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Exclusive Safer Gambling/Harm Prevention Roundtable

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Exclusive Safer Gambling/Harm Prevention Roundtable
Reading Time: 8 minutes

 

The latest EGBA reports have indicated that not only are members sending more safer gambling messages than ever before, but also that these messages are becoming increasingly personalised. How important do you think it is for gambling companies to keep looking at the topic of safer gambling/harm prevention and finding more tailored ways to reach their at-risk customers?

Oliver Niner (ON): PandaScore is on the supplier side of the industry, but responsible gambling is very important to the business and everyone who works for it. We go to great lengths to ensure that the data that we provide to our operator partners allows them to do the best job they can of looking after their players, that their activity can be monitored and that any potential problem gambling issues can be picked up early. It’s not our responsibility to protect players, but we do everything we can to facilitate safe gaming. This includes ensuring that all participants in the esports matches that we provide data and odds for are over the age of 18 and we also have a blacklist of matches and tournaments where the likelihood of collusion and other issues are high. This means that we only provide data and odds for matches that are fair and where all players are over the age of 18. Personalisation is a must for operators across all areas of their business, and responsible gambling is no different. If you really want to engage a customer, you need to connect with them on a personal level.

Alex Iaroshenko (AI): Having a solid policy in place for safer gambling/harm prevention and paying close attention to related technology such as Fraud Detection Systems (FDS) are two of the most important things an iGaming business needs to do. When they can prove to the industry that they’re focused on these matters and are committed to developing more sophisticated ways of dealing with at-risk players, their business obviously becomes a lot more trustworthy and they’re likely to attract greater cooperation from companies on the B2B side in future. From the B2C side, speaking openly about safer gambling and how you intend to protect your players also improves your standing in the eyes of bettors as it reassures them they’re playing in an environment where their best interests are being looked after.

 

What is it about personalised messaging that you think makes it more impactful with customers? Does following betting behaviour closely and responding to events in real time potentially enable gambling operators to intervene at the exact moment where customers are most at risk?

ON: So this isn’t really in PandaScore’s wheelhouse but I am a firm believer that personalised messaging and closely monitoring betting behaviour are highly effective when it comes to improving responsible gambling. There are powerful technologies in the market that allow for real-time monitoring of player behaviour, with the first sign of problem play flagged, often automatically. So long as the operator has the right processes in place, individual players can then be engaged and supported before it becomes a major issue for them.  As a provider, we do everything we can to support our operator partners in their efforts to protect players – as mentioned above, this includes providing them with the best data only from tournaments and matches where players are over the age of 18. Ultimately, responsible gambling requires commitment from all stakeholders and as a supplier of data and odds, we are doing everything we can to contribute to this effort.

AI: Absolutely. By closely following a customer’s betting activity and responding to certain “red flag” behaviours in real time, gambling operators can potentially intervene at the precise moment where their messaging will be at its most impactful. This is often referred to as responsible gambling or harm minimisation and has become a key part of overall safer gambling strategy, with many gambling regulatory authorities now requiring operators to issue these personalised interventions and use other RG measures to protect vulnerable customers. Generally speaking, a personalised message is always going to be more likely to get a customer’s attention than a generic one, and while this can be beneficial for safer gambling purposes, operators should ensure these tailored communications are used responsibly elsewhere and aren’t encouraging users to engage in harmful gambling behaviour.

 

In light of the above, how big of a role do you think AI has to play in improving the protection that’s offered to at-risk players? Presumably if gambling operators are able to monitor betting activity and issue appropriate safter gambling messaging automatically, it will eliminate human error and ensure that no players fall through the cracks when they’re at their most vulnerable?

ON: PandaScore is a big proponent of AI – so long as it is used in the right way – and we have embraced this technology and used it extensively when building our product offering. AI can absolutely be used to improve responsible gambling, especially when it comes to monitoring player behaviour and patterns to identify potentially at-risk players early. That said, AI needs to be combined with human oversight in order for it to be deployed responsibly and for operators to be able to leverage the full potential of the technology, especially when it comes to safe gaming. By combining humans and AI, the technology can be further developed and refined specifically for the purpose of safe gaming so that it keeps getting better at identifying potentially at-risk players and then delivering the right messaging at the right time.

