Opinion: Nothing beats experience
NYX Gaming Group CEO Matt Davey talks about why European suppliers have the edge over their stateside rivals, and why others states need to legalize online casino as well as poker
The United States has the potential to become one of the largest and most lucrative regulated online gaming markets in the world. But with just three states adopting regulation to date, and only New Jersey generating anything near meaningful revenues, there is the feeling that it has been something of an anti-climax thus far. But to adopt that frame of mind is to miss the bigger picture, and the long-term potential bubbling away under the surface. [private]
NYX Gaming Group rocked up late to the New Jersey party, launching in the Garden State with Resorts Casino through our SNG Interactive subsidiary in February this year. Unlike some of our market rivals we had more than 12 monthsâ worth of data relating to signups and revenues, yet we still pushed ahead. That was not a reckless decision on our part, in fact the data was pretty much in line with our own expectations. It is testament to where we see the market heading in the long-term.
What has become apparent, however, is that online casino is the driving force behind the New Jersey market. And while it is the land-based brands that have performed the best in the state to date, it is interesting to note that it is the European platform and content suppliers that have led the charge over their stateside rivals. This has a lot to do with the years of experience suppliers such as ourselves have from operating in some of the most competitive regulated jurisdictions across Europe.
Strong foundations
While several US-based firms have done a stellar job of building their platforms and games in-house in a relatively short space of time, it appears they are running into teething issues that we have long since resolved. Thatâs not to say we havenât had to tweak our platform for the US market â in particular to include four digit social security sign-up â but in our favor is a tried and tested base to work from.
Itâs only early days, but we have been really encouraged by the performance of our product and the New Jersey market in general. This is the first time our products are being played by New Jersey residents, and itâs been great to see some of our games out-perform some of the existing land-based titles. This goes against what the market has seen to date, with players seeming to favor the games they are used to playing on the casino floor.
Players always look to play with what they are familiar with first, and they look for recognition, comfort and familiarity. And that is definitely where the land-based titles have a benefit for the existing gambling segment within the New Jersey market. But now the market is maturing, players realize they can access those games on the majority of sites, and are looking for new content now that trust is less of an issue.
Our online-only titles are also attracting new players that have never stepped foot in a casino floor before. Those players donât have a bias and are open to what is the most attractive product. We have spent the last 15 years building our games to be attractive particularly to those who have not been in a land-based casino, in Scandinavia for example where the online market is growing at a rapid rate despite a relatively small bricks-and-mortar industry.
Looking to the future
The New Jersey market certainly has scope for growth, but like all the other stakeholders in the regulated US egaming industry, we are pushing for other states to come online. From what we have seen in New Jersey, we would encourage lawmakers in other states to legalize both poker and casino in order to create a sustainable and profitable industry for operators, suppliers, and state tax coffers alike.
But which state will be next to flick the switch? I think we can all see that Pennsylvania is starting to make a move in the right direction, and I am encouraged with the progress they are making there. So my instinct would suggest that will be the next one. And when it does go live, this time expect NYX Gaming Group to be among the first to join the party.