We spoke with Daniel Eskola, Head of Research & Development at Relax Gaming who walked us through some of the company’s main considerations when designing jackpot titles. Eskola tracks the historic changes in the vertical and its reputational gains over the years, as well as Relax’s own part in the vibrant jackpot ecosystem. Read our conversation with Eskola here.

Q: How have player preferences changed in recent years with regard to jackpots?

Looking at the development of new mechanics and innovations compared to standard slots, there’s definitely been less focus on jackpots and new ideas. As a result, players have not had as much on offer when it comes to offering a fresh jackpot experience. From the supply side, we’ve seen a notable shift from infrequently dropping, life-changing wins, to far more frequent, daily-dropping jackpots. However, aside from that, up until now not much has changed.

With that in mind, our Dream Drop innovation fulfilled exactly what the modern player is looking for in a jackpot – combining those smaller more regular wins with the possibility of being in with a chance of life-changing Mega win as well. Given that we’ve merged the two, operators can expect to see a great deal of traffic with the jackpot, particularly when it’s hot. So far, we’ve seen two players hit the Mega Jackpot worth €997,779.17 and then €924,386.51. Player interest and recognition of the product are set to increase exponentially as a result, and we’re very excited about the months ahead.  

Q: Are jackpots an evergreen safe bet, or are players likely to become underwhelmed if the mechanic doesn’t see more innovation?

The key factor to consider is whether or not players are having the best possible experience for the money they’ve deposited. With this in mind, jackpot games need to offer a high level of entertainment, excitement and a sense of near wins.

Due to the nature of jackpot games with part of the players’ bets going into the jackpot pools, the risk is of course, that players may feel the deposited money does not last long enough, which is reducing the core component of the entertainment factor. If the base game and general mathematics profile aren’t up to scratch, then you’re just not going to be able to reach an optimal level of engagement and retention. Jackpots will always be an essential part of an operator’s offering as it carries with it the association of a that fantastic thrill of the big win – which means they can’t be ignored.

Q: How do modern jackpots compare with other tools operators have at their disposal in terms of the acquisition and retention of players?

There isn’t much that beats the message that you could be one win away from landing an astronomical sum!

At the end of the day, each player dreams of that big jackpot hit, as that’s what chance is all about. Utilising jackpots in a business’ CRM strategy is very powerful, but this needs to be done well or it will end up costing too much. Taking Dream Drop as an example for reactivating a lapsed database, compared to the use of some other classic tools on offer – such an exciting opportunity presents a far greater opportunity for uptake and success.

Advising the player that they could get 20 free spins if they log in – and informing them that Dream Dropis currently at €1.2m, with a guaranteed winner for someone currently ‘in’ the casino before it reaches €1.5m is a formidable combination. The win potential from normal slot games with low value is small and will not necessarily incentivise players to make the effort to log in for a small win. Change that message to winning a larger sum, and reactivation numbers go through the roof.

Q: Ultimately, if players enjoy their sessions more, their lifecycle will be longer. What innovations are being developed to make jackpots more exciting and enjoyable?

The key thing is offering players the feeling of “Oh, wow, I was close” and creating those moments of engagement-driving jackpot rounds. Big classic jackpots can easily feel too much of a grind with little in terms of anticipation and excitement. The game design here needs to be spot on to deliver the most entertaining feeling for the deposited cash. A sense of value for money is an essential ingredient in retaining players. 

This goes for both the game itself and the jackpot element – the modern player will not take to a subpar or mediocre game with a big jackpot attached to it. The combination of the two is what today’s players want from their slots experience.

Creating familiarity with Dream Drop over different games will be refreshing to players as well. We’re creating multiple games connected to the same jackpots, and each game will have a different way for players to enter and win each jackpot. Figuring out how to achieve this across different games will be extremely gratifying for players and will enhance cross-sell between the games.

Q: With the US regulating so rapidly, do you have any insight into how this demographic of players will respond to the most up-to-date jackpot offerings?

The US demographic is very familiar with jackpots both in the lottery sector with one of the jackpots being over one billion dollars and a frenzy from players across the country. Brick-and-mortar casinos have always had a large selection of jackpots and anyone walking around a casino will see jackpot amounts on many slots.

