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Exclusive Interview with Chris Armes – Group Chief Technology Officer at SG Digital

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I am thankful to have the opportunity to take this interview with a professional such as Chris Armes, who has over 25 years’ experience of managing high performing global teams, covering the full delivery experience for large-scale international projects, across both hardware and software.

Chris was appointed as Group Chief Technology Officer at NYX Gaming Group in October 2017, and following its acquisition by Scientific Games, is now taking the newly-created division SG Digital to the next level..

I would also like to thank you for following my interview series and for sharing these information with your colleagues and partners. If you would like to be featured in an upcoming interview, please send me an e-mail to [email protected] and I will happily get back to you!

We are grateful for your generosity to answer our questions. First, I would like to ask you to shortly introduce yourself and tell us when and why you started working in this industry.

Chris: It’s a pleasure to speak with European Gaming Magazine. My name’s Chris Armes, and I’m the Chief Technology Officer at SG Digital, the newly created division of Scientific Games following its acquisition of NYX Gaming Group at the beginning of 2018. At SG Digital, I oversee the support and development of our products and services across digital gaming, iLottery and sports betting.

This is my first role in the betting and gaming industry, having previously worked for computer software and hardware companies Oracle and Sun Microsystems and one that I’m enjoying greatly since joining the company in September last year. It’s a really exciting industry with lots happening, but there’s also so much more that can be done to capitalise on new technologies and improve both back-end operations and the user experience.

Before joining SG Digital you worked at Oracle and held the position of Vice President, Engineering for Systems. What are those experiences, key-values that you gained at your past workplace and can use in this new role?

Chris: I have more than 25 years’ experience in working and managing global teams for the delivery of both hardware and software products. Oracle and Sun were both worldwide organisations that gave me the experience to take the Digital division forward with a product-led strategy that focuses on innovation backed by new technology. Global engineering in particular is hard to get right, and to make it successful requires a huge time investment. The digital gaming industry today reminds me a lot of the “.com” era with growth opportunities and time-to-market pressures. I plan to bring those learnings to this industry so we can capitalize quickly on the massive opportunity ahead of us.

What role do you undertake in the company’s life? What are your tasks and responsibilities?

Chris: Now that the acquisition is complete and the SG Digital division created, the focus for us now is to implement a strategy that accelerates product innovation and delivery across all our verticals.

Central to our plans is the opening of our new Technology Development Centre in Krakow, Poland. We aim to staff the office with over 100 new product-focused employees by the end of 2018, forming our fourth development centre in Europe. Poland has an established reputation for housing high-quality tech hubs, and we’re thrilled to establish a presence in the region.

It is my responsibility to oversee all our global technology teams and to bring together our different product development teams under one cohesive delivery model.

A big part of that responsibility is helping build an employer brand that attracts the top talent to SG Digital. We aim to attract talent from across the technology spectrum–not just people who have worked in gaming. A lot of our business is about high transaction rates, low latency and a seamless user experience, things you see in many other sectors such as financial services and telecoms. Expertise from various industries is crucial. We need to welcome new ideas and techniques to maximize our potential.

Which have been the most difficult periods in your career so far and what do you consider your greatest personal success?

Chris: The most difficult periods are those two extreme ends of the spectrum when it comes to resourcing: significant growth and significant reductions. Both are challenging times for very different reasons. Growing and scaling a business brings with it the most basic challenge of finding the right talent. From there, though, you also have to retain the best talent. This is not just about compensation, it is also about the importance of building the brand and proving that you are really a great place to work. Hiring momentum is key, but it’s also important to understand that finding the best employees can take time. Employees should feel good about coming to work, even during times of growth. The other challenge with growth is scaling in an efficient and effective manner and having business processes that will scale at the same time. Churning out product is one thing; releasing a polished, quality product is another.

There have been so many things I’ve been proud to be a part of—I’m sure I’d leave many off by accident if I tried to list them. Building technology teams in new locations such as Prague and Bangalore is greatly satisfying, but so is watching talent grow during a career, as junior engineers become engineering thought leaders on my team. Then you see those engineering leaders come up with new and innovative ways to do things, helping to build a world-class, industry leading product.

What can you tell us about the services SG Digital provides?

