Gambling Insider: Malta Focus Mar/Apr 2021

INSIDE:

MALTA FOCUS

EXCLUSIVE: MGA CEO CARL BRINCAT IBUSINESS BOOM: A JOB MARKET RESURGES

March/April 2021

Streetwise

Patience and vigilance will determine the future of iGaming success as a more mature market blossoms

EDITOR’S LETTER

COO, EDITOR IN CHIEF Julian Perry EDITOR Carl Friedmann Carl.Friedmann@gamblinginsider.com Tel: +44 (0) 207 739 9908 SENIOR STAFF WRITER Tim Poole Tim.Poole@gamblinginsider.com STAFF WRITERS Iqbal Johal Iqbal.Johal@gamblinginsider.com Ezra Amacher Ezra.Amacher@gamingamerica.com Peter Lynch Peter.Lynch@gamblinginsider.com Tom Rush Tom.Rush@gamblinginsider.com LEAD DESIGNER Laura Fogar

Julian Perry, COO, Editor in Chief

Carl Friedmann, Editor

If the pandemic could speak, it could probably sum itself up by stealing a quote from the Maltese Falcon: “My way of learning is to heave a wild and unpredictable monkey-wrench into the machinery.” It’s never too late to learn, I guess. Seeing as we’re all on the receiving end of that wrench, though, it’s been a particularly difficult time we could have done without. But we’ve done our share of learning too.

With SiGMA stuck in its dizzying holding pattern until November at the soonest, we thought it prudent to still put together this edition of Malta Focus, which, if all of this Covid insanity never happened, would have been on offer at the show late last year. But one thing we’ve learned is that if there’s a strong enough demand for something, we better deliver.

While the industry collectively laments missing out on island warmth, and show hosts unable to welcome us there, we do our best to bring you a taste of what’s to come, and what to expect when we finally touch down at Malta International.

We hear from Roger Strickland, director online gaming and business development at corporate services provider CSB Group, about how the island is strengthening as a global destination and an industry hub. “I believe the industry in Malta has adapted extremely well to the new online landscape driven by the pandemic,” he says. “But it also had less adapting to do compared to other markets because of it already being a leader of innovation.”

And, while Strickland works with the Malta Gaming Authority (MGA) on behalf of CSB Group clients applying for licences, we also get an exclusive with newly appointed MGA CEO Carl Brincat. There’ll always be regulatory shifts that keep things fluid, but Brincat comes into the role with a firm conviction to ramp up strong partnerships with other regulators and stakeholders, as well as with the industry itself. The symbiosis of industry and regulator is critical for longstanding success. “We want to accelerate our continued growth as a regulator to strike the balance between being sufficiently rapid and flexible for such a dynamic industry, while at the same time never prejudicing the rigour of our checks,” he says. Let’s hope ‘balance’ is the operative word so we can meet in the Med in November.

CF Editor

CONTRIBUTING THIS ISSUE

DESIGNER Olesya Adamska DESIGN ASSISTANTS Radostina Mihaylova, Aleksandra Cakikj, Inna Shtereva MARKETING & EVENTS MANAGER Mariya Savova FINANCE & ADMINISTRATION ASSISTANT Dalia Ambrazaite IT MANAGER Tom Powling COMMERCIAL DIRECTOR Deepak Malkani Deepak.Malkani@gamblinginsider.com Tel: +44 (0)20 7729 6279 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 Nitesh Patel Nitesh.Patel@gamblinginsider.com Tel: +44 (0) 207 739 5768 Martin Dilleigh Martin.Dilleigh@gamblinginsider.com Tel: +44 (0) 203 435 5628 SENIOR ACCOUNT EXECUTIVE Sam Ford Samuel.Ford@GamblingInsider.com Tel: +44 (0) 207 739 9918 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: Daniel Eskola, Roger Strickland, Robert Dowling, Anders Bergman, Kayne Said, Carl Brincat, Eman Pulis, Jaime Debono, Andrew Foster, Julian Perigo, Christine Lewis, Liana Mifsud, Sebastian Jarosch Gambling Insider magazine ISSN 2043-9466

CARL BRINCAT

CEO, Malta Gaming Authority

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DANIEL ESKOLA

CCO, Relax Gaming

Produced and published

by Players Publishing Ltd All material is strictly copyrighted and all rights reserved.

Reproduction without permission is forbidden. Every care is taken in compiling the contents of Gambling Insider but we assume no responsibility for the effects arising therefrom. The views expressed are not necessarily those of the publisher.

CONTENTS 18 8 A DRIVING FORCE

Entrepreneur Anders Bergman, brother of Catena Media co-founder Erik Bergman, talks about Malta’s QuitGamble.com, a site designed to tackle gambling addiction

10 SAFE AND SECURE

Kayne Said of the Responsible Gaming Foundation, Malta, discusses the organisation’s response to Covid-19, and what it’s doing to slow problem gambling among youth and more

12 KEEPING THE PACE

Newly appointed Malta Gaming Authority CEO Carl Brincat speaks to Gambling Insider about the changing face of Maltese gaming and regulation

14 CRYPTO-SKEPTICS TO CRYPTO-CENTRICS? SiGMA founder Eman Pulis speaks to Gambling Insider about the blockchain island, and gives a balanced account of crypto’s recent surge

16 AN EFFICIENT ROUTE TO COMPLIANCE Jaime Debono, MD of iGaming Academy, depicts an increasingly hazardous regulatory landscape, but shows compliance can still be achieved efficiently

18 WELL POSITIONED TO CAPITALISE

Roger Strickland, CSB Group director online gaming and business development, speaks about why the region is a hub and how it adapted to current challenges

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26 20 TURNING CHURN INTO RETURN

Andrew Foster, head of business development at Enteractive, on personalisation to maintain player retention

22 SOMETHING TO CELEBRATE

Daniel Eskola, CCO at Relax Gaming, details the winning formula that has sustained the company for the past decade

24 OPEN FOR IBUSINESS

The igaming jobs market is running at full speed, and according to Julian Perigo, MD at Boston Link, a leading international igaming talent acquisition firm, don’t expect it to slow down any time soon

26 AGGREGATION PLATFORMS

Christine Lewis, chief commercial officer at Pariplay, asks if they are the future of the igaming Industry

28 RECRUIT N GO

Liana Mifsud, head of HR at Play’n GO, discusses employer branding and the gaming recruitment market in Malta

30 VIRTUTE ET CONSTANTIA

Sebastian Jarosch, Betsson Group head of affiliates, on how the company and the Maltese Government have adapted through Covid

34 FINAL WORD

Singular chief commercial officer Robert Dowling speaks to Gambling Insider two years into his role with the supplier

FEATURES QUITGAMBLE

A driving force Entrepreneur Anders Bergman, brother of Catena Media co-founder Erik Bergman, talks to Tim Poole about Malta-based QuitGamble.com, a site designed to help people battle gambling addiction start dealing with that problem. A famous psychologist who deals with heroin addicts said someone’s addiction has saved their life so many times, because without that addiction, they would probably have killed themselves.

Tell us all about QuitGamble.com.

QuitGamble.com is about identifying and fighting pain. We believe pain is the cause of addiction; we don’t get addicted to gambling, alcohol, drugs and so on. We get addicted to escaping from pain, those precious moments when it’s quiet, when no one tells us what to do, when we don’t feel bad about ourselves.

Those moments are an escape and gambling is one way to reach that. Alcohol and drugs are other ways. But it’s the pain that is the cause of addiction, so what I did with QuitGamble.com was I developed a test to see where the pain is coming from in your life. I believe pain comes from needs that aren’t being met. It might be that you have a need for socialising but that particular 8

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day you don’t have any friends to talk to, and that loneliness can be a source of pain.

It might be that you’re out of a job, or on sick leave and life feels damn meaningless.

You feel basically unhappy and then seek ways to escape from pain. For a gambling addict, gambling is the first thing the brain thinks of when it experiences pain. I think one difference from how I see it and how many others see it is there’s an upside to addiction.

The addiction is doing something for you. So to be able to quit gambling, or whatever addiction you have, you need to understand there is a positive effect of the gambling or the addiction. Perhaps you can get that from something else or

On your site, you say the gambling industry is not the enemy, as long as gambling companies don’t deliberately focus on people with gambling problems.

But you emphasise that many slot machines are created to keep players betting. Are you essentially saying slots are the most harmful form of gambling?

I have a section that I call the gambling addiction curve, where I try to visualise the connection between why you do something and the risk of becoming an addict. On the addiction curve, if you gamble, the question is can you gamble responsibly? In my world, you can gamble responsibly if you gamble to have fun – if it’s all about entertainment. People love it; it’s a little bit of excitement, you can win money. After all, no one would put money in a slot machine or buy a scratch ticket if you couldn’t win. And for me, as long as the ‘why’ is about entertainment, it’s fine.

But as soon as you start gambling to win money, I say you are on thin ice. Because then it’s so easy to slip over the edge. For me, I can see a certain excitement and entertainment in slot machines. I know they are built so you should be hooked on them and they are very easy to get addicted to.

