Egaming industry predictions for 2018 - including UK regulation and World Cup opportunities

Dan Waugh, partner, Regulus Partners                 

1. New Year, new approach? – The government will abandon its notional three-year cycle for reviewing gambling regulations and its scope will become more expansive. The triennial review system appears to be unworkable – we have had two in 12 years since the passing of the Gambling Act. The current one is already over a year behind schedule and seems likely to leave a good many issues unresolved – issues that will not be able to wait for another three or five years to resolve. A root and branch review of the industry might be the most logical solution; but don’t be surprised if we end up with a series of smaller (lower profile) reviews with discrete aims.

2. Crime weighs – Gambling-related crime is likely to push up the agenda. We have seen a few Gambling Commission sanctions this year where criminal acts have been committed to fund gambling (and have gone undetected by operators). Yet these enforcement actions perhaps represent the tip rather than the iceberg. There is growing appreciation of links between problem gambling and crimes such as theft, fraud and domestic violence; and politicians (Tom Watson in particular) are starting to take notice. Operators should gain a good grasp of the subject and seek to get ahead of any public policy debate.

3. Bearing examination – It will be another volatile year for the gambling industry. It will be some months before the government review of gambling regulation is published and the eventual outcome is unlikely to prick the bubble of public concern. The Labour Party will exploit the slow pace of the process and its own review will place uncomfortable emphasis on disordered gambling and public health. The Competition and Markets Authority will take action against operators and the scope of its investigation will continue to expand; and the Information Commissioner’s Office’s report will lead to radical changes for the affiliates market.

Matt Stephenson, managing director, Betgenius

1. A World Cup like no other – This won’t come as a surprise to most in the industry but the 2018 FIFA World Cup in Russia will blow away any previous records when it comes to betting levels. Aside from Italian operators, who will suffer a big drop in interest in the absence of the Azzurri, most European bookies will be licking their lips at the convenient kick-off times as well as ever-increasing coverage and profile of international football’s flagship tournament. The smartest ones will be rolling out their acquisition strategies already and gearing up for standing out from the crowd.

But my main prediction is around the impact same-game accumulators will make. The World Cup is perfect for the likes of BetBuilder (launched by us in partnership with our friends at Sportcast), SkyBet’s RequestABet and William Hill’s #YourOdds. Recreational punters’ knowledge of the teams won’t be as high, say, as their knowledge of Premier League teams, so many will be taking ambitious, low stake punts in the hope of getting lucky.

2. A breakthrough year in the US – With the US Supreme Court ruling on whether New Jersey can legalise sports betting due before the summer, 2018 could be the year the US becomes a viable market for sportsbook operators and suppliers across Europe. Of course, what this will mean in real terms is unknown and no one can accurately predict how regulation will spread (or not) beyond the Garden State. But should SCOTUS rule in favour of New Jersey, as I believe it will, the window of opportunity will be sufficient enough to stir many into action.

But many will try and fail to cash in on the US market. Understanding the local landscape, the nuanced requirements of licence holders and cultural differences will be key. For us, as part of the Genius Sports Group, ensuring the interests of US sports and the integrity of their competitions are protected will be paramount as the story plays out.

3. Problem gambling will become everyone’s problem to solve – The perennial challenges posed by problem gambling have traditionally fallen squarely at the feet of B2C operators. Progress has been made by sportsbooks in the form of proactive identification and support for at-risk customers, industry collaboration and investment in research. However we believe responsible gambling measures must be embedded into the entire sector – not simply when the customer is interacting with a bookmaker brand.

To that end, we are working to ensure our sportsbook platform gives operators (and their customer base) all the tools they need to identify and support customers who are betting beyond their limits. For all the talk of AI and machine learning driving profit in this industry, its most beneficial application of it might just be to take responsible gambling programmes to the next level.