Gambling Insider: Sports Betting Focus 2020

SPORTS BETTING FOCUS

INSIDE: • Sustainable VIPs • UK horseracing

overhaul • Rebranding with GVC

March 2020

Let the games begin Complete betting analysis of the UEFA European Championships and Olympic Summer Games

las veg a

la

s 202 0

s vPartner eg a s Lead

Category Sponsors

In Association with

Powered by

EDITOR’S LETTER

COO, EDITOR IN CHIEF Julian Perry ACTING EDITOR Carl Friedmann Carl.Friedmann@gamblinginsider.com Tel: +44 (0) 207 739 9908 SENIOR STAFF WRITER Tim Poole Tim.Poole@gamblinginsider.com STAFF WRITERS Owain Flanders Owain.Flanders@gamblinginsider.com Iqbal Johal Iqbal.Johal@gamblinginsider.com Ezra Amacher Ezra.Amacher@gamblinginsider.com LEAD DESIGNER Laura Fogar DESIGNERS Rebecca Lydamore, Olesya Adamskar

Julian Perry, COO, Editor in Chief

Carl Friedmann, Acting Editor

Based on the windfall from the 2018 World Cup Finals, in terms of player acquisition and staggering revenues generated, operators are wide-eyed to build on that momentum for this summer’s UEFA European Championships.

The format changes – games spread across 12 countries and, again, a total of 24 teams like in 2016 when the idea was introduced – will certainly impact offerings as well as betting behaviour, and we drill down into the granular details starting on page 10. Just as momentous, but unanimously accepted as a second-place finish as a betting spectacle, the Summer Olympics will bolster the 2020 summer of sport. The time differences between here and there – wherever here may be – raise unique challenges, but niche sports offer unique opportunities to cash in. So we anticipate the elation and despair that only sports – and sports betting – can deliver.

But we would be derelict in our journalistic duties if we didn’t address the elephant in the room – a room with hand sanitiser stations in every corner.

As we start to see a succession of major football games being played to thousands of empty seats in efforts to contain, or at least slow, the spread of coronavirus, we can’t help but brace for the prospect of both the Euros and Summer Games being played in silence, postponed or cancelled altogether.

It’s nothing we want to bet on, but the reality is we have to consider it.

CONTRIBUTING THIS ISSUE

DESIGN ASSISTANTS Radostina Mihaylova, Louise Clark EVENTS MANAGER Mariya Savova PRODUCTION CONTROLLER Emily Jackson WEBSITE MANAGER Tom Powling COMMERCIAL DIRECTOR Deepak Malkani Deepak.Malkani@gamblinginsider.com Tel: +44 (0)20 7729 6279 BUSINESS DEVELOPMENT DIRECTOR, MALTA Oz Mustafa Oz.Mustafa@gamblinginsider.com Tel: +356 3550 0485 EVENTS SALES MANAGER Ryan Horwood Ryan@globalgamingawards.com +44 (0) 208 638 7610 SENIOR ACCOUNT MANAGER William Aderele William.Aderele@gamblinginsider.com Tel: +44 (0)20 7739 2062 ACCOUNT MANAGERS Michael Juqula Michael.Juqula@gamblinginsider.com Tel: +44 (0)20 3487 0498 Clive Waite Clive.Waite@gamblinginsider.com Tel: +44 (0)20 7729 0643 Richard Carr Richard.Carr@gamblinginsider.com Tel: +44 (0) 203 435 5624 Nitesh Patel Nitesh.Patel@gamblinginsider.com Tel: +44 (0) 207 739 5768 US BUSINESS DEVELOPMENT MANAGER Aaron Harvey Aaron.Harvey@playerspublishing.com Tel: +1 702 425 7818 US ACCOUNT MANAGER Erica Clark Erica.Clark@playerspublishing.com Tel: +1 702 430 1912 CREDIT MANAGER Rachel Voit WITH THANKS TO: Kevin Dale, Paul Fox, Jesper Svensson, Sabrina Soldá, Andrea Dassopoulos, Ted Hartwell, Max Dubossarsy, Ranjana Adhikari, Kenny Alexander, Ron Segev, Nikolay M, Sam Bourne, Josh Jolliffe Gambling Insider magazine ISSN 2043-9466 Produced and published

by Players Publishing Ltd

KEVIN DALE

Director, Gaming Monitor

4

GAMBLINGINSIDER.COM

JESPER SVENSSON

Group CEO, Betsson

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.

14

10

22

26

28

CONTENTS COMMENT

FEATURES

8 A POST-PASPA REVIEW

18 AN UNPARALLELED EXPANSION

We review the NFL gambling market in the US since PASPA was overturned

28 THE STATE OF PLAY IN INDIA The country’s attitude towards sports betting weighed against fantasy sports

30 THE CASE FOR REBRANDING

COVER FEATURES

BtoBet CMO Sabrina Soldá details the African market and favourable factors for both suppliers and operators

10 A GOLDEN OPPORTUNITY

20 PROBLEM GAMBLING

32 SUSTAINABLE VIPS

14 A CAREFULLY BALANCED OPPORTUNITY

22 UK HORSERACING

A preview of the UEFA Championships and betting behaviour in light of the new format

Tim Poole previews the 2020 Tokyo Games, with comment from leading industry CEOs

Ezra Amacher looks into how problem gambling is being addressed in the US, where sports betting is booming With five bookmakers signing up to a new streaming deal based on turnover, we analyse the potential benefits

26 THE SUPPLIER’S PERSPECTIVE

BetInvest COO Max Dubossarsky speaks about their plans for Euro 2020 and the Olympics

6 GAMBLINGINSIDER.COM

We assess the efficacy of GVC’s 2019 safer gambling drive

ICE London panelists discuss current challenges

FINAL WORD 34 A BROAD OFFERING

Bettson Group CEO Jesper Svensson discusses the upcoming summer of sports betting, with an emphasis on the operator’s focus on its new B2B platform

COMMENT

OWAIN FLANDERS

A post-PASPA review Gambling Insider reviews the performance of the NFL gambling market in the US since PASPA was overturned, and takes a look towards its potentially bright future As the Kansas City Chiefs lifted the Vince Lombardi Trophy this year in Super Bowl LIV, more than 102 million people in the US eagerly watched it on television. Although the sport perhaps doesn’t hold as much global significance as its English namesake, Americans’ love for American football is unquestionable.

When PASPA was overturned in 2018 and the floodgates for US sports betting flung open, the country’s relationship with its beloved NFL became even more significant. As the nation’s most popular sport (based on average TV viewership), American football provided the greatest opportunity for operators entering the market to attract new US bettors. Now almost two years on, there are 13 states in which US adults are able to legally bet on the NFL. So how is the market performing so far?

According to a national survey commissioned by the American Gaming Association (AGA), more than 38 million American adults–15% of the US adult population–planned to bet on the NFL last season, with this increasing to 39% for avid fans of the league. The number of bettors who said they would place their bets in-person at a casino sportsbook was 6.9 million, up 21% from 2018. No doubt this was music to the ears of land-based operators, demonstrating a significant shift away from the ‘black market’ of illegal bookmakers and offshore sites.

Recent reports show the expectation generated by these predictive surveys was not ill-founded. According to an

8

GAMBLINGINSIDER.COM

AGA report released at the beginning of 2020, the US saw $13bn wagered on the NFL during 2019, almost double the figure of $6.6bn in 2018. States with legal sports betting earned a total of $118m in tax revenue from this. With these updated figures, the total wagered by American players on the NFL since PASPA was overturned is more than $17bn–adding up to $1.2bn in sportsbook revenue.

This strong performance is also reflected in statistics provided by sports betting operator Kambi. In a summary report including data collected between 5 Sep 2019 and 31 Dec 2019, American football secured its position as the operator’s most popular sports betting market in the US, becoming the fourth most popular in Kambi’s entire sports betting network after football, tennis and basketball. NFL half-time betting was particularly high, with 25% of the league’s turnover occurring during the midway break in a game. This is significantly more than the second highest of 14% for the NBA and 10% for the English Premier League.

Evidently, Amerians’ love for the NFL also provides opportunities for operators to create new customers in the legalised states. In the same Kambi report, 41% of first-time bettors placed their first wager on an NFL game, in comparison with MLB in second place with 16%. This also provides a gateway for cross-selling with the other North American major leagues, with 58% of NFL handle being produced by bettors who wager on each of the other five top leagues also including the NHL, NCAAF, NCAAB, MLB and NBA. As the biggest event in the NFL calendar, the Super Bowl provides an annual opportunity for operators to cash in on the market’s strong performance. Although actual figures are yet to be released, in the lead up to Super Bowl LIV, the AGA unsurprisingly predicted an increase in the amount of wagers placed year-on-year. Bill Miller, AGA President and CEO, announced an expected wagering amount of $6.9bn accounting for both legal and illegal bets–an increase of 15% from the prior year. An additional survey conducted by Morning Consult suggested approximately four million people would wager on this year’s Super Bowl at brick-and-mortar sportsbooks, an increase of 25% from 2019, with five million to place a wager through an online or mobile platform, a rise of 19%.

The increase in NFL wagering is also expected to have a positive impact on US adult participation with the league, both in TV and stadium viewership. As President and CEO of the AGA, Miller is very aware of how the league can benefit from the spread of legalised sports betting. “The size of the audience and the amount wagered is clearly growing with the legal market,” he said. “The NFL accounted for 78 of the top

OWAIN FLANDERS

100 telecasts and nine of the top 10 last year. When Americans have skin in the game, it’s clear they’re more likely to tune in.”

