“Traditional” Fintech together with Blockchain and Cryptocurrency (bCommerce) is making inroads to conventional banking and clearly threatening to create a new norm. Banks are adapting the services they offer to keep up with the times, traditional backs like HSBC are now creating apps to challenge the challenger banks and increasingly shifting their gaze to the digital audience.

In vogue right now, and it’s easy to see why blockchain and crypto currency has the potential to be globally transformational, it uses advanced cryptography to store information across decentralised networks and offers the potential to eliminate the need for trusted third parties, like banks, legal agreements, including all manner of other contracts and escrow services. It is much more than a global digital currency, the applications are far more widespread than simple money could ever be, and that is its true value. Progressive governments are waking up to this new economic model and one in particular is catching the eye, Malta.

On May 22nd the government of Malta published three new bills and with that created a regulatory framework for crypto exchanges. The new bills are: the Virtual Financial Assets Bill, the Malta Digital Innovation Bill and the Innovative Technology Arrangements and Services Bill. The first one, containing 26 stipulations, concerns initial coin offerings . The second one concerns the establishment of an industry-specific governing body and says that the interests of the blockchain industry will be promoted to the government. The third concerns regulation and certification of technology. With this Malta are sending a very clear signal to the world, they are welcoming the blockchain and crypto industry, they will regulate it and protect investors. Perhaps most significantly at this point is the fact that Maltese banks are going to allow fiat to crypto deposits and withdrawals within months. Those in the crypto space will know that Binance one of the largest exchanges in the world recently moved from Hong Kong to Malta, followed by Okex another large exchange. Malta is sending a clear signal to the world and the ramifications if they get this correct are far wider than banking.

Summary of a vibrant Coingeek conference. The overarching theme was the enablement of Fintech 2.0 or bCommerce (blockchain commerce) as it was described. Speakers covered various subjects including enabling micropayment for first world applications such as IoT solutions whilst simultaneously enabling commerce for traders and populations where the majority are unbanked.

Dr Craig Wright described BCH as an economic system that uses crypto its not a crypto system. He set out his plans to start releasing swathes of patents in the coming months, positioning BCH as the future global currency standard, he describes how it can consume BTC and ETH and other tokens with access chain contracts effectively attaching them as side chains of BCH. He described how they will enable the tokenisation of everything, creating the foundation of a global “as a service” society, supporting fractional ownership of items once thought of as commodities or items you could traditionally only own. Tokenisation can enable goods to be rendered useless if stolen and yet re-enabled if returned, a world where anything stolen is rendered useless and if turn on reports exactly where it is. Of course tokens can be used to replicate every financial model available today. More importantly this technology will enable new ways to do business and create new economic models.

The recent increase in block size means BCH can handle, today, the global volumes of PayPal, which is a business that solves the problem of using credit cards on the net! He went on to say they have gig blocks working in the lab, which when implemented will provide equivalent scale to Visa / Mastercard globally with many other use cases and features, some of which are described above.

The future is looking exciting......

In light of many jurisdictions now becoming regulated, what advantages do white label solutions provide for operators?

Simply put, a white label platform is a cost-effective way of entering the lottery market with a solution tailored to the needs of the target market. Capable of handling everything on the technological side of the business, an efficiently-delivered white-label lottery platform provides local operators with the freedom they need focus on their brand and market positioning in a newly-regulated jurisdiction.

Additionally, white label platforms can take care of all aspects when it comes to regulation and payments provision, further alleviating costly and time-consuming burdens from an operator’s shoulders.

We are witnessing promising signs of regulation taking hold in emerging regions such as Latin America and Africa, and white label platforms can hold the key to providing operators with all the technical and regulatory tools they need to compete.

On the subject of new markets, Africa is very much a hot topic, with a huge possibility for growth. How important is Twelve40’s presence here? And how do you plan to capitalise on its enormous possibilities?  