Chris: The combination of NYX and SG Interactive means we now provide the broadest portfolio of products and services to iGaming brands across the globe. From nine in-house game studios and a network of third-party suppliers, SG Digital offers over 2000 game titles across our platforms. In addition, OpenBet™, the #1 sportsbook platform, used and trusted by the world’s leading sports betting operators.

We’re focused on improving all aspects of our products and services, which is why we have opened a new tech hub in Poland to find people who can drive innovation within our product portfolio.

I am sure that you have experience and knowledge about the European gambling industry, especially the Eastern European one. I would like to ask you to share your opinion about the gambling industry in general in Europe or in the countries you know better?

Chris: Europe has and will remain a key focus for us as we look to expand into established territories and emerging markets, which of course includes those in Eastern Europe. Online gaming continues to gain popularity in the central and eastern regions, particularly as regulation becomes more robust.

Another region that is exciting for us is the U.S., where the potential expansion of sports betting will present us with significant opportunities. Although sports betting is currently limited to Nevada, proposals to amend existing laws are gathering momentum, and we could soon see a flurry of states allow punters to place wagers on sporting events for the first time. From a technology perspective, we have to ensure our products are ready and compliant to meet the standards of these new markets, which is a major focus for us right now.

Which are the future plans of the company that you can talk about to our readers?

Chris: We’re undertaking a major recruitment drive following the opening of our new development centre in Poland. We’re hiring for new people in quality assurance, core software development and product innovation. We’re also keen on continual recruitment across the globe, especially as the gaming landscape evolves. To prepare for potential sports regulation in the U.S., for example, we aim to expand our employee base in the region with talented individuals who can ensure our success in a new territory.

Crucial to making ourselves an attractive company to work for is the promise of a career opportunity, which is exciting and provides them with a platform to be creative. We’re looking into many areas of technology right now, such as video streaming and voice recognition software, as well as looking into how we can provide a more personalised user experience through a deeper understanding of consumer habits.

What upcoming events are the company focusing on nowadays and how prepared is the company for these events?

Chris: For the short-term at least, much of our focus will be on hiring skilled technology leaders to drive growth and innovation.

It’s an exciting time to be a part of SG Digital with so much going on across the many verticals we operate and among the talented teams we have all around the world, all pulling in the same direction.

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Interviews

The complete package

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The complete package
Reading Time: 5 minutes

 

Edgar Pau, Head of Studio at Red Desert Games, says mechanics are important to the success of a slot game but all components must come together in harmony for it to be a chart-topping success.

 

Are game mechanics the most important thing for studios to get right?

For a game to succeed, studios must get the whole package right and while mechanics are a core part of this, they must also nail the maths, theme, art, sound and UX, and then bring all these factors together in a way that immerses players in the action. No one thing on its own will be enough to make the game a hit with players. When it comes to mechanics, you need to have a clear goal of what it is, how it brings differentiation to the game and what makes it exciting for the player. The mechanic must also fit with the maths – if the math model makes the mechanic appear too frequently (or infrequently) it can dilute the influence and value of the mechanic and lead to different reactions from players.

 

Do mechanics offer studios the greatest room in which to innovate and stand out from their rivals?

The online slot market is fiercely competitive with more studios getting in on the action every month. Studios must differentiate, and in the absence of having well-recognised land-based games, mechanics offer the easiest route for standing out and connecting with players online. Some studios have turned to things like hybrid themes and licenses to launch branded slots to help them get ahead of their rivals, but for me, mechanics are the best way of doing this as they help the studio create its own identity and hallmark. If you look at both the land-based and online slot markets, it’s mechanics that have been the game-changers in recent times in the form of Lightning Link from Aristocrat and of course Megaways from Big Time Gaming. This is why so many studios are dedicating significant resources to developing proprietary mechanics and then filing to trademark their IP.

 

Is this a challenging area for studios to get right?

Very much so. There is absolutely no science behind it and it’s often the case that a mechanic you think is great and will hit the mark with players falls short. It’s also hard to come up with a new mechanic and how far to go with it – do you bring something entirely new to the table or look to incrementally improve something tried and tested in the market? Some of the mechanics I have seen are far too ambitious and make light-years leaps forward. While the studio should be commended for being bold and brave, players ultimately like familiarity and are reluctant to spend time and money learning an overly complex mechanic or stick with one that initially seems to be familiar but as they play it, moves too far away from the core experience they like. That’s why studios need to carry out comprehensive market research, understand what players are looking for and keep asking themselves if the mechanic they are developing is something they will actually want to play or not.