I think you can get addicted to any kind of gambling, so I don’t say sports betting is less addictive than a slot machine. But slot machines are deliberately built to hook your brain.

Sports betting is not. Yet for me, even the pros that live from sports betting can have a gambling problem. It doesn’t matter if you win or lose. There are some lucky few that are gambling pros and live making their money from poker and sports betting. But they gamble to win, so they might not be gambling addicts but they definitely display some problematic gambling behaviour. The difference is they make money from it and others don’t. So I’d say slot machines are basically built for people to get hooked

QUITGAMBLE FEATURES on, whereas poker and sports betting are a little different in the way they are built.

They’re not built to get you hooked but they can get you hooked anyway.

Your site has also spoken honestly about some affiliates and casino tactics, with the story of Lukas Better [a fictional name] being enticed by companies to lose a huge sum of money. In your view, how much of the industry does this represent?

I can’t say I have a direct number. I have heard affiliate managers talk about insane numbers, that 80 to 90% of revenue comes from VIP players. Naturally with VIP players, I don’t know how many have gambling problems, but it’s probably a high proportion of them.

But when you ask the casinos themselves, they say it’s probably 20%. I don’t have a number; casinos know exactly but it’s not something any casino would go public with.

Kindred Group recently said 4% of its revenue is from harmful, high-risk gamblers.

If it’s 4%, I think it’s fine. We talk about 3% of the population having gambling problems so if 4% of revenue comes from them it’s only natural. I would not bet on 4%, though. It’s probably more than 50% but there’s no official data for it. Recently, the Swedish Gambling Authority fined four casinos with really high fines. For me, it was insane. I actually called my colleague and was furious with it. Because they tried to do their best and got punished for it.

Why should you have a licence if the thanks you get is a £6.5m ($9m) fine? They make mistakes and they play dirty as well, but they try to do it under a green flag.

So that’s the part I don’t like with these regulations; they tend to punish people that at least try to be compliant and pay taxes for their winnings. You could be a black-hat casino, not pay any taxes, not follow any rules, and if they are fined with £6.5m, they will say, ‘Okay, we will never pay that.’ It’s not really fair. I would rather see collaboration between companies and regulators. It’s the same in the UK. There have been insane fines. I don’t say these operators are fault-free but there has to be a collaboration between these parts, to make a better product.

Do you think your message of saying it’s not gambling’s fault might be a bit conflicted, given the fact you’ve provided several specific examples of where companies have gone out of their way to encourage addiction?

In the case of this guy, Lukas Better, yeah the casinos were doing a lot of dirty things. That’s not okay, because they are targeting a person they know has a problem. They know everything about

For me as long as the ‘why’ is about entertainment, it’s fine. But as soon as you start gambling to win money, I say you are on thin ice. Because then it’s so easy to slip over the edge the person and they target that person anyway. For me, that’s not okay. But I also believe in personal responsibility, so it’s not like the person is free of responsibility themselves. Of course, if you give alcohol to an alcoholic, they will drink more. You give a gambler an opportunity to thrive because what you do is you make them forget about their pain. You do everything you can do to ease their pain with something that is toxic to them. Naturally, then, the gambling industry is at fault.

But I don’t think it’s the gambling that’s the root cause of the problem. If you read the story of Lukas Better, his story is quite similar to many others.

You often see a person that has a pretty good life going on. He had a good job, was a respected person and everything was good in his life. Then he had an accident, so he went from being a happy person to someone who had something missing.

Then the addiction hit, the pain was so big and he found something to fill that void, so gambling became everything.

For me, this drop of happiness is the cause of the problem. But of course if a casino is

then throwing wood on this fire, that’s not okay. The gambling industry is not free of fault and they of course can be feeding the fire. I understand why they do that – to make money – but it’s still not okay.

If we can control that in some way, then I believe it would be beneficial for everyone.

What is the QuitGamble.com business model? Are you a not-for-profit organisation?

At this stage, I’m selling some links on my sites. We have some small revenue streams from old projects. I’m not working actively with my sites anymore; I just have them to get a little revenue so we can invest everything into our new project. I live from my savings to fund this project; I don’t see it as a non-profit and hope we have a revenue stream from it one day. But my focus right now is not to make money but to create a product that really works.

That is my driving force, however long it takes. I want to create something that can really help people and it feels good to have that drive. GAMBLINGINSIDER.COM

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FEATURES RESPONSIBLE GAMING

Safe and Secure Kayne Said of the Responsible Gaming Foundation (RGF) Malta opens up to Ezra Amacher on the organisation’s response to Covid-19, what its doing to slow problem gambling among youth and more What are some of the most significant changes in how the RGF operates today compared to when it opened in 2014?

The Responsible Gaming Foundation was founded on the 18 February, 2014, by the Malta Gaming Authority in conjunction with the then Parliamentary Secretary for Competitiveness and Economic Growth Edward Zammit Lewis, and then Social Solidarity and Family Affairs Minister Marie-Louise Coleiro Preca. An independent foundation’s requirement emerged following the debate in Parliament on the amendments of the Lotteries and Other Games Act to introduce regulations governing land-based gaming parlours. The Government and Opposition collectively agreed to establish a fund to promote responsible gaming, and initiatives and studies concerning responsible gaming measures, and actions.

After travelling through a seven-year journey, the Foundation saw significant changes.

It enhanced more awareness of problem gambling and responsible gaming measures among young ones through its educational 10 GAMBLINGINSIDER.COM

campaign in Primary schools around Malta and Gozo. It also helped adults through mediatic awareness campaigns on local TV and radio, social media pages, newspapers and magazines, as well as its website. The Foundation also strengthened its local research through the €1.1m ($1.31m) “Take Action Against Problem Gambling in Malta” project, which is part-financed by the European Social Fund, with its nonexecutive chairman Neville Mangion and GM and project leader Shawn Zammit. The Foundation also gave more importance to problem gambling alternatives by assisting local youth organisers in sports competition activities.

But most importantly, the Foundation’s main aim is providing more support and assistance to those suffering from the problem of gambling addiction through its helpline, an anonymous free-phone, where all information gets treated confidentially.

The Foundation works hand in hand with Caritas, Sedqa and FSWS among others to provide the necessary support to those who

call or contact the Foundation’s professional staff through its website’s chatline service.

Finally, it supports self-exclusion forms where a problematic gambler can self-exclude for six months, 12 months, or an indefinite period from land-based casinos, bingo halls, gaming parlours and lotto booths, all licensed by the Malta Gaming Authority.

What are some accomplishments you’re most proud of over the last year?

With the help of national research covering the period 2018-2019, we focused primarily on the local problem gambling reality. Three significant points that emerged from the study were that most of our teens and population, in general, started gambling between the ages of 19 and 24 and spent less than €10 monthly. Problematic individuals spent between 100% and 150% of their annual salary on gambling, and the National Lottery remains the most popular gamble on the Maltese Islands. With this project’s help, the Foundation made it its mission to provide training to different sectors that make direct

RESPONSIBLE GAMING FEATURES or indirect contact with problem gamblers in their line of work. The training program is well underway, specialised towards primary stakeholders. Later this year, this national research will lead the way to a national awareness campaign for the Foundation to be more of a service for those problematic gamblers in need of its help.

How has funding for the RGF been impacted by the Covid-19 pandemic?

What can you share about the financial outlook of the organisation looking ahead to the rest of 2021?

The Covid-19 pandemic has had a minimal impact on the Foundation’s funding, and its working course continued moving on steadily because of its capability to still offer its services even remotely from March till June 2020. In the meantime, looking ahead to 2021, the Foundation’s work agenda looks positive, together with its financial outlook.

Has the pandemic altered how RGF advertises itself to problem gamblers?

During the pandemic, the Foundation took a sound decision to focus more on an online prevention marketing strategy when most of the Maltese population were under partial lockdown imposed by the Government’s Health Authorities. Interesting features were created and boosted on the Foundation’s social media pages, where the main targets were parents, youth, gamblers and nongamblers and families. These features focused on preventive measures about screen-time, the benefits of alternatives to extreme gambling and gaming, children’s ideas and mentality in regard to technology and so on. In the meantime, the Foundation’s call centre and self-barring support for problem gamblers were advertised via newspaper articles and also spots on national television.

What strategies does RGF use to target underage and young problem gamblers?

Are younger gamblers at higher risk of developing problem gambling disorders, and if so, why?

In January 2015, the Foundation embarked on a national education campaign for Year 4 Primary Students in collaboration with the Ministry of Education. Through this campaign, the Foundation visits schools around Malta and Gozo, together with its mascot Chippy, to raise awareness about problem gambling prevention; support children already with a gambling problem; and support those family members around people addicted to the gambling problem.