AI: While AI can significantly enhance responsible gambling measures, it’s important to note that it should always be used in conjunction with human oversight and viewed through a lens that also takes ethical considerations into account. At this precise moment in time, human expertise remains crucial in interpreting AI-generated insights and using them to make decisions that balance player protection with a positive user experience. All AI systems must therefore be designed with transparency, fairness and privacy in mind to ensure they are used responsibly and ethically. Essentially, a good AI system should act as a reliable co-pilot that can track, inform and make recommendations when there’s a safer gambling issue, but it’s down to staff to interpret this data and decide the best course of action.

 

In terms of safer gambling, one of the most encouraging signs for the industry is that in addition to operators, the players themselves are also becoming more engaged with responsible gambling, with 30% voluntarily using safety tools like time outs, bet limits and self-exclusion. Do you think this shows operators are doing a good job in promoting these tools and making them easy to use?

ON: I think the majority of players are self-aware and understand the need to stay in control of their play. This is certainly the case with esports players and bettors, and if this continues to filter down into the wider gambling world then that’s absolutely a good thing. Of course, there is always more that can be done, and operators should be more proactive when it comes to responsible gambling. The market leaders are doing well in this regard and are setting a solid standard for others to follow. There is a lot that can be learned from the esports space, too. It is very much community-driven with players connecting via platforms such as Discord where they openly talk about their gaming activity in what they consider to be a safe environment. This will hopefully trickle down into traditional sports betting, providing operators with an opportunity to better engage players in an authentic way and share messages around safe gaming rather than pushing them at players, which is the case now.

AI: Ultimately, responsible gambling is a shared responsibility between operators and players. The former have an important role to play in providing necessary tools and resources to their customers, but the latter must then take the responsibility to use them wisely and seek help when they feel it’s necessary. As such, a collaborative process between the industry and its customers is key to fostering a safer and more responsible gambling environment; and the stats we’re seeing indicate this approach is starting to take root. So yes, operators should be given credit for promoting these tools and making them easy to use, but we must also praise customers for being responsible and taking control of their situations.

 

One of the many services available at BETBAZAR is KYC, which obviously assists clients in ensuring their depositors are of age and able to gamble responsibly. How important are services like KYC in helping operators quickly/reliably verify their customers so they can better protect them?

AI: KYC services are essential tools for operators in the gambling industry that allow them to verify the identity of their customers, prevent fraud, comply with regulations and promote responsible gambling. By implementing KYC processes, operators can better protect their customers, uphold the integrity of their platform and – in some cases – even prevent harmful gambling behaviour before it happens. The key to a good KYC process is having a system in place that enables the operator to get all of the data that they need approved and verified quickly, while not making things complicated for the user and discouraging them from completing their sign-up process. The tools that we provide at BETBAZAR certainly do just that, ensuring a seamless process for both the client and their customers

 

While safer gambling/harm prevention measures are obviously very important, do you think there needs to be a balance struck between protecting players and ensuring they’re not too restricted? It seems that if you impose too many checks, verification processes or controls on players gambling, you run the risk of driving them directly to unsafe sites with fewer regulations…

ON: There does need to be a balance. One way this can be achieved is to make improvements to the user experience and incorporate responsible gambling tools into that. The front-end experience has changed very little over the past five years or more, and there is space for operators and suppliers to pioneer new approaches here. Onboarding needs to be fast and frictionless, but with smart design, this can be achieved while bringing responsible gambling to the forefront. The underlying technology required for this is readily available, but most operators have focused their use of this on ensuring payments are rapid and bonuses personalised, rather than how to better integrate safe gaming into the overall player experience. A change in tack here could have a profound impact on safe gaming.

AI: Having overly stringent safer gambling/harm prevention measures can indeed drive players to unregulated or unsafe gambling sites, which can pose an even greater risk to their well-being than if the site they originally wanted to play at was a little more relaxed in the first place. As such, both regulators and operators must work together to ensure a suitable balance is struck between protecting players and maintaining a positive user experience. As mentioned above, KYC checks are essential but should be designed to be as seamless and non-intrusive as possible. Then, rather than solely relying on restrictions, operators should invest in educating players about responsible gambling practices and empower them to make their own decisions. To complement this, operators may also consider using a tiered system where customers choose the level of protection that best suits them.