The land-based sector has previously been in the driving seat for mechanics, but the online sector is innovating at a much faster pace now. There’s an appetite for the right jackpot mechanics for both the US online and offline sector and this demographic feels completely right for this.

Developer of online live lottery, slots and instant games Superlotto Games has launched with GOAT Interactive, an established operator group that focuses on the African market. This will enable Superlotto Games to pursue regional growth by leveraging GOAT Interactive’s own brand standing, including popular options such as Premier Bet, which is largely seen as one of the flagship African operators in the continent.

Building on African Momentum

Superlotto’s own development track record is impressive. More importantly, the developer stands out by virtue of being able to deliver impressive engagement and retention metrics across its entire portfolio of titles. Among the first games to debut with GOAT Interactive is Football, a soccer-themed title, which is just part of Superlotto’s bespoke and customizable branding format for its titles.

The first title is picked aptly to coincide with the launch of the World Cup this year and it’s going to help make an immediate impression on the local market. Superlotto is also a trusted partner in the market, as it has received a BMM certification in South Africa and plans to expand across the entire region. Commenting on these recent developments, Superlotto Games CCO Milda Mikelioniene had this to say:

We are thrilled to bring our high-quality games to GOAT Interactive’s players in Africa. With a strong presence in 20 countries and a number of sites that live in the region, they represent the perfect partner for us to exhibit our next-level portfolio to an even wider audience.  

Superlotto Games CCO Milda Mikelioniene

Always on the Lookout for New Opportunities

Mikelioniene added that the quality of the games Superlotto manufactured was well-known in the industry and the added benefit of creating bespoke and tailored experiences was only another benefit for local partners and GOAT Interactive’s own brands.

The partnership was greeted by GOAT Interactive Director of Casino Karen Hope who said that the group is always on the lookout for top-performing games and suppliers, such as Superlotto Games:

We want to provide players in Africa with only the best the industry has to offer, and Superlotto’s attention to detail in the realm of games development is second to none.

GOAT Interactive Director of Casino Karen Hope

Superlotto already has developed more than 80 online games and it has been able to sign a number of global partnerships with prominent and regulated operators, guaranteeing the company’s own industry standing. Among the partners that Superlotto has supplied with its games are brands such as BtoBet, Parimatch, Slotegrator, Betsson Group, and many others.

The company is showing great US results and losses from its Macau operations yet again, but the general sentiment is still positive.

Q3 Results Tell Familiar Story

Wynn Resorts recently held an earnings call and the company’s financial results for the third quarter are out. Operating revenue was $889.7 million, which was down around 10% – or $104.9 million – when compared to 2021 when the third quarter results were $994.6 million for the same metric. Adjusted earnings were $173.5 million – up around 12% from the 3Q2021’s $154.6 million, so that’s a good sign.

Mostly the losses came from the company’s Macau operations, which scored a combined drop of $196.4 million – $106.1 million from Wynn Palace and the remaining $90.3 million from Wynn Macau. This is, again, when compared to 3Q2021. This loss was partially offset by Wynn’s Las Vegas and Encore Boston Harbor operations, which contributed with $68.4 million and $19.6 million, respectively.

Next is the net loss attributable to Wynn Resorts. It was sitting at $142.9 million for 3Q2022, which is a decrease of 14% from the comparable period in 2021 – it was $166.2 million then. The story is similar to the adjusted net loss attributable to Wynn Resorts, albeit to a lesser degree. It was cited at $135.4 million for the reported quarter – a decrease of around 4%.

Adjusted property EBITDA was reported at $173.5 million for Q3 2022. This is around a 12% increase compared to 3Q21’s $154.6 million. And, again, US businesses performed better, with a combined increase of $98.1 million. The total drop when compared to Q3 2021 was $75.8 million. However, this time Encore Boston Harbor was also on the list of operations with a decrease, $3.4 million coming from there, and the rest from the company’s Macau operations.

Macau Still Bottlenecking Progress

These are not the best financials a company could report during its earnings call, however, given the disparity between the company’s Macau operations and its US business, it could definitely be worse. So, the numbers tell a very optimistic story – if Macau recovers, the company’s operations there will be able to catch up to the rest of the business.

