Global Gaming and Lotteries To Twist

Here is a few reflections from the largest global casino, lottery, mobile and social gaming event, ICE Totally Gaming 2015, held in London this week:

  • With regulation on a par to the nuclear and energy sectors, can investors really be sure that the valuations for most gaming businesses today have adequately priced changes in regulatory risk?
  • Industry faces unparalleled level of intrusion. In the next 5 years a prominent gaming or lottery business will be a target of cyber terrorism from those whose values conflict with gaming and lottery operators.
  • When the overt marketing message is pushing girls in skimpy outfits with bad fake tans rather like a tired 197os porn film, does it really create a seductive rapport to your brand and its’ products and services or signal that your business has runs out of new ideas and excitement?
  • The sector doesn’t lack for people with abundant enthusiasm but it does lack abundant leadership prowess. Crossing that divide arguably biggest challenge.
  • When the immersive mobile and social gaming experience is so life-like why get on a plane or train to travel to Las Vegas or a London casino with the added cost of rooms, food and beverage and transport?
  • The future of gaming and lotteries is either (1)  a fully immersive gaming offering or (2) fully immersive gamification
  • Expect a significant rise in strategic collaboration, particularly additional services added to the lottery’s offerings
  • “Live” gaming experiences (casinos, sports betting, and so on) will close in even bigger numbers this year, when the consumer can find more excitement and value at home or in other pursuits.
  • The failure of major casino, sports betting and lottery operators to embrace innovation within their business will preface exponential growth in reactive/defensive investment in early-stage growth business this year.
  • Technology vendors in the sector face an increasing gulf between the “have’s” (knowledge, capital and scale) and the “have nots” predicating increased merger and acquisition activity in 2015. (IGT-GTech, Amaya and Scientific Games just the start).
  • Government agencies that are tethered to outdated legislation (Canada, US, Europe) are accelerating the irrelevance of regulated gaming and lottery products as the market diverges with changing customer preferences, demographics and so on. Expect greater friction and legal disputes in the next 12 months.
  • With few barriers to entry, the sector doesn’t lack for entrepreneurs wanting to create and build businesses but how many really “cash out” with a meaningful cheque? Expert a rise in incubators, accelerators and corporate venturing in the next 12-24 months.
  • While ICE like G2E has positioned itself as a “go to” trade show event, the learning opportunities (seminars and conferences) and the value derived from them are still no greater than 4/10. Organisers, sponsors and participants have a lot of work to do to attract a more impressive crowd. Expect the smarter exhibitors to fill this thought leadership “gap” in the next 12-24 months.

© James Berkeley 2014. All Rights Reserved.

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