## A Long Game – Sports Wagers – iGB
Jonathan Doubilet, Vice President of Operations for Playtech’s American operations, talks with iGB about the company’s long-term plan for growth in the US, and how to avoid “buyer’s regret” in a quickly growing market.
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A Long Game
Jonathan, currently managing the company’s US expansion from Playtech’s New York office, has over ten years of experience in the online gaming industry, having filled various positions. In his different roles at Playtech, he has contributed to the strategic growth of the company’s sports wagering business. Following the purchases of Geneity (UK), Mobenga (Sweden), and Best Gaming Technology (Austria), Jonathan recently served as the Head of Corporate Development for the newly formed Playtech Sports division, which has over 600 workers across seven locations.
It is widely known that online gambling, especially sports wagering, is expanding at a rapid pace in the US, with more and more states allowing player participation in a wider range of betting options.
However, while this trend seems to be without drawbacks from an industry perspective, the hurry to establish a presence could cost some companies in the industry dearly.
Considering this, Jonathan DuBilet, the Head of Operations for Playtech’s American operations, highlighted the importance for operators to meticulously select their vendors to address challenges extending beyond short-term market share rivalry.
DuBilet noted that numerous operators who hastily entered the American market are currently experiencing buyer’s regret as the vendor environment becomes increasingly competitive. He clarified that roughly half of the American population is eligible to engage in sports wagering, and the lessons learned from the pandemic remain fresh in people’s minds, with physical operators and elected officials reevaluating strategies for revenue generation.
DuBilet also emphasized that as online gambling expands in more states across the US, driven by precedents established in New Jersey, Pennsylvania, and most recently Michigan, operators now require a vendor capable of providing a diverse range of offerings.
He further stated that another crucial area of competition within the US is differentiation. As more operators enter the market, products must possess greater uniqueness, particularly in competitive, multi-brand markets. This places pressure on vendors to deliver more robust and innovative products.
Playtech’s first-half 2021 financial results demonstrated a 106% surge in revenue from the American and Latin American markets, showcasing the “enormous potential” for growth, DuBilet added.
However, as he was eager to highlight, although the US pledges to be one of the company’s largest markets in the years to come – alongside the UK, Italy, and Latin America – the growth of regulated states “is a long-term endeavor, not a quick race.”
“The US market presents numerous unique and thrilling opportunities,” stated Dubilet. “First and foremost, the sheer magnitude of the opportunity there. Conservative market size estimates suggest that the US could become a $24.4 billion gross gaming revenue market by 2025, and that’s not including all 50 states and products.
“Secondly, state-level regulations. Different state regulations mean that operators at the national level require a technological solution that can operate on a large scale but also adapt its compliance and regulatory approach at the state level. We are continuing to move forward with the licensing process in new states to enable more launches and licenses in 2022.
“Lastly, the US is already a very mature and developed market, both retail, with many large and developed casinos that have been leading the industry for years, and consumer, with highly sophisticated online consumers who expect smooth omnichannel experiences from day one.”
State-by-state adherence
Playtech is adopting a state-by-state strategy in the US.
For instance, the firm has set up physical gambling studios in New Jersey and Michigan, but can also offer adaptable technology solutions for operators across numerous states and products that conform to various legal frameworks.
Dubilet stated this adaptable method is based on Playtech’s Player Account Management (IMS) platform, which is GLI-19 certified, an industry standard acknowledged by most US regulators. The platform is presently undergoing GLI-33 certification to support additional sports betting possibilities.
“The IMS platform is not only a certified platform, but also integrates with leading US and international content providers, including IGT, Scientific Games and others,” Dubilet stated. “It provides ready-to-use support for key payment methods utilized by US state regulators and, through integration with GeoComply, provides geolocation and KYC preparedness for all state regulatory requirements.”
Dubilet cited Playtech’s entry into Michigan in April of this year, partnering with platform provider Parx Interactive and the Gun Lake Band of Pottawatomi Indians to launch a mobile gaming application, as an example of how this platform drives expansion.
“The scale and distribution of our platform and services is what attracted Parx to Playtech, and we are proud to be the technology partner supporting their ambitious growth plans,” he said.
Distinct environments
Playtech is dedicated to building a long-term presence in the United States, and Doubilet recognizes the significance of understanding the “dramatically different industry environment.”
“One notable distinction is the highly developed consumer market in the US, which has elevated expectations for multi-channel capabilities,” Doubilet stated.
“American consumers desire captivating and intelligent digital experiences, which necessitate technology with strong and proven multi-channel capabilities. In New Jersey alone, each adult spends up to $1200 annually on sports wagering, which is distinctive in the regulated gambling sector.
“Playtech possesses a time-tested, highly advanced in-house platform, which implies our truly multi-channel solutions are perfect for top clients seeking a competitive advantage.”
Although the US industry is comparatively new, it’s evident that knowledgeable consumers have high expectations for operators and their providers, compelling them to adjust their strategies to effectively expand their operations.
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