 

Finally, is there anything that you think the online gambling industry in general should be doing differently when it comes to promoting safer gambling and harm prevention? Should there be a more open dialogue between regulators and operators when it comes to deciding policy/strategy?

ON: There should always be an open dialogue between regulators, operators and other stakeholders. Collaboration is key to progress, and this must come from the top down. Operators know they must protect players and are doing this, but there is always room for improvement. Esports is all about community and I think the wider gambling industry would do well to look to come up with community-led initiatives that bring players together and allow them to engage with them in a more authentic environment. They should also look to redeploy their technical capabilities into responsible gambling – they can profile players and segment them on a granular level for the purpose of marketing and bonusing, but are they really using these capabilities to be more benevolent and take player protection to the next level?

AI: As we’ve outlined above, there are several areas in which the online gambling industry could improve its approach to promoting safer gambling and harm prevention. These include increased transparency, enhanced education for players, greater collaboration with regulators – including research and data sharing – technological innovation and having regular audits and assessments of safer gambling practices to establish what’s working and what isn’t. At the end of the day, promoting safer gambling is a shared responsibility between operators, regulators and players, so by fostering an open dialogue, sharing data and insights and working together, the industry can create a safer, more responsible gambling environment that protects players’ well-being while preserving the integrity of the industry

Interviews

From Esports to Emerging Markets: Deep Dive into Sports Betting Trends 24’ with Alexander Kamenetskyi

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From Esports to Emerging Markets: Deep Dive into Sports Betting Trends 24’ with Alexander Kamenetskyi
Reading Time: 3 minutes

 

As each new year begins, there is a growing interest in anticipating the trends that will shape the months ahead. Could you provide insights into the sports betting trends that are expected to be relevant in 2024?

Our SOFTSWISS Sportsbook team has reflected on the past year and observed that the sports betting landscape largely maintains its trajectory, with several key trends that the industry is already familiar with.

Firstly, esports is set to continue its solid rise within sports betting. Over the past few years, esports has steadily climbed the ranks, with games like Counter-Strike gaining significant traction among bettors. With projections indicating a substantial increase in viewership, reaching an estimated 640 million viewers by 2025, according to reports from Newzoo, esports presents a lucrative opportunity for operators to tap into.

Additionally, the dominance of mobile betting is expected to persist, with mobile devices driving the majority of operator gross gaming revenue (GGR). This trend underscores a preference for convenience, particularly in live betting scenarios. That is why we continually enhance our mobile applications and websites to cater to evolving consumer demands.

Also, with the emergence of newly regulated markets, operators are prioritising certification and compliance to ensure the integrity of their offerings. This includes obtaining certifications such as GLI-33 and licences such as MGA, which the SOFTSWISS Sportsbook received last year.

Overall, the sports betting trends in 2024 underscore the importance of adaptability and innovation. Operators must navigate an increasingly dynamic landscape driven by technological advancements and regulatory changes.

 

You have named a few trends that seem relevant for both casinos and betting projects. Does this mean that both types of projects should focus on the same aspects?

Yes and no. While the iGaming market shares common trends like regulations, each area has specific considerations. I would mention one interesting point between sports betting and casino betting. 

Last year, analysing the results of the FIFA World Cup and talking with our partners, I found out that there was a 10–20% drop in online casino betting turnover during this sports event. This shows that even casino-only projects have at least 10% of players interested in sports. In practice, it means that during every major sporting event, a casino will more likely lose a minimum of 10% of its turnover. That does not sound nice. 

That is why adding sports betting opportunities to online casinos would be a great option, especially since it’s now possible to give players a seamless experience. And I am talking not only about the SOFTSWISS Casino Platform. Our Sportsbook can be easily integrated with every casino platform on the market. 

We have cases when casino projects not only opened a sportsbook but also migrated to our sports betting platform. By the way, promoting sportsbooks is much easier than casinos, as sports events help a lot. Also, player conversion in sports betting is many times higher because, in my opinion, it is more socially accepted.

