Tag: Interviews

An increasing number of industry titans in recent years have moved into video games and many video game outfits have turned their eye to offering ‘gambling’ elements within games. With these moves and the rise of social/mobile gaming bringing these industries closer to traditional gambling and igaming, what is there to be learned from this growing convergence? Andy Sekula, Head of Games at Kalamba and Vladimir Malakchi, CCO at Evoplay offer their thoughts.

Has the global video game boom influenced the design and development of today’s games? Gamification has been a focus for iGaming developers for some time, has this been driven by the rise in video game popularity?

Andy Sekula: There has been a lot of work invested in video game development over the years in regards to all sorts of progression and collection mechanics, with the ultimate goal being to reward players for specific behaviours. The primary goal for that industry is essentially the same as ours – to entertain and engage – and to that end, we can learn from video games just as we can from other products and services that compete for leisure spend such as movie streaming platforms like Netflix.

While the nature of certain AAA video games is sometimes significantly larger in scope – think Grand Theft Auto, for example – the same principles of attracting, engaging and retaining players remains and is in a sense more difficult for iGaming studios as we have to pack the same amount of involvement into a product that is smaller in scale and by nature is shorter in terms of average playing sessions. Despite this, many slots are now a world apart from what was produced 10 or even five years ago and highlight the creative talent our industry possesses.

Vladimir Malkachi: When it comes to popular culture, the video game industry is no doubt one of the most influential verticals, especially gambling, as both gaming and gambling belong to the same concept of entertainment, where  audiences from both worlds intersect with each other. After all – the convergence is obvious – both video game and casino players seek the same goals – fun and gaming. However, those who choose gambling games also want to experience the thrill of betting, which offers a whole new dimension.

From a technological point of view, iGaming companies continue to follow the video game industry and adopt their solutions, such as development, game engines, features, graphics, and sound to create an experience similar to the one seen in the video game world. Casino and video game developers also take a similar approach to storylines – they search for innovative, creative, and exciting themes that can provide a fresh and immersive experience to players. iGaming has also inherited the trend of in-game purchases, such as shops and loot boxes, a vivid example of this is the bonus buy feature you see in several casino titles these days – which again shows how much the verticals are converging.

In general, the video game industry is a trendsetter and a source of ideas and inspiration to those within the iGaming space. It attracts both Millennials and Gen Z players, who share many audiences and demographics with many gambling brands.

Licensed games, chosen correctly, can be valuable investments for studios. We have already seen classic video game IPs feature in some slot titles in the past – is this something that can be leveraged further? Must it be something more than just window dressing?

AS: This is quite a tricky thing to do well and there haven’t been too many successful examples of IPs moving from the video gaming world to slot games. Whether this relative lack of success so far is the reason why it hasn’t been leveraged more, I’m not sure.

Done right, I can see some potential in classic universal IPs like PacMan or Donkey Kong but for more modern brands such as the likes of Pokemon, you wouldn’t see it appear in slots until it’s not resonating with a younger audience anymore and when the generations that played the original game are old enough to play video slots, such as with Space Invaders or Street Fighter II.

VM: It’s always exciting when the audiences of two popular brands merge together into one type of entertainment – especially when it comes to something from the wider cultural world being integrated into iGaming.

As well as attracting wider audiences from the outside world, it certainly benefits game providers, giving them a larger media presence and in turn creating wider interest from the outside world, which is especially beneficial if you’re a listed company and as a consequence, as it can directly affect your company’s profitability and volume.

However, alongside the benefits that can be achieved by securing brand rights with third parties, we do need to take costs into account. The average royalty to be paid off to the contractor is 3-15% of the GGR, with joint approval needed from both sides, which can certainly affect the potential for a partnership, and indeed the bottom line.

Saying this though, the benefits usually outweigh the costs, and I’m sure we will see more deals of this type in the future, but considering everything mentioned above, it might not be for everyone, especially those who are just entering and establishing themselves on the market. The key, as always, is identifying your audience and followers and creating a gaming experience that resonates with their values.

Betting on people playing games (esports) has for some time proven hugely successful. What impact has this had and could have going forward, on traditional gambling as a whole?

