Intel Virtual Sports and eSports - EGR.Global

 
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Intel Virtual Sports and eSports - EGR.Global
Intel
                          Report 2018

  Virtual Sports
  and eSports
~ Betradar
~ Inspired Gaming Group
~ Kiron Interactive
~ Scout Gaming Group
~ Playtech
Intel Virtual Sports and eSports - EGR.Global
Intel Virtual Sports and eSports - EGR.Global
VIRTUAL SPORTS & ESPORTS REPORT

Group head of content:
Andy Roocroft
Tel: +44 (0)20 7832 6629
a.roocroft@egrmagazine.com             Introduction
Report editor:
Ross Law
Tel: +44 (0)20 7832 6535
r.law@pageantmedia.com
                                       No more filler
                                            he contributors to this EGR Virtual Sports & eSports Report analyse an
Production
Head of production:
                                       T    offering which used to be viewed as a mere ‘gap-filler’.
                                          The presence of virtual sports offerings in physical and online locations
Claudia Honerjager
                                       used to perform the sole function of retaining punters’ interest before the
Sub-editors:                           next live sports event begun.
Luke Tuchscherer, Alice Burton
Charlotte Sayers                          This is no longer the case; virtuals are fast becoming a critical part of any
                                       modern sportsbook offering.
Art director, EGR:                        The reasons for the rise in virtuals are multi-faceted: beyond the
Toni Giddings
t.giddings@egrmagazine.com             accessibility of virtuals and their quick-fire entertainment value, factors such
                                       as a region’s limited access to real live sports is proving a critical growth
Commercial                             driver.
Group commercial manager:
Sam Compagnoni                            We hope this report gives our readers an in-depth understanding about
Tel: +44 (0)20 7832 6554               why, in order to keep pace, virtuals should no longer be considered an
s.compagnoni@egrmagazine.com
                                       optional sportsbook filler.
Publishing account managers:
Debbie Robson
Tel: +44 (0)20 7832 6551               By Ross Law | Report editor
d.robson@egrmagazine.com
                                                                                                                          3
Content sales:
Tel: +44 (0) 20 7832 6512
membership@egrmagazine.com

Distribution:
Fay Oborne
                                       05 09 13
                                       The rise and rise            The growth of              The bleeding
                                       of virtual sports            virtuals                   edge of egaming
                                       Steven Spartinos, of         Heinz Kierchhoff, of       Steve Rogers, of
CEO:
                                       Kiron Interactive, reflects   BetRadar, highlights       Inspired, reflects on
Charlie Kerr
                                       on the way in which          virtual sports and the     the evolution of virtual
                                       technological advances,      key towards ensuring       sports and describes
                                       casino cross-selling         they are a successful      what’s in store for the
                                       and tailored content can     part of a modern           firm in 2018
                                       help operators get the       sports betting portfolio
                                       most from virtual sports

EGR Intel is published
monthly by Pageant Gaming Media
One London Wall, London,
EC2Y 5EA, United Kingdom
                                       07 11
                                       DFS: a growth                Further
                                       opportunity                  innovation
ISSN 1742-2450                         for European                 Elliott Norris, director
                                       operators                    of virtual sports at
Printed by The Manson Group            Andreas Ternström,           Playtech, reflects on
© 2017 all rights reserved.            of Scout Gaming              the firm’s development
No parts of this publication may be    Group, discusses the         throughout 2017 and
reproduced or used without the prior   growth opportunity           considers what the
permission from the publisher          in the fantasy sports        future of virtual sports
                                       segment                      may be
Intel Virtual Sports and eSports - EGR.Global
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Intel Virtual Sports and eSports - EGR.Global
VIRTUAL SPORTS & ESPORTS REPORT

