35 minute read
LVS & PLAYTECH?
Las Vegas Sands To Make Offer For Playtech?
Is Las Vegas Sands About to join the battle for Playtech? According to sources close to the business it is rumoured that the company that was controlled by Sheldon Adelson until his death at the beginning of this year may make an offer for the online gambling technology supplier.
Indeed in reporting the companies first results since the death of their founder in January CEO Robert Goldstein was quoted that Las Vegas Sands were interested in getting into the sector by saying, “I have very strong thoughts about this, “we just want to keep working toward our goals. It’s a very interesting business. The question is can we bring something to the table that can make a lot of money.”
It was later mentioned that should they venture into the sector they would look at a B2B service provider to acquire possibly so the casino operator can develop their own software. That would allow them to gain a foothold in the ever expanding US sports betting market.
The current valuation of Playtech is at £2.7 billion even if that was to rise towards £3 billion it would not cause any problems for the operator that has casinos in the US, Macau and Singapore.
With Playtech management already accepting an offer from Aristocrat Leisure but now there are more players with former F-1 team owner Eddie Jordan and Keith O’Loughlin, a former senior executive from Scientific Games have along with major investors have asked also for due diligence on Playtech. Under the name JKO Play Limited Jordan and O’Loughlin are seeking institutional investment for a potential offer.
Playtech are certainly still in play and there is still time for Las Vegas Sands to enter the fray, if the rumours are true expect the US based casino giant to make a move before the end of the year.
Florida Sports Betting Must Stop Says Judge
Florida sports betting has been thrown into disarray with the court judgement that says the agreement violates key provisions of the Indian Gaming Regulatory Act (IGRA) — the law which “creates a framework for regulating gaming activity on Indian lands.”
Earlier this year Florida governor Ron DeSantis concluded an exclusive deal with the Seminole Tribe to extend their casinos and to allow them to operate all sports betting within the state. However the agreement was met with opposition and both sides expected legal challenges but the tribe has already launched sports betting in the state.
But Dabney Friedrich, a judge of the U.S. District Court for the District of Columbia has now overturned this gaming pact between the governor and the tribe with this ruling. That “This decision does not foreclose other avenues for authorizing online sports betting in Florida,” the judge wrote stating. “The State and the Tribe may agree to a new compact, with the Secretary of the Interior’s approval that allows online gaming solely on Indian lands.”
Basically this would stop the tribe offering any kind of sports betting whether physical or online outside of tribal land.
It is expected an appeal will be forthcoming from the state and the Seminole Tribe but whether sports betting at present has to be halted is not clear while the appeals are set into motion.
In an update to the article two days later the judge in the initial ruling said the Seminole Tribe MUST cease all activities in relation to sports betting until an appeal is heard. had requested a stay until the appeal but U.S. District Court Judge Dabney Friedrich who made the ruling that the new compact violated the current federal ruling on tribal gambling said that the decision must be followed and cannot continue sports betting until the appeal has been heard and a ruling passed.
But according to local reports the sports betting app is still working and violating the judgement, in the judges response to the request she said that the, “tribe hadn’t shown that it would be irreparably harmed if a stay were not granted.”
In the state and tribes argument they said the servers were located on tribal land and customers used the mobile devices to access them meets the federal arrangement on the rules, the judge said this was pure “fiction” in her first ruling.
Interview with Maarja Pärt
CEO at the Yolo Group
Maarja, many thanks for speaking to us today. Could you start by introducing yourself and the Yolo Group?
a wide range of business areas, including our venture capital firm Yolo Investments, our B2B arm Yolo Ventures and much more.
I joined the company at the beginning of its journey, when we were a small team exploring the possibilities around using cryptocurrencies to create amazing user experiences that put the customer at the very centre of the universe. So I’m immensely proud today to be leading nearly 700 Yoloers who are innovating in ways we couldn’t have imagined even just a few years ago.
I’m CEO of Yolo Group, which recently rebranded from the Coingaming Group. We’re disruptors across a number of sectors, including gaming, fintech and blockchain. You probably know us best as the operator of two leading gaming brands, Sportsbet.io and Bitcasino, but Yolo Group today incorporates
You have been the CEO of the company since September 2020 and previously you were the Chief Operating Officer. What is the company like to work for?
