News
Pollard Banknote Announces 1st Quarter Financial Results
Reading Time: 12 minutes
Pollard Banknote Limited released its financial results for the three months ended March 31, 2019, generating positive quarterly revenue and net income trends.
“Our first quarter generated strong financial results reflecting the return of our instant ticket orders to levels similar to those achieved in the first three quarters of 2018 and significantly higher than those of the fourth quarter 2018,” stated John Pollard, Co-Chief Executive Officer. “Our consolidated revenue was over $97 million, a quarterly record, benefitting from the full three months of our recent acquisitions and strong instant ticket revenue including sales from our ancillary products and iLottery operations.”
“Our emphasis on high-value proprietary innovations such as Scratch FX®, laminated and pouched products generated continued sales interest from a number of lotteries and helped us achieve solid results in an important metric, average selling price.”
“Net income for the quarter was over $8 million, 77% higher than the same period last year, while Adjusted EBITDA, excluding the impact of IFRS 16, exceeded $15 million, reflecting the strong selling prices of our instant ticket products and contributions of our acquisitions. All of our business lines, including iLottery and ancillary products, generated very positive results. Our current indications for instant ticket sales orders in the second quarter and throughout 2019 are strong and reflect volumes consistent with our expectations from the first three quarters of 2018, however, with industry growth and continued success developing innovative products, we are hopeful to achieve incremental growth in 2019.”
“Our charitable gaming businesses, including American Games and International Gamco, continue to work together to integrate their operations and management teams. All indications suggest the market has received the combination of these two respected brands positively. The overall market for charitable gaming is showing some positive growth signs and we’re seeing opportunities to expand gaming in certain jurisdictions to include digital formats through etabs and other electronic gaming. This has resulted in increased revenue and future opportunities for our Diamond Game and Oasis charitable gaming machines.”
“Consumer demand for instant tickets continues to grow and lotteries are very open to work with suppliers who can demonstrate products and services to help grow their business,” stated Doug Pollard, Co-Chief Executive Officer. “All of our material contracts remain in place and we are very pleased with a pair of important new contract announcements. The Interprovincial Lottery Corporation, consisting of all of the lottery organizations in Canada, recently awarded us a new 5 year contract after the expiry of our previous contract. We are also very excited to be awarded a new contract to manage the inventory, warehousing and distribution of instant tickets for the Arizona Lottery. This lottery management contract is an important confirmation from the lottery industry of their confidence in Pollard Banknote’s ability to be the partner of choice for lotteries and charitable gaming organizations.”
“On May 1, 2019, we completed the acquisition of Fastrak Retail (UK) Limited, one of the leading instant ticket dispensing and merchandising companies based in the United Kingdom. We are looking forward to combining these new resources with our existing Schafer Systems merchandising focused business to provide a world class innovative force in driving retail change in the lottery sector.”
“Our first quarter results were very positive and reflect the ongoing strength in our lottery business,” concluded John Pollard. “Our recent acquisitions continue to perform to our expectations. We will continue to focus our resources on growing our organic expertise and capitalizing on strategic acquisitions, to maintain our vision of partner of choice to the lottery and charitable gaming industries.”
Use of Non-GAAP Financial Measures
Reference to “Adjusted EBITDA” is to earnings before interest, income taxes, depreciation and amortization, purchase accounting amortization, unrealized foreign exchange gains and losses, and certain non-recurring items including severance costs and acquisition costs. Adjusted EBITDA is an important metric used by many investors to compare issuers on the basis of the ability to generate cash from operations and management believes that, in addition to net income, Adjusted EBITDA is a useful supplementary measure.
Adjusted EBITDA is a measure not recognized under GAAP and does not have a standardized meaning prescribed by GAAP. Therefore, this measure may not be comparable to similar measures presented by other entities. Investors are cautioned that Adjusted EBITDA should not be construed as an alternative to net income determined in accordance with GAAP as an indicator of Pollard’s performance or to cash flows from operating, investing and financing activities as measures of liquidity and cash flows.
Forward-Looking Statements
Certain statements in this report may constitute “forward-looking” statements which involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. When used in this document, such statements include such words as “may,” “will,” “expect,” “believe,” “plan” and other similar terminology. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this document. There should not be an expectation that such information will in all circumstances be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise.