The Foundation raises awareness on responsible gaming, adverse effects of playing irresponsibly, console gaming addiction, the importance of adhering to the PEGI Number, and the extent to say no. As mentioned, most of our teens and population, in general, started gambling

between the ages of 19 and 24 and spent less then €10 monthly. If this, by any chance whatsoever, can lead to problematic gambling in their future, the Foundation will be there to raise awareness from their early age. Furthermore, through the promulgation of the Malta Gaming Authority’s Gaming Player Protection Regulations in 2018, various safeguards regarding fair gaming are now in place; to prevent gaming by minors and hence protect vulnerable people and ensures that all players’ interests are adequately safeguarded.

Does the recent rise of esports add to the risk of young gamblers getting hooked on igaming?

Young gamblers can get hooked to remote gaming in various ways, not only through esports. If our young ones learn to play and gamble responsibly through time and monetary limits, it is okay. Problems start to arise once those limits begin to get surpassed regularly with pathological consequences.

What other demographics stick out as being especially at risk for problem gambling?

According to a survey conducted by the Malta Gaming Authority during the first quarter of 2018, around 186,849 individuals aged 18 and over have gambled money on some form of

gaming activity. Up to 2% of those individuals (2,000-4,000 individuals) reported some form of adverse effect on their lifestyle after acquiring gaming services against payment.

The persons who are highly engaged in gambling activities and hence can be at risk of problem gambling are most likely to be young adults or senior citizens (45 years and over) from the northern or southern Port districts and have a secondary education level.

What is RGF’s stance on remote gaming payment options?

The Foundation believes in the regulation and constant monitoring of responsible gaming measures, which are being administered continuously by the Malta Gaming Authority on its licensees. Operators should ensure their platforms are safe locations where players can enjoy themselves in a safe environment, and develop all transactions and processes with the necessary checks.

In the meantime, player data and financial details should always be protected by the respective platforms. This leads to a safer and more secure online environment, and the Foundation favours this.

Overall, the Responsible Gaming Foundation believes that there needs to be more awareness through educational campaigns, more research, and alternatives to gambling; and more support to those problem gamblers in need.

Kayne Said

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FEATURES MALTA REGULATION

Keeping the pace Newly appointed Malta Gaming Authority CEO Carl Brincat speaks to Gambling Insider about the changing face of Maltese gaming and regulation After over six years with the Malta Gaming Authority (MGA), Carl Brincat was made MGA CEO in January. The appointment took place following a public call for applications in December, with Brincat succeeding Heathcliff Farrugia, who became CEO in 2018 and announced he wouldn’t renew his tenure in November 2020. A lawyer by profession, Brincat previously served as the MGA’s chief legal & enforcement officer and declared his honour at stepping into the position at “such a critical juncture for the MGA and industry alike”.

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At the time of his appointment, Brincat said: “I am proud of the work that has been done by the Authority so far in raising regulatory standards and committed to ensuring we continue along this path.

However, it is essential we cultivate stronger partnerships with other regulators and stakeholders, and the industry itself, to achieve a regulatory environment that accomplishes the MGA’s objectives as set out in the law in the most effective, transparent and proportionate manner.”

With such an important role to play

within gaming regulation, Gambling Insider caught up with Brincat, discussing how Malta has changed from a regulatory and business perspective, as well as the impact of the Covid-19 pandemic and the CEO’s future goals.

How has Malta changed from a regulatory perspective?

The past few years have seen significant changes in the regulatory framework in Malta. It has already been almost three years now since we changed the entire legal

MALTA REGULATION FEATURES framework in 2018, but that was a watershed moment that introduced systemic changes to how we regulate, with our processes naturally following suit in changing as well. The regulatory objectives have remained constant and clear, and therefore the focus has remained on ensuring gaming is free from crime and that the players are safeguarded.

However, gaming regulation has continued to develop as the industry itself changes, and as other legal obligations, such as those related to anti-money laundering and data protection, become increasingly important in how the industry operates. The intersection of the various legal frameworks necessitates constant tweaks to regulation.

particular circumstances of a jurisdiction will entail the exercise of different regulatory approaches. The MGA acknowledges this and has had the opportunity to collaborate with other jurisdictions, with the goal of furthering the dissemination of knowledge and expertise. This has enabled the MGA to learn from its international counterparts and implement the knowledge garnered as a result of such collaboration in its practices. Along with other initiatives being taken throughout recent years, this learning process has enabled Malta to continue being a jurisdiction of choice for operators, while ensuring a reputable regulatory framework.

How has Malta gaming changed from a business perspective?

As compliance costs continue to increase for global operators, the industry in Malta has seen a lot of mergers and acquisitions to achieve greater cost-efficiencies and economies of scale. Although the industry remains one of the most dynamic and innovative, we have also seen that as the industry continues to mature, a certain level of stability is sought and corporate governance structures become increasingly more important, as operators know it’s only by being well-governed and compliant that they can ensure sustainable growth.

How has the Covid-19 pandemic changed things in Malta and has it made any changes for the long term regarding business and regulation?

The industry is one of the sectors that, in light of it being very technology-driven, has adapted very well to the challenges of working in a Covid environment. As much of a disruptor as the pandemic has been, and continues to be, it has also been a driver of change and has required the rethinking of certain processes and work practices that were perhaps the result of legacy decisions, but could be done away with in the modern age. At the MGA, it served as a wake-up call on certain practices we had in place that were

Would you say the MGA has had to adapt to the changing industry in recent years?

Yes, when the industry changes it’s only natural that the regulator must change in turn, to keep the pace. We have moved, and continue to move, towards further digitalisation of our processes and of the submissions that we require of our licensees. Moreover, with new and more complex financial structures taking an interest in the sector, our capacity of understanding them to ensure that our checks are tailored in such a way as to achieve, in the best manner possible, our regulatory objectives, has required constant change within the MGA; and I don’t foresee that slowing down in any way. Rather, we want to accelerate our continued growth as a regulator to strike the balance between being sufficiently rapid and flexible for such a dynamic industry, while at the same time never prejudicing the rigour of our checks.

Where do you see Malta’s standing now as a gaming licensing jurisdiction, compared to other jurisdictions globally?

The multitude of gaming markets found across the globe inevitably gives rise to different regulatory frameworks to address the needs emerging from such diverse markets. As a consequence of this, the

not conducive to the digital submission of all information, and we started implementing changes on that front.

These changes will be long term, as the restrictions that had to be put in place because of the pandemic served to challenge practices and to educate us on where we can improve.

The same can be said for business, which has also gone through forced growth in this sense, including with the introduction of increased remote working. Although when things get back to normal, it’s more than likely everyone will want to go back to the office; lessons learned about the effectiveness of a certain element of remote and flexible working will most likely be retained, which will allow greater freedom for many employees to better fit their work within the framework of their personal commitments.

Where do you see Malta gaming in a further few years?

With the combination of the MGA’s commitment to continuously improving as the regulator of the sector, and Government’s commitment to ensuring Malta remains an attractive and competitive place of establishment for the gaming industry, I can only envisage that the industry will continue to thrive in Malta. The various stakeholders all have a mutual end goal, namely that the industry grows in Malta in a compliant and sustainable manner. 

Carl Brincat

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FEATURES EMAN PULIS

Crypto-skeptics to crypto-centrics?

SiGMA founder Eman Pulis speaks to Gambling Insider about the blockchain island – and gives a balanced account of crypto’s recent surge With Malta dubbed the ‘blockchain island,’ and with the country also being the host nation of AIBC, the annual blockchain summit, (when it isn’t locked down), the recent prominence of Bitcoin has no doubt caught the attention of the Maltese population. One such member of the populace is SiGMA founder Eman Pulis, who is most definitely a blockchain, crypto and Bitcoin proponent.

With the recent surge in Bitcoin prices certainly gauging his interest, Gambling Insider caught up with Pulis to talk all things Malta and blockchain. Discussing everything from Elon Musk to specific uses for crypto in gaming, Pulis tells us why blockchain and crypto are back on the table for mainstream discussion in 2021. Although he himself is a big crypto supporter, Pulis give an honest account of the current state 14 GAMBLINGINSIDER.COM

of play, including the admission many remain skeptical about blockchain. Retail banks, says Pulis, remain some of the most high-profile skeptics to date…

Is Malta still living up to its reputation of being the blockchain island?

Malta has certainly established itself as one of the more progressive countries when it comes to crypto and blockchain regulation.

The island is still at the forefront of crypto regulation, with it being one of the first countries to regulate the cryptocurrency business. There was also a previous issue regarding regulatory clarity, which has been rectified recently. So much so that in November 2020, Crypto.com became the first cryptocurrency platforms to receive in-principal approval by the crypto

regulatory body – the Malta Financial Services Authority (MFSA). However, there is still an issue regarding the banks, with few retail banks showing the willingness to work with crypto firms here in Malta.

Banks have written off cryptocurrency in its early stages but with the constant rise in value of Bitcoin and other cryptos, it may be a matter of time before they jump on board. Especially when huge corporations are backing this sort of business, like we have seen with Tesla and even Goldman Sachs relaunching its Bitcoin trade desk.

With the price of Bitcoin recently soaring, are cryptocurrencies growing at the rate proponents predicted several years ago?

