Category: News

There are three key components to chart success: distribution, penetration and game design. This article looks at distribution and specifically, indirect distribution, or how to expand your coverage via aggregators.

The more the merrier

“How do we get on operator Z’s site?” the boss or chairman asks? Uh oh, there’s that question again – slightly gentler than the more accusatory, “Why are we not on Z’s site?”, or “Why haven’t you done a deal with Z?”.

As there are zero incremental costs on gameplay, more distribution means a higher bottom line. The more (and bigger) sites your game appears on, the more turnover it generates, hence the obvious and predictable questions.

While you might entertain ambitions of hundreds of operator deals around the globe, this is a long haul. Operators have very little bandwidth for integrating new studio partners directly and getting to the top of an operator’s roadmap is a major hurdle for direct integrations.

You’re not only competing with other studios and aggregators (and operators will prioritise by size) but also payment processors, data feed suppliers, CRM tools, maintenance and upgrade projects and the raft of new compliance functionality that needs adding on a regular basis.

Melvin Ritsema, managing director of Royal Panda, says that operators can no longer cope with too many separate integrations. “Let’s be optimistic and say the integration of one game supplier is two weeks… [if you have] 50 suppliers for an operator, that’s 100 weeks of development, or two full years”, he told Casinobeats Malta Digital last year.

Data from Egamingmonitor.com reveals there are an average of 32 studios per operator, which implies at least a year’s worth of integration work, not to mention the ongoing maintenance and compliance implications of hosting so many partner feeds. In this context, the more traditional chain of studio/aggregator/operator may be making a comeback.

It’s no wonder that some studios, having integrated into a couple of operators, see the potential to act as aggregators for other studios that have been left out in the cold.

Most importantly, there is a close correlation between the number of aggregator deals and game distribution.

More aggregators = greater distribution

At Egamingmonitor, we have mapped out the complex relationships between 500 gaming studios to 350 aggregators and 1,000+ operators.

Here’s a top 10 chart of studios, ranked by the number of aggregator partners they have. The size of the aggregator partner ‘bubbles’ is a function of the total games they aggregate from all of their studio partners.

Microgaming tops the chart here, distributing its games to 91 platform providers or aggregators. Everymatrix, Oryx, White Hat, Alea, SoftSwiss and Iforium are some of the larger aggregators they distribute to, for example.

It’s no coincidence then that those studios with the most aggregator partners also feature strongly in overall game distribution – measured as the number of operator sites where their games appear. Five of the top 10 studios by number of aggregator partners are also in the top 10 by number of operators.

If we group studios under their gaming groups, the picture does change slightly, with the likes of Gauselmann, SG Digital and Playtech featuring higher in the charts. Note also that Microgaming’s 10 ‘independent’ studios are not grouped in this view either.

The scatter chart below shows first how our industry is characterised by many small studios with a handful of operator sites and aggregator partners. For the medium/larger companies there is a good correlation between the number of aggregators and the number of operator sites where games are distributed.

So if the objective is to achieve the broadest possible distribution within the shortest period of time, then the indirect route can deliver. In return for broad distribution and shared functionality, a studio will realise a lower percentage but of a far higher turnover.

Aggregator choices

Studios still need to get onto a product roadmap, that of the platform provider, but once integrated, the reach can be impressive. There is, of course, a difference between being listed as a partner and being fully integrated into an aggregator’s engine.

A full integration into the RGS takes longer as game components are often rebuilt on the aggregator’s platform, though this also means that studios benefit from shared functionality such as leader boards, tournaments and networked jackpots. This, in turn, means better uptake by operator clients of the distributor.

A closer look at the data can identify potential aggregator partners, with a preference perhaps for those that seem to achieve new studio integrations faster than average. The snapshot below from iGB’s interactive Casino Dashboard highlights the busiest aggregator dealmakers in recent months, for example.

Over the last six months, a total of 197 deals were announced between 70 aggregators and 120 studios, with BOG and PariPlay topping the charts with 10 deals each in the period.

Conversely, you could focus instead on those that partner with just a small number of studios, where your products will have more attention and take up more shelf space. Alternatively, you may want to filter the data by country, highlighting a geographic angle to your aggregator opportunities. If you prefer quality to quantity, you might focus on those serving Tier 1 rather than Tier 2 operators, and so forth.

If you’re looking for the broadest possible distribution for the least cost in the shortest amount of time, indirect distribution is where it’s at. With 350 firms characterised as either aggregators or aggregator/studio hybrids, there are plenty of opportunities for indirect market access.

Kevin Dale 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.

Image: Photo by Mateo Vrbnjak on Unsplash

However, the business made a net loss of €254.6m as expenses declined more slowly than revenue amid land-based suspensions.