It’s been the ride of a lifetime to work for this company. I’m a firm believer that any company is ultimately about its people, and we’ve been lucky enough to have built the Yolo Group around an outstanding group of individuals. As a result, we’ve organically grown a company culture around the Yolo Group that matches our ethos of always being fun, fast and fair.
It has been particularly rewarding to have risen through the ranks to the position of CEO. Since the beginning, we’ve really emphasised personal development and creating opportunities for growth. I’m proud to work for a company that places no limits on what its team members
Courtesy of Arturs Briedis Photography
can achieve.
How many people work for Yolo?
We continue to grow rapidly, and the team now exceeds 600 Yoloers and we are constantly on the lookout for new talent.
Previously the company was called the Coingaming Group. Why the change to Yolo Group?
The Coingaming Group brand served us well for many years, but it was time for a change. We now work across multiple business areas spanning gaming, fintech and blockchain, and we needed a name that really captured our essence. We loved the name Yolo Group because we felt it represented our people, our business and our vision. We only live once and we all want to make sure it counts.
It was great to see the company at the Women in Gaming Diversity Awards in London. How did you get on?
It was a pleasure to attend an event that brought together many of the forward-thinking women who are driving real change in this industry. It was a real honour to pick up two awards: ‘Best Diverse Place to Work’ for the company as a whole, while one of our customer support superstars, Lais Bordallo, won the ‘Excellence in Customer Service’ category.
How important is diversity and inclusion to the company?
Being recognised as the ‘Best Diverse Place to Work’ was so special because we’re extremely proud of how the Yolo Group has built a culture in which great work is always rewarded, regardless of background. We didn’t decide one day to become a diverse team; it is something which has happened organically.
Does it help to have a female leader in the company to push forward with these initiatives?
We’re focused on building worldclass teams with the right strengths and the correct balance to achieve our goals. When we are hiring for senior positions, we’re always looking for the best person for the job, and we’ve found that this results in a diverse range of people from different backgrounds, which in turn helps us approach challenges from all angles. We’re disrupting and creating every day in competitive spaces, and so team building with an open mind and a laser focus on excellence is a must.
With the company winning two awards at the WiG Diversity Awards, would you recommend more women to take part and see the support and inspiration the event creates?
I would absolutely recommend others to take part to support this initiative. It was a fantastic opportunity to meet and talk to some really inspiring women who are changing the way our industry operates.
NY Moves Closer To Mobile Sports Betting
Mobile sports betting in New York is inching closer to reality as the regulator the New York State Gaming Commission published the adoption of mobile sports betting rules for the state and operators to abide by.
In the publication the regulator said the rules were, “for mobile sports wagering through servers located at casinos and improve sports wagering regulation at casinos.”
The licensees will all pay $25 million for a ten year permit to operate sports betting in the state and will pay 51% tax rate which is one of the highest in the US but for Bally Bet, BetMGM, DraftKings, FanDuel, Caesars Sportsbook, WynnBET, PointsBet, and BetRivers-owner Rush Street Interactive the cost they believe will be well worth it.
It is hoped that all the rules and regulations will be in place so mobile sports betting in New York will be up and running in time for the Super Bowl in 2022. Gaming Innovation Group has announced the promotion of Nicola Fitton to COO with the key deliverable of driving sustainable growth with the aim to strengthen operational effectiveness, streamline processes and improve efficiency on platform delivery.
Nicola joined GiG in 2019 as director of managed services where she was responsible for overseeing the operations, CRM and media managed services teams. She has over 15 years of experience within the commercial sector of the gaming industry covering casinos, sports and poker from both B2C and B2B sectors having driven several tier 1 international brands, including Betsafe.
Throughout her time at GiG, Nicola has played a key role in empowering the organisation’s growth via managed services. Nicola will now be responsible for the overall platform delivery in addition to the managed services operations, customer onboarding process, and operations and retention departments.
