The leading hedge fund manager attributed his change in perspective to the growing trend of riskier betting options and the subsequent boost to operators’ margins. A steady stream of innovations from US operators has enabled them to reach broader demographics and improve customer onboarding and retention. New wagering options, often originating from daily fantasy offerings, also contributed to these trends.

New Ways to Wager Can Bolster Profitability

Jim Chanos noted a significant rise in riskier forms of betting during the 2022-2023 National Football League season, prompting a reassessment of the industry’s potential. The seasoned investor previously secured a substantial profit on shorting DraftKings stock, so his shifting sentiment surprised many of his peers. However, Chanos is confident in his new assessment.

The betting numbers have continued to be strong in the US, stronger than we thought they’d be.

Jim Chanos

During an interview for the Financial Times, he explained the reasoning behind his shifting perspective, highlighting the resounding success of new and engaging betting options as the industry slowly pivots away from traditional pre-game wagers. These new offerings usually offer significantly higher margins than the standard 5%, causing operator profitability to skyrocket.

Chanos also highlighted the emergence of a duopoly in the US betting market, primarily controlled by FanDuel and DraftKings, dominating the industry’s landscape. While promising newcomers like ESPN Bet and Fanatics have certainly made a splash, the market leaders have also stepped up their game, attempting to mitigate the outflow of customers via new promotions and offerings.

Market Leaders Remain at the Forefront

DraftKings, one of the leading betting platforms, reported its first profitable quarter in the second quarter of this year and is poised for a full-year profit in 2024. The operator’s share price has reflected this positive trajectory, more than tripling this year to $35.35. CEO Jason Robins expressed confidence in the company’s market position, lauding its product excellence.

DraftKings’ new Progressive Parlay product perfectly highlights Chanos’ point, mirroring the style and functionality of fantasy gaming offerings. This new way to wager enables bettors to build parlay cards and potentially win money even if some bets lose. DraftKings’ ability to swiftly recognize and adapt to industry trends has been one of the leading factors for its unparalleled success, bolstering investor confidence.

The shift in Chanos’ perspective underscores the evolving dynamics in the US gambling sector as operators explore innovative betting options and capitalize on the rising appetite for riskier wagers among American bettors. The fact that the investor did not name any concrete promising stocks could indicate his confidence in the sector as a whole, boding well for the industry’s future.

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Another important interview resonated in the industry after iGaming veteran, Jean-Pierre Houareau, CEO at Live Solutions, spoke with iGB and explained how AI affects the online gambling industry and what changes this modern technology could bring.

With the modernization of the world came the modernization of this form of entertainment.

Introducing AI into this form of entertainment will take the player iGaming experience to a completely new level, allowing for another era of change to begin.

Modernization of Online Gambling!

With the modern world bringing great changes, introducing AI into their products allows companies to deliver freshness and engagement.

Live Solutions,a reputable B2B brand in the industy, has added AI presenters to its casino games.

“Our AI presenters are a new initiative to work alongside our live hosts. They will manage the game action and keep players informed just like a live host would.” he said.

This iGaming veteran also highlighted the importance of this novelty, which increases the closeness between operators and players thanks to the fact that the messages are personalized.

“AI presenters offer huge benefits as they give operators the ability to communicate with their players,” he explains. “AI presenters can target a particular player and give them a specific message. For example, a player can be reminded during a game that they need to provide KYC documentation to the operator.”

What to Expect?

Utilizing AI presenters enables operators to focus better on their players’ requirements, given that AI can leverage automation. Houareau explains that AI presenters provide continuous support to players, operating 24/7. This becomes especially beneficial for players in varying time zones and with diverse language preferences.

For individuals who aren’t enticed by the personalized aspects, the anonymity of the AI presenter might be appealing.

“Interacting with an AI presenter can provide a level of privacy and anonymity that some players may prefer,” he continues. “AI presenters can make decisions based solely on objective rules and algorithms, which can enhance transparency and fairness.”

However, one of the key questions is, can AI outperform humans? Houareau thinks that AI can bring many benefits!

“AI presenters don’t require training,” he says. “Once developed and deployed, they can handle numerous interactions simultaneously.”

He also stated that this innovative technology can “handle a high volume of transactions without the limitations of human resources.”

More Players Than Ever

According to this expert, AI will give casinos the chance to welcome more players than ever before!

But can these rights be threatened? This veteran believes that there will be no problems as long as the companies have an agreement with the ambassadors on the use of their images.

“Using an AI presenter that closely resembles or imitates a celebrity without their permission could potentially infringe upon these rights, so we would always insist that the proper release clauses are in place before developing a bespoke AI presenter.”

Future-Oriented!

Although AI has experienced great success so far, like everything else, this technology continues to develop and we can certainly see even more improvement in the future!

“Some of the future enhancements that we are looking into include enhancing the realism of the AI presenter to provide a more immersive gambling experience, which could involve improving facial expressions, body language and voice modulation to create a more human-like interaction,” Houareau reveals.