AS: Betting on outcomes, as we’ve seen with traditional sports betting, has been around long before esports (or even electricity!) appeared, but now it’s established, esports is an ideal focus for sportsbooks since there’s a lot of both skill and luck (randomness) involved –  so its a perfect vehicle for evolving the betting industry. I think given the different demographic that we see watching and being involved with esports, there’s the prospect of opening up igaming and betting industry offerings. This would mean the emergence of a whole new sector of players/bettors and consequently the potential for new styles of games/experiences to suit. It will be interesting to watch it evolve.

VM: Without a doubt, the implementation of gaming-inspired features into casino products can significantly expand what’s on offer, and as a consequence, attract new players. This is especially the case when it comes to the spirit of fixed odds and sports betting, and when incorporated into gaming titles, can help go a long way to reaching sports betting fans who might want to give gaming a try.

In our view, instant games are among the best examples of how this approach can be carried out. Players can choose types of bets, which provides them with a gambling experience similar to betting on sports, which in turn makes them feel right at home without any major learning curve required to start playing a game.

The value of such products was analysed heavily during 2020 when sports events were canceled, and bettors needed to find a substitution for the hobby they used to entertain themselves with. Subsequently the adoption of betting mechanics in casino games’ introduced casino brands to the sports betting market and simultaneously covered its audience’s demand – we’ve seen the success it has had during the last two years, and there’s no reason for that not to continue even with sports back, as we are entering a new era of gaming where such transitions are far easier than before.

A recent study declared that video gamers are up to 4.5 times more likely to participate in betting and igaming. How can this new demographic of potential players be best approached?

AS: To some extent, this could be two things: being literate with technology and already being introduced to the concept of gambling (like gatcha boxes) and competition (leaderboards) that they have already been exposed to and are experienced in. Or maybe it’s more about the preference for electronic entertainment (deemed the ‘spiritual opium’ by Beijing regulators). Either way, it’s another sector of players for us to understand and to do our best to accommodate.

VM: As we’ve mentioned, there’s plenty of intersection when it comes to audiences and demographics, as at the end of the day, all users are after one thing – entertainment. This means that everything starts with a product that can both encompass and be adapted to players’ usual patterns of expectations for the gaming experience. It is evident that both video gamers and sports betting fans have their own preference – gamers especially look for a storyline, strong characters, and a clearly-defined challenge – while sports bettors will always gravitate towards ‘live events’ and the thrill of taking on the ‘house’.

In line with this – when robust analytics of audiences and demographics are applied, companies can learn where users can be found and the methods behind attracting them through specific messaging and themes. This requires analytics-based marketing, as well as creative and technological solutions, which will of course vary across product type and the desired outcome.

Online, social gaming is a place where many gamers meet up, forge friendships and communities – to what extent can this be mirrored within igaming?

AS: Basically, a brick and mortar casino creates an environment where players can gamble in a social setting, which additionally reinforces many emotions. This can be, to some extent, recreated within the live casino vertical, where people chat and bet on the outcomes of the casino games and their variations in real-time. We can also see some efforts being made in order to make slot games more of a social experience, where people can not only watch and chat with the streamer but can also bet with them. There’s great potential for experiences like this to be developed.

VM: Socialisation is an established concept in the video game industry, where multiplayer gaming has almost become a must-have offering and certainly has become an event that players expect when certain games are released. A wide variety of platforms designed for communication between players is key to making this happen – with forums, chats, and online communities allowing gamers to interact with each other.

Steam set the trend for socialisation in the gaming vertical, providing an opportunity for players to discuss games, share their opinions and give recommendations. Twitch has continued this trend, as well as attracting gambling streamers, once again demonstrating how the two audiences often intersect. The content on Twitch attracted fans of casino games, which gave rise to the communication between gamblers.

Today, the social aspect of gambling continues to grow, which will no doubt continue to see growth continue given the demand. The pandemic and insufficient levels of communication due to lockdowns have only enhanced the demand for socialisation within iGaming, as it’s become quite apparent that modern players seek to exchange their playing experience.

In our two-part series on Spain, Mario Benito, CCO at R. Franco Digital, explains how industry veteran R. Franco Digital is managing to keep pace with increasing restrictions at home while expanding its horizons internationally.

Talk us through R Franco’s 2021 – what were the highlights and do you feel you closed the year with some great success?

The year 2021 was another successful one for the team at R. Franco Digital. We had some massive slot releases including Buttom’s World, Jurassic Slot, and one of our first sequels, Wild West 2. Wanabet, a Spain-focused operator brand also secured an invaluable partnership with FeelSpin to integrate its technology with us, which has greatly helped us boost what we can offer when it comes to live casino. We also partnered with a great list of leading operators, a particular highlight being with our friends the Sisal Group, who now offer our extensive catalog of innovative releases across its regulated markets.

