PAYSAFE GROUP
Complementing or competing
Lorenzo Pellegrino, CEO Digital Wallets & Income Access, Paysafe Group, looks at uniting online and land-based gaming.
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Games that can be played across gaming machines, desktop platforms and mobile apps consistently out-perform single-channel games
“ ” 84 MAY 2018
he gaming and betting landscape has shifted dramatically since British bookmaker Ladbroke opened its first high street betting shop in 1962. So much so that in 2017, Ladbrokes (now Ladbrokes
Coral) agreed to a £4bn deal with GVC to create an online-led global gambling giant, combining Ladbrokes’ high street and online operations with GVC’s brands, including FoxyBingo, Sportingbet and PartyCasino.
Facing the online competition
In trends similar to those previously experienced across the retail and banking sectors, the number of land-based (brick-and-mortar) betting shops across the UK decreased by 3.9% between May and September 2017. Elsewhere around the globe, the numbers show a similar drift away from brick-and- mortar premises.
In comparison, the online industry has continued
to grow. In the UK, active online customer accounts across remote casino, bingo and betting operators have grown from 21 million in 2015 to over 28 million in 2017. From April 2016 to March 2017, the UK online industry earned £4.7 billion, and is expected to exceed $4 billion by 2020 in the US, despite complex laws. Despite its growth, online activities only make up
34% of the UK market – the other two-thirds still belong to land-based operators. And in the US, the casino industry actually registered a 4% year-on- year growth between 2016 and 2017.
Keeping the players happy
Whether players choose online or land-based gaming, it’s clear that there’s significant revenue opportunities. To reap these benefits, operators must focus on continuously improving the user experience to build customer loyalty within each model. Like the buyer’s journey, the player’s journey is no longer linear, particularly amongst the younger demographic who switch between a laptop, smartphone app, and casino. They expect to be able to transfer the game they’re playing throughout,
while still using their credits, bonuses and their favourite digital wallet to pay. Although unique user experiences can help
operators thrive in the digital age, there’s also a case to be made for greater convergence between land-based and online spaces. Games that can be played across gaming machines, desktop platforms and mobile apps, consistently out-perform single- channel games. The popularity for omnichannel experiences like
this are not the only reason that synergies between online and land-based gaming are increasing. According to a study, each model attracts different types of players and serves different consumer needs. Players who start in a land-based environment tend to be more brand-loyal online — a distinct advantage in a fast-moving highly competitive space. By contrast, online gaming tends to appeal to younger, more affluent players such as millennial and Gen-Z gamers. It’s these players in particular that enjoy consuming entertainment on the go, having grown up with the most sophisticated games ever made, their expectations are high and their patience is low. They tend to like games involving an element of skill and for online operators, this has meant fusing wagering with games involving decision-making. Land-based premises have also been stepping up
the experiential side of gaming, which is arguably where they have an edge. Adapting to these tastes and expectations is critical, or as Valery Bollier, CEO and co-founder of Oulala games put it: “the gaming business will fall off a cliff...”
Complementing – not competing
In its landmark deal, Ladbrokes Coral and GVC are betting £4bn on online and land-based gaming models complementing, not competing. The customer experience is crucial – players want to move fluidly between real world and online gaming. They now expect operators to not just be present across both, but to provide friction free top-class experiences which surprise and delight them throughout the whole player journey.
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