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VIEWPOINT
CAN FACEBOOK HELP REVITALISE ONLINE POKER?
Dominik Kofert, CEO, Poker Strategy
One of the biggest challenges of offering real-money poker on Facebook will be satisfying customers. To entice to the real-money poker audience, software, customer services and integrity need to be as good as they are in classical poker applications and customers need to be convinced of this. Alternatively, operators could try and emulate the more funbased Zynga poker in order to compete in the free-to-play virtual items category. It remains to be seen whether traditional gaming companies – with huge cost structures – could make a model work where the average value per customer is extremely low. For most affiliates, real-money poker on Facebook is more of a threat than an opportunity. Being on Facebook, customer acquisition becomes very easy and due to Facebook's viral nature, almost automatic. Thus, a key function that affiliates usually perform becomes less important. On the other hand, the key to be successful in a social network is monetising customers once they have been acquired. Unfortunately, this is something that most affiliates are not good at. Finally, real money gambling on Facebook could drastically reduce the industry's reliability on SEO and thus harm those affiliates that focus on it. To benefit from real-money poker on Facebook, an affiliate would need to make sure that it had an enticing presence on the site. For this, great content and great customer service will be key. Content and service-based sites provide much-needed news and strategy advice that the poker audience demands and, on Facebook, the natural virality generated by this will be enhanced further.
$450M ONTARIO EGAMING CONTRACT OPEN FOR BIDS
? Deal estimated to be worth up to CA$75m in pro?t to the eventual supplier
North biggest America’s
egaming contract outside the US is open to bids and is thought to be worth up to CA$75m in pro?t to the supplier. The Ontario Lottery and Gaming Corporation (OLG), which offers lottery products and operates casinos, slot parlours and bingo halls in the most populous province in Canada, released a Request for Proposal (RFP) on 9 December to ?nd a supplier for its online gaming operation. The OLG last year announced its intention to offer an online option, noting Ontarians spend around CA$400m a year on offshore gaming sites. OLG is initially seeking a gaming platform provider with casino games to allow it to launch with an online casino and lottery product. The successful bidder will supply a player account management system, casino games, ?nancial processing and customer service as well as integrate into the OLG’s lottery system to allow players to buy tickets online. The initial contract period is thought to be ?ve years.
The RFP states that OLG’s best estimate of
of casino products, launch of mobile gaming products and an integration of the online and offline CRM systems. Under Canadian law, OLG must still retain the “control and manage” function of the online gambling operation but can work with a partner (or a consortium) to deliver the online gambling platform.
The Canadian province of British Columbia launched North America’s ?rst government-run online casino in July 2010. UK gaming software provider Openbet provides the platform for PlayNow.com operated by the British Columbia Lottery Corporation (BCLC) on the government’s behalf, allowing residents of the province to play games including blackjack, roulette and craps. In February 2010, PlayNow joined LotoQuébec on the GTECH G2-powered Canadian Poker Network, allowing residents of British Columbia and Québec to play poker against each other online. Among those expected to respond to the RFP are OpenBet, GTech, Dragon?sh, bwin.party, Intralot, Camelot and SciPlay (the joint venture between Scienti?c Games and Playtech). It is expected that existing suppliers to OLG’s land-based business such as IGT and Bally would join consortiums to leverage their expertise of OLG’s existing business. There will be ?erce competition to win the OLG contract because of its status as the largest province in Canada. Any company that wins OLG’s online operation is likely to be in pole position to supply to state lotteries and other governmentcontrolled entities when the US online market regulates in the coming years. It is estimated that the successful vendor could make as much as $75m pro?t from the contract over the course of its lifetime. Responses to the RFP must be returned to OLG by 3 February. ?
the current Ontario egaming market puts total annual revenues between $425m and $450m. It expects this to grow over the next ?ve years, “driven by internet penetration, growing consumer trust in transacting online, increased acceptance of gaming by the Ontario population and improved acceptance of ?nancial transactions relating to gaming by Canadian banks”. The proposal adds that the lottery plans to launch online bingo, poker and sports betting in a second development phase as well as enhance its lottery product. A third development phase will see an expansion
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