Clearly, as Miller suggests, this is a two-way street. As a result of increased fan engagement through sports betting, AGA research suggests the NFL stands to make $2.3bn every year from a widespread legal sports betting market. In the same survey, 75% of participants said they were more likely to watch a game they had money on, while 63% said they are more likely to gather with friends or family to watch a game in the same case.

It’s clear that wagering on a team is a sure-fire way to create interest in a game for a neutral, or even generate greater excitement for a fan with an invested interest; so how many Kansas City Chiefs or San Francisco 49ers fans will have bet on their teams in the Super Bowl this year?

If they are within the confines of their own state, then the answer is zero (legally anyway).

Despite being the home states of the two Super Bowl competitors, neither California nor Missouri have yet legalised sports betting at the time of writing. However, all of that could change in 2020 as legislative discussions ramp up. There are now 14 states currently aiming to legalise sports betting within the year, including the two Super Bowl states. This could potentially double the number of states with legalised sports betting, undoubtedly having a major impact on the already fast progressing NFL market.

After taking a historically cautious approach towards sports betting, this year could also see the effect of the NFL’s increased acceptance of the gambling industry. In 2018, the NFL Commissioner Roger Goodell expressed concern over the Supreme Court’s decision to repeal PASPA, suggesting the potential development of unforeseen issues that could bring the league’s integrity into question. However, last year indicated a significant shift towards the NFL’s increased acceptance of sports betting. Now, the NFL has a number of sports betting operator partnerships in place, including a Daily Fantasy Sports (DFS) partnership with DraftKings, a casino partnership with Caesars and a sports betting data partnership with Sportradar.

COMMENT

Speaking after the announcement of the league’s DFS partnership with DraftKings, Renie Anderson, the NFL’s Chief Risk Officer, expressed his excitement over the deal as a way to provide the league’s millions of fans with “ways to interact with and enjoy the NFL”. In light of the results of the AGA’s study into NFL participation, it can be assumed the league now sees how a legalised sports-betting market can be beneficial moving forwards. This new perspective could allow all interested parties to nurture the market to exceed expectations further.

As more states legalise sports betting throughout 2020, the US’ NFL wagering market will surely only continue to build on post-PASPA successes. Now, with the active participation of both those within the industry and the league itself, it’s hard to imagine that wagering records won’t be regularly broken for years to come.

“The size of the audience and the amount wagered is clearly growing with the legal market.

The NFL accounted for 78 of the top 100 telecasts and nine of the top 10 last year. When Americans have skin in the game, it’s clear they’re more likely to tune in” - Bill Miller

GAMBLINGINSIDER.COM

9

COVER FEATURE

EUROS 2020

A golden opportunity Owain Flanders previews this summer’s UEFA European Football Championships

10

GAMBLINGINSIDER.COM

EUROS 2020 Ask the members of the Gambling Insider editorial team how they spent the summer of 2018, and their faces will light up like retired footballers recalling their glory days.

It was a special, sun-drenched period for English football fans, full of packed-out beer gardens, sunburnt bodies and, most importantly, the FIFA World Cup in Russia. This was a tournament to remember for a number of reasons but none more so than for the performance of the England national football team, who were able to not only spare fans their usual disappointment, but vastly exceed even the most ambitious expectations.

This summer will see football fans glued to their screens once more as the UEFA European Football Championships (Euros) kick off in June. However, it isn’t just the Gambling Insider team hoping the tournament will live up to its predecessor. The 2018 World Cup also meant major success for gambling operators, who were able to cash in on its immense global popularity. In fact, according to figures released by FIFA, more than 3.5 billion people viewed at least some of the tournament on TV. The impact of this on betting figures is clear to see–particularly in the UK. A YouGov survey investigating the competition’s betting data found that six million adults in the UK placed a bet during the World Cup in 2018, either in a high-street bookmakers or online.

More than one million of these gamblers had never placed a bet on the sport before. The tournament also proved vital for player acquisition, with more than two million new accounts opened on online betting sites during the period.

Based on the successes of 2018, bookmakers are understandably expecting another major pay day when the Euros roll around. But before predicting how successful they could be for operators, there are two important factors to consider in the competition’s 2020 format.

In 2016, UEFA increased the number of teams in the tournament from 16 to 24, adding a further 20 matches to the competition’s schedule. Although this new format has since received criticism from multiple sources–including German national team coach Joachim Low, who insisted the change had led to a decline in quality–UEFA has decided to stick with the format for this year’s Euros.

In addition, in a bid to allow more fans to attend the games, this year the matches will be hosted across 12 different European countries. Contrasting with the competition’s usual single-host format, this will allow multiple nations to share the hosting responsibilities, with England, Spain, Italy and Russia all included.

It would be safe to assume both of these factors will have some level of impact on betting behaviour and operator profits. To get some gauge of this, Gambling Insider spoke with both James McKiernan, Commercial Director–Europe at Betgenius, and Josh Jolliffe, Sales Director–Europe and Africa at Genius Sports Media.

Holding an optimistic outlook for this year’s competition, McKiernan says he expects the additional 20 matches to have a certain impact on the type of betting operators might see.

The post-2016 format now means an increased likelihood of two or three matches being played on the same day, something McKiernan says lends itself to accumulator betting “like a normal domestic match day”. With more opportunities for operators to take multiple bets, undoubtedly this will have a positive impact on profit.

However, these are not the only accumulators McKiernan expects. According to Betgenius figures, same-game accumulators were also a major success at the 2018 World Cup, consistently driving 25% margin for the data supplier’s partners across Europe, LatAm and Africa. Explaining the popularity of these accumulators, McKiernan says it’s because they allow “jackpot style, long-odds betting on every game”–something very attractive to a lot of bettors. He expects this popularity to continue into the summer, especially with such a high volume of games per day.

COVER FEATURE

Mirroring McKiernan’s optimism, Joliffe suggests the expanded competition will also create greater opportunity to “maximise customer acquisition and value” for the same reasons, but has a warning for operators in regards to retention. He says: “Given the increase in competition size, there is also a larger likelihood of churn if the right retention strategy isn’t in place. Cultivating loyalty for as long as possible will be one of the main challenges to overcome, made harder by the fact most punters have multiple accounts and are subject to sign up offers on a daily basis.”

Joliffe’s answer to the increased churn risk? He suggests the customisation of marketing campaigns to ensure the customer remains engaged during the entire tournament. By combining knowledge of their player base with in-play data and tournament statistics, Jolliffe believes operators can ensure sportsbooks stay “relevant and appealing,” allowing them to make the most of the highly anticipated sporting event.

However, Jolliffe believes this is a tactic that requires a proactive and adaptable marketing team. “Most marketing teams will plan their pre-tournament campaigns well ahead of time but we’ve learned over the years how important it is to adapt your marketing strategies based on match results and in-play events,” he says.

Potentially the most drastic change for the Euros 2020 is UEFA’s decision to select host cities for the competition rather than a single host country. In the words of Fifa President Gianni Infantino, the aim of this is to allow football fans to “have a

“Cultivating loyalty for as long as possible will be one of the main challenges to overcome, made harder by the fact most punters have multiple accounts and are subject to sign up offers on a daily basis.”

- Josh Jolliffe

GAMBLINGINSIDER.COM

11

COVER FEATURE

EUROS 2020

party all over Europe”. However, it will also undoubtedly affect gambling behaviour, particularly within the markets of the chosen countries.

Industry veteran Kevin Dale has over 20 years of experience within the gambling industry. Speaking with Gambling Insider, he says the new multiple host format has both its positives and negatives for operators. While Dale is certain an increase in hosting participation will lead to “wider fan engagement across the continent,” he also believes the new format could make life difficult for traders, who won’t be able to rely on a home nation advantage when calculating prices.

Dale says: “International matches were always more difficult to price up than national leagues and cups, primarily because teams meet less frequently and so odds and rankings are based on shakier foundations.

“Through the new qualifying process, most teams played a couple more competitive fixtures in 2019 than they would have previously in a non-tournament year. This helps a little, but bookmakers now have to perform a ‘finger in the wind rejig’ of the country home advantage formula they would use for the World Cups and Euros.” Undoubtedly, this factor could make markets

“Through the new qualifying process, most teams played a couple more competitive fixtures in 2019 than they would have done previously in a non-tournament year. This helps a little, but bookmakers now have to perform a ‘finger in the wind rejig’ of the country home advantage formula they would use for the World Cups and Euros.”

- Kevin Dale

12

GAMBLINGINSIDER.COM

unpredictable for traders, which, as Dale concludes, “is great news for the punters.”

One example of this lies in the pricing of England’s chances of lifting the trophy. England are currently favourites to win the tournament with bookmakers, at 4/1 with Sky Bet and 9/2 with Bet365. This is despite the team not having won a major trophy since 1966 and placing fourth in the last World Cup behind Belgium, Croatia and France–all participating in the Euros at longer odds. In fact, although Croatia effectively came second in the World Cup only two years ago, a bet on them to win the Euros will give odds of 25/1 with Sky Bet, a higher price than even Italy, a team that failed to qualify for the 2018 World Cup entirely.

Undoubtedly, home team advantage has played a significant role in this pricing, with England playing host to most of its team’s group games, the semifinals and the final. Unlike both England and Italy, Croatia will not host any games–suggesting a main reason for its national team’s high price. However, Dale argues traders may be giving too much weight to the effects of a home advantage, particularly considering England would still have to make it through their last 16 and quarterfinal matches if they were to reach the final–both of which would not be played at home.

