Our latest analysis examines which operators emerged as the top performers during the 2025 French Open. It utilises live trading data to assess their performance in terms of uptime, acceptance, overrounds and arbitrage exposure.

French Open Bet365 reigns king

Bet365 is the outright leader when it comes to suspensions, with the highest uptime and the lowest lost turnover percentage. Their combination of 96.1% uptime and just 4.5% lost turnover suggests highly responsive risk controls to maintain availability during long and unpredictable five-set encounters.

FanDuel, meanwhile, delivered the most efficient pricing strategy. They combined a competitive 4.8% overround with the lowest exchange arbitrage exposure of any operator at 5.2%. In an environment where pricing errors are quickly punished, this reflects both sharp lines and responsible market-making.

Pinnacle’s unique approach

Pinnacle remains a fascinating outlier. With an industry low 2.3% overround, it remains the most competitive in raw pricing and holds the second lowest exchange arbitrage rate at 6.8%. However, they also posted the lowest uptime by some margin at 77.9% together with the weakest acceptance uptime of 62.8%. Its approach is resulting in superior accuracy at a significant cost of turnover availability.

Unibet provides an unexpected contrast. Despite podium-level uptime at 94.4%, it suffers the highest lost turnover of any operator at 17%. This is more than the lost potential wagering of Pinnacle, whose uptime trails them by a full 16%. This suggests potential issues with their pricing, which in turn is negating the advantage of simply being online.

Reducing lost turnover needs more than just uptime

William Hill’s less-granular odds ladder allows it to avoid a significant number of rejected wagers with an excellent 88.2% acceptance uptime. That said, their unmatched downtime of 1.6% was the third highest in the field, suggesting a possible operational trade-off where less frequent pricing adjustments avoid bet rejection but increase periods of temporary unavailability.

DraftKings continued with an aggressive turnover strategy, which is evident in its solid 93.8% uptime and top half performance in acceptance uptime. However, with an exchange arbitrage rate of 14.9%, it was the most exploitable by a wide margin. This suggests its push to capture more live betting action may have come at the cost of pricing discipline.

Fanatics and Betsson fell into the mid-tier, with performance that neither disappointed nor excelled, while Ladbrokes and Bwin struggled to keep up across multiple metrics, particularly in acceptance uptime and lost turnover.

In a Grand Slam setting where bettor interest peaks, and play is drawn out over five-set marathons, trading desks must find the right rhythm between price agility and execution stability. As the best operators at Roland Garros weren’t just those with low margins, they were those who stayed live the longest while minimising risk.

Bettormetrics is a new, innovative company providing competitive sports odds intelligence and insight to the sports betting industry.

Our brand promise is to “revolutionise sports odds intelligence”.

Check out their previous analysis of the US March Madness tournament.

The in-depth report features exclusive insights from leading licensed operators including Betano, Sportingbet, EstrelaBet and Superbet, alongside commentary from influential stakeholders such as the National Association of Games and Lotteries (ANJL) and Loterj President Hazenclever Lopes Cançado. Their contributions provide a clear view of the regulatory, commercial and operational realities on the ground.

Supported by data and forecasts from H2 Gambling Capital, the report outlines the significant long-term potential of the Brazilian market, which is projected to hit BRL31 billion in online GGR by 2025, growing to BRL64 billion by 2030. It also examines the structural challenges that may impact growth, including ongoing illegal market activity, evolving KYC requirements and other complexities of regulation.

In addition to market sizing and regulatory context, the report places a strong focus on social responsibility, particularly around responsible gambling. With increased scrutiny on player protection and sector perception, licensed operators are actively collaborating with regulators to build a more sustainable and accountable betting ecosystem.

Whether you’re an investor, platform provider, operator or policymaker, A New Era in Brazil provides a data-driven foundation for informed decision-making in one of the most dynamic emerging markets in global gaming.

Download the report now by completing the form below to access exclusive operator insights, regulatory analysis and the data you need to shape your Brazil strategy.

Best March Madness uptime among betting sites

BetMGM led the field with a 90.1% uptime, demonstrating strong platform stability throughout games. Hard Rock followed closely at 88.3%, with BetRivers (86.8%) rounding out the top three. These operators proved resilient even during the tournament’s most volatile moments.

Despite the leading uptime, BetMGM suffered from its pricing strategy more than any other operator as it may have rejected up to 9% of business due to frequent price changes. The company spent 10.4% of the total fixture duration trading in potentially unprofitable positions (Off Market Time).

In contrast, ESPN Bet (74%) and Caesars (74.6%) struggled significantly with uptime. Such inconsistent availability directly impacted bettor experience and trust, particularly during tight, fast-moving college contests.

Sportsbooks with strong in-play acceptance and green time

Green time is where operators are both online and accepting bets. This metric was led by Hard Rock at an impressive 86.2%. DraftKings (80.9%) and BetMGM (79.7%) also performed well. These platforms maintained high availability during crucial moments, aligning operational performance with bettor needs.

With Hard Rock leading in green time while maintaining second-best uptime and market-leading off-market time, the data suggests it is taking profitable business more than any other operator. However, Hard Rock does so with a standoffish 7% overround and is potentially rejecting a lot of business due to frequent price changes.

Fanatics and ESPN Bet showed weaker performance in this metric, with green time scores of 72.5% and 71.4%, respectively. Caesars and Bet365 lagged the most, with Bet365 managing only 59.4%, a concerning figure in such a fast-paced sport.

Off-market time: Risk sensitivity in March Madness betting

Off-market time offers a look into how risk averse each operator is. Hard Rock (2.1%), ESPN Bet (2.6%) and DraftKings (3.8%) kept off-market periods relatively low, suggesting tight risk controls and a more consistent market presence.

On the other end of the spectrum, Bet365 posted a staggering 19.7%, indicating frequent removal of betting lines during uncertain phases. Considering that it also has the shortest average overround, this presents a pricing strategy of sharp prices at the cost of market presence, a clear outlier from the rest of the cohort.

Competitive overrounds and pricing strategy among online sportsbooks

DraftKings, BetMGM, Caesars and Bet365 all posted overrounds near or below 5.4%, maintaining competitive pricing likely aimed at market share. BetRivers and Hard Rock leaned toward higher margins at 7.5% and 7%, respectively, possibly trading off user acquisition for profitability.

DraftKings is the standout among operators with ~5% overround, combining top-tier uptime and one of the lowest off-market time figures. This balance between availability and competitive pricing provides a consistent presence with controlled risk.

With a slightly higher overround of 5.8%, Fanatics has pursued a strategy that has kept its pricing competitive while exhibiting the smallest gap between uptime and acceptance uptime. This implies relatively stable odds, yet it has also maintained a 5% off-market time.

Which operators managed risk the best?

Hard Rock emerged as a standout, balancing uptime, green time and low off-market periods while accepting slightly higher overrounds. BetMGM also performed strongly, although its higher off-market rate could be refined. DraftKings delivered a well-rounded performance with strong availability and low risk exposure.

At the other end, Bet365’s high off-market time and low green time undercut its relatively competitive pricing. Caesars and ESPN Bet also struggled with both availability and acceptance uptime, which may hinder bettor confidence.

However, ESPN Bet uniquely combined this with minimal unmatched downtime indicating that, although it suspends markets frequently, it is trading this uptime for justified caution.

In a tournament defined by momentum swings and unpredictable finishes, staying live and confident defines success. Operators that manage this risk while maintaining competitive odds will continue to gain an edge in this high-intensity space.

Bettormetrics is a new, innovative company providing competitive sports odds intelligence and insight to the sports betting industry.

Our brand promise is to “revolutionise sports odds intelligence”.

Best betting sites for uptime and stability

SkyBet edged out 888Sport and PaddyPower to claim the highest uptime in our cohort, reaching 93.8%. Due to their high uptime and relatively stable price lines, SkyBet also achieved the greatest acceptance uptime, allowing bettors to place wagers more consistently.

Conversely, PaddyPower’s progressive suspension strategy was undermined by its extremely sensitive price lines. The sensitivity of its price lines resulted in a higher frequency of price changes and a comparatively low acceptance uptime, affecting bettors’ ability to place wagers effectively.

Lost wagering and revenue impact on betting sites

Lost wagering is another critical metric, representing revenue leakage due to downtime or inefficiencies. Bet365’s uptime may be weaker in this market, but its lost wagering figure is best-in-class. This suggests that while Bet365 might not always be “up” it remains operational during the most crucial moments, where the highest Exchange wagering signals are recorded. Notably, Bet365 is the only operator in this sample that accepts wagering during penalties, further strengthening its competitive edge.

Arbitrage exposure and risk management in online betting

Arbitrage exposure remains a key challenge for many operators. While 888Sport posted strong uptime and arbitrage figures, it significantly outperformed its stablemate William Hill in every statistic except for its overround, which is the least competitive in the cohort. This suggests that while 888Sport maintains strong operational metrics, its pricing strategy may still need refinement.

Meanwhile, Unibet, despite having decent uptime and a competitive overround for a European operator, struggled in other areas. Its downtime and price fluctuations during uncertain periods of the game led to significant Lost Wagering and Exchange Arbitrage, raising concerns about risk management.

Betting margins and profitability strategies for sportsbooks

Margin strategies also varied across operators. Unibet and Bet365 offered the most competitive overround percentages at 5.9% and 6.0%, respectively, likely making them more attractive to bettors. Meanwhile, platforms such as 888Sport and SkyBet, with overrounds above 8%, focused more on profitability than aggressively competitive odds.

In summary, SkyBet and 888Sport excelled in uptime but must address lost wagering inefficiencies. Bet365 demonstrated strong control over arbitrage and lost wagering, positioning itself as a leader in operational stability, particularly during crucial match moments. William Hill faced challenges across multiple metrics, from uptime to lost wagering, indicating a need for strategic improvements. Unibet, while competitive in margin offerings, may need to reassess its arbitrage exposure to maintain long-term viability. Finding the right balance between uptime, lost wagering and arbitrage risk will be key to sustained success in this highly competitive market.

Bettormetrics is a new innovative company providing competitive sports odds intelligence and insight to the sports betting industry.

Our brand promise is to “revolutionise sports odds intelligence”.

The report offers valuable insights into esports betting, supported by industry-wide data gathered by Clarion. Industry experts have also provided their views for a 360-degree perspective of the topic. Esports odds provider Oddin.gg collaborated on the report.

You can read more esports news on iGB.

Top performers: Balancing uptime and arbitrage exposure

In such a competitive industry, achieving high uptime and minimising lost wagering are critical performance indicators. 888Sport, PaddyPower and Bet365 emerge as the leading platforms in terms of achieving consistently high uptime and minimising lost wagering opportunities. However, significant differences in their strategies raise questions about trade-offs.

Though 888Sport and PaddyPower achieve impressive uptime, they also spend a notable amount of time in arbitrage. This begs the question of whether they are striking the right balance between higher uptime and the risks associated with excessive arbitrage exposure.

While trailing 888Sport and PaddyPower in uptime, Bet365 demonstrates a strategic advantage during peak wagering windows. Its ability to remain open during high-demand periods minimises lost wagering without becoming overly exposed to arbitrage, positioning it as the best-in-class performer.

Addressing downtime and lost wagering

At the other end of the spectrum, SkyBet stands out for the wrong reasons. With an unmatched downtime of 2.8%, it ranks as the poorest performer in this analysis. This excessive downtime negatively impacts both platform availability and lost wagering, underscoring the need for significant performance improvements.

Diverging strategies within operator stables

A closer look at operators within the same corporate group reveals stark contrasts in their suspension and margin strategies. 888Sport and William Hill both sit under the Evoke umbrella, yet their approaches highlight differing priorities and risk tolerances within the same stable.

Similarly, the performance and strategies of BWin and Ladbrokes under Entain show striking similarities, suggesting a more unified approach to uptime, margin control, and risk management.

Competitive margins and arbitrage risks

Unibet stands out by offering the most competitive margin, with an overround of 5.8%. While attractive to bettors, this competitive positioning may come at a cost. The platform’s lower margins appear to contribute to an unhealthy amount of time spent in arbitrage, which could impact long-term sustainability.

In an industry where uptime, margins, and arbitrage exposure dictate success, finding the right balance is crucial. Platforms like Bet365 demonstrate the benefits of prioritising high-demand windows, while SkyBet’s performance challenges highlight the consequences of excessive downtime. Operators must carefully align their strategies to achieve consistent performance and minimise lost wagering opportunities.

Bettormetrics is a new innovative company providing competitive sports odds intelligence and insight to the sports betting industry.

Our brand promise is to “revolutionise sports odds intelligence”.

Market overview

The igaming industry continues to experience a dynamic shift in its talent landscape as companies adapt to evolving market conditions, regulatory changes and emerging technologies. Across departments, from tech and data to marketing, compliance and customer service, key trends have emerged that underscore the challenges and opportunities in hiring and retaining talent. As companies navigate a more cautious economic environment, their approach to recruitment reflects the need for strategic planning, flexibility and a focus on specialist skills.

Cautious optimism and strategic hiring

After a period of consolidation and reflection, 2024 has seen renewed hiring activity in many areas. While companies remain prudent with budgets and are more deliberate in their hiring processes, there is a growing focus on securing mid to senior-level professionals who can drive growth and support new market expansions. This trend is evident across tech, data and product roles, where experienced candidates are essential for building new brands and integrating advanced technologies like crypto gaming.

The demand for talent has also highlighted a shift in compensation strategies. While overall salary growth has slowed compared to the rapid increases seen during the pandemic years, companies are willing to offer competitive salaries for candidates with in-demand skills, especially in senior positions. This is particularly true for tech, data and C-suite where flexibility around compensation is key to attracting top-tier talent. In contrast, some areas like finance and operations have seen a tightening of budgets, making it more difficult to attract the necessary skills without creative benefits packages.

The evolving role of flexibility

Workplace flexibility remains a central theme in the igaming sector’s talent strategy. Fully remote roles, particularly for tech and data positions, continue to attract high-quality candidates who see no reason to be on-site. However, there has been a shift towards hybrid work models, which are becoming standard for many departments.

Employers recognise the benefits of in-person collaboration but must balance this with the strong preference among candidates for flexible work arrangements. Those who insist on full-time office attendance often struggle to attract the best talent, especially in areas where remote work has become the norm.

Regional talent pools and emerging markets

The global nature of the igaming industry means that companies always need talent with local knowledge and skills. There is a steady demand for professionals with native language skills, particularly for customer service roles where Dutch, Finnish and Swedish speakers are highly sought after. And as new brands launch in new markets, such as Brazil, igaming companies need to hire country managers with local expertise. Meanwhile, demand for qualified legal, compliance and finance professionals in key jurisdictions has grown in response to regulatory updates, although the overall volume of hires hasn’t increased significantly.

In summary, consolidation and budget constraints have limited salary increases, impacting the ability to attract top talent and affecting overall hiring quality. For many companies, this has led to additional challenges in performance, retention and succession planning. To overcome these issues, a focus on long-term human capital strategies is essential, including targeted hiring, robust leadership development and innovative compensation models that align with both market conditions and employee expectations.

Darren Kirby

Jump to: Salaries by function and role

Managing directors and C-suite

Analytics and senior developers

Legal and compliance

Customer services

Product and project

Marketing

Finance and operations

Sales and account management

Technology

Managing directors and C-suite

Across the igaming industry, the most wage inflation has been seen at the C-suite level, with salaries rising by double figures. This increase reflects the strong demand for seasoned leaders with a proven ability in shifting market conditions.