The icing on the cake, and indeed something that we’re absolutely delighted about has been the acquisition of our Gaming Supply License from the Malta Gaming Authority. This has in turn led to us being able to offer our leading online gaming portfolio to a broader international audience than ever before, and the uptake so far has been excellent. Given our heritage as Spain’s most established gaming company, our brand name has served us well in entering new territories, and we plan to continue with that momentum for the rest of 2022.

Looking over to Spain, how has the market weathered the COVID situation, and do you see the potential for this year to return to business as usual when it comes to online?

The online gaming market offers entertainment, and that’s been a key demand through the last two years. The sector has no doubt seen a boost in player engagement, and we’re seeing increasing numbers of demographics giving the iGaming world a try. This to us, and especially in Spain, represents increasing confidence in the online world, and indeed for land-based players adapting to a new preferred channel for gaming.

However, that’s not to say retail and land-based won’t rebound. The great victim of the pandemic in our industry has been land-based casinos, due to the limitations of capacity, if opening at all in some cases. However, the numbers we have seen from Q4 2021 indicate that this trend has improved since 2020’s challenges, and we’re confident of a return to normality.

Given Spain’s heavy marketing restrictions, has that affected the market’s ongoing evolution, and has it proven a challenge for marketers to get their message out?

Understandably, restrictions on advertising and marketing have presented a challenge for all domestic operators and it appears that only those with a large enough customer base in place have been able to remain profitable. From the point of view of the acquisition of new players, the restrictions have deemed it impossible to monetize promotional campaigns for both sportsbook and casino that are tier two and tier three operators, and that will no doubt have an effect.

Likewise, the restrictions in the advertising of sporting events have forced larger operators to compete with smaller operators by running promotions with affiliates. This was previously a marketing tool used by mid-sized operators but is now a key part of advertising for all companies.

There is no doubt that the biggest challenge has been adapting to advertising restrictions, in a fast and legal way. The ability to do this and change so quickly has been one thing that has always surprised me about this sector.

Given the recent news from the Spanish regulator on the introduction of loss limits – how much do you see that affecting players who back heavy favorites and also betting exchange customers?

I believe that this only affects the behaviors of players that it was initially intended for. We believe customers who enjoy our products are players who like to gamble for entertainment purposes only, so this type of limitation should not affect us or them in any way. At the same time, whenever this type of news comes out, it does affect public opinion of gambling through the fact that it is being restricted, which may imply that it needs further prohibiting or sanctions. As we see it, restricting businesses should not be the objective of any Government, however, we of course welcome any initiatives to protect players, and of course tackle problem gambling.

Spain has always been famous for its sports betting culture – how much of a cross-sell have we seen towards casinos for sports betting fans and which verticals are performing best?

Spain is a special market in Europe since there is already plenty of cross-selling between sports betting and online casinos. With that being said, one vertical’s loss will always see another’s gain and during the pandemic, while live sporting events were canceled, the sporting verticals’ decline certainly increased the online casino player base. Post pandemic effective cross-selling has become more critical than ever to ensure the acquisition of new customers, whilst retaining existing players. This can be seen in how cross-promotional campaigns were a key factor in the strong recovery of the sports betting market once live sporting events commenced. This is important because although the sports betting vertical always reigns supreme in popularity, the slot vertical is fast establishing itself as a strong competitor. Overall, as a consequence, both naturally benefit from the success of the other through cross-selling.

R Franco launched IRIS 4.0 just over a year ago and has continued to retain the Spanish crown as the market’s most advanced native platform. How much does the Spanish technological environment differ from the rest of Europe?

IRIS 4.0 has reached a significant degree of maturity and offers our customers the best guarantee of continued success, especially when it comes to Spain. Four years ago, international clients that opted for IRIS are still with us today after verifying the solidity of our newest IRIS 4.0 platform – and its testament to what it’s been able to do. We offer a fantastic arsenal of engagement boosting bonuses, campaign and promotional tools, as well as investing in many years of R&D to make sure we released the best platform possible. The trust of our customers is, as always, the greatest measure of achievement and we look forward to providing them with further developments in the future. The Spanish technological environment doesn’t differ too greatly to the rest of Europe, and this is reflected more so by the many international and domestic clients that make use of IRIS 4.0.