                           Featuring: Kiron Interactive

                           The rise and rise of
Steven
Spartinos
XCo-founder and
co-CEO
                           virtual sports
XKiron Interactive
Steven Spartinos
is co-founder and          Steven Spartinos, of Kiron Interactive,                    or a large amount of time to be set aside. The simple
co-CEO of virtual          reflects on the way in which technological                  nature of virtual games is the perfect vertical for
games provider Kiron                                                                  these kinds of players.
Interactive. Established   advances, casino cross-selling and tailored
                                                                                         The instant-win gratification, associated with rou-
in 2001, the specialist    content can help operators get the most                    lette, blackjack and slots, offers many of the same
supplier now services
web, mobile, and land-
                           from virtual sports                                        thrills that virtual sports serve up on a regular basis.
based sportsbook and                                                                     Kiron Interactive’s virtual games are shown live
casino operators on
five continents. Prior
to joining the betting
                           W        ith around a fifth of over-the-counter revenue
                                    within high street bookmakers now coming
                           from virtual sports, it is safe to say the concept of
                                                                                      every couple of minutes throughout the day and
                                                                                      offer 60-90 second bursts of action alongside some
                                                                                      of the most comprehensive betting markets in the
and gaming industry,
Spartinos worked in        computerised sports betting is here to stay.               industry.
banking and finance.           These figures are impressive in their own right,            The cross-selling potential is unsurprising, and is
                           considering virtual sports endured a patchy start          also reigniting an audience which had grown tired of
                           to life in bookmakers, with many people failing to         standard offerings from their favourite casino. After
                           grasp the concept of what they were bringing to the        all, there are only so many times you can replay a
                           market when introduced almost 15 years ago. How-           similar slot or tired table game. Not that cross-sell-     5
                           ever, it’s the growth on mobile and in markets where       ing virtual offerings in this manner is easy. A large
                           live sports action faces other challenges that virtual     number of casino players are put off sports betting
                           offerings are really taking off. They are no longer de-      because they lack the necessary knowledge to partic-
                           signed to fill the gaps between race meetings; they         ipate, finding it all a bit too daunting.
                           are a standalone vertical in their own right.                 Virtual sports help smooth this transition by pro-
                              Virtuals partly have the gaming generation to           viding a simple betting experience with no external
                           thank for their rise in popularity. After all, it’s this   sporting knowledge required, yet offering the same
                           demographic which has grown up along the latest            exciting, fast-paced action these players crave.
                           advances in technology, enjoying games on comput-
                           ers, consoles, smartphones and tablets.                    Home and away
                                                                                      However, it’s not just in Europe’s mature markets
                           Instant gratification and cross-selling                     that virtual sports are really taking off. Africa is cur-
                           This is a generation on the hunt for instant gratifica-     rently experiencing a huge boom in interest thanks
                           tion, with modern-day living coming with time con-         to its ability to offer players exciting action in a con-
                           straints. Day-to-day life is no longer a 9-5; instead,     tinent where live sport comes at a premium.
                           players want to consume their entertainment and               It’s no secret that Africa is a football-mad conti-
                           betting when it suits – perhaps while waiting for a        nent in love with the European game. But with live
                           bus, or sat with a coffee on their lunch break.             football and reliable broadcast options out of reach
                              Ante-post betting has already paid the price for        for a large share of the continent, virtuals are prov-
                           this ‘instant win’ culture in many respects, with op-      ing to be the next best thing thanks to their life-like
                           erators seeing pre-match volumes replaced by in-           graphics and exciting narratives.
                           play revenues in recent years.                                And with the youngest population in the world,
                              Instead, players prefer to ‘snack’ on gaming prod-      with over 200 million people aged between 15 and
                           ucts, favouring options that slot into a player’s          24, it’s a market operators need to access right now
                           hectic lifestyle without the need for prior research       in order to capitalise on a sports betting market
Intel Virtual Sports and eSports - EGR.Global
VIRTUAL SPORTS & ESPORTS REPORT

