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The Income Access Group recently attended GiGse 2014 in San Francisco. We took part in a number of insightful sessions, and have compiled a short presentation highlighting our perspective and key takeaways in hopes of bringing the experience to you
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GiGse 2014 – What’s all the buzz about?July 2014
Key topics:
Fantasy gaming
Cross-platform design and marketing
An integrated approach
Social versus real-money
iLotteries
The iGaming domino effect
Social player acquisition
The future of mobile gaming
Fantasy in the US“Fantasy sports - from niche to mainstream business - what’s in it for you?”
- @sethyoung of Star Fantasy Leagues
Fantasy sports panel has reps from @SFLeagues @FanDuel @DraftKings @BetAm_Sports and Optimal Payments.
- @gavinteo of Comcast Ventures
Daily fantasy: $850M entry fees, 41m fans. Geoff @FanDuel shares demand drivers.
“With a similar game structure, we see the merger of Draft Kings and Draft Street as a good thing.” – Seth Young, Chief Operating Officer, Star Fantasy Leagues
“Daily fantasy games are what’s interesting. There is a real opportunity to cater to the casual consumer by introducing social components to the games.” – Jason Robins, CEO, DraftKings.com
FanDuel anticipates $1 billion in revenue next year.
1% of players are season-long, reflecting a massive opportunity for growth in the market.
Over $2.5 billion was spent this year on horse betting.
There is significant crossover in customers, with over 70% of FanDuel users also betting on Watch and Wager, Draft Kings, and Draft Street.
Key positions and trends:
Facts and takeaways:
Cross platform design and marketing
“Experiment and learn - Facebook as a platform can be highly effective as a canvas to test and experiment with game mechanics.” – Guy Cross, Strategic Partnerships, Facebook
“Data is not the same as insight. As marketers, we have an almost overwhelming amount of data, but it takes a really smart business intelligence approach to draw out key insight to make smart marketing decisions.” – John Clelland, CMO, DoubleDown Interactive
Acquisition is best divided by 80% budget and 20% time investment.
Retention is best divided by 20% budget and 80% time investment.
Mobile to web players are 2.4 times more valuable than single channel players.
Web to mobile players are 1.5 times more valuable than single channel players.
Key positions and trends:
Facts and takeaways:
“Optimizing marketing in a highly competitive marketplace.”
- Kenny Huang of BlueBat Games
When the player leaves your brick and mortar casino, they will play other people’s games. The 173m social casino players per month are […] being entertained by these social casino games.
An integrated approach to iGaming
“Online is having a real and measurable impact on property customer re-engagement and value, with the key being an integrated experience.”
“Digital marketing is expanding reach to better understand and appeal to customer preferences.”
“20% of our players that registered online have a TropAdvantage account and haven’t been on property for up to 6 or 7 years. We are now successfully re-engaging these players, and seeing some returning to the property.” – Luisa Woods, Executive Director - Online and Internet Marketing, Tropicana Entertainment Inc.
The lowest value segments are lapsed customers and casual visitors who spend $20-30 per visit.
US Class 3 Slots are a key way of unlocking potential with US customers.
Key positions and trends:
Facts and takeaways:
“Connected games – technology and marketing needed to offer fully cross-channel gaming and avoid the threat of cannibalization.”
- @casinocityvin of Casino City Times
[Tropicana AC’s] top online players spend big on entertainment at their brick and mortar facility rather than gaming.
- @VictorRocha1 of Pechanga.net
[Tropicana AC’s] top online players spend big on entertainment at their brick and mortar facility rather than gaming.
Online casinos do not cannibalize the bottom line of terrestrial casinos.
Social vs. real-money – it’s an “and,” not an “or”
Tweet
“We don’t know when the US is going online for real money, but operators need to be online today. Casinos have no transparency on what their customers do when they leave the casino floor.”
“Good quality content is most important, whether RMG, social or land-based. With increasing access to data, we’ll be able to connect the dots to truly evaluate where the overlap is.”
If you have strong financial backing, go direct to social. If you don’t, start with Facebook or iOS.
