Media Corp goes West iGaming Taking
inspiration from online retailers
RETAIL L
ike so many of us in the industry, we are still attempting to unravel this digi-
tally connected world that we live in and how the latest trends such as social net- works and social gaming can provide some step change growth for the egaming sector and how this shall play out over the next 12 months as we watch the behemoths’ Zynga and Face- book ramp-up their strate- gies in traditional egaming in regulated markets. So it was of interest while ‘hanging out’ in a virtual network that I came across the latest research from For- rester Research Inc’s online e-retail report. It forecast that online shoppers in the USA shall spend $327bn (£203bn) by 2016, which would equate to a 45 per cent increase on the some $226bn (£140bn) spent in 2012 with an estimated eye
watering compound annual growth rate of some 10.1 per cent over the estimated five year period.
This by comparison is a substantial volume of trans- actions when we consider that the video games market could be worth $115bn (£71.4bn) and that most industry experts forecast- ing the social gaming market shall hit a mere $4bn (£2.5bn) by 2015. With a plethora of vendors, plat- forms and operators moving more aggressively into the social gaming space, they could be fight-
ANALYSIS
The concept of brand loyalty has always been a tricky one for the online gaming industry to grasp, where consumers have tended to gravitate to those sites that offer the best value. But as Ladbrokes’ ambitious GameOn loyalty card, which crossed both online and retail channels, it is not for want of trying. Amazon’s much feted (and protected) search logarithms might be a step too far for an industry with a dynamic product offering, but there’s nothing to suggest that an element of it cannot be emulated for the gaming industry. Indeed, retailers and gaming operators might find themselves working far closer to each other in a social network sector that everyone is interested in taking a piece of to retain and attract custom.
ing over proverbial scraps from the digital dinner plate of innovation.
The Forrester report says that much of the growth in e-retail comes from online retailers improving their web sites and services with rich media sales tools, mer- chandising and discounting from daily deal retailers such as Groupon and Liv- ingSocial driving the demand curve. Even the popularity of cash back sites such as Quidco and penny auction platforms such as Softmedia are also driving the online shopper
experience. By compari- son, many online betting systems can appear some- what dated as they are too technical, complicated and intimidating for the average online shopper or would-be social/casual gamer/player may prompt more
transformational
user interface design from the igaming sector to tap into this large online shopper user base that have made real-money pur- chases andnot virtual ones. Interestingly, the report further citied the develop- ment of online loyalty pro-
grams such as Amazon Prime, the e-tailers shipping club which offers a two-day shipping for a set annual fee. Around 12 per cent of online shoppers stated they belonged to these type of programs, which is an encouraging statistic given the inherent and promiscu- ous behaviour exhibited by online gamblers who have multiple accounts and con- tinue to seek the next sign- up bonus. With the increasing popu- larity of smartphones and tablet computers among consumers, maybe it is time that the igaming industry perhaps learned from the e- retail sector in order to broaden their appeal, develop category manage- ment and further under- stand the drivers that encourage those shoppers to purchase, could pay divi- dends in the long term for sustainable business growth for the sector.
Ongame finally finds a buyer B
POKER
win.party has finally managed to offload its Ongame B2B online poker network after Amaya Gaming agreed to pay up to 25m euro (£20.0m) for the business.
Bwin.party had originally agreed a deal with Shufflemaster, the US casino equipment supplier, earlier in the year for a potential 30m euro (£24.0m). But the buyer unexpectedly pulled out late in the process, despite already signing deals with other firms depending on the acquisition.
The buzz then in the industry was that social gaming firm Zynga was lined
JIM RYAN: ‘ONGAME WILL FIT WELL INTO AMAYA GAMING’
up for entry into the cash gaming world, but it appears Amaya Gaming, which has been on its own acquisition spree of late, was the only serious buyer left.
Jim Ryan and Norbert 8 BettingBusinessInteractive • OCTOBER 2012
Teufelberger, the Co-CEOs of
bwin.party, said: “The sale of Ongame conforms to our strategy, especially as we move closer to launching our single, proprietary tech- nology platform in the next
few months. We believe Ongame will fit well into Amaya Gaming and has an excellent future ahead.” Ongame’s global network includes 25 of the sector’s strongest brands, owned by a total of 19 operators, and also operates regional net- works in France and Italy. Amaya Gaming CEO David Baazov added: “The acquisition of Ongame bol- sters Amaya Gaming’s product portfolio, trans- forming Amaya into a leading provider of gaming platforms. Amaya looks forward to unleashing Ongame’s technology to its full potential through the
leveraging of our many B2B relationships and deliver- ing new partners and players to the network. The Ongame platform is scala- ble, proven and secure and is well suited for quick deployment in new regu- lated markets. We’re excited about the wide range of opportunities this acquisition makes possible for us as we execute on our vision.”
Amaya is only paying 15m euro (£12.0m) upfront for the business with a further consideration of up to 10m euro (£8.0m) if online poker is legalised in the US within the next five years.
Media Corporation, the listed operator which controversially shut down online casino Purple Lounge and is still waiting to launch its new Intabet website, has announced that it has moved its registered office to 49 Carnaby Street, London. Phil Jackson, chairman, commented: “Not only does the move provide more competitive rental payments, but it puts us in closer proximity to our peers and customers in the media and gaming industries.”
AMAZON PRIME IS A LOYALTY SCHEME WHERE CUSTOMERS PAY FOR ADDED BENEFITS
iGAMINGBRIEFS
ASA MONITORING GAMBLING ADS
Mark McGuinness, managing director of eMainstream Marketing, believes there are lessons to be learned from the way online retailers conduct their business in the igaming industry.
In a recently published document on the ‘hot topic’ of gambling, the UK’s Advertising Standards Authority (ASA) said it will continue to keep an eye on the sector. It said: “The Code rules are a robust interpretation of the requirements in the Gambling Act 2005. We worked closely with interested parties to ensure that the rules were socially responsible and protected children. There have been no major causes for concern, but the ASA remains aware that gambling is an age restricted product from which children must be protected. The ASA will continue to pro-actively monitor gambling ads in order to ensure compliance rates remain high.”
KOMBISPEL GETS ONLINE
Swedish lottery operator Kombispel has launched a new website offering a range of bingo, scratchcard and side games along with a selection of interactive lottery titles. Powered by Genera Networks AB and using the BingoFair online gaming platform, the lottery is hoping to make a splash in the online sector. Kombispel, which was formerly called A- Lotterierna, signed up with Genera as a technology provider for four years. Kombispel chief executive officer Anders Jansson commented:
“
Kombispel.se is an important project for us. Now we can fight for market shares and reach new players online.”
PKR GETS APPY
PKR.com has launched a new freeplay roulette app for Apple devices with a real-money version expected to go live before Christmas. Using Unity Engine software, the app recreates the PKR style used on its poker tables with players creating a fully customisable avatar and using that to navigate the gaming floor. The application comes with 50 Apple Game Centre achievements for players to activate and in game points that can unlock bonuses, such as extra avatar options and different tables. There is also a full tutorial that talks new players through how to play the game. A Blackjack app is expected to follow after the launch of the real money version.
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