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Inspired Provides Update on Growth Trends and Developments in its Online Businesses

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Inspired Entertainment, Inc. rovided an update on growth trends and recent business developments in its online operations, comprised of its leading global slot and virtual sports content licensed to online operators.

During 2020, aggregate revenue from all of Inspired’s online businesses rose from £1.2 million in January to £3.1 million in December ($1.7 million to $4.3 million)1, a two-and-a-half-fold increase. Inspired’s growth in casino and virtual sports online outpaced the general market, even while the general market for online games grew significantly during 2020.

Much of Inspired’s growth in 2020 came from its existing customer base in Europe, reflecting the growing migration of end users to online platforms, an increase in the volume and popularity of the Company’s new proprietary content, significantly improved game quality, strong account management and the launch of Virtual Plug & Play (“VPP”), Inspired’s complete end-to-end online and mobile all-in-one virtual offering.  Additionally, Inspired launched with over 50 new online customers throughout the UK, New JerseyCanadaGreeceMexicoGermanyBelgiumTurkeyItaly and Sweden and further expanded its base of interactive aggregators.

Between January 2020 and December 2020, Inspired’s peak level of casino game play increased from 8,000 plays per minute to over 22,000 plays per minute, reflecting the scalability of Inspired’s technology platform to accommodate significant increases in volumes.  Inspired expects these growth trends, both in the general market and with respect to its business, to continue in 2021 through further jurisdictional expansion, new commercial agreements and continued strong product development across both casino and virtual sports online.  Given the scalable nature of Inspired’s online business, it is expected that any growth in this business will lead to increasing operating margins over time.

Jurisdictional Expansion
Inspired entered the North American marketplace at the end of 2018 and experienced accelerating growth during 2020.  Inspired’s business is expected to benefit from an increased presence in a number of key jurisdictions.

  • Success in New Jersey – Inspired has expanded its presence to now include over half of the New Jersey operators as revenue-generating customers. Given the performance of our content in the market, a number of additional customers intend to launch our VPP product in the near future.
  • New Supplier License in Michigan – Inspired was granted a provisional license to supply its online games by the Michigan Gaming Control Board in January 2021Michigan has launched play and, with a population of approximately 10 million people, remains a focus iGaming market for Inspired. Building on a foundation of commitments from multiple online casino operators, Inspired’s remote gaming server (“RGS”) platform is expected to launch in early 2021 with 12 slot titles and to add to this continuously going forward.
  • New Supplier License in West Virginia – Inspired was granted a supplier license from the West Virginia Lottery Commission in November 2020 and has commitments to distribute its content later in 2021.

Recent Customer Developments
Inspired has agreements with most of the major online operators and aggregators and continues to seek to expand its distribution channels and brand awareness in North America and beyond by making its casino and virtual sports online content available through these operators and aggregators.

  • Expanded Framework Agreement with Entain – In January 2021, Inspired entered into a new long-term agreement with Entain plc (LSE: ENT) for the provision of virtual sports across Entain’s brands. Entain is one of the world’s largest sports betting and gaming groups, using some of the industry’s most iconic brands such as Ladbrokes, Coral, BetMGM, bwin, Sportingbet, Eurobet, partypoker, partycasino, Gala and Foxy Bingo. This agreement is incremental to Inspired’s existing contract for online casino content and represents a significant extension in scope and duration to the existing arrangements.
  • Expanded Arrangement with Snaitech in Italy – In January 2021, Inspired entered into a new virtual sports agreement with SNAITECH in Italy. This agreement expands upon the companies’ existing partnership and provides for the launch of virtual sports on SNAITECH’s sports betting app and an additional seven virtuals products in 2021, giving SNAITECH the largest suite of virtuals in Italy. Inspired also supplies Interactive content to SNAITECH, a subsidiary of Playtech (LSE: PTEC), which offers sport and horse race betting, virtual sports, video lottery, slots, both online and mobile, esports and pari-mutuel in retail and online.
  • Launch with Stoiximan and OPAP in Greece – Adding to its successful Greek online business, which includes Novibet, Inspired’s Interactive content launched with Stoiximan and OPAP in the second half of 2020, with scheduled online virtuals expected to launch in 2021. Stoiximan is a leading Greek online gaming site owned by OPAP S.A. Inspired’s games have consistently been among the top performers in the retail marketplace in Greece and these online launches bring Inspired’s best-in-class slot and virtual sports content directly to customers both online and in mobile. Greece has been a standout region for Inspired’s online growth in 2020 and creating content for this market is a key strategic objective for Inspired in 2021.

