hat does Latin America represent in market terms for NYX Gaming Group?
We've been in this business for 15 years. We're already well positioned in Europe, where most of operators are connected to our technology one way or the other, and in North America, with 50% of the New Jersey online market running on our platform. We're very interested in Latin America as it represents a new opporunity to grow our company. We're in the research stages, trying to understand what casino operators are looking for and figuring how to deploy our products and our technology in those markets. First, we must understand what the market needs and make sure that legislation provides a suitable regulatory framework.
Every country takes a different approach to legislation and regulation in Latin America is slow but once appropiate regulatory framework is established, we will sure be ready to expand in the region.
Attracting and engaging millennials is a hot topic right now. What is the gambling industry doing wrong that it cannot engage younger audiences?
I don't think it has to do with millennials but with entertainment itself. The entertainment industry is moving to online and digital formats. People are not watching movies on TVs, they're watching them on Netflix and iTunes, and land-based casinos haven't been able to embrace change very well. It's not that people don't like slots anymore, it's you're not packaging it in a very nice way for them. If you offer these type of games on iPhones or tablets, millennials will play just as much as any other generation. In Europe, for instance, some of our best performing products are played by millennials (50%). These guys have never been to a land-based casino! What I'm saying is.. Move your technology forward, put it in a format that 25-year-old people will be interested in.
At the CEO Roundtable Mr Mark Frissora said that there was a lack of innovation in casino games. What are your thoughts on this?
Innovation is when you make your product more exciting and entertaining for people. If you can achieve that, you've done well. We produce fifty new games a year. Innovation is when you can take a digital product which was originally designed for Europe and deploy it for land-based in America. When we think about the industry as a whole, the appetite for gambling products is universal. Whether it's in Latin America, Africa or Europe consumer demand has not changed. We don't need revolutionary changes, players want fun and excitement.
We have a major merger phenomenon going on in the gaming industry. Are you planning to merge with another company?
We're looking to extend both the strength and the value of our business. Geographical and product expansion puts us on the forefront in terms of scale.
Are you considering the possibility of expanding into Daily Fantasy Sports?
Absolutely. It's our obligation as gaming suppliers to think about all the products and evaluate all the possibilities. We have some concerns about the ecology within Daily Fantasy Sports, as it looks a lot like poker -where there's a small number of players who make most of the money and a large number of players that don't. We're not sure how sustainable that is but we see a huge demand for Daily Fantasy Sports so we're still thinking about what's the right approach for us as a supplier to offer these products. We haven't made a decision yet.