## A Long Game – Sports Wagering – iGB
Jonathan Doubilet, Vice President of Operations for Playtech USA, chats with iGB about the online gaming and sports wagering software provider’s long-term development plans in the US, and how to avoid “buyer’s regret” in a rapidly expanding market.
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A Long Game
Jonathan currently manages the company’s US expansion from Playtech’s New York office, after spending the previous 10 years in various roles within the iGaming industry. Through his multiple roles at Playtech, he has contributed to the strategic development of the company’s sports wagering vertical. Following the acquisitions of Geneity (UK), Mobenga (Sweden) and Best Gaming Technology (Austria), Jonathan recently served as the Head of Business Development for the newly formed Playtech Sports division, which boasts over 600 workers across 7 locations.
Online gambling, especially sports wagering, is known to be expanding at an incredible pace in the US, with more and more states legalizing player participation in an increasingly wide range of betting options.
However, while this trend seems unlikely to have drawbacks on paper from an industry perspective, the rush to establish a presence could lead to regret for some companies in the sector.
In light of this, Jonathan Doubilet, the head of operations for Playtech’s American operations, stresses that companies must carefully select providers to tackle challenges that go beyond short-term market dominance.
Doubilet notes, “Many companies that quickly entered the American market are now experiencing regret as the provider landscape has become more cutthroat.” “Roughly half of the American population can participate in sports betting, and the lessons of the pandemic are still fresh, with traditional businesses and elected officials re-evaluating how to generate income.
“As online gaming expands in more states across the US, due to the precedents set in New Jersey, Pennsylvania, and most recently Michigan, companies now require a provider that can offer a variety of products.
“Another key area of competition in the US is standing out from the crowd. As more companies enter the market, offerings must become more distinctive, particularly in competitive, multi-brand markets. This places pressure on providers to deliver more comprehensive and innovative offerings.”
Playtech’s own report for the first half of 2021 shows that revenue in the American and Latin American markets increased by 106%, illustrating the “enormous potential” for growth, Doubilet adds.
Nevertheless, as he is eager to emphasize, although the United States vows to be one of the firm’s largest markets in the years ahead – alongside the United Kingdom, Italy, and Latin America – growth in regulated states there “is a long-distance race, not a dash.”
“The American market presents a distinctive and thrilling prospect, with several factors contributing to this,” Dubilet stated. “Primarily, the magnitude of the opportunity there is immense. Conservative market size estimations suggest that the United States could be a $24.4 billion gross gaming revenue market by 2025, and that’s without encompassing all 50 states and products.
“Secondly, there is state-level governance. Diverse state regulations imply that national-level operators 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 persistently pushing through the licensing process in new states to enable more launches and licenses in 2022.
“Lastly, the United States is already a very mature and developed market, both retail, with numerous large and established casinos leading the industry for years, and consumer, with highly sophisticated online consumers who anticipate a smooth omnichannel experience from the outset.”
State-by-state conformity
Playtech has embraced a state-by-state strategy in the United States.
For instance, the firm has set up physical gambling studios in New Jersey and Michigan, but it’s also capable of supplying adaptable technology solutions for interstate and cross-product operators that adhere to regulations in different regions.
According to Dubilet, this adaptable approach is based on Playtech’s Player Account Management (IMS) platform, which is GLI-19 certified, the standard accepted by most US regulators. The platform is also undergoing GLI-33 certification to support additional sports betting opportunities.
“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 offers ready-to-use support for major payment methods used by US state-regulated states, and through integrations with companies like GeoComply, it enables geolocation and KYC preparedness for all state regulatory requirements.”
Dubilet pointed to Playtech’s entry into Michigan in April with platform provider Parx Interactive and the Gun Lake Band of Pottawatomi Indians to launch a mobile gaming app as an illustration of how this platform can drive expansion.
“The scale and distribution of our platform and services were key factors in attracting Parx to select Playtech, and we are pleased to be their technology partner in their ambitious growth plans,” he said.
Distinct Environments
Playtech is diligently striving to establish a robust presence in the United States. They recognize that comprehending the unique dynamics of the American gaming sector is paramount.
“A significant distinction lies in the fact that the US market is highly developed, necessitating the ability of companies to engage with customers through diverse avenues,” remarked Doubilet.
“American patrons seek captivating and intelligent digital experiences. To deliver this, you require technology capable of managing substantial traffic volumes and demonstrating its efficacy across all channels. In New Jersey alone, individuals wager $1,200 annually on sports, surpassing any other jurisdiction globally with regulated gambling.”
“Playtech boasts an extremely sophisticated internal system that has undergone rigorous testing over an extended period. This translates into our truly omnichannel offering being the optimal selection for premier clientele seeking a competitive edge.”
Despite the nascent nature of the US gambling industry, it is evident that consumers are demanding a great deal from companies and their vendors. This compels them to adapt their strategies to facilitate rapid business expansion.