Don't expect fireworks in 2011
Progress in 2010 was piecemeal rather than spectacular, argues Patrik Selin of Bodog Europe. So, will 2011 be any different?
About this time last year the industry prophets for 2010 were talking of mergers, of B2B as the key business driver and, as ever, of US regulation. But in reality none of it came to pass. Remember “PWin” won’t merge until March next year and 888 and Ladbrokes feels like raking over old ground.
That’s not to say 2010 didn’t have its moments but as is so often the case things happen in ebbs and flows rather than one crashing wave. Still, three things stood out for me this year:
i) Rather than federal and pan-European solutions, the industry is fragmenting into different compartments. In Europe each country will have its own license, tax structure and rules, and cherry-picking which to be involved with will be a CEO’s hardest job. Look at France, where even those with licenses admit the system is unworkable in its current format. We have to hope other governments will take note and want to build a credible industry rather than simply seeing free revenue without having to raise income tax.
ii) Another factor that has possibly got less recognition than it deserves is the emergence of mobile growth for betting. It been talked up as ‘the future’ for so long that maybe now that the platform is starting to deliver the story already feels old.
iii) Thirdly, the continued trend of less growth in certain areas of the industry, most notably poker, has caused companies to fold completely or sell quickly. Though there were no particularly big players in this category, it sadly seems a matter of time before there is a larger casualty. This is, of course, the nature of any industry, but for this industry which has been used to ‘good times’, 2011 could be when real strategic execution and quick reactions will be tested in the most obvious and brutal way.
Nevertheless, despite predictions of revolutionary events in 2010, they did not happen, and I don’t think 2011 will be very different. While my predictions may not be full of hyperbole and fireworks this is simply because I don’t think there will be fireworks in 2011. Here are three things, however, that I will be paying particular attention to in 2011:
It would be foolish not to list the legal landscape, and changes thereof, as a huge priority in anybody’s mind who works in egaming. There is no way to combat or stringently plan for it, so any company must remain flexible and be able to react to whatever may come our way.
Secondly, the global economy will never be far from anybody’s minds, and especially in Europe we all know there is a huge degree of uncertainty ahead. The good news here is that recent surveys suggest the internet is a luxury that would be one of the last to go, but this remains an obvious factor as we sail into 2011.
On a more personal level my biggest focus in 2010 was recruiting talent, and I will be fiercely continuing the recruitment drive in 2011. One of the battlegrounds for egaming next year is the search for talent “ by which I mean people. A good strategic decision without the right people to execute it is nothing more than a presentation.
In reality only time will tell what 2011 will bring. I have no problem with being wrong but am very interested in the opinions of others as to what will be the talking points next month let alone next year. Good luck either way!