                                                                                                                          Featuring: Kiron Interactive
      which is already worth in excess of $4bn.                What’s next for virtual sports?
         Mobile betting is being pushed hard by Western        As technology advances, so will virtual sports, and
      operators, but in Africa retail is still king for many   it’s the job of suppliers and operators to ensure they
      reasons. These include accessibility, social elements    are offering players the most life-like and immersive
      and payment restrictions, while a physical presence      experience they can. Graphics and gameplay have
6     in the market promotes brand loyalty.                    already improved beyond recognition. In fact, they
                                                               now rival games console offerings.
                                                                  But it’s not just the actual offering itself that
      “It’s the job of suppliers and operators
                                                               needs to be constantly tweaked and updated; it’s
      to ensure they are offering players                      also about being inventive when it comes to game
      the most life-like and immersive                         ideas and the number of betting markets offered to
      experience they can”                                     players. Simply updating a virtual football title is not
                                                               enough to please such a demanding audience.
                                                                  Instead, it’s important to offer a wide range of
         But as Africa’s middle-class grows, mobile betting    games to players. Kiron Interactive offers a 20-game
      is becoming the fastest growing channel in certain       portfolio including a variety of sports and numbers
      countries, with many reporting figures of up to 70%       games. Aside from the traditional virtual racing and
      of bets placed this way. In some ways, Africa has        football games, these also include a series of winter
      bucked the retail-to-desktop-to-mobile journey and       sports games in order to cater for operators working
      jumped straight to the latter.                           in Scandinavia and other northern territories.
         Much like the majority of Europe, football and           An extensive range of betting markets is also im-
      horse racing are the most popular sports with punt-      portant. By offering win-draw-lose markets, over
      ers, but it’s up to suppliers to ensure they customise   markets and handicaps in football, not only are
      their products and technology to fit the technology       more people catered for, but it becomes more and
      requirements of each jurisdiction.                       more like the real thing.
         Kiron Interactive has become the pioneering force        Graphics are always going to be the first thing a
      when it comes to virtual offerings in Africa thanks to    potential virtual sports player sees when they walk
      its customisation, as well as becoming the first pro-     into a retail shop or if it flashes up on their mobile,
      vider to offer two pan-African virtual games satellite    but it’s the betting markets, gameplay and range of
      TV channels in collaboration with Vermantia – Vir-       titles that retains and turns them into the next breed
      tual Games TV.                                           of virtual sports player. X
Intel Virtual Sports and eSports - EGR.Global
VIRTUAL SPORTS & ESPORTS REPORT

                           Featuring: Scout Gaming Group

                           DFS: a growth opportunity
Andreas
Ternström
XCo-founder and
co-CEO
                           for European operators
XScout Gaming
Group
Andreas Ternström          Andreas Ternström, of Scout Gaming                        to promote fantasy sports on social media channels
has over 10 years’                                                                   such as Facebook – thus allowing a massive market-
experience in the
                           Group, discusses the growth opportunity
                                                                                     ing opportunity.
iGaming sector. Prior      in the fantasy sports segment
to Scout Gaming                                                                         Fantasy sports players pay an entry fee to partici-
Group AB – Europe’s                                                                  pate in a game and from this a ‘rake’ is deducted by
number one B2B
fantasy software
provider – where he is
                           F   antasy sports traces its roots back to the late
                               ‘50s and is today a $10bn industry with over 60
                           million practitioners in North America. In Europe,
                                                                                     the operator. The prize pool is the combined entry
                                                                                     fees, adjusted for rake, and is distributed based on
                                                                                     a predetermined set of rules that may vary. In addi-
chief executive officer,
Ternström worked at        however, fantasy sports is still a relatively new         tion, there can be non-cash prizes such as coupons,
Evoke Gaming.              phenomenon but it’s gaining an increasing interest        freebies and product samples.
                           and holds significant growth potential going
                           forward for online gambling operators and media           Fantasy sports and daily fantasy sports
                           companies.                                                In recent years, Daily Fantasy Sports (DFS) have
                                                                                     emerged which, unlike traditional seasonal-based
                           What is fantasy sports?                                   fantasy sports, are more interactive and give prac-
                           Fantasy sports is an online game where end-us-            titioners the possibility to change their players or     7
                           ers compile virtual teams of professional play-           line-up based on current form, injuries and more
                           ers of a particular sport. The majority of sports         in the real-world. The daily fantasy sports leagues
                           are today included in the fantasy sports offering,         have as a result become a very popular form of fan-
                           such as football, baseball, basketball, hockey, golf,     tasy sports and are followed by practitioners 24/7.
                           cricket and wrestling. Local events can also be pro-         The growth of the fantasy sports market is driven
                           vided. The virtual teams then compete based on            by several factors: the emergence of daily fanta-
                           the actual statistical performance of the selected        sy sports combined with the increasing penetra-
                           players and teams. The points system for fantasy          tion of smartphones and tablets, and the fact that
                           leagues is calculated by a league commissioner, or        39% of all fantasy sports gameplay in North Amer-
                           by tracking actual results of the professional sport.     ica was conducted via a mobile device in 2016. An-
                              Fantasy sports allow players to exercise direct        other driver is the social element, where users get
                           control over the operations of their fantasy sports       to ‘show off’ their skills and compete with others
                           team and the chance to live vicariously as gener-         in an open and friendly environment. The simple
                           al manager, franchise owner or coach of their own         fact nowadays is that fantasy sports display longer
                           team or teams by drafting their dream team(s).            player lifetime and engagement and higher ARPU
                              They also have the liberty to structure the team       than any other online gaming products.
                           in any way they choose, and can organise rosters of
                           athletes playing for them. Therefore, fantasy sports      Fantasy sports in Europe
                           create a competitive experience among friends and         In Europe, fantasy sports is rapidly gaining traction
                           fellow fantasy sports enthusiasts. It also enables        and is believed by many to be the next era in online
                           sharing of knowledge and expertise, constituting a        gaming. The social nature aligns well with the
                           platform for end-users to interact with their friends     modern day interest in social media, and the abil-
                           and colleagues while engaging in their favourite          ity to market via social media is a powerful strategy.
                           leisure activity. As it is a game of skill, in contrast   Fantasy sports is also a great acquisition product
                           with most other gambling products, it is possible         for online operators to attract new players, and in-
Intel Virtual Sports and eSports - EGR.Global
VIRTUAL SPORTS & ESPORTS REPORT

