POLITICS AND GAMBLING…
are real and so is the money. Not all game players are the same and being able to cater for many different needs gives online gambling organisations an advantage over land-based companies. It’s also not possible for land-based casinos to have the vast number of games that online operators can provide. Existing casinos aren’t about to go under as a
result, however. Particularly with poker, there is a groundswell gaining momentum that says that people who begin playing in a virtual casino may well start playing in the physical environment. This is a view definitely taken by casino operators in the UK. Land-based casinos, therefore, need to ensure they
have the right management talent on board that is able to grow an existing business, at the same time taking advantage of an online gaming trend that is not about to fizzle out any time soon. UK and other European gaming companies are
strategies given the huge emphasis being placed on data and social engagement. European executives have an advantage over their US colleagues in that they have had more time to accumulate and master the required technical knowledge in a real-time setting. They know what management skills are required and how to retain that talent, they are experienced in developing mutually beneficial agreements with key suppliers (effectively locking competitors out), and they are very familiar with what it takes to create an early base of online customers and how to prevent those customers from jumping ship to competitor operations.
“Internet gambling might be virtual, but the players are real and so is the money”
But there are many other skills managers need to
have to capitalise on the nascent US online gambling market. The growth potential from smartphones and tablet PCs is enormous and will be a defining point for gaming organisations in all markets. Through high-quality live streaming video, players on the move will be able to gain instant access to their favourite table games, interacting with experienced dealers in real-time. Additionally, having significant experience in online marketing and social media networks is crucial. A number of IT research companies are predicting that social networking services will rapidly become the primary vehicle for interpersonal communications. Internet gambling might be virtual, but the players
60 OCTOBER 2014
aware of the looming changes in the US and the possibilities of a management ‘brain drain’. Their cause has certainly not been helped by the UK government’s introduction of the Point of Consumption (POC) tax (effective 1 December 2014), which some experts believe will have a major impact on the online gaming industry. Current operators in reputable jurisdictions such as Gibraltar and Malta argue that the POC tax is not sensitive to market forces, and that it will simply reduce the revenue and profits of licensed operators to a point where they cannot compete with unlicensed operators in the extremely competitive online environment. Those companies unable to profitably compete will face an uncertain future, as will their executive teams.
There is no doubt that the global online gaming
sector is a dynamic and rapidly changing business. As the popularity of both gambling and online entertainment grows, companies will face unquestionable consumer demand that will require appropriate management expertise to capitalise on. Despite the unpredictable political hurdles facing the industry, investment in the sector remains attractive for all concerned; not just the operators but software and technology companies and many others. Everyone will be keenly watching how the industry develops, particularly in the US.
Jim is founder of Exeter Partners, headquartered in Boston, and is an associate partner with London-based executive search firm, Tyzack with whom he has successfully led numerous senior level global searches in the Americas, Caribbean, EU, Africa/Middle East and Asia/Pacific in the Gaming, Hospitality and Leisure Industries.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70