Product Development
Inspired has utilized its industry-leading portfolio of in-house produced virtual sports and slot content to create a diverse portfolio of high-performing HTML5 games for both online and mobile players.  In the past year, the Company has seen an approximate 50% increase in new slot title introductions and the launch of a new online virtual sportsbook and several virtual sports variants.

  • More Online Slot Introductions – In 2020, the Company introduced 31 new Interactive slot games versus 20 in 2019. In 2021, Inspired expects to release up to an additional 40 games into its existing library of over 100 games. Players want to play in innovative new ways and many of these new games will be custom built to suit players in specific markets, such as North America and Greece. In addition to increasing the cadence of game development, the Company believes it has successfully improved game quality while delivering additional proprietary content to operators as it continues to seek to increase exposure, improve game positioning and improve customer relationships.
  • Inspired’s Complete End-to-End Virtual Sports Offering Rolling Out – Inspired launched its proprietary VPP platform in 2020 and has completed integrations with each of the leading RGS platforms including Scientific Games, Playtech, SBTech, Pariplay and iForium. VPP is simple, quick to install and customizable, making Inspired’s multi-award-winning virtual sports available with no sportsbook integration. This first launched with Misli, Turkey’s fastest growing gaming website, and has seen stellar results. A larger rollout is expected throughout 2021.
  • Additional Best-in-Class Virtuals Content – As a pioneer in virtual sports, Inspired continuously rolls out new variants of existing games, including Matchday Soccer (“NFLA”) football. Several additional variants are expected to be introduced during 2021, including specific games and betting structures tailored to the North American market, where Inspired intends to produce best-in-class content as they do throughout Europe.

“We are very pleased to see our Online business continue its impressive revenue growth trajectory,” said Lorne Weil, Executive Chairman of Inspired. “Online gaming is a multi-billion dollar, high-growth segment and we believe we have barely scratched the surface with our casino and virtual sports products. With the growing popularity of our content, increased brand awareness and rapid speed to market, we are confident we are well-positioned to capitalize on this opportunity. Going forward, we expect the online operations to make up a larger part of our business and we are excited for the future as we seek to grow further through jurisdictional expansion, new commercial agreements and product development.”

 

SOURCE Inspired Entertainment, Inc.

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AGCO: Casino Days Penalized $54,000 for Deceptive and High-Risk Bonus Offer

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The Alcohol and Gaming Commission of Ontario (AGCO) has issued a $54,000 monetary penalty alleging Well Played Media, Unipessoal LDA promoted a deceptive bonus on its Casino Days website. The bonus offer is alleged to have encouraged high-risk behavior and failed to properly disclose key terms.

The AGCO launched an investigation triggered by a player who complained that more than $8500 in winnings had been confiscated by Casino Days. The investigation reviewed a so-called “welcome bonus” that promised new players up to $2000.

However, to qualify for the full bonus amount, players had to:

Deposit $2000 of their own money;

Wager $70,000 (35 times the deposit);

Keep each wager at or under $5; and

Complete all wagering requirements within 7 days.

Investigators also found that certain terms of the bonus offer were difficult to find, buried behind multiple links on the site.

AGCO’s analysis showed that the average player would first lose $3640 trying to earn the $2000 bonus.

According to Ontario’s igaming rules, registered operators must not offer bonus promotions that encourage harmful gambling behavior and fail to disclose key conditions appropriately. Further, operators are not permitted to entice players with bonuses that cannot reasonably be attained without significant gambling losses.

These rules are in place to protect players and support a safe, regulated market—one that stands in contrast to the risks of unregulated gambling sites.

