Posts Tagged ‘new partners’

London: ICE Totally Gaming 2018 Re-cap

Thursday, February 15th, 2018

ICE Totally Gaming likes to style itself asthe only B2B gaming event that truly brings together the international online and offline gaming sectors”, here is some future thinking about the sector fresh from last week’s annual event.

  • The biggest event headline was a pointed article in The Guardian questioning the industry’s evolution in a #MeToo world (overt sexualisation of products). For a sector, whose branding has heavily relied on testosterone-fueled excitement, it is an awkward question with few, if any, obvious answers. When for example, over 50% of Las Vegas revenues arise from non-gaming tourism and events, “what happens in Vegas may no longer stay in Vegas” might need to be the new logo, at least in the corporate events market.
  • Caesar’s Entertainment, arguably the must public US corporate casualty in the 2007/8 financial crisis, is back on the front foot. After 10 difficult years, the Mark Frissora-led business has a spring in its’ step. The ex Hertz and GE executive is exuding confidence, exploring multiple partnerships and projects. Often in ways the Caesar’s brand has never successfully been positioned in adjacent markets internationally.
  • Italy remains a gaming paradox. Wrapped in regulation and taxation issues like many US markets, operators and investors can see ripe apples hanging on the trees but their attempts to grab them are constantly frustrated.
  • US sports betting and the US Supreme Court judgement. Everyone is gearing up to get in on the act, not least the US tribes, who with smaller, more entrepreneurial business models may be ideally-placed to bring the most innovative ideas.
  • UK sports betting is approaching a huge fork in the road, ahead of the Government’s ruling on fixed odds betting terminals or “pokies” to my Australian friends.  Stick with limits of four machines per betting shop and a £100 stake per play, a ferocious political and media wind (Daily Mail front page hardship stories. Restrict stakes to £2 per play (prevalence of social welfare issues), see sports betting “majors” (Ladbrokes Coral, William Hill) and others dependent on their largesse (UK horse racing, UK government tax take) face a seismic change to their business models (30% reduction in gross gaming revenues, closures of 30-40% of their betting shops, 1000 of redundancies). Should we care? That depends on your view as to who is responsible for an individual’s actions. My personal opinion is that I am firmly against any form of gambling where there is not a fair and equitable chance of the punter winning long-term. If you applied my principle, we’d be closing down swathes of automated gaming machines, online card/roulette games and pools betting in casinos, bookies and so forth, where the “house” has a huge advantage (size of take out). We’d have more revenues directed to “equitable gaming and betting”.
  • 2018 is arguably the most profound and volatile year for gaming and betting’s adaption to changing societal mores, regulation and tax.  Yet for the smartest investors and regulators, this might well be the greatest year of opportunity (upturn in incumbents business models and branding, new markets, new value propositions, new ways to attract and retain customers, new ways to adapt to regulation and tax risks).

© James Berkeley 2018. All Rights Reserved.