SiGMA News interviews Michael Pedersen, CCO at Livespins, to uncover the reasons behind online gambling operators’ apprehension towards casino and slot streaming.
Online gambling operators seem a little nervous when it comes to embracing casino and slot streaming. Why do you think this is?
It’s mostly down to RG and brand reputation concerns as well as underestimating the size of the opportunity and how to leverage it. Just to be clear, the opportunity is big – in 2021, the slots category on Twitch had more than 280 million hours watched. One year later, that surpassed 400 million hours watched. Not only are these numbers themselves staggering, but so too is the year-on-year growth that casino and slot streaming has enjoyed.
Twitch’s decision to ban some online casino brands from its platform undoubtedly added to operator hesitancy with many thinking it meant that Twitch had banned online casino and slot streaming period. That was not the case – they simply introduced a blacklist for operators no longer allowed to use the platform. We had anticipated something like this coming but thought Twitch would introduce a whitelist of approved brands similar to YouTube where you need to apply for the right to stream on its platform.
But there are more effective ways for operators to provide slot streaming experiences to their players that are more engaging, more rewarding and more responsible than Twitch. When operators come to understand the size of the market and that they can access it via responsible and compliant platforms such as Livespins (players have passed through the registration process and have had their identity and age verified before playing), they will be quick to integrate it into their lobbies and offer streaming experiences to existing and new players with the blessing of their compliance teams as well.
Does streaming provide a route for operators to access new player audiences? It seems you can’t mention streaming without Millennials and Generation Z.
Streaming is popular with Millennials and Generation Z audiences, but these cohorts are not as young as you’d first think – Millennials are now approaching their 40s and Gen Z their 30s. These players are from the connected video game generation where they could connect and play with both friends and strangers on their Playstations and Xboxes, and are seeking social interaction when spending their entertainment hours today. Streaming provides this, with participants able to follow the action taking place across the reels while chatting with the streamer and each other throughout. Livespins actually takes this to the next level by allowing them to bet behind the streamer, creating a group bet and a shared experience.
Because Livespins sits within the casino lobby, it is a powerful driver of loyalty and retention. It provides existing players with a new way to experience online casino and then keeps them engaged for much longer than slots and table games. Operators can also use it to multicast, which means the stream would go into their lobby as well as on platforms such as Twitch, DLive or Kick, etc. Of course, Livespins can be used as part of marketing campaigns and bonus offers to attract new players to the casino brand, and the appeal of our product extends beyond just Millennials and Generation Z.
Is retention an area that operators need to focus on more and how can Livespins help here?
Most operators will have a team of marketing specialists that have developed comprehensive plans and strategies for both acquisition and retention, but they might not be aware of how slot streaming can be added to the mix. Huge sums are spent on campaigns that take in above-the-line TV and radio ads, big bonuses and even brand ambassadors – but keeping players is just as important as onboarding them in the first place. A product such as Livespins can be a game-changer here. For example, an operator can extract more value from a brand ambassador partnership by dropping them into the Livespins experience. Players can then tune in to their streaming session and even bet behind the celebrity, sports star, etc. This campaign can then be activated through social media, newsletters, on-site banners or any of the other tools found in a marketer’s box, increasing the overall ROI for the operator.
Where should streaming experiences such as Livespins be positioned in operator game lobbies?
Right now, Livespins is a casino-only product, but we do see it going beyond this to cover sports betting and esports. Instead of betting behind a casino streamer, you could easily be betting in-play or live betting behind an ex-football player or an NFL pundit tapping into their expertise to guide your wagers. We are experimenting with this but, in the meantime, offer a happy medium with some of our casino streamers chatting about sports while they spin the reels.
Is the streaming opportunity limited to operators or is there scope for studios to get in on the action?
The opportunity is just as big for studios. At Livespins, we have partnered with some of the biggest developers in the industry so that our streamers can access in-demand slots for their streams. Not only can studios benefit from the exposure of streamers playing their games and showcasing them to players, but they can also “unbox” new titles and talk players through the gameplay and bonus features. Livespins actually offers studios a commercial model where they are paid for adding their content to Livespins and when they are played by our streamers. Game promotion is an area that more studios are keen to explore given the fierce competition they face for player and operator attention, and Livespins is a highly effective way of driving awareness of their name and their slots.
Is streaming the future of online casinos?
If you look at entertainment options outside of the igaming industry, the likes of Apple, Netflix and Disney Plus are pushing digital connectedness a lot more with audiences able to share movies together and comment while watching them in their own living room and other things like that. There is a lot more to come with this, and if online casino operators do not step up and follow this trend, they will miss out. That’s not to say that all casino players will want to engage with live streaming experiences – the traditional experience will be popular for many decades to come – but there is a growing player segment that is looking to do more than just hit the spin button. We firmly believe that Livespins offers a very good alternative to this.
Join in on SiGMA Group’s next adventure to the Philippines
As the inaugural SiGMA Americas and BiS Summit in São Paulo, Brazil concludes with resounding success, the journey into the captivating world of iGaming continues with the highly anticipated SiGMA Asia Summit.
Set your sights on Manila this July as we invite you to immerse yourself in a PAGCOR-endorsed event that promises an extraordinary exploration of the Asian and Philippine gaming markets. Prepare for an exhilarating experience as we delve into in-depth discussions on gaming regulation, industry trends, and the boundless possibilities that lie ahead.