POLLARD BANKNOTE LIMITED
Pollard is one of the leading providers of products and services to lottery and charitable gaming industries throughout the world. Management believes Pollard is the largest provider of instant tickets based in Canada and the second largest producer of instant tickets in the world.
|
HIGHLIGHTS
|
Three months ended March 31, 2019 |
Three months ended March 31, 2018 |
||
|
Sales |
$ |
97.5 million |
$ |
80.3 million |
|
Gross profit |
$ |
22.9 million |
$ |
19.4 million |
|
Gross profit % of sales |
23.5% |
24.2% |
||
|
Administration expenses |
$ |
8.7 million |
$ |
8.0 million |
|
Selling expenses |
$ |
3.5 million |
$ |
2.8 million |
|
Net income |
$ |
8.0 million |
$ |
4.5 million |
|
Net income per share |
$ |
0.31 |
$ |
0.18 |
|
Adjusted EBITDA*: |
||||
|
Lotteries and charitable gaming |
$ |
12.6 million |
$ |
10.6 million |
|
Diamond Game |
2.5 million |
2.4 million |
||
|
Total adjusted EBITDA |
$ |
15.1 million |
$ |
13.0 million |
|
* excludes impact of IFRS 16 implemented effective January 1, 2019 |
||||
|
SELECTED FINANCIAL INFORMATION |
||||
|
(millions of dollars) |
Three month ended |
Three months ended |
||
|
March 31, 2019 |
March 31, 2018 |
|||
|
(unaudited) |
(unaudited) |
|||
|
Sales |
$97.5 |
$80.3 |
||
|
Cost of sales |
74.6 |
60.9 |
||
|
Gross profit |
22.9 |
19.4 |
||
|
Administration expenses |
8.7 |
8.0 |
||
|
Selling expenses |
3.5 |
2.8 |
||
|
Other expenses |
0.2 |
– |
||
|
Income from operations |
10.5 |
8.6 |
||
|
Finance costs |
1.5 |
2.4 |
||
|
Finance income |
(1.5) |
– |
||
|
Income before income taxes |
10.5 |
6.2 |
||
|
Income taxes: |
||||
|
Current |
1.8 |
3.1 |
||
|
Future (reduction) |
0.7 |
(1.4) |
||
|
2.5 |
1.7 |
|||
|
Net income |
$8.0 |
$4.5 |
||
|
Adjustments: |
||||
|
Amortization and depreciation |
6.3 |
4.1 |
||
|
Interest |
1.5 |
1.2 |
||
|
Unrealized foreign exchange (gain) loss |
(1.9) |
1.0 |
||
|
Acquisition costs |
– |
0.1 |
||
|
Severance costs |
– |
0.4 |
||
|
Income taxes |
2.5 |
1.7 |
||
|
Adjusted EBITDA |
$16.4 |
$13.0 |
||
|
Less impact of implementation of IFRS 16 Leases: |
||||
|
IFRS 16 related depreciation |
1.1 |
– |
||
|
IFRS 16 related interest |
0.2 |
– |
||
|
Adjusted EBITDA without IFRS 16 impact |
$15.1 |
$13.0 |
||
|
March 31, |
December 31, |
|||
|
2019 |
2018 |
|||
|
Total Assets |
$317.0 |
$305.6 |
||
|
Total Non-Current Liabilities |
$155.4 |
$142.9 |
||
The selected financial and operating information has been derived from, and should be read in conjunction with, the condensed consolidated unaudited interim financial statements of Pollard as at and for the three months ended March 31, 2019. These financial statements have been prepared in accordance with the International Financial Accounting Standards (“IFRS” or “GAAP”).
Results of Operations – Three months ended March 31, 2019
During the three months ended March 31, 2019, Pollard achieved sales of $97.5 million, compared to $80.3 million in the three months ended March 31, 2018. Factors impacting the $17.2 million sales increase were:
- An increase in the instant ticket average selling price in the first quarter of 2019 compared to the first quarter of 2018 increased sales by $8.2 million. This increase was, in part, a result of record sales of Pollard’s proprietary Scratch FX® product in the quarter. Sales of ancillary instant ticket products and services increased revenue in 2019 by $3.7 million. This increase was primarily from the addition of Schafer Systems (2018) Inc. (“Schafer”) and increased iLottery revenues, partially offset by lower licensed product sales. Partially offsetting these increases was a slight decrease in instant ticket sales volume in the quarter which reduced sales by $2.3 million. Certain instant ticket production volume from the fourth quarter of 2018 was recognized in revenue in the first quarter of 2019 as expected, however similar volumes of instant tickets produced later in the first quarter of 2019 will be recognized in the second quarter of 2019.
