"It is essential that there is an analysis of the UK stake reduction impact on the problem gambling rates"

How would you describe SG Gaming's specific contributions to tackle problem gambling in the UK, and what progress have you seen in this field throughout the year?

Responsible gambling remains at the very core of what we do, and we continue to ensure our offering includes the latest measures. Currently, there are three main areas of focus for us. Firstly, the implementation of Anonymous Player Awareness Scheme (APAS). As one of the chief suppliers of gaming terminals in the UK, we have been working closely with UK operators to develop technology that uses artificial intelligence algorithms to spot play that could be leading to addictive behaviour. For example, this might be players chasing losses with increased bets to counter heavy losses. Pop-up messages are triggered to suggest it might be time to take a break, while shop staff are also alerted to consider an intervention. Importantly, the whole thing is done anonymously, saving the need for a player card. APAS has been introduced into the LBO estate and we are working to expand this initiative to other retail gaming sectors.

The roll-out of APAS in UK betting shops in November of 2019 is potentially game-changing for the industry in the wake of the government’s decision to drop the maximum bet on gaming terminals. As one of the chief suppliers of gaming terminals in the UK, we work closely with all our UK bookmaker partners to implement this technology and continue to adapt and develop accordingly. SG continues to adapt and evolve safer gambling products, as that is a key part of the overall product roadmap.

Secondly, we have identified the benefits of using our SG Vision technology as a tool for responsible gaming. SG Vision combines object recognition, computer vision and biometrics and can provide insight into player behaviour. We have worked in close collaboration with both the Gambling Commission and a leading UK operator to put SG Vision into practice. SG Vision puts cameras in gaming machines, lottery terminals and games tables that will help identify players - albeit anonymously. This can be used to verify players’ ages but perhaps more excitingly, it could also be used in conjunction with APAS. SG Vision can then generate a unique ID for every player that can be shared across different locations and different companies, meaning that a player that has self-excluded or been warned about irresponsible behaviour cannot just leave a venue, pop into another, and carry on gambling. 

Thirdly, I am personally also working closely with the Gambling Commission on the creation of a new ‘code of conduct’ for game designers, which will stand as an industry-wide set of principles to be factored into game design. This will provide players with as much information as possible to help them make more informed decisions and ultimately create a safer gaming environment. 

In an environment where the media, politicians and regulators are increasingly demanding the industry takes greater responsibility for player protection, these three steps will help contribute to creating a safer and entertaining gaming environment for all.  

What’s your current view on the new £2 stake reduction, and its effects both in your company, the players and the UK gaming industry in general? 

The stake reduction has undoubtedly had a huge impact on the UK gaming industry. You only need to look at the huge number of shop closures over the past year to see this. However, as a business, it has helped us self-reflect and learn. We continue adapting to challenges to help the industry grow. This is why it has never been more important to ensure there is constant innovation across all areas, from new product design, content titles, in-game features and responsible gambling measures to benefit both players and operators. It is essential that there is an analysis of the impact of the stake reduction on the rates of problem gambling. The Government introduced the measure based on the belief that rates of problem gambling would decline. We know that many betting shops have closed, thousands of jobs have been lost, gaming revenues and gaming stock values have been hit. It will be reassuring that these impacts have benefitted the ‘at risk’ and problem gambler.

How would you assess the five commitments recently adopted by UK betting firms through the Senet Group to support the UKGC’s national strategy to reduce gambling harms? What are your expectations, and their practical feasibility in your opinion?

As demonstrated by the work we are doing around APAS and SG Vision, we are well aligned with the commitments put in place by the industry and the regulator, and we will continue to work closely together to create a culture of safer gambling. The work that we are doing alongside the Gambling Commission in order to create a dedicated ‘Code of Conduct’ also aligns closely with their mission to expand codes of practice, and I believe that this will have a hugely positive impact on the industry. We’ve seen the impact of the £2 maximum stake on the industry, and therefore continue to recognise the importance of self-regulation and responsible gaming, ensuring that the correct measures are put in place to create a safe and responsible environment for all. 

Europe’s largest bank HSBC is offering its UK customers the option to self-exclude from all gambling transactions, which can only be reversed after a 24-hour cooling-off period. Do you think this could also bring positive results? What other effects could it have in the gaming industry or your business areas in particular?

Absolutely. We’ve been calling for banks to implement this for some time now and we only hope that others will follow suit. It is another component to making gambling safer, and we believe the long-term self-exclusion will have a positive impact by encouraging players to play within their means. 

According to the latest statistics, the GGY for the UK overall gambling industry declined 0.3% year-on-year, with 239 fewer betting shops. How would you explain these numbers, and what are your prospects for next year?

The £2 stake reduction has clearly had a significant impact on the UK gaming industry, and there is no doubt that we will continue to see the impact in 2020 and beyond. The impact of the stake reduction was not reflected in the 0.3% year-on-year decline. The impact of significant shop closures and declining gaming GGY will be seen once the 2019/20 figures are released. However, we continue to support and work with the industry and, as a business, we continue to expand and grow, working collaboratively with the entirety of Scientific Games to provide an unrivalled suite of total gaming solutions. For example, we have just recently announced a significant deal with Norsk Tipping to supply Video Lottery Terminals (VLT) across 1,000 locations throughout Norway. With Norsk Tipping already working with our digital and lottery teams, this makes them the first European customer of Scientific Games to work with us across our whole group portfolio, demonstrating the breadth of expertise that we can offer as a business. This is a model that we will continue to explore throughout our ongoing partnerships. 

What role do investment and innovation play in this landscape? What particular examples of this reflected in SG Gaming could you share?

At times like this, it would be very easy to reduce investment and innovation to save costs, but we believe that it is more important than ever to look forward and not back, through continued investment in game design, hardware design and responsible gambling measures. For example, throughout 2019 we developed and grew our content portfolio. This content-led strategy centred around delivering new, best-in-class content for our customers to drive cash box performance, as well as the ongoing development of established brands. Following the £2 stake reduction, we adapted 90 games, ensuring key content was live for our customers ahead of the 1st April deadline. The content and QA teams also developed our 2019 titles, developing and deploying over 40 games to include new B3, CATC, B4 content for our customers across all sectors. 

Further investment was shown by the introduction of our new Premium Play mechanic, providing players with new mechanics and enhanced gameplay, including additional free spins, win lines and wild symbols – this the has now been launched across 16 new and existing games. We have also continued to develop successful Scientific Games brand mechanics, bringing the best of our global offer to the UK. This has included incorporating the popular US mechanic ‘Lock It Link’ into the UK, as well as ‘Mighty Reels’, which is a fantastic new feature on our new Halloween game, Vampire Desire.  

With the launch of our new ‘Intelligent Menu’, we have focused on evolving the presentation of content titles on gaming machines in line with emerging consumer trends. This delivers an automated centrally managed daily menu configuration by venue and terminal level, using data from the server-based gaming system. 2019 also saw the launch of our ‘Next Generation’ menu navigation system, allowing players to swipe, scroll and search for games with ease.

Investment and innovation around our customer service offering have also remained key, with increased focus on our Business Intelligence capabilities, content support and most notably the development of ‘CUBE’ - our online customer portal providing customers with a range of tools to launch new games, including staff-training guides and video demonstrations, all of which will evolve to include self-service performance data and promotion management.  

Finally, we also continue to grow our Sports Betting capabilities, providing Sports Betting hardware to leading bookmakers both in the UK and globally. We see ourselves, in this area, as a key partner to our customers as we provide technology integration services rather than simply a supplier of hardware.