We are consistently in the process of assessing opportunities to become involved in new markets across the globe, and we were delighted to sign with Ofertas365 to provide the continent’s largest ever jackpot. The flexibility and speed to market that our platform provides our partners with were the key factors in securing such an important agreement, and this is core to what we offer our partners across the globe. We are delighted to be growing our commercial footprint across Africa, and this is where a platform approach stands out.

Emerging markets have their own unique cultures and demands, which bring their own intricacies, and this must be reflected by operators in order to engage players. Many of these aspects are subtle, but they can prove fundamental to the way a site operates. Indeed, trust is a significant factor and there are several ways to build that across individual markets.

The obvious example of differentiation in Africa is payments. Kenya, for example, is synonymous with M-Pesa, but across the continent there are a multitude of payment options that you will not see elsewhere. As a platform provider we have worked with a number of operators across the region, and have harnessed this experience in becoming highly attuned to region’s varied requirements. Put simply, we set ourselves apart by delivering understanding alongside unparalleled speed to market.

Operating in such a saturated environment, how do you ensure the sector remains modernised and appealing? And what techniques are/can be employed in order to further drive player engagement?

There are a number of factors at play when it comes to driving long-term player engagement in the lottery sector. It is worth remembering that no two jurisdictions are the same when it comes to the experiences that their players are looking for, and in that sense it is important to be in constant dialogue with operators in order to ensure that fluctuating customer preferences are being met in the most efficient manner possible.

In emerging markets there are cultural norms that must be taken into account, developing middle classes driving the adoption of certain aspects such as smart phones, which of course widens the potential for content, but there are still technical constraints to be mindful of. These factors combine to create a road map for entertainment delivery. Content needs to be engaging, responsive and delivered within the constraints of the operating environment.

Lottery games, and you might be surprised to hear virtual sports, slots and even sports betting games are becoming an increasingly important part of the puzzle when it comes to acquiring and retaining players in the lottery sector. The awareness of lottery operators about the capacity such titles have to enhance their offering and build acquisition is starting to grow as players become used to quick burst of lottery-esque content, whilst still hoping for a life changing jackpot. A targeted portfolio of constantly evolving games is known to drive both revenue and consistently higher levels of player engagement. At Twelve40, we have a range of expertly-modelled instant win titles and some surprising alternative games built into our platform, and their popularity is certainly something we will build on to continue growing acquisition and retention.

Expansion and development can be crucial within any area, and Twelve40 has recently announced deals to encapsulate virtuals, with VSoftCO, and sports betting games, with Spiffx, in its platform. How crucial is it to expand in such a way? And how do these deals enhance the Twelve40 offering?

With iGaming being such a fast-moving industry, it’s no exaggeration to say that if you are not continually moving forward, the pace of this business leaves you at risk of falling behind. Pushing the boundaries of our offering to our partners with engaging content is of paramount importance.
As I hinted at above, just because traditionally the norm has been lottery alongside instants does not mean that’s the end of the discussion. For us, working closely with our operators to look at the local market, it became obvious that we should be expanding into virtuals, and signing with a provider as highly regarded as VSoftCo was an easy decision to make. Along with our recent agreement with Spiffx, these are deals that underline our ability to capitalise on our potential with a range of exciting content and gaming entertainment, boosting our lottery offering with games that continue our tradition of providing experiences that can keep players coming back. Whilst we provide a platform, we work with the individual operators to provide games we know will complement their offering, but also help them to experiment with content that they perhaps would not have considered, driving margins through innovation.
This is definitely a trend we will look to continue, and you can expect to receive plenty of updates from us in the coming weeks and months.

Managing new markets

The Twelve40 CEO examines how white label solutions can help lottery operators to navigate the choppy waters of regulating markets

There is no denying that the gambling industry is currently moving at an almost unprecedented pace. The technological innovations on display at the recent ICE Totally Gaming conference were as numerous as they were impressive, with new approaches to sports betting, virtual reality and player engagement on display. However, the speed with which the industry is moving is by no means limited to all things technological – we are currently witnessing promising signs of regulation in a number of jurisdictions, with many regions putting concerted effort into formulating robust and reliable frameworks for regulated iGaming activity.