Nicola Fitton Named COO At GiG
Understanding The Gambling Capital of The World
By Mary Mendoza - Managing Director of The Platinum Limited
Is the future of the gambling capital of the world uncertain in the short-term? Macau, S.A.R., China has been coined the “gambling capital of the world,” having first surpassed the Las Vegas Strip’s gross gaming revenue (GGR) in 2006 (Macau GGR USD7 billion while Las Vegas was USD6.5 billion)and the entire State of Nevada by 2008 (Macau USD13.5 billion while Nevada USD11 billion).
Macau’s gaming giants (casino integrated resorts) are run by three foreign operators (Sands China Ltd, Wynn Macau Ltd., and MGM China Holdings Ltd.) and three local operators (SJMHoldings Ltd., Galaxy Entertainment Group Ltd., and Melco Resorts &Entertainment Ltd.). Macau’s gaming tax & levies of 39 percent are some of the highest in the world, making the enclave’s economy reliant on the casino industry with contributions of 70-80 percent of the government’s revenue. However, all six licensees (concessionaires & subconcessionaires) are set to have their licenses expire in June 2022. Investors, operators, industry experts and observers are questioning if these decades of glory are nearing an end.
Macau is geographically located bordering mainland China and accessible by foot (Zhuhai) and by bridge (Zhuhai and Hong Kong) while the nearest tier 1 city (developed city), Guangzhou is around 90 minutes away by high-speed train via Zhuhai. With ease of travel enhanced by the individual visa scheme (IVS) and cooperation with motherland China, Macau enjoyed visitation from 39 million touristsprior to the pandemic, of which 70 percent were mainland Chinese while the remaining tourist population came from Hong Kong, Taiwan, and other Asian countries. These circumstances have made Macau reliant on a single source market (mainland China) and as well as a single source economy (gaming).
VIP Clampdown
Macau is uniquely positioned as the only place within Chinese territory where gambling is legally permitted. At the peak of its gaming glory in 2013, Macau’s GGR reached USD45 billion of which the VIP (junkets) segment’s contribution was 66 percent. Junkets (gaming promoters/agency) have a vital role in soliciting high rollers and extending credit to VIP players. However, the central government in China started clamping down on VIP players’ activity and junket operators organized gaming trips over concerns of money laundering and unlawful transfer of money out of the mainland China.
As a result, the revenue driven by the VIP market was gradually replaced by the “premium mass” market and increased visitation of mass market players. Five years after the crackdown, Macau’s GGR finally peaked at
USD37 billion, of which the VIP market represented only 55 percent.
For the first time in Macau’s gaming history the mass market has surpassed the VIP’s GGR contribution in 2019, representing a low 46 per cent of VIP market.
Pandemic & Gaming License Review
Fast forward to today, there are two significant events on the gaming industry’s horizon. First, the pandemic’s impact on the market and second, the expiring licenses for all casino operators next year.
Pandemic Impact
Macau is using the “zero-virus strategy” as opposed to “living with the virus strategy.” One of its tourism campaigns is being a “safe destination.” In perspective, there are cumulative infected cases of 77; no deadly cases reported, and a vaccination rate of nearly 70 percent (November 2021 data). Therefore, the government is prioritizing the safety of its people, be it locals, non-resident workers, or tourists. There are strict regulations to ensure the prevention of an epidemic; for instance, mandatory wearing of masks in all public areas (except while dining/drinking in bars/ karaoke), sanitization of public areas, and each person having to present their government health code app at point of entry into all public areas (casinos, restaurants, hotels, retail stores, public offices, etc.).
Only mainland Chinese tourists are currently allowed to visit Macau. Foreign passport holders are prohibited from entering Macau (except for a few eligible persons subject to tight requirements and approval). While residents coming from Hong Kong and Taiwan are allowed to enter, these visitors must go through a procedure that is cumbersome, time consuming and costly to undergo all of the requirements required to enter Macau. For instance, a PCR negative test certificate issued within 48/24 hours prior to arrival must be presented, followed by a quarantine/medical observation of up to 21 days at their own expense. Macau residents coming from overseas are only allowed to enter if residents are vaccinated and are virus free for at least the past two months plus all other requirements such as a PCR test certificate and quarantine upon arrival. Macau residents and Mainland Chinese coming directly from China are the only exception to the quarantine.