- Diamond Game’s sales increased in the first quarter of 2019, which added an additional $0.2 million to sales when compared to 2018. In addition, the increase in charitable gaming volumes, primarily as a result of including three months of International Gamco, Inc. (“Gamco”) sales in 2019 as compared to two months in 2018, increased sales by $3.0 million from 2018. A higher average selling price for charitable games in 2019 further increased sales by $0.6 million.
- During the three months ended March 31, 2019, Pollard generated approximately 73.1% (2018 – 67.3%) of its revenue in U.S. dollars including a portion of international sales which are priced in U.S. dollars. During the first quarter of 2019, the actual U.S. dollar value was converted to Canadian dollars at $1.333, compared to a rate of $1.256 during the first quarter of 2018. This 6.1% increase in the U.S. dollar value resulted in an approximate increase of $3.9 million in revenue relative to the first quarter of 2018. In addition, during the quarter the value of the Canadian dollar strengthened against the Euro resulting in an approximate decrease of $0.1 million in revenue relative to the first quarter of 2018.
Cost of sales was $74.6 million in the first quarter of 2019 compared to $60.9 million in the first quarter of 2018. The increase in cost of sales was partially as a result of higher exchange rates on U.S. dollar denominated transactions in 2019 and higher input costs relating to increased Scratch FX® sales. The majority of the remaining increase related to the inclusion of Schafer in 2019, as well as the inclusion of Gamco for three months in the first quarter of 2019 as compared to two months in 2018.
Gross profit was $22.9 million (23.5% of sales) in the first quarter of 2019 compared to $19.4 million (24.2% of sales) in the first quarter of 2018. This increase of $3.5 million in gross profit was primarily the result of the addition of Schafer, and a full quarter of Gamco, which increased gross margin by approximately $2.0 million. Gross profit generated from the lotteries and charitable gaming business (excluding Gamco and Schafer) increased approximately $1.6 million due to the higher instant ticket average selling price and increased profits from digital and iLottery offerings. These increases were partially offset by lower licensed games sales. The gross profit percentage was slightly lower due to the change in instant ticket sales mix and a reduction in license product sales, partially offset by higher iLottery sales and the addition of Schafer.
Administration expenses increased to $8.7 million in the first quarter of 2019 from $8.0 million in the first quarter of 2018. The increase of $0.7 million was partially a result of the inclusion of Schafer and including Gamco for an entire quarter in 2019. Additional reasons for the increase, totaling approximately $0.5 million, were higher compensation expenses to support Pollard’s growth strategies of acquisition and digital innovation and increased professional fees. These increases were partially offset by the $0.1 million reduction in acquisition costs and $0.4 million reduction in severance costs as compared to 2018.
Selling expenses increased to $3.5 million in the first quarter of 2019 from $2.8 million in the first quarter of 2018 primarily due to the addition of Schafer and including Gamco for an entire quarter in 2019, as well as higher compensation costs. These increases were partially offset by a decrease in contract support costs.
Other expenses increased to $0.2 million in in the first quarter of 2019 from $nil in 2018, primarily due to the increased loss on equity investment of $0.4 million, partially offset by the increased other income of $0.2 million.
The net foreign exchange gain was $1.5 million in the first quarter of 2019 compared to a net loss of $1.2 million in the first quarter of 2018. The 2019 net foreign exchange gain consisted of a $1.9 million unrealized gain primarily as a result of the decreased Canadian equivalent value of U.S. dollar denominated accounts payable and long-term debt with the strengthening of the Canadian dollar relative to the U.S. dollar. In fiscal 2018 Pollard added almost US$29 million of U.S. dollar denominated debt, with the acquisitions of Gamco and Schafer, which is subject to revaluation through the income statement. The strengthening of the Canadian dollar relative to the U.S. dollar in the first quarter of 2019 resulted in the substantial unrealized foreign exchange gain. In addition to the unrealized foreign exchange gain in 2019, Pollard incurred a realized foreign exchange loss of $0.4 million as a result of foreign currency denominated accounts receivable collected being converted into Canadian dollars at unfavorable foreign exchange rates.