 

How is Red Desert Games approaching mechanics? How do you ensure your games deliver what players are looking for?

Most of the team at Red Desert Games are slot players, and this really helps in building our understanding of what players are looking for from the next generation of slot games they play. We always have open discussions or share videos and pictures of games or mechanics we have played and liked. We are also careful not to take things too far – our approach is to do something that incrementally innovates on what is out there, whether it’s a symbol, reel strip, reel structure, gameplay or some other variable rather than reinventing the wheel. This is why our definition of a mechanic is pretty broad.

In terms of delivering what players are looking for, I think it’s important to first identify what segment of the player base you are trying to target. You can’t be everything to everyone as some of the things different player groups want are mutually exclusive. Once we’ve done this, we run our initial math model through our proprietary simulator where we can adjust parameters and run simulations over tens of millions of spins and sessions which gives us insights into what an individual session looks like from a player’s point of view.

We’re also very self-critical of our games and are always asking ourselves if we were playing this game, what’s good and what’s bad about it. We’ve even had games where we’ve gone 90% down the production path and completely shelved it or reworked it. Of course, those were our learning experiences and we’ve put in processes and stop checks to ensure that this doesn’t happen anymore as it’s a very inefficient way to develop.

 

Does online provide a studio with more opportunities to push the boundaries than when developing for land-based? You develop for both so how does this impact your approach to mechanics? 

100%. There is more flexibility when developing online games versus land-based games, especially in markets outside of North America. As an example, in the Australian land-based market, metamorphic games are not permitted and many of our online games would never be allowed in retail casinos. In the United States, they are less restrictive, but they still have requirements that limit what studios can do. In Michigan, for example, the maximum advertised win must land once every fifty million spins. And those land-based requirements usually carry into the iGaming regulations as well. Now go to Europe, Asia or Latin America and you won’t find these sorts of restrictions. In terms of how this impacts our approach to mechanics, we actually have teams making games for both online and land-based. So being the more flexible market, it doesn’t affect us on the online side. In markets such as the U.S., having a land-based business gives our team an advantage as some of our designers have been making land-based games for almost 30 years and they’re familiar with the regulations and restrictions and how to work around them. As the same restrictions are typically present in both online and land-based, we can easily adjust the online games to satisfy the regulations.

 

How do mechanics differ from market to market in terms of player preferences? Where are the greatest differences?

It really varies from market to market. Not just the popularity of certain mechanics, but also in the type of games, the themes and the math preferences. If I look at the U.S. market, it’s clear that some of the popular land-based mechanics are also performing well online, such as hold and spin/cash on reels. Megaways has also been popular in the U.S. But then if you go to markets in Latin America, you see things such as crash games being popular or Dragon Tiger from PG Soft in Brazil, which is a simple but well put together game. I’ve also seen markets where a segment of the player base doesn’t even play the base game and goes straight to the buy feature. In Europe, it’s a real melting pot with the greatest variety of mechanics and game types. This is why developing mechanics is not for the faint-hearted, and why those who enjoy international success such as Megaways should be applauded. But given the runaway success of Megaways, it’s no wonder other studios are looking to bring their own unique, trademarked mechanics to the market.

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Interviews

Go direct – Fantasma Games strengthens partner collaboration with proprietary platform

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Go direct - Fantasma Games strengthens partner collaboration with proprietary platform
Reading Time: 3 minutes

 

Check out our latest Q&A w/ Fredrik Johansson CEO and Founder, Fantasma Games

 

Fantasma has recently launched its own FantasmaXpand platform, could you please let us know more about this initiative?

We have seen exceptional interest and demand for Fantasma’s premium and innovative online slot games and we wanted to take our offering to the next level. Launching our own platform, which we call FantasmaXpand, is a strategic initiative driven by our operator partners’ desire to collaborate more closely with us to improve overall business operations and access to our portfolio of games and wider development capabilities. The desire for deeper collaboration from our operator partners clearly indicates that our focus on providing high-performing slots with engaging game mechanics has enabled us to take this next important and natural step to support our partners’ local and global business growth strategies. It is very important for us to maintain the highest level of trust and reliability as we roll out Fantasma Xpand to our network of operator partners and the team we have built at Fantasma is more than capable of doing this.

