Industry predictions for 2020 - including Brexit, gamification and changing perceptions

Ian Chuter, founder of Sports and Gaming consultancy

Perception change

2020  looks to be another incredibly challenging year for operators and regulators in both land-based and digital markets. Corporate social responsibility will continue to dominate as operators rise to the challenge laid down by regulators to up their game on responsible gambling. The cost of mistakes is high and personal licensing puts great pressure on the decision-makers on a day-to-day basis. Artificial intelligence, data-led systems, and processes are the only way companies can ensure they stay on the right side. The formation of the Betting and Gaming Council is a huge step forward and the early signs are that it will be a highly effective organisation. The importance of the industry’s public perception changing is critical. There has been speculation of a review of the gambling act but given the complexity of any such review this will not happen in 2020 so getting the perceptions changed in the meantime is vital.

Brexit

Whatever side of the fence you stand on, Brexit will get done and this will give confidence to the financial markets to enable long-term investment plans to be put in place. Parliament needs to change and hopefully the vitriolic politics will be curtailed as the focus is switched to delivering the priorities laid out by the government. So, 2020 will be the year to get things done.

Less is more

Growth will be slower in the UK and all the bigger firms will want to see the fruits of their labour in the US show the green shoots that are holding back many of the contestants’ share prices. The ability of new entrants to make headway in the market will continue to be extremely difficult especially if the Flutter and Stars Group deal goes through next summer. I fully expect more industry consolidation making it harder than ever for new entrants. The ongoing dilemma between build or buy strategies will continue but either solution will continue to need best in class content versus mass volumes. Could this be the year of a return to a “less is more” approach with operators seeking “quality over quantity” content strategies?

Julian Borg-Barthet, business development director at RISQ

Compliance top of the agenda – Regulatory fearmongering over the past 12 to 84 months has brought all the doomsayers to the media, screaming blue murder and the end of all great things. Spending the past eight years on the compliance side of the industry, it’s brought start-ups and industry veterans to the table with opportunities as well as restrictions in terms of what can and cannot be done. I’ve seen the industry try and regulate itself as well as companies trying their utmost to take advantage of new markets where the advantage of an isolated market can reap benefits to the right first movers. Am I an optimist or delusional? It will bring plenty of opinion from all sides of the industry. Staying on the right side of the law is a difficult change to make especially in heavily segregated organisations where one hand doesn’t know what the other is doing and the regulatory department is the last group you want in a strategy meeting when you’re just shooting around hypotheticals. So, the big question is who’s taking responsibility?

With millions of euros being spent in fines across the board, I foresee departments such as KYC and AML as well as affiliates and CRM pushing towards a more risk averse approach to the way they conduct their activities, spending more on KYC checks than just ticking a box as well as keeping relationships with advertisers and affiliates closer than before.

Gamification – Gamification of operator platforms will move us all away from our current understanding of omni-channel and player loyalty, with companies such as 3radical, BlueRibbon, and CompetitionLabs, for example, changing the way players interact with gaming companies. Players will see a chance to build loyalty with their chosen brand by interacting with the entirety of the offering and not what today’s one-time promotion is steering them towards.

Player loyalty – With the US gaming market expanding via casino and racino-based offerings, players will build loyalty by booking a show, a room in Vegas, and playing a hand or two of blackjack after collecting points from their in-resort dining. Building loyalty will transgress where players are more comfortable wagering and their perception of risk. We’re going to go full circle, from Vegas-style resorts being primarily focused on the casino floor, to entertainment meccas, and bringing the entire experience together again.

In a nutshell, we’re going to be taking compliance more seriously, identifying emerging markets as an opportunity and making our own minds up as to what constitutes innovation in technology. Oh, and everything will be gamified.