Full year operating revenue was down from €1.64bn in the full year 2019, a year which saw the company make an operating profit of €472.7m and a net loss of €6.7m.

In the fourth quarter of the year, the operator generated €211m in operating revenue, down from €537.6m in Q4 2019, and €51m in operating profit, down from a net operating profit of €53m in the previous year.

After a strong start in January and February, which the operator said was up 28% over 2019, the impact of the novel coronavirus (Covid-19) pandemic saw revenues suffer a serious impact from March following the widespread suspension of its land-based operations across several jurisdictions.

When venues were permitted to reopen, at different intervals depending on the local decrees of the different jurisdictions Cirsa operates in, the operator said the group managed to reduce the impact on revenue and results in spite of a large reduction in operating capacity.

The year provided 45% fewer productive hours than usual, it said, however its “Secure Gaming” plan allowed it to mitigate the impact of this and recover its customer base and income.

It also said the group’s solid financial structure allowed it to maintain high levels of liquidity throughout the year.

Its casino and bingo hall divisions were hit hard by closures across the globe, the operator said, but the Secure Gaming plan allowed it to return to a good level of activity in these when venues were allowed to reopen.

The time spent closed varied by jurisdiction, it pointed out, stating that while venues in Spain reopened for a period after just 86 days, the land-based sector remained closed in Panama for some 7 months and in Peru for around 9 months.

While slot machine revenue suffered significantly, the operator said the Manhattan and Pharaoh’s Gold games launched by its UNIDESA B2B subsidiary became the best performing slots on the market.

Its Sportium subsidiary, which mainly focuses on the Spanish retail betting market, maintained a good level of activity, it said, and the efficient management of resources helped maximise revenue and minimise costs throughout the year.

Cirsa said Sportium’s digital channel, which remained fully operational throughout the year, continued its progression towards significant growth rates.

Gaming brought in $7.30bn of SJM’s revenue, down 78.0%.  Gaming revenue in Macau as a whole for 2020 was down 79.3% year-on-year following closures and travel restrictions, though the last restrictions for travellers from mainland China were lifted yesterday.

Breaking this gaming revenue figure down further, non-VIP table games brought in $5.86bn, a 76.7% decline. VIP gaming revenue dropped 85.1% to $2.04bn and slot revenue declined 68.0% to $379.3m. This resulted in gross revenue of $8.28bn, of which $971.0m was removed through bonuses and commission.

Hotel, catering and other revenue also declined rapidly, by 71.3% to $202.5m. 

SJM’s flagship Casino Grand Lisboa venue brought in $2.07bn in revenue for the year, down 84.0%. Other SJM-promoted casinos brought in $1.35bn, down 78.5% and revenue from satellite casinos – which are operated through service agreements between SJM and third party promoters – dropped 84.5% to $4.85bn.

After paying $3.37bn in gaming taxes and levies, down 78.3%, SJM was left with $3.94bn, down 77.6%.

SJM’s operating expenses came to $7.26bn, with the vast majority, at $7.10bn, in general and administrative expenses. It paid an additional $124.7m in marketing expenses, down 98.0%.

This led to a net loss of $3.15bn, compared to a $3.37bn profit in 2019.

After $22.5m in tax, down 56.4%, SJM’s post-tax loss was $3.17bn, after a $3.32bn profit the year before.

The business also incurred a $313.7m loss through the change in fair value of investments, leading to a $3.49bn total comprehensive loss, compared to 2019’s $3.27bn total comprehensive profit.

The Borgata Casino features over 150 slots and table games, with players able to access content such as Premium Blackjack Pro and MGM Grand Millions.

BetMGM’s integration with the MGM Resorts’ M life Rewards program will also allow Borgata Casino players in Pennsylvania to redeem points from gameplay for at MGM Resorts properties across the US, such as the Bellagio and MGM Grand in Las Vegas, Nevada.

Borgata Casino becomes BetMGM’s second online casino in Pennsylvania, with the operator having launched its BetMGM Casino brand in December last year.

“There are few casino brands as well-respected as Borgata, evident by the success we’ve seen with the Borgata Casino app in New Jersey,” BetMGM chief executive Adam Greenblatt said.

Read the full story on iGB North America.

Sharrock joins from retail chain Marks and Spencer, where she had been head of human resources since 2018. Shamrock had also served as head of HR within BT’s consumer division and previously held roles at ESPN and ITN.

“I am proud to be joining The Jockey Club at such an exciting time for the business,” Sharrock said. “The deep heritage of the organisation, the passion of the people within it, and the vision of Nevin and the leadership team present an incredible opportunity.”

Nevin Truesdale, chief executive of The Jockey Club, said Sharrock would play a key role in recruiting and training new talent.