Pent up demand from mainland China was anticipated for Golden Week in October; however, Macau unexpectedly had local delta variant infected cases at the end of September. This caused neighboring Zhuhai, followed
Tourist Visiting Ruins of St. Paul Before Pandemic Tourist Visiting Ruins of St. Paul 2021
The The primary effect of the pandemic was a staggering drop in tourist visitation. As of September, Macau has only welcomed 5.7 million tourists this year, which is at least 30 million short compared to pre-pandemic levels, while in revenue it translates to GGR of USD9 billion this year (JanuaryOctober 2021) vs. USD30 billion for the first 10 months in 2019.
Gaming License Review
The worst decline in market capitalization Macau gaming ever experienced shocked the world of gaming in early September when an aggregate total of USD18.4 billion (26.1 percent loss) was wiped out at the Hong Kong Exchange (HKEX) and a decline in China’s bond market associated with the gaming operators from Macau. That was due to the panic of uncertainty after the Gaming Inspection and Coordination Bureau of Macau (DICJ) announced a draft of proposals to revise the enacted gaming “Law 16/2001” and Law “26/2001” including tightened restrictions on casino operators and the number of licenses. The proposals were open for a 45-day industry and public consultation to discuss the legal revisions and convey opinions on the Government’s principles for the future of Macau gaming.
The liberalization of the gaming industry in 2002 revolutionized the sector from 40 years of monopoly under STDM to awarding six new licenses, which allowed casinos to operate until 2022. Although the Macau Chief Executive Ho Iat Seng hinted the possibility of extending the current gaming license beyond June 2022 if gaming law revision is not completed on time it is still worrying the operators.
What has unfolded during the industry and public consultation period that ended on October 29 was debate among operators, legal advisors, analysts, industry experts on the nine topics of interest as part of the gaming law review. As published by Rato, Ling, Lei & Cortés – Advogados e Notários - Lektou in a legal alert on the subject, these nine topics below are the focus of the Macau Government for the existing gaming-law legal revision.
1. The total number of concessions (licenses) 2. Term of the concession 3. Supervision of concessionaires (share capital, managing director, profit distribution) 4. The appointing of a government representative to supervise the operators 5. The protection of Macau residents and its employment benefits 6. Strengthen review mechanism for casino operators and junket operators 7. Criminal Liability & Administrative Sanction 8. Increase of non-gaming elements in support of Macau’s diversification 9. Corporate Social Responsibility
The key takeaway is the defining moment. The total number of licenses is unknown and the existing casino operators do not have guarantees
guarantees if their licenses will be renewed. However, as quoted from Bernstein analysts, led by Vitaly Umansky said that, “officials had highlighted the importance of maintaining a scale for the gaming industry, indicating that all six companies are likely to keep their licenses”. The duration of new concession terms is still unknown, whether it would be a 20-year period with the possibility of five-yearextensions.Strengthen review mechanism for casino operators and junket operators is a question of how much control there would be, given that the historical GGR of Macau is above 50 percent VIP market.
The Macau Government has a maximum of six months from the end of public consultation to deliver their conclusionsfollowed by the proposal for the amendment of gaming-law.
Projects In The Pipeline
The increase of non-gaming elements in support of Macau’s diversification has already begun unfolding since 2007 when the Venetian Macau Resort opened the largest arena with 15,000 seats (where Macau previously had less than 3,000), a retail mall with 360 shops (previously Macau had a less than 200 shops in a retail mall space), MICE space of 150,000 sqm (1.6 million square feet) just to name a few. The non-gaming amenities that had subsequently been added continue to wow the world. The efforts of the casino operators never ceased to amaze locals and tourists. This is in line with the goal to attract a diversified profile of tourists globally and increase weekday visitation.
Even though casino licenses are set to expire by mid-2022, there are several projects being developed as part of the casino operators’ non-gaming amenities. Here are the highlights of projects opening from 2021 onward: As an integrated resort operator, Sands China Ltd., frequently reinvests in its properties to keep competitive. As an example, the rebranding of Sands Cotai Central to The Londoner Macao with additional luxury rooms, David Beckham designed suites, new non-gaming amenities, featuring iconic landmarks of London such as the Houses of Parliament and Big Ben. The property progressively opened in phases starting in February of this year.
