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This round-table features examines the way aggregation platforms are evolving and embracing new technology in order to alleviate pain points for studios entering unknown markets. It allows them to concentrate on creating quality content. Rhys Hatton is Senior Product Manager at Light & Wonder. Tatyana Kaminskaya is Head of SOFTSWISS Gaming Aggregator.
What is the relationship between an operator, a game studio, and aggregation platform?
Rhys Hatton When aggregation platforms do a good job, it’s a very powerful relationship. Our role as providers is to simplify the distribution process and make it easy for customers to access regulated markets around the globe. This is done through the delivery premium content from both our own and third-party sources, as well as through our OpenGaming platform that is highly scalable and has all the promotional tools and gamification features operators require to retain and attract players.
Operators have also been affected by new regulations in certain markets, including Sweden, Germany, and the UK. Our technology platform can quickly pivot to respond to network changes, keeping operators compliant and legal without having to drop content or suddenly manage large projects and fire drills.
Ivica Jovanovski This is a 360-degree ecosystem which is highly interconnected and highly dependent. Each segment plays a vital role. The player who initiates and drives competition in the game studios is the most important. The aggregator is the link between the target audience and the product. Operators have the chance to try the offering and improve their portfolio.
Tatyana Kaminskaya – All actors in this group depend on one another. It is much easier for players because their main goal is entertainment. Game studios are most vulnerable as they have to attract players, operators, and game aggregate platforms. It is crucial to balance the interests they target.
There is no way to exclude any of these actors – they work together as one. Although it is possible to imagine studios, operators and players being able to cope without the involvement of game platforms and content hubs, this trend does not last long. Both operators and studios will benefit from aggregators in terms of reducing costs. Although direct contracts have been spotted between casinos and studios, aggregators are not to be beaten due to their ability handle legal, technical, and account management issues. The economic viability is what makes the difference. Aggregators are responsible for high volumes and build price offers. They also act as a security guarantor to providers.
Which markets are aggregation platform particularly beneficial as a way to market studios?
Ivica JovanovskiIn markets that have stricter regulations and few operators, the immediate return on direct integration is expected. North America and Europe are two regions where aggregation is most effective. I believe that South America’s upcoming consolidations and regulations will alter the landscape of the continent, and aggregators will play an even greater role.
Tatyana Kaminskaya – Advantages don’t depend on markets, but on the size and maturity of a gaming studio or aggregation platform. Both are basically the same concept. When a studio is just starting out in the industry, it should aim to get maximum output with minimal input. It should give priority to markets that are not heavily regulated. These markets require little effort to get licenses or certificates. However, they help you understand the process and build capital. This prepares you for landing in more regulated and serious destinations like the UK. The UK is already mature enough to weather financial challenges and endure them. You can only achieve a certain level of product maturity if you are able to invest six to 12 months and reap the benefits, which will bring more value later.
Studio owners should choose a game aggregator over a market, and look for the best product that matches their current development stage. They then start to analyze access to operators, technical functionality, and services. The SOFTSWISS Games Aggregator has over 180 game studios. This is a testimony to our functionality and features.
Rhys Hatton – It is about the universality and not just catering to one market. While the breadth of access is important. However, we also need to be aware that markets regulate and change frequently. North America is a leader in this area due to its complex and fragmented regulatory environment that varies greatly from one state to the next. This means that suppliers must incur significant costs to obtain individual licenses due to the amount of resources required to complete this long process. These problems can be eliminated by a platform provider by establishing strong working relationships with regulators, even before the market goes live.
The support of a modern platform for aggregation fosters and drives innovation across all studios. We strive to offer operators stand-out content that covers every gaming niche. This includes local, market-specific games. It is important that we offer content that is as wide as possible but also as specific as possible to each market, so players can choose the right content. Light & Wonder LIVE DEALER is an interesting example. We have made it live in Colombia, with more regulated markets to follow. We are able to meet the growing demand for live casino entertainment in the Americas thanks to the strength of our platform.
What technology is changing at platform level and to what effect?
Tatyana Kaminskaya – There is no universal pattern that can be applied to all aggregation platforms. I can tell you that the SOFTSWISS Games Aggregator, as well as some of our competitors, sees the need to improve technology and communicate more closely with players. A content hub was traditionally an invisible mediator that allowed players to manage a game. Players are not aware that this mediator exists. Game aggregators are able to add value to the game and then approach players to get their input.
This is possible only if the platform’s basic functionality has been elevated to the highest standard: a large game portfolio, data processing, help desk and multifunctional back office. The final step is to increase player engagement and retention.