Many Bitcoin advocates were certain that

EMAN PULIS FEATURES cryptocurrencies would eventually reach high value while others were very skeptical due to its volatility, and are still skeptical to today. Bitcoin and other cryptocurrencies have certainly surprised even their biggest supporters with their sudden rise in value.

Many experts thought that Bitcoin would have reached the $35,000 mark when instead it shot up to $50,000, a pleasant surprise to say the least.

However, there is still room for Bitcoin and other cryptocurrencies to grow and with many financial institutions backing these digital assets as well as companies like Tesla, it will only be a matter of time until cryptocurrencies will be used in everyday life. I look forward to seeing the price of cryptocurrencies in another 10 years – hopefully there will be more surprises along the way.

How helpful is having a big name like Elon Musk behind the idea, constantly promoting it in the mainstream?

Nowadays for something to take off it is almost essential to enter the mainstream. Having companies like Tesla, Goldman Sachs, Ruffier and PayPal all backing cryptocurrencies gives confidence to those people who are unsure whether to invest in them or not, giving them that little push they need.

Elon Musk and other big influencers will certainly help with crypto-adoption and, as we saw this year, they are capable of influencing the price of cryptocurrencies too.

Within gaming itself, the impression Gambling Insider had is that crypto was a big deal a couple of years ago but it has actually quietened down now.

Would you disagree with this view?

Bitcoin was always hovering around but exploded in 2020. The online gambling industry is becoming revolutionised with this technology nowadays, turning the industry on its head. The gaming industry is experiencing a rise in Bitcoin deposits and withdrawals in online casinos, with many companies integrating crypto into their systems. Crypto was a big deal a couple of years ago but it is a bigger deal now.

Do you have any personal plans and targets when it comes to using cryptocurrency?

AIBC is always interested in exploring new markets and learning more about an already-thriving industry. Through our conferences, events and news page, AIBC is constantly up-to-date with the crypto and blockchain industry but there is always room for more when it comes to education. AIBC strives to be at the top when it comes to crypto and blockchain and our events certainly put us in the position to be at the forefront of this industry.

What specific examples of crypto growth and adoption have you seen within gaming?

From crypto loot boxes to digital collectibles (NBA TopShot), the variety of new crypto products within gaming is astonishing. Digital collectibles and NFTs such as NBA Top Shot are set to take crypto adoption to the next level, with other major sports leagues set to join in on the fun – there are talks of UFC, NFL and MLB implementing this new “moments” collectible platform.

Crypto loot boxes are also an innovative new invention, with more information on that in our next Block magazine issue.

There is an important role for blockchain technology in a regulated gaming market, especially with the ease at which customers are able to deposit and withdraw gambling funds compared to banking options.

If you could single out the one main advantage of blockchain technology and cryptocurrency, what would it be?

There are numerous advantages when it comes to blockchain technology and cryptocurrency but the main advantage could possibly be that it is decentralised. Why? It provides a greater and fairer service. It also provides a trustless environment – you do not need to know anyone within the industry as every member within the network will have the same copy of data through a distributed ledger.

If a ledger is manipulated in any way it will be rejected. So this decentralised environment also brings about high levels of security. This takes the power away from authorities and centralised networks and, therefore, gives the power back to the people.

Banks have written off cryptocurrency in its early stages but with the constant rise in value of Bitcoin and other cryptos, it may be a matter of time before they jump on board. Especially when huge corporations are backing this sort of business, like we have seen with Tesla and even Goldman Sachs relaunching its Bitcoin trade desk Eman Pulis GAMBLINGINSIDER.COM 15

FEATURES IGAMING ACADEMY

An efficient route to compliance Jaime Debono, MD of iGaming Academy, depicts an increasingly hazardous regulatory landscape, but shows compliance can still be achieved efficiently

The burden on operators is increasing as regulators strengthen compliance measures worldwide. Regulators are adopting an increasingly hard-line approach, motivated by a very public commitment to protect customers.

“We are absolutely clear about our expectations of operators,” says Gambling Commission chief executive Neil McArthur. “Whatever type of gambling they offer they must know their customers.

They must interact with them and check what they can afford to gamble with, stepping in when they see signs of harm.

Consumer safety is non-negotiable.”

The Malta Gaming Authority (MGA) recently revealed it cancelled seven licences during H1 2020. Under newly appointed CEO Carl Brincat (who features in this publication) the Authority is pursuing an agenda of increased regulatory standards and is “committed to ensuring we continue along this path”.

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This trend can be seen across Europe.

As countries such as Germany and the Netherlands begin to implement new igaming regulations, they are likely to compare themselves against ‘gold standard’ benchmarks seen in neighboring jurisdictions. Compliance departments within European operators certainly have their work cut out, both in terms of anticipating what’s ahead and in managing existing regulations.

In the year ahead, the industry is undoubtedly in the regulatory spotlight and operators will be expected – or indeed, required – to make significant changes in how they operate across many territories.

The challenge will come in stepping up their performance (or as the MGA puts it “ensuring gaming is fair and transparent to the players, preventing crime, corruption and money laundering and by protecting minor and vulnerable players”) while retaining business performance.

THE WEAKEST LINKS: COMMON FAILINGS Looking back at 2020 it is clear not only that regulators are becoming stricter, but also that there are key themes in activities which are frequently penalised.

Analysing the MGA’s H1, for example, operators were falling foul of regulation 9 (1) of Malta’s Gaming Compliance and Enforcement Regulations. Some failed to follow regulatory obligations or ensure the integrity and availability of essential regulatory data, while others failed to submit completed compliance contribution calculators and player fund reports. The common theme across these, however, was failure to pay licence fees and taxes in a timely manner – something easily fixed with tighter management or staff training.

In H1 2020, the MGA conducted 16 compliance audits and 153 checks on online gaming operators. These resulted in the revocation of seven licences,

IGAMING ACADEMY FEATURES suspension of two others, and nine fines, as well as 11 warnings and 20 further notices of breaches or sanctions. Many of the Authority’s checks focus on ensuring there are clear anti money-laundering (AML) and responsible gaming functions present within licensees’ business structures, and particularly that named individuals are accountable and equipped to oversee as required. Misleading advertising (particularly around Covid-19) resulted in warnings for 11 operators. At the extreme end of the scale, over €2.3m ($2.8m) was confiscated in H1 as proceeds made through unlicensed gaming activities.

Last year the Gambling Commission penalised UK operators along similarly common themes, issuing financial penalties amounting to tens of millions of pounds; inadequate AML practices and social responsibility failures were cited in a number of cases. Specific examples highlighted by the Commission included customers who had previously self-excluded but were then allowed to lose several hundred thousand pounds each. Others were permitted to gamble with stolen money. Some operators failed to properly screen VIP customers which, under the UK Money Laundering Regulations of 2017, they are obliged to do.

Two clear lessons can be learned from regulators’ increasing scrutiny. First, it’s vital that operators commit to achieving compliance with legislation to avoid highly damaging action like licence withdrawals or fines. Second, however, we can also learn that with such intense scrutiny it is vital operators work alongside regulators to establish trust and efficiency as checks are conducted.

conducted last July by polling company Survation indicated that 40% of people in Britain, for example, now favour a complete ban on online gambling. This is an extremely fine line on which we tread; only an industry that proves it can truly ‘play by the rules’ will win the public’s trust and support.

Government attention – There is only so far that the igaming industry can push before it attracts government attention.

While the vast majority act in the best interests of customers, there will always be outliers that push boundaries and provide fuel for political agendas to bring about tougher regulation. The goal of industry must therefore be to prove an absolute commitment to develop best practice in protecting customers and a desire to self-regulate to as great an extent as possible.

Employee perception – Employees prefer to work for organisations that do things the right way, both from an ethical and a job security point of view. Our industry’s skills shortage – particularly in Malta – is well-known. Those with strong compliance credentials may be adding an all-important talent attraction factor to the mix.

STRUCTURING FOR COMPLIANCE EFFICIENCY It makes incredibly good business sense to ensure maximum compliance with regulation for ethical, financial and reputational reasons, but it’s also essential

to have an efficient plan for doing so.

Three elements are critical to consider: policy, procedure and control. The policy sets out in a clear written statement how the company does things and sets out its commitment to meeting its compliance responsibilities. The procedure then maps that responsibility to a named individual employee. And the control measures assign management responsibility to include adequate monitoring.

At every level of an organisation, staff need to know their responsibilities and understand how to apply them to protect themselves, their company and the industry as a whole. Effective training is critical for achieving this in an efficient timescale. In the best cases, businesses can approach compliance in a way that truly supports core company values and becomes a central component of its culture.