In addition to enhancing its designs, Live Solutions is also exploring the integration of responsible gambling elements into AI presenter technology. This aims to aid in the detection of indications related to problematic gambling or overly risky behavior.

Possible inclusions encompass setting time and expenditure boundaries, personalized suggestions for intervals, and even furnishing assistance resources – all conveyed through AI presenters in a human-like manner.

No matter how AI presenters may evolve, Houareau envisions that the boundless potential and expansiveness of AI will present increasingly greater opportunities as technology advances.

“The possibilities are endless and we are excited to be part of the AI evolution.”

In the end, AI will certainly bring changes in all segments of the industry, and even more interesting games, thrilling adventures, and an increase in player experience are expected.

Source:

”Incorporating AI into live casino”. iGaming Business. August 17, 2023.

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Earlier this week, lawmakers in Spain approved the “Royal Decree on Responsible Gambling Environments,” a new regulation of the gambling sector that enforces tough restrictions in an effort to protect customers and especially young adults.

Supported by Alberto Garzón, the Minister of Consumer Affairs in Spain, the new Decree enforces tough regulation for the sector, implementing advertising restrictions and demanding operators to comply with guidelines that seek to protect the public from at-risk gambling as well as gambling harm.

The New Decree Seeks to Identify At-Risk Gambling

One of the major changes within the new regulation involves customers aged 18 to 25 years old, an age group also referred to as young adults. Per the new Decree in Spain, the gambling regulators would be obligated to monitor the activities of those customers, collecting data involving their betting habits that would help build a “risk profile” for each of those clients.

If a customer within that age group passes specific thresholds for at-risk gambling or shows signs of gambling harm, the operators would need to contact them. Such triggers can be changes in gambling behavior involving accumulation of losses, frequent deposits and others.

Licensed gambling operators would engage with such users, warning them that a potentially harmful gambling pattern is detected. Individuals that are identified as “at-risk gamblers” due to an increase in money spent on gambling or losses would not be allowed to use credit cards under the new Decree.

Compliance with the Decree Is Mandatory

As with any regulated gambling market, licensed operators in Spain need to adhere to the new regulations. In the event of breaches, the Ministry of Consumption would engage in heavy fines that can go up to €50 million ($53.1 million). In severe or cases involving repeated violations, regulatory sanctions such as license suspension or license revocation may be imposed as well.

Besides engaging with the customers, gambling operators in the country would be restricted from targeting young adults with bonus offers or VIP incentives. Such advertising won’t be allowed for that age group. On the other hand, young adults that haven’t registered with gambling operators would not be subject to advertising by gambling companies.

The new restrictions are expected to be implemented within the next six months, yet a solid date is yet to be confirmed. Some restrictions may take longer to implement primarily due to technological changes.

The new decree reaffirms Spain’s innovative and robust approach toward tackling gambling harm. Some of the changes closely resemble the active regulation currently in place for the Netherlands, another European gambling market that is focused on protecting consumers and ensuring they engage in gambling activities responsibly.

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The leading UK casino operator that is a part of Rank Group, Grosvenor Casinos, has announced the launch of its Live Casino Studio. The strategic launch comes at a time when the company plans further growth in the online sector. At the same time, Grosvenor taps into the live casino segment that has been gradually gaining popularity.

The announcement comes after many major operators have already witnessed the potential of the live casino offering and successfully introduced it to their customers. Bringing live casino offering, Grosvenor seeks to deliver unique and engaging experiences for its growing online customer base.

Grosvenor Casinos’ head of gaming commercial, Spyros Kanakis, shared his excitement about the latest announcement, acknowledging that as a major player in the market in the UK, the company continuously expands and updates its offering. This helps Grosvenor engage with new audiences and at the same time ensures the retention of existing customers.

“As the largest casino operator in the UK, we’re on a mission to broaden casino gaming’s appeal to a new generation of players.“

Spyros Kanakis, head of gaming commercial at Grosvenor Casinos

Kanakis added that the company has identified that players are interested in engaging in immersive experiences which is a prime reason why it decided to develop the Live Casino Studio. According to him, through its live casino offering, Grosvenor will leverage its extensive industry experience and deliver engaging experiences for its online customers.

The company’s head of gaming commercial added that the live casino offering is hosted by Grosvenor dealers with significant experience. At the same time, Kanakis pointed out that online customers will be able to experience engaging, immersive experiences and dive into a unique atmosphere.

“Customers will be able to enjoy the unique atmosphere of our best in venue casino games but online where they will feel close to the action, able to play anytime, from anywhere,“

added Kanakis

Grosvenor pointed out that its Live Casino Studio offers five blackjack, as well as two roulette tables, making a total of seven immersive online gaming tables. The launch was facilitated via a collaboration with Evo Casino and sees the company deliver live casino entertainment 24 hours a day, seven days a week. As noted, a team of seasoned dealers will lead the live casino offering and according to Grosvenor, that team consists of 50 members.

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