At least that's what Tim De Borle, CEO of Napoleon Sports & Casino, assured during SBC Summit Barcelona.
Participating in the panel Growth through innovation and regulation – The CEO view, De Borle pointed out that players will always find a way, whether through legal or illegal markets, to bet, but emphasized that the ecosystem “must prioritize the right functioning".
Asked by moderator Valentina Franch, Senior Manager and Gaming Industries Specialist at KPMG Malta, about how to strategize for entry into these markets and the importance of regulation for industry growth, Napoleon's CEO emphasized that a lot depends on internet penetration.
And she deepened: “This plays an important role, I think the most important, for the growth of the legal market. The market will grow anyway, depending on the penetration of the internet, depending on the technology, depending on the product, etc. Now, the balance of proper functioning, as we call it, and the preponderance of the legal market over the illegal one is the task of the regulator. And it is a very important task, which must be very well balanced, which must be prepared for the future”. Thus, she remarked that for him there are three important objectives.
One would be player protection, to make sure you create a safe environment. Second, a level playing field and a clear legal framework should be provided, not only for existing legal operators, but also for those operating without permits, so that there is a clear distinction.
“The third is the fight against the illegal market, which is also the task of the regulator. I think for us as operators it is a tough fight that we cannot win. It's not really a fair competition,” he stated. In this regard, he explained that while "we can do the best in terms of technology, offer the best products to address player protection or the responsible gaming program", if there is no policy against illegality, "then it is a fight that we have already lost."
“The player will find his way, be it legal or illegal. And I think the whole ecosystem has to function properly. The regulator has to play his role, and we have to play ours as operators, while the legislators have to make sure that this regulatory proposal is well thought out and that it works”.
Along with De Borle and Franch on the panel were Américo Loureiro, director of Solverde SA; Colin Stewart, CEO of Palasino Malta, and Ross Parkhill, CEO of Rhino Entertainment. It was this last of the three who delved into Rhino's strategy process to enter a new market, expressing that on the regulatory side there are "many different factors that influence development", and stressed that everything depends on "the size of the the company".
“Depending on the size of the organization, we first look at whether we can capitalize on the new market. In addition, we think about what the regulation means for the local player. Is there a deposit limit, withdrawal limit or gaming limit that can affect the amount of income that can be generated there? What is the player experience like?” he recounted.
And he continued: “If the regulation is in some way detrimental to development, we also worry about whether there is likely to be a large black market there. So, first of all, we will decide well, can we make money in this market? From there, we are going to try to see how we can grow as a brand. Can we really make a product live and grow? Then he added that they focus on analyzing what the competition is like.
“At the moment, we are a brand with a main focus on casinos. Can we go with a casino or do we need sports to be competitive? How big is the market? What is the demographic of gaming culture that we need to look at? That is still very important,” he emphasized. The next steps of analysis focus on subsequent growth, once the company lands on that land.
The new questions are oriented towards how to locate better, how to obtain regional personnel, what the process of opening an official business in the country is like, among other things. “Finally, the technological theme follows. Most regulations may require some form of work to be done on the rig. We do not own our own platform.
So do we trust our partner to make sure they are licensed to the market? If not, how long would it take? What would we have to do to achieve it?” he explained. Following Parkhill's analysis, Loureiro pointed to three key factors, though he said he could “name ten right off the bat” for reaching new markets. In this line, he highlighted