The 2018 net foreign exchange loss of $1.2 million consisted of an unrealized foreign exchange loss of $1.0 million primarily as a result of the unrealized loss on U.S. dollar denominated debt which was a result of the weakening of the value of the Canadian dollar versus the U.S. dollar during the first quarter of 2018. In addition to the unrealized loss, there was a realized loss of $0.2 million, primarily as a result of the decreased value of U.S. denominated receivables at collection.
Adjusted EBITDA increased to $16.4 million in the first quarter of 2019 compared to $13.0 million in the first quarter of 2018. The classification of operating lease costs under IFRS 16 Leases, which was implemented effective January 1, 2019, increased Adjusted EBITDA by $1.3 million in the first quarter of 2019.
The primary reason for the remaining increase in Adjusted EBITDA of $2.1 million was the increase in gross profit of $4.4 million (net of amortization and depreciation and IFRS 16 impact). This increase to Adjusted EBITDA was partially offset by higher administration expenses (net of acquisition and severance costs) of $1.2 million, an increase in selling expenses of $0.7 million, an increase in other expenses of $0.2 million and an increase in realized foreign exchange loss of $0.2 million.
Interest expense increased to $1.5 million in the first quarter of 2019 from $1.2 million in first quarter of 2018 primarily as a result of the additional interest expense related to increased long-term debt incurred with the acquisition Schafer and additional interest expense with the implementation of IFRS 16 on January 1, 2019 of $0.2 million.
Amortization and depreciation, including depreciation of property and equipment and the amortization of intangible assets, totaled $6.3 million during the first quarter of 2019 which increased from $4.1 million during the first quarter of 2018. The increase was primarily as a result of $1.0 million of former operating lease costs being characterized as depreciation with the implementation of IFRS 16 on January 1, 2019 and the addition of a Schafer and a full quarter of Gamco, including the amortization and depreciation relating to the purchase price allocations to intangible assets and property, plant and equipment.
Income tax expense was $2.5 million in the first quarter of 2019, an effective rate of 23.3%, lower than our domestic rate of 27.0% due primarily to the impact of lower tax rates in the United States and the effect of foreign exchange.
Income tax expense was $1.7 million in the first quarter of 2018, an effective rate of 27.2%, which was similar to our domestic rate of 27.0%.
Net income increased to $8.0 million in the first quarter of 2019 from $4.5 million in the first quarter of 2018. The primary reasons for the increase in net income were the increase in gross profit of $3.5 million, due to the addition of Schafer, a full quarter of Gamco and the increase in instant ticket average selling price, and the increase in foreign exchange gain of $2.7 million. Partially offsetting these increases were the increase in administration expenses of $0.7 million, the increase in selling expenses of $0.7 million, higher interest expense of $0.3 million and the increase in income taxes of $0.8 million.
Net income per share (basic and diluted) increased to $0.31 per share in the first quarter of 2019 from $0.18 per share in the first quarter of 2018.
Outlook
Our instant ticket order levels have returned to similar levels previously seen in the first three quarters of 2018 as expected. Based on our expectations and current schedules we believe these order levels will continue through the second quarter and the remainder of 2019. In addition, with industry growth and continued success developing innovative products, we are hopeful to achieve incremental growth over and above the volume levels achieved in the first three quarters of 2018.
The lottery industry remains robust with growing consumer demand, particularly as it relates to instant tickets and digital offerings. Our contract portfolio remains strong with no material contracts expiring in 2019. Over the past year we have been awarded a number of long-term instant ticket contracts with key lotteries including the Western Canada Lottery Corporation and the British Columbia Lottery Corporation. We have also recently been awarded a new contract with the Arizona Lottery to manage their instant ticket warehousing, distribution and inventory management operations. This award represents growing recognition of our expanding product offering.