With this potentially hazardous pricing situation, the multi-host format could be both a blessing and a curse. However, the expanded size of the tournament and its continued popularity should help grow similar numbers to those we saw in 2016. With this in mind, what are expectations for the Euros? Can it really live up to the dizzy heights of the 2018 World Cup? Financial results following the last Euros competition in 2016 certainly set the bar high. Operator Kambi hailed the Euros as one of the main reasons behind its strong performance in Q2 2016, with Kristian Nylén, the operator’s CEO, describing a “remarkable increase in turnover” from the event. Kambi saw revenue of €13.7m ($14.9m), a rise of 28% year-on-year, with operating profit doubling at €800,000. Unibet also saw good numbers, with the tournament reportedly driving record levels of sports betting. The operator generated a “new all-time high” in gross winnings revenue at £126.6m ($163.7m) for Q2 2016, up 57% from the previous year.

Based on these numbers, operators should expect significant profits when the Euros come around again in June; something particularly true for those bookmakers active in a number of European countries. Speaking with Gambling Insider in February, Kindred CEO Henrik Tjärnström went as far as to claim the Euros will be the operator’s biggest-ever event. This is mainly due to the number of its active markets participating in the competition, with a pleasantly surprised Tjärnström concluding that “even Finland” had qualified this time around.

All of this suggests the Euros 2020 will be a golden opportunity for operators. The maintenance of the expanded format will only increase the potential for significant profit; allowing operators to capitalise on opportunities to acquire and retain customers with effective marketing strategies. Meanwhile, although it could make life difficult for the industry’s traders, the multi-host format should allow for widespread fan engagement, breeding larger gambling participation numbers as a result.

As an England fan, I can only hope my team’s chances of lifting the trophy look half as bright–but I won’t hold my breath.

COVER FEATURE

TOKYO 2020

A carefully balanced opportunity Tim Poole previews the 2020 Tokyo Olympics from a betting sector point of view, as industry CEOs talk him through their plans for the event

14

GAMBLINGINSIDER.COM

TOKYO 2020

COVER FEATURE

revenue will stem from the popular markets, certain sports will make a far greater impact in particular countries or markets.

With the UEFA European Football Championships coming up this summer, betting and gaming companies can breathe a huge sigh of relief when publishing their H1 and FY results for 2020. Handle will increase. Revenue will increase. Player acquisitions will increase. As a result, however, the Summer Olympics are rather unlucky, as they sit lower down on company priority lists than the summer’s major football tournament. Still though, the Olympics–like any major sporting event–presents opportunity.

Garnering worldwide interest, this year’s Tokyo Olympics can be seen as the ‘little brother’ of the sporting calendar from a betting point of view: not generating anywhere near as much as the Euros but still creating enough activity to warrant serious strategic consideration.

While events like the men’s 100 metre final will be sure to attract wagers, there will naturally also be a sizeable audience within the Asian market, considering the event takes place in Japan. Below, Gambling Insider consults industry CEOs to preview what sports betting firms should be assessed in the run-up to both events.

The popular markets Speak to any trader and they’ll tell you the Olympics will be nowhere near as popular as the Euros this summer–nor is it ever likely to be when pitted against a continental football tournament or the FIFA World Cup finals. But there’s always a gap in the market; room to attract a different audience and explore new niches. There’s also the chance to zone in on the most popular sports the Olympics has to offer, cherry-picking the biggest events. Paul Fox is CEO of Asian-facing online operator LeTou and this summer he says football and basketball will generate “significant revenue” in Tokyo.

“They tend to be the two most popular sports across the majority of Asian countries,” he tells Gambling Insider, “and there are more bets on the NBA than any other league. Despite the interest from punters in football and basketball, the majority of other sports will have little impact on betting companies and would be far exceeded by major football tournaments, such as this summer’s UEFA European Championships.”

Betsson Group CEO Jesper Svensson shares this sentiment and, speaking to Gambling Insider at ICE London (see p34 for the full interview), admits the Olympics are “nice” but not close to having the same effect as the Euros. It’s something Svensson expects to remain consistent industry wide, a logical presumption given the relative lack of betting notoriety for sports like table tennis, field hockey, archery and more. That said, while the majority of global

Target geographically According to Fox, what matters most for operators is the geographical targeting of promotions. He explains: “The most important strategy when targeting bettors is to ensure promotions are relevant to the country they are from. If you were targeting individuals from Vietnam, you would offer promotions based on athletes or teams from that country to appeal to punters.” Here, operators already accustomed to localising their offerings will have a head start; there can be no one-stop-shop or universal marketing campaigns.

Svensson gives a very relevant example. While the aforementioned table tennis, field hockey and archery traditionally aren’t popular betting sports, if a country has a particular national hero in a given event, this could change. In Sweden, Svensson refers to one of Betsson’s ambassadors, Sarah Sjöström, the “best female swimmer in the world.” A previous Olympic champion, when Sjöström participates, betting levels rise in Sweden–and swimming makes more of a splash, so to speak.

During an event this global in scale, the Olympics are likely to offer several such cases. Kei Nishikori, a Japanese tennis player, will essentially be a home favourite and could receive significant backing from Asian bettors. In badminton, two of the world’s top six ranked men’s players are from Denmark and the other four are from Asian countries. In the Women’s singles, all six come from Asia. Russia, meanwhile, has been banned from competing at this summer’s tournament due to anti-doping violations. Bookmakers would therefore be smart to divert their marketing budgets elsewhere–or monitor for Russian athletes allowed to compete independently.

Asia focus The two biggest factors behind the Asian interest in this summer’s Olympics, as Fox explained, are the events being held in Asia, and the fact it contains two of the most popular sports on the continent. Of the two, Fox says, basketball could be the biggest draw–especially if the Chinese national men’s team faces the US. He says: “With the upcoming Olympic Games taking place in an Asian time zone, we will expect monstrous traffic during the basketball competition in particular.

“If the Chinese national team played the star-studded USA team, then we could see revenue on a par with the FIFA World Cup final Time zones are always critical whatever the sporting

“The most important strategy when targeting bettors is to ensure promotions are relevant to the country they are from. If you were targeting individuals from Vietnam, you would offer promotions based on athletes or teams from that country to appeal to punters.”

-Paul Fox

GAMBLINGINSIDER.COM

15

COVER FEATURE

TOKYO 2020

event, as live betting makes up a huge number of the bets we receive, and we expect to receive a much higher volume of bets at Tokyo 2020 than we did at the 2016 Olympic Games in Rio.” European drawback?

But the issue of time zones raises a potential drawback. With Fox highlighting live betting, this brings into question interest from Europe; after all, at the time of the Olympics, Tokyo will be eight hours ahead of London, seven hours ahead of Stockholm and six hours ahead of Sofia. For Betsson Group CEO Svensson, these time differences are “not ideal”. While organisers have matched times for a global audience “as well as they can”, Svensson says live betting will be impacted, even if pre-match wagering will not.

LeTou CEO Fox is more optimistic. When asked if European volumes will be lower, he responds: “Not really. The time zone is not much of an issue for Europeans, given the events are in the early morning. Typically, there is not a great deal of sport happening at that time so the Olympic Games will not be competing with several other sporting events.” Time will tell, of course, although the point is certainly worth consideration when sports betting companies form their budgets and make their projections.

The acquisition market All things considered, there is still a fantastic, albeit more streamlined, opportunity available for operators this Olympics, especially in the acquisition market. The concept of cross-sell applies to players switching between verticals–from sports betting to online casino, for example–but this can quite easily apply to players moving across sports too. Parimatch CEO Sergey Portnov once told Gambling Insider UFC betting was primarily used to attract new football bettors, and brands could certainly adopt a similar approach during the broadcast of lesser-known Olympic events.

Access levels to new players during the Olympics will, of course, be extremely high. According to a report from the Associated Press in December 2016, Euro 2016 was seen by two billion people on TV, with 600 million watching the final. But for the Rio Olympics of the same year, an International Olympic Committee report shows that 3.2 billion people viewed at least one minute of coverage during the event, and 2.6 billion saw at least 15 minutes. At the same time, there were 7.2 billion video views of official content worldwide.

That’s quite a pool of potential new players.

Advertising backlash?

Accounting for the make-up of this audience though, gambling companies will need to err on the side of caution when advertising within certain markets, especially on TV. Within European jurisdictions such as the UK, Spain, Belgium and more, televised betting adverts are already under great scrutiny, and a major sporting event is all it takes to enhance it to new levels, given families and children will likely form a huge part of the Olympics viewership.

While the Olympics offer the opportunity for acquisition then, it’s crucial operators find the line between tactical marketing and an overt affront to an audience that doesn’t care too much for the product. During the 2018 FIFA World Cup, for example, the Advertising Standards Authority in the UK received 115 complaints from viewers about the number of gambling adverts.

This may not seem a high tally but considering the anti-gambling

16

GAMBLINGINSIDER.COM

“For the Rio Olympics of the same year, an International Olympic Committee report shows that 3.2 billion people viewed at least one minute of coverage during the event, and 2.6 billion saw at least 15 minutes. At the same time, there were 7.2 billion video views of official content worldwide.” climate currently pervading many European countries, a repeat could be all it takes to plunge the industry’s reputation further down its negative spiral. This may not be as much of an issue in countries where the event is shown by public service broadcasters, such as the BBC in the UK, although commercial broadcaster Discovery has exclusive pay TV rights for this summer’s Games as part of a pan-European deal. There is also nothing to prevent operators from advertising around the event on other channels.