And, the company is doing everything that it can to facilitate that. It promptly submitted its re-tendering bid for a renewed concession in the special administrative region (SAR), and its Q3 results echoed the sentiment from the second quarter – US business soaring, Macau operations lagging heavily. This might be a negative trend for some but given that operators rarely have control over operating conditions outside the company, it at least brings predictability to the table.

Knowing that Macau’s recovery is the bottleneck at the moment also brings some comfort to investors, and the ones who can weather the storm do have a chance of being rewarded for it. That is, of course, if Macau manages to recover from the global pandemic any time soon.

In the meantime, the company has been pouring funds from its US business into the operation in Macau and giving out shares to compensate its employees for the reduction in pay, which resulted from the extremely severe operational conditions from earlier in the year.

Macau, to its credit, does seem to be making efforts to accelerate the process. Some changes were made in how operators who hold one of the new concessions should structure their business, and if the operational climate doesn’t worsen, there’s a very manageable gross gaming revenue target for 2023 – $16 billion. It’s the third time the SAR has set the same target and this is the very first when it actually seems attainable.

Image Source: Shutterstock.com

The American Gaming Association (AGA) released its Commercial Gaming Revenue Tracker to reveal that the commercial gaming industry in the US has set a new quarterly record in Q3 2022.

Growth across Key Gaming States

The new quarterly record of $15.17 billion in commercial gaming revenue was driven by quarterly highs reported in 16 out of the 33 commercial gaming states that were operational in 2021, including five of the six largest markets – Indiana, Michigan, Nevada, New York and Pennsylvania.

Commenting on the revenue tracker, AGA president and chief executive officer Bill Miller outlined that “high consumer demand continues to fuel” the industry and takes it to new highs despite the operational challenges that remain, convinced that the “sustained momentum in the face of broader economic volatility” is a sign of the gaming industry’s overall health and its optimistic outlook for the future.

Signs that the industry is on course to set a new quarterly record showed in AGA’s August commercial gaming revenue report when the industry body registered the 18^th consecutive month of year-over-year increases.

The third-quarter commercial revenue figure exceeded the previous record set in Q2 2022 of $14.81 billion by 2%, while year-over-year, it posted an increase of 8.8%. It also exceeded the growth rate of the broader US economy in Q3 2022 of 2.6%.

Breaking Down Revenue by Verticals

The largest chunk of the commercial revenue came from land-based slots and table games which accounted for a record $12.27 billion in revenue and posted an increase of 1.8% to the third quarter of 2021.

Percentage-wise, the biggest increase came from sports betting which generated $1.68 billion of the total commercial revenue and increased by 80.6% year-over-year driven by a high sportsbook win percentage and solid growth in existing markets.

Sports betting revenue also set a new quarterly revenue record in Q3 2022, while through September it has already reached an all-time year-to-date high of $4.78 billion and surpassed 2021’s full-year record of $4.34 billion.

The third vertical comprising the total commercial revenue, iGaming GGR, generated $1.21 billion and fell marginally short of also setting a new quarterly record but its year-to-date figure through September of $3.62 billion is positioning it within reach of setting a new record of full-year 2022 revenue and join the likes of table games and sports betting.

Through September, year-to-date total commercial gaming revenue stands at $35.94 billion, registering an increase of 8.1% to the respective figure in the previous comparable period.

The leading online gambling operator, Kindred Group, announced a new sponsorship agreement in Belgium and the Netherlands. Under the terms of the new deal, Kindred’s flagship brand, Unibet, was named the primary sponsor of Tour de Tietema, the famous Dutch cycling team.

Thanks to the deal, the company’s flagship brand was designated as the main sponsor of TDT-Unibet Cycling Team. The new collaboration applies to Belgium, as well as the Netherlands. Although currently, the team starts from a continental level, their plans are to achieve a ProTeam status soon.

What’s more, under the terms of the commercial partnership, the duo will collaborate to engage with sports enthusiasts and push them to start cycling. The latest deal also complements Unibet’s program called Unibet Impact, which was introduced for the Dutch market. The innovative program seeks to “foster a safer and more responsible online gambling industry,” according to the brand.

