Industry News
“Players Who Feel Safe Are More Likely to Stay with A Sole Operator For Longer”
While iGaming brands amass social responsibility fines by the millions allowing unhealthy behavior go unchecked, a better way exists for both operator and player
Responsible Gaming is more than just an industry buzzword or something to look out for. It has real-life consequences for everyone involved: brands, operators and, more importantly – regular people. As the National Council on Problem Gambling marks its Gambling Awareness Month, we stopped to take stock of social responsibility in the iGaming industry – is enough being done? What is holding us back as an industry? And what will the future bring?
The Brands & Regulator
Recent years have seen a crackdown by the regulator on many iGaming fronts, specifically social responsibility or as we know it – Responsible Gaming. In 2021 brands amassed more than £15M in fines for failing to meet social responsibility regulations and protect at-risk players. The trend is gaining momentum, just three months into 2022, operators have already amassed over £15M in social responsibility fines, yes, similar to the entirety of 2021. The total sum of penalties in 2019 covering all violations? A ‘mere’ £17M. Operators need to comply and fast to keep the money on their side of the table.
The people
The human price of operators’ reluctance to comply with social responsibility regulations is clear. There are degrees of unhealthy behavior, but at its worst, a gambling problem can devastate a person’s life, affect their loved ones, mental health, livelihood, and more. The risk shouldn’t be underestimated, regulatory zeal suggests.
“From my study and understanding these pathways, it seems that the need for entertainment and escapism leads certain players. In other cases, they’re driven by more impulsivity issues and a lack of ability to control one’s behavior,” said Sally Gainsbury, Director of the University of Sydney Gambling Treatment & Research Clinic.
“This doesn’t only affect the individual themself, but also 6-10 people around them. That’s why it’s important to prevent harm before they reach this critical level.”
So what’s stopping operators from simply, you know, following Responsible Gaming regulations? “The biggest hurdle is the lack of understanding of the appropriate KPIs and required actions brought down by regulators to work best towards minimizing gambling harm,” said Gainsbury.
If operators limit their most active players, the VIPs of sorts, it’s only reasonable to assume they’ll suffer massive revenue hit, much higher than any fine. But acting on RG makes more financial sense than one might think. “In the modern iGaming world, which includes land-based casinos, sports betting, digital, and all gaming forms, you don’t have to choose between revenue and socially responsible gaming,” said Michael Pollock, Spectrum Gaming Group’s Managing Director.
“The companies that tend to be the most profitable and the market leaders are the ones that take this responsibility seriously for several reasons: One – if you’re irresponsible, you’re leaving your customers dry. You want the customer to afford what they are spending. That’s the heart of responsible Gaming. Two, if you want the public’s trust and to be recognized as one that can be trusted with their money, RG has to be front and center in your business practices. If not, you’re not going to be a market leader. And three, if you don’t take the responsibility seriously, regulators will prevent your brand from renewing your license,” added Pollock.
The solution
Optimove, the leading CRM Marketing platform, has a different approach to Responsible Gaming. It offers a predictive model to identify players-at-risk and recognizes three maturity levels of an operator regarding responsible Gaming:
- Basic – Providing players the ability to self-exclude at any time. This is typically also the most rudimentary requirement of most regulated regions.
- Competitive – Exploring the various attributes that players demonstrate before they self-exclude. By creating a segment of customers who self-excluded, operators can identify suspicious attributes to try and mitigate them and reduce the number of players who become at-risk players.
- Advanced – Implementing a machine learning algorithm that helps operators predict which players are likely to become at-risk ahead of time. Such algorithm also allows operators to differentiate between at-risk and VIP players, who often share a few similar attributes.
VIP or At-Risk?
In the UK there has been a clear move by the main Operators towards a mass market/recreational customer. The average player values dropped accordingly and VIP programs have basically came to an end. This has been driven by the concerns around problem gambling and the big overlap between what was previously described as a VIP and what is now understood to be problem gambling issues.
Many companies still have two separate departments, CRM and RG, but the reality is that the result of this operational setup and the contradictions between definitions of success in each field, means that the different teams are not necessarily driving in the same direction when it comes to player care.
Use outreach to educate
Instead of creating player journeys consisting of only promotional campaigns, operators should begin putting a heavier emphasis on educational and informative content that encourages players to adopt healthier behaviors and reduce the number of players who become at-risk.
Operators must communicate carefully in the competitive gaming market, where 1-to-1 marketing communications is still an integral part of the experience. By segmenting customers into tiers based on their risk levels and adjusting the informative-to-promotional campaign ratio accordingly, operators can maintain the marketing aspect, and improve their revenue, while instilling more robust socially responsible practices.
Metrics to monitor
If traditional CRM marketing focuses on promotional offers to measure incremental Net Gaming Revenue as the main KPI, socially responsible marketing mix needs to measure player migrations from one risk level to another and overall retention rates.