 

How will you use FantasmaXpand to deliver more value to your operator partners?

We are all very committed to maintaining the highest level of quality assurance in everything we do, and we follow a clear plan as we expand our operational capabilities to our partners. In short, FantasmaXpand will provide local and global operator partners with a truly reliable, scalable and seamless gateway to access Fantasma’s “beyond gambling” portfolio of premium and innovative content, along with easy-to-use gamification tools. FantasmaXpand will also enable us to drive continued operational excellence while offering our collaborating partners outstanding flexibility and a reduced time-to-market (TTM) for our premium roadmap and the rollout of new innovative features and functions.

 

How does it enable you to push the boundaries with development?

We pride ourselves on having trustful and meaningful long-term relationships with our partners. FantasmaXpand will allow us to capitalise on these close partnerships and expand our joint collaborative initiatives both locally and globally, in a way that means our partners will be an integral part of how the FantasmaXpand roadmap is prioritised and developed. This means that our teams can focus on enhancing the technology roadmap, tuned and calibrated to our operators’ specific needs, which in turn enhances the overall strategic business partner value we bring and the experience our operators receive when accessing our premium offerings.

 

Why don’t all studios have their own platform? Does it bring challenges? If so, what?

Fantasma has seen outstanding growth from its operations to date, and as mentioned, our FantasmaXpand initiative is a direct response to our operator partners wanting to expand their overall business relationship with us. Not all studios have the strategy or capability to achieve the organisational readiness required to roll out such initiatives. Instead, many studios choose to focus solely on content development, which may be absolutely fine for them, allowing others to do the heavy lifting. Being ready and planning ahead has been key to maintaining focus and quality in legacy operations, and it is crucial for us not to impact the trust and reliability we have built with our operator partners over the years. As an organisation, you need to be prepared and willing to follow through on strategic initiatives that truly matter for continued sustainable growth in a hyper-competitive environment. One challenge may be daring to take this next step. But with our operator partners behind us, it has been a natural and necessary step for us to take.

 

Does FantasmaXpand help you enter new markets? If so, what markets have you got your eye on?

FantasmaXpand allows us to be in full control of our business strategy in close collaboration with our operator partners. From a go-to-market perspective, this is crucial, as seamless rollout and release management are necessary to maximise business value for us and our partners. FantasmaXpand is currently certified in many regulatory markets, and we will continue expanding the reach of FantasmaXpand in close collaboration with our partners. In terms of market reach, we currently offer our premium content in all of the major regulated markets in Europe. Our clear organisational objective is to be live with FantasmaXpand in all our regulated markets globally. However, like any expansion, we will implement a phased rollout approach for FantasmaXpand as this is the only way to ensure we don’t drop the ball with our legacy operations and partnerships.

 

What other developments from Fantasma can you share with us?

We have seen exceptional performance from our 2024 games portfolio, driven by titles such as Gold Pigger, Circle of Sylvan, Pirates Multi Coins and Shadow Summoner Elementals which have surpassed all KPIs. The US market has developed exceptionally well for Fantasma, and we have our eyes on LatAm as an exciting emerging growth market with plenty of opportunities to explore. In addition, our operator partners will benefit from a very exciting roadmap for the rest of the year. This, combined with the rollout of FantasmaXpand, means I am very excited to build continued positive momentum together with our partners. I am very optimistic about the future and our current momentum.

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Interviews

Gaming Corps: scoring big with football-themed games

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Gaming Corps: scoring big with football-themed slots
Reading Time: 4 minutes

 

Check out our latest Q&A with Graeme Savill, Account Management Team Lead at Gaming Corps

 

We’ve just seen EURO 2024 come to a close – was the result of the tournament what you expected it to be? Did any teams surprise you? 