 

What do you mean by seamless experience?

A player simply sees no barriers moving from casino to sportsbook. In most cases, it looks like an additional tab on the website. The most convenient thing is a seamless wallet. Players can use the money they deposited at the casino for their sportsbook activities. 

We make the experience seamless not only for players but also for our partners. Our suite of products offers operators a comprehensive range of solutions, including Affilka, the Casino Platform, the Game Aggregator, the Jackpot Aggregator, and a payment gateway. These products are designed to integrate with each other, creating a cohesive ecosystem.

 

Going back to trends and predictions for this year, which markets would you say are the most promising?

In our market focus, we are looking closely at Latin America, especially Brazil, and Africa, with a specific eye on South Africa and Nigeria. These regions offer exciting growth opportunities, and our strategy is geared towards unlocking their potential to better cater to the unique needs of these markets.

This year, SOFTSWISS has already acquired a majority stake in Turfsport, a leading South African provider of multichannel wagering software for sports, horse racing, and lotto. It helped us officially enter the African market and extend our product portfolio.

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Paving the Way for Regulated iGaming market: Will India See the Rise?

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Paving the Way for Regulated iGaming market: Will India See the Rise?
Reading Time: 4 minutes

 

By Dr Aruna Sharma, Practitioner Development Economist & Retd Secretary GoI

 

Could you provide insights into the current market potential for iGaming in India, and what key challenges do you anticipate the industry facing in the near future?

The popularity of online gaming as a form of entertainment in India has surged with the widespread availability of inexpensive smartphones and affordable internet access. Global investors, developers, and other industry stakeholders are keenly watching the growth story of the Indian online gaming industry which has witnessed a 28% CAGR between FY20-23 and holds a market valuation of ₹16,428 crores.

However, instead of direct contribution in the economic growth story of India the online gaming industry is contributing in terms of increasing revenue (direct and indirect tax) collection (year-on-year). Additionally, the sector has attracted budding tech developers and entrepreneurs by providing them employment opportunities and fueling innovation to keep up with the rising demand for AI and other such immersive gaming experiences.

After some crucial and elucidative changes in the regulatory and taxation policies by the government in 2023, one can hope that 2024 for iGaming will thin the clouds that are shadowing accelerated growth of iGaming in India. 2024 holds promise for iGaming in India. While full regulation may take time, positive court ruling and increased focus on non-RMG segments could cause a casual gaming boom, potentially unlocking a multi-billion dollar market. However, regulatory uncertainty and potentially high tax rates remain a hurdle for attracting investments and interest of other stakeholders in this growing market and industry.

 

What are the main challenges facing Indian iGaming and how different are these challenges within the different regions of India?

  • The government is focusing on reducing threats like false information, mental health problems, money laundering, and financial losses for users by bringing rules and regulations such as the IT Rules, establishing SROs and SRBs.
  • Adequate regulation, that is conducive to doing business, is needed, first of all, to protect the Indian players. Because in the current situation, Indians are being abused by countless nefarious parties. Checking and curbing the illegal gaming platforms and enhancing mechanisms to ensure increased user awareness and behaviour while indulging in online gaming.
  • A pressing concern that requires governments urgent attention is to put in place parameters that differentiate between games of skill and chance for taxation.
  • As a fallout of high and retrospective taxation the industry is facing job losses, advertising and spending cuts and reduced investments in research and innovations.

Additionally, policy and regulatory compliance for the platforms have become increasingly complex with both center and state governments legislating on the same subjects and multiple ministries regulating the industry.

 

Delve into the necessity for a regulatory framework that is both balanced and adaptable.

Unregulated framework where user base is large leads to spread of iGaming in gray market with all its vices. By regulating the iGaming industry, the government can unlock other positive outcomes, such as increased tax revenues, economic growth via attracting more foreign investment, job creation, and better consumer protection. A thorough regulatory framework will enable transparent parameters to distinguish and license the game of skill accordingly and rest will fall under game of chance.

Regulations always bring in transparency and ensure there is no misleading advertising or non-payment of legal taxes. Additionally, regulations such as the IT Amendment Rules, 2023 have ascertained a robust grievance redressal mechanism by setting up of the SRBs and SROs.

