Presentation on theme: "Vegetarians, M & Ms, and Harry Potter – current and future trends in betting and gaming IAGR - 2014 Christina Thakor-Rankin 1710 Gaming Ltd."— Presentation transcript:
Vegetarians, M & Ms, and Harry Potter – current and future trends in betting and gaming IAGR - 2014 Christina Thakor-Rankin 1710 Gaming Ltd
Social Gaming Digital & Crypto Currencies Interactive, multi-channel and TV Push technology, Siri and next gen In-Play Multi-channel - Augmented reality (AR) to Virtual Reality (VR) Invisibility Cloaks Discussion Points
"Facebook has already reached the peak of its popularity and has entered a decline phase. Peaked in December 2012 Will lose 80% of users between 2015/17 Has The Social Gaming Bubble Burst?
Social Sports Betting (Betfair light) Social version of the exchange model - peer to peer and community Human v human NOT human v machine – ‘hearts and minds’ Driven by challenges, bragging rights and earning kudos Taking an established social circle activity onto a wider, bigger community Plays on ‘put your money where your mouth is’ Do gamblers want their friends to see their losing streak? Do gamblers want to be seen as the ‘mug punter’?
Social Gaming = Vegetarian Gambling Looks a lot like regular bacon Tastes a lot like regular bacon Feels a lot like regular bacon ISN’T actually meat Used by: Vegetarians - experience without conscience Meat eaters - trying to cut down Meat eaters - who can’t access real meat Looks a lot like regular gambling Plays a lot like regular gambling Feels a lot like regular gambling ISN’T actually gambling Used by: Non-gamblers - experience without conscience Gamblers - trying to cut down Gamblers - who can’t access real gambling
No real link between gamers and cash gamblers… ….in regulated markets. Social gaming may appeal to gamblers who cannot access legal gambling opportunities….…and may be creating a hidden generation of problem gamblers. Social gaming may continue to appeal to gamblers….…who cannot access legal gambling opportunities or bitcoin/altcoin gambling sites Social Gaming & Regulation
Created by ‘Satoshi Nakamoto’ ? Bitcoin is a crypto-currency based on mathematics and encryption - not fiat or commodity money – current form is digital Bitcoins are mined by solving computational problems (hashes) Bitcoin is decentralised – no controlling authority or institution The total number of Bitcoins will never exceed 21 million To first reward blocks contained 50 BTC the last 0 (c. 2140) Other Altcoin includes - Litecoin, Peercoin, Ripple, Sexcoin, etc. Bitcoin Basics
(2) + (2) = ? (2 + 2) + (2 x 2) - (2) = ? (22 x 2) – (22 - 2) – (10 x 2) = ? (2 x 2 x 2 x 2) + (10 – 2 x 2) – ( 22 – 10 – 2) x (2) = ? Reward block halves every 210,000 blocks From 50 BTC in 2009 to 25 BTC in 2012 Next halving due in 2016 – some think 2015 Bitcoin Mining Exercise
Bitcoin is just another payment method Bitcoin – Regulator Challenges
$1.00/£1.00/€1.00 v 1.00000000BTC International centralised currencies e.g. $, £, €, ¥, etc. (1/100 = 0.00 = 2 decimal places) 1 Bitcoin (BTC)= 1.00000000 1 mBTC (milli BTC)= 1/1,000 = 0.001 1 uBTC (micro BTC)= 1/1,000,000 = 0.000001 1 Satoshi= 1/100,000,000 = 0.00000001 Costs of software and systems re-configuration to support 2 + decimal places Customer education, error and experience
Bitcoin – FX v UX Bitcoin unit changes and 8 decimal places creates accounting challenges Difficult to forecast P&L and plan year on year budgets Difficult to manage liability and liquidity: Ante-post bets and poker tourneys Acquisition bonuses and promotions: 30 to 90 day lifespan Affiliate commission against fluctuating currency: risk of negative equity Needs higher level of customer awareness and diligence – one ‘0’ too many or too less
Bitcoin – Follow the Money MI MO Money InMoney Out WALLET BWALLET A
Bitcoin – Global Adoption Some statistics suggests the total number of BTC users = 500,000 For security many users have multiple wallets to avoid hacks Some are ‘curiosity’ users with minimal value and no intent to use Very low user base = US, China
Bitcoin – Operator Challenges Cost of reconfiguring software and systems to support more than 0.00 + Cost of maintenance as more Bitcoin units are added to mBTC, uBTC FX volatility and impact on liability, bonuses and affiliate commissions Difficulty in tracing lost deposits and withdrawals Source of funds and financial KYC require new cyber-security skills High risk of customer input error (.000) and poor User experience (UX) Currently cost and risk is greater than revenue and reward BTC user base which does not reflect average target customer How often do you change currency and why?
Interactive & Multi-channel Bringing land and on-line together Video removes location barriers Customers sitting in the casino playing with customers sitting at home
Interactive Gaming - Concerns Verification: Is it the actual customer playing or someone else – how to check How old does the player look – under 18s who look older Sexualisation: Dress code – female dress code, head shot only, Inappropriate/offensive gestures, words, conduct and behaviour Dark Side of Interactive Community: Bullying, Stalking, Trolling Relationships – Collusion Game/Play Integrity: Customers - Loose play to keep ‘pretty’ players at the table Operators – Inciting play by deliberate placement of ‘alluring’ players at tables Operators – Taking a stronger ‘sex sells’ approach to VIPs – private tables
Interactive Gaming – Live Dealer REGULATED & CASHUN-REGULATED, FREE & BITCOIN Special rooms for high rollers & VIPs Live streaming from Casinos already happening
In the next 5 years 90% of industry growth will be via mobile The end of desktop…
Push technology Targeted marketing based upon Customer profile and preference e.g. Man Utd markets on UEFA games only Location and time e.g. customers in Asia before UK EPL kick-off (cheaper than sponsorship) Market & time co-ordinated e.g. all customers at half-time Incorporate GPS tracking e.g. promotion + your nearest shop/casino is Push is more cost effective than TV advertising (half-time also means half-time for viewers) Add fingerprint login technology to slide and offer 1 tap betting Do existing marketing and advertising regulations also apply to push technology?
Siri – voice activated search & betting Online customers check bets visually – best process for voice? Record keeping – audio files for disputes and integrity/security investigations Rules to prevent inducements to spend more e.g. would you also like a FGScr bet? Is a slurred voice a sign of someone betting irresponsibly – what action should be taken? Do current regulations apply to Siri and voice activated search & betting?
Operated via a smart phone Headphones and glasses operate together Use hand gestures and actions to control screen Equivalent to a 26-inch tablet in front of face Displays 3D graphics in front of eyes Interact with graphics using hands Could also be controlled by voice $500-$850 Gesture-based 3D Augmented Interactive Reality Approx. $1,500
from Augmented to Virtual Reality Full digital replication of the land experience Fully immersive – sights, sounds, actions Voice activated deposits and interactions Full integration land & digital play against customers in the casino from home Which regulations will apply offline or online?
Invisibility Cloaks John Howell, a professor of physics at the University of Rochester, has suggested many real life used for this technology such as letting a surgeon see through his hands, or a truck driver see his blind spots.University of Rochester The Rochester Cloak Digital Metamaterials Light Bending – optical camouflage
The End Christina Thakor-Rankin 1710 Gaming Ltd