It’s been a fantastic event overall and I was lucky enough to attend some of the games in person during the first couple of weeks of the tournament. My team, Scotland, failed to qualify out of the group so my time in Germany was very short-lived but the experience of being there to watch my country with our fans was incredible and I have amazing memories of the trip. In terms of surprises, I’d say Georgia and Turkey both defied the odds of last-16 qualification and had great tournaments while the two finalists, England and Spain, were both worthy of the chance to lift the trophy with Spain ultimately coming out on top.

 

There doesn’t tend to be much cross-over between sports bettors and slots players. In your view, what opportunities do major tournaments such as EURO 2024 present to gaming providers when it comes to engaging with new audiences? And how did Gaming Corps achieve this?

It’s true that the two segments do vary considerably in their betting preferences and patterns, but these bi-annual football events (the World Cup being the other) create huge opportunities for the industry as a whole. Creating collaborative content and working with tier-one global sportsbook operators has proven a very successful strategy for Gaming Corps while for our partners it allows them to enhance their casino offering and engage more deeply with their player base. We have several football-themed games within our Arcade portfolio including Penalty Champion, Plinkgoal, Football Freestyler and Samba Soccer that operators can access to help do this.

During June and July, we’ve seen record player numbers introduced to these products through cross-sell efforts so it’s been very advantageous to have these included in our offering. In preparation for the event, our product worked around the clock to roll-out dozens of bespoke branded versions of these games which have been front-facing on casino pages with many of our operators. The feedback we’ve received is that during EURO 2024, many casual sportsbook players have enjoyed being introduced to a different style of casino games like our Crash, Mines and Plinko verticals as they deliver a more compelling experience than traditional style casino games such as slots and roulette.

 

What’s the secret to creating slot titles that appeal to both demographics of players? Should more game developers be turning their attention towards creating slot titles centred around major sports tournaments?

Creating slot titles that appeal to both traditional slot players and sports fans requires a thoughtful blend of themes, features and mechanics that resonate with both audiences. I believe the key to success is around thematic relevance, so creating games for and targeting them to players around key events in the sporting calendar. This allows operators to build hype on the game and players love timely and seasonal titles as a way of being gently guided away from the classic products on the market and towards non-traditional content. Throughout June, a large majority of operators have offered a dedicated category with sports-themed casino games for players to discover which has benefited us immensely as they have stocked more titles from our diverse portfolio. Engaging gameplay features are critical like within our Penalty Champion game where we’ve included the sports-related shootout which adds an extra layer of excitement and engagement. Likewise, balancing game mechanics is important; games must be simple enough for traditional casino players to understand but include exciting elements that appeal to sports fans, such as dynamic animations and fast-paced action. These keep players entertained and eager to sample more products themed around their favourite sports.

 

With player acquisition costs at an all-time high, how can slots developers retain players onboarded during tournaments such as the EUROS and perhaps introduce them to other iGaming verticals? 

There are so many variables here but yes, due to acquisition costs, players must be retained to maximise player lifetime value and loyalty.  One example would be the use of in-game advertisements to promote other verticals. This could mean offering free spins in slots for trying out a new sportsbook feature. This is something that we want to work on together with our operator partners for the remainder of 2024 to maximise the opportunity. Likewise, the bundling of promotions can be highly effective in encouraging players to try different types of games. My belief though is that player engagement and communication is the most important factor whereby the strategy actively engages with players on social media platforms to create a community and keep them informed about new products and promotions. This is very true in countries such as Brazil where influencer marketing has been extremely strong in the overall marketing mix.

 

We have the Olympics coming up in a few weeks’ time, and then the restart of domestic football calendars. Can we expect to see any more sports-themed titles coming from Gaming Corps? 

Yes, I do believe that sports-themed casino games will continue to evolve and will be used by operators to attract and retain players. We’re always looking to innovate and bring something new to market and we’ve discussed our latest vertical Smash4Cash and how we can introduce a sports element to it. This approach has already brought us big success in the Mines, Plinko and Crash verticals.  We have also been working on games outside of football. Due to operator demand, we did create an ice hockey-themed game which we launched with a localised approach for countries in the Nordics and to enhance strategic partnerships with branded versions of the game for certain operators. This is a fun and engaging product and I’d say watch this space for future sports-themed games that take a similar format. We aspire to become an industry leader in creating fun, innovative and engaging sports-themed content and from the success we have achieved with the first few games we have developed, we too will be lifting the trophy in next to no time.

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