                                                                                                                        Featuring: Scout Gaming Group
8

      troduces a brand new product vertical and revenue       based on their historical player selections, choices
      stream with high stickiness. By networking, opera-      and preferences. From this data, it is possible to
      tors are able to pool liquidity which benefits opera-    suggest fantasy sports players with relevant sports-
      tors and players alike.                                 book odds. As a result, fantasy sports become a
                                                              conversion tool and create cross-sale opportunities.
      “The growth of the fantasy sports                       Tools for automating this process are available and
                                                              are a prerequisite for the process to work efficiently.
      market is driven by several factors.
                                                                 As for all game formats with some degree of skill,
      [One] driver is the social element,                     operators face challenges as high-rollers are collect-
      where users get to ‘show off’ their                     ing the largest share of the prize-distribution. As a
      skills and compete with others in an                    result, tools that will lower skill barriers and enable
                                                              casual gamers to easily pick a competitive team will
      open and friendly environment”
                                                              be critical for the future success of DFS in Europe.
                                                              Several tools have already been presented in the
         A crucial element in fantasy sports is credible      market including coach assistance, player selection
      and reliable statistics that can be provided in real    based on game criteria, and autocomplete teams.
      time. The stat-engine needs to offer not only cus-          Fantasy sports enables operators to drive unique
      tomisable statistics but also rules and scoring. This   differentiation and improve monetisation oppor-
      is a foundation part of what makes fantasy sports       tunities going forward. Fantasy sports is subject to
      fun and enticing, and allows players to adjust and      licensing in jurisdictions such as Malta, where it
      adapt their team and player strategy. Over time, a      falls under the skill game regulations. Technology
      clear profile of each fantasy sports player emerges      providers also need to be licensed. X
Intel Virtual Sports and eSports - EGR.Global
VIRTUAL SPORTS & ESPORTS REPORT

