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Are current regulations suffocating the online slots industry?

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In the last three years, regulations specifically targeting slots and those aimed at the wider online gambling industry have been implemented by the UKGC. Are these regulations suffocating the online slots industry? 

Growing regulatory environment

Since 2020, the UKGC has ramped up the pace of regulation, taking firmer action to ensure that licensing conditions and codes of practice protect players. As slots are the most popular casino games in the UK, and have the largest average loss per player (according to UKGC data, the average monthly spend for a slots player is £67, compared with £36 for casino products and £45 for real event betting), many of these new regulations have focused on features of slot gameplay, like feature buys and spin speeds.

In 2021, the UKGC announced a ‘package of changes’ and strict measures that would ‘strengthen the protections and controls’ for those who gamble using online slots, making the games ‘less intensive, safer by design and hand players more control over their gambling’. The new rules included an outright ban on:

  • Quick spin features, or those that give the illusion that players control the outcome of spins.
  • Spin speeds faster than 2.5 seconds.
  • Auto-play, which could lead to players losing track of spins and spending.
  • Sounds, imagery or animations that give the illusion of a win when the returns are lower than the staked amount.

Additionally:

  • Slots must display the total win and loss amount during a playing session.

Around the same time, the UK banned reverse withdrawals (these allowed players to stake money they had requested to withdraw) and credit card use in UK-licensed online casinos. Affordability checks were also introduced. 

All in all, it’s been a pretty tense three years for operators and slot developers, and the pace of regulation is not slowing as the government is in the process of updating the 2005 Gambling Act to make it fit for the modern age of online gambling. The update is expected to introduce further affordability checks, potential per-player budgets, slot stake limits, and a single customer view that allows information-sharing across gambling operators. It will also inevitably bring new regulations for slot sites, like changes to the way bonuses can be offered and advertised.

So what effect has the growing regulatory environment had on the UK slots industry?

The UK slots industry 2020-2023

The UK online slots industry consists of hundreds of developers that release new titles each month – it’s one of the most competitive gambling markets globally, creating more than £2.9 billion in gross gambling yield (GGY) per year.

The UKGC has recently released operator data, which compares Q3 of the financial year 2022 to 2023, with Q3 of 2021 to 2022, to look at how the market has changed. In regards to online slots, the data showed:

  • GGY for slots in 2022-23 increased by 2% compared with 2021-22, but the total number of bets or spins increased by 8%. 
  • Average monthly active accounts increased by 13%.
  • The number of slots sessions over 1 hour increased by 11%, topping 9 million for the first time in UKGC data.

While the data is supplied by operators and doesn’t include all UK operators, it’s a great snapshot of what’s happening in the industry, showing an increase in spending, the number of spins and active players and a growth in longer playing sessions. 

Data from the UKGC’s industry statistics reinforce these figures and capture the entire market, showing that between 2020, 2021, and 2022 online slot GGY didn’t drop. This suggests that in financial terms, the measures have not significantly impacted the online industry (the data does not account for the number of players who swapped in-person for online play during COVID pandemic closures, which may be obscuring the effect of the regulations mentioned above).

The financial data contrasts with the viewpoint of industry operators, chiefly the Betting and Gaming Council (BGC), which has produced research arguing that the increasing regulatory environment coincides with growth in offshore gaming. The research conducted by the BGC is compelling when matched with offshore gambling revenue figures and case studies from other European gambling jurisdictions, like Norway, which have tighter regulatory environments and a larger offshore market. However, it does concede that the increase in UK offshore gambling cannot be correlated with specific policies. 

Effects on innovation

Finance aside, decreasing the speed of play and banning features like bonus-buy and auto-play can affect player enjoyment by slowing down games and reducing risk. In turn, more rules also place greater constraints upon developers, which may suffocate innovation within the industry and encourage developers to leave the market or focus on more emerging markets, like the US over the UK. 