Galaxy Entertainment Group
Galaxy Entertainment Group is expanding its footprint with an additional 1 million sqm at Galaxy Cotai phases
3 and 4. The Galaxy International Convention Center will open a 16,000-seat arena. The legendary Raffles Hotel, an exclusive, all-suite luxury tower with 450 keys, and Andaz, a lifestyle hotel with 700 keys are scheduled to open in phases in 2022.
Grand Lisboa Palace Resort Macau – SJM Resorts, S.A.
The USD5 billion Grand Lisboa Palace Resort Macau (GLP) held its first phase opening in July 2021.90% of the total area is dedicated to non-gaming amenities comprising MICE, shopping, dining, entertainment and three hotel towers comprising 1,892 keys of rooms and suites. The Grand Lisboa Palace Macau opened this summer and other towers are expected to open in a later stage including the Palazzo Versace Macau and THE KARL LAGERFELD.
Galaxy currently has the largest upcoming development in Cotai Macau.
Melco Resorts & Entertainment
The expansion of Studio City Phase 2 is on track for completion before yearend 2022. This development is expected to offer around 900 keys of luxury hotel rooms and suites, an auxiliary water park touted to be one of the largest in the world, a Cineplex, fine dining F&B outlets, and state-of-theart MICE space. Melco Resorts & Entertainment is continually driving growth and diversifying its portfolio in alignment to Macau’s diversification plan.
Although the Macau gaming industry appears to be uncertain in the shortterm, one can be optimistic to see the brighter side of the industry in the long-term as it plays a crucial role to adding non-gaming elements as part of Macau’s diversification plan. This is one of the top priorities to maintaining the image of Macau as a global leisure tourism destination. With the total mainland Chinese population of 1.4 billion and the Greater Bay Area (GBA) connectivity right at the doorstep of Macau, expect a promising future for Macau.
About the author:
Mary Mendoza is managing director of The Platinum Limited, a gaminghospitality consulting firm and affiliated with C3 Gaming Group (Las Vegas based gaming consortium). Mary has over 25 years of working experience of which she served within the hospitality, gaming, and tourism industries. Having studied and worked in Macau, she provides expert advice on Asian market, insights on the casino integrated resort with in-depth on-the-ground insight on Macau and Asia’s gaming, hospitality, and tourism sector. of Casino Marketing (AVP) at Hoiana Suncity in Vietnam, Vice President of Marketing at The Grand Ho Tram in Vietnam, and before that was Vice President of Marketing at Imperial Pacific in Saipan, CMNI, USA. She also held management positions at Sands China Ltd in Macau.
Mary Mendoza has visited nearly 1,000 casinos plus integrated resorts globally, she is an IR executive, thought leader, speaker, advisor, and consultant. She was invited numerous times at G2E Asia Macau as a judge and speaker. In addition, numerous speaking engagements she was invited to including EGR Manila, ASEAN Gaming Summit Manila, Hong Kong City U, Macau MUST, IFTM, Macau University, Rotary Clubs (globally), Chamber of Commerce, and GRWA in Australia just to name a few.
On a philanthropic capacity, Mary is serving as an ASEAN Advisor for a nonprofit organization The Cambodian Community Dream (The CDDO).
Interview with Fabienne Bourgaize
Marketing Manager at Eyecon
Following our series of speaking to the leading ladies at the recent WIGD Awards, this month we talk to Fabienne Bourgaize
Fabienne lovely speaking to you, firstly can you tell our readers a little about Eyecon?
Eyecon was launched in 1997 in Australia by players who wanted more from gaming. Since switching our focus to online slots in 1999, we have created some of the biggest bingo slots on the market, including Fluffy Favourites, Temple of Iris and Shamans Dream. We have a proven track record of making games that players love!
We were acquired by Playtech in 2017, and today we have a portfolio of more than 100 titles and a full suite of engagement tools to enhance player experience across all our games. We strive to keep pushing forward to offer our players and operators more. Because of this offering we are proud partners with the world’s biggest casino operators.
Eyecon is a part of Playtech since 2017, however does the company work autonomously from Playtech in design and management?