                            Featuring: Betradar

                            The growth of virtuals
Heinz Kierchhoff
XManaging director,
gaming                      Heinz Kierchhoff, of BetRadar, highlights                offerings versus others. If the various elements
XBetradar                                                                           don’t gel together, the user experience isn’t smooth,
Heinz Kierchhoff is the     virtual sports and the key towards
                                                                                     intuitive or engaging.
managing director of        ensuring they are a successful part of a
Betradar’s Gaming
unit. The unit’s main       modern sports betting portfolio                          EGR: How is Betradar’s offering positioned to com-
base is in Bremen,                                                                   pete with other suppliers in this competitive seg-
Germany, while its          EGR Intel (EGR): What makes virtual sports an essen-     ment?
development teams are
                            tial component of a modern sports betting portfolio?     HK: One of Betradar’s clear strengths lies in its col-
spread across Norway,
Slovenia and Poland. He     Heinz Kierchhoff (HK): Year on year, betting operators   lection and distillation of hundreds of thousands of
founded the company’s       have gained a stronger grasp on how impactful and        real sports events each and every year. Our virtuals
gaming business 10          useful a virtual offering can be in their overall of-     portfolio mines this rich archive of data in order to
years ago, initially
                            fering. We don’t see this awareness growth slowing       ensure that our virtuals reflect real life as closely as
focusing on innovative
Fantasy Sports              down any time soon. We are confident that virtu-          possible. We also look to the real world for format
solutions. In 2010, the     als will continue to gain a foothold across operators    inspiration. With our upcoming Virtual Football,
company pivoted             and territories, and that those virtual offerings will
the offering to focus       themselves expand and evolve.                            “Our motion capture projects have
more on virtual sports
                               At the end of the day, virtuals offer bettors an      been large scale in order to ensure
betting applications
and Kierchhoff has          experience that is very similar to real sports bet-
                            ting, but one which is available 24 hours a day
                                                                                     that our clients can attract the
managed that team and                                                                                                                          9
its direction since then.   and comes with quick bet settlements. At Betra-          attention of punters. But graphics
                            dar, we are focused on understanding what it is          are only the start of the journey”
                            that succeeds, and ensuring that our clients have
                            the products that cut through and gain traction. If      the World Cup is an obvious example of this. All the
                            they are not built for betting, then they will not       player and team performances across our portfolio
                            attract and retain bettor interest.                      mirror the real parameters that are extrapolated
                                                                                     from our rich archive of results, events and in-
                            EGR: What features are most likely to ensure the         context micro-events.
                            success of a virtual sports offering?
                            HK: Graphics remain a highly visible piece in the        EGR: Where do you see the future of virtual sports
                            puzzle. If bettors compare their virtuals experi-        betting heading?
                            ence against the games they play on their consoles,      HK: No doubt the visuals and gaming possibilities
                            they need to feel that the quality is comparable. In     will catch the attention and focus of some suppliers
                            this area, Betradar has never cut corners, and our       and operators. They are shiny and exhilarating and
                            motion capture projects have been large scale in         technologically advanced. But those that get swept
                            order to ensure that our clients can attract the at-     away here may well end up shortchanging bettors
                            tention of punters. But graphics are only the start      who still ultimately want an engaging and realis-
                            of the journey. A deeper and fuller experience re-       tic betting experience. The sector has to continue
                            quires a comprehensive package that addresses re-        to focus on creating great betting products. Having
                            alistic match events, true-to-life betting markets,      said that, there are exciting developments that the
                            a user-friendly front-end, and certification for all      industry will embrace more and more. One obvious
                            back-end processes. Often there is an assumption         example is in-play betting. When in-play virtual
                            that these are all hygiene factors, but truth be told,   sports can truly replicate the momentum that af-
                            clients tell us that they do see clear differences in     fects player performance, then we will really see a
                            the amount of time bettors spend on some virtuals        new level to the virtual betting experience. X
Intel Virtual Sports and eSports - EGR.Global
VIRTUAL SPORTS & ESPORTS REPORT

