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Analysis


OFFLINE/ONLINE


suppliers in the B2B sector? What do they need and what are the pitfalls to avoid?


Does their product work? The very nature of online gaming allows potential investors or operators to have easy access to a wealth of information which is available online. As part of their research you should be looking at which companies are offering your chosen suppliers games. NetEnt has a list of some of their customers available on www.netent.com which would allow anyone to see where our games are operating, how they look and feel as you will be able to play them both on our site and our customers site, usually for free.


When you are looking at an operator’s casino site, you will often find a “most popular” tab or “most played”. Look through a variety of operators (that are not producing their own games) and you will see which games are performing well. If you are not familiar with the titles, there are various websites that will tell you who produces the game.


Looking into a company’s performance will also give you a good indication of who to choose. NetEnt, for example, are listed on Nasdaq Omx Stockholm and moved from Small Cap when they were first listed in 2009 to Mid Cap in 2010. If a company is listed there is a wealth of information available either directly from them or various analyst websites.


reduction in the initial investment needed. Small operators should also consider that if they do sign up with a larger operator, they will have access to pooled global jackpots which are linked between multiple operators and are only open to operators with a larger monthly casino result. NetEnt for example will be launching Hall Of Gods this year which will have an estimated global jackpot of €6.3m!


G3i: How do you see the online sector developing as more and more land-based operators offer their services online?


The online market in general is set to expand as various driving forces come into play such as increased broadband capacity, greater Internet penetration, more confidence in online payment services and regulation. In addition to this, there are other groups of players becoming evident playing online in all areas including the casino. It’s no longer just the young men playing.


Offline operators will also be able to offer their VIP players access to another area


where they can play and by doing so create another potentially lucrative revenue stream for the casino. At NetEnt we can configure games and coin values depending on the operator’s client base.


G3i: Should land-based operators be looking to establish the same games and offers online - or be looking to complement their offer with new products and service?


Land-based operators should be looking to expand their offering. They will be able to take advantage of the technology that is available online that cannot be used in an offline casino environment. There will be different slot games available with different functionality and the possibility of creating a different player experience such as pooled global jackpots and multiplayer games. All this can be taken advantage of with the added benefit of keeping your offline identity, but at the same time raising your profile and reaching a much larger player base.


G3i:What are the questions land-based operators should be asking online


G3i I ISSUE 2 I PAGE 51


“Anyone looking at the online sector


must be prepared to make a significant investment. New investors are


increasingly finding it difficult as established


operators have the


advantage of having alreadymade the investment in software and


market positioning and thus have the


cost advantage of having already


benefitted from expansion.”


MarcusHonney, Net Entertainment.


Anyone looking at the online sector must be prepared to make a significant investment. New investors are increasingly finding it difficult as established operators have the advantage of having already made the investment in software and market positioning and thus have the cost advantage of having already benefitted from expansion.


Games are the focal point... but online promotional support is mandatory as well. NetEnt provides online promotional packages for operators to use in their marketing activities. Whether it be online or even TV! Some of NetEnt’s slots have been promoted on TV with good success. This can be measured by our reporting tools that showed increase play during the times the adverts were played on the television.


In summary, online customers require entertainment as they are always looking for a more, better and faster experience so it is therefore important to find a supplier that adapts to that strategy and enables operators to be successful in their online ventures. A great product mix of games is essential enabling both acquisitions of new players as well as player retention such as we offer at NetEnt.


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