In a discussion with Jon Lancaster (vice president of sales – EMEA for SG Gaming), Simon Johnson (senior vice president and managing director – EMEA for SG Gaming) and Stewart Darkin (managing director of CasinoBeats), Stubley reflected on how adapting retail games for the online space can help ease a player’s transition into playing online. 

He explained: “Familiarity is really important, especially during these times. Operators are marketing to players from a traditional retail environment who are looking to continue their entertainment online. To do this, they’re marketing familiar games. Whether it’s Rainbow Riches in the UK or 88 Fortunes, which is our number one game across Europe, this really helps to drive that familiarity for players. 

“We’ve got 1000s of those games out in the market in retail – it’s part of a family of games. Online, we launched 88 Fortunes four years ago and it continues to increase in popularity with players. Throughout Europe, it’s our number one in Italy and Sweden, in the Netherlands, in Norway, in Greece, Austria, it’s number two in Germany, Spain, Finland, it’s such a popular game with players.”

Citing the example of SG Digital’s leading Jin Ji Bao Xi title, Stubley explained that to elevate the online player experience, it took the step to add features such as Megaways and jackpots.

“We do expand on the family,” he continued. “So we’ve got another game that was really successful in retail, Jin Ji Bao Xi which we’ve adapted for online. That’s coming out in a couple of months’ time, we’ve got Jin Ji Bao Xi with Megaways, that’s a familiarity in itself as well. 

“So combining those together is changing the gaming experience for the retail player – they come online with some familiarity, and then they move on through the family of games, then into pure online content which is what we see when we look at the data.”

When it comes to the land-based sector across the EMEA region, Lancaster disclosed that the last 12 months have posed some major challenges in terms of communicating with clients – eased somewhat by the ‘strength of relationships’ Scientific Games holds with its customers.

The VP of Sales noted that as restrictions begin to lift around the world, his job is to now understand what it is that clients want: “In our position, the customers have been closed and have not had a lot of clarity on when they will open,” he said. “Our job is to try and understand what it is they need and match our strategies and our products to their needs going forward.

“Many of our customers have had a fundamental shift in what they’re looking for going forward. Originally, they were looking to diversify their products and portfolios as well as attract new player demographics. But what many have now realised is that in the short term, they need to get back to basics, they need to bring back their top players, they need guaranteed products, which will deliver the best performance once they can open.

“So we’re definitely seeing a shift in what it is that customers are looking for. Thankfully for us, we believe we have exactly the right products which can help them to drive recovery.”

One way in which Scientific Games has gained insights into the products that its customers want was through the launch of a forum. This, shared Johnson, has helped the company to create highly specific solutions for customers which are tailored to individual regions.

“I think the most important thing that we will have to recognise is there’s no playbook for the situation that we’re in. That’s partly because it’s the experience of the pandemic, and experience of market conditions are intensely local,” he said.

“So when you’re working across a region as diverse as the one that John and I work in, you have to recognise that you’re looking at multiple different tracks, multiple different experiences, multiple different government responses, multiple different human experiences. 

“Whilst you can have a global position, you’ve got to make sure that your response is very local. So first and foremost, it’s around understanding the position on the ground, what individual customers are going through, and what their market conditions are. You then have to be able to create highly specific solutions or help them create highly specific solutions.”

Johnson then turned his attention towards the necessity of short-term, flexible planning – something which he believes is essential to continue operating over the next 12 to 18 months. 

He continued: “You also have to recognise that while much of the human condition is to look for certainty, we all find uncertainty extremely difficult. We look to people, whether it’s politicians or scientists to give us some reassurance when looking around the corner. There is no way that people can know what’s going to happen next. 

“We’ve got to recognise that uncertainty is bred into any consumer facing business. For the next 12 to 18 months, there’s just going to be a whole load of unanswered questions that we’re only going to come to as we experience them. This then means that business planning has to become short-term and highly flexible.

“You then end up in a situation where you start working through customers on an individual basis. We need to make sure that what we are presenting to our customers is flexible enough and reflects their local market needs – providing them with the support they need to manage uncertain times. 

“We know there are some consistent factors. People are trying to understand the point at which they can open up their businesses – and so they must make sure they can get COVID secure. so be able to share our experiences of the parts of the world.” 

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Over the years, developers have looked to produce or acquire slot gaming brands that would deliver longevity. Yet, in recent times, the most popular current slots are based more on original/exclusive titles.

Pressing the panellists on “overdoing” a branded IP, session moderator Jeremy Coleman, commercial director at RNG Foundry, asked where does brand extension become too much?

