Custom Live Casino Environments Avanti Studios
and jurisdictional compliance that play an even more crucial role in delivering true value to op- erators.
On the face of it, these things all sound like
JONAS DELIN Co-Founder Avanti Studios
In a live casino market that has become increasingly saturated with the same small set of near-identical games in recent years, it’s not uncommon to hear suppliers talk about how custom environments can be a potential route to differentiation. What isn’t as discussed, however, is what value this brings to operators in real terms, and whether the same suppliers championing differentiation are actually equipped to deliver it in a way that’s both scalable and cost-effective.
When we speak about custom environments
in live casino, the first place people’s minds tend to go is branded tables and studio set-ups that have been designed to tie-in with seasonal events or promotions. While these aspects are both un- doubtedly important, I’d argue that there are other elements of differentiation such as table capacity and stake limits, language localisation
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they should be relatively easy to adjust based on operators’ requirements, but you have to remember that traditional live casino isn’t like any other iGaming vertical. When you’re working with physical studio set-ups and real dealers, even introducing something as simple as a new mini- mum bet can be a major undertaking, as it either requires changing one of your open tables or starting a totally new one and staffing it accord- ingly.
SCALABILITY OFTEN COMES AT A COST
A great example of the impact these limitations can have on operators’ bottom lines can be found in blackjack. Tough the costs of running a black- jack table are the same as any other live casino game, that is to say the number of staff multiplied by their salaries, the unit economics behave very differently due to the fact that the maximum number of seats is typically capped at seven.
Tis means the income potential is limited and the minimum bet must be raised to compensate. As a result, the majority of networked blackjack
Should an operator wish to offer lower limits
within this model, they therefore have no other recourse than to purchase dedicated tables direct from the supplier, and this comes at a high cost in terms of both set-up and fixed monthly charges.
What’s true for bet limits is also the same for
language-specific tables, again particularly in the case of blackjack. For a traditional live casino studio to offer blackjack en masse where the dealers speak a particular language, they either have to build a local studio to facilitate a large number of regional dealers or recruit native- speaking ones to one of their international studios. As you’d expect, both options are expensive, and it’s always the operator who has to foot the bill.
Another major hurdle comes in the form of
certain markets, including several of the legalised U.S. states and Spain, requiring that live casino studios be based within their specific jurisdictions. Tis creates operational complexity for the supplier, removes economies of scale and increases oper- ator’s costs, particularly in markets where the price of labour is high. Using a traditional live
tables are only available at higher stakes to ensure that the unit economics are viable for the supplier, with seats at the few lower priced tables across the network being oversubscribed.
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