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Vendor Landscape: iGaming Platforms

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1 Vendor Landscape: iGaming Platforms
Choosing the right partner is critical when bringing your brick and mortar into the online world. Info-Tech's products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns.© Info-Tech Research Group

2 Introduction As gaming markets open up, operators are vying to establish and advance their brand among patrons both new and old while generating additional revenues. To do this successfully, most are looking for the right partner with which to venture into this virtual world. During the last 12 months, there have been many substantial acquisitions and iGaming industry consolidations. Anticipate further vendor and solution consolidation. This Research Is Designed For: This Research Will Help You: Operators seeking to select a platform for managing an online/iGaming casino. iGaming use case may include: Promoting an existing brick-and-mortar casino brand. Creating a new online brand and casino. Understand what’s new in the iGaming market. Evaluate online gaming vendors and platforms for your enterprise needs. Determine which products are most appropriate for particular use cases and scenarios.

3 Market Overview How it got here Where it’s going
Internet gaming started seeing real growth following the Free Trade and Processing Zone Act in Antigua. It wasn’t long before companies began developing solutions to feed this new market, with Microgaming gaining an early lead. In October 1996, InterCasino launched the first internet casino that could take actual money bets. Within three years, 700 internet casinos popped up taking real money wagers. The industry continued to develop with Boss Media, the first to offer multi-player games, allowing players to interact with one another and form communities. The Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006 set the industry back. While iGaming has continued to bloom in markets abroad, the US has always had tense relations with regulators. Today there are three U.S. states that offer varying degrees of regulation (New Jersey, Nevada, and Delaware) and the expectation is that other states will follow. Canadian provinces British Columbia, Manitoba, and Quebec also offer regulation, with Ontario joining them soon. The future of the iGaming market is somewhat of a mystery at this point. There’s a lot of speculation as to whether US regulations will continue to shift slowly state by state, or whether a federal change will take place. This is crucial because the key to profiting from iGaming will likely come down to leveraging interstate liquidity. With so many eager players, erasing the borders between customers could be the only path to survival. As regulations loosen in the US, online poker looks as though it may be treated a little more leniently than other types of gambling. Online poker has always been a popular product, often used as a marketing gateway to the other types of online betting (e.g. sports, casino). Currently, a lot of organizations have created play-for-fun and virtual currency sites. While these don’t support actual gambling, they have been used as a marketing device for brick-and-mortar operations. Moreover, play- for-fun sites develop an online brand that could potentially be leveraged once play-for-pay sites are legalized. As the market evolves, capabilities that were once cutting edge become default and new functionality becomes differentiating. Supporting game content from third-party providers has become a Table Stakes capability and should no longer be used to differentiate solutions. Instead focus on marketing integrations and social media capabilities to get the best fit for your requirements.

4 Included in this Vendor Landscape:
iGaming Platform Vendor selection / knock-out criteria: market share, mind share, and platform coverage The industry is at a high point of tension as the world, and especially the United States, waits to see how regulations will fall. Given this uncertainty and the unfamiliar nature of online casinos to most operators, Info-Tech has chosen experienced vendors who have already proven themselves in regulated, legal markets in the US, Canada, and Europe. For this Vendor Landscape, Info-Tech focused on those vendors that offer broad capabilities across multiple platforms and that have a strong market presence and/or reputational presence among mid to large-sized enterprises. Amaya. Amaya is a Canadian company that has always been focused on the iGaming market. It has grown and diversified substantially in the last few years, first through its business arrangement with Chartwell Technology, Inc., and then its acquisition of Cryptologic Limited & Rational Group (PokerStars, Full Tilt). Aristocrat. This Australian-based company is one of the world’s largest gaming machine manufacturers. Aristocrat’s iGaming offering has grown significantly since its source code acquisition from GameAccount Network (2012), including a partnership with Ongame to provide online poker. Bally. Bally is one of the most trusted names in land-based gaming with more than 80 years in casino machine manufacturing. Bally’s iGaming platform is a fairly new offering and the company was recently acquired by Scientific Games. Gamesys. Gamesys has earned its name in the iGaming space through its work in social gaming. It is responsible for the introduction of the first real-money gambling game on Facebook, currently only available in the UK. It has partnered with regulated operators (Tropicana and Caesars) in the past. GameAccount Network. GameAccount Network is a global online gaming software provider that started in B2C and quickly moved to B2B. It offers online and land-based gaming operators a solution for regulated real-money, virtual, and for fun online gaming. GTECH. GTECH is part of the GTECH S.p.A group, formerly Lottomatica Group, offering an online platform and hundreds of proprietary games, primarily in Europe and North America. It has recently purchased IGT to combine game content library, manufacturing & operator capabilities, and interactive solutions. Included in this Vendor Landscape:

