In his recent column, Tom Waterhouse from Waterhouse VC delves into the burgeoning opportunity of crypto wagering and how operators can distinguish themselves in an intensely competitive landscape.

Waterhouse underscores the quote by Steve Jobs, stating, “Innovation is the ability to see change as an opportunity, not a threat.” He highlights that the wagering industry has historically led innovation in areas such as user experience (UX), marketing strategies, and payment solutions. Crypto operators, like Sportsbet.io and Stake.com, are exemplars in this space, boasting UX comparable to traditional fiat-based platforms such as FanDuel and DraftKings while pioneering advancements in marketing and payments.

Unprecedented Turnover and Market Impact

As of May 2022, Sportsbet.io reported a staggering turnover of US$2.7 billion per month, a figure that likely continues to grow. For context, in 2023, Australia’s largest operator averaged US$1 billion in monthly turnover, commanding approximately 45% of the national market share.

The Power of Micro-Influencers

Waterhouse notes the dominance of crypto wagering giants like Stake, which leverage influencer marketing through high-profile collaborations, including partnerships with celebrities like Drake. In contrast, emerging platforms such as Shuffle.com target micro-influencers with smaller yet fiercely dedicated followings of 1,000 to 10,000 engaged fans. This strategy proves cost-effective, as these influencers often yield higher returns per dollar spent compared to influencers with larger, less engaged audiences.

Shuffle: A New Player in Crypto Wagering

Launched in 2023, Shuffle has rapidly carved out a niche in the crypto wagering sector, facilitating over US$6 billion in bets to date. Led by Noah Dummett, whose expertise stems from roles in high-growth crypto exchanges like Bitmex, Shuffle aims to rival the scale and profitability of its exchange predecessors.

Strategic Growth and Marketing Initiatives

Shuffle’s approach includes strategic partnerships with Tier 1 sports teams and mainstream celebrities, akin to industry leaders like Stake. However, it initially focuses on securing high-return advertising deals before pursuing larger-scale endorsements. This meticulous strategy ensures optimal conversion rates for every marketing dollar spent.

Enhancing User Experience and Retention

Critical to Shuffle’s success is its commitment to user engagement and retention. The platform features a custom-built UI and proprietary games designed for speed and seamless navigation. Notably, Shuffle’s casino games boast industry-leading Return to Player (RTP) rates, with house games at 99% and slots at 97%.

The Role of B2B Suppliers in Innovation

Waterhouse VC emphasizes the importance of B2B suppliers in driving innovation within the wagering industry. By investing in these suppliers rather than direct-to-consumer operators, Waterhouse VC believes in fostering differentiation through superior product offerings and enhanced user experiences.

Market Penetration and Localization Strategies

New entrants in the wagering market can maximize success by focusing on niche markets devoid of dominant players, as demonstrated by Shuffle’s early success in Japan. Waterhouse advises leveraging local expertise and cultural alignment to optimize marketing strategies in diverse regions, such as newly regulated markets like Brazil.

Companies like Shuffle, Stake, and Sportsbet.io exemplify how innovation in product differentiation, marketing strategies, and user experience can propel rapid growth in the competitive wagering industry. By staying agile and attuned to market dynamics, these operators continue to shape the future of crypto wagering.

Source: “Waterhouse VC: Crypto wagering”, iGaming Business, June 18, 2024.

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At a recent meeting with Nevada regulators, Konami Group Chairman Higashio Kimihiko expressed confidence that the gaming industry has fully bounced back from the setbacks caused by the pandemic. Appearing before the Nevada Gaming Control Board (NGCB), Kimihiko underscored the industry’s robust recovery and outlined Konami’s role in adapting to post-pandemic challenges.

Konami’s Kimihiko Touts Company’s Strength at Nevada Regulator Hearing

Kimihiko, who has been at the helm of Konami since 2020, addressed the NGCB through an interpreter. He acknowledged the impact of the pandemic but emphasized that the market has regained its strength, reported CDC Gaming. He was last approved for licensing by Nevada regulators in 2013, and this recent appearance was part of a routine licensing process. The NGCB’s recommendation for approval will advance to the Nevada Gaming Commission for final consideration later this month.

