NSW to create independent regulator in Bergin Inquiry casino reforms

The main recommendation to be followed up on by the government is that the Independent Casino Commission (ICC) be established as an independent, standalone, specialist casino regulator, followed by a series of legislative reforms aimed at preventing criminal activity related to casino operations.

“The NSW Government response to the Bergin Inquiry will see a redesigned regulatory structure for casinos in NSW, with a clearer focus on addressing money laundering risks inherently associated with casino activities,” said Victor Dominello, minister for digital and customer service in NSW.

“It is critical the management and operation of casinos in NSW are free from criminal influence and exploitation. Committing to implement the 19 recommendations from Justice Bergin’s report is an important first step in the process of reforming the casino sector.”

Dominello said the new casino regulator would be subject to detailed design work and funded via the casino supervisory levy.

“In addition, we will continue to monitor the current casino Royal Commissions in Victoria and Western Australia and consider any proposals for regulatory reform recommended by those inquiries, including stronger gambling harm minimisation measures,” he concluded.

Other recommendations made by the Inquiry include an amendment to the Casino Control Act requiring each casino operator to engage an independent compliance auditor approved by the ICC, to report annually on the operator’s compliance with its obligations.

The Inquiry also recommended requiring operators to monitor patron accounts and perform heightened customer due diligence, prohibiting casino operators from dealing with junket operators, and the introduction of an amendment stating that a person may not acquire, hold or transfer an interest of 10% or more in a licensed operator without prior approval of the ICC.

The state’s Independent Liquor and Gaming Authority continues to assess the suitability of Crown Resorts to hold a NSW restricted gaming facility licence, and will be responsible for determining the circumstances in which the operator’s Sydney gaming facility is permitted to open.

Crown was deemed unsuitable to operate its casino at Barangaroo in central Sydney in February, after an inquiry found evidence that its facilities and accounts were used for money laundering, in addition to engaging with junket operators with alleged connections to organised crime. Currently, it operates a hotel at the Barangaroo location, but has yet to launch gaming operations there.

This week, the Authority also invited the public to provide feedback on the impact of its 2018 gaming machine reforms, which capped machine numbers in high-risk communities and introduced a leasing scheme encouraging small venues to remove gaming machines.

“These areas were capped three years ago to ensure no additional machines could be moved into these areas, and we want to see how effective they have been in reducing gambling harms,” said executive director of policy and strategy for the better regulation division, John Tansey.

“The NSW Government is keen to hear from the community, so we are conducting a survey to help inform our evaluation. We will also be inviting venue operators with GMEs to complete a separate online survey.”

Sportnco enters Greece market with NetBet.gr sportsbook migration

NetBet.gr, the Greek-facing brand of NetBet Enterprises, has been granted both type 1 and type 2 online gaming licenses in Greece by the Hellenic Gaming Commission (HGC). The HGC also approved a supplier’s licence for Sportnco, which recently recorded year-on-year revenue increases for 2020.

Sportnco founder and CEO Hervé Schlosser said: “We are delighted to be expanding our relationship with NetBet, and onboarding NetBet Enterprises on our portfolio of clients.

“This newly-regulated market enables Sportnco to demonstrate its know-how for meeting complex IT and trading requirements and once again we are excited to be expanding our international footprint. We’re really looking forward to developing NetBet’s presence in Greece.”

NetBet obtained its Greek supplier’s licence earlier this year, allowing it to supply its online casino and sports betting products within the country.

Gabriela Arnautu, CEO of NetBet Enterprises, added: “We are very happy to be working with
Sportnco in Greece and look forward to developing this relationship thanks to focused
service and customer management with our sportsbook provider. Greece is a great market
for us and we look forward to continuing our growth there with Sportnco.”

The HGC launched its new regulatory system in January 2020, creating separate licences for online betting and gaming. Other changes include capping slot spending at €2 per spin, and a three-second spin minimum.

The dark arts of game design

In our last article, we looked at the commercial aspects of game success: game distribution and game penetration across operator sites. This next set of articles focusses on the design components of game success.

