Deep Tech NEWS

The latest Mordor Intelligence report said that the Asia-Pacific casino gambling market generated a revenue of $2.02 billion (€1.8 billion) in the current year and is poised to register a compound annual growth rate greater than 6 percent during the forecast period. The study added that the casino gambling market of Asia Pacific operates through a combination of regulatory framework, tourism, and local demand.  

With a promising outlook for the whole industry in the region, many operators and platform providers are setting their sights on Asia. In an exclusive interview with SiGMA News, Alex Leese, CEO of Pronet Gaming, revealed plans to expand into the Asian market and establish an office in the Philippines. 

Leese outlined the company's goals for establishing a strong presence in Asia. "Midterm would be to fully establish ourselves over here in Asia across as many jurisdictions as we possibly can," he said. Pronet Gaming aims to replicate its success in Europe, Latin America, and Africa by focusing on constant innovation and maintaining strong partnerships. The company is an established platform provider which started in 2007. 

However, entering the diverse Asian market requires a tailored approach. Leese explained, "The biggest mistake we can make is to try to enter Asia with what we think works in all these various jurisdictions, from Vietnam and Cambodia right through to Indonesia." 

Leese emphasised the importance of localisation, stating, "We've always been good at localising ourselves, not just the product, but the team behind it. And that's where the feedback becomes really important." 

Leese also stressed the importance of selective partnerships. "It's easy to take on every operator that you meet at a show, but it's important to have some refinement around the qualification to ensure the partnership works in the long term."  

As part of its Asian expansion, Leese announced Pronet Gaming's plans to open an office in the Philippines, highlighting the company's commitment to the region. "We're extremely proud to be investing into the Philippines with a big office here and hopefully start to recruit a lot more staff in the region," he said. 

Looking ahead, Pronet Gaming aims to roll out its full turnkey solutions to a select group of operators in Asia. Leese emphasised the company's focus on innovation and futureproofing, stating, "Ensuring that we stay innovative and relevant is key. This includes AI and crypto-based solutions, which are absolutely crucial in this market." 

Leese shared, "One thing that we're working on right at this minute is actually having a crypto solution whereby a client is able to deposit, play, and actually potentially withdraw in crypto." 

As for the impact of AI, blockchain, and cryptocurrency on the gaming industry, Leese emphasised practicality, stating, "We have to sort of understand what is it that AI will add in a gaming context. For me, it's ultimately about personalisation." Leese said that AI can enhance player retention by predicting player behaviour and offering personalised content, which is crucial for B2C operators.  

Leese emphasised the importance of a consistent user experience across all channels. He explained, "Key items of any customer interface are available across every single channel." This approach ensures that users can seamlessly transition between online and retail betting solutions, enhancing their overall experience.  

Pronet Gaming won the Best Multi-Channel Provider award in the recently concluded SiGMA Asia Awards. Leese discussed the company's success in integrating and managing multiple channels across different markets. "The key to our success has been in the adaptability of what we provide to our operators," he explained.  

Upcoming SiGMA event: Click here to find out all about SiGMA East Europe powered by Soft2Bet happening in Budapest, September 2024.

In recent years, several tech innovations have been driving the iGaming industry forward. Among them are virtual reality (VR), augmented reality (AR), artificial intelligence (AI), machine learning (ML), blockchain, and crypto.   

In an exclusive interview with SiGMA News, Tecpinion’s Co-Founder and Chief Sales and Marketing Manager Manoj Trivedi said there's still a lot of untapped potential with emerging technologies like AI and blockchain in the iGaming sector. Tecpinion is an India-based software development studio providing solutions and services to iGaming and the Healthcare Industry.   

"AI, machine learning, and blockchain are booming keywords these days. While actual implementation has started, there is still a lot of untapped potential,” Trivedi said.  

Trivedi pointed out that many current applications of blockchain in iGaming are limited to cryptocurrencies. "The actual implementation of blockchain remains to be explored fully. There’s significant scope for innovation in these technologies within the gaming sector," he noted.  

"We [Tecpinion] offer ready-made solutions that are customisable based on specific requirements. Additionally, we provide staffing services and other customised software development solutions," Trivedi explained. Despite being based in India, Trivedi said Tecpinion's primary markets are in Europe, other Asian regions, and the United States due to unclear regulations in the Indian market. Trivedi added, "We are not dealing with any operators in the Indian market as of now."  