Operators should therefore be smarter with their advertising, while also being extra vigilant of the affiliates that advertise their brands to the viewing public. The Olympics would equally be the perfect time to double up on the promotion of responsible gaming campaigns. Far more betting adverts exist on TV now than during the 2016 Olympics, and the sector will no doubt face considerable backlash should it overstep the mark this summer.

A carefully balanced opportunity While there are obvious advantages for betting companies this Olympics, the opportunity at hand can only be maximised by exercising heightened caution and sensitivity. Sports betting businesses are advised to think big when it comes to football and basketball, as this is almost an extension of the regular season–especially in the Asian market. But smaller, more niche sports shouldn’t be ignored where a geographical opportunity lies due to a favoured sportsperson or national hero.

Time zones should be taken into account as well, with those operating in Asia offered a significant opportunity to capitalise on live betting volumes, while European companies need to bear in mind the time difference. Operators are encouraged to make the most of the new acquisitions available as the Olympics will present a much broader audience than the Euros. This too must be approached with care, however, as over-advertising may have an adverse effect on gaming firms in the long term.

In short, while the Euros will be the main priority for sports betting companies this summer, the Olympics offers potential growth in other ways. While it won’t be the most prestigious aspect of 2020 for suppliers and operators, it still offers far more than a quiet summer without any major sporting events at all. If companies can weigh up the right amount of resources to distribute to their Olympics budgets, they can enjoy a far more financially fruitful summer.

You might even say it’s somewhat of a free hit, with those utilising the Olympics correctly likely to gain an edge over those who don’t.

FEATURES

AFRICA FOCUS

An unparalleled expansion BtoBet CMO Sabrina SoldĂĄ provides a detailed dive into the African market, with a number of favourable factors coming together for both suppliers and operators

With the European market characterised by a phase of diminished growth, operators have been casting their eyes beyond the boundaries of the traditionally mature markets, sizing up the opportunities in emerging regions such as Africa. Numbers at hand, the continent has all it takes to rise to the opportunity and put itself at the very forefront of the industry.

This potential growth is further spurred on by an ever ameliorating situation in terms of internet and smartphone penetration.

Consumers now have easy access to online sports betting services even in remote areas. Countries like Nigeria, Kenya, Ghana, Uganda, Senegal, the Democratic Republic of Congo and Tanzania are seeing a huge expansion in sports betting and other forms of gambling.

SPORTSBOOK POTENTIAL BASED ON NUMBERS For the first time ever, according to the International Telecommunication Union,

18

GAMBLINGINSIDER.COM

more than half the world’s population will be using the internet. The agency estimates 3.9 billion, over 51% of the global population, would have gained access to the internet by the end of last year. Already, 90% of those people can use the internet through a 3G or higher speed network, while 96% of the global population now lives within range of a mobile network.

Much of that progress was seen in Africa, which recorded the highest growth globally in just over a decade. From just 2.1% in 2005, those with internet connections grew to over 24% in 2018. The number of households in Africa with access to a computer also increased to 9.2% in 2018 from 3.6% in 2005. Similar steady growth was recorded in developing countries where internet penetration grew to 45.3% at the end of 2018, from 7.7% in 2005.

As a continent, Africa has key advantages when it comes to digitalisation, which include a young population, a rising middle class, proactive mobile network operators and a constantly increasing internet access. On another note, at this stage it would be unrealistic to place Africa on par with the more mature European market. The local market is still playing catch-up to the more established ones in terms of internet and smartphone penetration and payment gateways.

Yet to truly consider the opportunities of the market, one should keep in mind that Africa is the second-most populous continent in the world, with a population reaching well over one billion. And what is worth noticing is over 65% of the population is under 35, with the median age being 19.4.

Those numbers, when properly crunched, reveal the opportunity for unparalleled expansion of the sportsbook vertical.

But what really sets the continent apart from any other emerging scenario is the fact the population has skipped the desktop stage almost entirely. The spread of the mobile device has resulted in low-cost products and cheaper services to users. So in reality while many still consider the African online gaming industry to be in its embryonic stage, there is a solid base for exponential growth.

AFRICA FOCUS

However, and I need to stress this, success in the region can only be achieved through localised services and solutions that reflect the continent’s technological scenario. In simple terms, results can be achieved only by taking the correct approach to the local market. Suppliers and operators must keep in mind that the local player experience itself varies dramatically from other scenarios, and what constitutes a successful model in the European market varies greatly from a winning model to be adopted in Africa.

Because while licensees may well base their business activities on the “unlimited” data usage scenario that is practically the dogma on mainland Europe, this is certainly not the case in Africa. The biggest challenge operators face is bad mobile networks and the relatively high cost of data. This leads to a lot of failed payment transactions, as well as networks not geared towards mobile for live betting. It’s difficult for a player to place bets in such fast-moving markets when the networks are both slow and unreliable.

SPORTSBOOK TAILORED FOR THE LOCAL CONTEXT

Then there’s the issue of tailoring the content to the local scenario. It’s a widely acknowledged fact Africans are, by and large, passionate football fans; they follow the many African football players who feature with the most famous European clubs. So it’s unsurprising betting on football is the most popular and widespread form of sports betting across the continent.

International competitions such as the FIFA World Cup, African Cup of Nations, Euros or Copa America, along with the English Premier League, Primera, Serie A and UEFA Champions League are hugely popular among African punters.

However, even local sports activities are hugely popular and operators should be in a position to deliver tailored content, according to the local preferences, to augment the user experience. On the other hand, operators should always seek to pursue innovation for the local context even in terms of content.

An example is novelty bets, which–although constantly gaining in popularity–are still not featured and offered to local players by a number of local licensees.

Although novelty bets are not sports related, they instil a big interest in the local

FEATURES

players themselves, since they permit the player to place bets on scenarios that directly capture his interest. Local elections and talent contests, among myriad other circumstances, generate a lot of local enthusiasm. Thus not only is this a good opportunity for operators themselves to further diversify their offer, but the player preferences are placed at the centre of the operation.

There is no denying the huge opportunities of the African market. What was until a few years ago an emerging market with huge technological hindrances is now evolving into a dynamic market marked by exponential growth in terms of technological achievement. Operators are now in a position to take hold of this evolving situation to start closing the gap to the more mature markets in terms of player experience, both from a technological and content-wise perspective.

To succeed in the future that’s taking shape, suppliers and operators must re-envision every aspect of what they do and how they do it, and have access to the right technology and content to engage their players.

GAMBLINGINSIDER.COM

19

FEATURES

US FOCUS

Problem gambling in the US

Ezra Amacher looks into how problem gambling is being addressed in the US, where sports betting is booming

20

GAMBLINGINSIDER.COM

March promises to be a prolific month for sports betting operators poised to capitalise on the NCAA basketball tournament in the US, as well as NHL, NBA and MLB contests.

Millions of bettors will either head to sportsbooks or wager via mobile, where they’ll enjoy the entertainment that comes with sports gambling, win or lose.

For a small portion of the population however, the process won’t simply end with the conclusion of a wager. March marks National Problem Gambling Awareness month, a time when the industry reflects on what it can do to help bettors who struggle with forms of gambling addiction.

As more states legalise sports betting, problem gamblers across the country face a growing risk of acting on their worst impulses. Though many states have proposed or passed legislation to fund problem gambling treatment programs, public awareness and prevention often falls well short of what is needed to combat the issue.

Andrea Dassopoulos, a researcher with the Nevada Problem Gambling Project at the International Gaming Institute, tells Gambling Insider: “What makes the risk higher is if there isn’t a program in place

to help people who need help. Here’s a product that many people enjoy. It’s fun, it’s entertainment, but there’s a small percentage of people who will always be harmed by this.

And to mitigate that harm, there has to be some program in place if they do fall.”

According to a 2016 survey by the National Council on Problem Gambling (NCPG), public spending on services amounted to $73m nationally. The NCPG estimates two million American adults fit the criteria for severe gambling addiction and another four to six million are considered problem gamblers.

Researchers like Dassopoulos categorise problem gambling severity by using the Diagnostic and Statistical Manual of Mental Disorders (DSM-5). The DSM-5 consists of nine questions including whether a gambler has made repeated, unsuccessful efforts to control, cut back or stop gambling; or if they’ve lied to conceal the extent of their involvement with gambling. Problem gambling behaviour can range from episodic (meeting diagnostic criteria just once) to severe (8-9 criteria).

Dassopoulos explains: “A person who has a problem with gambling will find ways to

US FOCUS gamble. The best way for someone who has a gambling problem to deal with that problem is to get help, to tell their friends.”

Individuals and communities who’ve experienced trauma are at a higher risk of developing gambling problems. The NCPG estimates that 36,000 active duty members suffer from gambling addiction, a problem exacerbated by the thousands of slot machines at overseas military sites.

Last year, Senator Elizabeth Warren introduced the Gambling Addiction Prevention Act of 2019, which would direct the Department of Defense to develop prevention and treatment programs for military members.

In December the Department of Veteran Affairs opened a Las Vegas gambling addiction treatment facility, a sign that the VA views problem gambling as a growing problem.

Native Americans, African-Americans and Asian Americans all face gambling addiction rates double the rest of the population according to the National Epidemiologic Survey on Alcohol and Related Conditions.

Ted Hartwell, a Las Vegas-based archeologist who studies problem gambling in Nevada’s tribal communities tells Gambling Insider: “From the displacement of traditional lands to the loss of language and culture, trauma has been linked to an increased risk of not only problem gambling but other forms of substance use. It’s not surprising that we would see those higher rates.”