Companies are willing to invest in executives who can not only guide them through uncertainty but also unlock new opportunities for market expansion and drive value realisation in emerging and established markets alike. Regulatory change has also been a catalyst for geographical expansion, with LatAm, MENA and Canada seeing significant movement.

However, as highlighted by my colleagues elsewhere in this report, succession planning is often overlooked and is often cheaper than hiring. Many companies could be doing more to support their future leaders and ensure a pipeline of talent ready to step into key roles, safeguarding continuity and long-term stability. 

Andrew Cook

Analytics and senior developers

Demand for data analytics roles, particularly for mid-senior professionals like BI developers and quant analysts, has increased in the second half of 2024. These roles require expertise in algorithmic work and data application, beyond basic analysis.

With a growing pool of candidates with igaming experience, salaries have risen by 4.32%, to reflect their value. Remote work remains a key draw for candidates, making fully remote roles essential for attracting top talent, while employers insisting on in-office struggle to compete. 

Chris Gyere

Legal and compliance

The compliance and legal talent market remains cautious, with no significant increase in hiring and below average salary increases at 1.50%. However, demand has grown for professionals with specific experience such as in more exotic licences, particularly within privately-owned companies.

In Europe, regulatory clarity has led Tier-1 and mature SMEs to split legal and compliance functions, adopting a more robust ‘three lines of defence’ model approach.

Overall, companies are focusing on working smarter rather than adding headcount, but demand remains steady for expertise across multiple jurisdictions as they launch in new markets. Succession planning and retention are key challenges, as limited pay rises and a push for full-time, office-based work have led to increased attrition and difficulties in building the niche skillsets the industry requires. 

Kerry Gillitt

Customer services

Demand for customer services roles remains steady, with a particular need for native language speakers. In Malta, Dutch, Finnish and Swedish speakers are highly sought after, while German is also in demand but less niche.

For game presentation roles, Vietnamese, Thai and Indonesian speakers are increasingly needed. Employers are open to hiring candidates from outside the industry for junior roles, especially in new markets like Brazil. However, screening challenges and dissatisfaction with salaries, which are down 0.26% globally, persist.

Lucky Shankar

Product and project

Demand for product and project professionals is steadily increasing, particularly for senior managers and product leaders who can lead the development of new products emerging in the space. Flexible working arrangements remain a key factor, with companies recognising their importance in attracting the specialised skills they need.

This has given candidates greater accessibility to opportunities, intensifying competition among businesses to secure top talent. In response, companies are enhancing their compensation packages and speeding up recruitment processes. 

Olly Dendy

Marketing

Demand for marketing roles remains steady, particularly for mid-senior professionals, with a consistent number of candidates open to new opportunities. This year, we’ve seen increased interest in web3, crypto and AI editing roles, alongside specialists in Telegram for crypto casinos.

Content roles, including video, writing and streaming, are more varied. Country manager roles have also grown as operators launch new brands in new markets. Salaries are relatively stable but vary based on factors like remote or hybrid setups, B2B contracts versus PAYE and local market conditions.

Candidates increasingly consider brand reputation when negotiating, forcing some companies to offer more competitive compensation. Employers seeking candidates within tight salary bands sometimes struggle to find the right expertise.

While senior roles may welcome talent from outside igaming for fresh insights, mid-level hires often require industry-specific experience, especially around regulatory knowledge, such as new UKGC advertising rules.

Gareth Mulley

Finance and operations

Mid-level finance and operations roles are highest in demand, but tighter budgets have led to a 10%-15% drop in offered salaries, making it challenging for companies to attract the talent they need.

Salary ceilings for roles up to senior associate level are impacting hiring quality. Overall salaries have only risen by 1.25% since last year. In Europe, updated AML requirements mean candidates must hold ACCA qualifications, with Malta currently experiencing significant demand for fully qualified talent.

Amid budget constraints, employers may need to reconsider the push towards fully in-office and entice qualified professionals with hybrid and flexible working. 

Kerry Gillitt

Sales and account management

Business development managers remain in high demand, especially mid-level roles with salaries around £60K-£80K, where deep product knowledge and strong networks are crucial for new market entry.

Demand has surged in Europe for candidates experienced in crash games. While salaries have seen modest increases, typically £5K-£10K for those changing roles, fewer senior positions are available as companies manage tighter budgets. Flexibility remains key, with many roles involving extensive travel. Hybrid or remote options continue to give employees a competitive advantage. 

Karl Harenburg

Technology

Since July, demand for senior tech roles has increased, reversing a quieter period over the past 12 months. While junior-level hiring remains limited, many companies are open to mid-level hires, investing in training to develop their skills. This renewed confidence follows a period of consolidation, where companies reassessed their plans. Now, market expansion is back on the agenda, with new entrants, particularly sweepstakes and crypto casinos, building out their tech teams. 

Specialist skills are in high demand, especially those with expertise in crypto gaming, particularly CTOs and lead frontend developers. As competition for senior tech talent intensifies, salaries are rising incrementally, reflecting the need to attract top-tier candidates. While lower-end salaries have dipped slightly, compensation for senior roles has increased in line with the demand for specialist knowledge and igaming experience.

Remote work remains a strong preference, particularly for B2B tech roles, but there is a gradual shift towards hybrid models. Many employers recognise the value of flexibility, balancing remote options with the benefits of on-site collaboration. Market expansion into new regions has also prompted companies to consider talent from adjacent industries, bringing in lead developers who can adapt quickly to the unique challenges of igaming. This strategic approach to hiring is helping companies secure the expertise needed to support their growth ambitions.

Chris Gyere  

salary survey 2024

Europe

North America

Latin America

Rest of World

Jump to: Salary Survey country snapshots

Brazil

Curaçao

Cyprus

Estonia

France

Gibraltar

Malta

UAE

UK

USA

Salary Survey regional snapshots

Europe

The ACCA qualification has become essential across Europe due to updated AML requirements – without it, job prospects are limited. Romania benefits from stable hiring driven by Bucharest’s thriving tech hub. The UK Gambling Act review remains in limbo, with key regulations still pending. Meanwhile, France has seen a regulatory overhaul, transforming a previously limited market into a more structured environment.

North America

Some US states have seen major operators exit, allowing larger competitors to seize market share, yet optimism and growth persist. In Canada, Ontario’s newly regulated market has exceeded growth expectations, showcasing strong potential. Alberta’s market, although planned for regulation, faces delays. Despite these hurdles, the region remains dynamic, with new opportunities on the horizon.

Latin America

As one of the fastest-growing markets, Brazil’s job market is flooded with applicants, creating a large talent pool. However, this has created challenges in identifying top talent; local agency screening processes need refinement as applications remain high. With little local igaming talent, companies are open to hiring from outside the industry. Colombia, the first regulated market in the region, generated £1.9 billion in Q2, contributing to a 2.1% GDP growth. Elsewhere, Peru has recently opened its regulated market and is seeing a surge in licence applications.

Rest of the World

Despite being a global gaming powerhouse, Asian igaming remains largely untapped due to restrictive regulations. India continues to be one of the fastest growing igaming markets in the region and is expected to rise further. South Africa aims to legalise all forms of online gambling with a new remote gambling bill, potentially expanding beyond sports betting and opening new avenues for growth.

Salary Survey country snapshots

Brazil

With 182 betting licence applications already confirmed, the industry eagerly awaits developments in this promising market.

Curaçao

A surge in online gambling applications suggests this Caribbean island may become a major player in the sector.

Cyprus 

Igaming companies continue to establish operational hubs here, attracted by lower costs and the ease of finding igaming talent.

Estonia

With significant revenue growth and favourable tax rates, this Baltic state is becoming a market to watch.

France

A long-awaited online casino amendment has been put forward by the French government sparking a regulatory shift in this significant market.

Gibraltar

High property demand and limited talent supply makes hiring junior positions in this territory a challenge.

Malta

Relocation to this Mediterranean igaming hub thrives, yet candidates are cautious, expecting competitive salaries before making the move.

UAE

A popular base for Middle Eastern operations, the awarding of the first casino licence could pave the way for further opportunities.

UK

Progress on the UKGC white paper remains slow, but the financial risk assessment pilot has accelerated the need for broader implementation.

USA

Despite early optimism, no new states legalised online gambling this year, with major operators fiercely competing in established markets.

salary survey 2024

While there has been a growing focus on improving representation, particularly around race and gender, true DEI extends far beyond simply diversifying demographics. It’s about cultivating an inclusive culture where everyone, regardless of their background, can thrive.

Embracing belonging

Representation is an essential first step – ensuring that employees of all races, genders, sexualities and abilities are seen and heard within the industry. However, a diverse workforce means little without a workplace environment that promotes belonging.

Inclusive practices must accommodate physical disabilities, neurodiversity and the unique challenges of individuals with varying needs, such as health, life stages and belonging to underrepresented communities, including LGBTQ+ employees.

To truly make progress, igaming companies must shift their focus from short-term initiatives and token efforts to embedding DEI into the very fabric of their organisational culture and employer branding. This requires long-term commitment, where inclusive leadership, equitable opportunities for career advancement and encouraging open dialogue are everyday priorities.

DEI in gaming is more than just numbers

Genuine inclusion cannot be achieved with one-off programmes; it requires systemic change and industry-wide acceptance of DEI as an ongoing journey.

Building a culture of inclusivity means creating spaces where employees feel valued for their unique perspectives and are empowered to contribute fully. By prioritising this holistic approach to DEI, the igaming industry can not only attract and retain diverse talent but also inspire innovation and drive long-term success in a competitive market.

In short, DEI in igaming is about more than just numbers – it’s about creating environments where all employees can reach their full potential.

salary survey 2024

Demand for senior and mid-level talent

Senior and mid-level roles remain in high demand, especially for product managers, developers and data analysts. Companies prioritise expertise that drives product development and innovation.

Business development managers (BDMs) and director-level positions are also sought after. These positions emphasise niche experience and strategic leadership, crucial for navigating market dynamics and growth.

Salary growth slows

While overall salary growth has slowed, companies still offer higher compensation for mid- to senior-level roles, reflecting the value of experience. However, there is less flexibility for junior roles, the iGB-Pentasia Salary Survey found. This trend suggests a market that rewards expertise but is cautious about overall cost increases, ensuring sustainable operations while still attracting skilled talent.

Remote fizzling out

Hybrid work is now the norm, with fully remote roles less common outside of tech and data positions. While tech candidates prefer fully remote options, other departments are moving to hybrid models, requiring proximity to an office. However, companies insisting on full-time office work face challenges in attracting talent, highlighting a preference for flexibility.

Caution in hiring and longer processes

Businesses are adopting a more cautious approach to hiring, leading to longer recruitment processes. Tighter budgets and conservative post-pandemic strategies are driving this trend, potentially impacting talent acquisition as companies take time to align with long-term goals and manage the challenges of succession planning.

Demand for data and tech talent

Demand for these roles remains strong, especially for frontend developers, BI developers and data scientists. Skills in web3, crypto and data algorithms are particularly sought after. As the integration of crypto with gaming gains importance, companies are seeking talent that can bridge the gap between technology and emerging market trends, driving innovation and competitive advantage.

Retention and succession struggles

Succession planning and retention are critical challenges for igaming companies, as they struggle to maintain leadership continuity and keep top talent engaged. Effective strategic human capital management is essential to navigate these complexities, ensuring that businesses can adapt and grow with stability. 

Many companies are addressing these challenges by partnering with human capital experts, such as Conexus Human Capital, which provide specialist services like talent strategy consulting, organisational design and executive coaching. These services help organisations create a clear path for leadership development and build a work environment that attracts, develops and retains high-calibre talent, positioning them for long-term success.

Read Alastair Cleland’s introduction to the iGB-Pentasia Salary Survey 2024

Check back tomorrow, when we dig into DEI and showcase the hottest hiring markets globally.

salary survey 2024

Our survey provides valuable insights into trends shaping today’s market, from salary levels to the key drivers influencing talent demand. This report not only tracks changes but also highlights strategies and opportunities that will guide igaming companies toward sustainable growth in the years to come.

As the front cover headline reveals, salaries have stabilised for the past two years, aligning more closely with inflation. Last year’s increase of 3.98% and 2024’s 3.33% mark a departure from the significant salary growth witnessed between 2020 and 2022, a period defined by the pandemic’s impact.

As anticipated in last year’s report, this stabilisation has created a more sustainable environment, allowing igaming companies to implement their strategic objectives – such as market expansion – within a framework of more predictable costs.

Opportunities in LatAm

However, while stability characterises the broader market, certain regions and sectors remain highly competitive. For instance, the race to establish a foothold in South America continues to drive fierce competition.

Brazil, with numerous applicants for its new licence, is aggressively shutting down black market operators. Its regulatory landscape mandates specific roles, guaranteeing growth and employment in the region. As a result, experienced candidates for in-demand positions can expect to be well compensated.

Colombia, the first country in the region to regulate igaming, reported £1.9 billion in revenue in Q2, alongside 2.1% GDP growth. These trends signal sustained opportunities in LatAm.

Meanwhile, some major operators have faced challenges in the United States, where strategic alignment with the right markets has become essential for success, underscoring the need for a well-considered approach to market expansion.

iGB-Pentasia Salary Survey: Growing focus on DEI

Globally, demand for top talent remains strong, the salary survey shows. Today’s igaming companies require creative, innovative professionals who bring diverse perspectives. Diversity, Equity and Inclusion (DEI) has become crucial, as companies recognise that a successful human capital strategy must embrace different voices and experiences.

We have taken the opportunity in this report to highlight the role of DEI in driving successful outcomes, reinforcing its importance as a cornerstone of strategic talent management.

I want to extend my sincere thanks to everyone who contributed to this year’s survey, including those who took the time to share their experiences and our industry experts who have analysed the data and offered their perspectives. Your insights make this report possible and we hope it serves as a valuable resource for navigating the future of the igaming industry.

salary survey 2024

But for consumers, gambling is a money-losing proposition with potentially life-changing consequences. And online casino, researchers wrote, caused more “irresponsible” behaviour than online sports betting.

“On the downside, increased accessibility and participation can lead to higher rates of problematic gambling behaviour,” the authors wrote.

Tracking online gambling spending habits

In particular, data from a subset of 250,000 online gamblers in Canada revealed that 43% spend above the recommended 1% of their salary on betting. Further, 5.3% spend more than 10% of their income on gambling and 3.2% spending more than 15%.

The study took place over five years, from 2019 to 2023, and potential gamblers were identified by tracking consumer credit-card purchases. During that timeframe, online sports betting (OSB) downloads grew from six million to 33 million. Researchers looked at consumers who transferred money in or out of gambling accounts and whose first transaction was a deposit. Researchers tracked 41 gambling sites.

While the tracking method allowed researchers to determine how much bettors spent in a month or year, data is not detailed. It was not possible to determine if deposits were used for daily fantasy, digital sports betting or online gambling. Further, researchers could not track the frequency or “intensity” of betting.

Researchers also did not gather significant demographic information other than income and spending habits. The online gamblers who were studied, “as one would expect”, earn more than the average American. According to the study, the mean US household income is $106,400 while online gamblers have a mean income of $130,096.