Further a balanced and stable regulatory framework could provide assurance and confidence to the international iGaming companies in paying taxes while doing business in a regulated and transparent market, create jobs, and invest in the country and its people. Thus, comprehensive regulations, that are conducive to doing business and protect the Indian players, who are being abused by countless nefarious parties are necessary in the current iGaming landscape.

Consequently, foreign iGaming companies operating legally have consistently demanded that the Indian government establish an adequate and stable regulation and taxation regime. Instead, the government has consistently chosen to unwisely prohibit it, thus pushing this whole industry underground. Furthermore, iGaming companies face unfair persecution and baseless lawsuits from India.

 

The new 28% GST on online gaming has produced divided opinions about the industry’s future in India. How has the industry reacted to it?

Industry initially panicked at the 28% tax, fearing slow growth and reduced investments. The partial relief, clarification on the regulatory compliances have brought cautious optimism. Smaller firms remain anxious, fearing the high rate still discourages players and favors larger businesses. Long-term impact depends on pending Supreme Court judgment on game classification and potential tweaks to the tax structure.

The applicability of a flat 28% tax on the total value of bets placed in online gaming, irrespective of whether they are games of skill or chance has upset the applecart that was moving smoothly with the evolution of agreed principles among SROs and the oversight by SRB with clear distinction of the regulatory body between Games of Skill (permissible games) with that of Games of Chance.

The matter is now being reviewed by a Group of Ministers (GoMs) comprising of officials from ministries such as the Home, Finance, MeitY, etc. to reconsider the GST and how to counter episodes of money laundering and other such scams and frauds.

 

Finally, what can we expect from Indian iGaming as a whole this year, if you were to sum it up in three key points?

It is expected that 2024 will set pace by bringing in clarity in rule making, consistency of rules, inculcating a more stable policy environment that enables India to not miss the bus of becoming a hub for developers. The iGaming industry is expected to tighten its grip for filling the digital divide, enabling learning of cognitive skills and enhance conscious citizen messaging to further tap into the positive side of iGaming.

Additionally, iGaming industry should leverage technologies like blockchain to further the purpose of transparency and tracking of digital payment as a technical solution and for permanent storage of records to curb money laundering. Alongside formulation of regulatory policies, a stricter implementation of policies such as IT Rules (establishing SRBs), mandatory KYC, and compliance with Advertisement Standard Council in India (ASCI) norms for iGaming industry need to be inculcated in ensuring safe and secure gaming platforms.

The future of the gaming industry holds promise of growth, however, there is still a hazard that due to absent market regulation and destructive policies, international iGaming companies shun India, sending an unwelcoming signal to many other potential foreign investors.

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Interviews

Software is complex and success hard to achieve, Q&A w/ Max Francis Founder of Black Cow Technology

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Software is complex and success hard to achieve, Q&A w/ Max Francis Founder of Black Cow Technology
Reading Time: 5 minutes

 

Online gambling operators continually engage with different software projects but the rate of failure remains incredibly high. This is usually due to time pressures placed on the project. To learn more about software development, and some of the pitfalls operators need to be aware of, we spoke to Max Francis, founder of Black Cow Technology and 25 year veteran of software development. Max also talks about Agile and Rapid Application Development, and how by adopting these approaches, and working with a specialist software developer, operators can hugely increase the chances of success of any software project.

 

What are some of the main challenges operators and suppliers face when it comes to software development?

Software development is about solving a problem and the very nature of this means that we don’t know how long it will take. This is one of the biggest challenges operators and suppliers face when it comes to software projects. They struggle to understand that software development is a creative process and that we are trying to solve a problem we haven’t tackled before and we simply don’t know how long it will take to do this. This doesn’t reconcile with the date-based mentality of most organisations when it comes to deadlines and completion. This often sees projects rushed and hurried to meet an arbitrary deadline and this usually results in the project falling short of the mark or failing completely. It’s much less painful for all involved if there is a universal, upfront understanding that we can never know how long a software project will actually take.

 

What do companies need to consider if they are to complete software projects successfully – on time, on budget and in a way that effectively solves the issue?

