Probability awarded Italian licence
Mobile gaming business poised to enter slots market on a B2B basis if granted further authorisation next month.
Mobile gambling operator and B2B provider Probability has secured an Italian egaming licence, which will allow it to introduce a full white-label offering to the market.
The 10-year licence comes just months after the company completed the acquisition of Playyoo, an Italian-facing mobile specialist which has B2B agreements in place with Snai, Cogetech and Neomobile.
It will now be able to augment those B2B relationships with a complementary white-label service, and stands the company in good stead ahead of the issue of online slots authorisations in December this year.
Probability already offers a white-label service in the UK, which – according to analyst Ivor Jones of Numis – accounts for approximately 20% of revenue.
Italian regulator AAMS is due to issue slots authorisations on two separate dates during December, with the first online slots on track to go live the following month. Slots with tumbling reels are already available, however these are understood to account for a minority of the online slots market worldwide and are expected to be overshadowed by the launch of spinning reel slots in the new year.
Chief executive Charles Cohen told eGaming Review: “I’m not into reading tea-leaves, but if you combine the fact that slots are the largest part of the Italian gambling market and the Italians love their smartphones, if you put two and two together you could be forgiven for getting five.
“Our expertise in mobile gambling is tailor made for Italy, where some 30% of adults now have a smartphone and where slots games – our best performer in the UK market – are by far the most popular way to gamble,” he added in a statement today.
eGR‘s data partner H2 Gambling Capital anticipates mobile slots to initially contribute between 8-10% of the slots market in the early stages, but to grow “Dependent on the quality, availability and choice of mobile offering amongst other factors.” H2 adds that online slots will be a contributing factor in the Italian egaming market doubling in size by the end of 2015.
Jones issued a ‘Buy’ recommendation on Probability stock this morning, saying: “The newly awarded licence, combined with Playyoo, positions Probability to be transformed by the introduction of online slots games in Italy, expected next month.”
Noting that “Probability will bring its core skill to a large new market in association with well-financed, widely recognised brands,” Jones suggests that dot.it slots games will begin generating revenue for the company in the first half of 2013.