Egaming industry predictions for 2014 - part three
In the third of a series of articles leading up to the New Year, we ask egaming experts to look into their crystal ball and predict the big themes for 2014
Peter Marcus, egaming consultant and former Betfair UK managing director
1) A complete re-look for UK-facing companies on cost structures and a real emphasis on how to move forward with the Point of Consumption tax. The companies that get it right now have a chance of being successful in the future, and the companies that don’t are going to really struggle. I think they’ll be a massive amount of marketing in the UK next year, and I think you’ll see another attempt at diversifying as companies too focused on the UK will have to look outside.
2) Smaller gaming operators “ the likes of BetFred and Victor Chandler “ will have a good year as they’re more nimble and have gone through their challenges and have reassessed their strategies. Big operators will now struggle to grow, and it’s the tier two companies that will start recording the big growth numbers next year. Actual, real innovation will also be key because a person that innovates is going to succeed in this new, tax-ridden industry. If you keep on doing the same thing, it’s not going to work.
3) For the second half of next year and early 2015, there will be massive consolidation in the sector. Smaller companies will be ripe for acquisition and cost control and economies of scale will be all important. Companies will be able to be bought for a very good price and the purchaser can then strip out all of the cost, keeping just the customer and the brand. There aren’t too many examples of this in the industry apart from maybe GVC and Sportingbet, but I think that could occur more often in the latter half of next year.
Simon Collins, executive director and founder of Gaming Realms
1) Twitter and Facebook will continue to add users Facebook and the latter will break a billion global users in 2014. These networks will continue to be critical to new CRM techniques and user engagement for gaming firms. Paddy Power has done a great job using Facebook to chat direct to customers in 2013, others will follow their lead in 2014. This is an area where Quick Think Media our recent acquisition has invested significant time and resources.
2) Consumers are very excited by wearable technology such as Google Glass and in 2014 we will see the first spin of a reel or bet placed using one of these new wearable devices.
3) Bluetooth Low Energy beacons will start to appear in 2014, most likely at sports grounds and shopping centres. Beacons can be placed around stadiums and they will facilitate communication with smartphones and tablets offering users related information about the game such as maybe Opta stats. In 2014 a sports firm will via their existing partner status offer a live in game bet opportunity via this unique technology.
In other news:
– Egaming industry predictions for 2014 – part two