OSB transaction habits revealed

Among the findings:

• The average bettor made 21 transactions – 18 of which were deposits
• The average deposit total was $1,375
• The average withdrawal was $742
• DraftKings and FanDuel are by far the biggest operators in the US in terms of deposits. BetMGM, BetRivers and TVG rounded out the top five
• The value of wagers placed between 2019-23 grew 14-fold
• Taxable revenue during the study period grew 18-fold
• Researchers also examined the National Council for Problem Gambling (NCPG) helplines and Centers for Disease Control (CDC) suicide data. As more and more states legalise online gambling, it is not surprising, researchers wrote, to see a rise in calls to gambling hotlines. They did not see a spike in suicide rates, writing, “none of the time series show unusual increases in that visually correspond to OSB policy date changes”
• Calls to hotlines appeared to rise dramatically beginning in 2021, according to the research. That year, five states, including Michigan, the 10th biggest US state by population, and Arizona, the biggest legal betting state in the west, launched digital sports betting. In 2022, five more states came online, including New York.

As the online casino games segment there remains largely uncharted territory for many, our seventh Slot Trumps report serves as an essential primer, shining a light on key trends and player behaviours.

Internet penetration in Nigeria

The Nigerian market is generally characterised by lower internet penetration (42%), compared to the previous markets in our Slot Trumps reports, with an average of 89% in Europe and 68% in LatAm markets.

Nigeria also showcases lower bandwidth both compared to African markets, ranking towards the lower end among the 15 leading markets on the continent, and when compared to previous igaming markets we have analysed in Europe and LatAm.

This trend, however, is rapidly reversing with Nigerian mobile internet users increasing 20% in 2024 compared to 2023, according to Statista.

This creates a particular setting for the igaming industry in Nigeria. First, operators need to look towards lightweight online casino games. These need to be optimised for low data consumption, and work with limited network speeds. It’s also essential to cater for lower-end devices and browsers, ensuring audiences are kept entertained without latency.

Our internal data confirms that game providers choose different approaches to tackle this particularity. Some, for example, offer games with and without sound to decrease the size of the game. Others choose to focus on creating games for African markets that are smaller in size from the very start.  

Slot Trumps Nigeria: Early-stage player behaviour

So, does this impact player behaviours in Nigeria? We take a detailed look in our Slot Trumps Nigeria report.

Within our early-stage data in Nigeria, we observed some unique player behaviours and wagering trends. One that stands out is that players generate the lowest average bet of our series so far across the top 20 games within our SlotMatrix network.

According to our Slot Trumps Nigeria report, players spend an average of €0.24 per spin across the top 40 games. This is markedly less than the global average bet of €1.

Correlated with their preference for low volatility games, Nigerian players have yet to transition their real-money habits from sports betting to online casino.

This can be correlated with the market’s current levels of internet penetration and bandwidth. It may well be that when these areas improve for the general population, the appetite for online casino games will gain increasing traction.

Despite the lower than average spend per spin, bonus features hold plenty of interest. This can easily convert players across verticals. In-game free spins (55% of top 20 games) are a great example. The same for jackpots (35% of top 20 games). We also recommend looking at more enticing options such as buy features.

As the most common bonus feature, in-game free spins offer Nigerian players more in-game time, which can be correlated with the large number of sessions within our 90-day dataset timeframe.

As the market develops, we anticipate that lower average bet sizes will also be boosted considerably. This will be driven by more online casino brands, more vendors and a far greater range of content.

Slot Trumps strategies to gain instant Nigeria market share

Tailoring content to local tastes and behaviours is paramount for success in Nigeria. Get this right, and the market will hold great potential. As things stand now, however, operators also need to consider content localisation in terms of game mechanics and size.

They also need to opt for a mobile-first strategy to ensure audiences enjoy the best possible online casino experiences. Of course, the constraint there is the market’s technologically limited framework. However, if you focus on that now, you will also be preparing for the market of tomorrow.

Want to know more? Our SlotMatrix experts can help operators aiming to launch in Nigeria or expand operations. We will help develop the optimal content mix to drive early revenues and capture instant market share.

Understanding the Nigerian online casino player

As the industry’s largest igaming aggregator, EveryMatrix holds the data and access to early-stage player behaviour trends. This helps our partners understand player preferences and cultural nuances before entering new markets. Nigeria, of course, is a key example of this.

Access to this data is as vital as it can be surprising. For example, among the top five most popular game themes in Nigeria is Asian themes, alongside Classic, Animals, Fruits and Action.

In markets such as Nigeria, flexibility is crucial as player behaviour and trends rapidly evolve. Remaining agile to capitalise on the market’s opportunities should involve adapting your content offering. You should also think about how to add more layers of excitement and fun for local audiences. Gamification is a great example. Player engagement with gamification tools such as tournaments and tiered challenges are easy wins for acquiring more local players.

Home to some 650 million people, and with a total gambling market projected to reach $30bn annually by 2028, all eyes are on LatAm in what will no doubt be this decade’s biggest growth opportunity.

As regular readers of iGB will know, a long and occasionally fraught process to regulate gambling in Brazil came to a close in December 2023. With the signing of Bill 3,626/2023 into law, we’re about to see one of the most hotly anticipated markets come online after more than a decade of parliamentary process.

What’s in the iGB LatAm gambling report?

Of course, Brazil is the big opportunity in the region, but we’re covering far more in our first LatAm report.

Longstanding regulated territories such as Mexico and Colombia are examined in depth. We also profile the patchwork of regulation in Argentina as well as bringing you the latest on two emerging stars: Peru and Chile.

We see the former as a serious dark horse in the region – the country already has an established regulatory framework and it’s quickly growing in prominence. With a population of 33 million, Peru looks set to be the third biggest market in LatAm and recently received 145 licence requests in just 30 days. 

Produced in partnership with Sportingtech, the iGB LatAm report aims to provide a foundational understanding of key developments on the continent. By teaming up with our friends at H2 Gambling Capital, we’re also able to provide a data-driven vision for the future, in what we hope will be the first of many reports on the region.

To access the report, simply fill out your details below. We hope you find it useful.

LatAm is undoubtedly the hottest market in gaming today. Currently home to more than 650 million people, its total gambling market is expected to reach $30bn by 2028. To bring you all the latest developments, we’ve partnered up with local experts Sportingtech to offer an unparalleled view of the market.

Of course, ushering in our report is the end of a long and occasionally fraught process to regulate sports betting in Brazil. Ultimately concluding in December 2023 with the signing of Bill 3,626/2023 into law, wagering and igaming are in the mix with the government embarking on a four-step phase to finalise regulatory requirements.

Due to complete by July, it will end a process that began in earnest in December 2018. That month outgoing president Michel Temer signed legislation paving the way for congress to develop and enact sports betting regulations. Two presidents later and the market is finally poised to open.

What’s in our LatAm gambling market report?

The report, which will be released tomorrow (25 April), will cover everything from Brazil to the emerging regional contenders.

With longstanding regulated territories such as Mexico and Colombia covered in depth, we also profile the patchwork of regulation in Argentina, as well as the latest on Peru and Chile as two emerging stars. We see Peru as a serious dark horse in the region; the country already has an established regulatory framework and it’s quickly growing in prominence. With a population of 33 million, it looks set to be the third biggest market in LatAm and recently received 145 licence requests in just 30 days. 

Not that the opportunities end there. Other territories not covered in this LatAm gambling report, such as Uruguay and Paraguay, are likely to feature in future editions.

In partnership with Sportingtech, the report aims to provide a foundational understanding of key developments on the continent. By teaming up with our friends at H2 Gambling Capital, we’re also able to provide a data-driven vision for the future, in what we hope will be the first of many reports for on the region. Look out for it tomorrow.

The Special Administrative Region (SAR) of Macau covers around 32.9 square kilometres of land and is home to approximately 680,000 inhabitants. Gambling has been permitted in the territory since 1849, while it was under Portuguese rule, but it only began to emerge as a key gambling destination from 1962 onwards, once Sociedade de Turismo e Diversões de Macau (STDM) was granted a monopoly.

This heralded an influx of traffic from Hong Kong, among other places. But it was not until 2002, when STDM’s monopoly ended and the likes of Las Vegas Sands, Wynn Resorts and MGM Resorts International moved in, that Macau began to surpass Las Vegas as the world’s leading gambling destination.

Surpassing Las Vegas

It was 2007 when Macau’s gaming revenue first surpassed that of Las Vegas, and the gulf between the two locations has grown ever since. By 2019, Macau’s revenue stood at MOP292.46bn (£25.82bn/€30.08bn/$36.60bn). In the same year, Nevada and Las Vegas reported gaming revenue of $12.03bn.

The two locations are very different. In Vegas, gambling is complemented by a host of other amenities and entertainment options, to the point that gaming is only one of a number of revenue streams. Research by the University of Nevada Las Vegas suggested that gaming made up 34.4% of Las Vegas Strip revenue in 2019.

Macau, on the other hand, is dominated by gaming. The industry accounted for 50.9% of Macau’s gross domestic profit in 2019 and, within that, non-gaming revenue totalled MOP33.74bn, or 10.4% of total industry revenue.

So when its casinos were forced to shut, and travel from the Chinese mainland restricted until September last year, it had a huge impact. Revenue was down 79.3% to MOP60.44bn ($7.56bn) in 2020 as a result, meaning that Nevada, with full-year gaming revenue of $7.87bn, actually surpassed Macau.

Unlike Nevada, which posted its first monthly total of more than $1bn in April this year, Macau’s recovery from the pandemic has been slower. Yet confidence in Macau’s long-term prospects does appear to be significantly higher. Its licensees have a solid financial footing, properties are not having to rapidly hire new staff and it has a huge Chinese market just a ferry ride away.

Gambling dependency

That being said, its dependence on gaming remains a potential problem. Last April the SAR’s chief executive Ho Iat Seng warned that the shutdown caused by Covid-19 highlighted Macau’s over-dependence on gambling.

“With the outbreak of the novel coronavirus, the gaming and tourism industries registered significant declines, with profound impact on industries connected to these areas,” Ho said. “This demonstrates, once again, the vulnerability and the enormous risks of the Macau economy’s excessive dependence on gaming and tourism industries.

“The healthy and stable development of the gambling and tourism sector will continue for a certain period of time and will be the basis of the continued stability of the economy of Macau. Nevertheless, if the monolithism of the industrial structure remains unchanged, it will inhibit the sustainable development of Macao’s economy.”

Operators’ gaming concessions are due to expire in 2022. Potential updates on how Ho’s administration plans to tackle the renewal process may even come this year.

This means the onus is on the industry to show how it will look to diversify and expand the range of services and products it offers both today and for the future. Anything approaching a Vegas-style revenue split seems to be more of a pipe dream, however.

The following report aims to cover all of these elements in detail, explaining why Macau has developed into such a key industry hub. It will explore who visits and how it will develop in future. My thanks to Alidad Tash, Chris Wieners and Annie Siara for their valuable contributions.

To say the review has been much anticipated would be an understatement. Industry trade bodies, operator groups and industry critics alike have waited eagerly for the white paper’s publication.

It has been an eventful two years and four months since the UK government announced the review – one that has encompassed the resignations and appointments of two prime ministers, the declaration of a cost of living crisis and Russia’s invasion of Ukraine.

While the white paper document outlines much of what the industry expected, it contains a few unexpected additions – including the addition of a gambling ombudsman, to give customers one point of contact for industry queries.

This morning, Lucy Frazer, secretary of state for the Department of Culture, Media and Sport (DCMS), outlined five of the key terms included in the white paper, most of which had been speculated upon for some time.

Read below for the terms in full:

Affordability checks

• Players who lose £1,000 within 24 hours, or £2,000 over a period of 90 days, will be subject to detailed checks on affordability
• Operators will now have to perform “passive” checks on players who have a net loss beyond £125 each month, or £500 per year

A consultation on stake limits

• DCMS wishes to implement a stake limit on slots, and will conduct a consultation on this limit being between £2 and £15 per spin
• Lower thresholds are set to apply to new accounts
• Proposition that triggers for more enhanced checks should be halved in relation to 18-24-year-olds, as they are more likely to be at greater risk for gambling harms

New funding for RET

• A mandatory statutory levy will be paid by operators to the GB Gambling Commission, which will fund research, education and treatment (RET) for gambling harms
• DCMS consultation on design and scope for this will take place in summer 2023

An ombudsman for dispute resolution

• Creation of an operationally independent gambling ombudsman to address complaints from players
• Information collated by the ombudsman will allow the GB Gambling Commission to enact more targeted enforcement activity, and help the industry to support vulnerable groups
• Committment to the ombudsman will initially be voluntary. However, if the idea of an ombudsman is not well received in the industry, DCMS will legislate to prove its necessity

Supporting the Gambling Commission

• The Commission will undertake a review on updating design rules for online games, which will review “intensifying features” that can enhance risk
• Further, tougher restrictions on VIP schemes to protect those susceptible to gambling harm
• A review into the Commission’s fees in 2024, to ensure it has the resources to act on the white paper’s proposals
• The regulator will reinforce expectations for licensees operating white label casinos for a third party brand
• Regulation for prize draws and competitions will be explored

Easing land-based restrictions

• Ban on under-18s using category D gaming machines, also known as fruit machines
• DCMS will work with the Commission to create consultation options for contactless payments, after considering the effect this could have on player protection
• Commission will consider changing its age verification slogan for land-based licensees – “Think 21” – to “Think 25”
• Casinos will be permitted to offer sports betting at their premises
• Limits on the number of slot machines in larger casinos will be eased, at a 5:1 ratio for slots to table games
• Smaller casinos will be able to host extra machines on a pro-rata basis, with the number determined by their size and non-gambling floorspace

Advertising measures

• The Commission will conduct a consultation on new proposed controls for customers, including the ability to opt-in for online bonuses and other online gambling offers
• Informational messaging on gambling harms will be made stronger and more effective

Tackling the black market

• Currently, there is a voluntary agreement in place with payment providers, in which illegally-operating gambling websites are blocked. DCMS is looking to give this statutory backing, meaning that the Commission would be allowed to apply for a court order to force providers to block these sites

As the report makes clear, government, regulators, brands and investors have seen the power of esports and video games to not only stand strong during the pandemic but also be a driver for jobs, investment, the economy and so-called soft power.

Elsewhere, the report looks at some of the most significant regulatory developments of the past year, in particular in the US, Europe and China, and offers a glimpse of what that could mean for other regions that may follow suit.

It also sheds light on mobile gaming and two long shots: virtual reality/augmented reality-based (AR/VR) esports, and blockchain gaming-based esports.

Esports report 2023: Moving closer to maturity, still room for growth is available to read below; interested parties can also download a pdf version by clicking on the icon.

The fifth anniversary of the Supreme Court striking down the Professional and Amateur Sports Protection Act (PASPA), paving the way for legal betting in the US, is fast approaching. 

Over this time there has been a wholesale reshaping of the US gaming sector, with mobile betting racing across multiple states, and a pandemic arguably accelerating rather than slowing its spread.

What next for the market?

It’s against this backdrop that H2 Gambling Capital, in partnership with iGB, is looking at what’s next. As the pace of new state launches slows, where is growth coming from? 

For a sector in which a small cohort of brands tend to occupy podium positions in each state, there is there is perhaps more scope for upheaval than many would think. Over time, as markets  such as the UK, Australia and Italy show, dynamics – and market leaders – can be knocked off their perch.

Generating higher returns from US betting

There’s also significant potential for growth in existing markets. Bonusing may be skewing gross win figures, and greater adoption of in-play wagering (or its rapid-fire cousin, microbetting) may allow operators to drive higher returns, and market share, from maturing states.

This, of course, will be complemented by major new states – in 2023, H2 predicts that 20% of new gross win will come from just two: Massachusetts and Ohio.

