers across 100 operators, our success partly stems from how we build products, partner with clients and our exciting roadmap ahead. A prime example of our focus on quality solutions is the launch of iGaming Deck, our cloud-based aggregator. With thousands of games and a strong pipeline of new studios, we’ve improved on existing market offerings by enhancing efficiency and operator control, making it cheaper and more effective.
You launched iGaming Deck in September – can you tell us more about it?
Our latest innovation, iGaming Deck, is a testament to iGP’s commitment to advancing the iGaming industry. Launched in September, it is a cloud-based games aggregator that has taken another look at how games are delivered from supplier to operator to end user. The iGaming Deck is designed not just to aggregate games but to streamline the entire process of integration, operation and management for operators. It’s about offering a seamless, hassle-free experience that empowers operators to focus on what they do best – engaging and expanding their player base. A significant aspect of iGaming Deck’s early success is our collaboration with prominent industry partners. So far, we have
announced partnerships with notable names like CT Interactive, LogiFuture, Betsoft and OnlyPlay, among others. These partnerships are just the beginning, with many more exciting collaborations on the horizon. Each partner brings something unique to the table, enriching the iGaming Deck with a varied range of games and features. This diversity is crucial, as it allows our operators to cater to a broad spectrum of player preferences and market demands. With many more partnerships in the pipeline, the future of iGaming Deck looks incredibly promising.
How is iGP helping operators break into more markets?
The less glamorous, yet crucial aspect of iGaming is having a stable, scalable and fast product with excellent back-office tools. Ensuring a top-notch user experience from both operator and consumer perspectives is key. Getting this right enables operators to confidently enter any market. Our technology provides this confidence, as we’ve nailed the basics. On top of this, iGP brings flexible solutions tailored to each market – whether it’s through customer behaviour insights, product development or UX/UI tweaks. This adaptability is what operators have been missing to realise their growth ambitions.
What makes iGP stand out from competitors?
It’s not often talked about, as it’s a minefield for most companies, but the core platform’s stability is crucial. Downtime can cost operators millions annually. Just having a platform that’s consistently operational can set you apart. But there’s more to iGP than just reliability and stability. Once operators see our backoffice functionality, they realise the potential to control their business like never before. This control fosters confidence in seeking new growth opportunities. Our white label and aggregator solutions can get operators up and running within four weeks – not because of some groundbreaking new tech, but because we built it right the first time. A stable core, well-built products, competitive edge and everything under one roof make a compelling offer. Plus,
we’re known for being great partners, which always helps – good people want to do business with other good people.
How does iGP pick its partners?
It boils down to partnership. For clients, suppliers and us, we’re all about moving the industry forward. We’re taking small steps for eventual giant leaps. This can be daunting for some operators, but it’s what drives us. We look for partners who believe in growth and recognise the need for change. When we find those who share our vision, it often leads to great things.
What can we expect from iGP in 2024?
There’s a buzz at iGP about 2024, reminiscent of a startup’s energy with a clear mission. 2023 has been fantastic – we’ve reorganised, completed major tech builds and product launches, and seen a surge of operators going live globally. This is just the beginning. We’re planning some exciting hires in the new year, pushing our new brand further into the market, launching more products and supporting more operators with iGP. We’re optimistic that 2024 will bring everything together, establishing us as the go-to in the industry. GAMBLINGINSIDER.COM
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INSIDERS EVGEN BELOUSOV
The right solutions CEO of GR8 Tech, Evgen Belousov, speaks to Gambling Insider about identifying growth opportunities and how the supplier aims to help iGaming operators break into the market features (BetBuilder) and even products (GR8 Sportsbook iFrame).
Talk to us about the GR8 Sportsbook launched back in August.
Tell us about GR8 tech.
Focusing on our clients’ unique challenges, we deliver best-in-class full technology synergies across the entire user lifecycle, as well as exceptional customer service. Our ethos is about nurturing lifetime partnerships through personalised, adaptable and highly profitable solutions that bring tangible results to our clients. Essentially, we offer the tools and support that empower iGaming operators to elevate their status from market participants to industry leaders. Our platform is a comprehensive resource designed to evolve alongside our clients’ growing ambitions in the world of iGaming.
What technological developments has GR8 Tech been working on?
