INSURANCE
players the chance to win mega jackpots, for
ultimate stand-out and customer engagement.
The advantage of insurance is that it can be
used to cover jackpots for almost any game of
chance and even certain skill-related games. For
example we have insured jackpots for Lotteries,
Bingo, Poker, Slots, Roulette, Blackjack,
Keno, Scratch Card and Sports games and
promotions...illustrating why insurance plays a
key part in the future of online gaming.
Insured jackpots as part of a wider
campaign
Insured jackpot prizes are predominantly used as
part of wider promotional marketing, loyalty and
player reward campaigns in the online gaming
sector. The main objectives tend to be to give the
brand an edge over the competition and keep
players interested in and loyal to the brand.
Most existing promotions run by gaming
brands are pedestrian and add little value for
the player. Running a prize draw on your site
offering to give away one holiday to Las Vegas
will definitely attract some entries and yes, you
will get a winner – but it’s not very exciting and
won’t do much for player development, retention
or loyalty.
However, even big global consumer brands
use promotional marketing tactics such as the
free prize draw (the industry is unfortunately rife
with them!) but having analysed such mechanics
in the Promotional Marketing industry for the
last 30 years, we know how many entries these
tend to get, and therefore know they are not
doing much to enhance customers perception of
a brand.
With a bit of creativity and a similar budget,
a prize promotion with an insurance-backed
jackpot could offer players multiple chances
to win while at the same time creating a way
for brands to engage customers and build a
relationship.
Evolution in the industry
Back in 2000 PIMS-SCA took their experience
of working with big US gaming brands and
Sponsored by
integrated it with the online gaming industry.
It certainly wasn’t easy to get online gaming
companies to accept the principle of using
insurance to cover jackpots for both free-to-play
promotions and pay-to-play jackpot games –
despite the fact that it is now 16 years since we
paid out the first £1million prize from a purely
online lottery game.
Today however, there is a burgeoning
interest in jackpot insurance as astute operators
recognise the financial benefits that insurance
can bring.
The use of jackpot insurance to cover big prize
payouts is most prevalent in the secondary lottery
business. The majority of the big operators who
take bets on the outcome of national or state
lotteries and match the official payouts, are using
insurance in one form or another to cover their
exposure.
As well as transferring the risk of a big
payout to insurance underwriters, the other
big advantage is that it helps the operators to
maximise their margins.
So whether you are looking for a high value
jackpot to drive players online / into land-based
venues, or protection against the volatility of
occasional and unusually high exposures, PIMSSCA’s Prize Insurance minimises the financial
outlay and exposure from the start.
Contact:
Matt Butcher – PIMS-SCA
First Floor, Dudley House, 169 Piccadilly,
London, W1J 9EH
T: 020 7255 7900
E: [email protected]
www.pims-sca.com
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