There are efficient routes to managing compliance responsibilities that in fact create tangible benefits for business. Each of the ‘hidden costs’ highlighted above can be flipped to become ‘discovered benefits’: positive company image, favourable public support, strong political alignment and attractive recruitment brands. If operators approach their responsibilities efficiently and effectively, these benefits will remain well within reach.  Jaime Debono is managing director of iGaming Academy, which provides highly effective compliance training services for business in Malta, Europe and worldwide. igacademy.com

HIDDEN COSTS OF NON-COMPLIANCE Regulators only issue fines and withdraw licences as a last resort, and there are many factors to consider when understanding compliance risks. Four ‘hidden costs’ beyond the headline action taken by regulators include: Company image – Every time an operator makes major headlines for the wrong reasons, it damages not only their reputation, but also their bottom line. They risk losing customers and investment as public opinion moves towards companies seen as more reputable. According to a study by the World Economic Forum, on average, more than 25% of a company’s market value is directly attributable to its reputation.

Industry trust – Ensuring the positive perception of our industry in the public eye is in all our best interests. A survey

Jaime Debono GAMBLINGINSIDER.COM 17

FEATURES ROGER STRICKLAND JR.

Well positioned to capitalise Roger Strickland Jr., CSB Group director, online gaming and business development, speaks to Malta Focus about why the region is the hub of online gaming and how it adapted successfully to the challenges presented by the coronavirus pandemic Malta was the first European Union (EU) country to enact sector specific gaming regulations, which is now more than 14 years ago. Over the course of that time, these regulations have changed considerably to adapt to evolving technology and to the ever-changing needs and ways of operating online providers and gaming operators.

Furthermore, there has been a huge emphasis on new products, game types and services offered to an increasingly more demanding audience. I have worked in the igaming industry for the past 14 18 GAMBLINGINSIDER.COM

years so I have experienced igaming since its inception in Malta and it has been quite interesting to witness the developments in this sector over time.

If you look at what instigated development in the last 14 years, technology is certainly a strong element whereby it gave operators the opportunity to offer a wider variety of games, not just casino and slots. With technology changing faster than regulation, the Malta Gaming Authority (MGA) obviously had to adapt in a prompt manner. In fact, our regulations

were changed in 2018 and became more in tune with advancements in technology and game vertical choice taking place in the industry.

From a regulatory perspective, over the past two years we have witnessed considerable changes from the MGA in the regulatory and compliance fronts. This significant compliance drive bolstered the reputation of a Malta license stamping firmly Malta’s intention to not only strengthen the credibility of its institutions, but more importantly to re-engage new and serious

ROGER STRICKLAND JR. FEATURES prospects to consider licensing on Malta.

Malta’s online gaming industry has strengthened over the past 14 years, not without any hiccups, admittedly, but the collective efforts from all stakeholders have ensured that Malta’s igaming ecosystem grew and flourished. One of the prime reasons for this is definitely the regulatory landscape the MGA built coupled with a pro-active government investing in sectors that gave value-added services that resonated across various local industries.

A PROACTIVE GAMING AUTHORITY KEY Having dealt with the MGA on behalf of our igaming clients’ licence applications for many years now, I firmly believe that the knowledge factor and professionalism that has grown within the Authority is tantamount to the success that it has achieved. The MGA has evolved tremendously over the years, and having dealt with other state authorities across Europe, I can firmly say that it commands respect in the sector as being a leader and pioneer in gaming regulation. The authority is approachable and proactive in assisting clients.

MALTA AS THE HUB OF GAMING With Malta’s history in gaming and the influx of operators who have moved here, growth is looking extremely promising, especially with the online spike witnessed by the industry over the past year. In essence what we have here is an ecosystem made up of different players or members forming the online gaming industry as we know it. Most of the major operators in the industry have relocated to Malta, and igaming accounts for around 12% of the Island’s GDP. Malta has established itself as a

hub for gaming and the combination of different industries coming together has created a perfect environment for gaming operators to thrive in.

MALTA BEST PLACED TO DEAL WITH THE PANDEMIC I have always been extremely impressed with the speed of how gaming companies can change so quickly in order to adapt to jurisdiction and licensing scenarios. Now we are living in a situation where everyone had to change the way they work. The pandemic created a block to sporting events for a while but operators switched to virtual sports and e-sports. A shift was also seen towards casino products and, again, operators worked tirelessly to increase the products and games on offer.

Retention of customers was now key and operators ensured that customers kept coming back for more entertainment.

From a local human resources perspective, most remote gaming employees always had the opportunity to work from home. Even before the pandemic, there were options for employees to work from home two or three days a week because the nature of the job, for some people at least, allows it even if face-to-face meetings and contact are occasionally required. You can have a perfectly good meeting on video conferencing apps, so it was just a matter of adapting to the situation with new technology that acts as the essence and backbone of a gaming business.

I believe that during the pandemic, the industry in Malta has adapted extremely well to the new online landscape, and being a leader of innovation, it had less adapting to do compared to other industries. Of course, it had its challenges and there

were moments the pandemic created delays, but this also applied to authorities worldwide who would have also experienced a slowdown at a certain point. At the beginning of the pandemic, it was a case of “is this really happening”, but as we moved through it, people started to accept the new reality and come up with solutions.

ADAPTING FOR LONG-TERM SUCCESS In terms of lasting trends, companies have realised that even with team members working remotely, work still gets done and productivity is equally high. We have witnessed numerous companies that switched to a remote working strategy and are considering to apply the same arrangements even post-pandemic.

When you look at trade shows, a lot of these events were held virtually and a lot of them have been very successful.

That could also have a long-lasting effect when it comes to future tradeshows and events in the industry because people have realised that if they are innovative and clever about how they work, they could save time and money yet increase productivity and staff retention. Personally speaking, I have always been in business development and I like to meet face-to-face and I sincerely hope that we can soon go back to conducting business in this way.

For businesses that were solely offering a single vertical and were undoubtedly impacted by the pandemic, then definitely the way forward for them is to diversify and look at other verticals that they will be capable of using to their advantage should another pandemic take hold in the future, God forbid.

The MGA has evolved tremendously over the years, and having dealt with other state authorities across Europe, I can firmly say that it commands respect in the sector as being a leader and pioneer in gaming regulation.

The authority is approachable and proactive in assisting clients Roger Strickland Jr.

GAMBLINGINSIDER.COM 19

FEATURES ENTERACTIVE

Turning churn into return Andrew Foster, head of business development at Enteractive, discusses the importance of personalisation in regard to player retention, and how sharing the love keeps players coming back for more

Andrew Foster

It’s a story as old as the igaming sector itself: How do you keep players coming back for more? While igaming operators and affiliate sites remain full of enticing offers and bonuses to get new players onboard, there’s less attention paid to keeping those players happy and enjoying the entertainment, rather than just hopping over to another igaming brand to try out their special offers.

Sometimes it feels very ‘us and them’ as we all dance around trying to grab players’ attention with ‘come here’ messaging. But the players are the industry’s greatest asset; we wouldn’t exist without them. So why aren’t we paying more attention to keeping the players once we attract them in the first place?

Customer attrition, or customer churn, is the rate of turnover of players that defect to a competitor or simply never return to a brand’s igaming site. Most operators define 20 GAMBLINGINSIDER.COM

a customer as ‘churned’ after an inactive period of three to six months, but that’s a long time to be losing out on possible revenue, and generic email campaigns or other digital CRM activities just aren’t enough to prompt action by the player these days.

Research shows that 68% of players will leave a brand if they feel under-appreciated, but four out of five players are happy to be contacted at least once a month about promotions, updates and the latest offers.

And 51% of players feel more loved when we call them for a personal chat, compared to email (13%), SMS (12%), and Live Chat (24%). These figures show we should be spending more time developing relationships with the players, rather than automating the B2C marketing processes.

That’s why ‘personalisation’ has become a keyword for engaging with customers, not just in the igaming sector, but across global consumer markets.

As time marches on and new audiences enter the igaming ecosystem, we need to change and adapt the way we interact and engage with players, based on their preferences and new cultural and generational differences. Millennials and Gen Zs have grown up in a world based around technology and have new expectations from the brands they follow, so of course they have a different set of touchpoints for interaction.

Both Millennials (72%) and Gen Zs (64%) think that brands should provide a more personalised experience, and since these two groups will make up 52% of consumers by 2027, it’s important that we adapt now as an industry to ensure we don’t lose touch with them.

But this isn’t a problem for the future, it requires a solution now. Reactivating churned players can have a big impact on operators’ P&L, bringing back a sizable percentage of lapsed players and emphasising the need to have a solid strategy to reduce customer attrition in the here and now. The longer operators wait, more

players will churn and move to other brands, increasing their market share and making the competition stronger.

Improving ways to engage with the players might take a bit more effort but the pay-off is worth it. Even with email and SMS, using a degree of personalisation can boost success rates fourfold. This increases even more when the player receives a phone call from a real person to engage in a conversation. At Enteractive, as a result of our call campaigns, we convert up to 15% of a client’s inactive player base into active depositing customers, resulting in around 250% ROI on average.

With phone calls to players, the personalisation is baked into the experience.

In outreach to players, speaking to players one-on-one, with native-speaking call agents who know the market and local culture, means players feel valued as well as heard.

They like to have a chat, they offer their opinions, and they also discuss any problems they’re having, meaning any RG issues get flagged early on and passed back to the operator in real time. They feel listened to, cared for and more individual, breeding greater trust in the brand and often prompting new deposits from safe players.