Last but not least, looking to 2022 and R Franco’s MGA license acquired in 2021 – what are your plans for European markets this year and what can we look forward to in the coming months?

We are close to unleashing our full potential with aggregators and customers who value us in regulated markets, which our MGA license is no doubt set to be a fantastic platform for. Soon we will also be able to demonstrate our true potential and bring our unique take on online slots to a much broader audience through new slot releases, further partnerships, and all-around growth of our business. This year has already seen the release of hit games like Witches North and Sabin of Chazos and we are thoroughly excited for what the rest of 2022 will bring – we’ve got some really creative titles in the mix, of course, do get in touch with us at [email protected]!

SOFTSWISS Founder Ivan Montik turned 40 in January. He agreed to talk to us about this milestone in his life, about his career and his experience of managing a company.

You are the Founder of one of the most successful software gambling companies in the world, which now has more than 1,000 employees. Could you imagine something like this in your 20s and what key decisions led you to your current role? 

I actually imagined something like this when I started SOFTSWISS as a small custom software development company in 2009. Growing it to 1,000 employees was not a coincidence but a result of the long-term strategy and hard work of many like-minded people. Without thinking big, you’ll never grow big. When we founded SOFTSWISS, it wasn’t just to make a living (although profit was an important goal) but to create a company that would stand out among the competition with its quality of services and become a well-known name on the market. 

There were many decisions made on the way. Switching from custom software development to creating our own products was an important step, and of course entering the iGaming industry played a crucial role. We didn’t just create a quality software platform, but developed our own White Label Solution, a unique service at that time. It brought us our first clients, casino operators, and some of them became key players in the market and  contributed greatly to our mutual success.

Integrating cryptocurrencies into our software was another important decision and a turning point in the history of SOFTSWISS. We were the first company to offer a Crypto Casino Solution to the market. Becoming a pioneer in crypto gaming, we took a special place in the industry and made it a large part of our current business. 

Launching various microservices and developing them into separate brands was a series of right decisions, too. Now we have such successful products, as a game studio, game aggregator, affiliate system, and payment provider, all functioning as standalone solutions and contributing to the brand’s overall success. 

Finally, partnering with people who have been beside me in good and bad times, working with me on the most challenging tasks and showing their trust has definitely helped to lead the company to where we are now. 

You have mentioned many times in interviews that you have a degree in economics but not IT, nevertheless, you have managed to build one of the most innovative companies in the online gambling industry. In your experience, in order to create a successful and, most importantly, in-demand product, which background is more important?

Although economics and management were in focus during my university years, computer science and programming were also there. It’s been my long standing passion. When I was at school, I sold my piano to purchase my first computer and learn the basics of programming on my own. This passion played an important role in choosing what business to do and helped me make many useful contacts among technical gurus. However, to lead a company to success, it was more important to have a business vision. You need to have an understanding of how to organise people and establish effective working processes. The knowledge of economics and management is very helpful here, but it’s also about personal qualities, such as the ability to take risks, evaluate partnerships and pursue business ideas which you believe are worth pursuing.

What obstacles have you faced during the creation and development of SOFTSWISS? Tell us about the most difficult personal and professional challenges you have had to overcome. 

Entering the iGaming market was a risky idea on its own, as our team had no prior experience in this area and we were almost unaware of how complex it was. The conclusion I made was that ignorance is bliss as it keeps us connected to real-time challenges and helps tackle problems fearlessly. I learned all aspects of the industry from scratch, from the principles and requirements of gambling jurisdictions to the technical details of casino payment processing, to the peculiarities of the local gaming markets and player preferencences. It was my biggest personal challenge, but acquiring this knowledge has made the most positive impact on business.

Another challenge I faced several times in the company’s history was managing partnerships. When you grow big and do successful business, you become very noticeable and people start thinking about how they can become part of your success. Some of them are really eager to contribute their knowledge and/or money and establish a fair and mutually beneficial relationship, but unfortunately that’s not always the case. Others just want to jump in and take advantage of the company without any real contribution. I’ve had several negative experiences with unscrupulous partners who have had a destructive impact on the business, but we managed to overcome it. In the end, it made all of us stronger and taught us to be more picky when it comes to investment and partnership offers. 

Having achieved success, it is sometimes difficult to maintain the same rhythm and not be tempted to relax and reap the rewards of your work. Where do you find points of growth and motivation to develop yourself? 

