X X X X X S IX X X X X XI X X
OFF X DEGAM NG
S P O N S O R E D E D IIT O R IIA L
SPONSORED ED TOR AL
SLOTS
AFRICA FOCUS
Egaming development
Aristocrat- Thinking
outside
in Africa the box
Sam Nickless of Aristocrat
Many eyes in the egaming industry
are explains how one of the
fixed on US and Asian markets in
the leaders of the land-based internet
next year. However, with
slot world is taking its
penetration growing in Africa,
the premium games to aarange
region may present widely
of new channels, gaming.
untapped market for includingMatt
the of Offsidegaming discusses
Jellicoe online market.
the company’s strategy for the
African region in 2014
W
hen reviewing business development strategies for
2014 we witnessed most of the industry gearing
up for US and/or Asian expansion. However, at
Offsidegaming, our strategy for next year targets African
markets. The highly regulated US market presents high entry
barriers for a medium-sized software company. As for Asia,
there are companies making headway, but strong incumbent
operators prove for stiff competition.
At the outset this decision may seem strange, however we
have always focused on emerging markets and Africa looked
interesting on a number of fronts.
One consideration is the sheer size of the market. SubSaharan Africa has a current population of 1.1 billion and is
predicted to double by 2050. Even Nigeria alone is expected to
overtake the US population size in the next 30 years.
VICTOR CHANDLER
Sam Nickless is the Managing
Director of Emerging Businesses
& Strategy, responsible for
Matt Jellicoe is a director of
Aristocrat’s lotteries, online and
Offsidegaming. Offsidegaming licensing businesses. Sam
content
provides B2B gaming services to
joined Aristocrat in 2009 and was
a number of operators inpreviously at National Australia
Eastern
Europe and Latin America.
Bank and at McKinsey & Company.
www.egmagazine..com
www.egrmagazine.com
eGaming Review (eGR): market, technological limitations have held
Despite the size of the Tell us a little about Aristocrat’s emerging
businesses strategy? businesses including egaming from taking
back most internet
Sam Nicklessinto Africa. However, 2013 really saw this changeour
the plunge (SN): Our vision is to reach more players with with
game content by providing access throughstarting to take Aris-In
both desktop and mobile internet really new channels. off.
tocrat began example,years agopenetration is circa 15%well engiUganda for over 50 internet as a manufacturer of but mobile
neered, reliable, over 90% with a surprising number of smartphones.
penetration is secure and fair gaming machines. The hardware
was is estimated that 70% of a few years Africa will have internet
It crucial to this. Until only mobiles in ago, we manufactured
even basic components like nuts Nigeria is ourselves. Soon the way
access at some point in 2014. and bolts already well our business 50-60% smartphonethe sale of the game contentyou can box a
to was firmly based on penetration while in Kenya and the buy
assmartphone on the street fora land-based casino or club is only
a bundle. Now a terminal in about US$50.
one, Therefore, it is an enormous market in terms of headcount,
albeit important, way of accessing our content. We are now
lookingsmartphone get our quality content to players in whatever
with for ways to penetration approaching European levels. As
legal untapped market, to play. economics may be a barrier, the
an market they want although
margin potential is definitely there.
eGR: What opportunities does that present for deploying Aristocrat’s content in new arenas?
Regulation
SN: We believe Aristocrat has created some of the most distinctive
In terms of licensing, Africa offers a number of interesting
and entertainingin marketsgames in the world.and Ghana. South
opportunities gambling such as Uganda The success and
longevity of our most famous titles inathe majorof operators such
Africa has a licensing scheme with number casino markets
confirms this belief. It’s the combination of the mathematics and
as Sportingbet offering internet sports betting. Though the
the feel for the player experiencecompetitive,from ouris often cited
South African market is very that comes Kenya deep heritage in this industry. Playing Aristocrat is nonumber constrained
as an interesting market and does have a longer of operators,
toalthough it can place our terminals. Our initial traditional sports
where we is very complex to enter from a suite of games
has translated well to the online environment andlottery.
betting perspective, with models more akin to our free-to-play
apps on theisApple iStore have had rave reviews and plenty of
While it still too early to tell which markets we will go into, we
downloads. We are now Uganda, Ghana and Nigeria. a number
are currently looking at also licensing our content to
of land-based operators in markets we would be unlikely to enter
as a fully-fledged EGM manufacturer – for example, the 6