As previously disclosed, there are currently large instant ticket contracts up for bid in 2019 where Pollard is not a major supplier. These contract bid processes are underway and, although lotteries don’t regularly replace their primary supplier, we are hopeful at a minimum that these upcoming contract awards may offer Pollard the opportunity to provide incremental levels of instant tickets going forward.
iLottery continues to be very active, with state and provincial lotteries looking into opportunities in this space, while work continues on the roll out of our North Carolina iLottery operation targeted to go live late in 2019. The court process we initiated to clarify that the Wire Act only applies to sports betting, and thereby confirming lotteries can continue to provide lawful gaming over the internet, remains before the New Hampshire circuit court. A ruling is not expected before the summer of 2019. We remain confident the court will find in favour of the lotteries, although we anticipate the initial court ruling will likely be appealed.
A foundation of our success has been, and continues to be, the development of innovative proprietary products with regard to both our instant tickets as well as our other offerings, including digital and other ancillary products. We continue to invest resources in developing these value-added products and services in order to help lotteries maximize their proceeds for good causes and differentiate Pollard Banknote from other suppliers.
The integration of our most recent acquisition, Schafer Systems, with our instant ticket business continues to move forward positively, with cross-company development teams working together on innovative merchandising concepts for instant tickets.
In 2018 we recommissioned our original printing press in Ypsilanti and we are currently adding some additional equipment in order to increase its capacity. The resulting capacity increase will position us to provide efficient, flexible scheduling for our current level of orders as well as ensure sufficient available capacity for growth.
No major individual CAPEX projects are anticipated for 2019 and we expect our CAPEX for the next year will be similar to the levels incurred in 2018. Our business remains a strong generator of free cash flow and after funding our CAPEX and current dividend, free cash flow will be used to pay down debt and to help fund any future acquisitions.
Acquisitions remain a critical component in our strategic plan and we continue to actively review strategic opportunities that will assist us in key areas such as technology, ancillary lottery products and charitable gaming.
Source: Pollard Banknote Limited
Source: European Gaming Media
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: Pollard Banknote Announces 1st Quarter Financial Results
Objective: Examine how customer experience shapes player retention and brand loyalty in iGaming, placing emphasis on the role of localised, high-quality support.
Outline:
- Introduction: The growing focus on customer experience as a differentiator in iGaming.
- The Value of Localised Support: Exploring how cultural nuances and language fluency enhance player satisfaction.
- Flexibility in Resource Allocation: Meeting fluctuating demand without compromising quality.
- Future Trends: How advancements in technology and localization will shape the next era of player engagement.
Questions for Exploration:
- How does high-quality, localised support impact player satisfaction and retention?
- What role does cultural understanding play in shaping effective customer interactions?
- How can operators balance flexibility with consistency in customer support?
- What emerging trends in customer experience should iGaming businesses prepare for?
Answer:
In the rapidly evolving iGaming industry, players have more choice than ever before—whether it’s brands, slots, game types, payment options, the list goes on. With so much competition, customer experience is quickly becoming a significant differentiator for operators. The ability to deliver a seamless, player-centric experience across multiple jurisdictions is not just a competitive advantage but a necessity in retaining players in this growingly saturated market.
Customer experience today goes far beyond just problem-solving for players. It encompasses proactive, personalised engagement, meaningful recommendations, and a culturally resonant approach. The operators that succeed in this space are those who maintain high standards across these elements, delivering them in a timely and localised manner. Localisation, in particular, is a key factor in turning good customer service into exceptional customer experiences.
So, why is localisation so important? At its core, successful customer support is built on trust. But building trust across diverse jurisdictions is not something that can be achieved through a single, uniform strategy. Methods of communication are a prime example. In Brazil, where the newly regulated market is flourishing, players may expect warm and conversational interactions. In contrast, many European players often favour more concise and formal communication. Recognising and adapting to these cultural nuances allows operators to foster a stronger connection with their entire player base.
Beyond communication style, localisation also plays a critical role in regulatory compliance. The iGaming industry is highly fragmented in terms of regulations, and players are increasingly aware of their rights. A customer service team that understands local legislation implicitly adds immense value, ensuring compliance while delivering tailored support. This not only reinforces trust but also strengthens the player’s respect for the brand.
At the same time, operators face the challenge of balancing high-quality customer support with the flexibility needed to respond to fluctuating demand. This is where RokkerX delivers measurable value. By offering scalable resource allocation and rigorous cross-functional training, we ensure our teams can adapt to surges in demand; whether it’s a major sporting event in a specific jurisdiction or global-scale activity, without compromising on quality. Our teams remain aligned with the core values of our clients’ brands, ensuring a customer-centric approach at all times.