Trivedi told SiGMA News that Tecpinion's success lies in its ability to tailor solutions to various markets, ensuring that each product aligns with local preferences and requirements. "When we talk to a client, it’s not just development. It’s about understanding the ecosystem of the market where they’re going to launch," Trivedi emphasised. He noted that user preferences differ significantly across regions, influencing design and functionality choices.  

"For instance, some markets prefer simple, lightweight designs, while others favour complex interfaces with videos and infographics. Our development and design processes are structured to cater to these diverse needs," he elaborated.  

For example, in the Latin American market, vibrant colours and active videos are preferred, while the European market favours sophisticated and traditional modules. In regions like Africa, where internet bandwidth is a challenge, lightweight and simple interfaces are prioritised. "User experience is a top priority when we design or think about launching a platform," Trivedi affirmed.  

Operating in the iGaming sector presents unique challenges, particularly in navigating legal and regulatory landscapes. Trivedi highlighted that operators often seek consultation on which regions to launch and the type of products suitable for specific markets. While Tecpinion focuses on technology, it has built an ecosystem of partners to provide comprehensive support.  

"We have created an ecosystem of partners, including business consultants, legal teams, and marketing consultants. This allows us to offer a one-stop solution to operators, addressing both their technological and strategic needs," Trivedi said. This collaborative approach ensures that clients receive holistic support, enhancing their market entry and operational strategies.  

As the iGaming industry continues to evolve, the integration of AI and blockchain promises to bring transformative changes. Trivedi envisions a future where these technologies are fully implemented, offering enhanced security, transparency, and user engagement.  

"The technology is there, and it’s crucial for industries to adapt. There are still many opportunities for growth and innovation in AI, machine learning, and blockchain within iGaming," he concluded. 

Upcoming SiGMA event: Click here to find out all about SiGMA East Europe powered by Soft2Bet happening in Budapest, September 2024.

Bhuvan Bam, the famous Indian YouTuber and actor, filed a complaint about a deepfake video of himself that was published online. In the video, he appeared to be promoting a bookie offering bets on tennis tournaments.

Bhuvan Bam has a total of 26.4 million followers on YouTube, 19.4 million on Instagram, and 3.9 million on X, formerly known as Twitter, making him the perfect target. The popular Indian YouTuber warned his followers not to believe the viral video, which could potentially lead them to illegal or dangerous content. He urged his fans to be cautious to avoid financial losses. Bam filed a police complaint in Mumbai, resulting in the video being taken down.

He is not the first influencer to be targeted by deepfake schemes. Several Indian celebrities and actors have been deepfaked into videos promoting various political parties during recent elections.

As partnerships between the iGaming market and influencers are increasing, the government issued a warning to celebrities in March 2024 regarding advertising for unlicensed offshore online operators.

The Advertising Standards Council of India (ASCI) released a list in May 2023, naming celebrities who did not follow due diligence in advertising. Bhuvan Bam topped the list with seven cases of non-compliance and gaming was among the categories with the highest number of problematic content, alongside education, healthcare, and personal care.

According to ASCI, in 2023, complaints against celebrities increased by 803%, totalling 503 advertisements compared to 55 the previous year.

"The Consumer Protection Act now legally requires celebrities to do their due diligence when they appear in ads. However, in 97% of cases reviewed by ASCI involving celebrities, they failed to provide any evidence of due diligence," the report stated. Failing to do so, influencers can lead their followers to illegal schemes and financial losses.

Personalisation and micro-betting in iGaming are two emerging trends that the Great Britain Gambling Commission deemed concerning. Sarah Gardner, Deputy Chief Executive Officer of the organisation, stated that these trends require "serious thought."

Micro-betting is a new form of gambling that allows players to bet on specific "micro" events during a sports competition, rather than solely on the game's outcomes. For example, during a game, a player might bet on the number of yellow cards issued in the next 20 minutes. Bettors are drawn to these bets because they receive faster results and can place multiple micro-bets throughout the competition, compared to waiting for the overall game outcome.

The integration of sports betting into mobile apps has significantly contributed to the emergence and widespread adoption of micro-betting. Operators can now process bets and display odds almost instantly—time being crucial in micro-betting scenarios.

Detractors argue that micro-betting poses greater risks to players due to its speed, excitement, reliance on chance rather than sports knowledge, and potential appeal to problem gamblers.

The Chief of the Great Britain Gambling Commission also noted that the subjective nature of micro-betting leads to numerous disputes between players and operators. For instance, disagreements may arise over whether a specific action occurred during a game.

