Women in gaming: Natalia Zavodnik on regulated markets

Low-margin bookmaker Marathonbet has been operating in regulated markets like the UK for more than 15 years. And while the independent and privately owned firm continually has to punch above its weight in a crowded and mature marketplace, it is seeing steady levels of business in the UK. “With the UK market, we have optimised our digital strategy during the last year and we keep receiving a very steady flow of deposits and level of business, so we’re quite happy with its results at this moment,” says Natalia Zavodnik, who became Marathonbet CEO in 2017.

With over 100 staff based in the UK, as well as local expertise for compliance/legal, the Brighton-based company is fully committed to the UK market. While some of its low-margin competitors have had to exit the UK due to the regulatory regime, particularly when the PoC tax was introduced in 2014, Marathonbet has been able to entice those customers who are looking for a low-margin product with a large range of markets to bet on.

“With the exit of some operators with low-margin business models, we are the go-to option for these kinds of bettors, and we are also seeing some customers come back to us, which has been encouraging in the current climate. Therefore, we’re quite happy with what we see at the moment – good quality customers who are really enjoying the product itself,” says Zavodnik.

In terms of costs, the bookmaker has staff working not just for Marathonbet UK but also for the wider global business. Even though it has reduced its marketing spend over the last year due to the Covid-19 pandemic, Zavodnik confirms that the moves taken, including targeted spend focused on enhancing the company’s most profitable digital channels, have ensured the UK business remains sustainable.

On the upcoming Gambling Act 2005 review, which could potentially curtail or ban gambling advertising altogether in the UK, the Marathonbet chief believes that if the review is targeted correctly, then the operator won’t feel much change. “For instance, in Italy hardly any advertisement is allowed but customers are still aware and finding what they want. We know our USP is our low-margin model so I don’t think any gambling ban will have a big effect for us in terms of the type of customers that regularly seek us out for our value,” she explains.

Alongside the advertising ban in Italy, operators are also facing the challenge of an emergency turnover tax on sports betting brought in by the government until at least the end of 2021. The 0.5% tax was introduced as part of the country’s ‘Revival Decree’ to revitalise Italian sport and the economy following the impact of Covid-19.

While Zavodnik acknowledges it has hit Marathonbet’s finances along with uncertainty around concessions, she said the Italian business is performing well.

Marathonbet is also well known for its prominent football sponsorship deals with teams such as Manchester City and Sevilla FC and it is these relationships which gives an “additional trust to our brand”, points out Zavodnik. However, this could be impacted by future crackdowns on advertising in the UK as seen this year in Spain with local football clubs required to end all gambling sponsorships by the completion of the 2020-21 football season.

“Sponsorship is a very effective way to market to the target audience, especially for the sportsbook. We will definitely finish in Spain because regulation has changed. We’re finishing the season and there will be other channels we can use. And there’s time limits when we can advertise. But we’re still looking into the strategy in Spain and what will be affected there. In the UK again, we will see what the changes will be like and then we will adjust accordingly.”

Next on the agenda for new markets to enter is Denmark, where the operator is in the final stages of launching with sportsbook and casino. “We are working on Denmark and we are at the late stage of sorting everything out with the regulator. It’s been quite a long process because the technical requirements are quite high and with the pandemic that slowed everything down. But I hope we are at the last hurdle and then we will be able to start,” she reveals to EGR Intel.

When quizzed on whether Marathonbet is interested in the Netherlands, which is due to finally go live with its legalised market in October, Zavodnik confirms the operator is not looking at any other new markets at present. “We are not looking into anything at this moment in terms of the development because it is a challenging time. So, we will see how it goes. We’ll finish with Denmark and assess where we are.”