In Europe, the Netherlands could potentially be moving towards a comprehensive regulatory framework, while Portugal has made progress in issuing licences under its refreshed regime. Meanwhile, in Latin America, Colombia has recently received the green light for its new structure under the oversight of regulator Coljuegos, and there are promising signs that other nations, including Brazil, could be set to follow suit.

Certainly, newly regulated jurisdictions present a distinct set of challenges to operators when it comes to issues of compliance and player protection. These are challenges that operators must face, and face successfully, if they are to deliver well modelled and responsible gaming experiences.

Avoiding a cut-and-paste approach

On top of that, a one-size-fits-all approach to platform provision is also unlikely to be the first step on the path to success in new territories. The demands of players in different markets vary a great deal, and multi-jurisdictional operators must ensure they are prepared to cater for these varied demands, shunning the temptation to take a cut-and-paste approach to the expansion of their horizons.

By way of example, in a number of Latin American markets there is a fondness for number-based games, as well as titles that are linked to animals and signs of the zodiac. Players in more mature markets across Western Europe favour games with more complex animation, while Asian players prefer content with a focus on higher volatility.

When it comes to the lottery draws that complement this kind of instant win and casino content, there are also regional intricacies in how jackpots are best delivered to the customer. In Jamaica, for example, players respond favourably to having several draws a day, while in other regions, a more effective approach involves a more rounded offering, with a blend of instant-win and entertaining content to support the draw event.

An approach that has the potential to form a core part of any lottery operator’s strategy for entry into new markets across the globe is turning to white label platform providers. White labels are unique in their ability to act as bespoke solutions, tailored to the specific needs of an individual market, while also being configurable to each market’s particular range of regulatory requirements.

With an ability to either integrate games quickly and efficiently into an operator’s existing site and technology stack, or simply provide the framework for the entire site, white label platforms are highly configurable to the requirements of each individual market. When it comes to the lottery experience that different regional markets demand, the variety is nearly endless, and white label platforms are particularly well placed to meet the challenges this presents, with the capability to push draws to players at their preferred frequency alongside their favoured style of instant win and slot titles.

Moreover, as new regulatory trends emerge, the platform and development roadmap must be adaptable to ensure that the products they offer are always compliant and relevant. Harnessing the ability to handle all aspects of the regulatory side of the business, white label platforms remove regulatory distractions, providing operators with the freedom they require to keep marketing and customer experience considerations front of mind.

In an industry where flexibility and speed to market is king, white label platforms provide operators with the autonomy to finesse their offering to the needs of each individual market. Operators would be well advised to note their potential to meet the requirements of audiences in Europe, Africa, Latin America and beyond.

It is no exaggeration to say that the gaming industry is at the crest of a wave of true innovation, with new operators and fresh product propositions coming to the fore what feels like a daily basis. Innovation is a word that sees its fair share of use across all technological industries, and gaming is no different – those that walked the halls of ICE in February will have struggled to move more than a few paces before being struck by another stand, display or sales pitch built around the concept.

However, while that wave of innovation is showing no signs of slowing down, it is one that the lottery industry has often had difficulty catching in recent years. The traditional draw-based lottery can trace its history back to medieval times, and the way in which people enjoy the game has not undergone a great deal of change in the centuries that followed.

The lottery sector’s need to innovate is highlighted by the aforementioned scramble in other gaming verticals to offer players the latest in new products and gaming technology. Many in the sportsbook, online casino and virtual sports space, among others, are following this trend, and the lottery sector must equal this hunger for innovation if it is to compete.

A streamlined alternative

If lottery is to continue to succeed in a rapidly changing and modernising marketplace, it must embrace both innovation and flexibility, and much of that must come at platform level.
A large number of modern lotteries are served by rigid, outdated technological platforms. While these may appear broadly workable in the eyes of an individual user, these can frequently prove poorly suited to meeting the varied demands of different regional markets. And with more markets than ever before showing signs of regulating, including areas such as Latin America, it is adaptability in the face of both customer demands and licensing requirements that will drive lotteries to success.

