power affiliates

60 Pages·2015·12.38 MB·English

POWER
AFFILIATES
THE 2015 LIST REVEALED
TOP AFFILIATES FROM ALL FOUR VERTICALS PROFILED
(cid:134)
EXCLUSIVE INTERVIEWS WITH LEADING AFFILIATE CEOS
(cid:134)
PLUS
GAMESYS
IN PROFILE
WHAT DOES THE
UK OPERATOR
DO NEXT?
T H E
R E B I R T H
O F R A N K
HOW A NEW-LOOK LEADERSHIP
TEAM HOPES TO FINALLY
UNLOCK RANK’S POTENTIAL

FEATURE / BIG DATA
ISSUE
131IS1S18UE
EDITORIAL TEAM
Editor
Tom Washington
T: [phone]
E: [email protected]
News editor
Gerard Starkey
T: [phone]
E: [email protected]
Reporter
Andy Roocroft
T: [phone]
E: [email protected]
Head of Content, Pageant Gaming Media
Alun Bowden
T: [phone]
E: [email protected]
PRODUCTION
Head of production
Claudia Honerjager
E: [email protected]
Art Director, eGR
Toni Giddings
E: [email protected]
Sub-editors
Eleanor Stanley EDITOR'S LETTER
Luke Tuchscherer
Mary Cooch
COMMERCIAL
Group commercial manager
Sam Compagnoni
T: [phone]
E: [email protected] W
Publishing account manager
ho would be the boss of an egaming companies fared on p20.
Debbie Robson
T: [phone] egaming company? One week The prospect of sleepless nights
E: [email protected] it’s political and regulatory clearly didn’t put off new Ladbrokes
turmoil, the next it’s sporting CEO Jim Mullen – appointed on the
Publishing account manager
Charlie Robson results causing you to reach for the day this magazine went to press
T: [phone] whiskey bottle. – taking on one of the biggest
E: [email protected]
At the start of the month several jobs in the sector. The former Hills
Group head of content bosses of major fi rms had already man wasn’t necessarily top of the
Gwyn Roberts bemoaned some of the “worst-ever” outsiders’ list of candidates but
weekends in terms of football pay- his online nous, and experience in
CEO
Charlie Kerr outs in the weeks since Christmas. driving a Playtech-powered egaming
And just a week or two later and business, is unquestionable.
Circulation manager
the Cheltenham Festival delivered All eyes will be on what Mullen does
Fay Muddle
another a hefty blow as favourite after next, but there’s another relatively
Content sales favourite romped home. unfancied gaming brand quietly
T: [phone]
Days later, the UK Government undergoing a revival. Rank Group’s
E: [email protected]
had bookies rocking on their heels online business hit a patch of stunted
as it confi rmed its licensed operators growth in 2014 but having appointed
are likely to face a more expensive two talented and ambitious leaders
model of funding for the horseracing in the form of Henry Birch and Colin
industry. It's not what you would call Cole-Johnson, the fi rm is defi nitely
an easy ride. one to watch. Read our interview with
But the good news is that, for the the pair on p38.
most part, external and uncontrollable
factors don’t appear to be getting in EDITOR
the way of serious growth at egaming Tom Washington
eGaming Review is published monthly by Pageant Media, operators across Europe. Last month’s
Thavies Inn House, 3-4 Holborn Circus, London, EC1N 2HA announcements of full-year results
ISSN 1742-2450 showed a sector in rude health. And
Printed by The Manson Group © 2015 all rights reserved. No
part of this publication may be reproduced or used without you can read more about how William T: [phone]
the prior permission from the publisher Hill, Paddy Power and the other big E: [email protected]
WWW.EGRMAGAZINE.COM 3
MORE
LIVE STREAMING
MORE
IN-PLAY MARKETS
A WORLD OF
OPPORTUNITIES
Enjoy gambling responsibly. www.gambleaware.co.uk 18+
FEATURE / BIG DATA
CONTENTS
ISSUE
131
EXPERT OPINION
putting Rank’s online arm back
NG 17 Gambling addiction therapist on the path to growth with a
THE BRIEFI Lbpiirzno gKbolae romtpe reg reaaxmtpoblralsiin ncgsa nwa mdhaoot nt ogon cwlionomem beant sefi pxrmopra tfin snsbaioollonyk iln iav ntehd ue ip np ttipeore niltiasn tepio.o Cntaealnn t tiahle?
