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Could PAM be the key to the US opportunity?

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The US holds untold potential as it steadily regulates and many believe that an advanced, smart Player Account Management (PAM) system should be a priority for operators wishing to reap those rewards.

 

Gaming Americas spoke to four of the industry’s premier PAM professionals to find out what operators should be on the lookout for.

As the US becomes more regulated, what advantages does a Player Account Management (PAM) system offer?

TS: The US is growing rapidly and nobody wants to be late to the party. Right now, operators are in a huge rush to go with any available product that is ready-for-market, and some are taking the M&A route to solve this issue. We recently saw that DraftKings acquired BlueRibbon for the jackpot product they developed, as well as Bally’s tabling a bid for Gamesys to improve its digital platform capabilities. However, most operators do not have a budget to acquire products and instead need to lean on third-party providers to build their business.

Rather than going down a similar route of acquiring technology layer by layer, the advantages of using a PAM solution are clear. The operator can differentiate within CRM and segment players for superior engagement. In addition, each US state has differing regulatory requirements. If you are building infrastructure for an individual state, that means you need to repeat that process time and time again. Our PAM system offers a single infrastructure that can be rolled out quickly, for fast, seamless entry into multiple states. We call this a ‘state in a box’.

BW: A PAM system should be the engine that powers the full solution and does exactly what it says on the tin. At Amelco, we’re able to deliver a full-service ecosystem for gaming that combines all verticals (eSports, Sportsbook, Casino etc) powered by our own PAM, which offers multiple components that take the customer through the full journey.

The ability to offer this is especially key in the US – where a full PAM system is a necessity for delivering a 360-degree offering in what is, in effect, only recently online territory. A 360 offering can help an operator stand out and not all leading sportsbook suppliers have this, and they’ve certainly felt the impact.

The wallet element of the PAM system is the real differentiator, and the more dynamic your customer journey is, the more your offering will resonate with a modern American player that expects speed and convenience. At the end of the day, solid foundations are the name of the game in the US, and having a powerful PAM effectively reduces the need for an operator to create a dedicated department. Coupling that with the retention numbers the solution provides is a recipe for success.

RF: A single instance of PAM back office or administration for the operator allows for the viewing of revenue reports, player behaviour and analytics, configure CRM, define segmentation and set bonus programmes in place. This is a clear advantage and allows for the management of sports, casinos and more in an incredibly lean and efficient way.

A successful PAM provider offers rapid, in-house integration of content alongside features such as a product-wide bonus system, integrated and capable CRM and a tightly integrated Data Warehouse solution. Crucially as more states open up, built-in compliance parameters which can be easily configured for each jurisdiction are a must. A system that offers an efficient player acquisition and retention options are also beneficial as operators scramble to gain market share in new territories.

The winners will be those B2B providers that can offer full-stack solutions, meaning the possibility to handle both back-end and front-end services. Full-stack solutions are better integrated and provide a service that is much better received by end-users. Through our growing stable of brands, technology and content including the ORYX PAM and player engagement features, at Bragg we offer the lot.

CL: A successful PAM provider offers rapid, in-house integration of content alongside features such as a product-wide bonus system, integrated and capable CRM and a tightly integrated Data Warehouse solution. Crucially as more states open up, built-in compliance parameters which can be easily configured for each jurisdiction are a must. A system which offers an efficient player acquisition and retention options are also beneficial as operators scramble to gain market share in new territories.

The winners will be those B2B providers that can offer full-stack solutions, meaning the possibility to handle both back-end and front-end services. Full-stack solutions are better integrated and provide a service which is much better received by end-users. Through our growing stable of brands, technology and content including the ORYX PAM and player engagement features, at Bragg we offer the lot.

What PAM features are going to be important to operators as the US market evolves? How will these be implemented?

RF: Both generic, such as player protection features, and state-specific RG and reporting functionality will be key. To succeed and to keep up with the expected pace of states going live, these modules need to be flexible to keep up with new requirements, but also scalable so they can work across the platform, varying states and customer needs.

For some PAMs like White Hat Gaming, this is based on learnings taken from work that has been done for the EU regulated markets and this will really help especially as it’s expected that some states will follow the UK’s lead. The second part is a tight integration of land-based offerings. This will mean that payment integrations with machines, cages and also API to proprietary loyalty schemes will become increasingly important to optimising cross-sell in both directions.

