888 tells Pennsylvania to allow multiple online skins
CEO Itai Frieberger warns that a single skin system will dampen growth and constrain the consumer
888 has written to the Pennsylvania Gaming Control Board, calling for multiple skins to be allowed on each online gaming license, akin to the system in New Jersey.
The letter, from 888 CEO Itai Frieberger, comes amid rumours that the PGCB is considering limiting operators to one online skin per licence, following pressure from local casinos like Parx.
The move would make it harder and more expensive for international firms to enter the market, thus reducing competition for incumbents like Parx, which will launch its own branded site on a GAN platform.
However, in a letter sent to the PGCB in February, Frieberger warned a single skin system would hamper the development of the market.
He wrote: “Allowing properties to offer their services through multiple brands will allow them to create a multi-tiered offering, combined of different sites appealing to different target audiences, each with its own look and feel, marketing approach, suite of games, bonus and promotion conditions, etc.”
“Think of this as a casino having different room for different types of players. Experience from other jurisdictions shows that a multi-brand approach stimulates healthy competition between brands and ultimately increases overall market size resulting in larger gaming duty income for licensing jurisdictions.”
Frieberger also pointed out that the licensees themselves would see profitability boosted, with sub-brands contributing to the bottom line, as in New Jersey, where the likes of Betfair and SugarHouse have helped Golden Nugget report record monthly revenues.
Frieberger goes on to dismiss the threat of cannibalization, concluding that multiple brands are beneficial for the consumer, licensees and the state itself.
The letter should carry some weight with the PGCB, with 888 the only firm in the world to currently hold a licence in New Jersey, Delaware and Nevada, and also the only firm operating an intra-state poker liquidity pool.
888 has been increasing its investment in the US in recent months ahead of the potential expansion of regulated gaming, with the firm last month launching a new TV marketing campaign for its New Jersey online casino product.