I have several sources of motivation that help me stay tuned. First of all, I follow the example of the outstanding people who have reached much bigger success than myself and still haven’t stopped climbing new heights. I’m talking about the leaders of such giants, as Amazon and Google, but there are also people in our industry who I admire. The desire to stay on top of the competition is a strong driving force. iGaming is a fast changing market with new strong players appearing every day and evolving trends. If we stop and relax, it won’t take them long to take our market share. 

The responsibility for the people who work with us, supporting them in their career and providing growth opportunities is another strong driving force for me. They joined SOFTSWISS and shared our corporate goals to become part of the common success, and I’m not allowed to let them down.

Finally, my passion for innovation doesn’t let me stop at where we are. There are so many new areas to explore, both within the iGaming industry and outside of it, and so many new projects to investigate. With the opportunities I have now, I can’t help taking on new technological challenges and investing into innovation. 

What was your approach as a manager towards driving SOFTSWISS to success? Tell us about your managerial principles and practises. Were there any surprising revelations over the several years of managing your own company?

My main approach is staying flexible in all situations. You can’t manage the company of 1,000 people the same way you did when there were just 10. When it all just started, I was interviewing each new candidate myself before making them the final job offer. It was extremely important for me that our employees shared my personal values, that we were on the same page. It hasn’t changed much and I’m still worried about sharing the corporate culture, but I already can’t interview each employee. So I make sure that the C-level management are the people I trust, and it’s their responsibility now to communicate the corporate culture to others.

I’m also a big supporter of the agile approach and at SOFTSWISS we try to organise our  daily routine according to agile practices. From the very beginning, even before I knew what agile meant, I intuitively understood that people were our biggest asset and tried to empower each employee to take decisions and act quickly. Now, with over 1,000 employees and with our industry changing so quickly, I know it’s the only way to stay competitive. So I trust people and motivate them to take the responsibility by showing how unlimited their growth opportunities are. I noticed that when people get an opportunity to participate in the company’s profit, it’s a much better motivation than a high salary on its own. So we try to empower everyone to become part of the common success story.

Talking about the personal part of the subject, does managing such a company leave time for your personal life? 

Finding a balance between work and life is just a myth, I think. It’s a never ending battle. However, practice makes perfect, and I think I found some tricks that help me combine both so that neither suffers too much.  I used to have some difficulties with delegating responsibility, trying to accomplish all tasks on my own quickly rather than explaining it to somebody and facing unfulfilled expectations afterwards. I’ve worked on it and noticed that wise delegation saves so much time. I concentrate on the strategically important things now and let people I trust do other tasks. 

Setting priorities is also important. For me, health is the top priority and sport is the only way to stay healthy. I do boxing and it keeps me sane both physically and mentally. Combined with the Russian sauna, it gives amazing results. Also, I never miss an opportunity to build new neural connections in my brain by learning something new. My latest achievement is snowboarding. Besides sports, time with family and friends is what makes me feel happy and complete. 

Looking back on the four decades behind you, do you think you have become wiser and now make better decisions from both a managerial and a personal point of view?

I’ve definitely become wiser. Although I’m still demanding a lot from the people I work with, I’m less of a perfectionist today and I don’t expect it from my employees.  As I said before, I’ve become more cautious in choosing partners and going into business relationships. Unfortunately, it’s the effect of some wrong decisions made in the past, but learning from my own mistakes is also an achievement. I still believe that it’s more important to take a risk and make a mistake than not to take a risk and miss a chance. So I can always forgive mistakes but I rarely forgive missed chances.

Finally, where to next? Has turning 40 changed anything? Do you feel just as energetic and motivated as before, looking for further ventures, or do you have other ambitions in mind?

I feel as motivated and energetic as I never did before. Life only starts at 40, doesn’t it? I have the experience, resources and people by my side to pursue new ventures. There are several exciting projects in the pipeline now, both for SOFTSWISS and outside of it. I’ll continue investing in innovation and supporting fresh ideas because this means investing in the future.

Having made the leap from CMO to COO Interactive, GAMING1’s David Carrion has set his sights on the company’s expansion in the Netherlands, the US and other regulated markets as it develops at pace.

European Gaming caught up with him on the leading gaming and sports betting partner’s exciting plans for these markets as well as his philosophy towards work.  

Since joining GAMING1 as a CMO over year ago, before being promoted to COO Interactive, how would you say your time at the company has gone?

