As the industry looks ahead to the coming year, experts are sharing insights on the opportunities and challenges that lie ahead. This article features insights from four prominent figures specializing in technology and innovation.
The interviews include Mohit Kansal, partner at Clairvest; Nikos Konstakis, VP of sportsbook at SG Digital; Cristina Turbatu, head of the innovation lab and marketplace at Playtech; and Mattias Wedar, chief product and technology officer at LeoVegas. In previous segments, discussions covered various industry sectors such as igaming operators, land-based operators, finance experts, and marketing professionals.
Reflecting on the transformative events of 2020, Kansal pointed out that alongside the Covid-19 pandemic, there was a significant shift in global regulation trends. The pandemic has accelerated the expansion in some markets like North America while driving pull-backs in others, such as Sweden. Moreover, last year saw a bustling mergers and acquisitions landscape with major movements such as Stars/Flutter merging to form the largest online gaming company, Entain emerging from GVC, and William Hill splitting its US and non-US operations. Kansal emphasized that this consolidation is significantly altering the market.
Konstakis noted that sports betting has become integral to the broader entertainment sector. During lockdowns, many turned to sports betting as a new form of entertainment, highlighting a shift from traditional platforms like Netflix and Spotify to betting activities. He observed that the pandemic placed the customer experience at the forefront and that trends toward digitalization and enhanced user-friendliness will persist into the future.
From Turbatu's perspective, the challenges of 2020 spurred companies to pivot toward online services and cloud operations for greater efficiency. The focus on player engagement and safety has intensified, with organizations employing machine learning to better attract customers and identify at-risk players. Gamification efforts have also increased, especially appealing to Generation Y, who are accustomed to interactive experiences.
Wedar remarked on the dramatic acceleration of digitization in entertainment as physical activities were curtailed. This change means consumers now expect high-quality, personalized entertainment experiences from various brands, whether it be Netflix, LeoVegas, or YouTube. While the pandemic has posed challenges, it has also led to some beneficial long-term changes.
When discussing potential game-changers for the industry in the coming year, Kansal predicted a significant transformation in land-based casinos as they reopen, with cashless payment systems gaining prominence.
Konstakis underscored the critical role of content for operators, asserting that the demand for innovative betting options will continue to grow. He indicated that the industry's ability to recreate and enhance customer experiences will be paramount.
Turabtu saw artificial intelligence as a major conversational point for 2021, with applications ranging from automation to security measures designed to enhance player protection.
Wedar shared that the identity of places like Las Vegas is evolving beyond just gaming to encompass a broader entertainment offering. He noted that the gambling sector must recognize its role within the entertainment industry, necessitating new products and engagement strategies.
On potential disruptions, Kansal pointed out that heavier regulatory scrutiny could impede progress. Konstakis further noted that recent regulatory changes across key markets require operators to adapt promptly, particularly as new states in the U.S. roll out their own sports betting regulations. The combined impact of regulatory hurdles and new market entrants is creating challenges that could stifle innovation.
Turbatu warned that immersive realities and virtual reality tools could disrupt traditional formats, especially as consumers seek alternative ways to engage with sports and gaming during continued restrictions. She also pointed to the growing threat of cyberattacks as a factor that could hinder progress.
Wedar stressed the importance of responsive regulation and highlighted the potential adverse effects of populist regulations that may stifle industry growth.
Regarding the industry’s emphasis on technology improvement in 2021, Kansal expressed confidence that investment in technology and product development will accelerate. With increased focus on online operations and marketing dollars flowing into the industry, companies are eager to differentiate themselves rather than rely solely on marketing.
Konstakis noted that the pandemic shifted the industry’s technological priorities, prompting creativity in addressing challenges. Going forward, a balanced focus on scaling operations while fostering innovation will be crucial for the industry.
Turbatu reiterated that the current global challenges present opportunities for technological advancement, suggesting that this is a crucial time to reinvent the online gaming sector. Wedar concluded that future product enhancements will focus on improving user journeys and retention, a key challenge for the industry as it seeks to keep customers returning.
