Canada

Tech Innovation: The Key to Cracking North America

Published

2 years ago

August 3, 2022

With major corporations spending big to corner the US online gaming market, smaller operators need to be smarter than ever to compete. But technology that can increase efficiency and help get the marketing right means everyone’s got a shot, says Flows.

For operators looking to enter the US market, how important is it to get the tech right?

It’s probably the most important consideration. Entering the US market has proved to be very challenging for many operators. Major corporations, from Caesars, to MGM Resorts, to Fox, are splashing huge amounts of money on acquiring players. Last year, Caesars vowed to spend $1 billion marketing its sport betting app in the ensuing 24 to 30 months. It’s very difficult to compete with that.

Meanwhile, the US landscape is a hodgepodge of different regulations with several individual requirements for each state. Adapting costs resources and time.

Faced with these hurdles, its crucial operators adopt technologies that can help them with personalised customer engagement, while streamlining roadmaps and offering regulatory agility.

How should operators approach acquisition and retention in the face of such competition?

For operators entering the US market that don’t have a spare $1 billion to splash, differentiation is key, not only in the look and feel they present and content they offer, but also in how they introduce themselves to the market.

It’s also important to think about the way you engage with customers and the type of customer you want to target. Creating a first-class user experience is vital in helping you to stand out and places you ahead of the competition. That experience is about much more than just the onboarding process or the initial content offering you present to your customers.

Creating a personalised experience is vital in the US, where brands are competing fiercely for a share of the market, and it’s important that your technology supports that.

Bettors’ playing habits and needs are ever-changing. Offering personalised, localised and tailored promotions helps to improve the relationship you have with your bettors, increases loyalty and reduces acquisition cost.

Once you build trust, it’s much easier for you to build a loyal customer base. To do this, it’s important to think about the initial experience and journey you are creating for every new customer and continuing to create for every existing loyal customer.

How should we use technology to build personalization?

Creating a personalised marketing strategy requires a level of creativity to ensure that you can offer something remarkable.

Consider tailoring your acquisition and retention campaigns by offering registration bets on demand, for example, or personalised birthday promotions for your VIP customers. You could offer a ‘weather bonus’, based on a player’s location, to cheer them up when it’s raining, or tailored free bets based on a bettor’s team/sports preference. Ultimately there are unlimited options in what you can do, providing you have the right tools in place.

Consumers are demanding, and recent studies suggest consumers in general are becoming less brand loyal. Personalization is the antidote to this. Some 80% of US consumers said they were more likely to make a purchase from a brand that provided personalized experiences, according to Epsilon. Meanwhile, 90 percent said the find marketing personalization very or somewhat appealing, per a Statista study.

The bottom line is, if your new US customers don’t feel they’re getting the right kind of love, they will go elsewhere, and it’s unlikely they will come back.

How can operators better equip themselves to negotiate the US regulatory landscape?

You need to have a control panel that allows for a flexible regulatory approach in several regions. Software that allows you to configure disparate regulatory requirements, rather than having to develop them individually each time, is a must-have.

Regulatory authorities don’t tend to give much notice, which can disrupt an organisation’s road map. This can be alleviated with the right tech, as certain regulatory directives and checks can be implemented directly on demand. It’s about agility and efficiency.

Smaller operators may lack resources of the big corporations, but can they make up for that by being more agile and efficient?

To a degree, yes. Most businesses today struggle with roadmaps that tend to end up with an ever-growing backlog of development requests coming in from several different business departments. As a backlog grows, it’s typical to also see that several trivial tasks end up taking months to complete since they are blocked in a queue behind bigger tasks.

But now, technology exists that can automate digital processes, build digital features, and produce applications without the need for coding.

With Flows, we can bring many items off the development backlog by allowing business units to implement those features and tasks directly through a no-code interface that everyone can work with.

This spreads the control of a business roadmap across more departments and relieves the pressure from development teams who will in turn gain more time to focus and execute properly on bigger development tasks.

You’ve previously said that the gambling industry should be more willing to share things like API’s and open-source technology. Why is this important?

The gambling industry, more than most other industries, is one that is made up of a large number of providers: payments, games, KYC, platforms, etc. Through more open APIs, innovation can come from 3rd parties that create middleware software that leverages APIs from multiple providers all at once. Ultimately, making this more accessible makes it much easier for the industry to streamline work processes and become more innovative and efficient.