Ubiquitous AI is definitely one of the most important things we’ve been exploring lately. Looking ahead, we’re particularly excited about the potential of generative AI. It can change how we manage our platform, enhancing customer support and maintaining the high SLAs our clients expect. Talking about new developments productwise, we’ve been focused on refining our platform in many ways, from fine-tuning particular elements to introducing new
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The GR8 Sportsbook is our flagship product, uniquely designed to boost operators’ earning potential through unique margin management capabilities, guaranteeing improved sportsbook margins within just 12 months. Another feature that sets GR8 Sportsbook apart is its ability to handle intense user loads with 99.99% uptime, ensuring uninterrupted, seamless betting experiences even during peak traffic periods. But it’s not just about robust performance. GR8 Sportsbook is known for its comprehensive event coverage, offering an array of diverse and dynamic betting options – more than 25,000 events every day – that cater to a diverse global audience. Our platform goes beyond what external feeds offer by integrating our proprietary feed and trading service.
How do you identify growth opportunities in the market?
Our strategy hinges on a blend of comprehensive market analysis, data-driven insights and active client collaboration. We constantly explore both established and emerging markets, paying close attention to regulatory shifts, technological advancements and player behavior trends. Additionally, we place great emphasis on feedback from our clients, as it provides invaluable insights into the operator’s perspective, helping us refine our solutions to meet real-world challenges. For example, the development of a lightweight frontend specifically for the African market is a direct response to the unique needs and technological infrastructure of that region.
What does it take for an operator to launch a successful online casino?
Launching a successful online casino is a complex but rewarding endeavour, requiring a strategic blend of essential elements and meticulous planning. Key among these is the aggregation of top content providers, ensuring a casino offers the best and most relevant games to attract and retain players. In each
region, the specifics of casino content vary, making it crucial to tailor offerings to local tastes and preferences. An operator must have a clear, unique concept for their casino, setting them apart in a competitive market. Choosing the right technology partner is crucial, as the quality and reliability of the online casino software will underpin the entire operation. The software must be featurerich, user-friendly and adaptable to market needs. Operators must be able to navigate the legal landscape, secure the necessary online casino licences and ensure compliance with all regulatory standards. Marketing strategies significantly gain visibility and attract users, leveraging tactics like SEO, social media marketing and promotions. Implementing secure and varied payment processing options is essential for building user trust. After the launch, continuous customer support and retention efforts are crucial for maintaining a strong player base. Lastly, operators should plan for future growth and expansion, constantly updating their offerings and keeping abreast of industry trends.
What are GR8 Tech’s plans for 2024?
First and foremost, the upcoming year will be exciting for us, with the announcement of several new client partnerships. These significant contracts, coupled with our ongoing efforts to augment our portfolio with a diverse range of content providers, will fuel our growth trajectory throughout 2024. Then, many product updates and new developments are in the pipeline. The upcoming version of our Betbuilder for GR8 Sportsbook will feature extensive cricket coverage that’s in high demand across Asian audiences – Indian, in particular. We’re going to improve GR8 CRM with new ML models to further enhance their proactivity, allowing operators to predict their players’ behaviour better and offer bonuses and communications in advance, drastically increasing user retention. A lot of exciting updates await GR8 Payment Gateway, too. And the continued evolution of our GR8 Sportsbook and GR8 Casino Aggregation will remain central to our strategy in the coming year.
YOEL ZUCKERBERG
INSIDERS
The future of player engagement Gambling Insider spoke to Soft2Bet’s CPO, Yoel Zuckerberg, on regulatory expansion in Europe, entering the US market and gamification You recently launched your latest brand Quickcasino.se in Sweden and Don.ro brand in Romania. Reflecting on 2023, what are your most significant achievements - and what are your aims in thos markets?
Both markets are important for us. As you know, Sweden is a key regulated market in Europe where the industry also has a strong history, so we’re delighted that QuickCasino. se is live and it will complement our Betinia brand along with the recently redesigned CampoBet.se website and app. Romania, meanwhile, is a highly competitive and attractive market where we believe we can grow strongly with Don.ro and other brands that we have in the pipeline. Our aim in both countries is to grow our market share and we will do this by leveraging our Motivational Engineering Gaming Application (MEGA), the gamification technology that has been powering our growth since 2016. For Soft2Bet, 2023 was complemented by substantial growth. While achievements such as expanding our regulatory and licensing footprint are important for our corporate development, they must be backed up by strong commercial growth. I’m glad to confirm we combined the two very successfully in 2023.
In 2024, how will AI and financial technology become further integrated into online gaming?