A $23.2bn market by 2030

When H2 produced its first sports betting white paper with iGB back in 2019, we looked at what the US market might look like in 2030. Thanks to a period of rapid acceleration in the four years since our inaugural report, our projection for US sports betting gross win is now $23.2bn by that year. 

For a market that exceeds expectations, there’s still plenty more to come.

H2 Gambling Capital is widely recognised as the leading authority regarding market data and intelligence on the global gambling industry. Our team of analysts have been tracking the value of the sector since 2000.
The intelligence generated by H2’s industry forecasting model has become by far the most quoted source regarding the sector in published company reports, transaction documentation and sell-side analysts’ notes, as well as in the trade/business media.
The H2 Subscription service is used by the vast majority of the sector’s operators and suppliers; its major financial institutions, governments and regulators; and also, its media outlets in their benchmarking of performance to shareholders.
H2 North America is a new subscription service to cater for those specifically focused on the North American market. 
H2 North America offers detailed data going back to 2003 / forecasts going out to 2027 on all aspects of the land-based and online gambling market, including detailed by-state monthly market share of the sports betting / igaming market, and financial models / news flow of over 80 companies across the gambling space. This new product also includes monthly and quarterly reports specifically focused on the North American sports betting and igaming market.

H2 is the lead data partner of Clarion Gaming and iGB.

As well as the pure legalities, we reveal what gaming companies should consider culturally to enter these hugely promising new jurisdictions.

We also look at emerging technology, review tribal bingo and Florida’s new regulatory regime. Plus we ask just why are financial penalties in the UK so high!

Anyone in the industry could tell you that the grey market in Canada’s largest province had been thriving for quite some time.

Still, bringing the province from grey to white offers certainty and new opportunities for many.

Six months on, we have a sense of the spoils available. Operators – excluding the lottery – brought in a combined CA$267m in the three months ended 30 September.

The biggest challenge in the province, however, may be marketing rules. Operators can offer bonuses, but may not promote them. As Marese O’Hagan writes in our progress report, that’s been difficult, but it hasn’t seriously dampened excitement about the jurisdiction.

And for now, those complying with the rules still need to compete with some unlicensed brands, which continue to do business in Ontario. How will that change going forward, as the province moves out of its transition period? We have a piece from Segev LLP examining that exact question.

Finally, Ontario represents the first Canadian province or territory to open up a licensing system for igaming. Could others follow suit? So far, there’s been little progress in that area, but if Ontario proves to be a success, that could change.

The July edition of IMGL Magazine also has regulatory updates from the European Commission, Ontario and Macau as well as an in-depth look at the choices facing voters in what has the potential to be the world’s biggest new sports betting market: California.

Online Choice Architecture may not be the most common phrase ever to trip off the gaming lawyer’s tongue but it marks the next potential frontier in regulation. Web mechanics to steer or confuse consumers into making sub-optimal choices are in regulators’ sites and they are studied in detail in the IMGL Magazine.

As ever, something for all interests and jurisdictions so do enjoy it.

Along the way we point the way to the likely impact of the UK’s Gambling Act Review which Regulus Partners’ Dan Waugh calls A Drama in Five Acts. He reports that each act is getting progressively darker before pointing the way to changing the narrative.

Editor Phil Savage’s first analysis of the war in Europe looks at the impact of western sanctions and the reaction of non-NATO countries to conclude that Russia’s “special military operation” is going to affect us all. The gaming industry in this important region has been decimated but Ukraine and Russia will not be the only ones to suffer. Confidence in an established European order has been shaken and restrictions on cross-border transactions are likely to hit those businesses which rely on trading remotely.

The biggest impact, though, is likely to be on inflation and a combination of rising costs and a stagnant economic outlook is a challenge that the gaming industry has not faced before.

Lightening the mood, somewhat, we look at the role of NFTs and other virtual digital assets in gaming with contributions from Mexico and India. Perhaps not the first places we might think of when it comes to the latest technology, there is evidence that Mexico is leap frogging into the digital age and that the explosion of igaming in India is fuelling increased confidence in the value of digital assets (as long as users stay the right side of the law).

Plenty for everyone so enjoy the issue!

However, with the market having made an incredible start, which saw NY bettors staking $1.63bn within just 23 days of the launch to smash NJ’s previous monthly handle record, the big affiliates were quick to issue bullish statements on the market’s potential.

Better Collective informed the market it would now be able to drive betting traffic from the 500,000-strong audience in New York using its sports media properties, ahead of unveiling a commercial agreement between its flagship platform The Action Network and the New York Post. Catena said NY had got off to a strong start for its portfolio of brands driving traffic to the licensed books.

We may start to get some visibility on their margins and future profits from a market burdened with a 51% revenue tax in the Q4 earnings calls but a fuller picture will not really emerge until the Q1s.

As well as looking at the numbers and earnings calls, Scott Longley poses three questions for the sector that he believes events of 2022 will provide an answer to. All centre around opportunities in the US, where the largest operators continue to jockey for position.

Stephen Carter
Editorial director, iGB

If you cannot view the page turner below you can download the PDF report here

In the first of these, on p25, Ed Birkin from iGB’s principal data partner, H2 Gambling Capital, looks at how legislators can strike that balance between optimising tax takes and ensuring a high channelisation of players within locally regulated markets, where players are properly protected.

Meanwhile, on p32, Victoria A Neal analyses the shortfalls in projected receipts in US states that apply tax after promo values have been deducted, and makes the case for levying tax on the payouts from these.

Elsewhere, contributors drawn from IMGL’s network of more than 350 leading international gaming lawyers explore developments in Ukraine, casino-style apps in Apple’s app store, the EU’s digital ID proposal, consumer protection in Europe and integrity in private sports events.

Phil Savage also catches up with one of the co-chairs of the planning committee for IMGL’s spring conference in Seattle, Kevin Quigley, to find out what delegates can expect from the event’s focus on gaming tech.

Enjoy the issue!

Pentasia’s global team of specialist recruiters also provide analysis of the data as well as some advice for companies looking to recruit in a highly pressurised talent market.

Click here or on the reader below to read the iGB-Pentasia Salary Survey for 2021.

While Oddschecker’s business is almost wholly focused in European odds comparison markets, the US was a much a driver of the deal as it was for Better Collective’s of Action Network and Catena’s of lineups.com and I5Media. Oddschecker’s head of commercial strategy Guy Harding speaks exclusively about the deal to Scott Longley in Part 1.

The US was however not the only driver of acquisition in the period, with Raketech’s acquisition of Infinileads giving it a bigger footprint in Latam and XLMedia acquiring igaming-focused digital agency Blueclaw.

The flurry of activity in Q3 was also not restricted to M&A, with Gambling.com Group listing on the New York and Playmaker on the Toronto exchanges, providing further earnings visibility on the sector. Jefferies’ initiation note on GAMB pegged the value of the US gaming market at between $2.4-$3bn a year. We provide analysis of this in Part 2.

Stephen Carter
Editorial director, iGB

The reasons for this are multiple, from the rapid pace of state-by-state regulation to the pandemic-driven rise of cashless gaming. And while in the UK and Europe, operators had to effectively build omnichannel offerings from scratch starting with the creation of loyalty schemes they then used to convert bettors to online, US operators are starting far higher on the curve with as many as 20 years of loyalty programs behind them.

As a result, US operators such as Penn National are already reporting seeing success in leveraging omnichannel strategies in the other direction and bringing online customers into their physical venues, with this approach also driving new product development.

This edition of the Market Monitor speaks to stakeholders across the spectrum to take the temperature of the present, the second coming and the future of omnichannel. We hope you find it informative and useful. Please don’t hesitate to get in touch if you have

As we continue to evolve and expand the content we produce at Clarion Gaming, we would love to receive your feedback on this report or any other content we produce under the iGB and ICE 365 brands. Please don’t hesitate to email me at stephen.carter@clariongaming.com with any comments or suggestions you may have.

Stephen Carter, Editorial Director

In the white paper available to view and download below, Cloudflare looks at how by selecting the right solutions, gaming companies can keep online gameplay fast and latency-free without leaving their intellectual property and players’ data vulnerable to attacks.

Cloudflare will be also attending iGB Live! in Amsterdam from 28 September to 1 October. To find out more about their suite of performance, security, and reliability solutions, please visit them on Stand L40. Register for iGB Live! for free here: https://fal.cn/3i5cv

Cloudflare will be attending iGB Live! in Amsterdam from 28 September to 1 October. To find out more about their suite of performance, security, and reliability solutions, you can visit them on Stand L40.

Register for iGB Live! for free here: https://fal.cn/3i5cv

Whether or not other affiliates will follow suit remains to be seen, but it’s clear BC’s rivals are also firmly back in the M&A game, as was evident with long-time US market leader Catena Media’s snapping up of Lineups.com.

It will be interesting to see how the two recent acquisitions affect the overall market shares of the leading two players going forward – after climbing to the top of the table in the fourth quarter of last year, Better Collective was overtaken by Catena again in the first quarter of 2021.

Deals aside, the other big issue occupying affiliates’ minds of late has been the quality of their content.

Hammered by Google’s algorithm changes, a number of the sector’s big hitters have been revamping their content to try and get back in the search engine’s good books.

Some have also continued to pursue a strategy of pivoting towards paid media, at least to a greater degree than in the past, to provide some level of immunity from future organic changes.

As the results analysis shows, however, this is having something of a negative effect on margins.

Stephen Carter
Editorial director, iGB

As we continue to evolve and expand the content we produce at Clarion Gaming, we would love to receive your feedback on this report or any other content we produce under the iGB and ICE 365 brands. Please don’t hesitate to email me at stephen.carter@clariongaming.com with any comments or suggestions you may have.

Stephen Carter, Editorial Director

At a time when the US market is expanding and evolving significantly, this has seen a host of European companies expand into the country. But gaming in Indian Country is different from commercial casinos; there are different goals, motivations and beneficiaries. 

This report, compiled by Paul Girvan of PKC Gaming & Leisure Consultancy, and sponsored by Kambi, aims to offer insights into how tribal gaming came to be and how it is governed. It examines the economic impact of casinos on Indian lands, as well as the market’s growth potential in the coming years. 

And with adoption of newly regulated products such as sports betting and igaming differing from state to state, regulatory developments in Michigan and Washington state are put under the spotlight. Amid the clamor for partnerships, the report aims to provide the Native American operators with a clear-eyed overview of the potential deals that can be struck, while explaining to their prospective partners what they are looking to achieve through such tie-ups. 

Tribes are also expanding domestically and internationally. This year marked the first time a tribal-operated casino opened on the Las Vegas Strip, and the operator of that property, Mohegan Gaming & Entertainment, is also targeting new facilities in Japan, South Korea and Greece. Bobby Soper, its recently appointed international president, discusses these ambitions. 

Our thanks to Kambi for sponsoring this report. We hope it proves useful.

The effect of the £2 stake limit imposed on B2 gaming machines at the start of April 2019 was immediate and dramatic.

Gaming machine revenue for the year to March 2020, as tracked by the UK Gambling Commission, tumbled by 41% to £1.075bn, while betting revenue fell in sympathy, dropping to £1.28bn or 5.2% down on the previous year.

Combined, retail shop GGY fell to a new low of £2.36bn, or 26% down on the B2-driven high of £3.22bn in 2017.

For the public, the most visible sign of the downturn was in shop visibility. From a peak in 2014 of more than 9,100 shops, by March 2020 that number had fallen by almost 16% to 7,861. It will shrink further once the data is collected for the year to this March following the effect of the pandemic lockdowns. 

The latest data from the listed operators shows the extent of the impact, with the retail operations of both William Hill and Entain tipping into operational losses for 2020. Net revenue at William Hill plunged 50%, Entain suffered a 4% decline and the Flutter-owned Paddy Power was down 28%.

The future is unsurprisingly less than obvious. The complicating factor of the sale of William Hill to Caesars Entertainment confuses matters even more, with the future of its retail estate yet to be decided. Still, sector watchers are confident that once the UK betting shop estate reopens for business in the spring/summer, consumers will return. 

However, long-standing trends towards different products – football and SSBTs in particular – could be exacerbated, while the extent to which B2 play has disappeared is yet to be fully played out. 

What is certain is that the UK retail betting estate will have shrunk or as many have suggested, been right-sized. The question then turns to whether this smaller cohort of shops can manage to hold its own in a UK high street that is suffering from historic changes in consumer behaviour.

However, much of this growth had been bought, with the two top-performing affiliates in terms of revenue growth – Better Collective and Raketech – having made significant acquisitions last year.

The former’s €44m addition of Atemi Group to its business at the start of the quarter brought an immediate boost and saw it eclipse Catena Media to become market leader during the fourth quarter.

The latter’s Lead Republik acquisition of early last year was evidently paying off by the end of the year, while its buyout of American Gambler in November may take longer to filter through to its results.

At the other end of the leaderboard, long-time laggard Acroud is hoping to turn things around via M&A. The company has been on something of an acquisition spree since the beginning of this year and has indicated there is more to come.

And after a two-year lull in any significant consolidation activity, Catena Media looks set to throw its hat back into the ring, stating during its fourth quarter conference call that M&A is back on the table. Whether or not it can regain its market-leading position using the strategy that helped get it there in the first place remains to be seen.

Stephen Carter
Editorial director, iGB

As two of the greatest areas of interest in disruptive technology from 2020, we added more emphasis to questions surrounding AI/ML and blockchain in our 2021 survey. 

Much like last year’s results, respondents felt that personalisation will have the most immediate and significant impact (32.94% in 2021 versus 35.85% in 2020), followed by data/analytics (22.35% in 2021 versus 33.95% in 2020). 

While following a similar trend, worth noting is the wider margin between the two leading examples, seemingly spurred by an increase in the applicability for other use cases. 

Compliance, for example, seems to be of much greater interest this year, increasing from 9.43% in 2020 to 15.29% in 2021. Chatbots also seem to have gained more traction, jumping from 3.77% to 9.41% – perhaps on account of the more distributed workforce in light of Covid-19. 

One startup highlighted by a respondent as intriguing for its capabilities was Luka, an AI-driven companion chatbot which could offer exciting opportunities for a more personal approach. 

Automation, however, has remained much the same, with 17.65% of respondents noting an interest in 2021 versus 15.09% in 2020.

One highlight from last year’s survey we expanded upon this year were ethical concerns around the use of AI in online gambling. 

We asked respondents to outline the challenges they feel it may face here, and while 36.53% of respondents cited no ethical concerns, a variety of points were raised.

The greatest apprehension, understandably, surrounded its relationship with responsible gambling, with 21.15% of respondents registering their unease.

Of the various concerns raised, one respondent said: “[My disquiet is] around responsible gambling and how AI could be used to drive lifetime value the wrong way – this is the human element, however, not the tech.” This was a sentiment echoed by a number of respondents. 

As part of the panel on our inaugural Futures Survey webinar in February, Four Wood Capital’s Lauren Seiler commented: “I think that at this point, you’d like to see the rosy side of things, but this isn’t an industry that has the greatest rep out there. If we start to use this technology and take things a little too far, it’s going to make things significantly worse.”

She added that players newer to the online space raise even greater ethical concerns: do they know that they are speaking to a bot, not a person? Do they understand their behaviour is being tracked to personalise their experience?

“Then you’re going to have the regulatory environment clamp down even harder than it might need to, so I do think that there is a certain level on not only the operators but also the regulators and everyone to not take that too far.”

Additionally, 13.46% of respondents expressed concerns around data privacy: how AI will process personal data, who is responsible for the data collected and how the technology “may connect dots that are not relevant”.

