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BIG QUESTION
How important is bricks and mortar for digital gaming growth in the US?
Michele Ciavarella, Executive Chairman and Interim CEO, Elys Game Technology
Mike Ciavarella It is critical that bricks and mortar or “retail” distribution forms an integral component of the sports betting and gaming ecosystem for digital gaming growth in the US. Because gaming products – be it sports betting, casino or poker – are generally consumed in physical environments where players can gain a high degree of trust with the operator and have external stimulus to keep play time in perspective. The memory created in a public retail environment is encoded and stored in your brain and can be retrieved
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to influence future behaviour in a private digital environment. The drive, feeling and atmosphere that is created in bricks and mortar establishments, the physical interaction with other people, including senses like touch, smell and sound, simply cannot currently be created or replicated on a digital screen; and thus, bricks and mortar distribution serves as a reciprocal partner to digital growth. Competition is part of daily human life. We compete with each other, we try to get the best deals on products we buy, we take chances on purchases we make, we meet people and compete with them every day in many social and work environments. Sports, in fact, are primarily a physical or mental competition between players, while casino games are enjoyed in a vibrant, exciting environment, and poker – despite being a card game – is played continuously in our daily lives, in almost every situation we face. This human-to-human interaction is why bricks and mortar establishments are so important to digital growth. Since gaming is consumed mostly in physical environments, the concept of an ecosystem includes a digital experience that can best replicate a player’s experience at a physical location. The connection between the memory encoded by the physical experience will ultimately fade away in digital time, and thus, a recharge to refresh the memory will ultimately be needed.
Entertainment value to create the drive to play – which can only be generated in a physical venue, be it a sports arena, a casino or your favourite pub – is priceless. Take sports betting, for example. Players want digital velocity without the shackles of gaming accounts, payment systems, KYC and the nuances around online playing experience. A sports bet is simple; it’s a competition between two people that think they are choosing the right winner. In sports betting, there is nothing better than arguing with your pal as to who will sink the putt! That vibe currently doesn’t exist by betting against your mobile device, but can if sports betting occurs at a pub/sports bar while enjoying a meal and beverage with friends. It is equally important that both channels exist cohesively within the engagement ecosystem because of the nature of our industry. After all, gaming is not so much about selling physical products, but rather the entertainment value of the games, relationships, and the thrill of the unknown outcome; whether that’s against a machine, or against a bookie. Despite technological advances for security, transparency and responsible gambling, many players don’t entirely trust digital operators not to rig games against them, so it’s difficult to get ultimate convenience. This gives brick and mortar operators the edge on trust and reliability in the ecosystem. The digital channel is bringing a new