“I’m thrilled to welcome Helene to our team,” Truesdale said. “She will play a lead role in driving our people agenda over the next few years as we continue to innovate, welcome and retain talent and support the wellbeing and development of colleagues throughout The Jockey Club.”

Sharrock’s appointment follows the Jockey Club’s announcement of three new senior commercial hires last month.

Charlie Boss joins the organisation as chief commercial officer in May, while Alexandra Goldschmidt becomes director of partnerships and Hannah Grosvenor national sales director.

The Austrian Treasury is currently responsible for licensing and enforcement of gambling regulations, but the new authority will take charge of these duties. 

Blümel said a key focus of this new regulator will be player protection, necessitating a series of new controls on legal and illegal gambling. 

“Player protection is of particular importance, as gambling is a very sensitive area for players, their families and for society, which also carries considerable risks,” he explained. 

“Players are often affected by addiction and as a consequence confronted with financial, psychological and existential issues.”

As a result, the regulator will be tasked with establishing a national self-exclusion system covering online and land-based gambling. 

It will also be expected to step up enforcement activity against unlicensed operators, and will have the power to order internet service providers to block access to these sites. 

A blacklist of unlicensed domains will be created as part of this process. 

New regulations will also be developed for loot boxes, which Blümel said could have a particularly negative impact on younger gamers, and lead them into traditional forms of gambling. 

The Minister went on to say that Austria would look to replicate Germany’s regulatory model, introducing controls such as monthly deposit limits, as well as limiting stakes and playing time for online slots. The exact limits will be developed in consultation with experts in gambling addiction. 

Furthermore, taxes on the industry are to be raised, to ensure operators contribute to the prevention and treatment of problem gambling, and advertising controls will be tightened. This will see gambling marketing subject to controls similar to those imposed on tobacco companies. 

In addition to these player protection focused measures, Blümel announced new anti-corruption safeguards, in the wake of a political scandal that engulfed Austria-based gaming giant Novomatic, Casinos Austria and a number of high-ranking politicians. 

Discussions in parliament are underway over a ban on donations, advertisements and gifts in kind to politicians or parties from gambling providers, arms manufacturers and the tobacco industry. The Minister said this would ensure a higher level of transparency. 

This will also see the federal licence for video lottery terminals (VLTs) abolished, with providers instead requiring licences from the states in which they operate. Three licences to construct new casinos will also be scrapped.

The necessary regulations to facilitate these changes are expected to be developed by the end of April. They would then be put to parliament, with a view to having the laws passed by Autumn 2021.

Plans for an overhaul of Austria’s regulatory framework have long been discussed, with Blümel revealing in March last year that he aimed to “untangle” multiple functions currently held within the Treasury.

The £80,000 (€93,008/$112,854) grant will be added to funds provided by the Professional Jockeys’ Association (PJA), which operates the scheme on behalf of its members.

With the support of the HBLB funding, the PJA will continue to look for a sponsor or alternative funding from the within the sport to continue to fund the scheme in the longer term.

The funding comes after the scheme lapsed at the end of November last year after the PJA was unable to find a new sponsor or other funding from within racing due to the current economic climate caused by the novel coronavirus (Covid-19) pandemic.

“The PJA has now committed close to £500,000 out of our own reserves to keep our jockeys covered for the last two years and our members can now be assured that they are covered for a career ending injury for the next six months whilst we try to find a sustainable, long-term solution for this vital scheme,” PJA chief executive Paul Struthers said.

HBLB chairman Paul Darling added: “This scheme has been in place for almost 10 years, paid for by commercial sponsorship and contributions from jockeys. It provided a critical safety net for jockeys, for whom the risk of serious injury is part of everyday normality.”

Darling also said the contribution from the HBLB would be a one-off one, with the organisation to work with the PJA to find a new sponsor.

“It is essential that fresh funding is found to continue this scheme and I am sure that racing organisations will play an active part in ensuring that the scheme is continued,” Darling said.

In October, the HBLB also said it would contribute £31.9m in funding towards the first four months of racing in Great Britain in 2021, to help the industry’s recovery from Covid-19.

Under the agreement, Genius will power the MFL’s first live data collection and distribution platform, covering the league’s largest competitions, including the Liga Super, Piala FA and Piala Malaysia.

Live match statistics will be made available across an automated social media publisher service, live widgets and the MFL’s other media platforms.

Genius will also deploy accredited statisticians at all Liga Super games and the knockout stages of the Piala Malaysia to operate Football LiveStats. This will capture advanced team and player statistics including shot locations, assists and cards with detailed explanations.

In addition, Genius has launched a new integrity program to safeguard MFL competitions from the threats of match-fixing and betting-related corruption. This includes the Genius Bet Monitoring System, in-person workshops and a bespoke Integrity Audit Service.

