CURRENT SITUATION AND PROSPECTS FOR 2024
PART IV - GAMBLING & PRODUCT PROVIDERS

The time when online gaming operators needed just a few weeks to integrate cashiers and gaming products into their platform is history. Already from the start of the regulated market in Spain (2012), we could see that much of an operator's success lies in its ability to partner with providers and developers. Thus, under the tutelage of trained employees and the supervision of Game Software Certification laboratories authorized by the DGOJ, it is possible to achieve success in the increasingly complex challenge of having an excellent, safe, and 100% legal product and service offering.

In the following lines, just as we did with OPERATORS, PLAYERS, and AFFILIATES, we will review the reality in 2024 of another important player in the online gaming sector: the developers or providers of game software; that is, the companies that develop and supply the products and technology necessary to operate casino games, slots, sports betting, poker, and other forms of digital entertainment that have emerged in recent years.

1) The predominance of B2B

B2B is the abbreviation for "Business to Business," which refers to a type of commercial transaction that occurs between businesses, in contrast to transactions between a business and individual consumers (B2C, Business to Consumer). In the B2B model, a company provides products, services, or information to other companies, and in the online gaming sector, this has become increasingly necessary.

Gone are the days when an online operator could be set up in a few days by simply customizing an existing gaming platform. The white labels that revolutionized the online poker and casino segment almost three decades ago. Those were times when companies like Playtech, Ongame, or Bossmedia were leaders in the field of game software developers and providers, managing to put networked gaming systems on the market, with dozens of brands sharing the same software.

Over the years, it became essential for operators to expand their range of services, adding providers from segments like Daily Fantasy Sports such as Scout Gaming, or virtual betting games like Leap Gaming or Golden Race.

2) Regulated markets and compliance

Compliance" refers to the practice of ensuring that a company or organization complies with all applicable laws, regulations, standards, and ethical codes in its industry or sector. This concept is especially relevant in the highly regulated online gaming industry.

Thus, after the legalization of online gaming in Spain, the need for supervision by the DGOJ not only of operators but also of providers, added security and complexity to the reality.

The role of laboratories and entities for certification and approval of gaming software, such as Asensi Technologies, ensured in any case that the process of obtaining and modifying licenses was carried out in accordance with the expected requirements at the level of technical compliance for both operators and providers.

Moreover, with the relevance of various laws and regulations, many other needs arose in identifying, assessing, and controlling the legal and ethical risks (responsible gaming) faced by the Spanish Regulator and operators. Regulatory compliance became fundamental to stay up-to-date in the integrity and transparency that the Spanish online market has always demonstrated.

3) User experience: when "more" is always "better"

Another reality that highlights the relevance of providers, developers, and certification laboratories is how, in such a competitive market, having the largest possible number of games is one of the ways operators have chosen to stand out from the competition.

Thinking of a good user experience (UX) and relying on rapid integration capable of launching several titles at once, the casino sections (especially slots) of many Spanish operators feature more than a thousand different slots. Therefore, smooth integration, the quality of the games, and the ability to include new games in proprietary bonus and promotion systems become key to scaling the business while attracting and retaining players.

4) New trends: casino poker and betting

Having innovative products that are authorized by the DGOJ has become one of the priorities when completing a competitive offer by operators. LIVE CASINO products from brands like Evolution or Playtech have been the great energizers of the casino segment, making it capable of competing with sports betting and its golden age. Although offering sports streaming services among sports betting operators, integrating sections of advanced statistics and live results (Genius Sports or Sportradar), or creating specific games on poker platforms ("fast-fold" modes or "sit&go with jackpot") have also been very significant realities in the last decade.

These services and needs have significantly changed the way operators hire the services of providers and developers, becoming almost a daily task.

This situation has made alternatives to traditional game distribution and integration agreements very necessary. The most important being the presence of more and more AGGREGATORS in the online gaming sector. Companies that used to be owned by large corporations and operators, but are now independent intermediaries that bring together a wide range of gaming products from different developers, making it easier for online casino operators to access a diverse catalog of games and simplifying technical and operational management.

Providers like SOFTSWISS Game Aggregator or Microgame are fundamental to explain the tremendous success and expansion of games from providers like the Spanish MGA games.

Moreover, another trend of differentiation among operators is offering exclusive games. For this, in-house production is the chosen path. Thus, companies like 888 or PAF regularly boast of launching games in their casino and slots sections that are designed, developed, and integrated by their own creation laboratories, with Section 8 Studio being one of the most emblematic examples.


The same happens with video bingo within the BINGO vertical or the complex betting platforms, which increasingly require more customization and scalability when configuring and creating new sections and functionalities like the popular "BET BUILDER" or "CREATE BET" feature.

5) Online operators with a land-based channel

Logically, gaming operators that offer both physical and online products, such as Sportium or Luckia, have specific needs in terms of agreements with game providers and developers. These needs vary depending on several factors, including regional legislation, market trends, and business strategy (especially when finding synergies between online and offline, as happens at the level of promotions, loyalty systems, and payment methods).

The commitment to innovation in products and the constant arrival of new technologies means that to remain competitive, these operators have a much larger agenda of providers that are not only at the forefront in terms of innovation but also allow the incorporation of products and services such as horse racing, virtual reality, bet verification with QR code and from mobile devices, or new forms of streaming. In addition, work is done to combine aspects of marketing and promotion, often resulting in actions, products, and joint advertising campaigns to attract new players and retain existing ones both in the online and physical channels.

6) Payment methods: Bizum today and Crypto in the future

But obviously, the integration of payment systems is - along with compliance with regulations - the continuous challenge faced by operators in this field. Identifying trends in the selection of payment methods, testing new ones for the target audience beyond the traditional ones (credit cards, e-wallets, bank transfers), and a correct integration of the payment gateway are daily realities for operators, who see how payment solution providers are often technology companies that need time to offer payment processing solutions.

A current reality in recent years has been the constant incorporation by operators of BIZUM, the payment method based on sending money via mobile. But the future will undoubtedly be marked by the integration of cryptocurrencies for online transactions, including deposits and withdrawals in regulated operators.

7) Marketing and Affiliates

In the field of marketing, the big challenges faced by operators would be affiliate platforms, processes for improving User Experience (UX), and the integration of costly CRM platforms that facilitate communications (commercial and all types with the player). Finding providers in these areas produces great value within the corporation, which must also work to ensure that the integration is smooth to guarantee a good experience for both the user and the employees in charge. This includes ease of use, speed in transactions, and compatibility of the chosen systems.

In any case, these solutions must be adaptable and scalable to handle the growth in the number of users and the incorporation of new programming interfaces or applications.

Summary

The integration of cashiers and gaming products in an online gaming operator is in 2024 an increasingly relevant process that requires careful planning. Collaboration between multiple parties (including the Regulator and Authorized Certification Laboratories) means that focusing on technology, security, and user experience are not the only needs in their relationship with game providers and developers. And, as we have seen, it is crucial to keep up with market trends and the needs of such a dynamic sector to ensure success and sustainability in offering a wide range of high-quality games.