Markus Antl, head of sales and key account management at Greentube stressed suppliers have to be “very careful” when utilising a brand and, when a company decides to leverage this method it needs to be “sure about the mathematics”.

He continued: “If you don’t test the maths properly and just give the game out to players you risk damaging the brand long-term. Just copying the game and using the brand or mechanic will not be enough and you can see with a lot of copies of Book titles out there, not all of them are successful.   

“Reusing the brand by introducing new mechanics that are also proven already and testing the math model properly, that’s key.”

Echoing Marcus’ point, Rob Procter, content director at SG Gaming, commented: “We’ve been doing this for a long time when it comes to brands, whether it’s Rainbow Riches or 888 Fortunes or external IP games like Monopoly. We are very diligent when it comes to this. We don’t just throw these brands on our roadmap and hope they stick. There’s a careful plan that goes behind them and not to saturate the market but to give the players and operators the title that they can absorb and are asking for. 

“We could release another six Rainbow Riches games next year and the operators will be happy in the UK because they love it and it drives player volume and acquisition. But that’s not our state of mind or our play. We are very confident that we can’t be lazy when extending these big brands. New mechanics and maths models, but we have to be innovative at the same time whilst leveraging what you know and what the players trust. 

Moving forward, Coleman asked the panel if suppliers should be developing its own IP series and why iconic slot brands continue to stand the test of time. 

On that point, Procter noted that, from a data point of view, familiarity is a “huge driver for slot players” as they want to be familiar with either a brand, mechanic, theme or a character as it has a “strong pull to a player”.

He said: “From a player’s perspective, when you recognise something on a screen, it always pulls you in and makes you want to see what they’ve done new and if it’s something they’ve added to the brand. That’s a huge part of why these brands are so popular.”

Following on from Procter, Antl highlighted that all the big titles, such as Starburst, Bonanza, Gonzo’s Quest and Book of Ra, have one thing in common… “they all had an innovative game mechanic”.

“This combined with a good maths model, and a good marketing and promotion, made these games popular,” Antl explained.

“Some of them were also taking advantage of already being famous on land-based. Speaking on Book of Ra for example, we can see back then that it was the first time that Book was introduced to the audience and combined with the free spins mechanic and getting the player to hype this situation where they are just waiting for this symbol to appear made that game stick.   

“Now you can see in many markets all over the world, especially Germany, that players are still searching for the Book everywhere. In Germany, at the time we had to step out of the market, other suppliers were using the Book and are really famous with this version.”

The talk then inevitably turned to Big Time Gaming’s Megaways mechanic, where Coleman, after having a similar discussion with an industry friend, asked the panellists if Megaways is here to stay and what do suppliers need to do to keep the mechanic fresh and exciting. 

Antl pinpointed that the challenge with Megaways within the slot sector is to “not overdo it” and emphasised that the mechanic is “here to stay”.

“You can create loads of copies of Megaways and try to make it better but in the end, I think suppliers need to go back to where the game originated, the original mechanics and what made players stick to that game and take it from there again,” said Greentube’s head of sales and key account management.  

“Megaways for me is definitely going to stay, if you compare it to other titles mentioned before that introduced an innovative game mechanic, it’s still here. It’s just how we’re going to use certain mechanics and math models and attach it to Megaways.”

Responding to Coleman’s question on “is Megaways a fad” Procter was adamant that, unless the definition of fad was changed to last “two to three years” the industry “can’t call Megways a fad”.

He added: “It is undoubtedly here to stay and it’s now just become ingrained in the digital casino player’s minds. They know what Megaways is – again familiarity. It’s here to stay but there’s challenges on how to use it.   

“I think some suppliers are a little bit lazy, to a certain degree they’ll just use the Megaways branding and mechanic to get a bit of airtime. If that’s your strategy, that’s okay… but it won’t work in the long-term. The ones which are more successful are the ones that add a layer of innovation. 

The panel also discussed if game studios should be developing its own IPs, smaller studios competing with big B2B brands, familiarity with land-based titles online and looking into the future for a new innovative mechanic. 

The CasinoBeats Summit 2021 conference and exhibition on 14-15 July takes place in an innovative integrated live and digital format. A select audience of senior executives will attend in person at the InterContinental in St Julian’s, Malta, while a global audience of industry professionals will participate in the event online. 

The conference agenda focuses on the next generation of slots and products, key established and emerging markets around the world, leadership in igaming, and marketing and affiliation. The programme also includes the inaugural Game Developer Awards ceremony. 

Register for a free online pass for the event at the CasinoBeats Summit website.