An igaming operator served with an Order of Monetary Penalty by the AGCO Registrar has the right to appeal the Registrar’s decision to the Licence Appeal Tribunal (LAT), an adjudicative tribunal that is part of Tribunals Ontario and independent of the AGCO.

“Player protection is a non-negotiable priority for the AGCO. We expect operators to be truthful and transparent about their promotions, and we also require them to ensure that those promotions do not encourage reckless or harmful patterns of play. An offer that requires a player to sustain substantial losses for a perceived benefit is not a fair offer. This penalty sends a clear signal that we will not hesitate to take action against operators who fail to meet their obligations to protect Ontario players,” Dr. Karin Schnarr, Chief Executive Officer and Registrar of AGCO.

The post AGCO: Casino Days Penalized $54,000 for Deceptive and High-Risk Bonus Offer appeared first on Gaming and Gambling Industry in the Americas.

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What’s next for online gambling in Canada?

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Having provided the perfect case study for the benefits of legalised online gambling in Canada, we caught up with Bede’s Chief Executive Officer, Colin Cole-Johnson, to discuss why other provinces may look to follow Ontario’s example in the future and what challenges operators will need to be ready for when they do.

With the regulated online gambling market in Ontario recently being recognised as one of the largest in the world, operators will feel there’s plenty of untapped potential to be realised not just in the province itself, but in Canada as a whole, over the coming months. And for good reason too.

Since legalising online gambling in 2022, the Alcohol and Gaming Commission of Ontario (AGCO) has established a go-to framework for how regulators introduce rules and standards that protect players and enable operators to flourish – and no better is this illustrated than in the performance of the Ontario Lottery and Gaming Corporation (OLG), which has continued to make a hugely positive contribution in the province over the past few years.

Having already paved the way for successful open market regulation through a number of progressive initiatives, with even more yet to come – such as the proposed centralised self-exclusion model –  it certainly wouldn’t be a surprise to see other organisations turn to AGCO as an example of how regulations can be introduced both sustainably and profitably; and this will likely present several opportunities for operators as well.

From Bede’s experience in the country, Canadian regulators are thorough and well organised. Any province looking to follow the success of Ontario will no doubt look to AGCO for inspiration, and this may lead to similar regulatory frameworks in other new territory launches. As the gaming community in Canada is so connected, we’ve already seen cross-operator interest in sharing regulatory knowledge, meaning there’s a wealth of information waiting to be leveraged.

As the most likely province to regulate next, Alberta has already shown a preference for following an open-market model similar to Ontario’s, with the input of various industry stakeholders set to guide the way. The onboarding process for operators seeking to enter this potentially vibrant new market is likely to follow promptly after the new framework is enacted, so existing experience and relationships within the Ontario market should prove advantageous for those looking to hit the ground running.

For Bede, our years working closely with AGCO leave us well positioned to enter additional provinces in the future, and we greatly value the guidance and support we gain from having a direct relationship with the regulator. We aspire to grow even further in Canada by forming more provincial partnerships, and our learnings from Ontario will undoubtedly form a key part of this.

Internally, we have a strong framework for new market entry and regulatory compliance that includes cross-functional representation across the business. We understand the heavy lifting that goes into a launch and the complexity of licensing and delivering a new technical solution. Our approach always involves an analysis of the requirements from a compliance, risk, audit and financial perspective, as well as identifying any gaps where our products can make an impact with the right strategic solutions.

Taking the Ontario market as an example, we’ve seen some noticeable changes in player behaviour in recent years, meaning operators must be prepared to adapt in order to keep up with emerging trends. Although we’ve seen growth for our partners in the digital space, retail remains a predominant revenue stream for Canadian operators. As digital continues to grow, it’s important to provide a seamless end-to-end experience for players across channels, to be effective omni-channel solutions.

As more choice becomes available in the market, offering competitive payment and withdrawal options will be important. A critical part of the player journey that is often overlooked is the preference among players for easy access to preferred payment methods. A great example of innovation in this area is our Lottery Direct Pay method, where players can purchase tickets directly from their card without first having to load their wallet – creating a faster user journey that appeals to a wider audience.