In addition to these areas, concerns were raised about consumer education, the security of the technology and its sustainability in the face of ever-changing regulatory regimes. 

Another webinar panellist, Julian Buhagiar, co-founder of RB Capital, told the audience that he sees two sides to the conversation around AI/ML: “The first is the positive benefits – where can AI/ML help. There’s certainly KYC, which is a specific problem that can easily be solved by throwing more computing power at it. Data privacy and the extent to which it is used from a legislative perspective is quite important. AI, if misused, is a serious threat that we need to understand.”

As one respondent quite rightly highlighted, and as addressed in our 2020 report, we are still a long way from the kind of AI that is being discussed by some respondents. 

Indeed, many conversations around the technology failed to distinguish between artificial narrow intelligence (ANI) – technology that is currently available in the form of machine learning – and yet-to-be-achieved more conceptual developments such as artificial general intelligence (defined as human-level) or artificial super intelligence (surpassing human capabilities).

Adopting disruptive tech
When it comes to the nuts and bolts of adopting these technologies, another question we raised this year was who bears the burden of responsibility for driving the industry forward? Indeed, all of the technologies mentioned are not “future technologies” in so far as they don’t yet exist, only that they have the potential to reshape the industry – and perhaps the world – as a whole.

When we asked our respondents for their perspective on regulatory intervention to drive new technology uptake, 40% strongly agreed that regulators have a responsibility to both monitor and encourage development, with a further 38.82% somewhat agreeing. About 7% either somewhat disagreed or strongly disagreed, and 14.12% neither agreed nor disagreed. 

This topic in particular was discussed at length during the webinar, with varying degrees of support from our panel. Buhagiar bemoaned the “draconian” nature of this type of intervention. “Regulation is bad – simple. The way it’s done is bad,” he said. “Now, players have no choice but to be driven underground to look for their fix, and that’s a big issue. 

“Part of it is the operator’s fault because nobody lobbied up as well as they could have, and we’ll only see the effects of this in 3-4 years.”

He sees the current interaction between tech and regulation as limited at best: “Technology hasn’t helped, [for example] what regulation has done with IP blocking, making sure that only specific things are done in a specific event. AI could have given insight. For all the things it doesn’t do, the thing it does right is predictions.” 

Seiler had a slightly more sympathetic perspective based on her experience in the US: “Legislators and regulators have the best of intentions in mind, but it’s almost monopolistic. It can starve innovation to a certain degree, and there’s not an understanding of technology and the good it can do.

“There’s always a focus on the harm it can do. If you want to drive tax revenues, attract players from the grey or black market, you’re dealing with already very thin margins, particularly in sports betting. Why would a good player transition from the grey market into the white market if you can’t give them a competitive project because you’ve regulated the bejesus out of it.”

From his experience in Europe, Marcel Tobler, chief strategy officer at Grand Casino Baden, added: “Regulation is very often not based on a logical level, it’s based on politics – what politicians have an opinion on at that moment. Specifically with the pandemic, people became more aware that there are risks in online gambling, and some people when they worked from home or did not work at all got into trouble as they didn’t have a way to control their online gambling behaviour.

“We felt that this had an impact on how regulation is viewed by the regulator and the pressure increased.”

And while he did see hope in fostering innovation through relationship-building with regulators, “the big challenge is how to explain to a regulator how the new technology can help. We have to be able to explain what this kind of technology honestly will bring as an added value to regulation, player protection and tax revenue.”

This reflects a slightly stronger sentiment when compared to last year when only 70.06% overall agreed and 15.10% overall disagreed. 

One respondent added: “Operators are always limited by regulatory constraints and to use new disruptive technologies these should be embraced by the regulators in parallel.”

Indeed, recent newsflow suggests that regulators in markets such as Great Britain and France are looking to become more attuned to new tech and solutions to future-proof their operations.

While some technologies have been integrated to an extent into igaming operations, such as AI for sports betting and minimal VR/AR experiences, the jury was still out for our respondents as to whether the industry is good at adopting and fully utilising disruptive technologies, with the majority (35.29%) neither agreeing nor disagreeing with this statement. 

The scales tilted slightly towards agreeing, with 17.65% strongly agreeing and 25.88% somewhat agreeing versus 18.82% somewhat disagreeing and a small percentage of 2.35% strongly disagreeing. 

However, one question around which respondents demonstrated slight more consensus was the role of Covid-19 in demonstrating the need for disruptive technology. While once again the majority (40%) neither agreed nor disagreed with this sentiment, 22.35% strongly agreed and 30.59% somewhat agreed, with only 7.06% somewhat disagreeing and not one respondent strongly disagreeing.

Throughout the webinar session, the panellists expressed similar sentiments to the audience. Tobler said: “For me, this pandemic has shown that in many cases, we don’t need this highly advanced technology. Many companies are just missing easy-to-use tools to help them to work remotely, and in a more automated way.”

While we’ve seen some progress a year on, it is apparent that there is still much to be done to educate and facilitate development across the sector. As one respondent said: “Gaming is years behind the curve here and the existing tech stacks are not exactly compliant with new technology. It is going to be new and independent tech that drives the industry forwards, not the incumbents.”

Indeed, the responses from our survey highlight hugely varied perceptions of how far along the adoption curve igaming is compared to other sectors, some positing that these technologies remain underdeveloped and that we are light years from their use, others expressing impatience at their limited usage thus far. 

One thing is clear: there is much to be done to educate both the industry and its consumers ahead of mass rollouts. It’s yet to be seen how disruptive technology will shape the industry, but we can be certain that the next phase of igaming will be bright. 

Due to the broad scope of opportunity in AI/ML, this year we broke the technology into three business-critical use cases: strategic automation, personalisation and responsible gambling. 

Adding a layer of insight to this year’s findings were a panel of experts who joined our inaugural Futures Survey webinar last month. This was moderated by Chad Stender, partner, SeventySix Capital, who was joined by Lauren Seiler, managing director, head of strategy, global corporate development & investor relations at Four Wood Capital; Julian Buhagiar, co-founder of RB Capital; and Marcel Tobler, chief strategy officer at Grand Casino Baden.

Buhagiar neatly summed up the topline findings with his observation that: “We’re seeing the death of buzzwords. Whereas 2019 and, to a lesser extent, 2020, were about ML and blockchain, we’re actually seeing less of this. Most of that tech has become commoditised, and/or de-hyped.

“That’s quite important because most of it was going to be fluff, to begin with anyway. If you’re investing in tech, you’re investing in a specific platform – AI/ML, or indeed blockchain, are just enablers to a bigger USP.”

Tobler added: “Something that is holding back the industry to make quick use of new technologies and offers by startups is that there are too many operators on legacy platforms.”

But dig a little deeper and these survey findings offer up a wealth of granular detail on how industry stakeholders perceive the applicability and relevance of these emerging technologies to their business and how they might shape the industry’s future.

The opening section of this year’s questionnaire asked respondents to choose up to three technologies that they see as most immediately transformative for the igaming industry.

In a similar vein to last year, the overwhelming majority saw the aforementioned AI use cases as most immediately transformative. Among these, personalisation was chosen by 52.9% of respondents, closely followed by strategic automation (51.8%) and responsible gambling (51%).

This perhaps comes as little surprise, considering the growing expectation in recent years that mass adoption and distribution of AI/ML technology is just around the corner. Indeed, many tools that leverage machine learning already exist in the industry, BetBuddy being a prime example, with its working capabilities to “identify and manage at-risk gambling behavioural patterns.”
Interestingly, the potential for transformation of each of these three use cases appears to be viewed more evenly than last year, where personalisation held a significant lead at 62.3%, followed by strategic automation (51.9%) and responsible gambling (RG, 47.2%).

“What we are looking at is automation to improve quality [as opposed to saving costs] specifically in the area of compliance. If we make a mistake in compliance, it can cost a lot of money in fines,” Tobler said.

Indeed, the conversation around personalisation seems to be riddled with both a strong sense of urgency but confusion around the lack of case studies, Tobler argued.

“I feel like there is so little personalisation in the industry and I just don’t understand why. There’s so much potential around this topic and it will always be at the forefront of what can be done. 

“I haven’t seen great examples where AI is used to significantly improve personalisation, but I have seen some interesting projects in RG.”

After AI/ML, blockchain was seen as the most immediately transformative technology by 31.8% of respondents, representing a marginal drop in interest on the 34% figure in our 2020 survey.

Seiler saw blockchain, typically a very buzzword-y technology, facing some serious implementation issues in the coming years. “I think that it’s interesting, buzzy, exciting and here to stay, but from a gaming perspective you’re going to start seeing some challenges come through the system – can you integrate it?” she said.

She also suggested that some demographics only just adapting to online gambling could be alienated by the technology: “When you’re looking at your user base and you’re trying to expand it, not contract it, you don’t want to scare away certain demographics. 

“Some of these more advanced technologies just might not necessarily translate as we look to the future. It doesn’t take away from their utility, they just might not be the right fit for this space.”

However, the trends in IoT, VR/AR and edge computing completely flipped when compared with 2020. IoT now had 29.41% of respondents seeing it as immediately transformative versus 12.26% in 2020 and edge computing jumped almost 10% from 5.66% in 2020 to 14.12% in 2021. 

Buhagiar suggested the increased demand for IoT could be reflective of the rapid improvements in data extraction and processing power from the last 12 months: “Part of it can be put to good use – like problem gambling – but we’re also starting to see specific plans in things like slot RTPs based on the processing power based on the interaction of the human interface with the slot machine.”

He also predicted a bright future for edge computing: “One of the non-reported stories, particularly in gambling publications, is how incredibly powerful edge computing has become over the last 12 months.”

With Buhagiar seeing real-world practical applications for quantum computing just on the horizon, he also predicted an uptake in applications for data-centric technologies, alongside risks such as DDoS attacks through AI and complex deep fakes.

VR/AR, on the other hand, dropped from being seen by 28.3% of respondents as immediately transformative in 2020 to just 14.1% in 2021.

A matter of education
So, how has industry education on all five disruptive technologies evolved to reflect the interest in them? This year, we took a more focused approach to this question, asking respondents to select only one answer instead of choosing up to three.

In some cases, such as blockchain, opinion has remained much the same. Blockchain was by a fair margin the most-selected answer, with 27.1% of the view that the industry did not understand it or felt it irrelevant.

Knowledge of the AI/ML options seemed to be on the rise, however. With 9.41% of the vote, AI/ML for responsible gambling remained the most-selected of the three, while AI/ML for strategic automation and personalisation were each deemed either not understood or not relevant to the industry by 5.88% of respondents. These figures showed a clear improvement on the prior year.

Where AI/ML and its use cases were previously relatively on par with all other technologies bar blockchain, there appears to have been a significant increase in understanding of them in 2021, as their standing as our three least-selected options shows.

Interestingly, the applicability and understanding of VR/AR seems to have worsened in the last year, as it narrowly edged out IoT (17.65%) to become the least understood technology behind blockchain at 18.82%.

The decline in VR/AR applicability came as no surprise to our panel of experts, with Buhagiar commenting: “VR/AR was always going to have a challenge in monetisation. The truth is, we’ve tried it, and it doesn’t seem to be working much in gambling.”

This year did however see a slight improvement in the understanding of edge computing and its applicability to the industry, with only 15.29% of respondents considering it irrelevant .

The home of innovation
This year, we also delved deeper into the nature of innovation in igaming, asking our respondents for more insight into how they feel the industry will evolve its usage of technology.

Stender told the webinar audience that innovation was now a necessity and no longer an option: “You either innovate, acquire or get your butt kicked. If you’re an entrepreneur, you’re thinking about how you can create that solution that is going to need to get acquired. 

“If you’re the company, everyone’s thinking, ‘How can we continue to innovate, or what do we need to bring in?’ You see examples stateside – Caesars buying William Hill in the US, then MGM and Entain falling apart. These deals can take a long time, well over a year, but may not come to fruition.”

When asked how likely would it be for their company to attempt building an in-house solution using disruptive technologies, 30.6% selected “very likely”, with 14.1% saying this was somewhat likely.

Referring to a recent project at Grand Casino Baden, Tobler said: “The reason why we built our platform was to have more freedom on what we want to integrate in the future. We believe there is a lot of potential out there – there are good ideas, and we want to be able to take those ideas, work with startups and integrate it into our B2C offering. 

“It helps us to choose the startups we invest in. We ask ourselves, ‘Is that promise to solve a problem working for us? Can we integrate it in the foreseeable future, will it add value on a regulatory side, a customer side, retention side?’ If we can answer with yes, it’s interesting. It doesn’t need to solve all of the issues and problems in the igaming industry.”

Following this, respondents highlighted which disruptive technologies they would most likely leverage in-house. 51.4% stated various use cases for AI/ML as most likely, especially for personalisation and automation of processes. VR/AR in-house solution potential stood at only 11.43% in comparison, followed by blockchain at 8.57% and IoT at 5.71%. 

Seiler said: “From an investment perspective, our more overt focus is on things that help drive that consumer retention. There’s a big question out there on whether you build it or buy it.”

The remaining 22.86% of respondents focused more on other technologies such as facial recognition, data science and AML solutions.

In terms of how they would achieve such a development, using an agency was the most popular route for 34.62% of respondents, closely followed by 30.77% opting for the in-house approach. Others suggested M&A (26.92%) or a blend of approaches (7.69%) would best suit their company. 

Buhagiar cautioned operators against internal innovation for the sake of it: “Don’t use disruptive technologies for technology’s sake unless you have a specific need for it. This then becomes the emerging trend that is necessary – to have rockstar product owners in your company to be able to carve the way out to the monetisation solution.”

He added that technology is adapting and changing so quickly, that the investment cost of in-house development can far outweigh the returns: “There is a lot of good tech out there and startups that provide specific solutions. There are a lot of good libraries and open resources out there that you can plug into for a small fee. Don’t try and build tech unless there’s a clear, distinct absence of that outside. 

One option for integrating and leveraging disruptive technologies is by working with more agile companies – namely, startups. 36.47% of respondents said their company would be very likely to work with a startup if it provided a complementary solution to its existing products and solutions, and 42.45% said they would be somewhat likely. Only 4.71% of respondents overall noted a negative attitude towards working with startups.

Next, we asked respondents to detail which igaming-compatible startups presented an interesting opportunity to their company. Among those mentioned were Future Anthem, a startup providing an ML solution striving to help customers grow responsibly through game data science, and Synalogik for its Scout product, which gathers, cleanses and analyses data in an automated way. 

In Part two of the Tech Futures survey and report, we dive deeper into where our respondents see AI/ML having the greatest impact and the role of regulation in driving take-up of new tech.

Considering the events of the last year, the industry as a whole is once again on the precipice of yet another seismic shift.

This time, however, in order to come out of the tunnel more powerful than ever, that adaptation is going to require perhaps the largest single overhaul of the casino floor in half a century.

In my new white paper, I look at historical player data from the global brick-and-mortar landscape in an effort to identify what the most significant changes need to be in order to appeal to a new generation of casino visitors.

In the paper, I look closely at the existing target demographics of some of the most valuable players on the casino floor: slot players. Generally speaking, this is an ageing demographic, and little has been done to adapt the floor model to cater to a new, younger generation with a longer player lifespan.

As we emerge from this pandemic, the heavy reliance on slot players over 55 will no longer satisfy the financial objectives of brick-and-mortar operations. There is a hugely underserved population of carded players that casinos need to engage with using new machines and updated technology. As such, there exists a major opportunity in skill-based gaming.

