Interviews
Exclusive Interview: Jonathan Power, Founder and MD of Voxbet
European Gaming talks to Jonathan Power, Founder and MD of Voxbet, about the company’s rise to prominence in the sports betting space and making waves in genuine innovation with its latest betting microphone for sportsbooks.
What was your industry background before you started Voxbet as Onionsack in 2006?
My background was in fintech. My co-founders and I had a background in modernising banking tech for the big UK and Irish banks in the 1990s. We did that until the mid-2000s, and I was always very keen to have my own gig. I wanted to enable something that would enable people to conduct value transactions by text message. This was before the smartphone, but we built a platform that could prove it was you who sent the message. We came up with a number of applications for that technology, but the target was fintech and person-to-person payments.
What I knew from my experience with fintech was that the banks won’t touch anything that hasn’t been proven in another industry. We did a few things. We had person-to-person payments, share trading, we offered the buying of concert tickets, but we chose sports betting. You could make a bet by writing what you would write on a betting slip and sending it in a text message. We would read the text message and know who you are. If it was a high-value transaction, we would prove it was you that sent it by calling you back and taking a print of your voice.
I took a punt that the betting industry would try something like that. I went to a trade show in November, and we went live with the Tote in the UK the following June. It was a time when you could get things done. I never left the industry, and even though I say I’m from a fintech background, I’m actually more from a sports betting background now, in terms of years served.
Did yourself and your partners know much about the sports betting space going into it?
I did as a punter, but I didn’t know who to talk to. I took a stand at a trade show and we did well out of it. From there, we did deals with William Hill and Paddy Power, so we built a nice little business out of that. Smartphones then made text betting quite niche quite quickly, but people who bet with us via text in 2006 still do that with us now. We made a massive pivot (in branding terms, more so than technologically) to move into voice betting about a year-and-a-half ago, and we’ve been Voxbet ever since.
With text betting, what would a supplier offer as opposed to an operator saying “text us on this number”?
We would have read the message and understood it. Everybody is uniquely identifiable by their phone number, so we would know it was you, we would know you had the device in your hand, and what it is you wanted. There was about an 80% chance we could read the message and place the bet automatically, before sending you back confirmation, and there was about a 20% chance we wouldn’t understand it with 100% certainty; in which case we needed a call centre agent to bring some human intelligence to the interaction. That’s the platform which is up and running and it’s still used in a number of places, but it’s not what we’re presenting to everyone now. Everything now is all about voice.
When it came to the voice tech, what did your research tell you about what was missing in that space and were many other suppliers offering it at the time?
There were two things we noticed. The first is that tens of billions of dollars are being spent on voice by big tech companies. Google, Microsoft, Apple, Amazon and IBM all have massive products in the voice space and have spent tens of billions acquiring companies in that space. They have made a huge bet on the future of interacting digitally being voice.
The other factor is an awareness that there’s so much content on the sports betting side now. When sports betting sites first went online, it was more or less taking the shop coupon and putting it on a web page; it was that simple. When Google launched in 1997, there were two million websites in the world; there are now two billion. One sports betting site now offers more than two million things you can bet on, but there was still a way of navigating things before Google entered the scene, where you would go through layers and layers of menus. That’s a poor user experience and it’s not an experience for people other than existing gamblers who have had no choice but to use that system. Young people won’t use it like that. If Spotify was laid out the way a sports betting site is laid out, nobody would use it; it would be unusable. People are used to getting what they want everywhere else online.
This wasn’t something sports betting suppliers had tried before, and it actually turned out to be much more difficult than we expected. We thought we could plug into the existing engines like Google and IBM. They work really well to about 90%, but then they apply artificial intelligence which can change what a customer is saying to something that they didn’t say. Sporting parlance is quite unique. If I said to Google that I wanted a £20 treble on Liverpool, Leeds and Coventry, it will say you want £20 travel to those places! That’s actually a benign example and there are some brand-damaging examples. It’s not the sort of thing you could launch with the kind of mistakes those engines can make, so we’ve had to adapt to that and come up with something specific to sport.
How did you go about creating the technology that could iron out those issues you mention?
We knew an awful lot about sports betting language from our text betting days. We started out on the assumption that if you could understand a bet which is expressed in words, you could understand a spoken bet. But as I say, it did turn out to be more of a challenge than we thought it would be.
The way we have fixed that problem is by creating a dictionary where the only thing that dictionary understands is sporting terms, and we recompile that dictionary every hour, based on which events are on. We’re working on the assumption you won’t bet on something today that starts in a week’s time, and the universe of what you’re trying to understand becomes too complex if you look too far ahead. I’d say 99% of our traffic is for events happening soon. If it’s not accessible by voice, it’s still accessible the old way. You can make the problem much smaller if you say people are betting in this space right now, and then you recompile the language to be relevant to sports betting in this moment. If you keep recompiling it, it will then be phenomenally fast and accurate.
Does this work just as well then if I want to bet on a complex Betbuilder as much as a single match?
It’s working on racing at the moment, and it will do anything up to the most complicated place bot in one hit. You can say ‘£5, place bot,’ and call out all your horses. The target is to eventually include Betbuilders. Once we can do that on horse racing, we will know we can do it on other sports as well.
So how many sports can it work for right now and what sports are you planning to expand to?
In English, the rollout will be in three phases. The first is for horse racing, which is ready to go. The second is for football, which we’re working on, and the third phase is everything else.