Many a game designer has found the nuances, the things that make one game outperform another, elusive and attempts to clone the likes of Rainbow Riches or Starburst rarely exceed expectations. Even when A/B testing the same game with different background colours you can find major discrepancies.

But before delving into the ingredients of that elusive recipe, we first take a look at product strategy. Where do you stand on the dimensions of quantity vs quantity, or innovator vs follower? How do you measure game performance and is the goal itself of ‘Blockbuster success’ either realistic or desirable?

Product strategy as context
Success is about growing revenues, shareholder value and fulfilling your own potential. With limited distribution, for example, even the best games will not ‘top the charts’ as such. Over-reliance on single game brands can also be a weakness as it’s the longevity of portfolio performance that counts.

For most studios, game design considerations are about maximising performance within their own group of operators and also generating content that helps to open new doors. Innovating and refining game mechanics, themes and brands will lead to stickier content, thus more gameplay and revenues. New, interesting or stickier products also make it easier to secure more aggregator partners, more operators and better site positioning across the different subpages.

Quality vs quantity
Revenues can be made up of a large volume of average games or a handful of premium titles: the usual quality vs quantity dimension. The average operator site will have around 1,300 titles from 30 studios. At Egamingmonitor we add just under 500 games from 500 studios every month to the database. In this context, being “new” is not unique or, at best, is a fleeting status.

To gain exposure you may focus on a handful of premium titles that will be featured for longer, should perform better and whose performance, in turn, will lead to improved positioning on site and thus greater longevity. Alternatively, you may try to feature in the new section more often and/or with more titles, churning out a constant stream of games, many of which may be fairly similar, at least in terms of game type and mechanics.

It’s simple maths: if the average operator adds 30 new games a month to their site and a typical studio turns out 1 game per month, then the average new release will have 3% share of exposure on the ‘new’ tab/section, or 0.1% exposure across the whole site. With the average studio fielding around 40 games in total, their share of cross-site exposure will also be 3% (40/1300).

Outside of commercial negotiations, you could improve on these ‘averages’ by producing either more, or better, games. Note that there are also hybrid models of the two, for example, whereby different sub-brands or game families are able to cover off both bases.

If a quantity strategy triumphs, then game themes and volatility levels (within the scope of existing mechanics) are the easiest components to adapt. A quality strategy meanwhile allows for more variation in game types and mechanics and can involve better graphics, animations and music, but with the obvious cost and time tradeoffs.

Among end-users, there is now a wide range of tastes for different game types, mechanics, volatility levels and themes. There are also those who value new and/or quality games more than others. When trying to appeal to these varied tastes, the same quantity/quality dimension still applies: premium games will be stickier and are likely to cater to more game type or mechanics preferences. A quantity strategy allows for broader coverage of theme interests and has a good chance at capturing those players who enjoy anything fresh and shiny.

Note that as operators tend to add games faster than they retire them (they compete with other operators on both quality and breadth of content), the maths behind this numbers game is also changing over time.

Finally, if more output is needed, your approach to in-house development vs outsourced games or game components needs some thought – but that’s one for a future article in this series.

Innovation vs tradition

Safe and solid or “out there” is a choice too. It’s related to the quality/quantity dimension since innovators tend towards quality, yet those that are less risk averse can still choose quantity over quality or vice versa.

There are costs, risks and rewards associated with innovation and where you stand on the spectrum needs to be explicit in the product strategy. It is not always either/or, either. You may straddle the two at different times, or with different studio brands or game families. You may also find your niche as a “rapid follower” of what appear to be effective innovations from the pioneers.

Data-driven product design

We all know that products are more likely to succeed if their design is driven by data. But how often do we launch products where we don’t really have enough data to hand? Internal data, market trends, competitor research, concept testing, multivariate game feature testing, customer panels or soft-launch testing with live data feedback loops. Of this list, how many of us have it all covered, or to the qualitative and quantitative level that leads to the right decisions?

If you tend to rely on internal data only, be wary of bias. Given the volatility of game engines and the behaviour of VIPs, you can find marked differences when comparing games on engagement versus financial metrics. Have you benchmarked games on revenue vs turnover vs spins vs user numbers vs returning user numbers vs session length data vs UX data? Mean or median averages can also tell a different story.