A bit of both really, we are incredibly fortunate in our position. Eyecon was acquired by Playtech because of its distinct way of developing new content. We have maintainedour own design team who create our games from concept to completion, our own management and sales teams, our own, complimentary distribution network and our own RGS. For the most part we function as a separate entity. However we have a very close and hugely successful relationship with Playtech which allows us to draw on the incredible wealth of expertise and knowledge the Playtech teams, such as Legal and Marketing, can offer to us as well as being able to leverage Playtech’s scale and distribution.A great example of this is the incredibly successful strategic partnership with Playtech Bingo.
Eyecon recently attended the Women in Gaming Diversity Awards, how did the company do?
Yes, it was our first time attending the awards and we were blown away with them. It was such an inspirational event and we felt so honored to be in the same room as such an empowering group of individuals. We had three team members shortlisted for various awards, myself for B2B Excellence, Dominque Spanier our Compliance Manager for Young Leader of the Year and Alison Beattie, our Office Manager for our Employee of the year. I felt very honored to be nominated alongside Dominque and Alison as they are such integral team players with in Eyecon and I couldn’t think of any one more deserving.
Did the company win an award?
I was incredibly shocked and humbled to win in my category of B2B Excellence. It was the first time I had ever been nominated for an award like this and I was incredibly proud and grateful just to be nominated.
Is supporting women and diversity important to Eyecon?
Fabienne Bourgaize at the WIGD Awards
-dibly proud to do. At Eyecon we pride ourselves on fostering an environment that promotes diversity and inclusion and believe that this is key to a company’s creativity and innovation. Events like this one are essential in order for us to promote and drive this commitment across the business
Have you got any examples what the company does to support diversity and inclusion Fabienne?
It is something that is part of our dayto-day ways of working. We have a diverse and multicultural team spread over a range of global locations. Eyecon actively works to understand the different nationalities and is respectful of each of the cultures. This can be as simple as supporting religious holidays. It also works to treat every person as an individual, and looks to offer things like flexible working around childcare or other personal circumstance, based on specific needs. Inclusion is a key part of the culture at Eyecon and mangers at all levels ensure that staff feel supported and listed to, giving each of us a voice at the table.
You actually presented an award on stage and were very good at speaking, is that something you have learnt?
Not at all. This was my first time on stage since my school years, which is going back quite a bit now! I was quite nervous about going up on stage on the lead up to the event as I am not someone who revels in the spotlight, however there had been some incredible speakers up before me who helped to inspire me and overcome my fear of ‘imposter syndrome’. Yet another reason I was so grateful to attend this event!
How has Eyecon done during the past 18 months with the pandemic, what changes have been made and is the company getting back to normal now?
As an online business we were very fortunate with our position throughout the pandemic. I work in the Guernsey Office and our island took a fairly aggressive approach to lockdown early on, which meant offices across the island were
only closed for a couple of months right at the beginning of the pandemic. Since then life has been pretty much back to normal for us with the exception of not being able to travel. Our offices in Brisbane have not been so fortunate and working from home became the norm for them. Eyecon invested in equipment to ensure that staff could work from home with as much ease as possible given the circumstances and we were able to adapt well to the changes. We adapted to work with customers remotely through zoom QBRs and meetings, the success of which was possible thanks to our relationships we built up over many years with our clients. Like a lot of online gaming businesses, we have seen growth during the pandemic, probably due to most people being at home more than usual and land based casinos and betting shops being closed. Now that things are easing off with restrictions we are still seeing good retention.
What are your thoughts about women working within the industry, do you think it is a good environment for women to work in?
I have worked in a few different industries prior to entering the gaming industry a few years ago. One of the first things that stuck me was the inclusive nature of not just Eyecon but the gaming industry as a whole. I could instantly see the difference this inclusivity and diversity had on the energy and creativity of the office. On a personal note, I had always struggled to find women who could inspire me in the field that I worked in, however with gaming I was suddenly faced with a plethora of women who inspired me in my new career. I think gaming is a great environment for women to work in and I think that we really have a seat at the table which is a brilliant feeling.
Having won and attending the WIGD would you recommend more women to take part and see the support and inspiration the event creates?
