Gamblit says in talks with other operators to bring skill-based gaming to more casinos after Caesars deal

The problem for operators nowadays is how to get Millennials to spend more time on the casino floor. Even though gambling giants have upgraded visual displays, introducing plasma screens and themed cabinets based on T.V. shows and films in an effort to attract younger demographic, technology has remained much the same. Is the gambling industry ready for a paradigm shift? How do you assess the U.S. regulatory framework? In your opinion, why is it taking so long for the U.S. to allow for gambling expansion in all its forms?

I think it is quite clear that the casino industry is ready for a paradigm shift. The motivators for this are borne out in the data, whether it be flat to sagging revenues, or in markets where growth is exhibited, a trend towards an increasing average age of the wagering dollar. I think it would be myopic to assume that fundamental shifts seen in uptake of traditional products and services in other industries as a result of the emergence of the younger population, the internet and digital media, entertainment and delivery would somehow bypass the casino industry. Of course it will come to bear, and the signs are it already has. For operators, figuring this out and tuning the offering will take time, so there is an urgency developing to get moving on the process.

“

“

The regulatory framework is showing signs of ramping up to address the challenge. Although the number of jurisdictions which have explicitly embraced skill gaming are still small in number, several are now seeking advising and taking input on making amendments

”

Within any given month now, we see a new one or two coming forward to seek input on new standards and regulations to enable new gaming forms. I think the US has been slow because the system traditionally relied on suppliers to come forward with products and seek regulation change to support new innovations. Next gen gaming forms are just coming off the press now, so regulators will be able to use these to help understand where regulation changes are needed. But because financial performance results are under stress, I think you’ll see a shift in the regulatory bodies to be more proactive in adapting regulations, rather than wait for someone to agitate it. So we see it as a ramping process as it stands. Surprisingly, there is broader flexibility out there today than what is explicitly called out for in new standards, so the art form is to shape the offerings to fit what is allowed today, and enhance those offerings as regulations open up.

Recently, you announced a multi-year agreement pursuant to which Caesars Entertainment will be the first casino operator to bring your skill-based gaming positions to market. California and Nevada will be the first States to deploy your games, Will other States follow? Are you planning to expand your offering into other Caesars properties in the coming months? Are you in talks with other casino operators?

Gamblit is far along in discussions and negotiations with a number of other operators, and so we’ll be opportunistic on roll out. It would go to follow that on states roll out plan will pair up with the geography of where the lead adopters are.

The gambling industry in the U.S. is going through a period of transition shaped by a range of factors, some of which have their roots within the country, while others are related to the natural affairs of the international scenario. How would you describe the current state of gambling? What does the future have in store for the sector?

Overall, it would appear to be a fully mature market for traditional gaming. As discussed earlier, the assumption should not be that the status quo will continue indefinitely into the future, but rather adaptation will be required. The changing demographic pressures are seen worldwide and we are in discussions with international operators as well. It is also important to note that there are a number of segments when it comes to the gambling industry, and some of these are very likely to endure in a healthy from into the foreseeable future. Other segments are where struggles will be seen, or where entrenched products may find competition from new variants (think sports book and Daily Fantasy Sports). No one can reliably predict the future, but with that caveat, I think you’ll find new technologies which are exploding in other sectors, will come to fundamentally impact what we think of as tried and true traditional gaming. I feel pretty certain that will come to pass. The bigger “gamble” is trying to predict how quickly it will happen. Given the rate of progression of technology, I would think we may see a lot of change by the middle of the next decade.

Gamblit will be taking part in the upcoming G2E in Las Vegas. Can you give us a preview on what we can expect at the show?

We have several exciting products and demonstrations going on in the booth. Our core product platforms, the Model GTM and TriStationTM will be loaded with several new exciting games, including games licensed from content providers from the video games industry. These titles have 10’s of millions of downloads, and tons of monthly active users. This is a new format for the industry, whereas instead of just licensing a title to theme a slot machines, these are the actual games which have been integrated for real money gaming on floors.

“

“

We are showing our new G-Sports platform that enables slot operations to bring esports onto floors in a form which allows them to monetize it

”

If you consider that esports are really a venue event, and maybe someday a sports book product, how does the slots department participate? Gamblit will be showing a system on how to do that.

We are showing a new dealer attended felt table game, adapted from Gamblit Poker. Now, table operations will have a product built from the ground up for the younger players, scaled to their wallets. We are hoping that members of the table departments will come by, play the game, and see how they can migrate to address the demographic shift right along with the slots department.

“

“

We also have a mind blowing product to anchor a next generation gaming zone and draw in the younger casino patrons

”

A hybrid of esports and a community betting game, our new Virtual Reality gaming platform, the VRC™ (Virtual Reality Cube) will be showcased in the booth and is something operators really don’t want to miss. Seeing and playing it will certainly illuminate what I’ve spoken to in this interview. The purpose of the VRC is to round out the holistic next generation casino experience, because we believe it will take a variety of gaming forms to achieve success in the paradigm shift that we believe lays ahead.

What's next for Gamblit?

I think that can be easily answered by the reader after spending a few minutes in Gamblit’s booth at G2E this year. Gamblit wants to be the industry’s one-stop-shop for next gen gaming products designed from the ground up for younger casino patrons.