She explained that this subjectivity presents new challenges for operators and regulators: "Events like goals scored, corners given, or yellow cards shown are objective—they either happened or they didn't. That’s not so much the case on the increasingly popular player-level markets (or micro-betting). Whether a shot was taken, was on target, a tackle made and a variety of other micro-markets are ultimately more subjective. Once we introduce concepts which require a human being to make a subjective judgement, we introduce debate and argument. I’m not saying these micro-markets should not exist, but we have seen a notable increase in disputes from consumers where already higher-margin, multiple-selection bets now have elements which one person might see differently, especially when it makes the difference between winning and losing. “

Some types of bets similar to those described by Sarah Gardner are already prohibited in France by the ANJ, the French regulator. The ANJ has decided to ban bets that do not rely on the skill and sports knowledge of the bettors, insisting that bets must involve a sporting outcome. For example, it is not allowed to bet on "the colour of a player's socks or whether the number of goals scored will be even or odd," according to the ANJ guidelines.

The GB Gambling Commission is also concerned about operators' increasing interest in personalisation. Operators intend to use data collected during a bettor's gameplay to tailor future interactions. Each game played provides operators with more insights into the player's habits, enabling them to offer experiences perfectly suited to individual playing styles. Ultimately, the goal for operators is to maintain player engagement over extended periods.

"If products or their delivery increasingly align with a consumer's interests and engagement triggers, what risks does this pose in terms of managing the risks of excessive gambling?", warned Sarah Gardner from the GB Gambling Commission.

Conversely, operators argue that employing AI to monitor bettors' preferences and habits can help identify problem gambling behaviours and therefore protect players. AI, for instance, could detect behavioural shifts, such as increased betting frequency following important losses.

However, Charles Ritchie, co-founder of the charity Gambling with Lives, strongly disagrees with the notion that AI can effectively mitigate harm: "Claims that AI could reduce harm in the gambling industry are merely a smokescreen. We have clear evidence from many bereaved families we support that AI algorithms are simply not acted upon."

Wicked Games has been awarded the coveted Players’ Game of Choice award at this year’s Ortak x B.F.T.H. Arena Awards 2024. The awards night was held during Harmony Meetup V, an event for Web3 and iGaming enthusiasts, providing a platform for industry giants and innovators to exchange ideas, discuss and reveal upcoming trends and solutions.

Hosted by BetConstruct, the Ortak x B.F.T.H. Arena Awards serve as a prestigious platform for game developers to showcase their talents and compete for a part of the substantial prize pool of 3.3 million FTN, which according to the official Awards online page is equivalent to over 5 million euros. This year, the event included new award categories such as Best Online Casino Game, Best Game Design, and the one which deservedly went to Wicked Games, the Players’ Game of Choice. Ortak, launched by BetConstruct in January, is an innovative solution that allows casino game creators to sell shares of their games - NFT-slots - in self-determined quantities and prices (IPO).

The competition saw an unprecedented submission of 100 + games from over 70 providers. During the voting process, overseen by an independent compliance auditor, participants voted across multiple categories. For the Players’ Game of Choice award, players themselves had the opportunity to select the winner during the public voting.

Speaking to SiGMA News after the announcement, an elated James Davies, Regional Sales Director at Wicked Games commented, “This award means everything because it's from the players—the purest and harshest critics. Their feedback is raw and unfiltered, driven by their enjoyment and in this case, the game's potential. As an upcoming studio, their judgment was based purely on Eye of Bahamut, without any prior influence. On that, Eye of Bahamut delivered and we couldn’t be happier.”

Eye of Bahamut sees four daring explorers who travel through challenging terrains to retore the Eye of Bahamut. Failure in their quest results in Bahamut’s fury unleashing devastation upon the world. Players are transported into a realm ruled by mystical forces and legendary beings, offering an engaging, interactive experience that ultimately distinguished it among this year's entries.

Upcoming SiGMA event: The SiGMA East Europe Summit 2024 will be held in Budapest this September.

A U.S. judge in Massachusetts has rejected DraftKings’ attempt to dismiss a class action lawsuit. The lawsuit, initiated by buyers of its non-fungible tokens (NFTs), argues that these tokens are, in fact, investment contracts. This pivotal ruling paves the way for a future court trial that will scrutinize the classification of NFTs as securities.

DraftKings, a prominent player in the digital marketplace, offers sports-themed NFTs via the Polygon blockchain. The lawsuit was first filed by Justin Dufoe, an NFT buyer, on behalf of other owners in March 2023. Dufoe’s contention is that these NFTs satisfy the criteria of the Howey test, a test created by the Supreme Court to determine whether certain transactions qualify as investment contracts.