“We are delighted to have Unibet as our main sponsor. With Unibet, we have found a partner who has great confidence in our vision and supports us in our dream of turning the cycling world upside down with an innovative approach.“

Bas Tietema, founder of Tour de Tietema

Bas Tietema, the founder of Tour de Tietema, said that the team is excited to join forces with Unibet and select them as the main sponsor. He explained that Kindred’s flagship brand has a vision that coincides with Tour De Tietema. According to Tietema, the collaboration enables the team to keep its TDT brand identity which is something new for the cycling industry. Finally, the team’s founder said: “We are excited to start our journey with Unibet and for the future ahead.”

Lennart Kessels, Kindred Group’s general manager Netherlands, added that the company is excited to team up with the famous team. He said Kindred is honored to support the team and acknowledged their dedication to the sport. Kessels said that Unibet isn’t new to the cycling world, considering that in 2006 and 2007 the flagship brand sponsored a cycling team. Last but not least, he said: “We are therefore convinced that we can fuel the ambitions of this new cycling team.”

“We are extremely proud to work together with Tour de Tietema. Their dedication combined with their boldness to do things differently is a big inspiration. It’s an honor to help make their long-lived dream to start a cycling team a reality.“

Lennart Kessels, general manager, Netherlands at Kindred Group

The latest sponsorship agreement comes on the heels of another announcement by Kindred. The company recently teamed up with Gamban in France. The unique collaboration seeks to deliver the leading gambling-blocking software to Unibet users in the country. At the same time, the initiative boosts Kindred’s “Journey to Zero” initiative which is after eliminating the revenue from problem gambling.

Californian cardrooms can rest easy as locals prevented the controversial Proposition 26 from passing. Many feared that the measure would have given tribal casinos too much power.

Prop 26 May Have Hurt the Economy

Proposition 26’s goal was to amend local laws and provide tribal operators with the opportunity to hire private trial lawyers and replace the role of the attorney general. It is hardly surprising that the proposition quickly became the subject of controversy as many feared that tribal operators would have been able to abuse this power to put their competition out of business.

According to estimates, Proposition 26 endangered the livelihoods of more than 32,000 people and put wages totaling $1.6 billion at risk. Experts believe that the measure would have could have had a total economic impact of over $5.5 billion.

Commercial operators were unanimously opposed to the proposition. A united front of many organizations such as the California Contract Cities Association, Gateway Cities Council of Governments, AFSCME California, Disabled American Veterans, California Hispanic Chamber of Commerce and the Los Angeles County Business Federation banded against the tribal measure.

After several months of intense campaigning on both camps’ sides, the results are in. As it turns out, Californians were not in favor of Proposition 26.

The Opposition Triumphs

Press representatives of the opponents of the tribal measure said that it failed to fool the California voters. They proceeded to call the proposition a “massive expansion of gambling by five wealthy tribes” and added that the measure “included a poison pill” that would have stolen a huge market share from highly regulated cardrooms.

The opponents added that the measure would have jeopardized whole economies, putting tens of thousands of jobs at risk and damaging many communities. They are happy that the voters decisively struck proposition 26 down, realizing how bad it would have been for California.

Juan Garza, the executive director of California Cities for Self-Reliance Joint Powers Authority and a representative of the five cities where cardrooms fund vital services, said that he is proud that Californians chose to reject Proposition 26.

Prop 26 had a hidden poison pill that allows for unlimited lawsuits against cardrooms – a highly regulated industry that provides critical tax revenue for cities and jobs across California.

Juan Garza, exec director, California Cities for Self-Reliance Joint Powers Authority

Garza thanked all voters for voting against a proposition that, according to him, would have harmed thousands of people in the state.

The iGaming company offering cloud-based product and platform services, Gaming Innovation Group (GiG), released its third quarter revenue results. Announced Wednesday, the company outlined it has seen an increase in revenue and EBITDA in Q3.