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The event takes place on July 14-15, 2021 in an innovative integrated live and digital format, with a select group of senior executives attending in person at the InterContinental in St Julian’s, Malta and a global audience of industry professionals joining online.

Its core theme is igaming development, innovation and strategy, something that is reflected in the agenda for the Slots 2021 and Products & Innovation content tracks on the opening day. Both tracks are scheduled for the Summit’s live stage, but all sessions will also be broadcast online to digital attendees.

The Slots 2021 programme focuses on what studios can do to help operators broaden their audiences, how to develop successful games franchises, and strategies to improve player engagement. 

Delegates can look forward to sessions including ‘Game Selection: The Slots Operators Want’, ‘Diversifying the Slots Audience Through Design’, and ‘Slots: Mechanics, Megaways and More’. 

A selection of executives and product specialists will share insights and ideas on the slots landscape from the perspectives of operators and games developers, with Kasper Bach (head of casino, Twin), Simon Hammon (CPO, Relax Gaming), Helen Walton (CCO, Gluck Games), Rob Procter (content specialist director, SG Gaming), Stefania Mincu (CPO, Ellmount Group), and Philippe Joos (head of product & innovation, Napoleon Sports & Casino) among the speakers. 

In the second half of the day, attention will turn to how operators and developers can work more closely to improve UX, which game features have a viable future, and strategies for retaining creative talent in a competitive jobs market.

Individual sessions on the Products & Innovation track include ‘Slots: Managing the User Experience’, ‘Trigger Happy: Is There a Future for Feature Buy-In?’, and ‘Retaining and Retraining Talent’. 

The programme will feature another high-level speaker line-up, with Marie Theobald (chief people officer, Hero Gaming), Anthony Cabrera Boulet (head of gaming for LATAM, Entain), Stefania Curmi (head of HR, LeoVegas), George Olekszy (head of slots, Eyas Gaming), Beatrice Svensson (director of employee experience, Casumo), and Toni Kolehmainen (head of VIP, Wildz Casino) among those ready to share their expertise. 

Rasmus Sojmark, founder and CEO of Summit organiser SBC, said: “We’re delighted to welcome some of the key figures in the world of game development to CasinoBeats Summit and to provide a forum for them to share ideas and discuss how operators and studios can work together to the benefit of players.

“The innovations of the games development sector are crucial to the ongoing success of the igaming industry and it’ll be fascinating to learn about the next generation of products that will be entertaining slots and casino players in the coming years.”

TheCasinoBeats Summit conference agenda also includes the Key Markets, New Markets, Leadership, and Marketing & Affiliation tracks, along with the inaugural Game Developer Awards ceremony. 

Register for a free online pass for the event at the CasinoBeats Summit website.

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The introduction of the terminals cements the supplier’s commitment to navigating the industry as a whole through a tough regulatory landscape.

Simon Johnson, Group Commercial Director of SG Gaming UK, commented on the new deal: “We are proud to work closely with Ladbrokes Coral, and the large-scale roll-out of our Equinox terminals marks a new stage in this partnership.

“Our state-of-the-art hardware enables Ladbrokes Coral to take advantage of our latest content and software developments, including our new menu concept which provides an exciting new way of game navigation, and game play features such as ‘Premium Play’.

“As the customer journey is set to change in the coming months, it is important that we invest in the sector and innovate our offering, and support our customers as they drive their retail gaming performance”.  

Vince Bateson, Director of Machines at Ladbrokes Coral Group added: “We’re delighted that this complex roll-out was successfully completed within an ambitious 12-week time frame and that the new machines made a positive impact on growth as highlighted in our recent results.

“We have a collaborative partnership with Scientific Games and value the support they provide our business, especially as we head towards the legislative changes in the Spring.”

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As part of the deal, the 95 JenningsBet shops around the country will continue to operate SG Gaming’s Infinity terminal, with select venues benefitting from the supplier’s premium gaming product; Equinox. SG Gaming added to its slots portfolio in September last year, which has made its way into the supplier’s retail offerings.

Simon Johnson, group commercial director of SG Gaming UK, celebrated the extended partnership, commenting: “This agreement with JenningsBet is hugely positive for both businesses. We are proud we are able to further our partnership with JenningsBet and help support their retail business by continuing to supply our leading content and products across their entire estate.

“JenningsBet has been particularly impressed with our plans around April’s regulatory changes, and how we are evolving our slots content and our menus to reflect the changing customer journey.

“Throughout 2019 and beyond, we will continue to work in partnership with our customers, innovating our content offering and supporting and developing our product as the retail environment changes.This approach, along with our overall proposition, has led JenningsBet to choose SG Gaming as their sole gaming machine supplier.”