So far, my time at GAMING1 has been better than I ever could have imagined. It’s been a fantastic journey that has allowed me the opportunity to meet some incredible people who have shown me exactly why it’s such as exciting company to work for.

Together, we’ve been able to lay the groundwork and infrastructure around scalable, data-driven products that will help the company grow in regulated markets considerably in line with our clear five-year strategic plan.

How has the change from CMO to COO Interactive been, was there anything that stood out as you’ve began to upgrade what you’ve delivered for Belgium’s favourite supplier?

Naturally, I’ve taken on a lot more responsibility with regards to our product offering. This has proved to be a very exciting challenge, especially with regards to expanding into new markets. Next on my list of objectives is to focus on aligning our business and technology objectives, which will ensure that we can dictate our own pace and set us on the right path to international success.

Your data-driven skills and experience have been a valuable asset to the company so far, how will you expand on these in your new role as COO Interactive?

We have a very strong vision of what we want to build, however, our customers often have other ideas on how to use our products. Because of this we’ve been able to utilise data and customer behaviour analytics as a great tool to drive us forward, while also helping us find a competitive advantage in the market. Naturally, customers expect the scalability and flexibility to grow their offering and we continue to optimise our products to facilitate that.

As GAMING1’s new COO, what are your main goals and aspirations?

Ultimately, my long-term aspiration is to see GAMING1’s growth and development explode way beyond our expectations by building an operational model based on scalability and speed. I would also like to see us consolidate our strong position as a market leader, while mounting a real challenge in new and emerging markets, such as the United States and the Netherlands.

With GAMING1 set to launch in the US and Netherlands towards the end of 2021, can you speak more about the company’s growth plans? 

We already hold a strong market share in some of the biggest existing regulated iGaming markets such as Belgium and Portugal, and we now have a real opportunity to grow in betting, which is incredibly exciting.

Our flexible business model and the way we operate our brands, joint ventures and turnkey solutions allows us to take on exciting opportunities in the United States and Netherlands. Our plan is to double our revenue by 2025, outperform market trends and become a truly international operator.

Last but not least, plenty of the people in the industry know about your extensive track record – how are you looking to bring that expertise to the table in the coming years as we enter a new era of gaming?

Firstly, it’s important to realise that people are the company, not just one individual. But in terms of how I’m going to bring my own expertise to the table, one day at a time! My approach has always been very straightforward: Be humble, have fun, and realise that difficult is not the same as impossible, as long as you’re well prepared.

As a result of hard work, common sense and a strong desire to succeed, I’ve gotten to where I am today. With those principles in hand, I believe I can elevate the performance of our talented teams to deliver on this new era of gaming, whatever direction that may take.

Jess Mills, Head of Product Proposition at SIS, caught up with European Gaming to discuss how the company has revamped the popular 49’s draw and the huge potential to grow the numbers product globally.

Why did SIS acquire the 49’s brand and how does its addition fit within the wider SIS strategy?

SIS’s strategy for a number of years has been to diversify further online and internationally and this has proved to be successful as we have made significant inroads into new markets across the world. It is important however to ensure you have a diverse portfolio of products as each territory has different needs due to customers wanting to bet on various things in different ways. 49’s therefore allows us to broaden our product portfolio in other verticals – numbers and virtuals – enabling us to target additional territories and help expand our international footprint.

49’s was a product and business that we knew inside out as we had been a strategic partner for 25 years, broadcasting the 49’s live draws out of our studios in Manchester and we had supplied the products to our customers in a number of key territories, so the acquisition seemed like a natural next step for us. In addition to this we felt we had the right skills and experience to develop the business and further expand the product internationally.

Can you tell us more about the revamp of 49’s and why this is so important to furthering the brand?

49’s has been a popular part of the SIS retail service for nearly 25 years. Operators and their customers really trust the brand, it’s reliable and is invigilated by a third-party auditor, which gives customers and operators a huge amount of reassurance and confidence in the product. That said, when we looked at the brand, it was clear to us that it required a refresh and there was room for improvement. The important thing was to modernise the product and bring it up to the present day but without alienating the existing loyal customer base in the process.

We redesigned the graphics and logos to be more modern, for example. They’re brighter and there’s more colour, which makes it look more engaging. We’ve also given the presenters a slightly new look, but they’re still the same presenters that everybody knows and loves, while the music has also been modernised, though you can still tell it’s the 49’s draw. We wanted to maintain all the best things about 49’s but bring the product up to date so it has a modern look and feel.