                             Featuring: Playtech

                             Further innovation
Elliott Norris
XDirector of virtual
sports                       Elliott Norris, director of virtual sports               one of the industry’s best performing slot brands
XPlaytech                                                                            across both casino and live casino, offering two
Elliott Norris is director   at Playtech, reflects on the firm’s
                                                                                      unique experiences while also doubling their chanc-
of virtual sports at         development throughout 2017 and                          es of winning massive jackpots when playing the live
Playtech. He has close
to two decades of            considers what the future of virtual                     product.
industry experience.         sports may be                                               Aligning with our market-leading progressive
Developing the market’s                                                               jackpot network, the live product shares casino li-
first virtual horse racing
                                                                                      quidity for the first time while also offering play-
product in 2001, Norris
continues to push the        EGR Intel (EGR): How has Playtech developed in 2017?     ers the ultimate desktop and mobile gaming expe-
boundaries of leading        Playtech: 2017 has been yet another year of great        rience. Due to this, Playtech ONE innovation play-
technologies in the          innovation and growth for Playtech across every          ers have the chance to not only win on the table if
pursuit of making virtual
                             aspect of the business and our product offering, all      they hit the right number, combination of numbers
a reality.
                             of which is centred on our Playtech ONE omni-chan-       or colour, but also to simultaneously win huge cash
                             nel philosophy and strategy. The proven strength         sums across a four-tier jackpot with every spin of the
                             of the Playtech model has once again been dem-           wheel. This is the first of many Playtech ONE experi-
                             onstrated this year, with our numbers showing a          ence games that will feature jackpot functionality.
                             strong first half performance driven by underlying
                             growth and recent acquisitions.                          “Unlike other products on the market,
                             The first half of the year saw our gaming division                                                                   11
                                                                                      Playtech has fully simulated every
                             deliver strong growth with double-digit underly-
                             ing growth and recent acquisitions integrated and
                                                                                      sport on offer”
                             performing in-line with expectations. We have also
                             continued to execute on our industry-leading omni-       EGR: What levels of success have you seen in recent
                             channel solution by deepening our offering in key         offerings?
                             verticals with the integration of Playtech BGT Sports    Elliott Norris: Playtech is the leading supplier of vir-
                             creating a fully integrated best-in-class sports tech-   tual sports products, with our diverse and growing
                             nology solution and the launch of the world’s largest    offering combining the very latest 3D game graph-
                             Live Casino studio in Latvia, revolutionising the of-    ics and Hollywood motion capture technology with
                             fering in a growing and dynamic channel.                 a highly sophisticated virtual simulator across a
                                Playtech ONE has opened a whole stream of pos-        wealth of sports including horse racing, football,
                             sibilities when it comes to cross-channel play and       tennis, greyhounds, velodrome, speedway and bas-
                             tailoring experiences to individual players and re-      ketball – the latest product to be added this year.
                             warding individual players based on their loyalty           Virtual Basketball is our latest product incorpo-
                             and a whole range of triggers that can be enabled        rating 16 virtual teams in a unique league, the Vir-
                             using omni-channel technology. The other area to         tual Sports Basketball League or VSBL. The league
                             come from this is Playtech ONE, enabling single          has 16 teams from across the United States (eight
                             brand cross-sell across multiple products. We have       eastern conferences and eight western conferences)
                             recently launched Age of the Gods Jackpot Live Rou-      all playing for the prestigious title of VSBL Champi-
                             lette that provides licensees with the ultimate cross-   on, with every player wanting to have their claim to a
                             sell, progressive jackpot product, and slot fans with    championship ring. Features include:
                             twice as many chances to win huge cash prizes with         • 16 full teams with 32 kits (home and away).
                             every spin of the wheel.                                      Based on western and eastern divisions in the
                                In a first of its kind move, and the first Live              Virtual Basketball League (VSBL)
                             Casino Playtech ONE experience, players can play           • All players created using 3D facial scanning
VIRTUAL & ESPORTS SPORTS REPORT

                                                                                                                         Featuring: Playtech
        • 16 team stadiums with impressive scene setting
          sequences and unique stadium and sponsors
          branding
        • Realistic environments with a very high level of
          detail, including cameramen, game officials,
          coaches, staff, press and players on the bench
        • Animated play-by-play responsive crowd
        • High quality American commentators
        • Immersive action: stylised intro, half-time and
          full-time sequences per team
        • Events include dynamic pro plays, replays, close-
          up reaction shots, team warm-ups and special-
          ity dunks
        • Exclusive virtual league website displaying in-
          depth game history and knowledge

         Our virtual sports products enable players to bet
       within a familiar sportsbook environment, with our
       graphics engine and servers allowing for integrat-
       ed odds, data feeds and bespoke in-game branding,
       promotions and tailored races, matches, games and
       promotional events.
         Unlike other products on the market, Playtech
       has fully simulated every sport on offer. This allows
       for a richer player experience, enabling players to
       study form and history.