Obviously, there are other features, such as fully integrated bonus tools and intuitive marketing campaign segmentation and orchestration, that should be tightly coupled to the PAM.

TS: There are three key elements within a strong, successful PAM. First, it provides the ability to connect a player wallet to many integrations – everything from payments to content providers and KYC. Second, there is the creation of automated funnels for onboarding players, collecting documentation and creating scalability for the operator. Third, it is the ability to programme advanced CRM and promotional tools and to then communicate these through many different channels. All of this comes together to create higher player value for the operator.

It is also true that in the US as with other markets, the PAM alone is not enough. We approach operators with our full package of sportsbook and casino products and services, including managed services, in order to appeal to land-based businesses in the US that want to move online.

CL: Responsible gaming products are paramount for all stakeholders, both to fulfil responsibility requirements and guarantee business sustainability. We have already started seeing a shift from traditional responsible gaming tools such as self-exclusion, reality checks and spending limits, to more advanced solutions capable of detecting and preventing addiction. Responsible gaming is more important than ever and identifying and preventing harmful behaviour is a priority for all.

We also expect that player engagement tools will be key in the US and, given the existing interest in social and gamification features, familiarity and demand will be high.

PAM suppliers with experience in land-based and omni-channel solutions will also have an advantage. Mobile is king, but an understanding of retail solutions and methods of delivery through various channels could make the difference.

BW: There’s one main gamechanger – KYC, and, in particular, the ability to offer single logins across multiple states. To put this in perspective, as it stands for many, old-school operators need their customers to download a new app each time they cross state lines, which is a real headache. Removing this obstacle is going to be essential for many when it comes to scale.

The way I see it, it’s all about creating solutions that are unique to the US market, and these need to suit the completely new dynamic that the US presents. Such KYC-based features need to offer a solution that makes it as easy to get involved in the action as soon as possible. Each additional minute lost during the sign-up process effectively means a loss of initial retention. Of course, that’s starting to change now, with the likes of Iowa’s elimination of the need for players to initially register on-site with a casino sportsbook being a good example. Of course, a solid bonus engine is also crucial to what the PAM can offer.

Scalability will be important in such a fluid environment, what challenges does this pose in the development of a PAM offering and how can those be overcome?  

CL: The US market is expected to bring a very high number of players/transactions, which will require the platforms to have powerful and scalable solutions capable of coping with the traffic. It will be essential for suppliers to ensure the very lowest downtime and the fastest disaster recovery times. The US market will demand the highest standards and the penalties will be high, so providers must be on top of this.

TS: Features that are crucial to scalability include automation, the seamless onboarding of the customer and cash-out options. In the mass market, with so many players involved, it is crucial that manual processes are removed from the equation in order to grow.

I believe the high double-digit growth we have seen in the existing US states will continue for the next few years. Back in Europe, the first regulated markets grew dramatically in the beginning, but experience dictates that after that initial period, US regulators will re-assess the situation and that could have an adverse impact on limiting operator growth, effectively stabilising the market.

RF: Scalability in this sense to us isn’t just about being able to cope with traffic for the Super Bowl or the Kentucky Derby, it’s about quickly being able to scale across multiple states, adding multiple clients, supporting multi-app and product strategy while offering single instances of back office, CRM and bonus tools.

Trying to retrofit this scalability to old tech stacks is challenging so PAMs that have been developed from scratch with this in mind will overcome this type of scaling issue much more effectively.

BW: It’s all about single login and a single app. Operators need to be able to scale across multiple states, which means a hub-and-spoke architecture design that can enable a singular HUB to power spokes across numerous jurisdictions via one app. This is not yet mainstream in the US, but this is what operators need to start doing if they want to lay claim to a national presence.

The design, look and feel of such an app is also essential – and we need to remember this is one of the world’s most discerning markets for customer UX when it comes to entertainment. This means the ability to offer differentiators is key, such as bonus campaigns with interchangeable widgets – all embedded with casino – removing any need for a separate casino app, and potentially a further loss of retention.

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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.

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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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