Key to the revamp has been the addition of the new 39’s and Fast 15’s draws. What was the thinking behind their development?

The 49’s brand is a very popular and trusted brand and we felt that it had the opportunity to expand the product portfolio. The new 39’s draw is a very similar format to the original 49’s draw but it involves 39 balls, and you pick five balls from there. It runs every 15 minutes, so it occurs much more frequently than our 49’s draws, which currently run twice a day. It’s also a slightly more streamlined product than the daily 49’s draws and is pre-recorded with our presenters. While it’s a slightly shorter product, you’ve still got a good chance of winning attractive cash prizes so there are some similarities.

As for Fast 15’s, we’ve gone in a completely different direction. There are only 15 balls, and you pick three out. While the chances of you winning are far greater, the chances of you winning life-changing amounts aren’t as high as with the other draws. It’s about reinvesting your winnings for future bets. It runs very frequently – every two minutes which means you never have to wait that long before the next draw.

Where is the 49’s product most popular and which new territories are you planning on targeting moving forwards?

49’s is an established product in the UK, Ireland, and South Africa with strong customer engagement, so there are plenty of opportunities within our existing territories to cross promote the new products. But there are other territories where customers like to bet on numbers, such as South America and Europe. We’ve got a great opportunity to take our new product portfolio to these territories where there are keen numbers bettors, but initially we are looking to build on the brand in the existing regions where we know we’ve got that core following.

What further changes have you got planned for the brand for the future?

Acquiring the 49’s brand really is the start of our journey, which is exciting for us as there are lots of opportunities to build on the product. As well as rebranding 49’s and getting the new 39’s and Fast 15’s draws up and running, we have also invested in a new 49’s website, which allows us to showcase the refreshed brand, put the presenters at the heart of it, and add our new products when they go live.

It also enables us to generate greater affiliate opportunities. Our new website will allow us to develop even more affiliate relationships with other operators that start to partner with 49’s going forward.

There are also additional opportunities for other live numbers products which don’t have to be draws. The 49’s portfolio also includes virtual horse and greyhound racing and we’ll be exploring different ways to enhance our virtuals offering too.

As CEO of European gaming giant SAZKA Group, Robert Chvátal knows more than most how the COVID-19 pandemic has impacted the industry over the last 18 months. But whilst lockdowns in a number of its markets have taken their toll on the group’s retail offering, he is bullish about the long-term prospects. In an exclusive interview for European Gaming, he revealed how the use of technology and a customer-centric approach is driving online growth and allowing operators to provide a safer gaming environment.

Holiday season is often a time for rest and reflection. How do you look back on the last few months and what challenges did it pose for SAZKA Group?

I’m pleased to say that we have managed to remain resilient in what has been an unpredictable period with often disruptive trading conditions. As people will know, 80% of our EBIT is generated through lottery-style games. Clearly lock-downs have had an impact on our operations, with retail in Italy and Greece in particular taking a hit. And yet our strategic focus on online channels paid off. I think the growth of digital sales during the pandemic is very supportive for our future development too. 30 per cent of GGR for our Czech business in 2020 came online and that continues to grow. In Greece, OPAP recently launched a digital entertainment hub and has seen really good take-up of online lottery sales, despite starting from a low base. Retail remains important. Picking it up and rejuvenating it in the coming months is a priority, but online is a rising star providing us with real guidance too.

Across the industry we’ve seen witnesses the introduction of a wave of new products and a freshening up of old ones. What part has SAZKA Group played in this?

With more and more customers heading online, as well as potential new ones sat in front of their computer and phone screens, it was imperative that we kept our product offering up-to-date and relevant. All our operator companies introduced new content suitable for their jurisdictions. Needless to say, we also introduced new lottery draws too. Hand in glove with this went customer engagement plans that allowed us to showcase the full product portfolio and content diversity that is so important these days. We also saw the roll-out of customer loyalty programs that rewarded our regular players, be they in-store or online. This helped to really personalise our interaction at a time when we were all distancing ourselves from one another as a society. The results to date have been very encouraging.

How has the pandemic changed the way that you approach marketing, particularly when it comes to players who have moved online and those new ones who are joining them?