Andrew Cochrane Chief Business Officer of GiG

GiG increases Ontario market presence, powering the launch of Casino Time

Published

1 day ago

April 18, 2024

GamingAmericas.com

gig-increases-ontario-market-presence,-powering-the-launch-of-casino-time

Gaming Innovation Group Inc. (GiG), has announced the launch of Casino Time, powered by its award winning iGaming platform and pioneering real-time rules engine LogicX, with revolutionary sportsbook, SportX soon to follow, to further extend its footprint in the regulated Canadian province of Ontario.

The launch of Casino Time carries extra significance, marking only the second time that on-demand, regulated online Bingo has been made available in Ontario. The new Bingo product vertical, launched alongside a strong Casino offering, will be boosted by GiG’s new sportsbook, SportX, as part of a planned release later this year.

GiG has focused its solutions on driving exponential growth in revenue for operators with its highly scalable iGaming platform, offering localised third party content and leading suppliers for the Ontarian market. GiGs peerless gamification layer creates an optimised and immersive casino experience tailored to regional preferences, swelling client retention and player engagement.

Canadian owned and operated, Casino Time is a joint venture amongst leading retail operators in Ontario’s Charitable Gaming sector, delivering Bingo, Slots and Live Dealer Casino Games. Promising a personalised service and community experience, Casino Time is continuing its long-standing partnership with local charities, introducing its joint fundraising model into the iGaming space for the first time.

Now coming towards the end of its second year of licensed operations, Ontario has emerged as one of the largest iGaming markets in North America, second only to New Jersey according to data supplied by Vixio. The first and as yet only Canadian province to launch a regulated market, Ontario boasts more than 1.6 million active player accounts spread over 40 plus operators, generating €1.3 billion in Gross Gaming Revenue (GGR) in its first year of trading, with this data supplied by iGaming Ontario.

Andrew Cochrane, Chief Business Officer of GiG, said: “GiG continues to set the pace with a strong cadence of brand launches in 2024, and I’m pleased that when operators are seeking platform solutions in regulated markets, GiG is leading the pack. Our partnership with Casino Time, will help deliver something new and exciting to the Ontarian market, and further helps to demonstrate the flexibility of our solutions, adapting to match the regional aspirations of our partners to deliver growth.”

D’Arcy Stuart, CEO of Casino Time, said: “We are thrilled to partner with GiG as the core technology provider of our iGaming platform. Their powerful suite of player engagement tools, as well as diverse content and regulatory integrations, underpin our ability to serve and delight our player community. Our hybrid online and offline customer network, as well as unique bingo offerings, will drive exciting opportunities as the platform and the marketplace continues to grow.”

Bragg Gaming Group

Bragg Gaming Announces Resignation of Chief Financial Officer

Published

1 week ago

April 9, 2024

GamingAmericas.com

bragg-gaming-announces-resignation-of-chief-financial-officer

Bragg Gaming Group Inc., a global B2B gaming technology and content provider, announced that Chief Financial Officer (CFO), Ronen Kannor, has notified Bragg’s board of directors (Board) that he will resign from his position to pursue other career opportunities, effective June 3, 2024. The Company confirms that the search for a replacement CFO has commenced.

Matevž Mazij, Chief Executive Officer and Chair of the Board, commented: “We thank Ronen for his dedication and commitment to Bragg over the past four years and for his unwavering service as a pivotal member of the leadership team.

“During his tenure as CFO, the Company has undergone huge positive transformation including being uplisted to the Toronto Stock Exchange, dual listed on the NASDAQ and successfully completing two acquisitions, all while reporting consecutive years of revenue, gross profit and adjusted EBITDA growth. We wish Ronen all the very best in his future endeavors.”

Ronen Kannor commented: “It has been an honor to be part of the Bragg team which has successfully navigated many challenges and continued to deliver consistent growth over the past four years. I thank the Board for their support throughout my time with Bragg, and I am now fully focused on ensuring a smooth handover to my successor.

“Special thanks goes to my finance team, who work tirelessly to deliver the positive change and financial growth that the Company continues to achieve. I wish them and all of my colleagues continued success with Bragg now and in the future.”

