Simon Hammon, a representative of a well-known provider Relax Gaming, talks about how the future of the slot industry may be influenced by stringent rules and cutting-edge products.
Regulatory Measures
Limitations and new laws may set a business on the route to becoming a sphere name. However, the slot sector as a whole confronts a bunch of new headwinds.
Gambling authorities progressively restrict such gaming elements as:
- functions;
- stake limits;
- spin speed, etc.
The biggest players in the industry face the toughest difficulty. Highly regulated markets are becoming less alluring to studios. According to Mr Hammon, there are very few providers who can manage the volume of legislative implementations.
Distributors will thus be more selective in the producers they collaborate with and inclined to choose those that can do the hardest work to prevent compliance difficulties. Then, European authorities will require more limitations in spin speed, alerts, betting limits, etc. In the end, the development processes themselves will change.
Impact of Governmental Actions
The expert continues that regulations will have a significant influence on game design. The internal structure of entertainment products nowadays is completely different from what they were 3 or even 2 years ago.
Mr Hammon believes that industry leaders should not sugarcoat the situation. Many suppliers are expanding into other markets since the European one is becoming much more competitive and there is not so much money involved. To get less demanding, simpler revenue, operators are aiming for new markets.
Illicit Operations
There is growing interest in grey or even black markets among some operators and suppliers. Several individuals in both industries are nearly «brazen» in how they describe growth in these areas as a huge success.
Even companies with strict regulations in the US boast about their performance in markets like Asia. This, as Mr Hammon concedes, «begs some questions,» although it may lower stock prices or assessments.
There may be more opportunities for providers to focus on both white and grey markets. Authorities frequently overlook the supply side in favour of the point of use or the distributors. However, such times are passing as legislators recognise the worth that B2B firms provide to the industrial value chain.
The topic of regulated markets and their ability to both eliminate competition and generate long-term sustainable income was heavily debated years ago.
According to Mr Hammon, regulators' changes are being put to the test as requirements and tax costs rise and the actual ROI sets in. The expert claimed he has never seen as many news releases about businesses quitting their licences.
Relax’s Strategy
Instead of seeking expansion across regions, Relax seems to be concentrating on the regulated areas, specifically a market-by-market strategy.
According to Mr Hammon, choosing which possibilities to pursue depends on a variety of criteria:
- the complexity of the market entry;
- quality and quantity of business opportunities;
- presence of successful local operators, etc.
The rollouts in Spain, Italy, and Ontario were influenced by these. The expert emphasises the need to be pragmatic and determine the viability of each market before entering it.
He continues that the developer's goals are pretty simple and obvious:
- good financial potential;
- easy operation.
Industry Development Drivers
Microgaming launched the first digital game in 1994, since then the slot sector has likely only had 2 turning points that significantly altered the market:
- country-specific regulation;
- mobile gambling.
Mr Hammon acknowledges that people look to him for motivation and inspiration. Instead, he contends that in the following 3−4 years, economic viability will be the driving factor behind reforms.
It will come down to the foundations of ROI if the shifting of brands, volume, and perception are talked about.
Economic Issue
The market is seeing intense rivalry as new companies compete for consumers. This severe situation is exacerbated by cost increases and tighter regulations, as well as broader macroeconomic factors. The industry will keep an eye on the ones who stay afloat and how their businesses turn out.
The financial aspect of the sphere may not be as trendy as multiplayer slots, but for Mr Hammon, it is the most fascinating. A company will not survive if it is unaware of the hazards involved.
It refers to the problem of the content amount released onto the market each month, which makes it more difficult to stand out. The expert says that the economic issue will be asked. Soon, it will arise for many brands, which will alter the market dynamic.
Methods to Refresh the Sector
Mr Hammon acknowledges that the sphere is seeming staid in certain areas despite the flood of change that hit it. According to the expert, the importance of industry media is being «watered down» a little and award shows are losing significance due to their number.
The representative wants to see a new generation of business experts enter the market, upending the traditional pattern of executives switching companies. Mr Hammon believes that many job applicants make claims to have certain knowledge when, in fact, they lack the necessary training.
The specialist considers that rather than just promoting individuals from the inside, it is more dynamic and natural to find enough enthusiastic, experienced people from different niches. He hopes to have more competitors who are driven by passion and professionalism in the market.
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