In the recent ruling, the court concurred that DraftKings’ NFTs involved an investment of money, pooled assets into a common enterprise with shared risks and profits, and created a reasonable expectation of profit from DraftKings’ efforts. As such, they could plausibly be classified as securities under the Howey test.

The court further noted that the value of the NFTs was dependent on the success of the DraftKings Marketplace. This observation aligns with findings from previous cases examining NFTs, where the value was found to move in tandem with interest in the specific marketplace.

Interestingly, this case follows a similar lawsuit faced by Dapper Labs. In June, Dapper Labs agreed to pay $4 million to settle a class action suit. The SEC had previously launched an investigation into Dapper Labs but closed it in September 2023.

A key difference between the NFTs offered by Dapper Labs and DraftKings is the blockchain they use. Dapper Labs uses its proprietary blockchain called Flow, while DraftKings issues its tokens on Polygon. The court determined that the use of Flow, a private chain, meant Dapper Labs ran a higher risk of violating securities laws. This is because its Flow blockchain created a dependency on Dapper’s managerial efforts and success, satisfying the Howey test criteria of a common enterprise and expectation of profit.

As of now, a date to continue the DraftKings class action suit has not been set. This case represents a significant step in the ongoing debate about the classification of NFTs as securities, and its outcome could have far-reaching implications for the future of digital assets.

SiGMA East Europe Summit powered by Soft2Bet, will take place in Budapest from 2-4 September 2024.

Truman Chia shared his insights on the role of Artificial Intelligence (AI) in the iGaming industry during the second day of the SiGMA Asia Summit 2024.

He highlighted how the iGaming industry has been revolutionized by AI. It’s not just about automating tasks, he says, it’s about enhancing the gaming experience, personalizing education, and setting new trends. According to Chia, AI has changed the game, providing quality education and training that was traditionally dependent on finding good teachers.

Chia shared the journey of a company that has embraced this revolution. The power of the cloud and algorithms to harness AI has expanded wisdom through machine learning. The journey has been about using new power and resources to work for the company.

In 2023, this company set core objectives for technological innovation. AI optimization has been achieved across all systems, programming, and multilingual integration capabilities.

Looking ahead, Chia sees a future where AI is ubiquitous. By 2030, companies adopting AI will decrease manual labour by 70 percent. AI-driven studies are focused on machine learning to reinforce learning and become the best.

Truman Chia then goes on to explore what happens when everyone uses AI? We all use the same language, train our own versions of AI. The core values and direction we’re heading in is to create our own digital human. Chia envisions a digital human army in each company, addressing the issue of not having enough time to do every job. This is set to change the whole gaming landscape in the iGaming industry.

However, building trust is crucial. In an era of fake information and fake news, Chia says that we must ensure the authenticity and reliability of our AI systems.

As we look forward to the limitless possibilities of the global AI revolution, Chia believes that companies will lead industry trends, pioneering a new era for cross-generational platforms. He invites everyone to join in crafting a future of luxury and excellence together.

The keynote at the SiGMA Asia Summit 2024 was delivered by Truman Chia is CEO of K36.

It was sponsored by Wicked Games.

Video gaming in India has undergone a significant transformation, evolving from a niche pastime to a nationwide phenomenon, aptly termed as the ‘Bharat’ revolution. This shift is not just a testament to the growing popularity of gaming but also a reflection of the changing socio-economic landscape of the country.

The Indian video gaming industry has been catalyzed by the exponential growth of India’s IT infrastructure, widespread adoption of smartphones, and the proliferation of high-speed internet connectivity. The evolution of the industry is evident in the rising percentage of gamers from non-metropolitan areas, which jumped from 57 percent in 2022 to 66 percent in 2023.

In today’s digital age, a unique space for video games is being created to celebrate Indian culture. These titles feature characters steeped in tradition, sending players on thrilling adventures across India’s varied landscapes. Prime Minister Narendra Modi has urged game developers to think beyond the commonly seen gaming universes, to try and include ‘Panchatantra’ in their games1. Such an initiative would not only celebrate our rich culture but would also educate children about our mythology and the values it brings.

Today, a significant transformation is underway, transcending mere entertainment and penetrating the fabric of the nation’s culture and economics. With a projected market size of $7.24 billion by 2029, India has emerged as a strong player in the global gaming arena, propelled by the world’s largest youth population.

With the world’s second-largest smartphone user base, India boasts of a 10 percent share of the global gaming audience. The average Indian internet user prioritizes content in their native language, often being multilingual. While Hindi localization is crucial, including regional languages like Tamil, Kannada, Telugu, Odia, and Bengali can unlock a vast market of gamers who primarily use languages other than Hindi or English.

