Egaming industry predictions for 2018 – including US regulation and social responsibility
In the first of a series of articles leading up to the New Year, EGR Intel asks industry experts to predict the big themes for 2018
Joe Saumarez Smith, chairman, Bede Gaming
1. Regulation will continue to be a huge theme for anyone in the industry. In the UK the Gambling Commission will undoubtedly strip an operator (or more) of their licence, probably in the first three months of the year. The European Commission’s decision to drop all infringement procedures against Member States in relation to online gambling may well spark some regulatory crackdowns on operators. It’s going to get harder to be an operator and excuses about why you don’t have the correct responsible gaming and regulatory controls in place aren’t going to be accepted.
2. There was plenty of M&A in 2017 and I think that as long as there isn’t a stock market crash then the acquisitions will continue in 2018. Money is cheap, scale is vital in ever more regulated markets and growth is hard to achieve organically. I’d expect the Scandinavian-listed operators to be especially active but I also think that with the United States sports betting market opening up that the big players in that market will be looking to beef up both their operational expertise and their technology offering.
3. The potential opening up of the US market for sports betting has been on the horizon for 20 years but the vibes are remarkably positive. But even if PAPSA is revoked, it is going to be a long process to actually getting states to allow sports betting, especially online. The people who will make the most money from US sports betting may well be lawyers, lobbyists and consultants.
Eva Karagianni-Goel, chief of staff, Colossus Bets
1. US regulation turns the page – There has been a lot of talk in the past few years on the topic of liberalising sports betting in the States with virtually every interest group, from consumers to sports leagues, adding their voices to the public debate. But as New Jersey gears up to take on the federal government on the grounds that enforcing PASPA 1992 constitutes ‘commandeering the State’ and is therefore unconstitutional, the tide seems to be changing in favour of those who support regulated sports betting across the country. I predict the Supreme Court in the first half of 2018 will come down in favour of New Jersey and legalised sports betting in the US will soon flourish.
2. Betting on horseracing strikes back – After years of sports betting ‘stealing the show’ from both a growth and innovation standpoint, betting on racing is set to get a much needed innovation boost in the form of big jackpot pools with Syndicates and Cash Out to be offered by Colossus to our whole network and in partnership with a consortium of 54+ British racetracks from July 2018. Although admittedly a self-serving prediction, we believe this launch will deliver significant benefits to bettors and modernise racing as a betting medium.
3. Social responsibility takes centre stage – As the pressures of regulatory scrutiny and enforcement mount, social responsibility is becoming a genuine industry pursuit. What was seen a few years ago merely as an operational burden will now be addressed both as a strategic priority to mitigate the risk of increased regulatory intervention and as a potential USP to cultivate positive brands and consumer acceptance.