Studies show that integrating skill-based gaming machines entices new players to engage with the slot machine floor space (in some cases making up 80% of total unit space on the casino floor) without cannibalising play from other machines.

This, combined with the technological advantages of modernised games can help encourage new play-throughs, and ultimately widen the base of active slot players with a demographic that has been infamously elusive to date.

Learn more by reading the white paper below, or by downloading it here.

Moving to the Netherlands, the market is at a very different point in its development. Given the delays already incurred in the opening of the regulated market, it was little surprise that the launch has been pushed back again, by a month to October. 

However, against the backdrop of the pandemic, this latest delay was perhaps seen as more justifiable than others by operators. In any case, one month is not likely to make much of a difference to those who’ve already been absent from the market for the 32 months required by regulators. 

There’s also been some good news for those with an eye on the country, with a recent report from the regulator hinting that the market could open up even further in future. 

Stephen Carter 
Editorial director, iGB

For some time there’s been a growing divide in the sector, with some of the big names piling into paid media while others move away from it to focus more on SEO. 

The news shortly after the end of the third quarter that Better Collective was investing €44m in paid media specialist Atemi made clear which side of the fence the sports betting-heavy affiliate is on. 

Raketech seems to be taking a similar position, having acquired the paid media-led Lead Republik earlier this year, and GiG’s third-quarter results show the company’s paid media revenues are steadily rising. Catena, on the other hand, seems to be moving in the opposite direction, with its enthusiasm for paid media waning over the past couple of years. 

The other big topic occupying affiliates right now is the increasing likelihood of deposit limits spreading further across Europe. Though proposals for spending caps in the UK have been widely criticised, many feel it’s almost inevitable some curbs will be introduced. 

As for the impact on affiliates, that’s less clear. Over the long term the changes are unlikely to be positive, especially for those operating only in regulated markets as draconian rules often drive players towards unlicensed offerings. 

But as the bonus and deposit limits in Sweden have demonstrated, affiliates can sometimes enjoy a short-term boost when clampdowns push players to shop around within the regulated markets. 

Stephen Carter
Editorial director, iGB

If you are unable to see the iframe above you can download the PDF report here!

Our report explores the opportunity for operators to use a customer-centric payment strategy to attract new players and its key findings include:

• 27% of players surveyed drop out and use a different company when they can’t pay using their preferred method. Consider aligning your payments process with your audience’s preferences to help increase your conversion rate for new players.
• 70% of players factor in the speed of payouts – ideally, they should be made in 30 minutes or less – when deciding which company to use. To meet consumer expectations, operators should consider this when deciding on their payout methods.
• Player payment preferences such as payment method, device and ease of use vary globally. Less than half of players surveyed prefer to pay with credit or debit cards. With no one-size-fits-all answer, you can look at optimising your payments experience on a local level to align with changing expectations across different markets and demographics.

To download the report fill out the form below!

This report is designed to provide operators with the market insights, some helpful guidance they may need to consider to help them meet the increasingly demanding payment expectations of their customers. These findings may help brands looking to empower their customers to pay how they want, and in doing so, they could reap the rewards of a customer-centric global payments strategy.
The following statistics in this report represent the results of research conducted between 27th April – 15th May 2020 by Opinium Research and commissioned by Worldpay from FIS as part of the ‘Power Your Payments Campaign’ unless specified with a reference.

This is supported by contributions not only from Bayes Esports and Sportradar, but also law firm Lubberger & Lehment; esports odds specialists Oddin, and esports tournament organiser and media portal Win.gg.

“Our common goal is to help you optimise and monetise your tournament,” Bayes Esports chief executive Martin Dachselt said.

“Partnerships and customer relationships are the keys to our success, and they have become even more important in 2020, a year with so many ups and downs for the esports industry.

“However, we have also seen tremendous growth; for instance, esports betting has risen by up to 300%.”

Read the full report here.

But many assumed there would be a trade-off in terms of legitimacy and that ultimately it was the only choice in an environment where the government had made clear a high channelisation rate was a key priority.

However, even before Covid-19 struck, there were signs the market wasn’t working as it should and the knee-jerk political reaction to the pandemic has made things worse.

Given the addition of deposit limits and the misguided idea of a central state-run portal to enforce these, it’s unsurprising that all evidence points to a growing shift of players from the regulated market to the unregulated market.

The end result is that smaller operators are increasingly choosing to target Swedish players without gaining a licence, while bigger operators are questioning whether they’ve made the right choice in opting for the licensed regime.

Analysts suggest this could lead to a sizeable shift away from the regulated market in the next five years, which if true, would represent a massive failure for Sweden’s licensing system.

Further south in Europe, similar debates are taking place in Portugal, where the latest data suggests more and more players are also moving outside the licensed system. Here, as with Sweden, politicians seem intent on using assumptions about a rise in igaming due to the pandemic to justify further clampdowns on operators, despite contradictory evidence.

There is more optimistic news from Denmark, however, where an analysis of the data from the beginning of the regulated market in 2012 until last year clearly demonstrates that the addition of online can add to a market’s overall size rather than simply shifting play between channels.

Stephen Carter
Editorial director, iGB

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• The size of the esports betting market, and growth forecasts
• The core esports consumer, and how to approach them as customers

Read on to find out more

By and large, the results showed that affiliates had fared relatively well thanks to the heavy focus on casino among the large affiliates. In fact, rather than simply managing to cope with the crisis, the latest results shows that some thrived during it, with year-on-year revenue increases for almost all of the companies covered. The big exception was Better Collective due to its strong skew towards sports betting.

With sports having resumed across most of the world, there are already signs that the situation is returning to pre-crisis levels, with both casino and sports betting revenues moving back towards more historical norms.

There is also some optimism that the pandemic caused a greater portion of the gambling market to move online, and that this will be of long-term benefit to the industry.

One thing affiliates are perhaps less optimistic about is the increasing inevitability of affiliate licensing in European jurisdictions, especially the UK. But as several commentators opine in this report, this can bring benefits for affiliates.

The same is true of the gambling advertising restrictions that seem to be spreading across Europe.  As the experience of some affiliates in Italy shows, even with restrictive measures in place there are opportunities for affiliates.

It’s harder to find the positives in bonus restrictions, however, with even the Swedish regulator conceding its Covid-19 induced bonus crackdown had possibly taken things a step too far. Add in the new bonus bans in Spain and it’s understandable that concern is mounting over the future of what has long been one of the most important tools in the affiliate toolkit.

Stephen Carter
Editorial director, iGB

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This report, supported by leading sportsbook and software services provider Altenar, focuses in on the growth of the digital channel, which already drives 23% of betting GGR across Africa, with mobile accounting for more than half of that.  

This report combines on-the-ground intelligence with the latest numbers from the sector’s leading gambling data business to provide a snapshot of online betting and gaming markets in transition. 

We hope you find it valuable and look forward to seeing you at ICE Africa Digital. 

You can register for free here and find out more about the speakers and content at and leading up the event here.

If you can’t see the below report you can download it as a PDF here!

For further insight from Altenar on dealing with the challenges of working across multiple markets in Africa, read our recent interview with chief operating officer Dinos Stranomitis.

For operators, it’s clear that even if some bettors have moved into other verticals, there’s still a huge gap in their profits.

But as the recent numbers put out by affiliates show, this sector of the igaming industry seems to be faring much better.

With most of the big affiliates making the majority of their income from casino anyway, the impact of Covid-19 has been less negative for them than it has been for operators. Early numbers from April show some affiliates might even have benefited from the situation.

But the pandemic is taking a toll on the more sports-focused affiliates such as Better Collective. And even those affiliates that are more casino-focused have been taking action to protect themselves from the effects of the pandemic, with many expecting its full effects won’t really be felt until later in the year.

One theme evident from the first quarter is the need to manage debt levels, with Catena Media, Gaming Innovation Group and Net Gaming Europe all restructuring their finances.

It’s not just the pandemic leading affiliates to take steps to protect their businesses; the recent Google algorithm changes continue to cause headaches for affiliates, most notably XLMedia.

Interestingly, the actions taken by affiliates to overcome both of the sector’s big issues have resulted in something of a split among the big players when it comes to paid media. Some are investing more heavily in the discipline, while others are withdrawing from it altogether.

It will be interesting to see how this divergence continues to develop when second-quarter results become available, which of course will be eagerly awaited because they will provide a clearer picture of the impact of the pandemic on affiliates.

We hope you enjoy this report and find it useful. Should you have any suggestions or feedback please don’t hesitate to email me at stephen.carter@clariongaming.com

Stephen Carter
Editorial director, iGB

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But the pandemic has done more than just put the brakes on the sports betting vertical and have a huge revenue impact on the wider igaming market. It has highlighted and exacerbated issues that were already at the fore in the gambling market.

The debate over gambling advertising was already front and centre in many jurisdictions and has become even more so since lockdowns were put in place.

Gambling critics have used the spectre of bored housebound consumers piling into online gambling to drive home their demand for advertising bans and regulatory reform and in some ways, they’ve been successful.

Regulators in a number of European countries have taken action to curtail gambling during the lockdown period and there is talk of further clampdowns in the UK and Sweden, the countries that are the focus of this Market Monitor.

In the UK, the virus came at a time when the market was already contracting and when voices from groups such as the Gambling Related Harm All Party Parliamentary Group were growing increasingly louder.

The efforts of the Betting and Gaming Council in co-ordinating a voluntary ad ban during the crisis have done little to appease the industry’s detractors, who now want the ban to be made permanent.

In Sweden, proposals by authorities to further limit deposits and ban betting on lower league football could potentially lead to channelisation falling even further in the relatively newly regulated market.

A recent report from Copenhagen Economics provides some compelling and worrying evidence to suggest that rather than driving out the grey market operators, the regulator’s actions so far might be having the opposite effect.

All of this points to the idea that the regulatory and legislative responses to gambling during the coronavirus crisis will be just as important as the lifting of lockdowns and reopening of sporting events in determining how the industry comes out of this crisis.

Stephen Carter
Editorial director, iGB

You can also download the PDF from here

As the third-quarter results from the leading affiliates show, many are suffering a form of indigestion as the fall in new depositing customers and a number of other key financials shows.

This is being reflected in the share prices of the key players, as investors clearly see the number of new sign-ups as a vital sign of a company’s health.

In this key metric, the third quarter saw Catena Media regain its position at the top of the table, having briefly been overtaken in NDCs by Better Collective the previous quarter.

The latter fared much better in terms of revenue, however, eclipsing the rest of the listed affiliates with revenue growth of 54%. Apart from Gambling.com Group, which registered growth of just 2%, the rest of the field went backwards on the revenue front.

But many of the issues currently hitting the bottom lines of affiliates stem from negative regulatory developments in Europe and there’s a lot more optimism when it comes to the potential on the other side of the pond.

One problem there though is that operators are driving a hard bargain. While it is only in relatively recent times that operators in Europe have started to put pressure on affiliate margins, in the US affiliates are faced with lower margins from the outset.

When combined with the preference for CPA over revenue share, it’s understandable that shareholders are questioning the long-term future for affiliates in the US.

A look at Catena’s ‘hangover’ in New Jersey exemplifies the issue perfectly. It pulled in a rush of business in the third quarter of last year as the market opened, but with these players on CPA deals, this performance could not be replicated this year.

Nonetheless, while there are hurdles to overcome Stateside, it’s clear affiliates are pinning many of their hopes on this rapidly expanding new market.

We hope you enjoy this report and find it useful. Should you have any suggestions or feedback please don’t hesitate to email me at stephen.carter@clariongaming.com

Stephen Carter
Editorial director, iGB

If you can’t use the Flash player below you can download the report here.

With the main agents of the recent consolidation drive having followed the trail blazed by XLMedia to the public markets, visibility of metrics such as NDCs and the percentage of revenue gained via rev share deals has enabled a more detailed view of how the top end of the market is performing.

Generating a larger share of revenues from rev share as opposed to CPA clearly increases the ability of these businesses not only to plan but to grow revenues in a long-term sustainable manner, and the comparative analysis in Part 1 exposes clear differences between the leading listed players.

This Q1 review also falls within what feels like a defining period in the affiliate sector’s development, with stakeholders dipping their toes in the US market where the sports betting expansion looms large across the wider igaming space.

The quarter also saw the transition from dot.com to dot.country regulation in Sweden, a highly material market for several of these businesses.

While understandably bullish in the face of a bumpy transition into a heavily restricted bonusing environment, author Scott Longley is not convinced by the affiliates’ arguments that regulated markets such as these are “less risky” and “better structured for growth”, seeing these as more credible coming from the mouths of operators.

“It is hard to see why the bigger affiliates need to follow the regulated mantra of the operators other than as a sop to potentially nervous investors in Sweden, where most of the entities are listed”, he says.

The big listed players are of course only one part of the story. In addition to other big names being privately held – such as Oddschecker, the Racing Post and Cherry’s Fortune Lounge – substantial traffic and revenues are still driven by the long tail of affiliates working below the listed level.

For many of these, the benefits of working in regulated markets are still “somewhat oversold” (see Part 3).

We hope you enjoy this new report and find it useful. Should you have any suggestions or feedback please don’t hesitate to email me at stephen.carter@clariongaming.com

Stephen Carter
Editorial director, iGaming Business

If you can't use the flash player below you can download the report here.

With many regulatory provisions coming into play this year, 2019 is a ripe time to consider if and how your identity verification and digital identity checks are keeping pace.

This in turn, however, raises concerns for operators wanting to maintain a positive, seamless customer experience. Emailage, a global fraud prevention company, saw a need in the industry for a study examining the lasting impacts of these developments on customer experience.

The resulting report, “Managing risk in a player centric world”, produced in collaboration with iGaming Business, asked online gambling operators in EMEA a series of questions regarding their views.

Respondents came from various areas of the igaming sector, providing what Emailage feels is a comprehensive view of the state of play, the opportunities and the challenges.

In the UK bingo market, a sector that had stagnated in recent years, suddenly took a major hit when stricter know your customer (KYC) regulations were brought into effect.

This has seen operators forced to closely monitor players, determining the sources of their funding, with regulatory action looming over those who fail to do so. This appears to have hit the online bingo market particularly hard, resulting in lower revenue from VIP customers. 

It is yet to prompt a wave of consolidation, however, with 888’s deal for JPJ Group’s Mandalay business and Rank Group’s planned acquisition of Stride Gaming the vertical’s only major M&A activity in the year to date.

The opening of the Swedish market, meanwhile, appeared to herald a new dawn, following years of pressure from operators for legal certainty in the country’s but unregulated thriving igaming market.

Things have quickly soured. Gambling regulator Spelinspektionen moved quickly to stamp down on things it does not like, and a debate over advertising is raging.

Quite simply, the government feels there is too much, putting players at risk of developing problems. A government–mandated investigation sees Sweden moving towards new advertising restrictions – a potential ban has even been mooted – just months after opening for business.

Amidst this gloom, Germany, for years Europe’s regulatory basket case, offers a glimmer of hope.

For years the powerful state lottery association, the Deutsche Lotto- und Totoblock (DLTB) had put the brakes on any attempt to open the market beyond sports betting, arguing that they – and as a result the good causes they fund – would suffer. This had left the market in stasis since 2012.

Seven years on, however, signs point to the federal states finally thinking of the players.

Operators, and indeed some lawmakers, have long argued that the only way to protect players is to regulate all forms of gambling. With the Amended State Treaty on Gambling passed in March, but only in place until 2021, prospects for a liberal, multi-vertical framework appear better than ever.

This Market Monitor will give you a comprehensive overview in the state of play in each of these markets.