That’s the best way to understand how personalisation can make such a big difference in the player experience, and in turn to operators’ bottom line revenues.

It’s a win-win scenario, with the player benefiting as well as the operator.

Personalisation is perhaps the best way to reactivate players, but as a strategy it shouldn’t be limited to only the dormant or lapsed player accounts. By making the player feel special and noticed all the way through their playing experience, operators can develop better relationships with their existing players and decrease customer attrition rates across the player journey.

Imagine calling a player to welcome them to the brand. That would surely make a lasting impact and they would be much more unlikely to churn in the first place.

FEATURES DANIEL ESKOLA

Something to celebrate Daniel Eskola, CCO at Relax Gaming, details the optimism that has sustained the company for the past decade, and the winning formula to come out the other side of the pandemic stronger than before We hear an anniversary is coming up for Relax Gaming. How does the company reflect on its journey to date after 11 years?

It has been an amazing journey so far – and we’ve really driven differentiation in the industry to the point where we can consider our offering unique.

Our story starts at humble beginnings, which saw us develop one of the first player ecosystems with easy-to-use poker software; 22 GAMBLINGINSIDER.COM

which even today, after a decade, is still going strong. The same has rung true for our other initial product verticals, such as with our bingo offering, Hexabingo, which was a real game-changer for online bingo at the time.

Our casino platform has also come a long way, stealing the spotlight with hit titles such as Money Train 2 and Temple Tumble. Complemented by our aggregation platform, our presence in the

field has grown exponentially, through the unique, localised content we deliver to market at speed.

It’s been a memorable journey full of many accomplishments, and we’ve no plans of slowing down. From our early days in Finland, we’ve gone on to expand our network of hubs to include eight European countries, and we’ve set our sights on many more; so I have no doubt 2021 will be another exciting year.

DANIEL ESKOLA FEATURES

Our newly opened Stockholm games studio will no doubt deliver on our roadmap for high-quality content. And this will be complemented by aggressive moves into new jurisdictions, such as Spain, Italy, the Netherlands and eventually the US Daniel Eskola

How are you planning to mark the occasion, and has the pandemic changed those plans?

We had big plans to celebrate our 10 years in 2020, with the entire company coming together to mark the historical occasion. However, given the events of the last 12 months, we’ve unfortunately had to postpone these celebrations.

When the pandemic is finally behind us, we will certainly make up for lost time, and it’ll be our aim to combine our 10th and 11th-year anniversaries for an even bigger celebration.

Until that day comes, however, we’ve made sure to keep ourselves busy organising a wealth of virtual events for the team. This includes a raft of activities including tournaments, which have been a particular favourite, that offer some great prizes for our teams across Europe to enjoy.

How have you adapted your operations in Malta during the past year?

Working from home has been the norm since the early spring of 2020, so that’s certainly resulted in changes that were needed to adapt to the situation.

Looking back, I’m very happy with how we’ve adjusted, as well as pulling out all the stops to ensure we can successfully engage and work with our teams remotely. This has ensured we’ve been able to maintain both the high productivity that we pride ourselves on at Relax, as well as keeping spirits high.

Despite the obstacles, last year was an

outstanding year commercially, and I’m very grateful to everyone who helped to make that happen by ensuring we could continue to help the industry evolve and scale in line with the opportunities last year presented.

Looking forward, we’ve moved into a new, upgraded and larger head office in Malta, and I can’t wait to welcome everyone back when things eventually return to normal, however that may look. Until then, we’ll be doing what we do best: driving differentiation. With plenty of incentives in the works to keep up morale, we’ll be running group activities and other means to help our teams follow a healthy lifestyle while working from home. In addition, we’ll have monthly virtual presentations and games to bring everyone together, even if it’s only online.

What are the company’s expansion goals in 2021 and are there any new markets you are targeting?

Rapid market growth has been a benchmark for annual success for Relax in recent years and looking ahead, I expect that to be no different.

On the commercial front, we’ve got plenty of plans for expansion. Our newly opened Stockholm games studio will no doubt deliver on our roadmap for high-quality content. And this will be complemented by aggressive moves into new jurisdictions, such as Spain, Italy, the Netherlands and eventually the US. The UK market is also another strong growth area for us, reflected in our growing physical presence in

Gibraltar. We’ve seen recent launches with the likes of Paddy Power, Betfair and 32Red, as well as plenty more announcements in the pipeline for later in the year.

In my view, growth of this nature is best maximised by applying the correct, bespoke strategy for each region, including the provision of localised content unique to those player demographics. Catering to regional tastes and trends can be greatly enhanced with a diverse suite of titles and the equivalent insight into individual markets; and it’s one of the things we really do best when it comes to driving differentiation and creating a unique experience for players.

Of your existing markets, which would you say currently performs the strongest?

Looking at our portfolio, we have our two standout performers mentioned earlier, both of which are proving to smash expectations in every market we’re live in.

Having said that, and taking a more historical view, we traditionally have a strong foothold in the Nordics, and I’m very proud of the strength Relax has there in terms of brand value. And just to reiterate, we’ve got serious plans to further expand our gaming catalogue; if the last few years are anything to go by, it won’t be long until we reach our targets. GAMBLINGINSIDER.COM 23

FEATURES BOSTON LINK

The state of the igaming job market in Malta The igaming jobs market is running at full speed in 2021 and according to Julian Perigo, managing director at leading international igaming talent acquisition firm Boston Link, don’t expect it to slow down any time soon It’s hard not to feel fortunate in Malta.

As the rest of Europe battles with harsh winter weather, strict lockdowns and stubbornly high Covid infection rates, Malta resembles something very close to normal. Schools and offices are open, restaurants are busy and the sun, as always, is shining. Malta went into the pandemic in stormy conditions but looks to be emerging with a fair wind.

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Yet only 12 months ago there was a growing sense that the good times were over. A rapidly rising cost of living was affecting quality of life and driving talent away from the island; Moneyval and the looming possibility of EU grey-listing was making it increasingly difficult to open and operate bank accounts. Promising new sectors such as blockchain and AI were not materialising as hoped either.

A year on and there is a feeling of renewed optimism that many would not have predicted. If it is possible to have a good pandemic, Malta can make that claim. The Government seems to have got the balance right between the public health priorities and supporting the economy. And with the vaccine rollout in Malta, the fastest in Europe, the island looks primed to bounce back.

BOSTON LINK FEATURES Indeed the European Commission recently suggested that brighter days lie ahead, with a 4.5% growth forecast this year. And by 2022, Malta’s economy is predicted to expand by 5.4% – again the fastest growth in the EU. As a specialist recruitment company headquartered on the Maltese island, this is certainly matching our own experience on the ground. While during the first lockdown in 2020 we saw a 25% to 30% decrease in the number of jobs available, in recent months, the number of new job mandates are consistently above pre-Covid levels.

We’re seeing a particularly resilient jobs market in the igaming industry, which seems to have been largely unaffected by the pandemic. Existing MGA-licensed businesses are expanding and despite any travel restrictions, new operators are continuing to come to the island.

Igaming is a significant contributor to the Maltese economy and accounts for 15% of Malta’s GDP, and that’s a major reason why confidence levels in Malta seem to be considerably higher than in other locations.

The unprecedented change this year of how people work and live has presented many challenges to the igaming sector, not least of which in talent acquisition and retention.

Companies that have traditionally invested heavily in creating modern and cool offices for their teams have instead needed to develop remote working strategies that keep their teams bonded, and their people just as motivated.

We have noticed company benefits are evolving to reflect this. For instance, Friday beers and in-house chefs for lunch menus aren’t as attractive as they once were. Individuals are now looking for working from home (WFH) contribution costs, childcare cost support and increased flexibility. As companies recruit and retain people from new talent pools with new skill sets, realigning company culture to adhere to the needs of candidates has become extremely important.

The type of job opportunities that we are seeing in igaming is also changing. As the sector becomes more data driven, we are seeing increased demand for data-led skill-sets. And as the industry becomes more regulated, there is also a greater focus on compliance roles.

Through our own analysis of igaming salaries in Malta for the annual Boston Link Salary Survey, we have observed higher salaries for certain positions at the executive level, particularly in finance, legal and compliance. However in general, salaries have remained stable throughout 2020 and we do not expect any significant salary inflation throughout 2021.

As a small island with a limited talent pool, Malta has often relied on bringing in talent from off the island. With the switch to remote working and travel restrictions, companies now have to decide whether to hire locally in anticipation of employees returning to the office, or whether to increase their options by hiring a more remote workforce.

It’s too early to say what the long-term impact of this will be for the Malta

igaming jobs market. However, in the short term, there’s certainly more flexibility about where you’re based.