Canada

Rivalry Reports Preliminary Fourth Quarter and Year-End 2023 Results

Published

2 weeks ago

April 5, 2024

GamingAmericas.com

rivalry-reports-preliminary-fourth-quarter-and-year-end-2023-results

Betting handle of $423.2 million in FY 2023¹ increased 82% year-over-year, while reducing marketing spend 15%.
Revenue of $35.7 million in FY 2023 increased 34%.
Gross profit of $16.2 million in FY 2023, up 66% year-over-year.
FY23 sets all-time records for average handle per customer, up nearly 30% year-over-year, average revenue per customer up 38% year-over-year, and record low cost of customer acquisition, down 15% year-over-year.
Total player registrations eclipsed 2 million in FY23 while extending Gen Z market leadership.
FY24 off to a strong start as the capital raised late Q4 is being effectively deployed – delivering strong KPIs, supported by betting margin trending toward a more than 20% increase over the average of FY23.
To meet growing consumer demand the Company is adding greater support for cryptocurrency and exploring implementation of adjacent crypto-enabled technologies.
Rivalry is seeing a rise in demand to license its in-house casino games, accelerating the advancement of its B2B vertical.
Company re-affirms guidance, anticipates achieving profitability in H1 2024.

Rivalry Corp. (the “Company” or “Rivalry”) (TSXV: RVLY) (OTCQX: RVLCF) (FSE: 9VK), the leading sportsbook and iGaming operator for Gen Z, today announced preliminary and unaudited financial results for the three and 12-month periods ended December 31, 2023. All dollar figures are quoted in Canadian dollars.

“Rivalry exited 2023 as an increasingly diversified company – both geographically and across our product suite,” said Steven Salz, Co-Founder and CEO of Rivalry. “Last year we gained meaningful traction in new segments such as traditional sports, casino, and fantasy, which is widening our opportunity set and positioning us for sustainable growth in the medium- to long-term. We’re happy to have finished the year with all-time high customer economics, diversified revenue streams, and a reinforced competitive moat around Gen Z betting entertainment and experiences.”

“During Q1 we have been strategically deploying capital from our fourth quarter investment in areas that are driving customer acquisition and revenue – such as amplifying proven marketing strategies, releasing higher margin products, and developing proprietary betting experiences – that we expect will begin materializing in our results throughout the first half of 2024 and beyond,” added Salz.

“Our operational excellence across product and brand marketing last year are seen across positive KPI trends and continued year-over-year growth. Ultimately, we are proving that we can acquire and retain a coveted Gen Z demographic through an entertainment-led product set, culturally relevant brand, and a team unafraid of pushing past a long-standing industry status quo.”

Preliminary Full-Year 2023 Highlights²

Betting handle was $423.2 million in the year ended December 31, 2023, an increase of $190.4 million or 82% from $232.8 million in 2022.
Revenue was $35.7 million in 2023, an increase of $9.0 million or 34% compared to $26.6 million in the previous year.
Gross profit was $16.2 million in 2023, an increase of $6.4 million or 66% from $9.8 million of gross profit in 2022.
The Casino segment was a significant driver of growth in 2023, with revenues of $6.4 million up 92% from 2022, and representing 52% of betting handle in the year.
The Company expanded its casino offering significantly during 2023, including the release of a new original game Cash & Dash in September, entry into the slots category in October, and the launch of its iOS mobile app in Ontario, enhancing the mobile casino experience and its accessibility.
Diversified revenue streams through new segments including traditional sports, which has grown by 60% since FY22, and fantasy, highlighting the elasticity of Rivalry’s brand among Gen Z and broadening TAM.
Total operating expenses of $38.9 million in 2023 decreased by $1.0 million year-over-year. The decrease was driven by a reduction in marketing expense, offsetting increases in general & administration and technology & content expense incurred to support the growth of the business.
Net loss was $24.3 million for 2023, a reduction of 22% or $6.9 million from the net loss of $31.1 million in 2022.