Hartwell and Sydney Smith, colleagues at the Desert Research Institute, reached out to 11 Nevada tribes and presented a 57-question survey instrument on-site in each of those communities. The 220-person sample of convenience showed a problem gambling rate of close to 13%.

Hartwell said: “Nevada is the opposite of many states where tribal gaming might be the principal form of gaming. In Nevada only a few tribes have any direct income from gaming. A lot of them experience the collateral damage that can occur within the community without having any direct economic benefits in place to deal with that.”

Hartwell’s interest in problem gambling research resulted from his own experiences with gambling addiction. An accomplished academic and professional cellist, Hartwell defies the image of a stereotypical gambler.

Hartwell says: “When my issue reached a climax about 12 years ago and I got into treatment and recovery, there weren’t a whole lot of public faces for this issue.” The son of an avid gambler and music professor, Hartwell began betting at the age of 10.

Family history and early exposure are two of the main risk factors of problem gambling and they soon caught up with Hartwell. While in college, Hartwell played in high-stakes poker games where he still had control over his wagering habits.

A job opportunity led to Hartwell moving to Las Vegas, which is where he steadily developed a serious gambling addiction through video poker machines.

“When I first moved here, I couldn’t understand the appeal of machines. You’re never going to beat a computer chip over the long run, but out of boredom, sometimes I would put some money into machines,” he continues.

It was years before Hartwell hit his first jackpot; then in the span of a week he hit multiple big wins.

Those wins, paradoxically, set Hartwell on a path to addiction.

Denise Quirk, Clinical Director of Reno Problem Gambling Center, tells Gambling Insider, “The way your brain reacts when you win about one month’s pay is so euphoric that it’s like a drug. It’s like cocaine or an opiate hitting your brain with all kinds of hormonal neurochemicals that are so powerful.”

Hartwell, who was especially vulnerable to addiction as the child of multiple broken homes and divorces, chose to use gambling as an escape and started hiding debt from his wife.

Years of deceipt led to Hartwell collecting thousands of dollars in debt. Eventually his lies caught to up with him. When his wife found out about his gambling severity and threatened to prevent access from seeing their two-year old daughter, he finally sought help.

Hartwell said: “Only 10% of people who suffer from a gambling problem will reach out for help in any way and even a smaller percentage will get involved in treatment.

A lot of that has to do with the general stigma of this illness.”

FEATURES

Shame from family members, friends and religious communities often factors into why problem gamblers don’t seek help.

Inaccessibility of care, affordability and stigma of mental health issues also deter people from getting treated.

When gamblers do check in to clinics like the one run by Quirk, they may be tens of thousands of dollars in debt. Many problem gamblers will turn to medical or substance abuse help before being treated through an outpatient program, which can last from a couple months to a year.

With the expansion of sports betting and mobile wagering to more states, Quirk worries more that the population will move from recreational to problem gamblers.

“I’m concerned about the convenience factor being an issue that could lead people in a hidden sort of way without proper warning signs, especially with the increase of sports betting rules changing and more states allowing sports betting.”

Quirk would like other states to take after the Nevada Gaming Control Board, which made it mandatory that any gaming institution must display the 800 number for gambling addiction on location. By getting out in front of the issue, casinos can help customers and improve business.

Dassopoulos, the researcher with the Nevada Problem Gambling Project, said: “No one really benefits from problem gambling. Casinos don’t want people in there pathologically gambling. That’s not beneficial to their brand. Helping people to enjoy it but not cause harm -- they’re on board with that usually.” 

GAMBLINGINSIDER.COM

21

FEATURES

HORSERACING

A new dawn for UK horseracing?

With five bookmakers signing-up to a new streaming deal based on turnover, we analyse whether or not the agreement is a positive step for UK horseracing and the bookmakers In a state of uncertainty for the horseracing industry, it was inevitable that something was going to have to change. Reducing fixed-odds betting terminal (FOBT) maximum stakes to £2 in April last year came as a hammer blow for racing and bookmakers, with William Hill closing 700 high-street shops since the announcement.

Racetracks up and down the country have also reduced their prize money.

The past decade has seen a notable reduction in turnover from off-course horserace betting in the UK, dropping from £5.74bn in 2009 to £4.22bn in 2019.

So the development at the end of last year that five major operators have signed multi-year turnover-based deals with At The Races (ATR) shouldn’t come as much of a shock as the industry tries to recoup recent loses.

22

GAMBLINGINSIDER.COM

BetVictor, Betway, BoyleSports and Unibet, joined Betfred in signing up to the deal in December, which will see ATR receive a share of turnover on all bets placed, as opposed to the previous pence-per-stream fixed amount model.

Where previously bookmakers paid a fixed amount per viewer to broadcast race meetings, under the new deal, this has changed to fees based on the turnover of the bookmaker for that race, which on the face of it will leave the bookmakers worse off than before.

The agreement covers the delivery of streamed pictures and raceday data, which is delivered by ATR’s streaming platform, Sport Mediastream, that started in January.

Arena Racing Company (ARC), which along with Sky Sports owns ATR, operates and owns 16 racecourses, accounting for

39% of British racing fixtures. Considering the influence they have on horseracing, more deals between ATR and bookmakers will surely come in 2020.

Cuts to the horseracing levy, which was down £17m from £85m in 2017-18 to £78m in 2018-19, has also contributed to the need for the racing industry to find other means to increase income. The levy, a percentage of bookmaker racing revenue, has taken a hit because of FOBT’s impact on shop turnover of bookmakers and also the reduction in racing’s margin.

Statistics from the UK Gambling Commission shows the average online margin for horseracing has fallen from 7% in March 2015, to 5% in March 2019, while over the same period, the margin has risen 1% to 9% for football online. Horseracing margins have also been falling offline, but 

FEATURES

HORSERACING

over a longer period–from 15% down to 12% in the last 10 years.

According to industry analyst Kevin Dale, Director at analyst firm Gaming Monitor, the freefall of racing margins is a key reason why the racing industry needs to make up other losses from somewhere.

Dale told Gambling Insider: “Over the last few years, racing’s share of betting revenue has been falling, mostly to the benefit of football. Since turnover share has not changed significantly, this can only be down to lower margins, in part brought about by bookmakers’ over-generous promotions.

“Unlike football, bookmakers face many extra costs with a racing product: data rights, picture rights, streaming rights and the levy. For this reason, some operators use racing as a means to an end: signing up customers on racing offers, whilst hoping to push them in the direction of other sports or casino products.”

“Bookmakers have been falling over themselves to offer deals to racing punters.

Whether it’s extra places, the now ubiquitous Starting Price/Best Odd Guarantee, price boosts or the very risky minimum bet guarantees, racing margins are in freefall.”

It can be argued professional punters have more of an edge in racing than in football, due to how form data can be accessed. This can prove to be a significant cost to bookmakers, who need to restrict the smart accounts. But regardless of whether it’s down to smarter customers or better offers, margins in racing are now much lower than in football.

Since the horseracing levy is calculated on bookmakers’ Gross Gaming Revenue (GGR), levy receipts fall when margins do.

Add in the effect of FOBT legislation on shop closures, with more than 1,000 closing since last April to the end of 2019, there is no doubt racing had to do something to make up the shortfall elsewhere. That’s

where turnover based streaming comes into play.

Speaking about the streaming deal, Dale added: “Whether the new deal is a good thing or not will depend on your outlook.

Racing might argue that bookmakers need to improve racing margins and reduce their loss-leader approach to the sport.

“A turnover-based deal may mean this cost is passed on to customers and lead to a rise in racing margins. Alternatively, operators may refocus on other sports away from racing, reducing their exposure to what is a low margin and expensive product offering.”

A racing insider revealed to Gambling Insider the costs of the old streaming system. The streaming costs paid by bookmakers in the old pence-per-stream model was 25p maximum per stream, with fixed costs added on top. The way bookmakers would offset this would be by setting the minimum bet amount for customers to stream races, which varied between 50p and £2.

As a percentage of GGR related to streaming stakes, the cost was relatively high, however as a percentage of overall turnover, both streamed and non-streamed, the old streaming cost was less than half a percent.

Despite this, Dale says the margins are better on bets where live streaming is requested, while suggesting the significance of the move to a turnover-based streaming deal could cost bookmakers a hefty amount.

“The deal is significant for a number of reasons,” adds Dale. “First off, those bookmakers who operate on tight margins will be affected far more than those who do not. Secondly, with lower margins now in racing, a turnover-based commission represents a much higher percentage of GGR. If, as mooted, the deal relates to all online racing turnover on a market and not just on stakes where live streams were accessed, the difference will be in the

millions. The deals may include data rights and possible sponsorship and advertising assets thrown in, which will alleviate some of the pain.”

However, based on the average realised margin of online horseracing betting of 7% over the past five years, it’s estimated that a 1% turnover deal for streaming is the equivalent of a 15% GGR rate for bookmakers. This in turn would make the deal more expensive than the levy itself. Given the decline in levy proceeds, streaming is clearly plugging the gap.

As Dale surmises, for racing the deal is a good one because it mitigates the shortfalls from elsewhere. However, from early estimations, it will hurt bookmakers on the face of it. As of yet though, there’s no sign of any media or data rights blackout as witnessed in the past, such as the 2017 dispute over payments between bookmakers and racecourses, leading to coverage being suspended temporarily.

