Q&A: NetEnt CEO, Per Eriksson
Per Eriksson, CEO of slots supplier NetEnt on the Swedish firmâs US success story
Q: After your launch with PokerStars and Resorts Casino in March, you are now live with every Tier One operator in New Jersey â did you expect that to be the case when you launched in the US?
A: We didnât expect it to go that fast and the success weâve seen in all the casinos is beyond any expectations we held. Our games have been well received across the board and it seems that the competition in New Jersey is different than it is in Europe. We donât have Playtech or Microgaming there and I would say IGT and Scientific Games â their games arenât the same and the services around the games are not the same as operators get in Europe. When we give that service to operators in the US, we can really separate ourselves.
Q: Are US customers any different?
A: They prefer slots for sure but table games are also popular so many of the operators are asking for table games as well.
The mobile penetration actually is higher than Europe, which we didnât expect. We were surprised because the mobile infrastructure in the US is not as good as Europe, but this is actually a bonus for us. Mobile now makes up around a third of our total game win and itâs a key part of our success. We think we have a leading proposition on mobile, in part because we develop all our games mobile-first.
Everything looks so good in the US, but the real frustration is how slow it is for the new states opening up. Thatâs the frustration for online casino operators and suppliers.
Q: How involved are on the lobbying side of things? Are you in regular contact with regulators?
A: We talk a lot to regulators and politicians. I met with a Pennsylvania regulator two weeks ago and it looks to me like they will be the next state to open up, but itâs still up to the politicians.
I think the online casino industry needs to get together and start lobbying collectively because one supplier or operator doing it on their own just doesnât work; you need a representative body. Thatâs actually something we are exploring with other operators and suppliers at the minute. I think itâs quite urgent to get that lobbying going because we have Sheldon Adelson on the other side, although he is holding a position I simply do not understand.
Itâs absolutely crazy. He doesnât realise what a fantastic opportunity internet gaming can provide for land-based casinos. You can get great CRM and control over all your customers; you know who they are, where they live, what they like to bet on and for how much. You can get them playing casino in their home state and give them promotions like free rooms and meals to get them to return to the casino.
Everyone I speak to is interested in a representative group, so we are looking at how we can get this going.
Q: Is the regulation more difficult to comply with compared to Europe?
A: Not really â once you have done the UK, Italy, Denmark and so on, it becomes similar. The regulators talk to each other, what they want to see is suppliers and operators that are following the rules.
Sometimes itâs not 100% clear what the rules are and itâs important to build relationships with regulators, so we are constantly asking for guidance about that.
Q: Have you considered the social casino market as a way to get into states where RMG is still illegal and get your name known?
A: Yes we have considered it but we will see how long the regulation process is going to take here. If it takes forever, as may be the case, then social gaming is something we could look into. We would likely have to partner up with someone but thatâs down the road. Our primary focus is still play for wager, because thatâs where we have our competence and experience.