Industry News
UKGC Report Reopens Loot Box Debate: Will Video Game Developers Have to Follow UK Online Casino Standards?
The continued crossovers between video games and the casino industry have had some unintended consequences according to the UK Gambling Commission (UKGC). Outlined in a recent report on children and gambling trends, the UKGC found that loot boxes could be harmful to minors. Although the latest study showed a decrease in gambling participation among 11-to-16-year-olds, the data suggests that the risks to children have increased. As per the findings, 31% of those surveyed have opened a loot box, while 3% say they’ve placed an in-game bet.
Are In-Game Add-Ons a Gamble?
For the government, the issue of loot boxes has been a talking point since 2017. Identifying an emerging trend among video game developers, Connor Rhys Deeley submitted an online petition to have loot boxes discussed in parliament. In writing his petition, Deeley argued that the in-game add-ons often contain prizes that are worth less than the purchase price. Citing a 2017 law passed in China, Deeley said that the boxes are, in essence, a form of gambling and should, therefore, be regulated by the UKGC.
Addressing the situation, then Secretary of State for Digital, Culture, Media and Sport Tracey Crouch pointed to the UKGC previous statement on loot boxes.
“Where items obtained in a computer game can be traded or exchanged outside the game platform, they acquire a monetary value, and where facilities for gambling with such items are offered to consumers located in Britain a Gambling Commission licence is required,” concluded the government and the UKGC.
UKGC Guidelines Don’t Apply
By stating loot box prizes don’t have any real world value, the conclusion was that they fall outside of the UKGC’s regulatory remit. As it stands, any operator wanting to offer betting services in the UK must abide by a strictest of guidelines. For example, 2005 regulations state that gaming companies don’t have to meet a statutory minimum payout percentage. However, they must clearly display the amount a player can, in theory, expect to win (known as the return to player/RTP). In essence, this rule is designed to give players the power to decide how much risk they want to expose themselves to.
In fact, this drive to give consumers more information has been a cornerstone of the UKGC’s policies over the last few years. Today UK casino and betting operators must provide clear and concise insights into every aspect of their product. From their payout structures and software suppliers to the terms and conditions attached to bonuses, everything has to be transparent and fair. Without meeting the expected standards, an operator risks receiving a fine or having their licence revoked. However, when it comes to video game companies, the same standards aren’t in place. For those entering the casino world, a UKGC licence is mark of quality, but no such label applies in the gaming sector.
Regulators Must Set the Standard
This disparity is something that campaigners have been pushing to address over the last 12 months. With loot boxes sharing similarities with casino games such as scratchcards or monetised versions of Deal or No Deal, many argue that UKGC standards should apply. In their defence, video game developers have said that loot boxes aren’t an integral part of a player’s experience.
“A player’s ability to succeed in the game is not dependent on purchasing crates. Players can also earn crates through playing the game and not spending any money at all,” a spokesperson for EA told Eurogamer.net.
However, the figures would seem to suggest otherwise. In addition to the UKGC’s report showing that 31% of child gamers have used loot boxes, estimates project that loot box revenue will hit £32 billion by 2022. Reviewing the current trend, analysts at Juniper Research found that more people are now taking part in so-called skin betting than ever before.
“These items have value depending on rarity and popularity within game communities. On PCs, skins are traded for real money via Steam’s Marketplace; the platform has 125 million registered users globally,” Lauren Foye of Juniper Research said in April 2018.
Licensed Loot Boxes May Happen in 2019
In light of the latest findings, the government is likely to face more tough questions regarding the regulation of loot boxes. In Belgium, ministers have already agreed that the boxes are a form of gambling. British politicians may soon take the same position. Indeed, with the protection of minors something the UKGC has been working hard on in recent times, the recent report will give those in power cause for concern. If that proves to be the case, we may see video game companies become subject to the same controls as UK online casino operators.
Industry News
Pronet Gaming Appoints Alex Karaoulis as its New Commercial & Product Strategy Lead
Pronet Gaming, an award-winning platform provider of full turnkey solutions, announced the appointment of Alexandros Karaoulis as its new Commercial & Product Strategy Lead.
With over 14 years of experience in the iGaming industry, Karaoulis brings a wealth of knowledge and expertise that will be instrumental in driving the company’s strategic initiatives forward.
Throughout his iGaming career, Karaoulis has held various senior roles with B2B sportsbook and casino providers, as well as with B2C operators. His extensive background in marketing and sales within the iGaming sector positions him as a true industry expert, ensuring that Pronet Gaming remains at the forefront of innovation in a rapidly evolving market.
“I am thrilled to join Pronet Gaming and excited to fulfill my role in developing and executing sales strategies to drive the company’s revenue growth in key markets,” Karaoulis said.
With a track record in commercial strategies and driving product excellence, Karaoulis’ appointment is invaluable as Pronet Gaming now seeks to expand its footprint to Asia. His vision and deep understanding of the iGaming landscape equip him to navigate the unique challenges and opportunities that the dynamic region presents.
