Mobile Gambling, Gaming and Lotteries Newsletter - Issue #3
Welcome!
In the latest bi-monthly newsletter from mformobile we bring you the very latest on the situation in North America regarding Mobile Gambling, inside knowledge on the Wild Jack Mobile Casino 'Major Millions' business model and up to the minute news from around the globe on the movers and shakers in the Mobile Gambling, Gaming and Lotteries space.
And don't forget you can meet all the major players and hear from the best in the industry at any one of the mformobile Mobile Gambling conferences around the world in North America (Canada), Asia (Hong Kong) and Europe (London). Visit www.mformobile.com/gambling for more details.
Finally, don't forget to forward this onto a friend, simply click here to forward this newsletter. Many thanks to the all those that signed up last time round, keep passing the message on!
Kind regards,
Mike Setters - mformobile - Director
The only way is up - driving business
from North American players
In North America (NA), at present, there are almost
1,500 land-based casinos, and close to a million
slot machines. But while the appetite for gambling
has never been greater, the legality of online
casinos and mobile gambling is still in question.
And this is why MforMobile is holding a must-attend
conference in Montréal on October 3 and 4, one
that promises to both inform and fascinate anyone
with a vested interest in the NA market. The
conference will look at how NA can follow the
lead already set in Europe and Asia, and will
also offer crucial insights into how operators,
investors and other mobile gambling-related
outfits can drive profit and draw players from
this emerging market.
In anticipation of the event, and exclusively
for this newsletter, industry insiders examine
the laws, scrutinise the logistics and offer
expert opinions on where they think the future
of mobile gambling is headed in (NA) today.
Opening up the debate is Marc Askensai, founder
and CEO of Toronto-based Wagerphone Inc., a
mobile gaming solutions provider. He believes
that, where mobile gambling in NA is concerned,
those within the industry have relied on innovation
and lateral thinking to circumvent many of the
hurdles that stand in the way of progress.
Says Marc: ‘Toronto is, and will most
likely continue to be, a hub for mobile gaming
solutions providers – just as it did for
online gaming several years ago. There aren’t
many operating out of States, mainly because
online and mobile gambling are blacklisted there.
In Canada, however, it’s more a kind of
“grey area”. There are still a lot
of murky legislation waters to navigate –
for example, you can’t host any gaming
servers out of Canada at all – but there’s
room to breathe. At the moment, most NA operators
are hosted offshore in places such as the Isle
of Man, Panama or the Caribbean. The reason
for this is that it’s the most straightforward
way for them to get around the legislation.’
In addition to the legal issues, Marc sees
the need for further technological and cultural
development in NA, too. And he believes that
this is just around the corner.
‘We’re still some way behind Europe,’
he says, ‘and that’s because the
hardware and general acceptance of gaming isn’t
up to speed yet. But we’ll catch up soon
and then there will be an explosion in mobile
gaming here.’
Clarifying the point, he adds: ‘Almost
every person in NA has cell phone right now
so the potential for growth is there. For us
the major challenge is how to go about getting
the applications content on to the handsets.
For that to happen, there needs to be more compliance
and uniformity among the carriers and hardware
providers, who also need to demonstrate a willingness
to work collectively with content providers.’
Hannah Morante, PR Manager for online and mobile
gaming operator, Slotland, takes a similar stance:
‘Of course, the legal situation in NA
affects the entire online gambling industry,’
she says, ‘and the legislation differs
both from state to state and on the federal
level. But we see the general technical issues
related to mobile phones, combined with the
acceptance of advanced mobile phone usage by
the general public, as a far more important
factor in the equation.’
Martin Owens, legal specialist in online and
interactive gaming law adds: ‘Of course
the most obvious application is sports betting,
since showing odds and results is pretty simple.
However, US federal law forbids any state or
tribe – except for Nevada – to legalise
sports betting, so that’s something that
needs to be addressed. Still, the lotteries
might take advantage of it, just as they have
done in the Netherlands.’
Martin also cites power of the land-based casinos
as a setback for online and mobile gambling
in NA, but emphasises that by using offshore
companies, operators are able to get around
this problem.
