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FRIDAYWEEK 7 MAY 18 2021 ASPIRE GLOBAL CEO Sponsored by EXCLUSIVE: ONLINE GAMING GROWTH WILL NOT SLOW DOWN THIS WEEK • Further acquisitions for AFTER THE PANDEMIC Catena, Better Collective • Bidders for William Hill’s European assets • 100% capacity for Wynn Las Vegas • Caesars and Red Rock report Q1 results GUEST COLUMNIST: • Farish Lakhani, VP Sales, International, See Also Page 3 Are operators the new Computop suppliers? LeoVegas and Penn National open their own game studios Sponsored by Aspire Global CEO Tsachi Maimon speaks exclusively to Gambling Insider following the publication of the supplier’s Q1 results, discussing the acquisition of BtoBet, US aspirations and the longevity of the online boom How much of your revenue growth was due to lockdowns “We believe the tier-one operators in and players staying at home to play? It was a question we asked ourselves in Q2 last year. It was the US will own their own technology. an unknown answer back then – we saw the boom. But then So we’re not intending to aggressively we thought it would normalise in Q3 or maybe Q4. It not approach the tier one, more with the only stayed, it grew from that perspective; so I believe a lot of players that experienced online with different products tier two, three and four operators” decided to stay. This is why I think our products succeeded to grow after normalisation in many countries we are working in. What percentage of the business does BtoBet account for and will that percentage grow long term? Do you see growth eventually slowing down once lockdowns Right now, it’s around 5% and we believe that, with the shift start to end worldwide? of our current operator portfolio and the additional plans we I think it won’t slow. There are two factors that are now have for it, it will be much higher in the medium and long term. accelerating as we see it in Aspire. We have several products we are offering operators. One thing we see is land-based How would you rate your progress in the US given the heavy companies are going online in a much faster way than before. competition for market share in states like New Jersey? Before, they thought about going online; now they see there is We see it from a few perspectives. One, there aren’t a lot of no other way than doing so. companies like Aspire that can sell more than one product. The second reason is it’s like bringing a kid something tasty If you take Evolution, they can sell live dealer and slots. – he doesn’t want to get rid of it. It’s the same for players when If you take Kambi, they sell only sport. If you take any other, they experience better, faster products online with a better they can sell one or two products. Aspire has the ability to return to player. They enjoy more from the same $10 they offer more than one product: its gaming platform, sport, spent offline, so the player will probably remain online. games, aggregation and managed services. So we really Those two reasons will make online grow even faster than before. have high potential for all of them in the US. More than that, we believe the tier-one operators in the How would you summarise progress since the acquisition of US will own their own technology. So we’re not intending to BtoBet and the synergies you’ve tried to achieve so far? aggressively approach the tier one, more with the tier two, We see benefits from two aspects here. Firstly, we’re taking three and four operators to drive long-term relationships. the great BtoBet product and putting it under the Aspire ecosystem. The operators that are already on our platform, How much of your future revenue do you see coming from we’ll shift them to BtoBet, which will achieve synergies the US – can it end up taking over the majority share of the and growth for both BtoBet and Aspire. From the second business? What’s nice in Aspire is more than 90% of our income comes from Europe. Now with BtoBet and the many possibilities we “It’s the same for players when they have, we opened up Africa, Latin America and the US. So I experience better, faster products believe those three will be the main contributors and the US will lead growth in the coming three, four, five years, for sure. online with a better return to player. But let’s not forget Latin America – it’s a huge continent and They enjoy more from the same $10 we already have Betfair and William Hill there; we have also they spent offline, so the player will signed Grupo Televisa, the biggest media house in Mexico. So we think this market has big growth opportunities. probably remain online” Finally, what are your immediate goals and targets for Q2? We cannot, as a public company, guide revenue. But if I talk perspective, which is not less important, Aspire is a strong, about achievements, in Q2 we want to roll out more of the known brand in Europe and BtoBet was less-known in Europe. operators we have signed and are planning to go live with. So with the push of Aspire behind, there is a great opportunity Secondly, one of the most important goals we have this year is for BtoBet to win European sport deals that, before, we were to go live with our own operators on our own sports solution. not able to compete for. Those are the two main things we are addressing in Q2. Sponsored by THIS WEEK IN LEOVEGAS AND PENN NATIONAL NUMBERS FORM OWN GAME STUDIOS Operator LeoVegas has launched Jay Snowden, president & CEO of Penn 64% its own game studio, Blue Guru National, said: “We are incredibly excited Games; the studio will be used to to be launching Penn Game Studios, Year-on-year rise in revenue for Gaming develop new and exclusive games. which is another important step in our Innovation Group Blue Guru Games has been created company’s evolution into the leading for Q1 2021 through a collaboration with the omni-channel provider of retail and LeoVegas Mobile Gaming Group and interactive gaming, sports betting LeoVentures; LeoVegas will own 85% and entertainment. of shares. “We will now have the ability to create Blue Guru Games will be able to exclusive content for our audiences, $1.05bn develop games for LeoVegas’ brands further leverage the Barstool Sports as well as contribute to other game brand and our database of 20 million Gross gaming revenue for Macau in April operators; the company hopes the mychoice customers, and create 2021, a 1% month- studio will be able to produce at least cross-marketing opportunities with on-month increase 20 games in the next two years. our brick and mortar facilities.” LeoVegas CEO, Gustaf Hagman, And again, it’s not as though Penn said: “For a long time we have created or LeoVegas were the first operator to exclusive games with the help of embark upon this journey. A prominent external providers, but now the time example is DraftKings, which acquired is right to take the step to do game SBTech when it became a public company; development entirely on our own. owning its own technology stack had 100% “Drawing from our data and casino always been a priority for the fantasy Capacity now knowledge we will be able to drive sports, sports betting and online allowed for The innovation and create games that gaming giant. Cosmopolitan of Las our customers truly enjoy. These may GI expert Verdict: Aspire Global CEO Vegas, approved by be everything from niche, local games Tsachi Maimon also spoke exclusively the Nevada Gaming Control Board for individual markets to broad to Gambling Insider on this topic. He international games. explained: “I don’t know if operators will The first games created by Blue Guru become suppliers because it’s a long Games are expected to be released journey from a B2C operator to become by the end of 2021. When exclusively a B2B supplier. But I believe operators, 43% speaking to Gambling Insider earlier this their main idea by owning some of the year, Hagman admitted becoming a B2B technology is to save the costs they Year-on-year rise in company could be a possibility for are paying to third parties. So I think revenue for Aspire Global for Q1 2021 the organisation. this is their main agenda. They can also LeoVegas, though, is not the first differentiate themselves with unique operator to take on supplier duties of its content, but this is something we can own. Nor, in fact, is it the first operator offer too through our games studio. stepping into the provider department “What LeoVegas did is not new, also in recent weeks. Betsson are doing it, Unibet and others Roughly 24 hours before LeoVegas’ are doing it already. In the US, I’m talking 3 announcement, Penn National Gaming more about owning the gaming platform Integrated resorts in confirmed a similar move over in the and sport – it’s something we see with Manila are now allowed US. Acquiring HitPoint Studios and DraftKings acquiring SBTech, 888 acquiring to start o ering online LuckPoint, the operator has “accelerated BetBright. We see more and more service for table games and slots (Solaire Resort & in-house game development and companies acquiring. Casino, Resorts World Manila, content creation.” “We want to engage with operators for and Okada Manila) The M&A culminates in the the long term, without thinking if they are establishment of Penn Game Studios, going to acquire their own technology the focused on creating exclusive online day after.