Egaming industry predictions for 2019 - including M&A, bonusing and gamification

Simon French, partner, Bixteth Partners

1) M&A goes global as a US operator acquires a UK-based company. The deal becomes hotly contested as the value and expertise of experienced online operators becomes recognised.

2) Egaming revenue growth in the UK accelerates after a greater than expected proportion of FOBT stakes migrate online after the implementation of £2 maximum stakes.

3) The increase in Remote Gaming Duty to 21% causes a larger than expected number of smaller operators to exit the UK market resulting in market share gains for the larger, well capitalised operators.

Gethin Evans, digital marketing director, Racing Post

1) Marketing mix changes: It remains to be seen how the changes to when TV spots run for non-horseracing live sport impacts media planning. This could well mean a lesser focus on TV and more investment in content partnerships to reach the key audiences.

2) Share of wallet focus: The importance of winning this battle grows further as a) the UK acquisition market matures and b) operator consolidation continues. Success means consistently delivering the very best features, content and strategic partnerships in equal measure.

3) Social responsibility: Trusted brands doing the right thing by customers will ultimately win. The ability to execute beyond the existing regulatory requirements is a prudent approach.

Mark Thorne, CMO, Wishmaker

A new generation of customer is coming of age and I predict 2019 will be a year that operators ignore them at their peril.

Basic bonusing is dead: Millennials already make up more than 35% of the global workforce, and their spending power will soon be greater than any other generation. When it comes to iGaming, they demand ease of use, seamless UX, and above all – a reason to return to the same operator again and again.

The previous retention model that we have seen from operators over the last few years has focused on the bonus element, such as earning money back for spending more, but in an ever-more competitive marketplace, operators will have to up their game to retain a players’ interest.

To appeal to a new generation of customers and maintain market share, operators will need to offer a superior level of experience, going above and beyond the simplistic methods of offering players cashback and free spins.

Gamification really is the future: 2019 will see a fundamental shift in the way that operators interact with players. With seconds to capture their attention, brands will rush to find ways to go above and beyond “bet small and win big” to meet the demand that the new generation of players are craving.

We’ve all heard about gamification being the future, and it really is. Those who find a way to present a differentiated offering in the form of a real-time gamified experience that goes above the traditional offering will be the ones counting their winnings come the end of next year.

But be warned – those rushing to find a ‘silver bullet’ in the form of an iGaming version of loot boxes should take a step back first. An operator is not going to become an overnight sensation with the millennial market just because they offer engaging achievements that can be unlocked. An additional layer of gamified experience to retain a player’s attention will only work if the layer beneath them (i.e. the casino) is worth playing. If the tech behind the platform lacks a seamless UX and a flat, uninspiring games selection, then anything extra built on top will be akin to a house on sand.

My advice for operators looking to succeed in the year ahead is to get your underlying platform technology in first, and then spend the rest of the year offering a unique experience that will keep players coming back for more. Get it right, and you’ve captured a new generation of players’ attention for good.