“With some of the big name bookmakers signing up already to the new turnover deal, it’s clear that a fear of missing out plays a part here too,” Dale continues. “What is the risk of customers migrating to competitors, who were prepared to bite the bullet?”

Negotiations with several other operators and ATR regarding the new turnover-based deal are still ongoing, hence the five bookmakers and ATR itself refusing to comment when Gambling Insider reached out.

However bleak this deal may look on the face of it to bookmakers, it could well be the welcome cash boost racing needs.

However, betting and racing are closely entwined though it could be argued that betting would survive without racing while racing couldn’t survive without betting.

In this context, it’s certainly a case of wait and see what impact the new deal will have on the future for horseracing betting in the UK. 

“A turnover-based deal may mean this cost is passed on to customers and lead to a rise in racing margins. Alternatively, operators may refocus on other sports away from racing, reducing their exposure to what is a low margin and expensive product offering” - Kevin Dale 24

GAMBLINGINSIDER.COM

FEATURES

BETINVEST Q & A

The supplier’s perspective BetInvest COO Max Dubossarsky speaks to Gambling Insider about the supplier’s plans for Euro 2020 and the Olympics

What are your expectations for the UEFA European Football Championships this summer? We’ve heard a lot from operators but not from a supplier’s perspective.

UEFA Euro 2020 is one of the most demanding times. We’ve dedicated a specialised team of traders to the European tournament matches and this year, there is a new set-up for the tournament – it is, in fact, experimental.

Matches will be held in 12 stadiums across 12 cities all around Europe, as opposed to one or two countries as done previously. In addition, 24 European teams will take part in the final stages (like in 2016), instead of the traditional 16 countries as in the previous 5 tournaments. This means there are more matches in store for us.

This model for holding UEFA Euro 2020 will create higher viewer interest and, of course, have an impact on the sports betting industry. We expect that this year’s Euros experiment will increase the level of engagement from audiences and therefore the number of bets placed. With regard to

the scope of our sportsbook, our clients’ players will get higher limits, meaning they’ll be able to bet larger amounts than they can for other events. We’ll impose small margins so players can get higher – and therefore more appealing – odds. We are preparing a wider selection of markets for the matches, as well as special markets for events, which are not directly related to the tournament, but are of most interest to the public.

We will naturally focus our particular attention on matches involving national teams from countries in which our B2B partners operate. We’ll also make use of our innovations for the FIFA World Cup – offering odds for penalties taken: over the bar, hit the post, etc.

We understand the betting pool will significantly increase during this time, because audiences will grow to include people who are not regular players, but who get caught up in the excitement of international championships such as the Euros and the World Cup. You could say these are seasonal players who place bets with us (or rather, with our operators) while supporting their favourite teams.

What are your expectations for the Olympics this summer?

As a sports betting provider, we will provide our clients with odds on all sports represented at the Olympic Games. With our sportsbook, players can already place bets on the number of medals that will be won at the 2020 Olympics. If we were to compare Euros betting the with Olympics, there are a smaller number of markets available for Olympic events. However, we’re offering our clients’ players the opportunity to support their national teams by placing bets.

Recently, the Olympics and UEFA Euro 2020 have been discussed in connection with the spread of coronavirus, with cases being confirmed and remaining difficult to predict in Europe. Already, 85% of Italian football matches have been cancelled due to confirmed cases of the disease. As such, UEFA is yet to make a decision on whether future matches will take place.

26

GAMBLINGINSIDER.COM

BETINVEST Q & A

How strong do you expect retail sports betting to be this summer given the major events?

Considering the current situation globally, it’s quite a challenge to make any kind of predictions, especially since everything is changing on a daily basis. We’re already dealing with the fact that, because of the rapid spread of coronavirus, some competitions have been cancelled and a lot of national and European matches are being played in empty stadiums.

Whether this summer’s main sporting events – Euro 2020 and the Tokyo Olympics – will go ahead has been called into question.

For example, we learnt on 10 March that Italy put all sports events on hold, including Serie A. There are three options under discussion: in the worst-case scenario, the Italian championship will be cancelled. And in early March, the British press announced that for the first time in history, the 2020 Summer Olympics in Tokyo could be held behind closed doors, meaning the public will only be able to watch the Games on TV. In addition to all this, because of the way the coronavirus is spreading, a series of amendments are being made to pre-match protocol across several sports. For example, ahead of UEFA Champions League and Europa League

games, the traditional handshakes will not take place. Players will not shake hands with their opponents and the officials, in accordance with recommendation by the World Health Organisation.

How has BetInvest responded to the impact of the coronavirus?

We are naturally concerned by the upheaval we are seeing across the globe as a result of coronavirus, and how much of the world’s resources – financial and human – are at stake for this issue to be resolved. Nonetheless, events have shown how responsive, resilient and decisive we can be, and how creative and prepared we are to trial solutions.

The norms are being changed, new rules are being introduced and new guidelines are being brought in – all so the sporting events millions of people have been looking forward to can go ahead, no matter the circumstances.

We are seeing a unique set of circumstances that are changing the industry. However, we hope the epidemic will eventually come to an end and sports fans will be able to sit in the stands for the world’s top sports events as they support their favourite club teams, national teams or their favourite athletes.

FEATURES

“The norms are being changed, new rules are being introduced and new guidelines are being brought in – all so the sporting events millions of people have been looking forward to can go ahead no matter the circumstances” – Max Dubossarsky

GAMBLINGINSIDER.COM

27

FEATURES

IPL BETTING

The state of play in India As the legalising debate rumbles on, Iqbal Johal looks at the current attitude towards sports betting in India and whether fantasy sports could be the stop gap that fans there crave You don’t have to look beyond cricket and the Indian Premier League (IPL) to imagine the potential of sports betting when it’s eventually legalised in the country.

Formed in 2008, the Twenty20 league was ranked as the sixth highest attended sports league in the world for the 2015 season, while according to US consultancy firm Duff & Phelps, its brand value following the 2019 campaign is $6.8bn.

The big figures don’t stop there, with Star India paying $2.55bn for the television and digital rights of the IPL from 2018 to 2022, making each match worth more than an India cricket team home international.

28

GAMBLINGINSIDER.COM

Plus, figures from Star India showed 462m watched the 2019 IPL season on Star network channels, with its streaming service Hotstar recording a reach of more than 300m. And a report by sports gaming self-regulatory body, Indian Federation of Sports Gaming (IFSG), titled ‘Scoring Big With Sports Gaming’, backs up the claims of the type of audience sports gaming could have in India.

According to their figures, there were 700m targeted viewers in the 2018 IPL, while the amount of online cricket fans reached 180m.

Sports betting in India is mainly illegal, but as these figures suggest, a huge market

exists, with underground betting still prevalent. Statistics from KPMG’s ‘evolving landscape of sports gaming in India’ report say the estimated size of the Indian betting black market was $130bn in 2018. The majority of this stems from sports betting with an estimated $200m bet every time the Indian cricket team plays a One Day International (ODI).

With betting and gambling governed by various state legislations under The Public Gambling Act of 1867, it explicitly exempts “games of skill” where the skill and knowledge of the player can influence the outcome of the result. “Games of

IPL BETTING chance”, where results are predominantly determined by luck, are prohibited.

Ranjana Adhikari, lawyer and co-head of Media Entertainment and Gaming Practice at Nishith Desai Associates, explained to Gambling Insider where the sports betting in India argument stands today.

“Somewhere there’s an underlying connection between sports betting and match-fixing, at least in terms of perception, which is why the authorities in general have been extremely anxious towards sports betting as a concept,” she says.

Adhikari uses the example of horseracing as a reason why sports betting could be legalised in India. The Supreme Court ruled in 1996 that horseracing betting is not just based on luck, but skill too, which doesn’t come under illegal gambling and should fall outside the prohibitions of the law. “I can apply the same logic to betting on cricket or any other sport,” she adds. “But at the same time, you cannot fight the fact that today there is a perception issue.”

That contentious issue is one that has divided opinion of sports betting in India.

According to Adhikari, different ministers are split on whether or not it should be legalised. Last November, India’s Sports Minister Kiren Rijiju stated his opposition to legalising, calling it “immoral” and “illegal”. But at the end of 2018, MP Dr Shashi Tharoor introduced The Sports (Online Gaming and Prevention of Fraud) private members bill, looking to preserve the integrity of sport and stop corruption through regulating sports betting activities.

Then there’s the Lodha Committee report from 2016. The committee was appointed in January 2015 to look at ways to improve the Board of Control for Cricket in India (BCCI) in the wake of the 2013 IPL betting scandal in which three Indian cricketers, including World Cup winner Shanthakumaran Sreesanth, were arrested and banned from all cricket. In 2016, the committee recommended legalising sports betting to help curtail match and spot-fixing in cricket, and sport in general.

While legalising sports betting won’t happen overnight, Adhikari suggests the mere fact that ministers have taken notice the market exists and consumers are not protected is one step forward to an eventual law.

“The biggest positive to legalising sports betting would be recognising that there’s already a black market out there so if you legalise it, you bring in revenue to the exchequer.

“There’s money that can be brought in through taxation, both in the form of gaming and corporate tax. There will be a proper tracking system, in terms of seeing the source of funds, which will

help. It would also be a very positive step to protecting the player.”

As the sports betting debate rumbles on, sports fans in India at least have another avenue to get their fix, and that’s with fantasy sports.

As mentioned before with the potential reach of sports fans, especially in cricket, there clearly is a market for fans to get their betting fix, and with the legal sports betting market door shut for now, that paves the way for fantasy sports to thrive.