“When live data is easily available in digital formats, it enhances fans’ experience as well as their knowledge of the matches and competitions while it’s being played,” MFL chief executive Dato ’Ab Ghani Hassan said.

“This will further expand the dimensions of the competitions, players and teams.”

Mohamed Feizel, senior commercial partnerships manager for Asia at Genius, added: “Live data and statistics are a central part of the modern fan experience, particularly with the majority of world football still being played behind closed doors.

“In partnership with the MFL, we aim to provide their fans with engaging updates before, during and after every game while providing a platform to expand their global audience.”

Stella David will become senior independent director and joins the Remuneration, Nomination, and Environmental, Social and Governance Committees. Vicky Jarman has been appointed an independent non-executive director and joins the Audit and Remuneration Committees.

David was previously the chief executive of William Grant & Sons Distillers, after more than 15 years working with Bacardi Ltd, culminating in five years spent as the brand’s global chief marketing officer.

Until recently she was chair of shoe manufacturer & retailer C&J Clark Ltd, and spent seven years as a non-executive director at Nationwide Building Society, where she chaired the Remuneration Committee.

David is currently a non-executive director of Domino’s Pizza Group, Bacardi, provider of home repairs and improvements HomeServe Plc, and Norwegian Cruise Line Holdings.

Vicky Jarman is a chartered accountant who qualified at KPMG before working with financial advisory and asset management firm Lazard and Co, first in the investment banking team and then as chief operating officer for the London and Middle East operations until 2009.

Jarman is currently non-executive director of Signature Aviation plc and Great Portland Estates plc.

She was previously non-executive director and chairman of the Audit Committees of financial services company Equiniti Group, recruitment firm Hays plc and manufacturing company De La Rue plc, as well as senior independent director at Equiniti, and non-executive director at estate agency Knight Frank LLP.

Barry Gibson, chairman of Entain, said: “I am delighted to welcome Stella and Vicky to the Board of Entain. Between them they offer a hugely additive variety of skills, perspectives and experiences gleaned from many different roles and industries.

“We now have a truly exceptional Board that will help Entain realise its clear and ambitious strategy for sustainability, growth and innovation.”

“I would also like to thank Stephen for his huge contribution to Entain over the past the five years, as well as his counsel and help to me personally. I wish him all the very best for the future.”

Entain confirmed the appointment of Jette Nygaard-Andersen as its new chief executive in January, replacing former CEO Shay Segev as he stepped down from the role to become co-CEO of sports streaming platform Dazn.

Earlier this month, the operator confirmed the appointment of former Louisiana gaming chief Ronnie Jones to an advisory role on its board, along with other former regulators from several US states.

The report was conducted through a web-based survey of the Ampersand Gaming panel, with 106 responses. It marked the fifth such report, and the second since the start of the pandemic. 

The results showed a large degree of optimism about the future of online casino. The majority of respondents, at 70%, said they expected this vertical to grow significantly over the next 12 months, with a further 26% predicting it to grow slightly and only 2% projecting decline.

For land-based casino, however, results were far more mixed, as 42% projected it to decline significantly and 8% to decline slightly, while 31% projected growth.

Looking specifically at respondents’ own businesses, 77% said they were optimistic, of which 17% very optimistic and the remainder quite optimistic. Only 5% were pessimistic, of which only 1% were very pessimistic.

When asked to list the biggest opportunities in the gaming industry, popular responses included online and mobile gaming, esports and new markets such as Latin America, Africa and the USA.

Covid-19 was seen as the biggest threat to the industry, meanwhile, with regulation in second place.

Regulation was also seen as the most important trend or development for those in the industry to follow, with new markets following.

New and emerging markets, however, declined in importance as a trend compared to past surveys, as did negative perceptions of the industry.

Respondents were also asked what area they would choose if given $500,000 to invest in technology. The most common response was artificial intelligence, with cashless solutions, mobile platforms and payments next.

When asked about organisations or types of company that have had a positive impact on their business, answers included land-based operators, suppliers and regulators, but no single answer gained a large number of responses.

Turning to organisations or types of company that have had a negative impact, regulators again featured, as did government and unlicensed gambling businesses.

Respondents said they most aspired for their business to be like British betting giant Bet365, with Entain, Playtech and IGT also popular answers. Out of non-gambling companies, respondents said they aspired to be like tech giants Amazon, Tesla, Google, Apple and Netflix.

Finally, Ampersand members said they currently use calls with colleagues, calls with suppliers and news sites to learn about new developments in the industry, but when society returns to normal, they expect live events again to be the main way to learn about these developments.

Breaking down the respondents, the majority of those answering were involved with casino or sports betting, with 39% and 29% of respondents respectively. Most respondents were either C-level executives, partners or managing directors at their business, while Europe and North America were the most common locations.

You can read the Ampersand Bellwether Report in full here.