19 Christina Thakor-Rankin on how
44 PROFILE:
a Ladbrokes revival might benefi t
William Hill and why the egaming GAMESYS COO LEE FENTON
industry needs fi erce rivalries Having sold its leading brands to
Intertain, what does Gamesys do
8 Q&A NEWS ANALYSIS
(cid:88)(cid:3) next? The operator’s COO tells
32Red CEO Ed Ware shares his 20 BEHIND THE NUMBERS Martyn Hannah its B2B division and
perspective on PoC strategies Betfair shines in recent results Virgin Gaming brand have a very
announcements but there is work to bright future, and why it’s betting on
11 THE BIG DEBATE
(cid:88)(cid:3) do for Paddy Power as growth slows the regulated US market
Will fantasy sports betting take
24 POWER AFFILIATES 48 SPONSORED EDITORIAL
off in Europe?
Find out which companies have Featuring OpenBet and NetEnt
14 IN THE CITY
(cid:88)(cid:3) made it onto EGR’s annual list of
66 ONE MORE THING
A round-up of key egaming share the most powerful affi liates in the
price movements from the past month egaming industry Realistic Games’ commercial director
Andy Harris argues that a lack of
38 COVER FEATURE
industry collaboration is holding
PROFILE: RISING THROUGH back progress in product innovation
THE RANKS and says old rivals need to learn
A new-look management team is to work together
24
44
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/ THE BRIEFING / NEWS
G
MONTHLY NEWS N
I
F
E
I
R
B
E
H
T
NEWS VIEWS INSIGHT OPINION DEBATE
\ \ \ \ \ \ APRIL
THTEH MATO WNATHS
GOOD MONTH
William Hill reported a 20% YoY rise in
digital profi ts for 2014 after strong double-
digit revenue growth in its sports betting
and gaming arms
BAD MONTH
Bwin.party’s 6% fall in full-year
revenues and profi ts saw its market
cap drop to a third of its pre-merger
valuation in 2010
QUOTE OF THE MONTH
“We are fi rmly opposed to a horserace IN THE DRIVING SEAT
betting right and believe the proposal Betfair’s Q3 results left analysts purring as it reported double-digit growth in profi ts (17%) and
revenues (20%), while new TV ads for its fast mobile betting service also caught the eye. The ‘Tap,
is fundamentally fl awed”
Tap, Boom’ campaign features horse-driven rally cars and the operator’s recent performance –
RGA chief exec Clive Hawkswood
including a 50% YoY increase in active customers – puts it back in the race for UK market share.
WWW.EGRMAGAZINE.COM 7
NEWS /THE BRIEFING /
Q
ED
&
A WARE
EUROPE
CEO 32RED UPDATE
Q
We are a few months into on both mobile and desktop. We EGAMING UPDATES BY COUNTRY
2015 now, how will you are the most prolific sponsors of
approach the remainder of the horseracing in the UK, we do bits
year? and pieces around football and
A IRELAND
We will be looking to continue I’d like to think we have a chance
our growth in marketing spend of being competitive on a modest Ireland’s online betting tax, which
both as a percentage and as an scale. Whether or not we take the is expected to hit the industry
actual cash figure. I can see after step and do more of the expensive for €25m, will come into force
later this year after the much
the first quarter we might even marketing such as TV has not been
delayed legislative bill cleared
take the view that we want to go decided yet.
its final parliamentary hurdle.