12     EGR: What further opportunities do you foresee in the
       virtual sports arena?                                     sations, features and statistics to help players make
       EN: Our pioneering Virtual Sports Football Accumu-        that crucial bet. Features include:
       lator product is an innovation we have showcased            • Seamless in-play data feed integration onto ex-
       this year. Initially deployed across 100 UK Coral             isting betting system
       shops with the potential to deploy it across a further      • Seamless event feed integration onto existing
       1,000 outlets, it replicates real-life football accumu-       visualisation system if required
       lator or ‘acca’. Streamed locally via a Linux hard-         • Virtual in-play 2D visualisation component read-
       ware box solution, it is comprised of four 90-second          ily available with most of the incidents/events
       matches running simultaneously every five minutes.             for football. This component can be integrated
       This presents the player with an extensive range of           onto live sports tab seamlessly.
       options in every betting round and allows them to           • All popular in-play markets available to offer
       view a ‘feature game’, while concurrently seeing re-          flexible scheduling system. Configurable mar-
       sults appear for the three remaining fixtures.                 gins per market.
          Our accumulator product, delivered ahead of time         • 24/7 virtual in-play events
       for an in-store installation, marks the first of our         • Low/no risk for revenue due to RNG-based re-
       Playtech Sports virtual products to be launched in            sults
       a retail environment. It is an industry-first and re-        • Reduced operational costs for licensees. Virtual
       mains unique to the market due to its unrivalled              In-Play does not require trading, scouts or algo-
       HD quality, cost effectiveness and swift deployment            rithms
       across our locally managed server solution that en-         • Odds generated based on previous virtual events
       sures low impact on operator resources.                       performance of teams and players
          Our virtual in-play product is coming soon to our        • All stats available to display for historical
       offering and has all the benefits of live sports bet-           matches, teams and players
       ting but with matches that take place 24 hours a day.       • Football event duration can be configurable any-
       Virtual in-play football includes enhanced visuali-           time between 15 and 90 minutes. X
VIRTUAL SPORTS & ESPORTS REPORT

                             Featuring: Inspired

                             The bleeding edge of
Steve Rogers
XChief commercial
officer, digital games
XInspired
                             egaming
Steve Rogers is chief
commercial officer of        Steve Rogers, of Inspired, reflects on the               SR: While exact figures differ from territory to terri-
Inspired’s digital games
division, and has over       evolution of virtual sports and describes               tory, more than 15% of sport bets made globally are
15 years’ experience in      what’s in store for the firm in 2018                     now on virtual sports products. While in the UK the
the virtual sports sector.                                                           percentage is slightly lower, owing to our heritage
Prior to his current role,
                             EGR Intel (EGR): How has Inspired gone about edu-       of betting on live football matches and horse racing
Rogers was COO of
Red Vision, which was        cating customers unaware of virtual sports?             events, in Italy, we see that statistic above average at
acquired by Inspired         Steve Rogers (SR): The challenge in bringing            nearly 20%. Unsurprisingly, in territories where real
in 2006.                     virtual sports to a new customer-base is twofold.       sports betting is yet to be regulated, we see virtu-
                             Firstly, there’s the need to educate the operator       als performing incredibly well, with double-digit
                             who deploys the product, and secondly there’s the       growth year on year.
                             customer who is going into that operator’s venues          In terms of sports-betting market growth as a
                             and on to their websites looking for entertain-         whole, we see adoption of virtual sports wagering
                             ment. Inspired’s recent launch in Greece is an          growing faster year on year versus real sports bet-
                             exemplification of successfully bringing a new           ting. This can be attributed to an increasing aware-
                             concept and product to a new customer base. We          ness and understanding of virtual sports products
                             partnered with OPAP to run a consumer awareness         globally, coupled with more sophisticated market-          13
                             campaign which incorporated printed posters and         ing, promotions and advertising campaigns.
                             leaflets in venues, TV advertising, and extensive           I don’t foresee virtuals revenues superseding real
                             staff training. The beauty of virtual sports is that     sport revenues in the future; while the quality and
                             they don’t require the in-depth knowledge needed        realism of our products are ever improving, they will
                             to place a complex sports bet, meaning that their       always be a supplementary product to real sports
                             potential customer base and appeal is, therefore,       betting. There’s no particular skill required to bet
                             further reaching. We’re soon to be the first business    on virtual sports – which, of course, often works in
                             to launch virtual sports online in New Jersey, and      their favour to a certain type of customer – whereas
                             we’re working with our customers to drive interest      placing a real sports bet requires knowledge of the
                             and awareness there with TV advertising, online         form, odds, conditions and more.
                             trailers and promotional offers.
                                Industry trade shows such as ICE, G2E, and           “We see adoption of virtual sports
                             NASPL are also great forums in which to showcase
                             new products and innovations to the industry –
                                                                                     wagering growing faster year on year
                             and also to raise awareness of virtual sports and       versus real sports betting”
                             their revenue driving potential to new customers.
                             We recently launched our new American football             That said, the advantage of virtuals is the freedom
                             product, 1st Down, at G2E 2017, and it was fantastic    and flexibility they afford to customers: we can run
                             to see the response from customers who anticipate       an event at any time of day, in any regulated venue
                             launching the product in their sportsbooks online       or online site regardless of weather or other ex-
                             and in venues in 2018.                                  tenuating circumstances. In 2017 we launched our
                                                                                     Virtual Grand National products which comprised a
                             EGR: What is the current market share between virtu-    predictor race, which was broadcast on national UK
                             als/real sports? Do you see virtuals superseding real   television the day before the event itself, and also a
                             sports betting in the future?                           Grand National ‘Race of Champions’ event which
VIRTUAL SPORTS & ESPORTS REPORT