This approach can also foster new employment opportunities within the video gaming industry, where individuals can develop games without requiring fluency in Hindi or English. The gaming userbase surpassed 365 million in March 2020. Mobile users form an overwhelming 85 percent of the industry, followed by PC users at 11 percent and tablet users at 4 percent.

The COVID-19 pandemic saw a shift in media and entertainment consumption trends, with KPMG estimating a 20 percent contraction in 2020 in typical segments such as film, TV, and print. In contrast, they foresee rapid change to gaming and digital media consumption, projecting global growth bouncing up to 33 percent to reach $25.4 billion in 2021.

The rise of video gaming in India is not just a trend but a revolution that is reshaping the cultural and economic fabric of the nation. As the ‘Bharat’ phenomenon continues to unfold, it will be interesting to see how it shapes the future of the global gaming industry.

At the the SiGMA Asia Summit 2024 which was held in Manila this week, a panel of industry experts, moderated by NYCE International MD Harmen Brenninkmeijer, offered a realistic evaluation of the current state of convergence between land-based and online gaming. The concept of omnichannel gaming, while frequently discussed with optimism, is yet to see many successful implementations in the market.

The panel acknowledged the potential of server-based slots integrated with the casino floor through the CMS, suggesting the existence of omnichannel. However, the challenge lies in data collection and analysis, given the stark differences between office and online games, as well as the player profiles.

The panel noted that while a multitude of games are created, the number of games actually being played is less clear. Online players tend to spend less, and the success of live slots is largely due to the trust factor, with players preferring real slot machines over virtual ones. Offline slot players, on the other hand, are often looking for a longer gaming experience.

The panel, which included Kurt Quartier, President of Tyche Gaming International, and Joe Pisano, Jade Group CEO, agreed that there are few true examples of omnichannel gaming today, with the need for integration of various elements like wallets and slots.

Despite this, the panel also highlighted the benefits land-based casinos have seen from iGaming. Angel Sueiro, PH Resorts COO, viewed iGaming as an opportunity rather than a threat, with Pisano noting that online gaming has increased foot traffic to casinos, citing Caesars as an example.

Quartier added that the most popular online products are often based on traditional land-based games. While the components for omnichannel gaming exist in the market, the panel, concluded with Yu-Sien Low of Moloco Singapore, agreed that the gaming industry still has a significant journey ahead to fully realize true omnichannel gaming.

MyPrize, a Silicon Valley-backed crypto operator, has launched its innovative online casino platform in international markets, and a sweepstakes platform for US users. This comes after securing a substantial $13 million in funding from Silicon Valley venture capital firms over two funding rounds, catapulting the company to a total enterprise value of $140 million.

The platform is unique in its offering, integrating live streaming and multiplayer gameplay. This allows users to interact with content creators in dedicated rooms, fostering a sense of community and engagement. The start-up’s funding rounds were spearheaded by Dragonfly and Boxcars Ventures, with additional participation from investors such as Arrington Capital, Pudgy Penguins CEO Luca Netz, and Blockchain.com CEO Peter Smith, among others.

At the helm of MyPrize is CEO Zach Bruch, (pictured above), a seasoned entrepreneur who previously ran Recur, an NFT platform that raised a $50 million Series A before closing its doors two years later, in August 2023. Bruch was also one of the top traders using FTX and is one of nine people chosen by the US Department of Justice to serve on the FTX creditor’s committee to help recover the funds FTX’s millions of users lost.

MyPrize aims to disrupt the online casino space by offering social interaction and bonding akin to a live casino experience. Players can chat with their friends and stream themselves playing through MyPrize’s Bet Together technology, which allows creators to engage directly with their fans. Players can also assemble a group of friends or join their favourite online streamer on MyPrize to play casino mainstays including blackjack, slots, roulette, Plinko, scratch cards, crash, mines, and more.

Over 150,000 users have already signed up for MyPrize and MyPrize US during the early access period. MyPrize promises creators uncapped earning potential and a departure from traditional ad sales models. Steamers can generate profits by onboarding new users, but they also earn rewards for interacting with their community and keeping them engaged.

MyPrize users will be able to withdraw their in-game USD as cryptocurrency, while MyPrize US users will be able to enter sweepstakes contests for the chance to win real prizes, including cryptocurrency. This, the company believes, will turn MyPrize into a “major driver for onboarding new users into the Web3 ecosystem.”