Definitely! Just being in the room with so many inspirational women was so humbling and exhilarating at the same time. It infused me with a renewed passion for following this career path and filled me with a sense of empowerment.
Are there more women within Eyecon that you feel should deserve being recognized for their achievements?
For sure. We are so lucky so have an incredible team at Eyecon, each and every member puts so much passion and dedication into their job they all deserve awards. I would love to see Alison and Dominque get recognized for everything that that do for Eyecon, they really are pillars of the company and have been inspirations to me since I started. Nicole Guilmoto our BI Analyst is another woman within Eyecon that I would love to see being recognized. She joined us at the end of 2020 and since then has proven herself as a truly adaptable, versatile and valuable team member. And lastly but by no means least, Jo Bentley our game Designer and Mathematician, who since joining earlier this year has been adding hugely valuable knowledge and insights into our new games and contributing innovate ideas.
One final question is there anything you can tell us about Eyecon for 2022, has the company got big plans for the coming year?
We do have some big plans for next year. We have some huge game releases in the works including a new Fluffy Favourites game and more successful Playtech IPs. There are also some new markets that we are looking at and to top it all we will be rolling out a new and very exciting product which we think will position us as pioneers in tech. Watch this space!
The Rise of eSports
Over the last five years the popularity of eSports has grown year on year
From its roots as a niche arcade entertainment, it has continued to amaze with its digital presentation, technical complexities and is now, within the gaming world at least, one of the main targets for capital investment. This in turn has turned the heads of the betting and gambling community. Gaming has always been a place for lucrative gambling deals and now, as traditional sport is brought streaming to a home screen near you, eSports has brought a great new dynamic to world of gambling.
The market has recognised the new kid on the block and the young generation who are playing these roleplaying games are becoming heroes and living legends before almost they are in their twenties. So how has that rise taken place, what is the evidence for the new armchaircontest explosion and what of the future?
A clash of ideals in the west
In the west, the idea of eSports still has its antagonists because the concept of eSports tends to clash with the traditionalist idea of what sport is all about. In other words, many traditionalists believe sport is an activity which fuses physical exercise,
competition and team play. Purists believe eSports is a pale substitute for those who love sport. They tend to favour the idea eSports has intellectualised the sport and made it sedentary. Hence it may dangerously leave the younger generation staring at screens when they should be enjoying the outside world practicing real physical skills. Although it is now much more accepted in the west (see statistics below), it is sometimes ridiculed on digital platforms.
Sport is about competition
At its heart, sport surely is about competition. The fact is there is a plethora of sports which do not call for outdoor activity or physical prowess (such as Chess, formula 1 or fishing perhaps). You only have to look to eSports very own League Of Legends to see that competition is fundamental to its gameplay and in turn through practice skill dedication and effort encourages ambition, goals and rewards. In the long-term it produces heroes and legends for its fans and players.
There is no doubt that in a world where computers, digital games and communications are the future, eSports have grabbed the imagination of all ages – especially the younger market - and gaming companies, big brands, and investors are listening and ploughing money into it. Whether you believe in it or not - it would seem foolish to ignore it.
Popularity in Asia
eSports has taken hold in the east to a much greater degree. In fact, in some parts of Asia it is now treated with the same respect as traditional sports. League of Legends is central to eSports across the world and high in the ratings is Chinese player Jian “Uzi” Zihao. A professional player, Zhiao commits to his own marketing campaigns. Recently, he signed a contract with one of the biggest sports equipment providers – Nike. This is of course great marketing for Nike as Zhiao has huge social influence in Chinese popular culture. Chinese eSports organisations have also been signing deals over the last year with KFC and Mercedes Benz.
Head a little further south and in Korea you will find another renowned League of Legends player, Lee “Faker” Sang-hyoek who has committed to a similar contract and now – also no doubt to his social influence in the country –has his own Ice Cream brand.