        Featuring: Inspired

                                                                                      in popularity in esports in generations Y and Z, and
                                                                                      there is certainly an opportunity for virtual sports
                                                                                      to leverage this trend with the emergence of VR and
                                                                                      AR technology. Everything is possible in the virtual
                                                                                      worlds that we create. To date we have focused our
                                                                                      attention on creating lifelike experiences for our
                                                                                      customers, but we have complete freedom with our
                                                                                      environments and camera angles, and this drives
                                                                                      innovation.

                                                                                      EGR: What does 2018 hold for Inspired?
                                                                                      SR: 2018 is going to be an exciting year for Inspired
                                                                                      with new product launches and updated variants
                                                                                      of existing products. Our biggest launch will be
                                                                                      1st Down, our American football product, which
                                                                                      has been specifically developed for the US market,
                                                                                      which is an ongoing area of strategic focus for
                              saw famous runners from past races competing to         Inspired’s virtuals business. We used the latest
                              take the ultimate title.                                motion capture techniques to develop our best
                                 The predictor race featured 40 declared runners      looking product to date, which undeniably blurs
                              and riders from the 2017 Grand National field and        the lines between the virtual and reality. In addition
                              used complex data algorithms to deliver the most        to top quality graphics, we carried out extensive
                              realistic and sophisticated predictor race to date.     consumer research to ensure that the final product
14                            The proof of the reliability of the math was proven     engages and excites players, and delivers something
                              in the predicted winner finishing a close second in      they’d never experienced before.
                              the live race. Inspired was the first in the industry       In addition to 1st Down, we’ll be launching
                              to broadcast virtual sports on national television,     Inspired Basketball featuring legendary NBA Hall
                              again raising awareness of our products to a wider      of Famer Shaquille O’Neal. Again, this product is
                              audience and showcasing the possibilities of virtual    being developed with the US consumer in mind, but
                              sports. The Grand National predictor race will again    will have further appeal in Europe and Asia. We’ll
                              be running in 2018 with subsequent virtual races        be evolving and updating our core product ranges
                              featuring the famous Aintree fences being shown         to include new iterations of our enduringly popular
                              throughout the year. At Inspired, we continue to        Virtual Horses and Football products. We’re adding
                              blur the lines between live sports and virtual sports   live action presenters to our numbers games follow-
                              and the Grand National product was testament to         ing the success of our real money gaming products;
                              that.                                                   again in response to consumer demand.
                                                                                         We’ll also be launching in new territories, includ-
                              EGR: How is Inspired positioned to meet the new         ing online in New Jersey and in partnership with
                              trends virtuals will likely bring?                      Veikkaus Finland – again demonstrating the global
                              SR: Virtual sports are perfectly placed to embrace      appeal of Virtual Sports and Inspired’s ability to be
                              emerging trends such as virtual reality and/or          the first to reach new markets.
                              augmented reality. In the future, punters will             Last, but my no means least, we’ll be extending
                              realistically be able to ride in the Grand National     our hugely successful Rush Go! portfolio of prod-
                              themselves, do five rounds with Mike Tyson or            ucts, which have been designed to appeal to casino
                              shoot hoops with Shaquille O’Neal. As the technol-      players and feature chip betting, an in-game bonus
                              ogy we use becomes ever more sophisticated, as          wheel and quick re-bet feature. 2018 is going to be
                              does the quality and depth of our graphics, the pos-    a big year for Inspired, and we’re looking forward
                              sibilities in this exciting evolution for gaming are    to bringing more of our products to more players
                              truly endless. In recent years we have seen a surge     globally. X
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