Do you have enough data to make valid conclusions? One VIP playing one game on one operator site can skew the conclusions you may draw on relative game performance. It can also impact the exposure that operators give to certain games too, leading to a vicious or virtuous circle where initial performance data leads to decisions which reinforce those same early conclusions. Similarly, recommendation engines can be overly simplistic, compounding trends based on limited data and reducing game discovery.

Looking at external data, what games or studios are ranking well? What features, themes, brands or mechanics seem to work and how does it all vary by market segment? Drilling down on game performance data by game type, by market, by feature, by theme etc. can really inform product decisions. The data also exists to see how external site distribution and positioning correlates with internal metrics.

Game components: RTP, features, mechanics, themes, colours, brands

Finally, back to the recipe, or the game components and features you choose to incorporate in a product. There are plenty of considerations here and the list below will not do them justice. Look out though for more articles in this series that consider each in turn, with data supporting the key trends.

Game-type selection: slot, hybrid or other, such as live games, video bingo, video poker, table games, dice, keno, virtual, scratch, crash and skill games…Do you define yourselves as a slot developer or do you also cover other game types, such as table games, for example?Mechanics and maths engines: plenty of choices here too, including ‘ways’, clusters, slingo, reactors plus various base game vs bonus game choices. Should you develop mechanics in-house (Lock ‘n Spin, Hyperways, Quick Hits, Infinireels etc) or license those such as Megaways from third parties. If you have your own branded mechanic, should you consider licensing it to others? Mechanics and maths engines will reflect the desired volatility, RTP or hit frequencies – more on these below.Volatility: this is a function of payout tables, max win multipliers, jackpots and hit frequencies. Multipliers can relate to the base game, the bonus game or both. Jackpots can be fixed or progressive, single or multi-game, while Red Tiger introduced us to must-drops which can be dailies or even hourlies. Hit frequencies can be on any win, any win greater than the stake, or the frequency of triggering a bonus game. Hit frequencies can even vary by the realised RTP. Some games, for example, can auto-trigger bonus features or symbols after a long string of losses in the same session. Churn reduction is applied in real-time in the video game industry. A ‘rage algorithm’ in FPS games, for example, takes into account recent game wins and kill/death ratios, matching players to the skill level of their next of opponents based on live data. Poor recent performance leads to easier games and vice versa. There’s plenty that we can ‘borrow’ from other gaming sectors.Customer choices: these can be incorporated too, including those that affect volatility and hit frequencies, such as reward options or the increasingly popular feature buys, as well as the usual line number and/or bet size options. In sports betting and roulette, customers can choose long vs short odds and some slots are now facilitating these preferences within a game. Other game choices may include the ability to change ‘skins’ and/or player profiles – more functionality that is borrowed from social or video gaming.Skill components in slots: often touted as the crossover product between the worlds of casino gaming and social gaming, allowing players to exercise choices that represent some level of skill. As with blackjack these skill options still need to fit within the boundaries of best play RTPs. Most blackjack games have a theoretical RTP of 98-99% based on best play, for example, though they tend to realise around 95% in practice…RTP: is typically fixed and based on millions of gameplays but can also vary according to customer choices and game session performance as above.Reels, rows and layouts: very much a function of the maths engine and can be simple or complex.Social, gamification and multiplayer components: these include missions, tournaments, leaderboards and pooled or syndicated jackpots. These components can be either single game, multi-game or at a multi-studio level. Where functionality is platform-wide it is driven more by the aggregator or operator and studios would instead enable/adapt the functionality for their games.Game speed: there are conflicting trends here with compliance pressure towards minimum spin durations and the younger generation is used to shorter cycles. Sports betting has moved from pre match markets to multiple in-play events. There are also churn considerations here since games that play through funds faster run a greater risk of customer burn-out. Turboplay, autoplay and auto-reveal options all fall under this category.Themes, symbols, game names and colours: plenty of choices here and a review of game performance by theme by market can be informative. Egamingmonitor categorises all games into 70 themes and 20 colours – used by studios for product research and by aggregators or operators for game recommendation engines.Brands: studios can look to third party brands such as Monopoly and King Kong (3% of all games use licensed content) or develop their own in-house brands/brand families such as “Book of..”, “Age of The Gods” and so forth. Game brand extensions are also discussed in this context later in the series.Graphics, animations and music: these all contribute to the immersive gaming experience and reflect earlier decisions on target markets and themes. Note that outsourcing can work well here too.Game download size: speed considerations may come into play, especially with desktop vs mobile and full screen vs mini game dimensions.

