INSPIRED MERKUR Focus
and Mr. Alvarez believes that Sisal was justified in making that choice as it is now at the forefront of the VLT roll-out.
"The decision by Sisal to choose Inspired has been borne out, not just in the Open platform being one of the first into the VLT market, but also in the fact that we are now under new ownership," outlined Mr. Alvarez. "We have a very strong balance sheet and considerable financial resources following the acquisition by the Vitruvian Partnership, which has a €1bn fund. We have the financial flexibility to work with concessionaires at every level. I think the defining factor inn this new market will come down to incomes. What will be the overall VLT income and what degree of stability does each of the different suppliers offer to the concessionaires? The quality and attractiveness of the venues will also shape the market.
“We already see different concessionaires taking different approaches to the fit out and style of venues. Each of the suppliers is also taking different approaches to cabinets and games. How much money these different machines make? Most will take decent money, but there will be a few that will be exceptional. We aim to be exceptional,” states Mr. Alvarez.
“The economics I believe are fundamentally sound and I'm hopeful for the future,” he continued. “I think that the concessionaires will make good money and in turn the government will value the industry for its tax returns. I foresee the government and industry agreeing upon a new set of licences and another phase of vlts in the next couple of years, in order to grow the core market. Over the next 3-4 years the Italian government will decide the game control, rigour and terminal control, switch monitor and tax from Comma 6b is the ideal model and will extend it to include Comma 6a, with those machines on lower stake and prize moved on to Comma 6b platforms. It's clearly going to be a big change, but we'd like to see Italy going fully server-based."
THERIGHTENVIRONMENTFORSUCCESS In terms of legislation, it appears that Italy has, in general, got things right. The technical rule book is sensible, stakes and prizes are positive, which creates and allows machines to take a good amount of money for concessionaires and suppliers, while offering an exciting game for players. The scale of taxation is sensible while the level of detail of technical regulations, which is much more detailed than most other markets (perhaps excluding New Jersey) are exhausting, and have meant that the
G3i I ISSUE 2 I PAGE 25
“We already see different
concessionaires taking different
approaches to the fit out and style of
venues. Each of the suppliers is also taking different approaches to
cabinets and games. Howmuchmoney these different machinesmake?
Mostwill take decent money, but therewill be a fewthatwill be exceptional.We aim to be exceptional.” Luke Alvarez, CEO InspiredGaming Group.
barrier to entry has been high.
“The market in the UK is half-server based and while highly regulated is actually much less technical than Italy,” explained Mr. Alvarez. “The only real problem I see in Italy is that gaming duty is payable on turnover rather than gross win, which has constrained many types of games and is a mistake. It's a difficult concept to explain to non-gaming specialists, that you're going to make more money if you tax gross win - arithmetically it doesn't make sense, but it is true. Interestingly, if you look at other markets, regulators have got that message and have put tax on gross win rather than turnover."
Most european governments are running deficits and see gaming as a great way to raise tax. If they regulate the market they take control of player protection and tax collection in one fell swoop. However, the only secure way to address gaming fully is through server-based systems. “If governments persist with unconnected systems, there remains lots of opportunities to evade tax and mislead the players,” outlined Mr. Alvarez. “If you want your regulation to put in place measures to protect and collect, you need to go server-based. It looks as if the Greek government has got that message."
GREATBRITISHGAMINGCOMPANY There is something about the UK, it is a great market for gaming with major online and land-based sectors, arcade, casino, sports-betting etc. thanks to its highly regulated light touch regime; but it has of late produced relatively few exporters of gaming product. "There's a lot of technological expertise in the UK and we innovate very quickly," stated Mr. Alvarez. "Inspired is a tough little British champion exporting to new markets such as Italy. We're excited about that.”
“Inspired has 15,000 newterminals
contracted for the UKandwe aimto
have circa 20,000 connected in Italy. We also have a big
growth areawith the newdeal in Australia with e-bet in next coupe of years,
server-based South East Asia casino
markets.You'll see Inspiredmaking a series ofmajor
announcements in the next year."
Luke Alvarez, CEO InspiredGaming Group.
Having become a leading world expert in server-based platforms, Inspired is looking to export this expertise to global markets, competing with the big box manufacturers on participation based models. In the UK, Inspired operates over 50,000 machines on participation over half of which are sever-based. "There's certainly growth in the tank in the UK,” commented Mr. Alvarez. “Inspired has 15,000 new terminals contracted for the UK and we aim to have circa 20,000 connected in Italy. We also have a big growth area with the new deal in Australia with e-bet in next coupe of years, server-based South East Asia casino markets. You'll see Inspired making a series of major announcements in the next year.” Merkur Inspired’s signing of a new BetPlus contract is featured in this month’s news.
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