Looking ahead, the iGaming industry is poised for further transformation, driven by advancements in technology and localisation. At RokkerX, we are committed to staying at the forefront of these changes to help our clients deliver exceptional experiences. Trends like the growing prominence of omnichannel communication, including social media and in-app messaging, and advancements in natural language processing (NLP) will enable operators to communicate with even greater precision and cultural nuance. Yet, the future will demand more than just technology. The ability to strike the right balance between tech-driven solutions and the human touch will be essential in creating meaningful connections with players.
As the industry evolves, the blend of cutting-edge technology, cultural understanding, and human expertise will define the next era of player engagement. By staying ahead of these trends, RokkerX ensures our clients are not only prepared for the future but thrive in it.
The post The Untapped Potential of Localised Support January 2024 appeared first on European Gaming Industry News.
The iGaming industry is advancing at breakneck speed, driven by technological innovation and evolving player expectations. Itai Zak, Executive Director of iGaming at Digicode, emphasizes the importance of bridging client aspirations with customized business solutions. Key trends shaping the future of iGaming include live dealer games, blockchain integration, artificial intelligence (AI) and machine learning (ML), enhanced personalization, and shifting regulatory environments. Let’s delve into how these trends influence the industry, presenting new opportunities while paving the way for future growth.
A Closer Look at Emerging Trends
- Live Dealer Games
Live dealer games are revolutionizing the online gaming experience, blending the best aspects of land-based casinos with the convenience of virtual gaming. Players can now engage with real-life dealers via high-definition video streams, enhancing the social component of online gambling. This bridge between physical and virtual casinos introduces interactive features like live chat and immersive gameplay. Industry leaders like Evolution Gaming and NetEnt are setting new standards in player engagement with innovative game formats and top-tier studio setups, redefining the realism and appeal of live gaming.
- Blockchain and Cryptocurrency Integration
Blockchain technology is transforming iGaming by offering unparalleled transparency and security. With blockchain’s ability to enable provably fair gaming, players can verify that each round is fair via an immutable ledger. Cryptocurrencies like Bitcoin and Ethereum facilitate faster, more secure transactions, catering to tech-savvy players who value privacy. Platforms like Bitcasino.io are leading the way, leveraging blockchain to ensure fairness and seamless payments. However, the rise of blockchain also attracts regulatory attention, requiring operators to balance innovation with compliance as governments navigate this new technology.
- Artificial Intelligence and Machine Learning
AI and ML are instrumental in enhancing player experience and operational efficiency. AI algorithms analyze player behavior in real-time, offering personalized game recommendations and promotions. Additionally, AI-powered chatbots provide instant customer support, improving user satisfaction. AI-driven predictive analytics also help operators fine-tune marketing strategies based on player preferences. Companies like Bet365 are already using these technologies to stay ahead of the competition, offering more personalized and efficient gaming experiences.
- Richer Personalization and Engagement
Personalization has become crucial for iGaming operators looking to boost player satisfaction and retention. By leveraging data analytics, companies can offer tailored game recommendations, dynamic bonuses, and individualized promotional offers. This level of engagement enhances the player experience and strengthens loyalty. Industry pioneers like DraftKings and FanDuel push the envelope by offering highly customized features, such as personalized fantasy sports leagues and bespoke betting options.
- Regulatory Changes and Market Expansion
The constantly evolving regulatory landscape offers both challenges and opportunities for iGaming operators. As more regions legalize various forms of online gambling, companies gain access to new markets. With their large populations and increasing internet penetration, emerging markets like Brazil and Nigeria represent lucrative opportunities. However, navigating the diverse regulations in these markets requires agility and strict compliance with local laws to succeed.
- Enhanced Payment Solutions
With digital transactions becoming the norm, the demand for fast, secure, and flexible payment methods is skyrocketing. From digital wallets to instant banking and cryptocurrencies, players expect payment solutions that offer convenience and security. This growing demand is driving innovation in payment processing, giving operators more opportunities to streamline the transaction process while building trust with users.