So far, there’s no evidence of game developers or slot sites leaving the market. The pace of innovation also seems unaffected by the new rules, with the number of UK slot releases remaining the same and plenty of new mechanics, bonus features and ideas hitting the reels monthly. Rather than leaving the market, many developers have employed localisation techniques for the UK, developing one version of a game for international audiences and another for UK players (without feature-buy, auto-play and with reduced spin speeds).

Striking a balance: safety vs revenue

With more regulation and perhaps even stake limits expected in the upcoming white paper, gambling stakeholders and operators have questioned if UK regulations are going too far, becoming prohibitive to the industry and increasing the incentives to gamble offshore. The answer to this depends on attitude. Revenue generation and player safety do not need to be at odds with each other – they are not mutually exclusive and can align. Online casinos can be successful, growing revenue while putting player safety first. Still, there must be a balance, which must also be acknowledged and understood by regulators if the industry is to continue thriving.

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Esports media platform TalkEsport raises $1 million in pre-series A funding round

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TalkEsport, India’s leading esports media platform, announced today the successful closure of its pre-series A funding round, securing a significant investment of $1 million from Saswat Ventures. The substantial investment underscores TalkEsport’s robust growth trajectory and reaffirms its position as a pioneering force in the esports industry.

Founded in 2011, TalkEsport was set up with a vision to bring timely news and updates to gaming communities worldwide. As India’s oldest esports media platform, the company now caters to millions of gamers worldwide through its website and social media channels. TalkEsport plans to utilize the investment to scale up its core website while launching a highly interactive application for its audience and setting up a state-of-the-art production studio in Mumbai. Through it, the company will be launching exclusive content IPs focused on gaming and esports.

“We are delighted to welcome Saswat Ventures as our strategic partner,” exclaimed Deepak Ojha, Founder and CEO of TalkEsport. “Their belief in our vision and commitment to the esports ecosystem align seamlessly with our mission to redefine gaming experiences globally. With this investment, we will be scaling up our newsroom to cater to gaming communities worldwide while launching new content IPs targeted towards Indian and international audiences.”

Saswat Ventures, a family fund set up by Mr. BL Sharma, Principal, shares a vision of catapulting TalkEsport into a global phenomenon. Mr. Sharma has businesses across the country and expressed his confidence in TalkEsport’s potential to revolutionize esports media and connect with a vast audience of passionate gamers worldwide, “We believe in TalkEsport’s potential to become a global platform for esports enthusiasts worldwide.”

Trilochan Sharma, a seasoned expert in compliance matters, joins TalkEsport’s board as the Director of Compliance. His wealth of experience will ensure adherence to regulatory standards and bolster the company’s governance framework.

In addition to this pivotal investment, TalkEsport is proud to announce key developments that highlight its commitment to innovation and growth:

Production Studio in Mumbai

TalkEsport is excited to unveil its state-of-the-art production studio in Mumbai. This cutting-edge facility will serve as the epicenter for creating high-quality esports content, launching content IPs, live broadcasts, interviews, and immersive gaming experiences.

Pranav Nalawade, the Editor-in-chief of TalkEsport, said, “Our new era of esports coverage will begin not only with TalkEsport’s revolutionary approach in publishing news and covering esports events but also high-quality esports content courtesy of our new production studio. As one of the oldest esports media platforms, we have built an audience that relies on us for our history of trustworthy and reliable news. Now, we want to double up on this audience, reforming the way content around esports is consumed in India and abroad through podcasts, media, short-form content, and analytical stories – both in the form of video and text.”

Upcoming Mobile App Launch

Furthermore, TalkEsport is gearing up for the launch of its mobile application soon. This innovative app promises to redefine how gamers access news, engage with esports communities, and participate in live tournaments, all from the convenience of their mobile devices.

“Proceeds of the $1 million will be utilized in creating a robust team of gaming enthusiasts and expanding our global reach,” added Deepak. “This investment not only propels TalkEsport’s growth initiatives but also fuels our mission to provide unparalleled experiences for esports enthusiasts worldwide.”

Through its application, esports viewers will be able to get live coverage of esports tournaments, scores, and interviews. Additionally, they will be able to participate in community tournaments, thus providing an end-to-end immersive experience from the convenience of their mobile devices.