Aside from these payment considerations, it’s worth noting that community engagement features and personalisation are both playing a more prominent role in the Canadian gaming landscape. Particularly among younger audiences, having the ability to offer a shared experience is becoming increasingly important to generating sustained engagement. For example, we’ve already seen OLG enjoy a significant uplift in overall ticket sales since launching the innovative Lottery Group Play tool.

Similarly, the power of personalisation cannot be understated when it comes to building player activity and retention. Through partnerships with companies such as XtremePush and Future Anthem, Bede has endeavoured to utilise more machine learning and AI systems that can broaden the customisation options available for customers, while our dynamic segmentation tool enables them to target user groups more effectively and automate the player journey in real time.

Of course, from the moment Ontario launched a legalised online gambling framework, regulators were required to focus their efforts on keeping up with increased accessibility and, therefore, increased risk of harm to the public. Should another province like Alberta also legalise online gambling in future, the same challenges will exist – and this presents an important opportunity for operators to both educate players on responsible gaming protocol and enforce it.

Given Bede has been operating in highly regulated markets for over 13 years, we have both an established suite of RG tools and in-depth knowledge of how to use them effectively. Evidenced in the UK market and beyond – Bede has developed its platform to meet the tightening controls that have been issued over every aspect of online gambling – enabling operators to create their own tailored mix of tools that best support their players.

Notably, the upper limit functionality in our RG toolset gives our customers the option to monitor and respond to potential problem behaviour by setting maximum limits for specific players. The players may opt to further decrease their own limits, but they’ll be unable to exceed the maximum setting until/unless the operator removes them, reducing the harm they could potentially experience. As well as outright prevention, being able to educate a player in such a moment is equally important – and using our platform, operators can send appropriate, personalised messages to users that encourage them to alter their play and even think about setting time out periods where necessary. For example, our partners can use our Player Interaction feature to set alerts from the front end based on pre-defined player behaviours, and then use that information for RG activities; if a player returns to a page a certain number of times, it can automatically trigger personalised messages to encourage the player to set a limit.

As responsible gaming is a constantly evolving topic in Ontario and other new markets in Canada are likely to experience similar growing pains, supporting regulatory efforts through the smart adoption of harm prevention tools will be a key part of gaining a foothold. This, coupled with the other regional considerations we’ve outlined in this article will be crucial to any operator’s future success in the country; and there are definitely big opportunities on offer for those who get it right.

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Thunderkick’s portfolio makes Ontario debut through SkillOnNet brands

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Global entertainment brand SkillOnNet is deepening its existing partnership with Stockholm-based game studio Thunderkick to launch the developer’s unique, engaging slot titles in Ontario.

The Canadian province is one of the most exciting regulated markets in North America, and the Ontario players will now gain access to Thunderkick’s full portfolio of highly acclaimed games via SkillOnNet-powered online casino brands such as PlayOJO, SlotsMagic, and SpinGenie.

Thunderkick is known for its independent, boundary-pushing slot games like Pink Elephants, Esqueleto Explosivo, and Beat the Beast and has established a strong reputation for creativity and originality in the iGaming space. The deal allows the studio to further expand its global footprint while giving Ontario players the chance to enjoy a fresh wave of premium content.

Ontario’s regulated online gaming market, which officially opened in 2022, has quickly become a key market for the iGaming industry, and SkillOnNet was among the first brands to secure licensing in the province. The expansion reinforces SkillOnNet’s commitment to delivering top-tier entertainment in regulated markets globally.

Jani Kontturi at SkillOnNet said: “Thunderkick has been a key partner of ours in other markets, and we’re delighted to bring their outstanding content to Ontario. This region is fast becoming a vital part of our operations, and we’re confident players here will respond just as positively to Thunderkick’s games as they have elsewhere.”

Mariam Dodosh, Account Manager at Thunderkick said: “We’re thrilled to expand our relationship with SkillOnNet and enter the Ontario market together. Our games have a track record of strong performance, and we’re excited to see them go live in one of the most dynamic new regions in iGaming.”

The post Thunderkick’s portfolio makes Ontario debut through SkillOnNet brands appeared first on Gaming and Gambling Industry in the Americas.

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