Feature: Time to mobilize

More than half of online casino players in New Jersey are expected to come through mobile by the end of the year, but have operators been slow to react Martyn Hannah reports 

Mobile is now a critical component of any regulated operator’s online strategy, and will be the driving force behind market growth in near term. The number of people using mobile is on a steep upward trajectory right across North America, and comScore estimates 187.5m Americans had a smartphone in March 2015. And the impact this is having on regulated real-money gaming is clear to see. [private]

More and more players are ditching desktop play and spinning the reels and playing hands of poker through their mobile and tablet devices. But, surprisingly, the industry has been slow to react. While some of the delay has been down to the lengthy testing and approval process that comes with regulated egaming, mobile simply hasn’t been high enough on the agenda.

“The issue is really not the innovators as there are plenty of sharp developers that have proven their creative value in the UK and other parts of the world,” says WEBE Gaming CEO John English. “There are limitations put in place by state regulations and further a lack of critical mass needed in the jurisdictions where mobile wagering is allowed. We have a long way to go to catch up to Europe, but as markets open we will see an influx of creativity and efficiencies in the mobile space.”

Operators and suppliers acknowledge the need to act now in order to keep up with player demand, however, and are pushing forwards with content and usability improvements despite regulatory hurdles. “We are focused on content at this stage,” says Warren Steven, product director of online gaming at Landry’s, which owns the Golden Nugget. “Due to the slow availability of HTML5 games, this was one of the areas we were told we needed to improve on when we surveyed our customers. We also have a number of innovations focused on usability improvements in the pipeline,” he adds.

Content is king

Content is king when it comes to mobile, and like desktop it is the land-based titles from the likes of Scientific Games and IGT that are proving the most popular. These titles are primarily developed in HTML5, which allows the game to be played on any mobile or tablet device with an updated browser, and on any operating system. The trade off, however, is that compared with native iOS and Android apps quality is secondary, and players have been quick to criticise.

“All game suppliers realize and understand that they have to improve their HTML5 game quality, and we are now seeing large improvements with every new game coming through the pipeline,” says Steven. “What will also drive this is new certified and licensed game suppliers coming into the US market who have focused on HTML5 quality and will hit the ground running, forcing others to improve or risk losing market share,” he adds.

While game quality needs to improve, operators also need to reassess their mobile strategies if they are to fully exploit its potential. European markets have shown that it is no longer good enough to have a single “mobile” product for both smartphone and tablet. The two devices should be seen as totally separate channels, with games designed and optimized for each. The key differences are the screen size and user behavior. Mobile is excellent for acquiring and distracting customers, while tablet is fast becoming a desktop replacement for a more immersive gaming experience.

Taking a slots game as an example; the mobile version should be stripped back to allow players to focus on the gameplay and to bring up less frequently used controls as needed and dismiss them when not. On tablet, however, the additional screen space allows for the controls to be present at all times, and the inclusion of additional features such as chat. Another good example is horserace wagering, with Betfair-owned TVG offering a dedicated iPad application that allows punters to live stream races.

Android v iOS

As mobile penetration increases, so does the battle between Android and iOS. English says that Android is easier to develop in, and has a clear advantage in market share terms with 52.4% of the US market, according to comScore. But interestingly Steven says that Golden Nugget has found that iOS, despite holding just 42.6% of the market, is 65% more popular than Android in the Garden State at this stage.

“We were a little surprised by this considering the growth of Android in 2014, but this growth is also due to Android’s proliferation in the entry level mobile device sector. We know that iPhone and iPad users are more affluent, which makes them more of a demographic likely to enjoy the experience of online gaming,” he adds.

Regardless of which operating system ultimately provides the most players, or indeed the most valuable players, operators and suppliers will have to get to grips with both. This will be even more important as new technology becomes more widely available. In the more mature European market, a number of intrepid operators are embracing wearables, and in particular smartwatches. While smartwatch penetration remains low for the time being, is it something US operators should be considering now in order to get ahead of the curve?

“I think the toy factor is key here and the impact to increasing bets will be minimal,” says English. “It is for the most part a novelty, screen size is limited and outside of being cool, it is not a driver. Mobile changed the game in portability, but most wearables are accessories and not necessities. I see more relevant things in technology happening in the form of augmented reality and artificial intelligence,” he adds.

But Steven sees more potential in smartwatches, and believes that any screen size, no matter how large or small, will play a role regulated US egaming. And while not currently having a smartwatch app in development, he says “interesting discussions” are happening behind closed doors to see how Golden Nugget can innovate using the smartwatch. In particular, he notes that smartwatches are optimized to determine vital signs, and offering interesting ways to develop apps and games to leverage these such features and extend the mobile gaming experience.

“Whether they improve registrations, simplify payments, or provide an extension of the mobile experience, operators will have to dabble in this area to know where the sweet spot is,” he adds.

Whether smartwatches are the future for US egaming remains to be seen, but it is encouraging that some operators are experimenting now while the technology is in its infancy. Lessons should be learned from the rapid rise of mobile, with time and resources now being invested on bringing the product up to speed. Those that do will be able to drive and capitalize on market growth, and those that don’t run the very real risk of falling by the wayside.