A key process in product development is to segment users and to design products for specific target markets.

Segmentation can be based demographic: age, geographic, socio-economic, but also behavioural: whether a core interest is sports, casino or bingo; online or offline; new or existing customer; VIP or recreational; plus segments based on game types, theme, game mechanic, volatility or motivation preferences.

Segmenting by motivation in particular can allow you to match the game components above to what really drives players to try out games. Motives may include entertainment, excitement and stimulation; achievement, progression and learning; escape and relaxation; or social interaction.

Then of course there are different expectations of risk/reward ratios. A big matrix of segments, drivers and their matching features or components goes a long way to defining your product strategy.

Finally, game components may need to be flexible – even for the same game – to meet different market segment requirements, whether driven by compliance needs or customer preferences. The recent German tax on stakes is but one example here.

With a clear strategy, some great distribution for your products and great relationships all securing you prominent positions across operator pages, a focus on product strategy is next. After all, even with good exposure, the games themselves still need to perform…

Kevin is the co-founder of eGaming Monitor. He was previously CEO of Gameaccount (now GAN plc) and CMO at Eurobet, Sportingbet and Betfair. Egamingmonitor.com is an advisory firm to the gambling industry, with proprietary data covering 30,000 games from 1,000 suppliers across 1,000 operator sites.

Photo by Junior Teixeira from Pexels

Pennsylvania gambling revenue reaches record $423.7m in July

July’s figure surpassed the previous record of $413.2m set in May this year and was also far higher than the $283.1m posted in July of 2021.

The significant year-on-year rise was partly down to the reopening of land-based casinos, with some facilities having been closed for parts of July 2020 due to the novel coronavirus (Covid-19), while others faced strict operating restrictions.

However, many measures have now been eased or removed completely, allowing patrons to return to the casinos in greater numbers.

Breaking down segment performance, online gambling revenue for the month amounted to $88.7m, up 63.1% from $54.4m last year. Online slots revenue was by far the main source of income for operators at $63.2m, ahead of online table games revenue at $22.9m and online poker revenue at $2.6m.

Read the full story on iGB North America.

Barinboim remains confident its bid is the “only option” for Finalto

Shareholders representing 68.3% of Playtech’s voting rights voted against the consortium’s $210m (£152.7m/€179.5m) offer this morning. This offer had been recommended by the Playtech board, despite the emergence of a rival $250m bid from Playtech shareholder Gopher Investments.
The general meeting at which the vote was held was delayed to allow Playtech’s board to receive certain information about Gopher, mostly related to its ownership structure and whether this would impede regulatory approval.
However, after Playtech said it failed to receive the necessary “clarity” on Gopher’s bid, it reaffirmed its support for the consortium’s offer.
Despite this, Playtech shareholders opted to reject the bid. The Barinboim consortium said that “publications of what the consortium believe to be misleading statements” – statements that Playtech said were not accurate – played a part in the negative vote.
With the bid now rejected, Playtech may formally negotiate with Gopher on its offer. However, the Barinboim consortium said that Gopher’s true level of interest will soon be clear.
“If Playtech has not managed to enter into a fully binding agreement with Gopher within the next three weeks, it will be clear that Gopher’s interest is not genuine and the only credible transaction capable of concluding in the near term would be to the consortium, which has already been recommended by Playtech multiple times,” it said.
In this three-week period, Barinboim continued, it expected that Gopher would not be able to come to a binding agreement with Playtech’s board. If a deal cannot be agreed, Barinboim said it would be ready to reengage with the Playtech board.
“The consortium is confident that a deal will not be forthcoming within the three weeks Gopher claims it will take and when this becomes clear, the consortium will welcome the opportunity to engage directly with ISS and Glass Lewis in a constructive manner, which can only benefit Playtech shareholders,” it said.
“Playtech’s only option to sell Finalto within the next year will be to the Consortium, which Playtech has repeatedly recommended.”
While the consortium was established solely for the acquisition of Finalto, it had opted to remain in place for 30 days in case there is an option to work on a new bid.
Finally, the consortium noted that a major benefit of its offer was the fact that it would ensure a smooth and fast disposal of Finalto, rather than a protracted process of regulatory approvals.
“In Playtech’s words, it has been an ‘elongated and thorough process’, and the consortium was selected taking into account not just the price, but also its ‘ability to complete the transaction (particularly in light of the Finalto Business’ regulated status in multiple global jurisdictions).”