To identify the marketing strategies that work best to maintain a high level of healthy-player engagement, operators should measure their campaigns’ impact on player behavior over time. Similar to A/B/n testing different treatments, entire player-journeys should be tested to evaluate how they affect player behavior and risk-level migrations.
Using different CRM Marketing tools, like Optimove, operators can easily create entire marketing flows and monitor how players migrate from one risk level to another, and adjust their marketing strategies as necessary. Gaining insight into how both campaigns and flows perform can empower operators to optimize their marketing strategy and reduce the number of players who become at risk.
For instance, one gaming operator segmented its customers into tiers based on their low, medium, and high-risk levels. Players with a low-risk level were given the occasional promotional campaign, while players in the medium risk level received 30% of the promotional campaigns, and so forth.
The future
On the predictive side of things, there is a huge amount more that operators can be doing to identify behavioural issues at a much earlier point in the customer journey. Once predictive models – which help identify at-risk players – are in place, operators do not need take a manual binary decision on whether to cut the player off or leave them alone, but can begin taking the customer through a RG journey that may first provide instructive content around the issue. If the behaviour doesn’t change, then limits can be brought in before finally cutting the customer off.
In the near future Responsible Gaming will be integrated into all business sides and will not remain a siloed responsibility of few. That means an organizational overhaul around the issue as every department within an operator or platform must be guided by RG principles. For example, in CRM terms, it means CRM Teams will have:
- A clear understanding of what RG principles need to be followed.
- These principles will be converted to customer attributes that are easily trackable and monitorable.
- Teams will have programs in place to foment healthy gaming behavior.
- Teams will have marketing tools that autonomously redirect customers to those programs when needed (to prevent and amend situations).
Doing this at scale however is challenging which is why AI should be the lead in predicting, identifying and managing at-risk players. Once a player is identified as being at-risk, the AI algorithm will autonomously reassign them to the appropriate segment, where the messages are less salesy, focusing more on adjusting the behavior, understanding the problem better and taking a step back if needed.
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- Innovative engagement strategy positions MeridianBet as a leader in CSR within the betting and gaming industry
- Optimized brand loyalty as active customer participation in CSR strengthens connection and loyalty
- Scalable impact, as the model is designed for expansion and could be adapted to new markets, indicating potential for widespread adoption and growth
Transforming Customers into Environmentalists and Humanitarians
MeridianBet’s pioneering initiative, Meridian Donate, is transforming the betting industry by engaging customers directly in corporate social responsibility (CSR) actions. This unique platform allows customers to actively participate in and fund various environmental, societal and humanitarian projects, setting a new standard for customer engagement and community impact.
Key Features of Meridian Donate:
- Direct customer involvement: Customers are not just donors but active participants in CSR decisions
- Diverse programs: Offers choices from global afforestation to local humanitarian efforts
- Partnerships with renowned organizations: Collaborates with entities like the Red Cross and UNICEF
Expanding Impact: A Year-by-Year Growth
The Meridian Donate platform has seen substantial growth in its scope and impact:
- Number of individual campaigns: Grew from 8 in 2021 to 20 in 2023
- National markets Integrated: Expanded from 3 in 2021 to 8 in 2023
- Direct Beneficiaries: Increased from 43 NGOs in 2021 to 159 in 2023
In 2023 alone, the platform’s expansion into eight markets facilitated 20 customer-funded campaigns, directly benefiting 159 NGOs, up from 122 the previous year.
Continued Commitment to Innovation and Community Involvement
Meridian Donate not only showcases MeridianBet’s dedication to CSR but also redefines the role of digital marketing within the industry. By converting sports bettors into active CSR participants, Meridian Donate enhances customer loyalty and brand value, making it a critical element of MeridianBet’s market strategy.
Recent Successes and Future Outlook
In its recent operation, Meridian Donate has launched an ambitious global afforestation initiative, committing to plant 20,000 seedlings across various regions. This project not only underscores our environmental commitment but also enhances our brand’s community presence. Already, several hundred contributions have been recorded in the platform’s first month, indicating robust customer engagement and support.
The post Meridian Donate: Revolutionizing CSR in the Betting and Gaming Industry appeared first on European Gaming Industry News.
Games Global Limited (“Games Global”), a leading developer, distributor and marketer of innovative online, casino-style gaming (“iGaming”) content and integrated business-to-business solutions to iGaming operators, announced today that it has launched the roadshow for its initial public offering (“IPO”) of 14,500,000 ordinary shares. The offering consists of 6,000,000 ordinary shares offered by Games Global and 8,500,000 ordinary shares to be sold by Games Global’s existing shareholder (the “Selling Shareholder”). Games Global will not receive any proceeds from the sale of the shares by the Selling Shareholder. The underwriters will have a 30-day option to purchase up to an additional 2,175,000 ordinary shares from the Selling Shareholder at the IPO price, less underwriting discounts and commissions. The IPO price is currently expected to be between $16.00 and $19.00 per share. Games Global has applied to list its ordinary shares on the New York Stock Exchange under the symbol “GGL”.