‘The land-based operators in NA have
invested enormous sums in licenses, facilities
and staff,’ he says, ‘and they have
no intention of sharing their hard-won clientele
with a rash of cyber-upstarts. But the door
is wide open to the offshore fraternity. In
addition, it’s important to remember that
what’s undetectable on a PC or laptop
is doubly so on a cell phone. It would be almost
impossible for the US government to monitor
and analyse the billions of calls that are made
each year? On top of that, there is no US Federal
law against simply making a bet. In short, I
think there’s a great deal of room for
growth in the mobile gambling market in NA.’
Troy Metz, managing partner at Robinson Communications
adds a different angle to the debate –
that of marketing and advertising provisions
for operators.
‘Culturally,’ he says, ‘there’s
a difference between the United States and Canada.
When looking for service provision, prospective
NA operators will experience less resistance
from advertising and marketing agencies in Canada
than they will in America. In Canada, there
is a greater willingness to find alternative
solutions, such as engaging in "free play"
advertising sites. In addition, Canadian companies
are more likely to engage in business with operators
whose offices are based overseas.’
So what then is the bigger picture for potential
operators that want to market and advertise
their services?
‘It’s very positive. The NA market
is ripe with advertising at various levels of
the media for a whole host of gambling types.
We’re even starting to see the bigger
operators challenge the restrictions with "for
play" advertising with the sponsorship
of different television programs and other media
campaigns. So my guess is that we’re very
close to a broad relaxing of the legal constraints
that exist right now.’
And what kind of player do you expect to see
as the market starts to develop…is there
a particular style of game that might be an
early leader?
‘I think that people will stick with
online games they are already familiar with,
such as Texas Hold'em Poker, Sports Books, and
Lotteries. And I think that, because players
will stay with them initially, they’ll
probably become the first winners in this market.
However, because most players have a short attention
span, games that are easy to enter and exit,
as well as ones that have instant pay features,
are going to be very attractive to new and existing
gamers.’
Clearly the NA market is poised for growth
and is therefore likely to draw a high number
of investors. What are the key points investors
should follow to gain a strong foothold in NA?
‘Getting the word out is vital,’
says Troy. ‘In NA people always look for
the best deal when deciding where to buy their
entertainment. By offering players a host of
value-added products, and backing it up with
excellent customer service, companies can find
themselves with a number of lucrative revenue
streams very quickly.
‘Investors should also take note that
NA players like a high number of gaming options,
but that these don’t have to be gambling-based.
Operators can draw revenue from both "for
play" and "free play" gamers.
In fact, this is a key model for us as a company
and, I suspect, for any outfit that has a "winning
edge" approach to market entry.’
With the current legal situation in the US
surrounding Betonsports and the debate raging
on as to how this will affect the industry the
jury is still out. What we can be sure of is
that there is an enormous amount of potential
in NA for Mobile Gambling with improving technology,
a potentially massive customer base and the
knock on effect from the online space we can
be sure of one thing; Mobile Gambling, Gaming
and Lotteries is here to stay in NA…and
the early movers will be definitely be taking
a large share of the pot!
All interviews carried out by Matthew Pigott
Public Relations on behalf of MforMobile
WJMC hit the Jackpot
In one of the most, exciting developments in
the mobile gambling market this year, Wild Jack
Mobile Casino launched Major Millions in March,
making it the first £1million mobile jackpot
casino game in the UK. The bold move has yet
to be matched by another operator and has solidified
WJMC as one of the leading names in the rapidly
expanding mobile gambling industry. In an exclusive
interview for mformobile newsletter, UK country
manager for WJMC, Simon Swanson, talks about
why the company decided to make the move, and
the benefits that have come out of it.
Says Simon: ‘We did it primarily because
nobody else had. And in our Lottery culture,
where overnight millionaires are made each week,
we thought it would be great to be the first
to offer the dream figure in the mobile gambling
sector. It’s a serious coup for us, because
it places the maximum thrill and excitement
of the world’s biggest casinos into the
palm of our players’ hands. It also pitches
us above our competitors, and thus attracts
more players. In addition, when those same players
log on to WJMC to take a look at Major Millions,
they get a chance to see what else there is
on offer.