Fourth Quarter 2023 Highlights

Betting handle for the three-month period ended December 31, 2023 was $85.2 million, an increase of $1.2 million or 1.5% from $83.9 million in the fourth quarter of 2022 while marketing spend decreased by 32%.
Revenue was $6.5 million in the Q4 2023, representing a decrease of $3.0 million or 32% from $9.4 million of revenue in Q4 2022 due to less favorable sportsbook outcomes compared against an abnormally favorable result experienced in Q4 2022. The Company notes that revenue as a percentage of betting handle was near the average achieved throughout FY23, highlighting the abnormally favorable margin outcome in the comparable quarter, Q4 2022.
Gross profit was $3.0 million in Q4 2023, a decrease of $2.0 million or 40% from $5.0 million of gross profit in Q4 2022. The year-over-year decline follows the relative margin impact noted previously. Gross profit as a percentage of betting handle in Q4 2023 was equal to the average in FY23. Rivalry is also pleased to note that its ongoing efforts to stabilize and improve margin are yielding results, with Q1 2024 trending toward a more than 20% improvement over the average in FY23.
Net loss was $9.0 million in Q4 2023, a reduction of $3.3 million compared to a net loss of $12.3 million in Q4 2022. Net loss adjusting for accruals, other non-cash items, and one-time expenses, would have been approximately $7.0 million.
On November 15, 2023, Rivalry strengthened its balance sheet with the announcement of a private placement offering of $14 million principal amount senior secured convertible debentures to scale several strategic verticals across marketing, product development, and geographic expansion.
Released Rivalry Ultimate Fan, a free-to-play NBA fantasy app, to acquire new users and engage existing customers within the product suite.
First-party game ‘Cash & Dash’ released in September demonstrated next generation appeal as it became the fifth most-played casino game on our platform and among the top ten highest-grossing by revenue with momentum carrying into Q1, creating downstream licensing opportunities for Rivalry’s IP.

Outlook

“The year ahead is rife with new, innovative product releases arriving in Q2 and continuing throughout 2024,” Salz added. “In addition to the strength of our core roadmap, we are in the process of unlocking what we believe to be two of the most material developments to our business model since launching Rivalry in 2018. The first is a B2B vertical to license our in-house developed games, and the second is exploration and development within the crypto ecosystem – each representing an impactful growth catalyst on our path to profitability this year.”

“I have never had more confidence in our product roadmap and what Rivalry is building this year. Apart from new products, original games, and proprietary features, we have been working to dial-up the overall feel and entertainment value of our core product to provide a tech-savvy, next generation customer with a tailored experience that is well-differentiated within the larger sports betting marketplace.”

Investor Conference Call

Management will host a conference call at 10:00 a.m. EDT on Friday, April 5, 2024 to discuss the Company’s preliminary unaudited year-end and fourth quarter 2023 financial results.

Dial-in:		800-717-1738 (toll free) or (+1) 289-514-5100 (local or international calls)
		Webcast: A live webcast can be accessed from the Events section of the Company’s website
		A replay of the webcast will be archived on the Company’s website for one year.

Rivalry expects to file its audited financial statements and management discussion and analysis for the period ended December 31, 2023 by the end of April 2024. The documents will be available on SEDAR+ at sedarplus.ca, and on the Company’s website.

Related Party Transaction

On April 17, 2022 the Company entered into a secured demand loan (the “Loan”) with Kevin Wimer, the Chief Operating Officer and a Director of the Company. Pursuant to the terms of the Loan, the Company loaned Mr. Wimer US$385,000 which amount bears interest at 3.2% per annum and was repayable on demand by the Company and in any event by April 17, 2024 (the “Maturity Date”). The Loan was entered into to assist Mr. Wimer with the funding of certain tax obligations and is secured by a pledge of Mr. Wimer’s subordinate voting shares of the Company. The Company announces today that it has entered into an amendment to the Loan (the “Loan Amendment”) to extend the Maturity Date to April 17, 2026. The Loan Amendment was approved by the non-interested directors of the Company.

Mr. Wimer is a “related party” of the Company within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101“). As a result, the Loan Amendment is considered to be a “related party transaction” as such term is defined by MI 61-101. The Company is relying on an exemption from the minority shareholder approval requirement set out in MI 61-101 as the fair market value of the transaction does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101. The Company did not file a material change report more than 21 days before entering into the closing of the Loan Amendment as the details of the Loan Amendment were not settled until shortly prior to the entering into thereof.