Operators and suppliers need to make business commitments of their own and they need to be able to rely on the software provider they are working with on the project. To be able to do that, both sides need to accept the project is going to vary and evolve over time, and that they will have to trade off three crucial dimensions if it is to be delivered successfully:  features, quality and timescales. It is impossible to secure all three and at least one will have to give. So, if a project needs to go live by a certain date, that might be fine, but functionality can’t be fixed for that date. If the project needs certain functionality, then you can’t set timescales. If certain functionality is absolutely required by a certain date then the quality will have to give. Most projects try for all three – features, timescales and quality; and this is why they fail.

 

It seems that being realistic about what can be achieved is key.

It is indeed. When it comes to it, a software development project ends up in one of three places. Good with all the features but not quick; good and quick but not with all the features; or all the features and quick, but not good. The latter approach, perhaps surprisingly, can be useful for prototyping and proof-of-concept projects but care must be taken when developing without quality. All too often, trial projects end up seeping into mainstream production and people wonder why the quality is so poor. In my experience, it’s much better to be realistic about what can actually be achieved rather than trying to run a project with blindly perceived “needs” that just can’t be met. This doesn’t mean scaling back ambitions, it just means understanding the compromises. That said, to be able to predict what can be done, we need to understand and deliver small useful chunks of what we know rather than failing to deliver based on what we want. It’s always best to be realistic, and Agile and Rapid Application Development principles help us to do this.

 

Can you tell us more about Agile and Rapid Application Development principles?

At Black Cow we have the mantra “something useful to someone, sooner”. It’s essentially about partnership-oriented iterative delivery. Satya Nadella of Microsoft put it quite nicely: “set and repeatedly meet short-term goals”. The central idea of any Agile development practice is that we don’t know what we’re going to eventually need, so expect change and collaborate to deliver for the biggest difference to the business now. Think vertical slices rather than layers: do some of it fully rather than lots of it partially. Everything flows much more easily in our projects once our partners understand that it’s ultimately about delivering to their imminent business need. For me, the most important aspect is the partnership – all parties are delivering this project. We’re not trying to ruin your day by telling you that it can’t all be done; we’re trying to help you plan! Choose the compromises before they choose themselves.

 

Can you give a few real-world examples of what these approaches look like?

So, it’s good to have a plan but make every effort to base your plans on what can actually be achieved now rather than what you ultimately want to achieve. Then you need to recognise that plans always change. It’s important to tackle small enough chunks to allow yourself a better chance of success by predictably delivering, then delivering to the imminent business need. And be sensible about what that need is. To determine this, look to solve today’s problems and not the problems you might have tomorrow (unless that is in itself today’s problem). Recognise that there will always be compromises.

Think progress and not perfection. Success comes from delivering as consistently as both sides can manage and seeking to optimise at all times. Adjust the process based on the progress you are making. Don’t believe anyone who tells you they will deliver on time – they are only saying this and can’t guarantee it. This includes the customer providing material to the software developer such as specifications and responses – this is also a form of delivery.

Finally, always treat timescale requirements with suspicion. You must ask if time really is of the essence or whether it is just a desire to get something done as quickly as possible. A real deadline means the project fails completely if it’s missed. This is usually not the case.

 

What do operators and suppliers need to look for in a software development partner? And what should the working relationship between both parties look like?

Working effectively and with the right software provider is mission-critical. The supplier and the customer need to deliver, support and commit to each other. There are no sides here, this is a partnership of equals. It’s a relationship that works best when the customer keeps the supplier focused on the requirements and the supplier keeps the customer focused on what’s technically possible. In this way both parties converge on a solution and are equally committed to the shared goal. “I’m the customer and this is what I want” doesn’t get software delivered. A more intelligent approach is needed.

Software projects are highly complex interactions between several parties with requirements that change on the fly. Projects also continue well after delivery – it’s never about providing a fixed bunch of requirements as a package and then you’re done. That’s why we ensure we take the customer on the journey with us, acting as a true partnership. This is why non-software businesses should engage good software experts for their software projects, allowing both sides to get on with what they do best and allowing the project to succeed.

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