Interestingly, we are gaining real traction with event-based jackpots with specific themes. Friday the 13th has become a real tradition for us, as many people will now know. There are some key dates when players like to try their luck such as Black Friday top. With millions of people online looking for a bargain, it is a date that resonates in some of our markets. We are often able to collect much higher wagers on these special dates because we’re able to market them better. Clearly customer loyalty takes on a new meaning online too. Traditionally, retail has been an anonymous experience with people going to a newsagent or a kiosk to buy a lottery slip. That suits some people and that’s fine, but it doesn’t allow us to capture anonymised information on consumer trends. Online obviously requires people to register and be verified, allowing us to ensure the are safer from a responsible gaming point of view, which is crucial.

What part is technology playing in providing a better player experience?

We are really making the most of big data, joining the dots between lottery and those who play other games. It has a huge benefit online. But retail loyalty is equally important for us. That’s why we offered virtual loyalty cards, where players register online with a mobile number. This then allows us to identify them as a unique player. We also have a proposition in retail loyalty called Wheel of Fortune where participants benefit by being offered a second chance within 24 hours of their retail purchase, for example. People are embracing it because they see the benefits of what is being offered. There is nothing worse than being bombarded with products and services in which you have no interest. Harnessing big data and processing it thoughtfully allows technology to tailor our offering. That has never been more important in a world full of distractions. We also see technology as a vital means of protecting players, more of which is below.

Player protection and the need for safer betting and gaming environments are rarely out of the headlines these days. How is the lottery sector and SAZKA Group in particular dealing with the challenges these concerns present?

SAZKA Group is committed to responsible gaming. It always has and always will be a central plank of our proposition as a business. All of our operator companies are part of European Lotteries, so there’s a strict and supervised responsible gaming certification mechanism. In some respects, we’re fortunate. In lottery wins are infrequent, compared to games with higher probability and higher frequency. The risk of excessive or problem gaming is small as a result. But there is clearly no room for complacency. Some of our companies run sports and casino betting too, of course, and put significant resources into ensuring customers are supported. We let them know about setting time and spending limits and the advantages of taking frequent breaks. We also educate our employees and store partners in responsible gaming training, so that they can apply the relevant standards and principles. At the end of the day, this should be an enjoyable and playful experience for our customers – and we need to play a central role in maintaining that.

Kalamba calls itself a data-driven company, what does that mean in detail?

In order to remain not only competitive but to be a leading company in the igaming space we need to understand our players. Our industry is rather fortunate in that its products are, by their very nature, online, so there’s a huge amount of data and metrics that we can use to analyse performance and identify areas for improvement.

With each and every release we scrutinise the available data from day one of launch and it has proven invaluable. Such focus allows us to identify potential pain points that players may be experiencing. To give an example, you can have players quitting a game immediately after browsing through the available bets, which can indicate that there is a certain sub-sector that expects to be able to bet below €0.50. You then adapt and benefit.

Close attention is consistently paid to key metrics like retention, session length and average bet for given jurisdictions, meaning we are better able to make conscious and informed choices about targeting our gaming toward specific demographics.

We also experiment a lot with volatility, hit rates and other significant parameters to see what resonates better with our audience. All this work helps us improve what we put out there to players and, ultimately, supports our commercial growth ambitions.

How can data collection and analysis help a supplier improve its products?  Is this utilisation of available data currently neglected by developers?

It’s essential to perform this kind of R&D in any enterprise and ours is no different. Understanding your customer base and what their preferences are is a key driver for forward thinking, successful business.

From experience, it seems that a lot of key indices, analysis and experiments in igaming are lagging far behind what some of us saw in social casino, for example, where constantly optimising products to enhance the user experience is a key requirement to stay competitive. I suppose it can only help Kalamba if some of our competition neglects this vital area but as long as we continue to perform our due diligence during development and post-launch, then we’ll continue to thrive.

How much more do you think data and AI will be integrated into game development going forward?

From a supplier perspective, demographic classification, identifying possible exploits

in a game or pain points in the player’s conversion funnel are just some of the examples of the practical application of AI and the real data insights it provides. Even though the data is anonymised, we can learn a lot about aggregated player behaviours. Being able to tell what works well and what doesn’t means examining many different aspects of the numbers and feedback at the same time and that’s where AI can greatly help.

What can we expect from Kalamba in this area?

Kalamba has always championed a creative, data-informed, experimentation approach to

game design and production. Taking it to the next level, we’ve recently initiated our StarGazer project, which we believe will revolutionise the way data is handled and the results we get from it. We will be revealing more in due course!