‘It’s not just about people playing
for the £1million prize money,’
he says, clarifying the point. ‘While
Major Millions is certainly more than a mere
flag-waving exercise, there’s much more
to be found at WJMC: games such as Roulette,
Blackjack, Treasure Nile, Fruit Fiesta, Jacks
or Better and Scratch Card are all available
to new and existing players. And in June of
this year, we announced the UK availability
of Tomb Raider, which is the first branded “video
style” slot machine for mobile phones
in this country.’
Certainly it’s been a staggering year
for the company then. Not only has it set the
new benchmark in jackpot prize money, but it
has also managed to pull another industry first
from the hat by forging powerful links with
existing Hollywood brands – a great achievement
from a company still in the early stages of
growth. So, how has WJMC managed to come so
far so quickly?
‘Really WJMC is an extension of the successful
online entertainment and gambling website wildjack.com,
which has paid out around $900million in winnings
since it was set up in 1999,’ Says Simon.
‘WJMC, which itself launched just last
year, is among the first “fully functional”
mobile casinos to be launched on a wireless
platform.’
Importantly, although WJMC has its roots in
Wild Jack, the technology couldn’t be
more different. Powered by Spin3, in partnership
with Microgaming, the three companies have what
can be viewed as the perfect three-way marriage,
providing a rock solid mobile gaming platform
for the end user.
‘This partnership,’ says Simon,
‘combined with our excellent initiatives,
has established us as leaders in the market,
along with the likes of Century. The foundations
were there, and subsequently taking the plunge
with the £1million was a daring manoeuvre
that looks set to pay dividends.’
However, as with any iconic marketing gesture,
the banner must be flown high enough for everyone
to see. Does he think that playing such a strong
hand with Major Millions been matched by a healthy
player uptake?
‘I can’t give specific numbers,
for reasons of confidentiality,’ says
Simon, ‘but the player engagement has
definitely surpassed our initial expectations.
Yes, I’d say the move has had the desired
effect in terms of a measured response.’
And when it comes to future growth from this
point on, Simon is equally optimistic about
the mobile gambling industry as a whole.
‘It’s such a young area still,’
he says. ‘I think there’s a huge
amount of room for growth in the mobile market,
not least of all because practically everyone
owns a mobile phone and they keep it on them
all the time. A big push like Major Millions
will stand as a very big draw card and certainly
adds to our brand equity offering of innovative
and exciting games.’
And is it easy enough for anyone to play?
‘No, there are simple but strict measures
in place to weed out any underage or illegal
gaming. Players are verified with a simple credit
card check, and if there are any problems after
that, we can run further checks. As with any
system that relies on credit card payments there
can always be abuse, but we do everything to
ensure that WJMC is as safe, reliable and as
free from misdemeanour as possible.’
The Bottom Line
It was a busy couple of months for the Mobile
Gambling industry. Aside from announcement launching
the inaugural Mobile Gambling, Gaming and Lotteries
Summit in Montreal and the 2nd annual Mobile
Gambling Summit Asia in Hong Kong from mformobile
(www.mformobile.com/gambling), there was a host
of activity.
The biggest move came from Charles Cohen’s
Probability who were seeking admission onto
the Alternative Investment Market in a bid to
raise £4.1m. We await follow up on this
move.
Next up was the release of new figures on the
current and future state of the mobile gambling,
gaming and lotteries industry with a range of
predictions made, all of which support an extremely
positive outlook for the industry. Statistics
suggested that the industry will be have in
excess of $23bn bets placed by 2011 with Bruce
Gibson, author of the latest Juniper report
into Mobile Gambling stating: "There has
been a lot of hype about mobile gambling, but
the industry now seems to be taking a more realistic
view on how the market will develop.“.
Whitepapers and abstracts of reports can be
downloaded from www.mformobile.com/gambling.
In terms of deals done we saw announcements
from WPT Enterprises with 3G Scene, Gaming Corporation
with Vodafone UK, Phantom Fiber and Excapsa,
EGET with Fortuuna.ee, Spin3 linking up with
WooWorld and finally mfuse dealing with Interactive
Gaming Holdings.
Finally, The Hendon Mob launched a poker news
and entertainment service for mobile users.
If you have an interesting Mobile Gambling
case study, research report or controversial
views on the development of the Mobile Gambling
space then contact mformobile today at editor@mformobile.com.
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See you next Month
Michael Setters – editor@mformobile.com
Editor
Mobile Gambling Insight
mformobile
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