iGaming Business magazine Sports Betting Focus 2017 | Page 9

Sports Betting Focus 2017
THE VIRTUAL WAY TO
FORGE NEW FRONTIERS
While virtual sports are doing well in developed markets, they are doing
even better in some emerging regions, says Kiron Interactive’s CEO
Steven Spartinos. But operators must tailor their offerings carefully as
one size does not fi t all.
operators, rapid results and the huge range
of betting options mean time constraints and
dead periods of play are no longer a concern.
One size does not fi t all
When it comes to working across a patchwork
of dot.com and individually regulated markets,
operators are not only faced with technical, tax
and compliance hurdles, but also the challenge
of localising and differentiating their product
and content to fi t the landscape in question.
With more and more newly regulated
markets growing at an incredible rate of
knots, particularly in South America and
Africa, it’s up to suppliers to ensure they
offer a perfectly tailored package to ensure
success in unfamiliar markets, while
safeguarding margins and profi tability.
And while a fi fth of retail revenues in
developed markets is an impressive enough
fi gure, market share in emerging and newly
regulated jurisdictions can be even larger
thanks to a range of differentials, whether
it be age, technology or the popularity of
certain sports.
Africa is one such example, incorporating
a number of emerging markets that have
embraced virtual sports primarily due to their
youthful and sports mad populations. The
continent has an estimated 200 million people
aged between 15 and 24 and a sports betting
“The rise of virtual sports over the past 10-15
years has been nothing short of remarkable.
Gone are the days where virtual offerings
only had application as fi ller content”
Using virtuals to crack emerging markets
The rise of virtual sports over the past 10-15
years has been nothing short of remarkable.
Gone are the days where virtual offerings only
had application as fi ller content, used to fi ll
gaps in between racing from Carlisle or at half
time of a big Premier League game.
Now operators use innovative and tailored
content to thrive in an otherwise saturated
market, offering virtual sports such as horse
racing, dog racing, football, motor racing
and basketball.
In fact, new and improved virtual offerings
now sit side by side with live sports and fi xed
odds betting terminals up and down high
streets, accounting for between 10% and 20%
of over the counter revenues with that number
expected to keep rising as innovation continues.
market worth more than US$4 billion annually.
It’s a market playing catch-up compared
with most mature gambling markets, but it’s
also a continent which poses a unique set
of challenges, whether it be access to
broadband internet connectivity or access
to live sports content.
As a football mad continent, the inability
to watch players such as Cristiano Ronaldo,
Lionel Messi and Zlatan Ibrahimovic on
a regular and cost-effi cient basis must be
frustrating. But virtual football offers a
convincing alternative as punters look to feed
their love for the game.
Cutting edge graphics and improved CGI
technologies equal to that of the latest games
console offerings give players the chance to
immerse themselves in their chosen sport. For
While virtual sports are on the rise around the
world, it’s important to remember that one size
does not fi t all. Populations in Africa and Latin
America may be receptive to virtual football,
but virtual speed skating, trotting or ice hockey
are unlikely to go down quite as well.
By tailoring and localising offerings to suit
a specifi c market, operators can ensure they
remain profi table even if they are relatively
new to the market. Advances in technology
also allow suppliers to offer localised products
thanks to fl exible and confi gurable game
setup and playout options. Operators can
create their own offering to suit their operating
requirements and players’ demands, and in so
doing maximise revenues and profi tability.
Fail-safe virtual offerings such as football,
horse racing and dog racing are always going
to prove popular, but it’s the addition of other
localised content that will differentiate their
product mix versus their competition and
keep customers coming back for more.
Technology will continue to come on in leaps
and bounds over the next few years and with it
virtual sports will evolve. Those operators that
don’t take virtuals seriously are not only losing
a signifi cant revenue opportunity but in an
increasingly competitive sports betting market
that moves quickly, they are also likely
to be the ones left behind.
Steven Spartinos is co-founder
and co-CEO of virtual games
provider Kiron Interactive.
Established in 2001, the specialist
supplier now services web, mobile,
and land-based sportsbook and casino
operators on fi ve continents. Prior to joining the
betting and gaming industry, Steven worked in
banking and fi nance.
iGamingBusiness | Issue 105 | July/August 2017 | 69