a little further and accelerate our
The Betting (Amendment) Bill
Q
marketing investment growth. How has the cross selling of 2013 will clear the path for the
It’s not a certainty but I can sports customers to casino introduction of ‘1%’ turnover
definitely see a scenario when we been going? Is it something you tax, mirroring the rate currently
conclude others are reining back on are still perfecting? levied in Ireland’s in high-street
marketing spend and presenting us A It is still early doors although betting shops. The final stage
with an opportunity. We’ll see. activity levels have been before implementation will be
for operators to apply for an
satisfactory. The Holy Grail of cross
Q operating licence from Ireland’s
The vast majority of 32Red’s selling sports customers into
authorities, a process which is
business is derived from casino gaming is not something
expected to be concluded by
the UK. What is the scale of its we have cracked yet but we the end of the summer. Paddy
international ambitions? are focused on the journey and Power is expected to be hit
A
We will continue to invest in recruiting the right type of player hardest by the new tax, having
Italy as planned along with in the first instance. estimated it would have cost
some smaller plans elsewhere in approximately €8m if in place
Europe. We’ve never done anything Q Has there been any last year.
structured on the other side of the noticeable change in
world such as some of the Asian the competitive landscape
territories – we are reviewing following the introduction of
that. I believe we’ve got a brand PoC? GERMANY
A
that would naturally have traction We recently reported 35% Germany’s federal government has
there and would be assisted by our growth for January and been asked to block Deutsche
heritage in Premier League Football February over the same period Telekom’s controversial plan to
activity. Ideally we would take a last year. We suspect that less launch a sportsbook using an
local partner as I think going round choice in the market for the player Austrian egaming licence. Former
the other side of the world can be a since December coupled with our state-owned Deutsche Telekom
challenge without local knowledge. increased spend are responsible. recently announced it had acquired
a 64% stake in Austrian operator
However, the UK remains our However it is still too early to be
Deustche Sportwetten and
priority. firm on how the UK market will
planned to launch a Germany-
shape up going forwards.
Q facing brand called tipp3 using
How has the Kambi- the DSW’s Austrian licence. But
Q
powered sportsbook been The market anticipates Deutsche Lotto and Totoblock
performing thus far? further consolidation – is managing directors Michael
A
The UK casino market is this something you’d expect to Burkert and Peter Jacoby said the
competitive enough, but it is see 32Red active in? telecommunications giant’s planned
nothing like as fierce as the betting A As ever, should something the move showed a lack of respect
for German law and accused the
market so we are keeping our right size and shape come into
company of playing a “trick with
aspirations in check. We now have view then we would be active at
Germany’s regulations”.
a nice looking product – we’ve the right price. Our organic growth
gone from something that was rate and the potential the business
barely keeping up with the pack to has means we are not compelled to
something that is fit for purpose get involved in M&A activity.
8 WWW.EGRMAGAZINE.COM
/ THE BRIEFING / NEWS
SWEDEN SWEDEN
Apple removed gambling apps
belonging to a dozen major
egaming firms from its
Sweden-facing App Store
in early March after the
Swedish Gambling Authority
(Lotteriinspektionen) sent
Apple what it described
as an “informative letter”.
But a spokesperson for the
regulator was keen to stress
that no formal complaint
had been made and that
the decision to pull the apps
IRELAND
was entirely Apple’s. It is
not yet known whether the
removal is on a permanent
or temporary basis but
operators are believed
to be communicating
with Apple and the
regulator via industry
body the Association of
Online Gambling Operators
in Sweden.
N
W E
S
GERMANY
ITALY ITALY
Italy’s online tax regime looks
set to be overhauled with
the country’s government
proposing a new law that
would see all verticals taxed
at the same rate of gross
gaming revenue (GGR). A
blanket 20% GGR tax across
all verticals would mean the
NETHERLANDS likes of bingo, sports betting
NETHERLANDS and poker tournament
The Netherland’s protracted journey towards egaming regulation is not expected to face further games would all be moved
delays despite the recent resignation of State Secretary for Security and Justice Fred Teeven, a from their current turnover-
driving force behind the policy changes. Teeven stepped down from his role in March after his part based regimes. According to
in a drug trafficking scandal came to light. However Peter-Paul de Goeij, director at Lottovate, figures seen by eGR, Italy’s
said that although Teeven was “quite instrumental and gave the gambling reform the attention it online gambling market
deserves”, he did do not see why his departure would have any negative effect on the ongoing grew marginally last year
reform. “In the end, the gambling market reform still is stated cabinet policy and the cabinet is not with GGR up from €726m in
changing,” de Goeij told eGaming Review.  2013 to €729m in 2014. 
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