“If you’re not part of the top 10 or 20 social apps, you’re not in that business and need to take a different approach – that can look like using social to bring customers back on property, fully integrating with customer loyalty programs.” – Matt Davey, CEO, NYX
Key positions and trends:
Facts and takeaways:
“Social casino as part of your RMG strategy – capitalizing on the business that generates revenue today.”
- @VictorRocha1 of Pechanga.net
80% of NJ social players buy virtual currency.
What online means for lottery growth
Tweet
“In the US, the industry is looking forward to iLotteries and California.” - Lynne Kaufman, Partner, Cooper Levenson, Attorneys at Law
“Biggest lesson learned by BCLC is that we would have gone to market with a much broader and deeper product offering. Content and an enriched experience are key.” - Rhonda Garvey, VP eGaming British Columbia Lottery Corporation
“ Success isn’t about what proportion of sales are online; it’s about how much online is growing market potential and opportunity.” - Michael J. Jones, Director, Illinois Lottery
Digital is allowing lotteries to have direct relationships with customers and think from the end user perspective, rather than solely distribution retailers.
Multi-channel players can have a 25% incremental value in both channels.
Online is opening up access to a younger demographic – BCLC has seen the average lotto player age drop 10 years through introduction of a mobile platform.
Key positions and trends:
Facts and takeaways:
“Lotteries taking the leap into iGaming.”
- @EwaBakun of Clarion Gaming
Lotteries interested in iLottery rather than #iGaming, says Vern Kirk of DE lottery.
iGaming domino effect“Are the first launches in NJ, NV, and DE successful enough to inspire other states to legal and regulatory action?”
- @casinocityvin of Casino City Times
Rendell noting online casinos are not the end to [casinos ] the way VCRs were not the end to movie theaters.
- @EwaBakun of ClarionGaming
If asked to testify, Gov Rendell would testify pro.
“If we’re worried about money laundering, the best thing to do is regulate and control it.” – Edward Rendell, Former Governor of Pennsylvania
“Poker only is the first step to complete online gaming.” – Willie Brown, Former Mayor of San Francisco
“Legal internet gaming has to happen because of what’s going on in illegal gaming.” – Edward Rendell, Former Governor of Pennsylvania
Atlantic City lost 1.1 million players when Pennsylvania opened its casino doors.
The opening of casinos has meant $1.5 billion in tax revenues for the state of Pennsylvania.
Pennsylvania has the second highest gaming revenue in the country, behind Nevada, and is #1 in slots play.
Key positions and trends:
Facts and takeaways:
How to win players in social“Driving design and product innovation to win players in a highly crowded and competitive marketplace.”
- @Hollywood_Dave of Idle Gaming
- SuperData Research
My catchphrase this year is “smarter virality.”
“Don’t wait until you have a perfect product. Speed to market is more important.”
“Players do not want to be forced to share a win every time; understand when that win is meaningful.”
“Players want a personalized and authentic experience.”
There exists a 5-10% conversion drop-off when customers are asked to choose a player alias.
Kindle is a platform with great potential - users have huge lifetime player values.
Retention is the most important KPI to watch in social, with a shift in focus to long-term retention.
Key positions and trends:
Facts and takeaways:
Mobile is taking over gaming “Mobile Gaming: should you circumvent online/PC to jump straight into mobile?”
- @ppapoker of Poker Players Alliance
Android mobile gaming exp. has not been as good as iOS but getting better. Investment is in mobile gaming, not PC.
“Mobile usage is creating a culture of not wanting to enter registration information.”
“There’s a real benefit to letting players trial a demo of a game (free play) before requiring them to go through the full registration process.”
“Customers are looking for new stuff much more readily on mobile than on desktop; therefore, mobile marketing should be about acquisition.”
At least 50% of interactive sports wagering is done on mobile.
Mobile is estimated to contribute 40-50% of activity and only 30% of revenue.
$22 billion was spent on mobile last year.
Key positions and trends:
Facts and takeaways:
For more information, please contact us:
1-514-849-8595
http://www.incomeaccesstechnologies.com