Robin Harrison
News Editor, iGaming Business

A population of 210 million with a clear propensity for gambling – albeit largely illegally at present – and a huge sporting culture has understandably given rise to widespread optimism about the Brazilian opportunity.

Until late last year, however, there was little indication as to when the industry would be able to seize that opportunity. But with the signing into law of legislation to legalise sports betting in December, it’s fair to say the sleeping giant is now waking up.

Although the structure for the regulated sports betting market will be decided over a two-year consultation process and the details of how the regulation will unfold are still unclear, analysts and market watchers are hopeful an open licensing structure will be adopted.

If that comes to pass, analysis from Morgan Stanley suggests that the Brazilian sports betting market might be worth up to £1.6bn annually at maturity within five years. The team suggests there is an untapped enthusiasm for gaming in the country, where the regulated offering is currently confined to the lottery and a small amount of horse race betting.

Although much of the attention is currently focused on sports betting, more immediately, the instant lottery concession (Lotex) will be decided imminently, while there are also plans for a bill allowing integrated resort casinos across the country.

Online gaming is also a potential prospect, although any progress would likely depend on a successful sports betting launch. A report put together by KPMG on behalf of the Remote Gaming Association (RGA) in late 2017 suggested a combined online betting and gaming market would be worth up to $2.1bn annually.

This report looks at the current state of play in Brazil, discusses what future regulation could look like and how this will impact market size, and considers which operators are best placed to benefit from a regulated market in the country.

E-zine contents

Introduction: A waking giant

Part 1: Setting the scene.

Part 2: The curious case of Brazilian bingo

Part 3: The online sports betting opportunity

Part 4: The current market shape

Part 5: Lottery expansion and beyond
 

Despite the relative recency of the advent of regulated sports betting within the state, there is already enough data to draw conclusions about likely growth rates across both product sets.

Stakeholder consensus on the sports betting launch is that performance to date is meeting or marginally ahead of pre-market expectations, with Kambi's Max Meltzer remarking that some people in the industry are “already talking about ‘when’ rather than ‘if’ New Jersey overtakes Las Vegas as the highest grossing sports betting market.” 

With the Nevada sports betting market worth circa $300m in 2018, exclusive forecasts from H2 Gambling Capital featured later in this report suggest new Jersey might be approaching that figure by 2023.

There are caveats to the hope that New Jersey will come to be viewed as the model to follow, with Sportradar's Jake Williams observing: “Most other states are not set up the way New Jersey is and other states are maybe more likely to be land-based.”

However, online gaming being up and running in NJ for more than four years before the lifting of PASPA puts the Garden State in the box-seat to leverage the digital potential of sports betting, and this means stakeholders across the US will be closely monitoring what New Jersey does and seeing if it works.

E-zine contents

Introduction: Off to a flyer 

Part 1: Data review 
Section i: sports betting
Section ii: gaming

Part 2: Peering into the future

Part 3: Mobile and more

While the dot.it sector turned in an impressive performance in 2018, GGR breaking through the €1.5bn barrier having hit the €1bn landmark just two years previous, it will also have to contend with the small matter of all forms of advertising coming to an end this July.

In Poland, government concerns over the proliferation of illegal gaming machines are shaping the policy response to gambling more broadly, and we are, according to report author Scott Longley, seeing “the controlling instinct of the ruling right-wing Law and Justice party permeate into the online world”.

With non-monopoly operators only allowed to offer sports betting taxed at an unsustainable rate of 12% of turnover, national lottery monopoly Totalizator Sportowy launched its Playtech-powered casino offering totalcasino.pl in December.

With this unlikely to capture any significant share of the dot.com gaming market, logic would suggest a subsequent rethink of this policy by the government but no one there is “holding their breath”, according to Longley.

A far more positive outlook is found in Denmark however, where recent growth trends continued into the third quarter and the Danish Gambling Authority has been focusing its efforts on combatting the remaining black market and maintaining the high degree of channelisation to dot.dk brands.

We hope you enjoy this latest edition of the Market Monitor and don’t hesitate to get in touch if you have any comments or suggestions.

Click on the e-reader below to view the full Market Monitor.

Moves in some territories, such as the UK, Italy, Sweden, Spain and Belgium, place affiliates in the gambling regulatory spotlight, while other moves in relation to online advertising are similarly changing the nature of the affiliate landscape.

All this is taking place against a backdrop of slowing M&A momentum. The rise of the super-affiliate is closely tied to the regulatory embrace and has helped to create a market structure that is now more clearly defined than ever before between large and small.

The likelihood is that the current lack of deals is more of a pause and that more deals will be announced during 2019.

But at the very top of the tree Catena Media has said that its M&A strategy has evolved towards fewer, and potentially bigger, deals.

The regulation of US sports betting is one example of how new markets bring their own challenges and opportunities.

This report looks into the interplay between the online gambling regulatory backdrop and the affiliate marketing sector, and discusses how it has already adapted and how the market will evolve in the years to come.

Click on the e-mag below to view the full report, Under pressure: Regulation and the evolution of affiliate marketing

To find out more details please fill in your details below, alternatively, please email emma.dixon@clariongaming.com.

These moves reflect specific political-social backdrops to each of these dot.country markets as opposed to their different stages of maturity. In Spain, legislators were eventually receptive to years of lobbying by industry stakeholders following the emergence of the wider economy from the austerity imposed during the savage downturn of the global financial crisis. In the UK, legislators moved to plug the budget hole left by the cut in the FOBT max stake also due to be imposed from April.

By contrast, authorities' direction of travel over advertising remains the same in all of Europe’s regulated markets. Legislators in Spain (see p4) and Denmark are the latest to propose new restrictions on gambling advertising as more European regulators attempt to address growing public concerns regarding its prevalence.

If many operators had failed to understand the responsibilities which came with the freedom to advertise, they certainly do now. The UK sector has provided a hopefully salutary lesson for others of how to avoid shooting yourself in the foot by repeatedly failing to heed the warning shots and take the self-regulatory steps required. As once governments step in, “reason and logic can take a holiday with prescriptive nonsense”, as respected regulator Richard Schuetz put it in a recent social post.

The discussions being had in Europe on how to protect consumers through advertising and problem gambling controls are however largely conspicuous by their absence in the US at present, with Schuetz also making the point that in order to become sustainable, “[t]he industry should be in front of these issues, not behind.”

Staying with the US, we close this Market Monitor with a look at what pointers, if any, to how sports wagering will roll out there can be gleaned from what was until recently the US’ only regulated market, Nevada.

Click on the e-mag below to view the full Market Monitor.

Please click here if the page turner isn't working.

Regulatory restrictions have limited the involvement of online gambling operators from outside of the country. This report will delve into why strict regimes fail to encourage true competition, effective channelisation of players to locally regulated offerings and ask what lessons the industry can learn.

There are certainly valid concerns about consumer protection that can be addressed by a higher rate of channelisation to regulated offerings. It is, moreover, a well-trodden route for regulators across Europe and hopes that the Portuguese authorities will eventually see it in the same light are shared by the whole igaming industry.

Those operators and suppliers which have taken the brave decision to enter early and establish themselves will be hoping that an improved economic backdrop to the time of the liberalisation, as well as awareness of the experience in neighbouring Spain, will spur authorities to overhaul or revise the tax regime, acting as a catalyst for the regulated market.

E-zine contents

Introduction: Playing the long game

Part 1: The regulatory backdrop

Part 2: Portugal by numbers

Part 3: Channelisation and the offshore market

Part 4: The future

The e-zine can also be downloaded as a PDF from the reader below.

Related content: Sweden e-zine
Denmark e-zine

As Scott Longley points out, these are healthy numbers and with Spain having lowered the tax on most products from 25% to 20% and with Sweden applying an 18% tax rate when the market opens in January 2019, “the sector would appear to be winning the argument with regard to the equilibrium to be struck between the government coffers and the rate of channelisation achieved in any given market.”

That said, a growing sector fuelled by marketing and ad spend inevitably not only draws the attention of target customers but also legislators and activists.

While in Denmark this shift has led to measures being introduced aimed at exerting stronger controls over bonusing, in the UK this has ultimately seen the remote gaming tax head in the other direction and in Italy a blanket ban on gambling advertising introduced by the populist government.

The lesson for the wider industry is that with responsible gaming issues now moving the political and public agenda across Europe, the freedom to advertise the industry currently enjoys needs to be wielded sensibly and viewed through a far wider prism than the narrow metric of new player sign-ups.

Click on the e-mag below to view the full iGB Market Monitor

This edition focuses on Sweden, one of the most advanced digital economies in Europe, where the transition to a fully regulated market next year will see the grey market giants of Kindred, Betsson et al go up against two powerful former monopolies in the form of Svenska Spel and ATG.

The e-zine delves into the current state of the grey market and look ahead to what will be the shape of the Swedish online gambling scene post-regulation.

Talking to market participants and commentators, it gives a view on where consensus believes the Swedish market will head in the years immediately following regulation, and goes through some of the continuing arguments about how the market should be governed by the authorities.

E-zine contents

• Introduction: Profound and complex change
   
• Part 1: The new regulations
   
• Part 2: The current online market including estimated operator market shares
   
• Part 3: The position of the monopolies
   
• Part 4: A look ahead
   

If you can not view the eReader above please download the PDF here.

The 2018 edition also finds the businesses of those affiliates surveyed in rude health, with the mean monthly amount generated up 28% year-on-year to $150k (albeit skewed by the 14% earning more than $400k) with commissions on the rise and these having increased by 42% compared to 37% in the 2017 survey.

We also see affiliates adapting to changes in areas such as martech, with marketing platforms/automation identified alongside the opening of the US market as the industry trend and development affiliates identify as becoming increasingly important to their business.

The trends and developments they identify as already impacting their day-to-day businesses reflect the headline developments in the core UK market (69% targeting this territory), with programme closures, ad compliance and increased liability this year figuring alongside regulation.

Indeed, while respondents remain bullish about the outlook for the wider gambling industry, there has been a marked erosion in confidence regarding that for the igaming affiliate space, from the perspective of those surveyed on both the affiliate and affiliate programme sides.

Beyond the headline stats, the survey results also include a depth of detail and insights about the igaming affiliate space not available anywhere else. Did you know, for instance, that 50% of affiliates still don’t read the T&Cs before signing up to a programme?

Anyway, we will leave you now to trawl through these to find the snippets that are most useful to your work.

We hope you find the contents informative and as we soon embark on putting the next questionnaire together, please don’t hesitate to get in touch with your feedback at info@igamingbusiness.com.dev.synot.io

Stephen Carter, editorial director, Clarion Gaming

Click on the e-zine below or this link to view the full report.

E-zine contents

• Market size and growth
• Operator review including estimated market shares
• Marketing and affiliates
• Position of Danske Spil
• Regulatory uncertainties
• A look ahead

With the official market estimate of SEK5.65bn (€545m) likely on the low side for what has been one of the best-performing igaming markets for many years, Sweden’s market opening in January 2019 will provide a tipping point for regulation in the region.

With this shift will come a greater understanding of the value of the individual markets and how operator and supplier share of the grey space could translate into the regulated dot.se environment, with Kindred, Betsson and LeoVegas currenty the strongest positioned among the currently Malta-domiciled Swedish giants.

A tax rate at the lower end of regulated market levies to date of 18% GGR will benefit all stakeholders by supporting the channelisation of activity to Swedish-regulated entities.

These will of course include current lottery/gaming monopoly Svenska Spel and horse racing monopoly ATG. Kindred and Betsson are among the operators that have publicly bemoaned the potential for the former to parachute their competitive advantage and relationships built up over many years of monopoly into the regulated environment.

The non-monopoly operators have so far failed to gain assurances or clarity from Swedish authorities over whether Svenska Spel will be prevented from cross-selling slots and other products to players acquired via its non-competitive lottery business, which will remain under monopoly.

This means they will need to prepare for a repeat of the scenario in neighbouring Denmark, where Danske Spil was only stopped from pursuing this strategy after several years, by which time it had secured a dominant position in the market.

Questions also remain over issues such as the proposed bonus cap, argued by stakeholders at our recent Nordic Affiliate Conference as potentially encouraging the type of irresponsible gambling behaviours the policy is intended to prevent.

The mass-market presence of the monopolies, dot.com positioning of Kindred, Betsson and LeoVegas and a backdrop of slowing growth make it tempting to predict a polarisation of performance among operators similar to that seen in the UK where Bet365 and Sky Bet have left their more traditional land-based rivals flailing in their wake.

But this of course doesn’t tell the whole story in the UK, where the big operators’ focus on sports betting and consolidation caused them to take their eye off the ball and enabled a host of niche gaming and casino-focused brands to emerge and carve market share.

The Swedish narrative is likely to unfold in similarly unforeseen and unanticipated directions from next year.

Starting with the largest of these, the UK, what has become increasingly apparent since our last edition in June is that this is a market increasingly divided between two dominant brands – Bet365 and Sky Bet – and the rest. And while the double-digit growth days of the early years of this decade are now firmly behind us, the post-PoCT era so instrumental in driving consolidation among the chasing pack, an era we were told would see all but the very largest brands fall by the wayside, has seen many medium and small operators emerge to carve valuable niche positions in the market, particularly on the gaming side. The disruption caused by M&A is in part responsible for creating this opportunity, a factor in why it is often seen after the fact as “value destructive”.

In Denmark, a booming online casino segment continues to drive the market forward, with mobile gaining the traction (up to 34.5% of turnover) already underway in sports betting (55% of turnover). During the period, the regulator reported the results of a search into websites illegally targeting Danish players with gambling products had returned a “low” number, with the number slightly higher for those undertaking marketing on their behalf. It concluded that this indicated the effectiveness of the liberalisation in dramatically cutting illegal activity, adding that the increasing GGR, stable number of licensees and the participation of larger international brands within the market had also contributed.

Finally, in Spain the number of licensees will rise to 45 next year after regulator the DGOJ announced that 10 more licences would be issued following expressions of interest from a handful of (unnamed) international operators. The market is now beginning to pick up pace from a slowish start in 2012. DGOJ director general Juan Espinosa Garcia’s comments at a conference in October that a review of the tax regime is imminent will however have been music to the ears of all stakeholders. Paul Leyland at Regulus Partners has said that with a lower tax rate and more licensees, a doubling or tripling of the dot.es market over the next three to five years is entirely possible.

Click on the e-mag below for the full breakdown and figures from the iGB Market Monitor

Alongside the reviews currently underway by the Competition and Markets Authority (CMA) and the Information Commissioner’s Office (ICO), there remains the threat from the government’s long-delayed and much debated Triennial Review, which includes, for the first time, a review of gambling advertising on TV.

In August we will also see the implementation of the Point of Consumption tax on bonuses, which analysts say is likely to have a big impact on the sector.

The Gambling Commission has also been flexing its muscles recently, with the past two months alone seeing it put 888’s UK licence under review, fine BGO Entertainment £300,000 for misleading advertising and demand Lottoland pays £150,000 to good causes for breaching advertising and marketing codes.

Despite all these headwinds, the sector still appears to be growing, albeit at a slower pace than it has over the past five years. But given the maturity of the UK igaming sector and its now-enormous size at £4.5 billion gross gaming yield (GGY) per year, some flattening off was perhaps to be expected.

On the continent
In Spain growth has been a bit stop-start since slots were licensed in late 2015. After a promising start, slots rose quickly to be worth €16.8m in gross gaming revenues (GGR) in the last quarter of 2016.