How significant could this be for operators, in terms of the percentage of bets that could be placed this way?
That’s something we will begin to understand after we launch. We’re working on an integration in Asia, and in the UK, it will launch before Cheltenham. We don’t know yet, but what we do know from our text betting metrics is that the people who want the easiest way of betting are the people who bet a lot. The average user of a betting app might bet 12-15 times per month. The average user of text betting in France for example bets 160 times per month. Simplicity appeals to those who interact a lot with sportsbooks, and they’re very important customers who are currently poorly served by having to do a lot of digging.
Are you particularly looking at younger demographics within the serious bettor demographic?
We’re after two key demographics. The first is more important in value terms rather than volume terms, so for those who know what they want, we want to give them an easier journey. The second cohort is younger people who engage digitally with their voice every day already. They use interfaces like Spotify and TikTok, and have never had to navigate something like a sportsbook, so that’s a key market for us as well.
Would I need to be logged into the app to use the voice technology?
The intention with our bet mic is that you’re inside the app. We give operators a widget that they can put on their homepage. You press and hold the microphone, say what you want and let go. That then brings you to the betslip.
How compatible would that be then with something like Alexa?
Alexa won’t work for this. It was something we looked into. We did demos on it and it looked impressive when it worked, but the problem at the moment is that Amazon will translate what a customer said to Alexa, and it just gives you the transcript. Amazon has to do that without any context of what you said, so it’s actually phenomenally impressive that it comes even close, but most of the time, it doesn’t come close enough. You can get it to work, but it doesn’t work at a high enough level of accuracy. At the moment, I would say ours will work 99% of the time and produce exactly what you said. It becomes much simpler when you have context, but that means you can’t use tools like Siri and Alexa, because they work without context.
How challenging will it be to get across to people that this is a different way to bet from what people are used to? How will you change people’s mindset and make this the first thing they think to do with a betting app?
People of my age learn from younger people. I see my children do something and then I start doing it. It’s partially going to be down to operators to get it across to their customers that there’s an easier way of doing things. When you see a microphone, you tend to know what it’s for. If you see a microphone on the homepage of a sportsbook, you will wonder if you can just speak your bet.
The likes of Waterhouse VC have invested in your business. What has that investment been used for specifically and are you still looking for further investment?
Industry heavyweights open doors and their evangelism is transformative to us as a company, because people really listen to them. We use the word ‘ubiquity’ 10 times a day, and that’s our target. We know that when the right innovation hits the industry, everybody wants it. That’s what happened with in-play betting, cashout and in-game multiples, and we think this is in the same category. Those investors can change this from being a niche product which a few people think is cool to something that will become ubiquitous. We’re not looking for further investment. We have a trading business with our text betting, and that’s something we will look at, but not right now.
What is their equity in the business?
A lot of deals like that these days are structured with underlying options. They’ve bought a small piece but they’ve got an option for a bigger piece. I’d advise any innovator to look at offering industry evangelists deals that are structured like that, because it means they’re not penalised for the value they create. They can buy more at the same value as when they joined the business, even when it’s worth significantly more. All of them have put their own money in.
Does their collective ownership come to around 10% or less than that?
I’d say collectively it’s around 10%, but they have options to go nearer to 20-25%.
What do you think really needs to improve in the area of voice technology and how will you take it on a level?
I think the big tech in this space is amazing and I wouldn’t want to be seen to be in any way critical of it, but they’re working without any context. If you use Google’s voice dictation, it’s phenomenally accurate, but it is having to do that without context. You’ve got so many things happening in a sportsbook, and even if you want to ask about events in the next three hours, it’s too much to ask Google to understand that model, because there’s too many terms.
I think the big tech engines aren’t sufficiently adaptable to customer-facing scenarios in a B2B sense, but the business knows the context. I could be at an insurance company, and I know when someone sends me a voicenote over WhatsApp, they’re going to be talking about making a claim or wanting a renewal. The amount of language that’s relevant in that scenario is a very small fraction of what they’re able to understand, but because they’re open to understanding everything, they get more wrong. I think the ability to configure their platforms for a very narrow context is what makes us different.
How many operators have you partnered with and how many will you go live with at Cheltenham?
We have one media company which we will go live with, and they work with 10 UK bookmakers, so there will be bets placed with this at up to 10 major UK bookmakers.
Going forward, which markets will you focus on?
English is a priority. Everybody wants to focus on the US, but for us, we are also focusing on the Chinese language. We’ve got our platform working for the Asian market, so if we can do that, we can do anything. English will be the priority, but our biggest customer is PMU in French, which is easy for us to do. We’re undecided but we will take the opportunities where they come. A new language requirement will take about a month for us to get it working.
Do you have a target for the number of sites you want to be live with in the next few years?
We want to be live on at least 100 sites in three years and want to be on almost every site within five years.
How will the technology evolve over the next few years to allow that to happen?
The voice technology that’s out there is good enough. It will really depend on whether operators want to offer a chat-style user interface, where a customer can say: ‘I want to bet and I fancy Liverpool to beat Spurs tonight. What will the price be if put 20 quid on that?’ That’s not our approach. We just want customers to say: ‘£20, Liverpool to win.’
The whole area of what’s happening with ChatGPT and AI could change what user experiences people want and how they want to engage. I think people want to engage with technology as though it’s technology and want to engage with people naturally. It would be sad if people wanted to engage with technology as though it’s a person, but that doesn’t mean it won’t happen.
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.
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.
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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