Petter Nylander, an experienced business leader, talked to us and shared some of his thoughts about the reregulation.
“One thing we know for sure is that consumers will always gamble and enjoy themselves. However, the way we gamble will driven by a mix of technology, markets dynamics and political will.
If we look at the latest form of Gambling we can look back at a very dynamic development over the last 20 years driven by the modern form of internet and the emergence of e-commerce. I think we are now in the Second and Third way of how technology, market dynamics and political will is transforming the landscape yet again.”
The Second wave
“When politicians and regulators across the world realize that they would make more money by regulating and controlling the market this will continue to drive a continued re-regulation with some exceptions of cultural habits and traditions. In county after country we see that on-line gambling is being re-regulated increasing the entry barriers for the numbers of brands a market can profitably sustain. Michael Porters (The Porter-curve) best describes what will most likely happen; either you become a generalist, with a wide offer and marketing to reach a top 3 position, or you focus on a niche with a very lean cost base to become profitable. This will of course lead to consolidation and a healthier more sustainable markets in the best interest of the society, consumers, regulators and operators.”
The Third wave
“When markets do re-regulate this will trigger and open-up to a new group of entrants who sit on valuable assets such as brands, databases and/or media assets. With a new omnichannel approach this can become a very valuable new revenue stream to the existing business with a healthy conversion from incremental revenue to profits in a more predictable and regulated environment.”