“I want Pronet Gaming to lead the iGaming revolution by providing innovative, culturally tailored solutions that cater to the diverse and rapidly growing demands of the region. Through strategic partnerships, cutting-edge technology, and a deep understanding of local markets, we aim to empower operators to offer world-class gaming experiences that engage players and drive sustainable growth,” he added.
According to Karaoulis, Pronet Gaming is poised to make a splash in Asia by leveraging its advanced technology, flexible platform solutions and deep market expertise while adapting to the unique characteristics of the region.
“The key differentiation point of Pronet Gaming is that we have B2C experience, which greatly aids in understanding the needs of operators and helping them to improve and execute their strategy according to the market. I have worked in B2C roles for more than seven years in my iGaming Career and managed campaigns across various channels, optimised conversion funnels, and learned to use data to improve player acquisition and retention,” said Karaoulis.
Karaoulis acknowledges that the marketing skills he has acquired from B2C experience are valuable in every B2B environment. As he dives into his new role at Pronet Gaming, Karaoulis aims to guide his operator clients on how to better market their own sites, including providing them with advice on effective acquisition strategies, content marketing and campaign structures that appeal to iGaming audiences.
“I also focus heavily on engagement strategies, loyalty programs, bonuses, and personalised offers to keep players active and returning. In my new B2B role, I will advise clients on best practices for player engagement, helping them adopt effective loyalty programs, personalised marketing, and retention tactics that drive player lifetime value to improve the end-player experience for our clients’ sites,” Karaoulis added.
Industry News
Vbet Wins Best Online Casino Operator 2024 at SiGMA Europe 2024
Vbet has been crowned the Best Online Casino Operator 2024 at the highly coveted SiGMA Europe event, cementing its position as a leader in the online gaming industry.
This achievement highlights Vbet’s commitment to providing an exceptional user experience by combining cutting-edge technology with a vast range of options and a secure process. The dedication to creating a responsible, enjoyable environment for players was recognised with this award, making this accolade even more significant. As Vbet continue to expand into new markets, the list of strategic partnerships grows alongside our constant drive to expand its offering. This award serves as a stepping stone on its path to reach more players and set new standards in the industry.
Arman Khachatryan, VBET’s Managing Director, said: “We are incredibly proud to receive the Best Online Casino Operator award at SiGMA Europe 2024. This recognition is a testament to the hard work, passion, and effort of our entire team. Our mission has always been to deliver the highest quality experience in the safest environment possible to our users. This award not only recognizes our dedication to this mission but also motivates us to continue expanding into new markets and territories.”
Industry News
ICE Barcelona to deliver razor-sharp focus on LatAm and evolving Brazilian Market
January’s first edition of ICE Barcelona will feature a programme of content, discussions and C-suite networking curated specifically to meet the needs of the new regulated market in Brazil and the broader opportunities which exist in Latin America.
Living up to its reputation for being the business-to-business event which is at the forefront of industry developments across both regulation and emerging technologies ICE 2025 will feature a three day program which is dedicated to all aspects of the market in Brazil including regulation, compliance and the adoption of new technologies including the use of biometric recognition in relation to age verification and consumer protection.
Announcing the program and confirming ICE Barcelona’s role as the meeting place for international decision-makers and stakeholders, Clarion Gaming Managing Director Stuart Hunter said: “ICE was recently described in trade media as being the most important gaming event on the ‘planet’ and I believe that the show will live-up to that accolade when we welcome the world industry to our new Barcelona home in January.
“Some industry events place a strong emphasis on the past but for ICE our focus is unashamedly on the future. To this end we have been working closely with colleagues and stakeholders in Latin America to ensure that ICE is on the front foot bringing together the lawmakers, regulatory bodies, thought leaders, operators, innovators and technology providers all of whom have an important role to play in developing the market infrastructure.”
He added: “The importance of LatAm will be evident from the very start of ICE Barcelona when Vicente Fox, the former President of Mexicoheadlines the World Regulatory Briefing taking place Monday 20 January when he will address the topic of ‘Regulation and Revitalisation’ and the requirements needed to balance economic growth with community protection.
“A critic of the populist movements sweeping the region, he will outline his business-centric approach to the development of Mexico, and why he favours casinos as a tax benefit to reduce Mexico’s dependence on unpredictable oil income, and for heling to grow the local tourism industry. The keynote reflects the importance of Latin America as a leading voice in the global gambling industry and represents a major coup for ICE Barcelona.”
“The following day we will be staging a seminar which will cover the very latest business-critical information on the market in Brazil which will be supplemented by sessions focussed on Latin America. On the closing day the LatAm sessions will address the key issue of responsible gambling including the ground-breaking use of biometrics which will be of huge interest to regulators and operators from throughout the world.”
He concluded: “In all of the extensive research that we undertake in order to identify the most important issues impacting the business Brazil and Latin America consistently top the list. By attending ICE Barcelona gaming industry professionals will be able to connect with the main players, learn everything they need to know about doing business in Latin America and find the right organisations to collaborate with. For anyone with an interest in Latin America and in particular the Brazilian iGaming market ICE Barcelona is undoubtedly the place to be.”
For more information on the world’s greatest gathering of gaming professionals and to register: icegaming.com
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