5 Included in this Vendor Landscape, Continued:
iGaming Platform Vendor selection / knock-out criteria: market share, mind share, and platform coverage 888 Holdings. 888 Holdings has a large online gaming presence, particularly in the poker area. It launched its first online casino product in 1997 called Casino-on-Net and has since entered into other areas of online gaming, such as bingo and sports betting. Microgaming. Microgaming has always been central to this market. It’s credited with creating one of the first virtual casinos in 1994 and is recognized as one of the world’s largest providers of online gaming software. OpenBet. OpenBet is a UK-based company, focused exclusively on online gaming. It has online casino, poker, and sports-betting modules with a single centralized account. Scientific Games Sciplay. Sciplay is a wholly owned subsidiary of Scientific Games Corporation, and provides a turnkey solution including system software, game content, operational services, and player support. Scientific Games recently acquired WMS and Bally. Williams Interactive. Williams Interactive was formed by WMS Industries in July 2012 to focus solely on iGaming, creating an end-to-end solution for online operators. Scientific Games recently announced that it is acquiring WMS Industries to further expand its online offering. Included in this Vendor Landscape, Continued: Security: Whether your iGaming platform is self-hosted or in the vendor’s cloud, security needs to be front of mind. While vendors use varying degrees of security, encryption of player and financial data at rest and in transit along with layers of security and cyber threat prevention tools are mandatory. Review contracts and deployment models with this in mind and ensure to purchase or amend cyber-insurance to offset the very real risks of iGaming. Procurement/Pricing: There are various pricing models of iGaming solutions and uses. Ranging from percent split of net gaming revenue after taxes for “real money” uses, to fixed cost per month for “for play” uses, to direct commercial agreements with third party content providers. Leverage your relationships and land-based game buying power to negotiate lower rates and prices. Info-Tech Insight

6 Online Casino Platform criteria & weighting factors
Product Evaluation Criteria Criteria Weighting: Features The solution provides basic and advanced feature/functionality. Features Architecture Usability The end-user and administrative interfaces are intuitive and offer streamlined workflow. Architecture Multiple deployment options and extensive scalability capabilities are available. Usability Product Vendor Evaluation Criteria Viability Vendor is profitable, knowledgeable, and will be around for the long term. Strategy Vendor is committed to the space and has a future product and portfolio roadmap. Vendor Viability Strategy Reach Vendor offers global coverage and is able to sell and provide post-sales support. Integration Extensive integrations with both online content and core casino systems. Reach Integration

7 Table Stakes represent the minimum standard; without these, a product doesn’t even get reviewed
The Table Stakes Feature What it is: Cashier Functionality Allows players to deposit and withdraw cash automatically. What Does This Mean? Slot Functionality Platform is able to support basic slot games. The products assessed in this Vendor LandscapeTM meet, at the very least, the requirements outlined as Table Stakes. Many of the vendors go above and beyond the outlined Table Stakes, some even do so in multiple categories. This section aims to highlight the products’ capabilities in excess of the criteria listed here. Responsible Gaming Supports features including age verification, deposit limits, and self-exclusion. Content Comes complete with game content which can be either proprietary or from third-party providers. Multi-Currency The platform is able to support payouts and deposits in multiple currencies. Multi-Language The platform is able to support multiple languages. If Table Stakes are all you need from your iGaming Casino Platform solution, the only true differentiator for the organization is price. Otherwise, dig deeper to find the best price to value for your needs.

8 Advanced Features are the capabilities that allow for granular market differentiation
Scoring Methodology Advanced Features Info-Tech scored each vendor’s features offering as a summation of their individual scores across the listed advanced features. Vendors were given one point for each feature the product inherently provided. Some categories were scored on a more granular scale with vendors receiving half points. Feature What we looked for: Bank Options Gives users the choice of making deposits through debit, credit, or e-wallets. Marketing and Loyalty Incorporates targeted marketing, promotion and performance tracking, and/or loyalty systems. Multi-Player Games Users can play against other live players rather than just against computer-generated players. Reporting Stock reporting templates and/or customizable templates come built into the solution. Security Features advanced layer security with 40-bit SLL, a dedicated VPN, and security licenses. Virtual Currency Configurable for playing real money for virtual goods including extra lives, bonus features, etc. White-Label Capability Platform is fully customizable, including dealers, casino lobby, card backs, table appearance, etc. Game Content Variety Has a volume of game titles, availability of poker, bingo, lottery, popular brands, third party games, etc. Social Media Integration with social media channels and in-game social features. For an explanation of how Advanced Features are determined, see Information Presentation – Feature Ranks (Stop Lights) in the Appendix.

