Aggregation comes to the fore

The case for adding ever more content to an online gaming offering appears unanswerable in the current multi-product, multi-jurisdictional environment. Hence the argument in favour of aggregation. “It’s important for operators to have all the possible content and promotional tools to differentiate themselves from the competition,” says Paul Myatt, chief business development officer at Aspire Global. “Regulated markets impose a great number of rules on how games should be delivered, which makes it necessary for aggregators to offer the widest range of content available.” Or as Rob Procter, content specialist director for digital at Scientific Games, puts it: “The availability of a diverse range of content at scale is fundamentally what makes a platform so attractive to operators in the first place.” The greater the choice, the more likely it is the end consumer will discover the content that best resonates with them, whether that is slots, bingo, instant-win games or live casino. If that can be achieved via a single source, then goes the argument for aggregation, all the better. This extends to questions around proprietary and exclusive content, according to Procter. “Content aggregation often provides the best route to securing the very latest content that is being released,” he says. “Last year, we secured the rights to exclusively distribute Big Time Gaming’s content across regulated markets worldwide. That really propelled our OpenGaming proposition to new heights and generated a lot of interest, both in Europe and the US.”

On the operator’s side, Ciara Nic Liam, commercial director for gaming at Betsson Group, agrees that aggregators are “incredibly important” because of the ability to use them as the route to trial new suppliers or get access to new development studios. “It is often the only route to market that we have,” she adds. “Whether it is us requesting them to provide a small studio for a specific market, or them coming to us with data and a business case to launch certain content, we have to partner with these companies to keep our offering local, targeted and up-to-date.”

There’s always a but

And yet, the net beneficiary of the slew of content is the consumer, according to Chris Looney, chief commercial officer at Bragg Gaming. “If a supplier finds a strength or a niche or if an aggregator can provide exclusive or localised content which adds real quality, operators are still very receptive,” he says. “Good quality content always has an audience in this industry.” But this very success then drives even more content as operators seek to match the palpable hits that might be available elsewhere. Here, aggregators are part of the problem. “There is too much content, and innovation has suffered,” says Steven Matsell, CEO at Leander Games. “On the whole, games developers look to release a game at least every three weeks as average shelf life is so short, and they need to keep generating revenue. As a result, the amount of effort you can put into a game has had to be reduced. It’s more of a production line these days.” Over at Aspire, though, Myatt puts the opposite point of view, suggesting the exponential rise in content means that more ideas are thrown into the mixer, thus “enhancing the competition in a positive way”. “Aggregators, studios and operators have to find more effective ways of engaging their audiences,” he says. “That is why we see new games coming out with more interesting features as well as improved promotional tools.” Betsson’s Nic Liam adds that the use of aggregators should “never be about a race to have the most content”. Rather, this is an issue of ensuring content is properly regionalised and targeted at audiences in each individual jurisdiction. “As a large-scale operator, we often need a large volume of content ‘launch ready’ on our platform, but that does not mean we should launch it in every market,” she adds. “The key to succeeding in some of our fast-emerging markets like Peru, Croatia and Greece is having a balance of locally recognised content that customers know and want to play and then being able to take a calculated risk with new content or more globally appealing content that we think the players will migrate to over time.” As with every other area of the online sector, the emergence of the US as a leading market also changes the situation once again. While online casino legislation might be somewhat behind the pace being set by sports betting, the handful of markets that are now open is posing questions across the sector, and aggregation is a part of the debate. “Aggregation is super attractive for the US market,” says Looney who points out that his company moved to secure its position as a supplier into the US via its acquisition of Spin Games, based in Nevada. Myatt agrees. “We can already see that there is a hunger for a premium service aggregator to enter these markets,” he says. Indeed, the rush to get products available in the US states that have opened up has somewhat proved the need for the aggregation model. “Content aggregation has already proved to be an effective way for US operators to ramp up their online games offering in an efficient manner,” says Procter. “For those launching an online offering for the first time, having access to a wide range of games unquestionably eases the process, while those looking to scale up their operations can lean on an aggregator to access content they were previously missing,” he adds.

More than just content

This touches on another big talking point around aggregation: to what extent are aggregators also the gatekeepers to any given regulated market and what are the weaknesses arising when it comes to key pressure points. “As regulation tightens across the globe, the need for an aggregation platform that is compliant has grown considerably,” suggests Procter. “Particularly when you consider how frameworks can differ across jurisdictions, operators need the assurance that the content they are accessing is fully robust.” Looney agrees: “As more markets regulate, or re-regulate, there is a huge burden on games providers to make sure they supply compliant-ready products to operators in a timely manner.” He says that games suppliers “tend” to fall into one of three categories:

• Well-established suppliers with proven games, but historical technical issues which can make new regulations very difficult to handle;
• New and agile suppliers who can cater for the demands of the regulations but might not have the capacity to support multiple markets or might not have a large enough portfolio of games;
• Hybrids: new enough to be responsive to the regulations but well-established enough to have a strong portfolio of games.

“We work with all three (as well as providing content of our own) and I think operators have a good grasp of what a supplier is able to do.” At Leander, Matsell says the company has an “intelligent wrapper” that can ensure that each game offered on the platform is compliant with the regulations for each country where it is deployed. “The wrapper recognises the IP address and/or URL of the website and delivers the correct version of the game to the player in that jurisdiction,” he says. “And it shouldn’t be a false assumption.” Looney points out that getting content compliant is also a great way to effectively advertise a game to operators. “It is a great way to get your content noticed,” he says.

I made this earlier

Of course, the skills an aggregator can bring to the distribution of content and what they know about what games are popular in which markets often leads down the road of proprietary content. It is, in some respects, an obvious leap but it comes with its own pitfalls. “We believe it is crucial for aggregators to give their operators the complete freedom to choose which games they want to include and highlight on their platforms,” suggests Myatt. He adds that Aspire’s goal as an aggregator is to be a “technical enabler of content”, and this also appears to chime with the views of Nic Liam. She points out that the “cost of doing business” is that Betsson is funding developments on the platform that are crucial for the value-add Betsson can offer players. But content alone is not enough. “At the end of the day, it often comes down to the relationship, how quickly they are willing to work with us, the level of service and dependability we have with the partner in making that final decision,” she suggests. “Having a fast turnaround in gameplay checks, a reliable platform and strong promotional mechanics is what sets these aggregators apart.” Aggregation remains a crucial element within the gaming ecosystem and, given developments in the US, that position could be even more central as the market matures. Content needs will always be central, and certainly aggregators can take their fair share of the blame if there is what some consider to be a glut of slots at any given time, but it is what else they can bring that distinguishes them and ensures their future place in the ecosystem.