Future Implications
The Expanding Role of AI and Blockchain
AI and blockchain are not just current trends, but they are poised to play an even more significant role in iGaming’s future. As AI technology evolves, more sophisticated algorithms will emerge, enabling real-time adaptation to player behavior and preferences. Blockchain’s application may extend beyond transparency and security, transforming game mechanics and player interactions potentially redefining how games are designed and played.
Shifting Player Preferences
Player expectations will continue to evolve toward immersive, interactive experiences. As Virtual Reality (VR) and Augmented Reality (AR) become more mainstream, they will significantly influence the future of iGaming. Players will demand more engaging, lifelike environments, pushing the industry to create innovative game formats and features that offer deeper immersion and entertainment value.
Regulatory Developments
The regulatory environment will continue to evolve, and iGaming operators must stay agile to navigate future changes. New regulations may increasingly emphasize responsible gaming and player protection, influencing platform design and operational practices. A more harmonized regulatory framework across jurisdictions could provide stability while requiring operators to prioritize compliance.
Integrating Emerging Technologies
Technologies like 5G and edge computing are set to revolutionize iGaming by enabling faster, more reliable connectivity. This will allow for more complex game designs and real-time player interactions, opening new avenues for innovative gaming experiences. As these technologies mature, operators will have greater opportunities to differentiate their offerings. The potential of these emerging technologies to revolutionize iGaming is truly exciting and promising for the industry’s future.
Final Thoughts
The iGaming industry is on the cusp of significant transformations, driven by technological advancements and shifting player demands. Innovations like live dealer games, blockchain integration, AI, ML, and enhanced personalization are just the beginning. As the industry evolves, staying ahead of these trends will be critical for operators looking to thrive in an increasingly dynamic environment.
At Digicode, we are constantly exploring new technologies and refining our solutions to meet the evolving needs of our clients. Our focus on adaptability and foresight ensures that our clients are not just keeping pace with the industry—they’re leading it.
The post Innovations Redefining iGaming: What Operators Need to Know appeared first on European Gaming Industry News.
A partnership between game developer Turbo Games and iGaming solution provider and aggregator Slotegrator began in November 2022 via the APIgrator game integration solution. Since then, the collaboration has been developing successfully — and now it’s time to analyze what made it successful.
Turbo Games has noticed how the new technologies spreading throughout the industry can work for the good of brand transparency and player loyalty: “We can already see how blockchain technology has made it possible to make betting checks more accessible to players. All you need is a blockchain-hash and a decoder service. We think we will continue to move in this direction. Many traditional online casinos do not offer the possibility to check the bet. Sooner or later we all have to come to this. Perhaps the development of artificial intelligence will help here, because we are already seeing its involvement in all spheres of human life.”
Turbo Games specializes in provably fair games. Provable fairness is a concept where players can verify their wins or losses using blockchain technology — the outcome of the game is dictated by a smart contract and is absolutely random, barring the possibility of any human involvement. Using cryptographic hashing algorithms, the gambling site and the player’s device both generate seeds (random strings of numbers). Players receive a key that allows them to check the results; if the results are the same as the game round they witnessed, it proves that there was no foul play.
According to statistics from Turbo Games, the audience for provably fair games is mostly between 18 and 25 years old. However, there are also players aged 35-40 who prefer traditional games but would like to try something new, and have turned their attention to provably fair games.
There are good odds that the technology of provably fair games will become more popular, if not even commonplace, because it gives players a feeling of transparency and proves that the business is trustworthy without the need to search through dozens of reviews. Whereas many innovations in iGaming simply add entertainment, provable fairness addresses security concerns and reassures players that they’re not being exploited, which is invaluable.
Provably fair games are beneficial for both players and online casinos. Vadim Potapenko, Head of Sales at Turbo Games, comments: “It often happens that the users are not satisfied with the result, because gambling is not only about big wins, but also possible losses. By allowing them to check the fairness of a bet, we make life easier for platforms and players. Of course, this allows us to communicate with partners and users that we work honestly and that’s why they should trust our games.”
Ayvar Gabidullin, Business Development Manager at Slotegrator, adds that “this type of game is now becoming more and more popular and has great potential for both players and game providers in the future. On the part of the player, the advantage is that the player can always be sure that his game is fair and he can independently check any of his bets. And for the game provider, this also simplifies the process of implementing casino games, since now it will not be necessary to obtain the appropriate certificates from independent laboratories before launching new games, they can immediately enter the market with these games and where anyone can check the result and make sure that that there is no cheating with players. Many game providers are starting to look towards this type of game. And as far as I see, many operators are starting to think about adding these games.”
