10
Part 2 : Leading by example : How European land-based operators have engaged with igaming Building an omnichannel future for European casinos
“ It ’ s a business unit with a separate channel manager , and we have the land-based industry . I ’ d say that pretty much describes the situation at the moment , especially the prepandemic situation .”
The separation of the business units is compounded by the ‘ licence plus ’ system , which is in operation in countries such as Switzerland .
This allows casinos to obtain an online licence should they choose to apply for one , further cementing an online gaming offering as distinct from an existing casino business .
The licence plus system , similar to the tethering requirements prevalent across US states , prompts casinos to find a partner in the online gaming industry and adapt their games for a particular market , rather than extending their land-based experience to the web .
“ The land-based casino industry has a big interest in the future to be allowed to engage with existing customer bases in the field of online gaming , but that ’ s a long-term development ,” Pamminger says .
“[ It needs ] a change of gaming law . There must be a way that land-based casinos can extend their offers into the online world – especially with their existing customer base .
“ A good thing for the customer would be if they had an online gaming product related to the casino they know . They know who we are , they know where we live , they can come to us with any problems , we are directly
“ The ones that took the risk like Bwin just did it , came to the market and established their product . Now we ’ ve seen many years of online gaming . But the land-based industry is only now getting involved in this business ”
HERMANN PAMMINGER , EUROPEAN CASINO ASSOCIATION
approachable . We will see what we can do and what the developments might be , and try and integrate more with the online gaming world .”
LAND-BASED INDUSTRY AT A DISADVANTAGE
Pamminger adds that amid the Covid-19 shutdown “ online gaming websites were winners ”.
“ This showed the land-based industry that they had to think about it . We want to be more sustainable and we also saw that our guests , who we value highly , were seeking alternatives for their gaming habit ,” he explains .
“ They made the step during the pandemic to engage in online gaming and maybe for some operators that have a land-based site and an online site , it may make absolute sense to make their land-based guests sign up with their online gaming website to make sure they don ’ t look to a different brand on the internet .”
The ongoing global pandemic has played a major part in the clamour for online gaming services , with customers having no choice but to turn to the digital version from home .
However , it could be argued that land-based casinos may be at a disadvantage when compared to strictly online casinos that have had a head start in the market .
Such a weakness could become a strength , however , as there ’ s already plenty of existing framework of how to run a successful online casino . Diligent brick-and-mortar operators have the opportunity to take note of what works well and tailor the framework to their specific situation .
“ The fact that we are not digital natives is a disadvantage , but you can see there ’ s an advantage as well : when you haven ’ t done it for a long period of time you have to listen to specialists and what the customer expectations are ,” Lassiaz says .
“ That ’ s exactly what we do because we don ’ t know it . We are on a learning curve – we are still listening a lot but of course it will not give us the experience of the player . We are gaining some time because we are learning from other people , including pure players ’ mistakes . We ’ re starting at a disadvantage but the fact is we are learning fast from other people ’ s experience .”
Building an omnichannel future for European casinos
18
Part 4: Storm clouds ahead: The European regulatory climate
Building an omnichannel future for European casinos
gambling to casinos in five-star hotels.
The municipalities benefit from a part review will allow some casinos (those
of that tax levied on gambling in their whose licences were issued under the
area. Bratislava is now left trying to plug old 1968 Gaming Act) to be permitted
a hole in its annual budget. to offer more slot machines. The current
The city government of Riga, Latvia,
where slot arcades are ubiquitous has
limit is 20 machines per licence.
It would take a very brave minister
been trying to reduce the number of to announce, as part of a review, an
arcades and casinos (there is no real increase in the number of slot machines
legal distinction between the two), in casinos when most in the anti-
especially in the old part of the city. gambling lobby are expecting a further
Gambling is now confined to five-star clampdown on the industry. I can
hotels; when licences for gambling picture the newspaper headlines – and
venues that are not in five-star hotels they will not be about a job well done.
come up for renewal, the applications
are being declined.
Similarly, Spain, where the
The last two decades have seen
an enormous expansion in gambling
opportunities throughout most
competence for gambling regulation European countries. Online gambling
resides with the regional governments, has been legalised and regulated and
has seen an effort to close down some forms of land-based gambling
salas de juegos (slot arcades) by not have seen relaxations. But that
renewing their licences. Regions also expansion has come to a halt and we
want to control where the arcades are are seeing the industry contract.
located – not near schools or churches,
for example.
Italy and Spain have banned
It appears to me that it is the amount
of gambling that people see (in terms
of physical locations, sponsorships
gambling advertising and other and adverts) or hear (adverts) in their
countries are following suit. There is everyday lives that causes the anti-
pressure in many countries to stop gambling lobby to mobilise, and when
gambling companies from sponsoring they do they can do it very effectively.
sports teams. The upshot is that politicians and
In the UK, the Department of Culture
Media and Sport is undertaking a
review of the 2005 Gambling Act,
1-3 February 2022
ExCeL London, UK
Some operators are hopeful that the
regulators feel pressure that they need
to ‘do’ something about gambling.
Today, the pendulum is definitely
ostensibly in regard to online gambling. swinging back from expansion. The
However, there is a risk that it will spill question is where does it stop before it
over into the land-based sector, with swings back again? And what shape will
affordability, ID checks at the door and the industry be in when that happens? I
advertising likely to be scrutinised. am not wholly optimistic.
Building an omnichannel future for European casinos
ANDREW TOTTENHAM
is managing director of
Tottenham & Co, a business
consulting firm specialising
in strategic planning,
market assessments,
feasibility studies and
project development for
the international gambling
industry. Founded in 1986,
Tottenham & Co is one
of the most prestigious
management consulting
firms specialising in the
international gaming
industry. Clients include
blue-chip gaming operators
and suppliers such as
Caesars Entertainment,
Las Vegas Sands, MGM
Resorts International,
Groupe Lucien Barriere,
LEK, Rank plc, Sun
International, IGT, KPMG,
Deloitte & Touche and
Alchemy Partners. Andrew
has previously worked
in executive-and board-
level roles for the likes of
Caesars Entertainment and
JOA Groupe.
July 2021
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