Vixio at G2E 2024: Our Key Takeaways

Last week, some of the Vixio team headed over to Las Vegas for the annual Global Gaming Expo (G2E). What did they learn in their time there? In terms of topics on the expo floor, Sweepstakes was dominant, most notably in footfall conversations and panel sessions. In this blog, Vixio’s Legal Analyst, Mackenzie Joyce, highlights the hottest topics that emerged from the three-day event. 

Sweepstakes/Unregulated/Illegal Gaming

• Sweepstakes was all the buzz at G2E, with one particular session on the topic turning into quite the debate.
• A few folks on the panel, including Howard Glaser (Light & Wonder) and John Lessnau (Michigan Gaming Control Board), argued that unregulated sweepstakes is harmful to the industry, especially given that it does not have regulated consumer protections in place.
• Michelle Cohen (Ifrah Law) and Matt Kaufman (Eilers & Krejcik Gaming) insisted that sweepstakes is not gambling, but rather social gaming/social play, and that payment providers who onboard sweepstakes operators require such operators to have AML and KYC protocols in place.
• All panelists defended their positions on sweepstakes, but ultimately agreed that the space is fast-growing.
• It seems all stakeholders are trying to wrap their heads around this new sector and whether it will beget regulatory involvement.

Sports Betting

• Generally, US regulators are feeling more confident in the state of SB across the country.
• Having neighboring states with regulated SB is an advantage, as regulators can collaborate on regulatory enforcement.
• The ubiquity of SB across the US has begun to affect public perception, especially with regards to advertisements.
• The industry needs a renewed emphasis on responsible gambling, particularly with responsible play and responsible advertising.
• The industry thrives with continued innovation among operators, e.g. analytical tools for discovering match fixes, etc.
• For one Indiana regulator in particular, the popularity of SB has been surprising, especially smaller, more niche sports (“football is not king”).
• Regulators are continuing to question what the role is for law enforcement re: integrity, safety, and responsible play. One way to keep SB in check is to continue levying harsh penalties where appropriate and to minimize unlawful activity through KYC, source of funds, etc.
• Leagues also have a role to play in educating their athletes re: unregulated, illegal markets as well as safer play.
• It’s incumbent upon regulators to step up and create/enforce proper regulations as well as to educate operators and the federal government.
• Ultimately, cooperation across many stakeholders is key for the industry, including banks, payment processors/providers, and even search engines (e.g. Google) to disrupt things upstream.

Artificial Intelligence (AI)

• AI technology has begun to creep in across multiple sectors, including casinos, online sports betting, and esports.
• For operators, AI is proving to be beneficial in game development and creation. AI “helps humans build” and test games and unlock new spaces using human elements.
• AI is also being used to create betting lines, boost game and fan engagement, and to build customer personas.
• Operators are additionally using AI to track and collate game/player data and then sort/sift through data that would otherwise take many hours.
• AI enables operators to know the customer and personalize games and offers, as well as enhance the user experience and player journey.
• AI is also being used to educate the customer and enhance RG efforts through the use of personalized chats and personalized RG tools.
• All panelists concurred, however, that humans are needed to verify the information inputted and outputted by AI.
• It will be interesting to see how regulators respond to the use of AI, especially pertaining to personalization and tracking player habits/behaviors. The SAFE Bet Act introduced in the US would prohibit using AI in such ways.

Brazil

• Vixio’s Chief Analyst, James Kilsby, hosted an excellent session on all things Brazil; my biggest takeaway from this session is that attendees seemed engaged and curious to hear how we thought the market would take shape.
• A few attendees agreed that the biggest challenge is how quickly things are changing in Brazil, even daily something seems to change or update. Operators, regulators and other stakeholders must stay on top of all updates as soon as they come out.
• GLI was present and they spoke about how some companies are waiting to get on Brazil’s “whitelist” so they can begin preparing for launch. In some cases, operators are not present on the “whitelist” one day but added to the list the next day. This has made preparations a bit shaky.
• Another challenge is the narrow window between license approval and launch – operators do not have much time to prepare their go-to market strategy and must be quick and flexible with their operations.
• Of course, the high upfront cost/fees is another concern for operators who want to make sure that they check all the boxes, adequately test all of their games, and have a frictionless launch.

The Next Horizon

• Despite international chatter than previous year, even including the interest in developments within the Brazilian market, this was a remarkably quiet G2E on that front from a panel perspective.
• Of specific and ongoing interest were the jurisdictions of (in order of importance) South Africa; UAE; Nigeria; new opportunities within Southern Africa such as Angola; Botswana; Malawi; Mozambique; Seychelles, etc…
• All named entities expressed strong belief that Africa, mentioning the South African Remote Gambling Bill specifically, is at a similar point to LatAm pre- the flurry of regulatory activity within Brazil; Peru; and others. The likelihood of triggering a bevy of investment in African digital/internet infrastructure following federal iGaming within South Africa and near-regions has accelerated the belief that the continent is at its highest level of operator/supplier interest and new opportunity potential than it has been in Decades.

Overall, the Vixio team had several positive and engaging interactions with attendees, exhibitors, and speakers at G2E - we can’t wait for the next one!

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