SG Gaming’s breadth of slot titles means that the supplier is in a position to deliver innovative content to the retail betting sector in the coming years as the industry faces enhanced regulatory changes.

SG will also provide JenningsBet with access to its in-house content development team, which focuses on slots, innovation in its game offerings and customer service.

Greg Knight, managing director of JenningsBet, added, “This deal is great news, and we are excited to continue working with the team at SG Gaming,

“We also look forward to future game innovation and entertaining themes that we know will excite our players.”

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Shares in SG climbed by more than a quarter, closing on $26.74, on the news that like-for-like losses were better than anticipated, with an “adjusted loss” of $0.14 per share for the three months to September 30, less than the $0.18 loss predicted.

Revenue was up seven per cent in Q3, to $821m, including $46.5m from NYX, along with growth in SG’s lottery and social businesses.

Net loss was $351.6m compared to $59.3m in the corresponding period in 2017, thanks mostly to a hefty $338.7m bill for restructuring and other charges, including $309.6m in relation to the verdict in the Shuffle Tech legal matter – an anti-trust lawsuit relating to patent infringement.

Consolidated attributable EBITDA increased nine per cent to $325.7m, up from $299m, a rise SG said was primarily driven by higher revenue and “continued operational efficiencies”. The consolidated AEBITDA margin was 39.7 per cent in the period, up slightly from 38.9 per cent in Q3 2017.

Social gains

The company is also considering a possible initial public offering of a minority interest in its social gaming business sometime next year. The social gaming business continues to experience rapid growth and has reached significant scale. SG said it believes an IPO would “provide greater flexibility to pursue additional growth initiatives specifically designed for its social gaming business, as well as unlocking additional value for Scientific Games stakeholders”. The company anticipates that the proceeds from the IPO would primarily be used to repay debt.

Barry Cottle, CEO and president of SG, said in a statement: “We are very pleased with the growth we are seeing across our businesses as we continue to lead our industry into the future.

“Our investments in digital, sports betting, and new games are producing the most innovative and engaging products in the market and we are excited about the customer response here in the US and around the world. For our rapidly growing social business, an IPO would give us greater flexibility to pursue growth for the business and drive value for stakeholders.

“We remain focused on delivering for our customers and running our business efficiently and effectively to drive revenue, reduce costs and continue to build momentum across the company.”

SG CFO Michael Quartieri added: “This quarter marks our 12th consecutive quarter of year-over-year growth in revenue and consolidated AEBITDA. Our focus on generating cash flows provides us a clear avenue to strengthen our balance sheet.”

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The supplier has installed additional Riviera terminals across all four Aspers casinos. Riviera offers an advanced gaming experience with its performance-enhancing features and full suite of B1 gaming content from SG Gaming’s in-house content team.

Furthermore the Aspers venues in Stratford and Milton Keynes will benefit from SG Gaming’s exciting new Mystery Progressive offering, Jackpot Party. Jackpot Party operates across a three-screen video topbox, featuring colourful LED lighting and bespoke graphics that display the three progressive pots, with a jackpot of up to £20,000 across linked terminals in venue.

Mark Beattie, Group Head of Electronic Gaming at Aspers Casino commented: “We’re delighted to further our relationship with SG Gaming, with our customers already having enjoyed its extensive content offering and state-of-the-art terminals.

“We strive to provide players with exciting new games and this partnership gives them access to a wider choice of popular titles, including Rainbow Riches and Black Knight, in a B1 gaming experience. We look forward to what’s to come in the next five years, as we continue to see SG Gaming’s ongoing dedication and investment in the UK Casino sector.”

The deal extends the partnership between SG Gaming and Aspers, following the success of its Infinity terminals, operating across the whole estate, and the debut of the Riviera terminal at Aspers’ flagship casino in Stratford.

Looking ahead, 2019 will see the introduction of the advanced and innovative Equinox 2.7 across venues. This dynamic and modular HD gaming terminal offers seamless gameplay and an immersive gaming experience.

Simon Johnson, Group Commercial Director of SG Gaming added: “Following the success of the Rivieraroll-out, we are thrilled to be able to further our relationship and continue to grow our footprint in the UK Casino sector by providing Aspers venues with our latest exciting Casino offering, including our Mystery Progressive and latest Equinox range.

“We are committed to innovation and supplying the Casino sector and its players with a flexible product and content offering that adds value to our customer’s retail gaming offer and provides the players with an entertaining and engaging gaming experience.  It is wonderful to see Aspers and its customers benefit from this and we are excited to be extending our partnership even further.”

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