Artificial intelligence and fintech are already integrated as key components of our operations and their roles will become even more important in 2024. AI, as we have seen with other industries such as music and film streaming (i.e. with Spotify or Netflix), helps with personalisation and customisation of offers through our CRM and bonusing tools. Being able to offer players frictionless payments and a full range of fintech
options is key for the iGaming industry as it enables deposits, withdrawals and transfers efficiently and quickly. Any friction or slow processing is the biggest barrier to player signups. For Soft2Bet, we are also looking to bring gamification to fintech with the objective of increasing the engagement levels of fintech customers, so they interact with the apps via customer rewards and achievements, leaderboards and social features.
This year, you have gained gaming licences in several countries across Europe, such as Italy, Greece and Romania. What are your plans for expansion in 2024?
Regulatory expansion has always been part of our roadmap and we’re very happy to note the progress we have made on those plans. Those three countries are key regulated markets, and our corporate development strategy has been a combination of commercial growth and expanding our regulatory footprint. Therefore, it is extremely satisfying to see that we have been successful in combining these two objectives. For the forthcoming year, we plan to continue growing in those markets as well as in Sweden and Denmark, where our Betinia brand is performing very strongly. In addition, we have major plans in new jurisdictions such as Ontario and New Jersey, where we are currently going through the licensing process. Launching in North America will be another milestone for us and our highly gamified MEGA products will continue to play a key role in our commercial growth.
Your pursuit of regulated markets suggests you are committed to responsible online gaming. How will further regulations impact your rapid expansion in the year ahead? Responsible gambling has been part
of Soft2Bet’s DNA for many years ,so we look forward to working in regulated markets and further expanding our regulated footprint in the coming months. In addition, we believe our MEGA gamification platform is ideally suited to these environments as it delivers commercial growth through player engagement; and combines this with responsible gambling and player safety.
What trends do you think will drive online gaming in 2024? Gamification and responsible gambling will continue to be major influences on the industry, while AI and how to make best use of the technology will continue to dominate discussions. Product development is such an important aspect of my work, and means I am constantly improving and optimising all aspects of user experience/interface for our players.
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INSIDERS THOMAS SCHMALZER
Galvanising game development Gambling Insider speaks to Novomatic’s VP of Global Sales & Product Management, Thomas Schmalzer, about AI’s impact on game development and the appeal of immersive land-based casino services versus the online guarantee of anytime, anywhere How do you see the role of AI impacting land-based product offerings in 2024?
Tell us about Novomatic’s plans for 2024, Thomas.
The strong rebound after the Covid-19 pandemic for operators and manufacturers worldwide led to increased demand for gaming technology. In 2024, we keep our innovative momentum and carry on supplying our customers with stateof-the-art solutions for their land-based gaming offerings from slot machines to casino management systems, cash handling solutions and sports betting equipment. The area of online, mobile and social gaming activities in particular has also been experiencing significant growth for several years, and we will therefore continue to focus on online activities in 2024. In this context, Greentube as Novomatic’s Digital Gaming and Entertainment Division has successfully expanded its international portfolio in the areas of software development, as well as system and platform technology through several strategic acquisitions. Continued growth in the emerging sports betting segment can also be seen in the US market, as more and more states regulate sports betting and casino operators expand their offerings as a result. We are particularly pleased to see that they are increasingly relying on Novomatic.
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Novomatic has always had a positive attitude towards new technological developments. This also includes dealing with the various possible applications of artificial intelligence (AI). Digitalisation offers enormous opportunities for business and society but we need a responsible approach to the technical progress that is driving this trend. AI will impact game development, performance analytics, process optimisations and cost structures, as well as time to market in all industries and therefore also in gaming. A responsible approach, data protection and IP rights will be crucial for the success of using this new technology. The challenge for our industry will be to devise AIdriven features in our product portfolio that generate added value to players and operators alike. Novomatic’s approach to AI will take this into account in providing solutions.
Land-based casinos offer a more immersive gaming experience, with technology increasing the quality of graphics and sound available to customers. Do you think these developments will keep driving customers to land-based products in the year ahead?
