Industry predictions for 2021: new German regulation and gamification

Chris Welch, vice president sports, Catena Media

Chris Welch, Catena Media

New German regulation, brace yourself this will hurt quite a bit!

New German regulation will finally land in July 2021 and like a visit to the dentist the pre-regulation nerves will hit and it likely will hurt quite a bit before settling down. Changing the rules in one of Europe’s largest gambling countries during one of the world’s largest betting tourneys will bring excitement and chaos in equal measure. My crystal ball predicts a lot of confusion combined with operators spending heavily on sports betting to grab market share and we will see a lot of quick changes of strategy and direction before the market settles down. The new regime is among the toughest, if not the toughest, in Europe and while the long-term potential for the market is good, 2021 for some will be the end of the German adventure. In the affiliate world, the big will come through it battered and bruised but many will fall. But as Lance Armstrong said: “Pain is temporary, quitting is forever” and those that adapt will prosper, perhaps not in 2021 but certainly beyond.

Canada, a whiter shade of grey

Canadians love to gamble almost as much as they like their hockey. Canada has long been the greyest of grey markets with conflicting federal and provincial laws creating a legal haze and a gambling mecca for offshore operators. Ontario will be the first province to license online gambling in 2021, closely followed by Quebec. The big US players of DraftKings and FanDuel will be early entrants followed by a raft of blue-chip operators. The grey market will persist allowing the current players to ply their trade but beyond 2021 the future is not so bright. Canada, I predict, will be a big positive for those operators who get in early and invest and will prove to be a highly successful and profitable market for those that play their cards right. The Canadian model will follow the US with local provinces adopting different models and requiring each operator to do slightly different things and pay different tax rates.

UK gambling review: the good, bad and the ugly

Like a Clint Eastwood spaghetti western, there will be a lot of noise and excitement and when the music stops not everyone will be left standing. Nobody will argue that change is not needed and new regulations for online gambling designed to protect players (and raise some badly needed tax pennies), will hit operators, some harder than others. Restrictions on what customers can deposit and spend, licensing of affiliates and increased taxes will help the biggest operators and affiliates get bigger and continue the squeeze on player freedoms and choice. The industry, as it always does, will adapt. The strong will thrive, the weak will not and perhaps in the end that’s as it should be. In this movie, the Sheriff will carry a much bigger gun and those not quick on the draw will find themselves leaving town. The result, if it plays out, may lead to less problem gambling and for that we can all be thankful.

Ivan Kravchuk, CEO at Evoplay Entertainment

Ivan Kravchuk, Evoplay Entertainment

Gamification – the key differentiator

Gamification has played a critical role in 2020 and will be even more important in the year ahead. Content developers have gone above and beyond to keep things fresh for an ever-changing audience, with a heady mix of tournaments, new jackpots, loyalty points and in-game events – creating a marketing momentum that will continue throughout next year. The question now is how studios can differentiate themselves by being able to ensure they can provide their operator partners with methods of gameplay that can attract and retain player interest.

3D gameplay, for example, could do just that for the gamification experience – and offers the chance to really kick-start a visual capability that can really be defined as new, with the chance to engage players on a completely new level. It’s these kinds of innovations that can really capture attention because they offer something fundamentally different that can be immediately illustrated with the game’s visuals. I predict there’s going to be plenty more from 3D tech in store for the year ahead, and I’ll be watching with great interest.

Eastern Europe – 2021’s dark horse

Eastern European countries have begun to create a far more attractive commercial environment for suppliers and operators looking to set up shop in the region – and we’re going to see change in real time. Numerous territories across the CIS and the Balkans are updating the regulatory frameworks in place for their respective gambling markets – Georgia, Ukraine, the Balkans, Romania to name but a few – covering a population already approaching 100 million. 2021 will see these regions alone continue with strong growth – and that’s before we even get started on the potential for Poland and the Baltics.

Ukraine is a great example to really look at, with regulation currently in the process of being enacted. As of now, we’re looking at proposals for licences to be issued via electronic auctions, which should set the field for some competitive tenders. Another two to watch will no doubt be Armenia and Bulgaria, which have tightened restrictions on the land-based market and will likely trigger a surge across online. Finally, the Hellenic Gaming Commission (HGC) is now implementing licensing procedures, and I’m sure the Greek market will also have an important part to play in the region’s continued growth prospects.

Tools for growth – accessibility and adaptability

Key growth over the next decade is going to lie in the hands of a number of regions – with Latam a particular proof point. With so many potential players out there, as well as a wealth of retail and land-based fans looking to migrate online during the pandemic, there’s a wealth of opportunity to entertain new audiences.

However, that is going to see a far more specialised level of gaming development in these regions, especially as competition hots up. This will certainly be the case as Latam platforms’ technology becomes far more advanced – as well as the ability to deliver premium games while costing the player far less in data.

Accessibility and adaptability are going to be invaluable to success in 2021, and developers will need to get better at making titles more easily accessible for players without ultra-fast internet connection speeds, or the latest model of smartphone. Adapt to deliver a better product than your competition, ideally far more efficiently and at less data expense for the player – and you’ll be set.