EveryMatrix has taken a completely different approach to other suppliers in the gambling industry by creating a modular model. Has Ebbe and his team cracked it as rivals are moving away from vertical integration?
Ebbe is the co-founder of EveryMatrix and also one of their many CEOs. He says, “We are nine.” I and eight other people.”
Groes is the group’s CEO and he sits at its head. He was in charge when EveryMatrix had a centralized platform.
EveryMatrix is no longer a single operating unit. It now operates as an array of separate business units. It includes everything, from core casino to verticals like live dealer or lottery. Each one has its own P&L, infrastructure and growth stage.
Groes, and other CEOs who have adopted this approach, can now offer vertically integrated products that others failed to create. Vertical integration was often used in gaming to create a unit that had multiple products, but they were not integrated well. If, for instance, an online casino was having trouble, then the unit that is specific to a channel would be dragging down its performance.
Groes’ approach to EveryMatrix lets businesses sink or swim independently. EveryMatrix allows them to operate and sell on their own, but if a BU doesn’t perform, it can be killed by EveryMatrix. This is all done without affecting other units.
“It nearly killed us”
Groes believes that this unique modular model allows EveryMatrix the freedom to create a variety of vertically-specific companies. This is partly because the process of creating a vertical-specific business can be difficult.
In order to restructure EveryMatrix using this vertically-integrated model, it was necessary to have two separate businesses. The first was responsible for developing the infrastructure of the new model and the second, servicing existing customers.
Groes: “It’s really not easy.”
You have to make sure they are happy and run two teams. He explains that one team is responsible for servicing old products and platforms, ensuring you make money while keeping clients happy.
You’re also building something new. “It was a very complex and dangerous situation.”
The reward came soon after the completion of the renovation: EveryMatrix was signed as Tier-1 by Norsk Tipping. Groes recalls that “this was of course the whole ambition and it’s very satisfying.”
How to structure a decentralised EveryMatrix enterprise
Groes said that “signature wins”, such as Norsk Tipping, are proof of the work and investment put into different BUs. EveryMatrix Chief Operating Officer Alina Alexandru believes that the individual teams are able to build toward these deals in a very autonomous way.
They own their product, and their people are dedicated to delivering on their roadmap. This eliminates the lengthy decision-making process you would have to go through with a typical IT organization or software provider. Resources are scarcer in this area because the CTO is responsible for everything.
She explains that flexibility is built-in, which gaming companies need. We have to adapt quickly. “We have to change plans quickly.”
This means that we must be adaptable and flexible, as well as able to change quickly. This organisational structure allows us to achieve that, Alexandru says.
What role can a COO of a large group play within a company with several management teams? She says that the group COO acts as a point of contact between different business units.
Although each unit is autonomous and has resources to work independently, Alexandru, and key executives of the group, like Tim Walls the chief technology officer, collaborate across all functions. Alexandru is responsible for overseeing the project management process and managing projects.
She is the main point of contact for all projects involving different BUs. This allows her to facilitate the strategic goals of Groes and help him achieve more signature victories.
TippmixPro – Sportsbook’s Signature Win?
EveryMatrix’s casino and game offering is probably the best-known product of this supplier. From 2018 forward, the sportsbook was completely rebuilt. The Tier-1 agreements for TippmixPro, the Hungarian lottery’s TippmixPro product and Betclic Everest Group Bet-at home from last year provide similar validation to the Norsk Tipping deal in 2016.
Ivan Rozic, head of OddsMatrix’s sales department, is responsible for building the customer base and promoting a refreshed product. OddsMatrix, a new sportsbook provider that is challenging the existing providers of the industry, aims to “be disruptive and provide something nobody else can offer,” says Rozic.
Rozic is looking for partnerships of the type TippmixPro. We’re seeking long-term partnerships, commitments that last a long time, and relationships in which we can work together.
OddsMatrix has the luxury of not jumping on every opportunity, says he. He cites high-profile wins for clients and its technology offerings.
The decentralised organisation means that Rozic is in charge of a highly-educated sales team.
He says that with other companies, they might only have one salesperson covering the entire product line, and this can lead to conversations in which you may not have all the answers. I get feedback from the companies we talk to. Some of these become partners and some don’t. Everyone claims to be very satisfied with their conversations with our sales staff because they get answers immediately.
He says that under the BU model, the sales team becomes product experts to better understand the client and their partnership needs, as well as whether OddsMatrix is a good fit. This is going to be the driving force for us, to know from both sides whether this project is something we are both interested in, and will bring value to both parties.
A concerted push into lottery
EveryMatrix’s signature sports and casino wins were made by lottery operators, making this vertical the natural business unit for NextMatrix to develop. Nikolina Gabelica, who joined in January as the head of lottery, reflects this approach to building around experts.
Gabelica has been a lottery expert for many years. Gabelica has worked for more than 20 year at Croatian national lottery Hrvatska Lutrija, in various positions including head of igaming and deputy director. Most recently he was director of marketing and business development.
She says that her B2C expertise gives her a better understanding of the client’s needs, which helps to set strategic directions for LotteryMatrix. When you’re a B2B-only provider, and don’t understand client operations and features, it is difficult to know what the needs are.
Groes believes that a solid grounding within the vertical is crucial. LotteryMatrix, according to Groes, could be a threat to big names in the industry such as IGT or Scientific Games. He says, “I might have been overconfident after a good year. But we can clearly see that this industry is not exposed to enough competition.” This is very clear. It is clear that the number of operators in this industry does not allow for newcomers to be attracted.
It’s not until we reach our current size can we realistically claim that we are capable of taking on such a project.
Being unique at EveryMatrix
There is more pressure in a more traditional sector, where the marketing of products has not advanced as much, to create something exciting, modern and unique. This would be similar to what a casino operator does. He says that “[Lotteries] don’t keep up.” They know it very well, they are not fools.
Unfortunately, they don’t even have products to allow them compete.
The decentralised structure of EveryMatrix is again at play. Casino’s strong performance provided financial resources to fund the project. This also led to the client lottery wins, such as Norsk Tipping or Veikkaus. Then we thought, “if I’m able to handle six or five lotteries why not go for the main product?”
EveryMatrix continues to grow and evolve. The success of a product becomes the new growth driver. The business can shut down what fails with minimal damage.
The conventional wisdom suggests that vertical integration should be stopped due to its challenges. EveryMatrix has created a plan for dealing with this type of complexity.