Today, the range of games of chance on offer is probably greater than ever before. Players are faced with a choice of countless gaming options in land-based casinos and online casinos – both offer exclusive advantages. Land-based casinos offer tailor-made services that are in no way inferior to the entertainment on offer in Las Vegas. This great popularity is undoubtedly due to the exclusive and attractive offers. The unique atmosphere, elegant design and elaborate decoration ensure that players feel particularly comfortable in this attractive environment. One of the main advantages of regulated online casinos is the constant availability of games from any device, any time, anywhere. Even though some casinos have a satisfactory
selection of games, the digital catalogue offered by online casinos is much more extensive. Novomatic provides land-based operators with products that can differentiate their service and offering significantly from online casinos. The best examples are premium cabinets, personalised service through player management solutions and systems, and highresolution content for every player preference.
How will regulations potentially impact the offering of land-based products in 2024 from a supplier point of view?
Novomatic’s global footprint implies constant adaptation to changing regulatory environments. It has been our strong point throughout our more than 40-year corporate history to manage such changes and provide adapted products wherever new regulations come up. Our core advantage in this respect is our wide network of own gaming operations, enabling us to quickly recognise and react to market requirements and trends. Our decadelong experience further shows that gaming regulation tends to get professionalised in many markets. This influences our development pipeline positively as it creates opportunities to offer tailor-made solutions to our customers.
Are there any developments on the horizon to further drive the growth of land-based gaming, within Novomatic or industry wide? We strongly emphasise premium products and solutions from the arcade to the casino segment, to enable operators worldwide to differentiate and grow their business. Investment in research and development will remain high, and we will continue to evaluate potential in the coming years. 2024 will see global roll-outs of premium games and cabinets as well as ETG solutions. You will be able to see for yourself which developments we bring to market at ICE London 2024 and G2E Las Vegas 2024, or local gaming shows around the globe!
ALEXANDER BERRAI
INSIDERS
Providing the best solution Deputy CEO Alexander Berrai talks to Gambling Insider about Emerchantpay’s partnership with Pinnacle and how it aims to help operators within the gambling industry How important has Emerchantpay payments partner. Working closely with Pinnacle, been in Pinnacle’s expansion in Ontario? we provide support every step of the way as Emerchantpay played a key role, providing comprehensive support to enable the successful expansion of Pinnacle in Ontario. Navigating the nuances of local payment regulation and requirements, our partnership ensures a stable, secure and compliant solution to support Pinnacle’s successful launch in the new market. We are committed to delivering services tailored to the unique needs of our clients and local markets around the world.
Where does Ontario rank among the markets Emerchantpay currently operates in?
We provide a global payment solution which requires our teams to stay on top of local payment method adoption, local legislation and other market requirements for us to successfully expand our international footprint. Ontario is an example of how Emerchantpay can quickly adapt to our client’s plans to enter a new market with evolving requirements and rules.
What are Emerchantpay’s own expansion plans?
We are constantly expanding our global footprint. Emerchantpay currently operates offices in 19 countries including the UK, Germany, The Netherlands, Brazil, the US, India, Cape Town and Dubai. Our plans include further increasing Emerchantpay’s presence in Latin America and Asia; as such, we are looking to expand our local presence in these regions as early as 2024, with Mexico coming up next. Our firm belief centres around constantly improving our capabilities to not only meet our clients’ expectations but to ensure they have all the needed payment solutions in place so that they’re well-positioned for success.
How important was it to extend Emerchantpay’s deal with Pinnacle?
Our long-term partnership with Pinnacle not only reinforces their confidence but also highlights Emerchantpay as a trusted and reliable
they venture into new markets. The extension of this partnership is a result of mutual trust and a shared commitment to continued success.
How do Emerchantpay’s payment services give a competitive edge within the gambling industry?
The secret is our team! Our people across departments including product, risk, compliance and sales, have years of experience in the gambling industry. Their knowledge, insights, in-depth understanding alongside keeping up with the latest card schemes requirements, regulations and product needs as well as a personal service – our clients can speak to people dedicated to their account rather than having to call a helpline – shape our competitive edge. Having more than 20 years of experience in the payments industry as a trusted organisation adds further value.
How important are Emerchantpay’s services in improving revenue for operators in the gambling sector?
A speedy reaction to constantly evolving requirements is key. This could mean new payment method integrations or adaptations to changes in local regulations like in Ontario, so our clients can successfully enter new markets. Furthermore, we work closely with operators to constantly improve their acceptance rates, while constantly ensuring fully compliant risk and compliance measures are in place. This establishes a solid foundation so operators can maximise their revenue.
Can you explain how Emerchantpay’s risk management protocols work to protect both operators and players?