Sightline Payments hits $1bn valuation after $244m fundraising round

With this milestone, Sightline has become one of an estimated 700 global startups to earn over $1bn as a private company.

The funding round involved Cannae Holdings and existing investors Genting Group, Point Break Capital Management, and Walter Kortschak.

Read the full story on iGB North America.

FanDuel enters multi-year partnership with golf star Jordan Spieth

The deal will see FanDuel, an official sports betting partner of the PGA Tour, become Spieth’s exclusive sports betting and fantasy provider.

In addition to becoming the face of FanDuel’s golf products, Spieth will appear in TV commercials and co-ordinate with FanDuel’s social media content.

Spieth said: “As the world of legal sports betting grows rapidly in the US, I’m incredibly excited about what’s happening in the space and the potential it has to bring new fans to the sport of golf.

“As the PGA Tour and others in the golf world have strongly embraced legalized sports gaming, I look forward to working with FanDuel to find unique ways to engage the fast-growing fanbase.”

Read the full story on iGB North America.

North Carolina Senate committee passes sports venue betting bill

Under the bill – Senate Bill 688 – the North Carolina Lottery Commission would act as the regulator and issue licences to operators and suppliers in the market.

Players would be able to place bets either online or in person, but only at, or within half a mile of, “sports facilities” or other property owned by owners of these sports facilities.

A sports facility is defined as “a facility that hosts professional sports and has a minimum seating capacity of 17,000 people or a facility that hosts a professional golf tournament annually.” This would include the stadiums for the NFL’s Carolina Panthers, NBA’s Charlotte Hornets and NHL’s Carolina Hurricanes, plus six different racetracks including the Charlotte Motor Speedway.

Read the full story on iGB North America

DraftKings secures Baltimore Ravens as fifth NFL partner

Though the length of the deal was not disclosed, it was confirmed that DraftKings will serve as the official daily fantasy sports partner of the Ravens, as well as an official betting and free-to-play partner of the Maryland-based team.

DraftKings branding will appear throughout the team’s M&T Bank Stadium and the operator will have access to a suite at the venue.

Fans will have the chance to win prizes such as autographed merchandise and away game trips by playing DraftKings’ daily fantasy and sportsbook contests, as well as the DraftKings-NFL Official Free-to-Play game run in partnership with the league.

Read the full story on iGB North America.

Tribal gaming revenue down 19.5% in 2020 following pandemic effects

The Sacramento region, containing California and northern Nevada, was the area with the highest revenue, generating $8.40bn, although this was still a 13.2% decrease from 2019.

The Washington DC region – encompassing Alabama, Connecticut, Florida, Louisiana, Mississippi, New York and North Carolina – was next with $5.82bn. This was followed by St. Paul – which covers Indiana, Iowa, Michigan, Minnesota, Nebraska and Wisconsin – with $3.73bn.

The Rapid City region, made up of Montana, North Dakota, South Dakota, and Wyoming, experienced the largest revenue decrease as revenue fell by 36.6% to $238.6m.

The GGR was taken as an average from 524 independently audited financial statements selected from 248 federally recognized Tribes across 29 states.

Read the full story on iGB North America.