9 Appendix Vendor Landscape Methodology: Overview
Vendor Landscape Methodology: Product Selection & Information Gathering Vendor Landscape Methodology: Scoring Vendor Landscape Methodology: Information Presentation Vendor Landscape Methodology: Fact Check & Publication

10 Vendor Landscape Methodology: Overview
Info-Tech’s Vendor Landscapes are research materials that review a particular IT market space, evaluating the strengths and abilities of both the products available in that space, as well as the vendors of those products. These materials are created by a team of dedicated analysts operating under the direction of a senior subject matter expert over a period of six weeks. Evaluations weigh selected vendors and their products (collectively “solutions”) on the following six criteria to determine overall standing: Features: The presence of advanced and market-differentiating capabilities. Usability: The intuitiveness, power, and integrated nature of administrative consoles and client software components. Architecture: The degree of integration with the vendor’s other tools, flexibility of deployment, and breadth of platform applicability. Viability: The stability of the company as measured by its history in the market, the size of its client base, and its financial performance. Strategy: The commitment to both the market-space, as well as to the various sized clients (small, mid-sized, and enterprise clients). Reach: The ability of the vendor to support its products on a global scale. Evaluated solutions are plotted on a standard two by two matrix: Champions: Both the product and the vendor receive scores that are above the average score for the evaluated group. Innovators: The product receives a score that is above the average score for the evaluated group, but the vendor receives a score that is below the average score for the evaluated group. Market Pillars: The product receives a score that is below the average score for the evaluated group, but the vendor receives a score that is above the average score for the evaluated group. Emerging Players: Both the product and the vendor receive scores that are below the average score for the evaluated group. Info-Tech’s Vendor Landscapes are researched and produced according to a strictly adhered to process that includes the following steps: Vendor/product selection Information gathering Vendor/product scoring Information presentation Fact checking Publication This document outlines how each of these steps is conducted.

11 Vendor Landscape Methodology: Vendor/Product Selection & Information Gathering
Info-Tech works closely with its client base to solicit guidance in terms of understanding the vendors with whom clients wish to work and the products that they wish evaluated; this demand pool forms the basis of the vendor selection process for Vendor Landscapes. Balancing this demand, Info-Tech also relies upon the deep subject matter expertise and market awareness of its Senior, Lead, and Principle Research Analysts to ensure that appropriate solutions are included in the evaluation. As an aspect of that expertise and awareness, Info-Tech’s analysts may, at their discretion, determine the specific capabilities that are required of the products under evaluation, and include in the Vendor Landscape only those solutions that meet all specified requirements. Information on vendors and products is gathered in a number of ways via a number of channels. Initially, a request package is submitted to vendors to solicit information on a broad range of topics. The request package includes: A detailed survey. A request for reference clients. A request for a briefing and, where applicable, guided product demonstration. These request packages are distributed approximately twelve weeks prior to the initiation of the actual research project to allow vendors ample time to consolidate the required information and schedule appropriate resources. During the course of the research project, briefings and demonstrations are scheduled (generally for one hour each session, though more time is scheduled as required) to allow the analyst team to discuss the information provided in the survey, validate vendor claims, and gain direct exposure to the evaluated products. Additionally, an end-user survey is circulated to Info-Tech’s client base and vendor-supplied reference accounts are interviewed to solicit their feedback on their experiences with the evaluated solutions and with the vendors of those solutions. These materials are supplemented by a thorough review of all product briefs, technical manuals, and publicly available marketing materials about the product, as well as about the vendor itself. Refusal by a vendor to supply completed surveys or submit to participation in briefings and demonstrations does not eliminate a vendor from inclusion in the evaluation. Where analyst and client input has determined that a vendor belongs in a particular evaluation, it will be evaluated as best as possible based on publicly available materials only. As these materials are not as comprehensive as a survey, briefing, and demonstration, the possibility exists that the evaluation may not be as thorough or accurate. Since Info-Tech includes vendors regardless of vendor participation, it is always in the vendor’s best interest to participate fully. All information is recorded and catalogued, as required, to facilitate scoring and for future reference.

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