Our risk team works closely with operators to ensure both are protected. Our solution extends beyond real-time transaction monitoring, advanced fraud prevention tools and diligent compliance checks, to offer a secure payment environment that operators and players can
trust. Recognising the unique risk requirements in each market, our solution is tailored to fully align with these requirements. For example, in our partnership with Pinnacle for their expansion in Ontario, the local authorities required the establishment of deposit limits for players, and the assurance of protection of both players and operators.
What challenges has Emerchantpay faced with regard to fraud prevention?
Our fraud prevention and risk management strategy is an area we continuously invest in and innovate to stay ahead of the curve. While fraud challenges emerge every day, we adhere to a multi-faceted approach to mitigate fraud risks. Among the frequent challenges today, we acknowledge increased attempts of phishing and other payment data breaches, which are unsuccessful when it comes to our systems thanks to our vigilant fraud prevention solutions. Emerchantpay is constantly implementing sophisticated and secure authentication methods, improving payment security and ascertaining a resilient defence against the ever-expanding spectrum of cyber threats; be they familiar, emerging or entirely unforeseen.
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FEATURES
PRODUCT REVIEWS
WHAT’S NEW ON THE MARKET? A new year means new products for the gaming industry. We look at what's hitting the market as we turn a new leaf into 2024... WILL ONEWATCH BE THE ONE TO WATCH? Gambling Insider explores the latest features and potential of this new solution. Part of the BetMakers Technology Group, Global Racing has announced its new wagering terminal monitoring and analytics tool that is to be used alongside the BetLine Series of terminals. The OneWatch solution aims to provide operators with everything they need, by centralising performance and data into one integrated dashboard. The platform updates with real-time data, so that management can make assessments on live information, rather than basing decisions
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on old and outdated information. This includes real-time status, alerts and visual indicators on customer behaviour, as well as resource allocation and maintenance for the systems. While there is an emphasis on real-time streams of data, that doesn’t exclude the importance of holistic and archived data either. The dashboard collates the data and allows for historical analysis, performance evaluations and trend prediction. The solution does focus a lot on the health and status of the BetLine Terminals. OneWatch has a range of markers that it constantly checks for to monitor the health of a terminal system, with instant alerts and indicators that not only
flag when something has gone wrong, but the severity of the problem too. OneWatch has also figured out that it’s rarely a one-person job when it comes to fixing technical issues too. In a rather innovative move, the solution has a Collaborative Setting, meaning that teams can come together to easily discuss the information and plan a coordinated response. For the little problems, OneWatch has that covered. With its automated features, OneWatch can trigger predetermined actions when particular conditions are met – meaning that operators can put their time, resources and energy into managing the things that really matter.
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ZITRO DOUBLE LINK While not exactly new on the market, this video slot product has gone live at the newly relocated Casino Bilbao. Hosted on the Illusion Glare gaming cabinet, the Double Link library of games comes preinstalled with four titles that are exclusive to the product; Anubis Pharaoh, Enchantment’s Dragon, Mystic Empire, and Indian Wolf. The video slots offer five reels and 243 ways to win and a multi-game progressive link, while the game itself is run on a next-gen processor. Additional features include free games and spins, extended wilds and a bonus specific to the progressive link. Imagery from the video slot games vary, depending which title is being played. While Anubis Pharaoh features wilds in the shape of Sphynx statues and cats, Mystic Empire has symbols consisting of dragons and eagles. The Double Link games display the current Mega and Super jackpot tiers above the reels themselves, so that customers can always see what the totals are at the time of playing. The cabinet itself has a 43” ultra HD curved touchscreen, developed for better accessibility for customers, as well as a SmartDeck digital keypad and LED halo. The Double Link library has most recently been installed at Casino Bilbao in
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Spain, only strengthening its presence in the country. Jaime Aníbal-Álvarez, Zitro Director of Casinos Spain, said: “We’re thrilled to introduce our latest offering to Casino Bilbao, elevating the entertainment experience for
its customers. We believe Luckia’s significant commitment to Zitro products will bring positive outcomes for all”. The Double Link from Zitro has previously been released in Gran Madrein, PlayCity, Gran Canaria Casino and Casino Colón.
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EASYPAY PRODUCT REVIEW: THE EASYBET 9 EasyPay is a Romanian group of companies with global presence and 13 years of experience as a self-service kiosks and solutions manufacturer. It has now launched the newest technology with regards to Sports Betting Terminals.