According to the KMPG report, the regulated online gaming market has seen revenues reach more than $600m in 2018, with 22% growth expected from 2018-2023.

The earliest fantasy games in India can be traced to 2001 with ESPN-Star Sports’ Super Selector Fantasy Game, but there has been huge growth since 2015. The amount of users has grown 25-fold from June 2016 to February 2019 and the projected amount of users by the end of 2020 is expected to cross 100m, with Dream11 proving to be a big hit.

The Mumbai-based operator was formed in 2008 and in April 2019, was valued at

FEATURES

market should only grow. The awareness of fantasy sports is certainly there, according to the IFSG report. Around 67% of people who took part in their survey are aware of fantasy sports, with 96% who have ever played playing at least once in the past year.

Adhikari said: “While Fantasy Sports was never illegal, there wasn’t a positive outright decision until the court rulings from a few years ago. Since then, more courts have said the same, which has led to growth in the market and it has boomed since then.

“In terms of the consumer base, it’s not necessarily the case that the market becomes smaller if sports betting is legalised because there’s enough people playing fantasy sports for entertainment.

“I think the audience will grow, and players would convert, with the legalising of sports betting in the US a good indicator.

“There’s a market for both fantasy sports and sports betting, but whenever sports betting becomes legalised, I don’t

“Somewhere there’s an underlying connection between sports betting and match-fixing, which is why the authorities in general have been extremely anxious towards sports betting as a concept.

You cannot fight the fact that today there is a perception issue” - Ranjana Adhikari more than $1bn. While it focuses on Daily Fantasy Sports (DFS), it also runs season-long cricket games and is also popular for its football, hockey, NBA and Kabaddi offerings.

Since court rulings in Punjab and Haryana helped affirm Fantasy Sports as a game of skill, operators have been pushing to maintain credibility by partnering with official sports leagues, with Dream11 the official fantasy game partner for the Indian Super League (ISL), Pro Kabaddi League (PKL) and Big Bash League (BBL), among others.

Considering internet users have grown to 560m as of September 2018, the future looks promising for fantasy sports in India, according to Adhikari. And even if sports betting was eventually legalised, the Fantasy

think the DFS market in India will be affected. I would say fantasy sports is in a fairly better setting than sports betting in general.”

There seems to be no easy solution legalise sports betting in India in the near future. The US might prove to be a great model for arguing its case, as after years of debate, it was finally legalised in 2018, with at least 20 states expecting to offer sports betting by the end of 2020.

Whether or not fantasy sports in India and the potential reach will help sports betting finally become legal is still up in the air. But with fantasy sports at least, hundreds of millions of Indian fans can get their betting fix.

GAMBLINGINSIDER.COM

29

FEATURES

BETTING REBRAND

Is GVC leading the rebrand charge?

Owain Flanders assesses the efficacy of GVC’s 2019 safer gambling drive, and its intentions to be an example for other operators to follow When a company sets out on a rebrand, it requires more than just a new logo and a fresh lick of paint on the office walls. It involves a change in strategy, with an aim toward improving the public perception of the company.

In 2000, British Petroleum sought to escape its public image as an old-fashioned oil group and rebranded as an environmentally-aware energy and general services company, under the name Beyond Petroleum, or BP. Since around the mid-2000s, after years of criticism for offering unhealthy food, McDonald’s added new, healthy alternatives to its menu, creating an advertising campaign focused around its use of organic produce.

Last year, prompted by governmental, media and public pressure, the UK’s top bookmakers instigated a similar rebrand.

Several operators implemented a shift in strategy in an attempt to allay concerns regarding the industry’s commitment to safer gambling–concerns that came to a

30

GAMBLINGINSIDER.COM

head in 2018 when UK gambling firms paid a record £19.6m ($25.7m) in penalties for failing to protect problem gamblers and preventing money laundering.

In 2019, no operator was as active in addressing these concerns as GVC Holdings, owner of Ladbrokes Coral, which conducted a year of sponsorship donations, charity commitments and even calls for stricter regulation. To assess the effectiveness of GVC’s year of the safer gambling rebrand, we need to take a closer look at the operator’s actions.

In January, GVC kick-started the year with the launch of its safer gambling campaign ‘Changing for the Bettor,’ which was followed by an announcement of a five-year research project with the Division on Addiction in the Cambridge Health Alliance. The project, which will reportedly cost the group $5m, will provide the Harvard faculty at the division with access to anonymised player data to research gambling behaviour.

In a move to increase problem gambling awareness, the operator also outlined plans to increase education on safer gambling for its shareholders, its staff, and young people.

This continues the operator’s work from October 2018, when it donated £500,000 to GamCare for its youth outreach program.

The program aims to raise awareness of the effects of problem gambling, and last year, GVC launched a state-school campaign with Epic Risk Management to assist its efforts in this area.

Guaranteeing a long-term commitment to increased charitable contributions, GVC and Flutter Entertainment also agreed last year to raise their voluntary levy on gambling profits from 0.1% to 1% within five years. The total contribution is expected to total £60m, with the companies insisting this represented “a step change” in tackling addiction.

GVC’s level of investment with these commitments cannot be understated, and evidently, the operator was intent on

BETTING REBRAND demonstrating its new safer gambling approach straight out of the blocks.

However, these are also the type of contributions that tend to go under the radar as there was little-to-no coverage of these announcements in major UK news publications, and when there was, as with the levy increase, it was touted as the result of NHS pressure (which was hinted by the BBC) or even a “bribe” to avoid further regulation (according to Scottish National Party MP Ronnie Cowan, which was publicised by The Guardian).

If the aim of a rebrand is to alter public perception for the better, then the operator would have to confront a main focal point for industry criticism: gambling advertisement and sponsorship in sport.

In April 2019, GVC called for an end to sports betting advertising on live and repeated televised sporting events, excluding horseracing. Arguing that the voluntary pre-watershed, ‘whistle-to-whistle’ advertising ban in the UK, implemented in 2019, did not go far enough, GVC proposed that only advertising specifically promoting responsible gambling and safer gambling campaigns should be permitted, and strictly limited to one advertisement per break.

“It’s high time the industry did more to protect its customers from potential harm,” said GVC CEO Kenny Alexander on the day of the announcement. “The industry should and can do more to protect the vulnerable, and today’s announcement demonstrates GVC’s commitment to delivering on that.”

Despite this call-to-arms from the GVC leader, a successful rebrand requires belief in the good intentions behind a company’s actions, and the true reasoning behind GVC’s desired ban is up for debate in the minds of some industry analysts.

Although GVC urged other operators to “join it in helping to revolutionise the marketing of gambling brands,” it is significant that the operator did not remove its own advertisement during sporting events in the wake of the announcement-with some calling the move hypocritical.

Speaking with Gambling Insider in July, Norbert Varga, Director of online gaming marketing company NWM Marketing, labelled GVC’s plea for a ban as a “PR stunt,” arguing there were ulterior motives behind the operator’s announcement.

“The type of ban they’re calling for would likely force many smaller operators out of the market, as they would find it next to impossible to acquire market share,” said Varga. “Of course, this would then benefit the huge, well-established operators, who would not find it easier to keep their existing customer base.”

In unfortunate timing, shortly after its call for stricter advertising regulation,

GVC was at the receiving end of a £5.9m Gambling Commission fine for failures related to money-laundering and problem gambling. Alexander emphasised the historic nature of these failures, which were attributed to Ladbrokes Coral before GVC acquired the business in 2018.

Regardless, this certainly didn’t do the operator any favours in the public eye.

With the Gambling Commission charging record fines in 2018, this was one of the regulatory body’s biggest fees to date, and a big hit for GVC’s new safer gambling image.

Perhaps this is what inspired the operator’s next unprecedented move, when it announced in August it would donate 42 of its UK-based football sponsorships during the 2019/20 season to support GambleAware’s “Bet Regret” campaign. It was the first case of its kind in which a gambling company had donated football sponsorship money to a charity, with the chosen football clubs including Sunderland, West Bromwich Albion and Sheffield United.

If GVC’s motives for opposing gambling advertisement in sport could be questioned beforehand, this was definitely a step in the right direction towards silencing the operator’s critics. However, there were once again insinuations of hypocrisy from within the industry. Although the operator called for an end to UK sponsorships, GVC-owned Bwin extended its sponsorship deal with Spanish football club Valencia in June, and continues to advertise on the front of the team’s shirts, perhaps suggesting international limits to the operator’s safer gambling drive. Is it only concerned about the issue inmarkets where gambling is perceivednegatively by the mainstream media?

Speaking at a sports betting panel on gambling sponsorship last year, Conleth Byrne, OnePoint Managing Director, praised GVC’s ingenuity in un-sponsoring teams, but criticised its dishonesty in not applying this to all its investments. “For me, the GVC thing is actually quite clever,” said Byrne. “But it’s disingenuous, because you need a little bit of honesty. GVC said they are being socially responsible and then signed a deal with Valencia the following week. The timing wasn’t very good, because it takes away from the positivity of the first announcement.”

In this sense, GVC’s un-sponsorship campaign can be likened to Paddy Power’s “Save our Shirt” campaign, in which the operator adorned Huddersfield Town football club’s shirts with a garish sash baring the company logo to generate media attention, before announcing it would un-sponsor the shirt. In contrast to GVC’s campaign, Paddy Power made no commitment to donate the sponsorship to

FEATURES

Kenny Alexander charity, but was perhaps more honest in the publicity stunt nature of the marketing, which generated plenty of PR and brand awareness.

