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Online futures
In our recent Casino International Market Report calendar some of the biggest names from the world of online gaming put forward their predictions for the next 12 months. This month Matt Broughton presents the full unabridged version…
Online gaming years are like dog-years compared to land-based business. The changes a bricks-and-mortar casino might go through in the space of five years can occur in the blink of an eye online. With no chairs or tables to move, online business can ‘redecorate’ in minutes rather than months; new trends can spread across the online world practically overnight, while new games, products, interfaces and business models can be implemented at almost the press of a button.
In recent times we’ve watched as new affiliates appeared and old affiliates disappeared, bingo moved from simple digital renditions of the live pastime to a world of webcam-linked players all watching and sharing each others’ experiences… oh, and the FBI swooped down and spoilt all the online poker fun (thanks guys). In light of these observations I’m scared to predict what will happen in the next five minutes let alone the next 12 months. For this reason – and in an act of immensely slick journalism – I’ve cunningly passed the buck to some of the movers and shakers in the world of online gaming to see what they think will be in store for the industry over the next 12 months.
CASINO
Mike Hebden, Head of Casino at Microgaming, believes that 2012 will see a move away from ‘point and click’ as we head towards the more immersive ‘swipe and double tap’ world of the tablet. “A growing number of us will move away from the traditional experience of sitting down at a desk in front of a PC, and those software providers that can continue to excel in meeting the demands of these traditional device users while at the same time successfully handling the transition to these new devices will perform strongest.”
Jaydeep Chakravartty, Business Development Manager at Cozy Games, agrees: “Though the content across the industry seems to be getting similar, software companies need to embrace new technology to meet the challenges ahead.”
Ramiro Atucha, CEO of Leander Games, suggests that the future success of casino operators will be dependent upon their enhanced cultural understanding of any desired target market. “Creating exciting yet generic slot games in said country’s language will no longer be enough to engage with players. We’re based in South America and as such the majority of our game developers are also from this region, therefore each lives and breathes the environment that many operators are looking to target. Aside from the games that we have created which have mass global appeal, we have also embraced the Latin American culture by designing games on behalf of operators that will assist with acquiring players from this region. The differences between our games and others in the market reflect that it’s not just a difference in language that should be considered but also the actual game play, mathematics, graphics and background sounds/music.”
Live Casino is another area of business experts believe will continue to develop in the coming year. Ales Gornjec, ComTrade’s Director of Gaming, is one such believer: “The Live Casino sector will continue to grow with more live feeds from licensed land-based casinos, as they offer a unique playing atmosphere, authenticity and credibility. This will especially be the case in jurisdictions where a land-based license is a precondition to launching online. Online operators will thus be able to offer live games where online players are able to play together with players on a real live casino floor.”
Dominic Mansour, VP of Products for GTECH G2 suggest: “We will potentially see a merging of land-based casinos and online casinos, with linked jackpots and identical games. Subject to regulation, there will potentially be a huge move towards the US. Within the next 12 months everyone will be discussing it and all US casinos will be looking into the free play model.”
MOBILE
Another area very much in everyone’s sights for the coming 12 months is mobile. Betware’s Chief Marketing Officer: “Recent studies show that mobile users should exceed desktop Internet users as soon as 2012, which will see further expansion within the mobile entertainment market, an industry which has been strongly driven by the growing penetration of Smartphones.”
“Mobile has helped to shape the igaming industry’s “now” generation – players that want immediate access to lotto, casino and sports betting games no matter what they are doing and no matter where they are in the world. Therefore operators will be encouraged to seek out solutions such as the Betware Mobile Solution which combines the most engaging entertainment features whilst also giving players access to their player account, wallet and are able to review the latest game results. All this information, simply within reach of a hand, is the main strength of this solution.”
Microgaming’s Mike Hebden also thinks Mobile will continue to increase as a priority for the industry, driven by more powerful mobile devices, better user experience and the wider adoption of mobile browsing. “HTML5 development will challenge the App store model as equivalent standard apps will be available for less.”
Cozy Game’s Jaydeep Chakravartty also expects mobile gambling to boom in the next 12 months: “Though many operators are not yet sure of their mobile strategy, I sincerely believe that companies will focus on their mobile web applications. As Apple is not sure of their policy related to gambling applications, operators will embrace the mobile applications and launch content on mobile platforms as web applications.”
David Hunter, CEO of Ukash, sees the growth of the mobile as a significant opportunity for his own company: “Ensuring that payment options are in place that can easily be used on mobile for micropayments as well as larger deposits will ensure that operator margins are maximised. Systems like Ukash have no minimum transaction fees so can be used for very small payments and deposits, including in-app billing, as players interact with websites and games in new ways.”
Lydia Melton, Head of Network Games at Microgaming, sees mobile as a strong vehicle for online poker: “Mobile poker may not outstrip download poker in 2012, but we won’t be surprised to see it overtake web-based poker software in popularity.” Which brings us nicely to…
POKER
The next 12 minutes are hard to predict for online poker, but for GTECH G2’s VP of Products, Dominic Mansour, it’s full steam ahead: ”GTECH G2 are investing significantly in the poker software over the next 12 months, doubling the size of the poker development team, and are in the process of enhancing the product module by module. All our game development is driven by the needs of the player. For us listening to the players and customers on our networks helps us to deliver the ultimate poker experience.”
Mansour expects to see a growth in regulated markets, led by the success of the Italian model that’s now being adapted by the French. “It is our view that we will see an increased sharing of liquidity within regulated markets. The Canadian Poker Network – the first legal and regulated poker network in North America – has led the way and with 35 per cent of registrations being from first time players; this will without doubt be something that continues to develop.”
Regardless of the upheaval seen in the online poker sector, TableBrain’s President, Zvi Lando, sees only a promising, growing market as the US moves towards regulation, with companies like PartyPoker (which didn’t try to circumvent the 2006 bill) poised to take advantage. “Obviously, the brick-and-mortar casinos are taking significant preparatory steps, while some ventures, such as US Digital Gaming, are building anticipatory infrastructure. More proof of the forces in motion supporting this optimistic view lies with the recent all-time high levels of interaction between poker players and US government officials. For example, the Poker Player’s Alliance cites over 120 meetings with congressional offices in the aftermath of the government’s “black Friday” crackdown.”
Lando also thinks the overall weak world economy means barriers to online gaming will continue to fall away. “Countries need the tax revenue, and as poker becomes officially sanctioned and more accessible in previously closed markets, the numbers will surge.”
AFFILIATES
In the world of online casino affiliates, many think the largest obstacle the business will have to face in the next 12 months is affiliate program closure, acquisition and merger. Tom Galanis, Director at GameOn Affiliates, suggests: “The fight for traffic amongst affiliate programs is as fierce as ever, and there will be inevitable casualties. Affiliates need to be even more aware of the potential pitfalls of promoting casinos promising high commission structures and terms such as ‘no negative carryover’. There’s every chance that these casinos won’t exist under the same ownership - if at all - in a year’s time, and they’ll be left high and dry.”
Galanis believes that unless they wise up, a good number of decent affiliates will be put out of business in the coming year, resulting in the further narrowing of traffic sources for operators to compete for in a cycle that further emphasises that this really is a survival of the fittest. “The best affiliates and online casinos need to wise up and get sensible with their money and work together to move forward.”
