Change the product, change the game

One of the longest running arguments in mobile gambling seems to have sparked back into life with an announcement by bet365 of a launch of its new native casino app. It’s HTML5 v native round 16 (yawn). But the issue is a much bigger one than a battle of technologies, it’s a battle for the customer of the future.

Bet365 does things a little differently to most of its peers when it comes to casino. While others are shifting to in-house games, the operator is resolutely sticking with outsourced partners and the new launch with Playtech is another example of it not being afraid to go against received wisdom.

Its new mobile app launch is native, rather than the HTML5 model that has become ubiquitous in the online gambling sector of late, with bet365 promising loading speeds up to three times faster than HTML5 versions. Users can also personalise their app UI and there are 100 native games for both Android and iOS available.

Christian Bogstrand, chief executive officer and head of gaming Hillside (Gibraltar) Limited, said the goal was a “much faster and improved gaming experience”, and at its heart this move looks to address a big technology gap that still exists within online gaming. For all the talk of rising revenues and mobile gaming growth, the user experience (UX) is still lacking at almost every operator.

When bet365 speaks the industry would be wise to listen, as its gaming division is run by some of the sector’s smartest minds in Bogstrand and group director of gaming strategy Gil Rotem. Here the message seems quite clear – the customer deserves better. A faster, more personalised UX is what’s required to shift mobile gaming from a growth product into the core platform without losing players along the way.

Good enough?

The trouble with mobile casino in 2016 is the technology still lags behind the customer. While sports betting is arguably now a better experience on mobile than it is on desktop, or at least as good in the case of most operators, it’s very tough to make a similar case for mobile casino. And for the modern cross-device user that simply isn’t good enough.

The issue for operators is consumers have already made the switch to mobile. They are used to a mobile-dominated world where their experience on all platforms is seamless. Amaya noted 70% of its new acquisitions to PokerStars come through mobile and it’s telling that they as much as anyone in the sector have poured resources into the platform. Similar numbers are reported at most of the major operators, but few have mobile revenues at anything near a similar level.

Desktop gaming is a graphically rich immersive experience with high-quality 3D animations and games that are truly spectacular at times. The differences with mobile casino are palpable. And then there is the Flash problem.

Online gambling’s historic reliance on Flash technology for its gaming content means there is a huge archive of games that simply won’t transfer to mobile easily. And while all new games are developed in HTML5 or native technologies, and have been for some time, this does still leave something of a content gap between the desktop and mobile platforms that is very noticeable at some smaller sites.

Changes needed

The focus in the online casino sector must be on radically and rapidly improving the UX for its mobile consumers. For while the platform agnostic future is one everyone is working towards, the reality is right now there is still a platform divide for its consumers. And more importantly the vast majority of new players come through the mobile platform where the shop window is looking a little ragged in places.

There is evidence in the market that operators with a strong mobile offering are taking market share from operators more reliant on legacy desktop or “good enough” mobile casino offerings. LeoVegas is a clear example here with 67% revenue growth in H1 and 65% of deposits made through mobile, despite 62% of revenues coming through the Nordics where broader growth is believed to be in the single digits.

As can be seen in the chart below from a recent Eilers & Krejcik Gaming report into the mobile casino sector, there has been a rapid rise in mobile revenues across the board driven to a large extent by both consumer trends and improved offerings from suppliers. But the next phase will be one where differentiation through product is key. Mobile is not a growth catalyst in itself, but the quality of the mobile offering is.

Gaming and casino in particular has yet to see the level of sharp incremental revenue growth we saw during the sports betting mobile revolution and it’s arguable the product is still holding it back. Perhaps the first operator to significantly improve the UX can really change the game.