However, by the first quarter of this year, the product’s rise appeared to have hit a barrier. Total slots GGR for the three months to March came in at €13.7m, a near 20% fall on the previous quarter. Although it still represented a 44% year-on-year rise, it suggests at least a pause in progress.

It wasn’t all bad news in Spain though with roulette, which is equally as popular as slots in the country, rising 7% on the previous quarter.

Now that all products are available in the Spanish market, the total market is expected to break the €500m barrier in the year ahead, although considering its population is only about 30% smaller than the UK’s but the latter has an igaming market more than 10 times larger, it’s fair to say that so far, Spain's market size has been underwhelming.

Partly, its growth is being stymied by high taxes — Spain’s tax rate is 25% of GGR, compared with the UK’s 15%. In a recent report, Spanish online gambling association Jdigital said this is one of the reasons why just 20% of licensees are turning a profit in the country five years after licensing first began.

On this front, changes may be afoot, with comments from Juan Espinosa Garcia, the new director at Spanish regulator Dirección General de Ordenación del Juego, prompting speculation that the authorities might look at lowering the Spanish tax rate.

Denmark still performing well
The online gambling market in Denmark is only slightly smaller than that of Spain, but with a population of 5.5 million compared with Spain’s 47 million, the Nordic country seems to be punching well above its weight. In 2016, the total online market in Denmark was worth DK2,967m (€399m) compared with Spain’s total for the year of €429m.

Previous editions of Market Monitor have noted that Denmark’s success is partly due to the fact it seems to have struck the right balance between business interests and consumer safety. The Danish market is likely to grow even further when the last element of liberalisation of the market takes place later this year and the markets for bingo and horseracing open up.

Click on the e-zine below to get all the breakdwon and figures from the iGB Market Monitor

The findings have been split into affiliate and operator reports to make them as clear as possible.      

Regulation, communication, trust, diversification and, of course, growing their companies. Those are just some of the key findings both affiliates and operators pinpoint as playing a major role in their day to day activities.

What is clear however is that confidence is high: 83% of affiliate respondents said they were ‘confident’ about the industry as a whole, while 71% were ‘confident’ about the affiliate side of things.

And while casino and sports betting remain core verticals for affiliates at 70% and 62% respectively, poker (34%) and bingo (33%) are next.

Interestingly, lotteries are just behind at 29%, reflecting the rise of secondary lottery providers increasingly challenging the monopolies in major markets such as the UK, Germany of Holland.

Key findings from the survey include:

the mean monthly income for igaming affiliates,
how many of them are currently considering becoming igaming operators,
the average number of operators they partner with,
key marketing channels for affiliates, 
how operators approach their work with affiliates.    
Regulation was identified as both an opportunity and a threat for affiliates’ future prosperity, with affiliates stating it was the biggest factor impacting on their businesses.

In particular, unclear/ambiguous legislation was cited as a worry, although clarity does not always work in affiliates’ favour.

The UK remains the leading market with 67% of affiliates targeting it, Germany is second at 43% and Australia is third at 39%.

We’ll leave you to trawl through all information and discover the nuggets that are most useful to your work.

We hope you find the contents of these surveys informative and feel free to send in your feedback at: info@igamingbusiness.com.dev.synot.io

Jake Pollard, Head of content, iGaming Business

Click on the e-zine link below to view the full report.

Our focus on Denmark is timely as it coincides with our inaugural Nordic Affiliate Conference and follows the announcement that Sweden will set in motion the legislative wheels to establish a regulatory framework for its igaming sector. 

What is striking about the detail of Sweden’s potential regulation is how reasonable the proposed tax rate will be: 18% of gross gaming revenues. This chimes with Denmark’s 20% tax rate and stands in contrast to other regulated (or soon to be) markets. 

This does not mean all is perfect in Denmark’s igaming sector, but the clear conclusion for countries looking at regulating their sector is that a business-friendly regulatory approach yields good results for all parties.

This is reflected in the Danish Online Gambling Association’s survey from 2015. It found that only 6% (out of 4,000 respondents) used unregulated betting sites. However, some 23% used unlicensed casino sites and 27% went offshore for poker, indicating that the country is missing some significant VIP action, a trend that is likely to be replicated in other regulated markets.

The UK meanwhile has other highly pressing issues, Brexit’s potential impact on Gibraltar being the most obvious. There have also been mixed results for operators and the topic of M&A – real, failed or potential; has clouded the picture further. With regulatory issues hanging over the market, a lack of major sporting event in the Summer and unclear economic conditions on the horizon, we lay the issues out but it is difficult to forecast with any certainty how the UK market will evolve.

We hope you find this Market Monitor informative and as usual are always open to your feedback and comments. 

Jake Pollard
Report editor

The iGaming Business Market Monitor is your quarterly series of reports that collates the latest data for market size and market shares across a number of major countries in Europe and further afield.

Click on the e-zine below to view your free copy as a subscriber to the Intelligence Centre.

A strong SEO strategy is as much the result of all the constituent parts working in harmony towards a productive outcome as it is about each of those parts working individually.

In other words, doing one element of a corporate strategy well is no longer enough and it is vital to think ‘holistically’.

This is because success is about combining all those elements across the igaming board, whether for operators, affiliates or suppliers.

For this report, Blueclaw has focused on what it calls the ‘four pillars’ of customer acquisition:

• On-site technical SEO,
• Content marketing, off-site SEO and link earning,
• Customer experience and engagement,
• Paid search and social.

It is not enough to do just one of these things well – it is the combination that makes the difference between success and doing ok, or worse. This is even more relevant when the industry is so competitive and players have so many alternatives to choose from.

All this comes at a time when operators are being squeezed for every penny, dollar or euro by governments desperate for tax revenues.

This is where affiliates can play a key role in helping them make best use of the data, optimise their acquisition process and put in place strategies that are scalable, while growing their own businesses.

Click on the e-zine link below to reads the report and you can pick up your own hard copy in the media area of LAC and in the conference rooms.

The iGaming Business Market Monitor December 2016 covers the UK and Poland and will update readers on the size of each market and the key factors in how they are set to evolve in the coming months

This issue of the Market Monitor details how igaming operators in the UK are set to be affected by a number of ongoing reviews and regulatory issues that are likely to bite in 2017.

Poland meanwhile is going through its own regulatory battles, as online-only sites lobby for change in the tax levels and system. 

Key topics covered in this Market Monitor include:

• UK market exceeds estimates, but is the growth sustainable?
• The various government reviews under way in the UK,
• Poland's unpopular turnover tax and its impact on the licensed market,
• The possibility for growth in Poland if a GGR regime is implemented,
• Other factors holding Poland back, and how these could change in the near future.

The iGaming Business Market Monitor is your quarterly series of reports that collates the latest data for market size and market shares across a number of major countries in Europe and further afield.

Click on the e-zine below to view your free copy as a subscriber to the Intelligence Centre.

Mobile is everywhere, it dominates the online betting and gaming space and shows no sign of losing its lead position anytime soon.

This is why iGaming Business decided to commission and publish this report. We wanted to look at why operators adopted a particular mobile strategy, why and how they reached the conclusions they did and the result those decisions have had on their businesses.

But rather than emphasising the fact that, for example, social media plays a key role in engaging punters on mobile, we wanted to go ‘under the hood’ and find out how operators assessed their tech platforms, payments systems or CRM set ups. 

Of course the report will not have all the answers to the many mobile-related questions igaming firms are looking for, but it will provide insights into how some big name operators have gone about approaching the topics mentioned above as well as advertising or data.

Along with all those insights there will also be salutary takes on avoiding the serious pitfalls that come with enterprise-wide tech projects, which can go badly wrong and affect major launches, functionalities and companies that are always under pressure to perform.

In this report you will learn about:

• Mobile CRM – delighting users with personalised content
• Don’t ignore mobile payments
• Data and development – thinking differently about mobile design
• Mobile advertising – a native future?
• Case studies: Ladbrokes, BetVictor, Sky Bet

Click on the e-zine link below to read the iGaming Business Mobile Gaming & Tech Report 2016: 

This September edition covers the UK, Australia and Spain and will update readers on the current size and potential of each market, key factors in how they have evolved over the past three months.

It details how operators are being affected by issues such as regulation, marketing costs or the introduction of new regulated verticals, such as online slots and roulette in Spain.  

Key topics covered in this Market Monitor:

• UK market: review of the size and issues in the UK
• Continued growth but new regulations will hit operators in 2017 
• Marketing battle – and costs – will be where operators fight it out
• Australia: the good – Sportsbet, the bad – William Hill, and the uncertain: PoC in South Australia before the rest of the country?
• Spain: online slots and roulette show benefits on regulation 

The iGaming Business Market Monitor is a quarterly series of reports that collates the latest data for market size and market shares across a number of major countries in Europe and further afield. Click on the e-zine below to view your free copy as a subscriber of the iGB Intelligence Centre. 

The report was written prior to Playtika being acquired by Shanghai Giant Network Technology Co, the Chinese consortium that paid US$4.4bn for Caesars Interactive Entertainment's social gaming division.

However, that deal does show how big the social gaming vertical has become in the past decade. While it is not at the peak it experienced around 2012-2013, the Playtika acquisition shows that social is a major, cash-generating sector.

But when it comes to volume and market share, it also means that the current major players, the likes of Double Down, Zynga or Big Fish Games; are likely to remain the dominant players in the field for some time. 

Of course this doesn't mean smaller independent studios or start-ups can't carve a space out for themselves, but to reach the size of a Playtika in 2016 is a much harder ask than it might have been in the past.    

Meanwhile the dynamics fuelling the sports betting and daily fantasy sports verticals have changed dramatically in recent times, helped by the growth and ubiquity of mobile phones, wi-fi and the wider social acceptance of betting as a leisure activity. 

For the betting-related networks or affiliates using social media to drive traffic to operators or to build up their businesses the focus is on generating enough traction that it produces sufficient volumes to generate margins.

No one knows for sure if they will be successful but the ideas they have come up are taken seriously by investors and operators, which might not have been the case a few years ago.   

Meanwhile DFS continues its astonishing reinvention, spurred on by DraftKings and FanDuel. The key for those two companies – and to an extent others such as Mondogoal or Oulala Games; although much of the focus will be on the first two mentioned, will be if they can make any inroads across Europe.  

The Social Gaming and Sports Betting Report 2016 addresses the following topics:

• A review of market leaders: How they came to dominate, financial performances, top verticals, key trends/challenges.
• Why social sports betting on Facebook never achieved traction, and why casino was successful.
• Sports betting in a social context: Why today's bettors expect more than a one-time transaction.
• The emergence of bet/tip sharing sites/apps where bets can placed directly using bookie APIs.
• A review of new products like football stock markets from Football Index and BuaBook.
• Key social media platforms, user growth and how they used for marketing to bettors and gamers.
• DFS:  An examination of its explosion in North America and whether it can succeed in regulated markets.
• Is DFS a popular social product? Does it compete with sports bettors or compliment that activity?
• The outlook for social gaming and betting. 

Click on the e-magazine link to read your copy of the iGaming Business Social Gaming and Sports Betting Report 2016. 

The report covers the current size and potential of each market, reasons for growth and potential stress points for each of those countries. The UK Gambling Commission also published its latest industry figures on 30th June 2016 and we will be covering them in an addendum to this report.

Key topics that are covered in the report are:

• UK market: review of the size and issues in the UK
• Continued growth in the UK but future stress points are emerging
• Insights into resurgent Italian market
• Emerging casino trends in Spain
• bet365 dominance in Italy and Spain and in other markets make it a truly pan-European operator

This report is the second in a quarterly series of reports that collates the latest data for market size and market shares across a number of major countries in Europe and further afield. 

Online sports betting in 2016 has changed beyond recognition when compared with the industry that existed just seven or eight years ago.

Choosing that particular timeframe is not accidental: Apple launched the first iteration of its iPhone in 2007 and arguably transformed the igaming sector at a stroke.

The advent of the iPhone and its key (Google) Android competitor has made reliable, efficient mobile betting and gaming a reality.

This has had a major impact on the industry and when it comes to online betting, mobile is the platform operators are focusing on, with in-play acting as the conduit driving the action.

But if online betting is all about mobile and in-play for the operators, the corporate side of the sector is just as busy with consolidation, innovation and that most of vital of ingredients when it comes to recruiting customers, differentiation.

Whether it’s GVC acquiring, and appearing to turn around, bwin party; William Hill teaming up with NYX Gaming and Sky Betting and Gaming to acquire Openbet, CVC Capital Partners acquiring Sky Bet for £800m or tech start-up Metric Gaming launching a ‘super-fast, super live’ betting platform that is so fast and up-to-the-minute that competitors will seem slow in comparison, the betting sector’s eco-system is highly active and constantly looking to innovate.

The latest edition of the Digital Sports Betting Report covers all these issues and will provide you with regulatory updates for many of the world’s leading betting markets.

Key points include:

• Regulatory updates of EU, US, South American markets,
• Case studies of leading operators’ mobile betting strategies,
• Key trends in customer analytics; and many others.

Click on the link below to view the report.

IBIS's research showed that the sector as a whole recorded revenues of US$91.5bn in 2015. The amount represents a rise of 9% on 2014's figures and revenues per screen were split as follows. 

Revenue split per user-screens:   

• Computer screen: US$33.7bn, +7% YoY, 27% screen share 
• Entertainment screen: US$25.1bn, +2 YoY, 37% screen share
• Personal screen (mobile): US$20.6bn, +21% YoY, 23% screen share
• Floating screen (console, tablet): US$12.1bn, +14% YoY, 13% screen share

IBIS points out that mobile and online games will lead the charge when it comes to growth, M&A and finance raising totalled a record US$15bn in 2015, thanks to deals such as Facebook's acquisition of VR specialist Oculus, Amazon buying Twitch or Softbank buying up Clash of Clans producer Supercell.  

Further information on regional market breakdowns, projected growth across different platforms, multi-channel distribution levels, new entrants and further consolidaiton plays can be found by clicking on the e-mag link below. 

Bing's research looks at all igmaing verticals and reveals that poker searches started early in January while online casino searches picked up in February.

Sports betting searches were regular during the summer with volume peaking +16% from March to June while August was busy across all gambling categories.

The document also reveals with vertical is attracting the most mobile searches, the age groups using Bing for gambling search, the average CTR and CPC across key categories and many other nuggets of information.

Click on the e-zine below to view the full report.  

The bingo affiliate’s report is comprehensive in its analysis of the issues affecting the online bingo sector in the UK and analyses all the key issues that affected the sector in 2015.

Most notably there is the impact the Point of Consumption (PoC) tax has had on UK operators, but the report also delved into the advertising and marketing activities of those working in the vertical as well as relevant topics such as search.

The document also surveyed bingo players to find out what their “habits, likes and dislikes and playing Idiosyncrasies” were, including some exclusive insights.

WhichBingo also interviwed a number of the industry’s major players for their views on what the sector holds for 2016 and beyond.

Click on the e-zine below to read the report. 

The results of the research were analysed, edited and included in the 'Abandonment in Gaming' report that is viewable by clicking on the link below.

The mobile platform is now so widely accepted across the igaming sector and among players that it is easy to forget how much friction there still is; and how much revenue is still lost in abandoned registrations and deposits.

The report examines these issues, why they are happening and finds out what operators are doing to minimise the rates of abandonment.

Key points from the report:

• 24% of potential players are abandoning at the moment of registration
• Operators are potentially losing £98m due to abandonment
• User experience is key
• How Jumio can help

Click on the e-magazine link below to view the report and its findings in their entirety.