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eSports teams are already valuable
eSports teamsaccrue revenue in many different ways. As may be expected, franchises, endorsement deals, tournament winnings and monies from live events all add to annual revenue and total valuation. The result is very wealthy and powerful teams on the eSports stage. Already the value of the top five eSports teams have been listed in Forbes and they are as below:
1. TSM is valued at $410 million
2. Cloud9 is valued at $350 million
3. Team Liquid is valued at $310 million
4. FaZe Clan is valued at$305 million
5. 100 Thieves is valued at $190 million
In the west, big names in pop culture are championing the cause of eSports – celebrities such as Michael Jordan, Drake, and DJ Marshmello to name but a few. Retail companies such as ESPN is also getting in on the act.
Statistics reflect popularity over the last 5 years
The growth in popularity of eSports is reflected in recent figures produced by Insider Intelligence. The top three markets are Asia-Pacific, North America and Europe (APAC) in terms of audience and revenue. APAC accounted for over half of viewership in 2019 (a rise of 7% in 2017). North America itself is expected to hit $300 million in revenue and Europe - $138 million this year. Across the world, the eSports industry is expected to hit a massive $1 billion and Insider Intelligence estimates there are now 27 million eSports viewers in the US alone – a rise of over 10% in 2020.
One of the main reasons why eSports is catching on so fast is due to the fact that devotees can stream it easily either through You Tube or Twitch. It is accessible to a wide market of users. This new popularity and its surge into fashionable culture has been heightened and enhanced by sponsorships. Also, media attention is driven by high-profile celebrities which in turn has led to interest from big brands and venture capitalists offering investment.
The increase in investments in eSports recorded by Insider Intelligence (II) over the last 4 years is quite staggering. In 2017, the amount of investments in the US actually doubled. It increased from 34 investments to 68 investments. A year later the increase in the actual amount of money invested was also eye-popping. According to II, the increase was from $490 million in 2017 to $1.5 billion in 2018. All of this adds up to a year on year increase of 837%.
What of the future?
Perhaps the most important tool in 2022 will be the mobile. Already the centre of the eSports industry in China, It is expected that the mobile phone as a main device will hit home next year across the world. It will allow many more fans to join and current devotees to access their favourite games at anytime, anywhere. Continuing the growth into 2022, Newzoo expect revenue from eSports to hit $1.8 billion. eSports continues to break down barriers and create lucrative deals through media rights, sponsorships, live event ticket sales and in-game purchases.The future looks very positive.
Scientific Games Continues Social Responsibility Push
Scientific Games has announced that its Lottery Group continues with responsible gaming initiatives for the fourth consecutive year to participate in the National Council on Problem Gambling’s (NCPG) annual “Gift Responsibly” holiday campaign. The company has wrapped the initiative into its ongoing Healthy Play™ responsible gaming program, which provides lotteries with innovative products and tools promoting Have Fun. Do Good. Play Healthy.
Scientific Games joins U.S. and Canadian lotteries as well as a number of lotteries in Europe and Australasia in support of the NCPG’s 2021 “Gift Responsibly” campaign to raise awareness about the risks of gifting lottery games to underage players during the holiday season. in the gaming and lottery industries, and one of the first companies to be certified by the World Lottery Association as a responsible gaming supplier,” said Keith Whyte, National Council on Problem Gambling Executive Director. “They are a valued NCPG member that is once again participating in the Gift Responsibly Campaign. We thank Scientific Games for helping to spread the message that adults should avoid giving lottery tickets to children during the December holiday season.”
Scientific Games integrated its efforts for NCPG’s 2021 holiday campaign into the company’s Healthy Play responsible gaming program.
“The NCPG’s “Gift Responsibly” campaign is perfectly aligned with the goals of our Healthy Play program,” said Carla Schaefer, VP of Responsible Gaming for Scientific Games Lottery. “Our creative and communications teams have developed holiday Healthy Play trade ads featuring the Gift Responsibly visuals, as well as social media, website and internal communications tools to help share the important message that lottery games are not child’s play and should not be gifted during the holiday season or ever.”
The goal of Scientific Games’ Healthy Play program is to help lotteries educate their players, establish trust and increase lottery literacy by providing the tools and best practices that enable lotteries to market and sell their products in healthy and responsible ways. The company recently rolled out its Healthy Play Guide, a digital magazine available to lotteries, and will launch a Healthy Play website accessible by players through a QR code and customizable for individual lotteries.