Getting our clients used to customising their products and providing advantages, such as: • Storage orders in 2000 sqm • Check room for soft implementation and last check before packaging the kiosks • Support in delivering products directly to the final locationTechnical support
"EasyPay is a Romanian group of companies with global presence and 13 years of experience as a self-service kiosks and solutions manufacturer"
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All EasyPay products are registered and Certified with CE, ISO9001:2015 and all European quality standards. The company generates sales of more than 4 000 kiosks annually, the main products being the payment terminals and sports bets terminals which comes in a variety of more than 10 different designs, between 19 inch and 43 inch monitor size, any model of printer, bill and coin acceptor or dispensers, RGB LED lighting and personalised with customer logos. We developed and implemented on a secondary level, solutions for fields such as: retail, HoReCa, parking, transport, crypto, hotels, insurance, fitness, auto and much more. The EasyBet 9, the last model launched in the market this autumn, comes with a 43” LED Curved Touch Monitor which can be split into three different monitors by the choice of customer. The model is specially created for premium locations and will be used in the intimacy of each gambler offering a high experience during their betting.
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FINAL WORD CEO of Relax Gaming, or RLX Gaming as it will be known in the American market, Simon Hammon speaks to Gambling Insider about entering the US and the challenges presented by differing regulations in Europe Have there been any new developments at Relax Gaming or RLX Gaming? The North American, and US market at large, has been on our radar for quite some time and we are eager to make a significant impact across these shores considering the substantial potential. Following on from our debut in Ontario last year, we were confident in our ability to further expand across North America, and we are thrilled to have just entered New Jersey with BetMGM, our first launch in the US market. We anticipate that this will lay the foundation for a concerted effort to seize the many opportunities the US market provides and expand our footprint. The US iGaming landscape is incredibly exciting and constantly evolving. We have a strong focus on the region and we are well prepared to tackle any challenges that may lie ahead and ultimately hit the ground running in the states we target next. As the iGaming industry continues to grow, what innovations are you undertaking to try to make Relax Gaming/RLX Gaming stand out? To start with, we wanted to showcase our varied portfolio and use each title to gauge what American players enjoy. Included among the
initial batch of content are The Great Pigsby and Epic Joker slots. Table games will follow in the near future, which after extensive research, we understand are incredibly popular in the US. In addition to the table games, we decided to focus on slots with varying levels of volatility, to gain insight into player behaviour and get a handle on their preferences. We also wanted to highlight content from our tumble series, as well as our all-time classic, Money Train 3. The game forms part of the Money Train franchise, which has enjoyed success in markets worldwide. The only difference will be that this release will be titled Great Western 3 across American shores. What challenges have you faced with regards to evolving regulations and laws, especially in the European market? The European market has differing rules and regulations from country to country, with regulators looking to find that perfect balance of making a vast array of content available to players while also keeping them safe. Getting to grips with the changes in each jurisdiction that has legalised online betting can be a minefield, as can preparing for brand new regulations that may well come into play for new areas hoping to legalise. These ensure our compliance and regulatory teams are
“The European market has differing rules and regulations from country to country, with regulators looking to find that perfect balance of making a vast array of content available to players while also keeping players safe” 130
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kept on their toes, but there is nothing that has proved to be too difficult for them thus far. 2023 continued our acceleration in Europe as we were granted the new Swedish B2B permit, allowing us to operate in Sweden, and provide a wealth of safe and entertaining wagering opportunities. What benefits have you seen from your promotional suite, Relax Rush®, since it was launched in September? We saw great success with Relax Rush®, as our operator partners saw improved retention rates and engagement levels hugely increase. We’ve launched over one network campaign per quarter in the last 12 months, with cash drops and tournaments aplenty. In the last year, we have hosted 15 network tournaments and five network cash drop campaigns, creating more than 9,000 lucky winners landing a huge €1.5m ($1.6m) collectively, and this is just the beginning. For 2024, we plan on branching out our campaigns even further, allowing operators to create local network campaigns. This will help our operator partners reach their targets faster than ever. Relax Gaming is always looking for new ways to make the Relax Rush® promotional suite even more worthwhile while helping to raise standards in iGaming. Are there any new game launches you currently have planned that you can tell us about? One of our most recent releases, Lure of Fortune, has been incredibly well received. This title offers something completely novel and unique, enabling players to choose their game mode and level of volatility, which can be tailored to individual player preferences. We have a roadmap for 2024 and we can’t wait to release what we believe will be an exceptional batch of new content. Watch this space!