The media company continues to lead the charge in transforming the esports landscape, fostering community engagement, and pushing the boundaries of gaming innovation. The company’s dedication to excellence, coupled with strategic partnerships and visionary leadership, sets the stage for an exciting chapter in esports media.

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Push Gaming releases a sugary sequel in Retro Sweets

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B2B gaming supplier Push Gaming returns to the nostalgic aesthetic of one of 2023’s biggest hits with its latest sequel, Retro Sweets.

Building from the success of Retro Tapes, the slot is again played across a 6×9 matrix but this time swaps audio cassettes with various tasty treats and instant win coins to represent its symbols in this cluster pay outing.

Wild candies make it easier to create winning clusters and also bring the game’s intuitive use of multipliers into play. For each successive win that a wild is a part of, its multiplier increases by 1x while multiplier symbols further increase win potential and provide a progression loop.

Elevating the gameplay further, Retro Sweets introduces the Instant Prize Multiplier which gives regular Instant Prize symbols the potential to form crazy winning clusters.

The now synonymous Cluster Links mechanic also benefits from the sweet collector feature, an augmented version of Retro Tapes’ Magnet mechanic, which gathers all non-clustered coins, symbols and wilds into the same part of the gameboard.

Providing increased player personalisation and amplified replayability, the Push Bet feature allows players to have one or two guaranteed wild candy symbols land on each spin with three needed to enter the bonus round.

Not only does this make entry to the bonus easier, but raises the potential of landing a greater number of wilds – more wilds mean more spins, opportunities to form connecting coins clusters and more maximum wins – continuing the Retro franchise’s synonymity with big prizes.

Retro Sweets blends nostalgic iconography and sound design with innovative mechanics that made the original title a multi-award winner. It follows other notable hits from the studio, including DJ Cat, Samuari’s Katana and Wild Swarm 2.

Senior Game Producer, Ihor Lozinskiy at Push Gaming, said: “Retro Sweets is a mouth-watering, mechanically rich title that amplifies the use of multipliers and offers more ways to win big. The evolved features are set to engage players and allow them to enjoy the slot in a variety of ways, tailored to their play style.

“We’re excited to be expanding upon the success of Retro Tapes and returning to the Cluster Link mechanic for one of our sweetest releases of the year.”

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Tequity agrees RGS licensing deal with Fantasma Games

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Listed Swedish studio to benefit from increased speed to market
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Listed Swedish studio to benefit from increased speed to market

Tequity, the up-and-coming iGaming software pioneer, has agreed an integration deal with innovative studio Fantasma Games.

The integration of Tequity’s agile, licensed modular platform is expected to boost the speed-to-market capabilities of Fantasma, as the studio aims to grow its presence in key markets including North America.

Tequity’s platform incorporates a Remote Gaming Server (RGS) that increases operational efficiencies. Once live, Fantasma will be able to reach the next level by adding partners at a quicker rate, as it looks to meet operator demand for fresh types of content including increasingly popular sweepstakes.

The latest deal, with a studio listed on the Swedish stock market, follows on from successful launches of Tequity technology with sports betting-focused Parlaybay, multiplayer specialist BeyondPlay and slots supplier AvatarUX.

Tequity offers founders, start-ups, scale-ups and established companies across the iGaming sector a wide range of software modules that can be hand-picked to meet the needs of specific projects.

Krzysztof Opałka, Chief Technology Officer at Tequity, said: “We are excited to be working with Fantasma Gaming, to help further their growth in key markets worldwide.

“This partnership illustrates the power of our platform in delivering an efficient RGS solution that speeds up the launch process of their top-quality content. The Tequity platform offers a strong foundation for licensees wishing to create and deliver unique content to operators.”

Fredrik Johansson, CEO and Founder of Fantasma Games, added: “Thanks to the Tequity platform, Fantasma Games is working faster and smarter across a number of areas, allowing us to bring innovative content to our partners at speed.

“This integration significantly boosts our growth potential, as we look to increase the number of operator partners we work with around the world and deliver them relevant, localised and exciting games.”

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