We are regularly receiving instructions where candidates have the opportunity to be based anywhere, or at least anywhere within the same time zone. Clearly it’s beneficial for the Maltese economy for additional jobs to be created here, and Malta has always been quick to respond to opportunities and threats to its economy. This is no exception. In fact, we are seeing the Government taking various steps in 2021 to address some of these labour market challenges, such as strengthening and sustaining the number of women and people with disabilities in the labour market. We’re also seeing efforts to up-skill or even re-skill the Maltese workforce.

Robert Abela, the Prime Minister of Malta, also recently announced an interest in turning Malta into a digital nomad destination. The aim of this digital-first initiative, led by Nomad Digital Europe, is to attract and retain top tech talent to the island to support the igaming ecosystems. While such changes aren’t largely deployed yet, we expect these initiatives will make Malta even more attractive for employers and employees in the igaming industry.

For now, while business leaders are asking questions about the future and the long-term impact of Covid-19, organisations in Malta are heavily investing in top talent to support the work of igaming; and that is surely a positive for Malta and the industry. 

Companies that have traditionally invested heavily in creating modern and cool offices for their teams have instead needed to develop remote working strategies that keep their teams bonded, and their people just as motivated Julian Perigo

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FEATURES AGGREGATION

The names of the game Christine Lewis, chief commercial officer at Pariplay, the igaming aggregator and content provider, explains how aggregation, distribution and retention combine to form the trifecta for success

Christine Lewis

Aggregation in the iGaming space is a highly effective method of driving up the scale and scope of distribution for any game studio in the online gaming market, so it’s no surprise it has steadily becoming one of the biggest trends in the industry. It is also highly useful for operators that are seeking easy access to the portfolios of game suppliers through a simple integration.

From the high volume of game content to the ease of distribution, and even the accessibility of a variety of unique tools for key tasks like retention, aggregators provide a one-stop shop for operators and suppliers alike.

One of the primary benefits of aggregation, that is helping shape it into a major pillar in the future of iGaming, is the level of ease and lack of time, effort and resources required to integrate by partners. Integrations with aggregators have become quick and streamlined, making life much easier for both operators and providers. By handling all challenging and technical items to get partners to market as fast as possible, aggregators are able to develop and deploy tailored solutions quicker than ever before.

AGGREGATION’S ADVANTAGES TO OPERATORS 26 GAMBLINGINSIDER.COM

Leading aggregation platforms offer a global solution with a localised content approach to operators looking to achieve a variety of different objectives. Brands looking to expand into more markets, increase their current game portfolio and/or prepare for market regulation can all benefit from the services provided by these platforms. Following an easy one-step integration, operators are able to gain access to thousands of casino games by leading suppliers, in addition to any proprietary ones developed inhouse by the company, in the quickest way possible.

One USP of aggregation is the diversity of content it provides to partnered operators.

By aggregating the creations of numerous different game studios with different focuses and presenting them to operators in organised portfolios, aggregators ensure that their partners are always providing their players with their favourite games, no matter where they are from.

Another major benefit to operators that opt for aggregation is the access they gain to the various promotional tools offered by third parties. Typically requiring little or no technical work from partners, these tools are designed to deliver greater efficiency and exceptional ROI, and help drive up retention rates. An example of an aggregation platform that offers unique solutions to its integrated partners is Pariplay, whose different tools empower operators by providing a unique way of engaging and retaining players, effectively driving up lifetime value.

AGGREGATION’S ADVANTAGES TO PROVIDERS Aggregation platforms have been becoming a more prominent choice among game providers in the industry. By helping small to large-scale game studios to connect with operators of any size with minimum effort through a one-time integration, aggregation allows developers to focus more on the production of their games.

Once integrated, providers’ games are added to the aggregation platform’s casino

library, where they can then be accessed by its casino partners.

Moreover, aggregation platforms also service partners with game distribution on a global scale. Aggregators are hugely helpful when it comes to regulated market penetration and expansion for game studios.

Through the partnership, game producers can leverage the aggregators’ set of iGaming licences and regulated networks to develop and deploy globally, through a flexible turnkey development framework, ensuring maximum coverage immediately on launch.

Aggregators also act as major support resources for smaller-scale game studios that do not operate their own platforms.

Therefore, aggregation partnerships, such as the Ignite development programme offered

by Pariplay, provide a major opportunity to these developers to have their exciting content delivered to players across the iGaming industry, at a global scale. This type of development programme frequently supports smaller studios to help bring their games to the masses.

EYES ON THE FUTURE The leveraging of aggregators in the iGaming industry is trending upwards, as the positive effects had on both operators and providers are becoming more noticeable and increasingly important. As the online gaming space continues to become more saturated and competitive, it will be paramount to ensure quality content and widespread distribution are in place, in order to not only secure longevity but also stay afloat in the short-term.

Partnering with a strong aggregation platform has proven to be extremely beneficial to operators and studios, so it’s important to choose the right one.

Since 2016, Pariplay has been focusing on enhancing player value, by providing a suite of back-office conversion and retention tools for operators, plus access to thousands of games, and has supported multiple gaming studios to make their mark on the iGaming industry.

FEATURES PLAY’N GO

Recruit and go Liana Mifsud, head of HR at Play’n GO, discusses employer branding and the gaming recruitment market within Malta

How would you describe the current recruitment market within Malta’s online gaming industry?

In general, we can see that the market is still very much active and that people aren’t perhaps afraid or hesitant to switch jobs. Some roles are more challenging to recruit than others, like tech-heavy roles such as developers, but we see it as a global trend and not just focused on Malta.

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How has Covid-19 affected recruitment in terms of virtual onboarding and retention rates?

Of course, the recruitment process is a lot more virtual these days, challenging but not wholly unusual.

As a global company, we have employees sitting worldwide and even before 2020 having a virtual interview, or virtual onboarding, was not something that we were unfamiliar with.

Since we are all working from home, all our new colleagues are being onboarded digitally. We took an active approach to this and made sure that our analogue process performed in the digital world as well.

That meant tweaking it a bit, adding some tools to help us but most importantly, making sure everyone knew it would take a bit more energy, focus and time to make sure that the new colleague

PLAY’N GO FEATURES was seen, heard and welcomed into his/her new team. As far as we can tell from our follow-ups, most people are surprised with how well the process works, giving them all they need to know and introducing them to their team, even if they haven’t met in person yet.

Retention rates don’t seem to be a problem; it’s getting people through the door fast enough! As we continue to go from strength to strength, we are still growing quite rapidly. This means we have to keep adding to our Play’n GO family to make sure we can satisfy the industry demand and reach our goals.

Just how much more of a challenge is recruitment during a pandemic?

The biggest challenge would probably be not being able to meet your candidates face to face. You can learn a lot about people in person, and they, in turn, can learn a lot about you.

The most important thing during the recruitment process is to get to know the person who has applied; it is equally important for the person to get to know us. Since we can’t invite people to the office, we try to give them as good of a picture as possible of how a day looks like, what you can expect when starting etc.

Our motto right now is that we’d rather take one interview too many than too few. That can mean you have an ‘extra’ interview to meet the team and future colleagues, for example. Just to make sure the chemistry and personalities ‘click’.

An extra step but well worth it in the long run.

We’ve spoken to Play’n GO before about its employer branding. How important would you say employer branding is in Malta?

Employer branding is essential, regardless of where you are, but it becomes even more vital in Malta because of the concentration of employers within the industry in such close vicinity. Some of the biggest brands in gaming are on the island, so there is a multitude of opportunities for anyone looking for work in the sector.

Of course, if you want to attract the best and the brightest, you have to mark yourself out from the competition and really let people know what it is they’ll be gaining by joining Play’n GO. It’s not enough to offer a competitive salary; it’s about creating a desirable work environment and making sure people are happy in their jobs. We do a lot to make sure of this, and it’s important to let prospective applicants know that.

I think the concept of employer branding is really taking off across the industry; it’s a case of having to adapt to survive. If you want to attract the best people for your company’s positions, you need to make yourself an attractive proposition.

Whereas a few years ago it would be enough to offer a hefty salary and write a jazzy role description, people are scrutinising companies a lot more now, so everyone who wasn’t invested has had to catch up.

What trends do you see developing within gaming recruitment in 2021?

First and foremost, more positions are going to offer the possibility of flexible working. As a company, we have always seen and championed the benefits of flexible working; it’s part of our culture.

With the current situation across the globe, others see that employees can be just as effective outside of the office environment.While it’s a forced situation now, we predict flexible working will become the norm from here on out.

Recruiting in the Americas will be another trend; with both North and South America picking up pace in their development, having feet on the ground in those areas should be essential. It is imperative if you want to provide the best service; make sure you have people who know the landscape and the culture.

Finally, employee benefits; people are no longer just interested in getting the

Liana Mifsud

highest wage. They want quality of life as well, and part of that is feeling valued in your job. The extra perks that come with your role go a long way to helping with this. We have a dedicated employee experience team focused on how we can continue building and improving the culture here at Play’n GO.

With both North and South America picking up pace in their development, having feet on the ground in those areas should be essential. It is imperative if you want to provide the best service; make sure you have people who know the landscape and the culture

Is the concept of employer branding one that has been embraced industrywide, or still only by a few of the major players?