What do players in 2023 need? The iGaming industry is all about reputation and trust. Players have a huge number of platforms to choose from, making them pickier and pickier. There’s an abundance of forums where players leave reviews, so if players view a brand as untrustworthy, there are plenty of places they can share their opinion. Provable fairness not only stops that from happening, it provides evidence to the contrary, giving players something else to talk about.
Slotegrator also recommends investing time and effort into localization and creating an effective and detailed marketing strategy — before trying provably fair technology players need to get to the platform, and there is no acquisition without marketing.
ABOUT SLOTEGRATOR
Since 2012, Slotegrator has been one of the iGaming industry’s leading software and business solution providers for online casino and sportsbook operators.
The company’s main focus is software development and support for online casino platforms, as well as the integration of game content and payment systems.
The company works with licensed game developers and offers a vast portfolio of casino content: slots, live casino games, poker, virtual sports, table games, lotteries, casual games, and data feeds for betting.
Slotegrator also provides consulting services in gambling license acquisition and business incorporation.
More information: https://slotegrator.pro/
ABOUT TURBO GAMES
Turbo Games — a provably fair games provider that belongs to Turbo Stars company — has an ambitious goal to establish widespread recognition throughout the iGaming world. Even though it is young, the company consists of professionals who have been working on the brand for over five years and are even planning to introduce a new brand for a wider audience soon.
Turbo Games also works in Europe, India, and South Africa, where the company sees the most potential and expects the same “hype” as in Brazil.
The portfolio of Turbo Games consists of 21 titles, including well-known games like Mines, Crash X, DoubleRoll, Hi-Lo, and Plinko. The studio releases a game every month. However, not all games are developed from scratch. Wicket Blast and Spin Strike, the last two releases, are based on cricket and the Indian Premier League. Crash X remains the most popular fast game in the Turbo Games portfolio, and the studio reports that crash games enjoy stable levels of popularity. Overall, the main focus of the brand is provably fair games.
More information: https://turbogames.io/
Week 8/2025 slot games releases
IGT Achieves Improved ESG Score from FTSE Russell
Playtech’s Bingo Technology Powers Buzz Bingo’s Launch of Innovative Omni-channel Experience
Amusnet Deepens Collaboration with Betano for Exclusive Launch of 20 Wild Goals
BETER names Juliana Querino as LatAm Business Development Manager
Portside Game Assembly: Studios behind Dead Cells, Dungeon Clawler, Dorfromantik, Blasphemous on board and ticket sales for brunch and party launched
Aristocrat Gaming Begins Expanded Launch of NFL-Themed Slot Machine Franchise with 13-Casino Event in Puerto Rico
Bragg Gaming Announces Preliminary Unaudited Results for the Year Ended December 31, 2024 and 2025 Strategic Initiatives and Guidance
Golden Nugget Atlantic City Announces Re-opening of Sportsbook with New, Innovative Technology and Expanded Betting Markets
DNSFilter Data Reveals Dangers to Fake Gambling Sites and Illegal Streaming in Lead Up to Super Bowl LIX
-
gaming2 years agoODIN by 4Players: Immersive, state-of-the-art in-game audio launches into the next generation of gaming
-
EEG iGaming Directory8 years ago
iSoftBet continues to grow with new release Forest Mania
-
News7 years ago
Softbroke collaborates with Asia Live Tech for the expansion of the service line in the igaming market
-
News6 years ago
Super Bowl LIII: NFL Fans Can Bet on the #1 Sportsbook Review Site Betting-Super-Bowl.com, Providing Free Unbiased and Trusted News, Picks and Predictions
-
iGaming Industry7 years ago
Rick Meitzler appointed to the Indian Gaming Magazine Advisory Board for 2018
-
News6 years ago
REVEALED: Top eSports players set to earn $3.2 million in 2019
-
iGaming Industry7 years ago
French Senator raises Loot Boxes to France’s Gambling Regulator
-
News7 years ago
Exclusive Interview with Miklos Handa (Founder of the email marketing solutions, “MailMike.net”), speaker at Vienna International Gaming Expo 2018