Despite having a year slightly blighted by insinuations of hypocrisy and a hefty fine, GVC believes its 2019 strategy was well received by most. Speaking with Gambling Insider, a GVC spokesperson, spoke of “broad support” for the year’s actions, “including from those that are not necessarily natural friends of the industry.”

The operator insists it is committed to following this into 2020, by “working closely with the Betting and Gaming Council and industry peers to drive further change.”

Clearly there’s still much to be done to improve the industry’s reputation, but no one seems to be more aware of this than GVC. Undoubtedly, GVC had a rollercoaster year in 2019. While the “Changing for the Bettor” campaign furthered commitments already established through greater investment, the operator’s calls for others to join in the fight for safer gambling could be considered self-righteous and hypocritical.

Its donation of football sponsorships showed a desire to confront criticismsof the industry’s marketing, but this was subsequently tainted by its lack of action outside the UK. Overall, GVC’s 2019 rebrand was more successful than most, but certainly far from perfect.

GAMBLINGINSIDER.COM

31

FEATURES

SUSTAINABLE VIPs

The lifeblood of your business

Panellists at ICE London 2020 discuss what can be done to improve the sustainability of VIP customers

Moderator: Ron Segev, Partner, Segev LLP Panellists: Nikolay M, Buffbet Sam Bourne, Head of CRM, BetBull

32

GAMBLINGINSIDER.COM

RS: Nikolay, could you give us some thoughts on the research you’ve done on VIP betting along with the lifetime curve of the VIP customer’s spending power?

NM: First of all, VIPs are the good customers. It’s not that the VIPs come from the good customers. The good customers are called the VIPs. The good customers are the ones who bring in the most money. It’s important to try and maintain them but this is not always possible.

We have done some research in which we took our VIP customers and looked at them in different regards, such as how they bet, when they deposit, when they

play and how they act after losing. We came to two big conclusions.

The first one is regarding the real high-roller VIPs who spend a lot of money in a relatively short space of time. This type of customer usually comes in with a very large deposit, making large bets and finishing quickly.

Unfortunately, the house always wins, so when a good customer comes in like this and they lose a lot of money in a short space of time they don’t enjoy the experience. Everything we do has to have a purpose. When that purpose is lost, these types of customers tend to churn very quickly because they lose their money and they go away

SUSTAINABLE VIPs and don’t come back. It takes a lot of time, effort and resources to bring these customers back.

At the other end of this spectrum are the good customers who play with a smaller amount. They deposit more frequently and play with smaller bets.

This means they usually deposit the same amount of money for an extended amount of time. They play longer and they enjoy it so they come for the fun factor. They come for a good time and they tend to come back even if they lose the same amount of money but more slowly.

SM: I think it’s interesting that you split out economy, marketing and RG, because RG is always intrinsically linked with it. One of the really difficult parts of this issue is how to separate VIPs and people with potential gambling issues.

The report in The Guardian recently said that 11 times more people who are VIPs have been determined to have a gambling problem than non-VIPs. Well yes, because we are measuring our good customers on exactly the same definition as what we measure problem gambling behaviour as. There’s an intrinsic selection bias there so obviously when you are sampling from this population more people are going to have a gambling problem.

The biggest challenge of making a sustainable VIP programme is really getting in there with the RG checks early and making sure the player can afford it. You have to take a proactive RG approach towards the problem and talk to the customer one-to-one.

RS: I think that is a really important distinction. It’s very important to be committed to the idea that a problem gambler is not a VIP. That’s not a good customer. That is someone we need to take good care of. You mentioned two concepts, longevity and sustainability, can we talk about that? Do you need to spend a lot of money to keep them playing?

NM: To keep a customer playing comes down to the purpose. Customers will come to a website to gamble and have a good time with their money because they like to bet. They need to get enjoyment out of it. Putting aside for a second RG, let’s take for example a perfect scenario in which you have a good customer and they want to spend money so you want to retain them for a long amount of time. What do you need to do? This is where KYC comes in and knowing your customer.

Engaging with customers and talking to them is really important. A really old-school method we have is using a phone. We call them and introduce them to a dedicated account manager who will talk to them frequently to understand their mental condition, their physical condition and financial condition.

They will discuss promotions and how they want to bet, while also monitoring behaviours, which are out of the ordinary, such as betting late at night. Then he will call him to ask what is wrong and advise a break if necessary.

Yes, you can sustainably retain VIP customers and bring in good profit while also making sure they’re not over-spending and gambling irresponsibly, but it requires communication. It’s about understanding who your customer is and then you can use that information to create a situation where he is enjoying the website and you’re making profit.

SM: There were two talks earlier which touch on this. One of these was the talk on algorithmic data, which suggests that we should be able to do these checks with all customers. Absolutely we should, and the Gambling Commission is telling us that we should. That’s something that we need to start doing by managing automated systems and getting these in place so it isn’t just VIPs we notice are gambling late at night. Obviously, it’s more necessary from a business perspective for VIPs to have individual account managers. That sort of personalisation is a dream that I would love to do for every single customer, but it’s just not necessarily feasible.

The other talk was about bonuses, and asking where they were headed.

There was the idea that maybe bonuses aren’t the best thing, and we need to

FEATURES

innovate a bit more on how we’re using bonuses. VIP gives you a really nice view of how to do real-world rewards instead of focusing on free bets or 10% rate back.

I think making sure your VIPs are sustainable is absolutely knowing them and understanding their needs, but also reminding them about other things such as a VIP trip to the cinema.

Push out and work with them on a more holistic personable level. Treat them as a person rather than just a consumer.

RS: Is there any new technology or trends in the industry being implemented to assist with this?

NM: Something quite new is mobile gaming. This has huge revenue in the past couple of years–billions of dollars.

Overall the mobile gaming industry has opened us up to new markets and new ways to approach customers. On mobile, there are lots of options to play on games where it is monetised and we’re all classed as VIPs or not depending on how much we spend. They don’t usually approach us with bonuses like they do in the casino area, but there are things that are being done in mobile gaming that are new–this is called Gamification.

What keeps you coming back? It can be things that are non-monetary such as an achievement or something you can share on social media. When you give someone a bonus or money then you’re basically asking them to gamble more, which can lead to gambling addiction, so you don’t want to reinforce this necessarily. It’s important to treat your good customers like normal people with standard needs, and focus on other aspects of their lives other than gambling.

They will really appreciate that. 

“The biggest challenge of making a sustainable VIP programme is really getting in there with the RG checks early and making sure the player can afford it. You have to take a pro-active RG approach towards the problem and talk to the customer one-to-one” - Sam Bourne

GAMBLINGINSIDER.COM

33

FINAL A broad offering WORD Betsson Group CEO Jesper Svensson sits down with Tim Poole to discuss the busy summer of sports betting ahead, emphasising the operator’s focus on its new B2B business

I’d like to start by asking you about Betsson’s acquisition of Brazilian horseracing operator Suaposta in December. How much will this help you gain a footing in the South American market?

It's very much that; it's a foothold. We are gaining the expertise of those guys, a very competent team. They understand how things work and when you operate in a market like that. It’s really important to know how you move around in that country. Everything from setting up the company to conducting payments, so this acquisition gives us a head start.

I think I know the answer to this question but what’s more exciting to Betsson, the European Football Championships or the Olympics?

The Euros. The Olympics are nice but, for us, it’s not close to having the same effect as the major football tournaments. I would expect this to be industry wide. I would be surprised if there was someone who took more on the Olympics than the Euros.

34

GAMBLINGINSIDER.COM

What kind of impact do you expect the Euros to have on revenue?

Obviously it will spike compared to last summer, but how do you think it'll compare to something like the FIFA World Cup two years ago?

The World Cup is a bigger interest and that has a bigger impact than the Euros.

But it’s nevertheless very good and it’s also perhaps not so visible in the month itself. That depends on how the matches are going. Usually it’s a good time to acquire a lot of new customers and help grow the brand after the event.

Will the Euros help the Swedish market bounce back or are there still going to be teething issues this year?

I think it will help but it won't change the situation in a big way. I definitely expect an uplift during this time in Sweden.

Focusing more on the Olympics in Japan, could there be a reduced betting interest from Europe due to the time zone differences?

Time zone does affect betting, of course.

This is particularly when it comes to live markets. From that point of view, it’s not ideal. But my understanding is they have been trying to match times as well as they can for a global audience. Pre-match will be less affected but certainly in-play betting will be impacted.

How strong is Olympics betting traditionally?

There is, of course, betting on all Olympic

sports. But it also depends on the country where someone has an athlete within something specific. For example, in Sweden, one of Betsson’s ambassadors is Sarah Sjöström who is the best female swimmer in the world. She has won at the Olympics before and when she is swimming, there is an interest in Sweden and a rise from the betting side. From that point of view, that’s more country-specific–swimming in general for us is not too big!

Are you launching any campaigns specifically for the Olympics or are you focusing more on the core product?

We always have those events and ensure we have a very broad offering. We set up a lot of specials and build out our product from that point of view. That’s something that's also heavily used in the acquisition market.

More generally, outside the Olympics,will there be anything new from Betsson this year in terms of new campaigns or products?

The big thing for us this year, particularly from a sports point of view, is we are moving in on the B2B side for sports betting. So we have done one deal now with a company called Ibet, which is looking to launch before the Euros.

Throughout the year, we will keep increasing our focus on the B2B side of things. That’s new for this year and it’s important for us. It's a new and exciting road for us.