J.P. Morgan, Jefferies and Macquarie Capital are acting as joint lead book-running managers for the proposed offering. Barclays and BTIG are acting as book-running managers for the proposed offering.
The proposed offering will be made only by means of a prospectus. Copies of the preliminary prospectus relating to the proposed offering, when available, may be obtained from:
- J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by email at [email protected] or [email protected];
- Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, by phone at (877) 821-7388, or by email at [email protected]; or
- Macquarie Capital (USA) Inc., Attention: Equity Syndicate Department, 125 West 55th Street, New York, NY 10019, or by email at [email protected]
A registration statement relating to these securities has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
In any member state of the European Economic Area (the “EEA”) this announcement, and the offering, are only addressed to and directed at persons who are “qualified investors” (“Qualified Investors”) within the meaning of Regulation (EU) 2017/1129 (the “Prospectus Regulation”). In the United Kingdom, this announcement, and the offering, are only addressed to and directed at persons who are “qualified investors” within the meaning of the Prospectus Regulation as it forms part of domestic law in the United Kingdom by virtue of the European Union (Withdrawal) Act 2018 who (i) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”), (ii) are high net worth entities who fall within Article 49(2)(a) to (d) of the Order, or (iii) are persons to whom it may otherwise lawfully be communicated (all such persons being referred to as “relevant persons”).
This announcement must not be acted on or relied on (i) in the United Kingdom, by persons who are not relevant persons, and (ii) in any member state of the EEA, by persons who are not Qualified Investors. Any investment or investment activity to which this announcement relates is available only to and will only be engaged with (i) in the United Kingdom, relevant persons, and (ii) in any member state of the EEA, Qualified Investors.
The post Games Global Announces Launch of IPO appeared first on European Gaming Industry News.
Leading the charge in the convergence of financial technology and iGaming, Genome, a cutting-edge electronic money institution, is thrilled to announce its strategic partnership with Chilli Partners, a prominent iGaming affiliate program specializing in casino games.
The collaboration marks a pivotal moment in the iGaming industry, bringing together Genome’s expertise in online financial services and Chilli Partners’ prowess in affiliate marketing. The partnership is set to redefine the landscape of affiliate payouts, offering an array of benefits to both affiliates and the iGaming community at large.
“We are excited to embark on this journey with Chilli Partners. By combining our financial expertise with their influential position in the iGaming affiliate space, we aim to set new standards for efficiency and innovation in affiliate payouts,” – noted Genome’s CEO Daumantas Barauskas.
For one, the partnership offers efficient payouts. Affiliates can now enjoy expedited and secure payouts through Genome’s state-of-the-art financial infrastructure, enhancing their overall experience and satisfaction.
It also provides global reach for Chilli Partners, as it can extend its reach to affiliates worldwide with Genome’s international payment capabilities. This allows Chilli Partners to foster a more diverse and expansive network.
The partnership streamlines financial workflows, ensuring seamless transactions and reducing administrative overhead for Chilli Partners, allowing them to focus on delivering top-notch affiliate services.
Genome is all about innovation in payments and online financial services. This approach brings new possibilities for payment options, providing flexibility and convenience for affiliates participating in the Chilli Partners program.
Lastly, the collaboration prioritizes compliance and risk management, assuring affiliates of secure and compliant transactions in accordance with industry regulations.
“This partnership aligns perfectly with our commitment to providing the best possible experience for our affiliates. Genome’s advanced financial services will play a crucial role in elevating our affiliate program to new heights”, – added Clayton Zammit Cesare, Head of Affiliates at Chilli Partners.
As the iGaming industry continues to evolve, Genome and Chilli Partners stand united in their dedication to driving positive change, innovation, and reliability. The partnership is poised to create a ripple effect, positively impacting the entire iGaming ecosystem.
About Genome
Genome is a leading EMI that provides innovative financial services, including batch payouts, SWIFT, and SEPA transfers. With a focus on efficiency and compliance, Genome empowers businesses across various industries, including iGaming, to streamline financial operations and enhance user experiences.
For more information, please visit https://genome.eu/
About Chilli Partners
Chilli Partners is a prominent iGaming affiliate program specializing in casino games. With a commitment to excellence, Chilli Partners connects affiliates with top-tier iGaming brands, offering a lucrative partnership that includes competitive commission structures and tailored support.
For more information, please visit https://chillipartners.com/
The post Genome and Chilli Partners join forces to revolutionize iGaming affiliate payouts appeared first on European Gaming Industry News.
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