Bespoke platform solutions are increasingly the surest route to success in the modern lottery market, with scalable technology capable of being tailored to match the demands of a particular target audience. Providers and operators must maintain a full and open dialogue long after the technological integration has been completed, in order to most efficiently deliver a tailored user experience that keeps players coming back.

Furthermore, white label solutions can be a core part of the answer for operators faced with the challenges presented by rapidly evolving regulatory regimes. The capability of white labels to take care of everything on the regulatory side is invaluable for operators looking to exhibit true speed to market, while also giving them the freedom to focus entirely on their brand and market positioning, areas where their resources can be most effective.

Capitalise on instant win

Instant win games are currently skyrocketing in popularity across a large number of jurisdictions. While traditional lotteries remain relatively tried and true in the experience they provide to their player-base, instant-wins have had demonstrable success in providing short, engaging bursts of lottery-esque content, with many operators successfully incorporating them into their wider customer acquisition and retention strategies. Put simply, there is little doubt that effectively deployed instant win content can significantly elevate the traditional online lottery experience.

They are also highly flexible to the needs of individual brands, both in terms of mechanics and volatility as well as in themes and animations, giving operators far greater scope to provide their players with an offering streamlined to their brand proposition.

While instant wins are only one piece of the jigsaw when it comes to providing a lottery experience capable of both bringing in players and engaging them on a long-term basis, they can be a crucial factor in enlivening the modern lottery proposition.

The potential of the lottery market is not in question, and with players in markets all over the globe displaying a hunger for modern and exciting content, the need to approach those markets with flexible, innovative solutions has never been clearer. The opportunity is there – it is now up to the lottery industry to seize it.

It will not have escaped people in the sector that lottery has not ridden the same wave of innovation that much of the rest of gaming has in recent years.

Many modern lotteries are, in technological terms, built on the foundations of outdated and inflexible legacy platforms. While often serviceable in the eyes of an individual player, they can see operators run the risk of delivering an experience poorly tailored to the specific needs of different regional markets.

It is increasingly through the use of bespoke platform solutions that lottery operators will find success, with scalable technology that can be streamlined to perfectly line up with the demands of a brand’s particular target audience. This is especially true as the popularity of online lotteries grows on a global scale, particularly in emerging markets across Africa and Latin America.
We have found in our dealings in both regions that flexibility and building bespoke solutions in active dialogue with partners to be of paramount importance. It is only by working in close partnership and constant communication that a truly tailored lottery solution will be viable in the long term.

The regulatory landscape is constantly changing as markets emerge and regulate around the world. It will be operators with flexible platforms, capable of delivering on true speed to market that will be the ones to succeed in a marketplace that is showing no signs of slowing down. Partnering with a white label solution capable of handling everything on the regulatory end can be a solution for operators here, giving them the freedom to focus entirely on the brand and their market positioning.

The need for innovation in the lottery sector is placed into sharper focus by the increasingly crowded nature of the igaming industry at large. Lotteries are now competing for the attention of players with sportsbooks, online casinos and virtuals, all sectors that are falling over themselves to offer players the latest in gaming technology and innovative experiences. If the lottery sector is to compete, it must match this hunger for innovation.

The power of instant win

The buzz around instant win games has been building to a crescendo in recent years, and has become a consistent topic of discussion at industry conferences across the world. Operators are becoming more and more aware of the power of such games to enliven the traditional lottery experience offered on their sites.

For player’s after a quick burst of lottery-esque gameplay, instant win titles deliver. Combining a robust and bespoke platform offering with the most appealing instant win content can help to elevate an operator’s game play. The importance of these games in driving acquisition and retention for the modern lottery operator should not be understated.

The lottery market boasts significant potential, there to be tapped by operators in both established jurisdictions, such as the UK, and in emerging regions across Africa, Latin America and beyond. It is in embracing flexibility and new innovations like instant win games that they can harness this potential for their benefit.