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FEATURES BETSSON

Virtute et Constantia Sebastian Jarosch, Betsson Group head of affiliates, speaks about life in Malta during the coronavirus pandemic, and how the company, its employees and the Maltese Government have adapted

Image supplied by Cornel De Jager

How would you sum up life in Malta in 2020?

Just like in most European countries, life in Malta was heavily affected by the pandemic in 2020 and is currently defined by remote working and social distancing.

Masks are mandatory anywhere in the public and gatherings are heavily restricted. The life we knew has changed drastically and businesses were forced to adapt to survive, mainly by going digital and shifting focus to pandemicproof concepts. It’s important to find ways to keep your balance; isolation is a big problem and socialising is currently very difficult with all the rules and restrictions to control the spread. Many people prefer staying at home and binging on Netflix has become a favourite pastime to kill time.

Luckily, there’s a lot to explore on the island as well with temples dating back over 5,000 years and some beautiful nature to enjoy with hikes. I’m going running almost daily and it really helps me keep my head together during these strange times.

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What has changed in Malta over the course of the year?

After successfully suppressing an outbreak via rigorous travel restrictions, Malta had become the poster child within the EU in terms of Covid-19 measures. Active cases were very low during summer and new cases had stagnated to the point where they were almost non-existent. Life was relatively normal, but people were afraid of what was going on around them. The strain on the economy was immense for Malta due to a partial lockdown and resulted in the reintroduction of tourism and mass events, which essentially led to the re-emergence of the pandemic on the island, with new cases in the hundreds and daily Covid-19related deaths.

How did the Maltese Government respond to the pandemic?

The first measure the Government introduced was the closure of all ports, including the airport. All non-essential businesses were temporarily closed early on and anyone coming from abroad was screened and had to undergo quarantine

procedures; Malta was under lockdown.

Later on a lot of the measures were eased to support the economy but at the same time face masks and social distancing became mandatory in the public to reduce the spread of the virus. €100 ($120.47) vouchers were issued to every citizen by post to be spent on selected businesses for financial support and to boost the economy. Gatherings were heavily limited, bars had to shut down and most restaurants and snack bars were prohibited to serve alcohol. Daily updates on the pandemic were presented to the public by the authorities and flu vaccinations started for the vulnerable.

What policies did Betsson Group bring in when the pandemic started?

Betsson Group reacted very quickly to the Covid-19 situation and introduced remote working early on to help curb the spread of the pandemic. Almost every interaction between colleagues became digital, including interviews with candidates, meetings and announcements, team events and even onboarding, and orientation of new employees are now in front of a screen.

FEATURES BETSSON

Sebastian Jarosch

Masks must be worn within the premises for safety reasons and hand sanitisers are spread throughout the offices. Betsson introduced daily updates by email to inform staff of the latest developments and changes in policy. We still feel the Betsson vibe and a survey concluded that the One Betsson spirit is still very much alive, despite the difficult circumstances.

We have all adjusted to the new situation very well and give each other strength to get through this together.

Have player and consumer habits changed over the course of the year?

Sports betting naturally took a hit in in the beginning of the pandemic, with most games being affected by lockdowns between mid-March and June. It basically came down to esports, horseracing, Belarusian football, ping pong and fantasy sports for players to bet on. To make it worse, some major sports events we were really looking forward to such as the Euro 2020 and the Olympics Japan had to be postponed. The big football leagues as well as Europa League and Champions League did return during 2020 luckily, to bring back some betting action, albeit without any spectators. Another big one was the Trump vs. Biden face off during the election, with an astounding number of bets recorded.

The big winner of 2020 was definitely online poker, with many Europeans taking 32 GAMBLINGINSIDER.COM

to the tables during lockdown periods.

Cash game traffic soared to historic levels last seen five years ago and many offline tournament players took their action online. Just like for poker, online casino revenues also saw gains during 2020, with players generally spending more time gambling or shifting their focus over from sports and land-based casinos.

Outside of online gaming, delivery services became very popular and consumers turned to digital purchases rather than going out for shopping themselves.

How have day-to-day interactions with colleagues and also affiliates been affected by the pandemic?

Interactions with colleagues and affiliates are mostly limited to video calls due to the pandemic. I was onboarded to the company remotely as well and had to get to know my affiliate team online. My work takes place remotely mostly, but we do encourage check-ins at our offices from time to time to counter isolation.

Despite everything being different we have still managed to get a team spirit going again and the affiliate unit sticks together like glue. Team events also take place online, and we receive snacks and goodies straight to the doorstep from our fantastic affiliate operations team to cheer everyone up. The company facilitates online interactions and socialising

through games, and competitions, among employees such as our weekly online poker tournaments. I feel very much as part of an organisation that cares about the wellbeing of its staff and I think my colleagues do as well.

We’ve reorganised the affiliate unit and have successfully migrated our new Gaming Innovation Group brands to the BGA platform. Of course we would much rather invite our partners to dinners and meet them personally, but we had to introduce virtual meetings, which work pretty well too. Mass events such as the affiliate conferences or award shows are all digital for now or were entirely postponed; travelling is often connected with quarantine, which makes meeting partners abroad difficult. We have used the time well to improve our affiliate program in terms of support, though, and can now assist our affiliates even better than before. Among other things, we have fully revamped our Betsson Group Affiliates website and further enhanced the tools and resources we offer to our affiliate partners online.

Another achievement I’m proud of is we have revised our terms and conditions and have been accredited as affiliate friendly by Affiliate Guard Dog, which underlines our new image and the way we interact with our partners. We are already a lot more transparent and give our affiliates the best experience possible from onboarding to commission payments. We stick to our core Betsson values of fair player, responsible gaming and One Betsson and our affiliates like that. We have won awards with our partners too. My team has worked very hard all year round to get us there and I am extremely proud of them.

Do you see life changing again soon or will things in Malta remain the same for the foreseeable future due to Covid-19?

Malta started vaccinating the population on 27 December 2020 and hopes to achieve herd immunity by the end of summer 2021. Although we’re pretty much on track with the vaccination plan, it is uncertain if industry events will be taking place this year. There will probably be a transitional period, where masks will remain mandatory and vaccination passports will be required for travelling, but I’m confident things will already start to look much brighter soon. The year 2020 was definitely not an easy one, but we all managed to pull through it together here at Betsson; and after a record-breaking year there is now truly a light at the end of the tunnel.

Two years in Singular chief commercial officer Robert Dowling speaks to Gambling Insider two years into his role with the supplier office space. The expansion of Singular both locally and internationally further reinforced our strategy for catering towards Tier-1 operators. We can proudly say that over the past two years, we have tripled our client portfolio.

Congratulations on two years at Singular, Robert: how do you reflect on your time with the company?

When I joined May 2019, I had no idea what a tremendous two years would lay ahead. As I set out the plan for what I wanted to achieve, the shredder was already churning away. I believe that this was probably the most fun I’ve had since I’ve joined the industry. The Singular team is proven to be one of the most dynamic and resilient teams, open to vibrant and courageous ideas, which create added value for us and our partners. During the pandemic year of 2020, this approach has helped us overcome the challenges that affected so many in the industry. I am particularly proud of the Malta expansion that has resulted in Singular opening its second office in the Tagliaferro Business Center. The team has experienced an accelerated growth that has almost reached the full capacity of the current

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In another two years’ time, where do you hope the company will be?

Looking back at the past two years gives me confidence in two main areas.

From one side, it is safe to say that we will continue catering to our clients’ expansion in new jurisdictions that they deem profitable towards their operations.

Ideally, we expect to sustain the current growth curve. On the other side, as new regulations come into effect, we feel the work will be more intensified and might slow down the growth slightly. We pride ourselves in catering to a fewer number of clients but delivering tailored solutions for their business needs. In essence, I expect us to continue providing high-end software compliant with unique requirements for new emerging markets.

How important has the Malta office been for Singular’s operations?

Malta has been central to the iGaming industry since it became the first jurisdiction to regulate online gaming

globally back in 2002. With this history, one finds a lot of resources that might not be available throughout the globe.

This experience and the knowledge base have helped Singular recruit a dynamic management team in Malta that has helped sustain and reinforce our relationships with our enterprise clients.

What has working in Malta been like during the pandemic?

Malta’s experience during the pandemic was slightly different from a lot of European countries. Malta blessed us with lovely weather that allowed us to enjoy the open spaces in rural areas. Of course, this was not possible during the total lockdown. But we had a very strict lockdown only in the initial phase in April, May, and June. However, the majority of companies, Singular included, started working from home as a safety measure.

Many of which remain WFH to today, and that has changed the gaming ecosystem in Malta forever. A big part of Malta’s uniqueness was the fact you could rub shoulders with industry veterans without the need for travel. That, of course, is now changing. We will have to see if the networking and business community will keep flourishing as it used to on this amazing island.

Malta has been central to the iGaming industry since it became the first jurisdiction to regulate online gaming globally back in 2002. With this history one finds a lot of resources that might not be available throughout the globe