Rhys Hatton It’s also been fascinating to see our competitors adopting solutions we’ve had for a while, such as our client-middleware solution. It is inspiring to see other companies incorporate our ideas and expand on them. This shows how relevant they are in the industry. We believe that the future will be about expanding our network services. Since many years, we offer network-wide Free Rounds. This removes the complexity from many back offices and systems. We are currently expanding this feature to include new features. It is not difficult to find smaller aggregators or single studios who have created great products in this area. We are aiming to catch up. However, we are already able to achieve what we do globally across the entire network. This is something that cannot be duplicated elsewhere.
Our acquisition of Playzido has greatly increased our content capabilities. Its Remote Gaming Server (RGS), a proprietary platform for rapid custom game development, is one of the most powerful in the iGaming sector. Already, it is helping to accelerate how we can help game studios as well as operators around the globe to create new and exclusive content. This approach is a great way to differentiate and innovate in a highly competitive market.
Ivica Jovanovski Two streams are used to guide change. The first is technological advances, such as blockchain, VR and AI, that can enhance the gamification experience. Second, it is easier and more compliant adaptation to new regulated market, which allows for faster delivery. This is critical when first-mover advantage becomes so important.
Is it important for these platforms be robust at scale to offer players seamless entertainment?
Ivica Josephski : Because of the high volume traffic and large data processing, stability is extremely important. This is a major competitive advantage for operators. The technology will continue to improve, so the platforms will become even better. Additionally, more functions and elements will be added to enhance the player experience.
Rhys Hatton Online gaming is often seen as part of the larger entertainment industry. This idea is in line with the expectation for a flawless playing experience. It also means that platforms must be resilient at all levels. Players expect a smooth gaming experience regardless of where they are located in the world. A game that fails to work when opened is a sign that the player may not be able to play it again. Particularly in emerging markets, it is important to consider the impact on revenue if a player leaves a casino because of a poor gaming experience. For major platform providers like Light & Wonder reliability at scale is essential.
Scalability on a platform-level is also about customer security. Global markets will see more sophisticated technical attacks, including ransomware and data breaches. Operators must ensure that the platform they choose is resilient and responsive to any adversity so that it can continue to operate efficiently at scale.
Tatyana Kaminskaya – Game aggregators act as invisible players in the gameplay process. A player can start a game and not notice its technical side. Good gameplay is a bonus. Game aggregators must be able to operate flawlessly and process large data flows efficiently so that players have an exceptional experience. Only after you are at this stage, you can approach players. You should not pressurize them but give them the freedom to accept or reject your offer. This is exactly what the SOFTSWISS Game AGgregator’s Tournament Tool does – it analyses and adjusts to player preferences, shows the benefits, and gives a choice.
Similar story applies to bonus games, savings, challenges, and other functions. While they can all be valuable assets that find their niche, they are not worth much if the basic functions do not work properly. These additional features may seem like nice additions, but they will become a necessity faster than the competition.
What do you think the future landscape will look like for aggregation platforms in the future?
Tatyana Kaminskaya – To answer this question, I will reaffirm my previous statements: Aggregators will interact more with the players. Operators used to have direct access. They kept in touch with players, created communities, and so on. The game provider has access to the players once a game has been downloaded. However, it is not communication but quality gaming that is important at this stage. Aggregation platforms can now enter the communication process to engage and retain players with additional tools and features. This doesn’t necessarily mean players will remember our brand, as we prefer not to be branded in this way. We will demonstrate to operators that an aggregator can increase player retention, increase their LTV, and potentially deposit more without extra effort from a casino. We will be recommended by operators and they will want to collaborate with us. If we create popular and sought-after functionality, players will be able to request specific features only available through aggregation platforms. This will allow game aggregators to grow and improve player experience.
Ivica Josephski: Operators will be more satisfied with a trusted partner in multiple markets if innovation continues at a steady pace, if modern technology adeptness is increased, and adapted to new regulations quickly. This will make the bond stronger. Platforms will be geographically divided and move in different directions, as many parameters will need to be adjusted. One thing is certain: Aggregation platforms are strong as they solve many of the problems faced by operators, help them increase their offerings and speed up their reach in key markets.
Rhys Hatton We believe that, especially in emerging markets where aggregation platforms like OpenGaming are still very promising, we think. With a technology stack and tools designed to facilitate this process, OpenGaming can deliver content quickly to operators in multiple jurisdictions. It is all about suppliers being able utilise the resources available to them: the ability to perform adaptive planning, as well as the ability to constantly assess and adapt to changing requirements. Our industry is subject to regulatory change. This can sometimes be done without consulting. It’s about how platform providers can adapt to changing requirements and expectations, and provide added value beyond distribution and scale.