In his discussion with NGCB Chairman Kirk Hendrick, Kimihiko supported the state’s efforts to accelerate the introduction of gaming products to the market. Hendrick highlighted the state’s commitment to aiding companies in swiftly delivering new technologies to customers, a sentiment that Kimihiko endorsed.

NGCB member George Assad praised Kimihiko’s impressive background, noting his progression within Konami from an engineering MBA graduate to his current leadership position.

NGCB Approves Caesars Entertainment’s CIO Rajendran Anbalagan

During the same meeting, the NGCB also reviewed and recommended the approval of Rajendran Anbalagan as the chief information and product transformation officer for Caesars Entertainment. Anbalagan, who took on this role 11 months ago, has a background in digital and technology roles, including a stint at Panera Bread as senior vice president.

Despite his limited experience in the gaming industry, Anbalagan described himself as a “computer geek” who is eager to tackle the challenges of his new position. He addressed the cybersecurity incident that Caesars experienced last fall, assuring the NGCB that the company has been proactive in strengthening its defenses. Anbalagan detailed how Caesars has increased collaboration with cybersecurity partners and hired a new chief information security officer to enhance their protective measures.

Hendrick echoed the importance of cybersecurity, noting that the NGCB itself faced a cyberattack in January. He emphasized the government’s commitment to safeguarding its systems and praised Anbalagan for his efforts to protect customer and employee information.

Anbalagan also touched on his role in product transformation, emphasizing the need for a seamless guest experience through advanced technology. Board member Brittnie Watkins commended his hands-on approach and looked forward to the innovations he would bring to the industry.

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With the ever-evolving landscape of regulatory requirements, businesses must increasingly rely on external tools to remain compliant with regulations and make informed decisions. VIXIO’s newest solution bolsters high-level decision-making, analyzing available data to improve planning efforts and highlight potentially hidden business opportunities.

The New Solution Answers Rising Market Challenges

VIXIO Regulatory Intelligence is a leading data provider for the gambling and payments industries, enabling businesses worldwide to navigate the increasingly complex modern regulatory challenges. The company’s forward-looking mindset drives it to constantly refine its platform and services to remain relevant despite rising global uncertainty.

The VIXIO Data Hub represents the company’s newest strategic planning and analysis portal. Live updates to relevant regulatory parameters will help partnering businesses remain compliant and better prepare for expansion into new jurisdictions. By consolidating relevant data into a user-friendly interface, the VIXIO Data Hub empowers companies with timely and accurate information critical to their strategic planning.

Global gambling companies can most benefit from this service, accessing over 400 data sets and 4 million data points from regulated markets. Proprietary forecasting tools allow users to generate accurate predictions, basing their growth strategies on up-to-date legislative or market developments. VIXIO’s team of leading analysts is also an expert at quickly identifying market trends, allowing operators to capitalize on potential opportunities before the competition.

Tightening Regulations Necessitate Enhanced Monitoring

Rapidly changing regulations can often catch operators unaware, resulting in potential breaches that can lead to significant fines and tarnish the company’s reputation. This problem is especially prevalent with companies operating in multiple jurisdictions, often sporting distinct regulatory challenges. Such a rapidly evolving landscape has caused many companies to seek third-party assistance, relying on professionals like VIXIO to track relevant changes and reveal new opportunities.

A recent GamblingNews interview with VIXIO senior gambling industry analyst Joe Ewens revealed the company’s stance on the upcoming UK white paper and the rising compliance burden on operators. He noted that such significant changes to a well-developed gaming market would undoubtedly cause local disturbances but were part of a worldwide push toward tightening regulations.

The reality is that all of the planned changes are just the latest developments in a story of tightening regulation over the past few years.

Joe Ewens, VIXIO senior gambling industry analyst

The VIXIO Data Hub’s launch marks an important milestone for regulatory intelligence solutions. Organizations can use this newest tool to ensure compliance and make informed decisions in a rapidly evolving regulatory landscape. The growing need for comprehensive data coverage and advanced analytics capabilities means more operators will gravitate towards such third-party solutions, enabling them to stay ahead of the curve and confidently achieve their objectives.

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