Gaming Innovation Group Releases Q3 Revenue Report

GiG reported an all-time high revenue of €22.9 million ($23 million) in Q3. When compared to the result from the corresponding period in 2021, an increase of 35% is observed. Adjusted EBITDA in Q3 this year increased as well. The company’s latest report reveals that adjusted EBITDA hit €8.5 million ($8.5 million), marking a solid 47% increase when compared to the same period in 2021. Additionally, the adjusted EBITDA margin increased by 37% as well.

GiG Media’s revenues hit €15.1 million ($15.2 million) in Q3 this year, marking an all-time high record. This result marked a significant increase of 35% when compared to the same period in 2021. On the other hand, the company’s revenues from sportsbook and platform in Q3 increased by 36% to €7.8 million ($7.8 million).

“I am pleased with the development and performance of GiG over the third quarter. The business delivered another record quarter with revenue growth up 35% year-over-year.“

Richard Brown, CEO of GiG

Richard Brown, GiG’s CEO, acknowledged that he is pleased with the company’s results and performance for the third quarter. He added that Q3 this year marks another successful quarter for GiG with strong revenue growth year-over-year.

The Company Accomplished Multiple Achievements

Besides its latest financial results, GiG acknowledged it completed multiple strategic achievements during Q3 this year. The company outlined that it launched four brands during the third quarter. This increased GiG’s total number of live brands to 62 by the end of the quarter.

What’s more GiG’s platform and sportsbook increased its global presence significantly in Q3 this year by inking one agreement in North America, two in Latin America, as well as three in Europe. During the quarter GiG was granted a supplier license in Canada’s most populous province, Ontario. Consequently, the company revealed its plans to launch two brands within the market in Q4 this year.

Following Q3, GiG launched three brands. At the same time, the company strengthened its position within the growing LatAm market. “GiG Media reached an all-time high player intake in October 2022,” the company explained. More recently, earlier this week, GiG inked a deal with Spin Away, the leading online casino. The terms of the new collaboration saw the casino brand use GiG to launch its services for customers in Ontario.

Richard Kivel, chairman of Lotery.com’s board of directors, has handed in his resignation after trying to get the company’s finance under control in vain. In his resignation letter, Kivel listed the reasons for his departure.

Kivel cited the delayed arrival of the funding from Woodford Eurasia and the federal investigation into Lottery.com’s chief compliance officer, Dennis Ruggeri, as reasons for his leave. His time with the company has been fairly short, with him only joining a year ago.

When Lotter.com’s board members started leaving en masse, Kivel tried to remain calm and unite the rest of the team. However, in his letter, the chair admitted that the recent happenings have consistently prevented him from fulfilling his duties.

A Delayed Investment and a Federal Investigation

The aforementioned Woodford Eurasia deal from two months ago was a seemingly great opportunity to bring the company back on track. The company planned to invest about $2.5 million in Lottery.com, providing it with much-needed funding to reinvigorate its business. The lottery company was also to receive an additional $8.5 million loan against monies owed by financial services firm J. Streicher. Lastly, it was to receive an additional investment of up to $50 million at a later date.

According to Kivel, none of this money arrived. He accused Woodford Eurasia of making false promises that ended up damaging Lottery.com’s business.

The other problem that Kivel mentioned is the ongoing investigation of Dennis Ruggeri, Lottery.com’s chief compliance officer. Kivel said that the appointment of Ruggeri made him question Lottery.com’s leadership. He said that the company’s higher-ups have “put the company in serious jeopardy” and have hurt its ability to recover.

He concluded that his efforts to perform as a fiduciary and support the company’s business were “aggressively obstructed” by those aligned with the problematic investment groups.

Things Aren’t Looking Good for Lottery.com

The resignation of Kivel contributes to a future that doesn’t look rosy for Lottery.com. The company saw many of its valuable employees depart and also parted ways with Armanino LLP, its auditing firm.  

All this trouble began when federals found cases of incompliance amid Lottery.com’s leadership, which led to the discovery that the company’s cash holdings are $30 million lower than estimated.

Kivel isn’t the first board member to leave while claiming that the company is preventing its board from doing something about the existing problems. The situation even forced the company’s founder, Lawrence Anthony “Tony DiMatteo,“ to jump ship.

Image Source: Push Gaming