Even as opportunity is growing, regulatory frameworks are becoming increasingly challenging across the Far East. The subject will be analysed during a panel at the SBC Summit in Lisbon, when a panel of experts from across the region comes together to discuss.
Japneet Sethi, Chief Growth Officer – South Asia at iGaming NDA, spoke to iGaming Expert to provide an overview of the challenges facing the market ahead of his appearance speaking on the panel at the Summit.
iGaming Expert: How much has the conflict in the Middle East impacted the operations of South Asian betting firms, and is this a new normal that they just have to adapt to?
War hasn’t had any effect on the iGaming industry. Instead, the increased scrutiny has had a direct impact overall. In the past few years, we’ve seen how South Asian countries have either regulated or completely banned Online gambling, which is why “operations” and “compliance” became the most important departments for operators. COO and CCO job titles now play a major role in shaping this aggressively evolving ecosystem.
What do you believe can be done to mitigate the impact of rising costs as a result of conflicts in the Middle East?
I believe that for anyone invested in the region, the best way forward is to think rationally and conserve resources wherever possible. Also, before investing in the iGaming structures in the region or related regions, due diligence of the financial model and the political ecosystem is imperative to avoid losses.
The UAE is a market that has opened with much optimism. How have the country’s current tourism struggles dented this confidence as major projects such as the Wynn Al Marjan Island resorts edge towards opening?
Confidence is shaken for sure, but the spirit of the UAE is bigger. When the UAE does something, it becomes a grand spectacle, and the Wynn Al Marjan Island Resort is a historic and promising project. When everything returns to normal, the tourism spike would be bigger than ever.
When it comes to the Philippine market, how concerned should we be about the potential for a full advertising ban, and how would this impact the market?
In my opinion, most iGaming markets are volatile due to the nature of the industry and the political sentiment surrounding it. The operators should ideally be prepared for every possible scenario. For the Philippine market, based on my discussions with top-level experts, the bill is in proposal stages and still has to pass through both chambers of Congress. However, if it is passed and signed by the President, then it would become very tricky for the operators since most of the frequently used marketing channels would be lost. A total ban seems unlikely from what I hear, but again, even a 1% chance is very high when it comes to situations like these.
A number of land-based casinos have chosen to expand into the online casino sector in the Philippines. What do you make of this decision despite the iGaming market continuing to struggle through the first two quarters of the year?
It’s an obvious move for any land-based casino operating in a regulated market because the players could be offered an integrated choice between online and offline. The loyalty programs also become very interesting when an operator has both to offer. Looking at the numbers, I wouldn’t call it a struggle but rather “market correction”. Eventually, it should become stable.
What have numbers from the World Cup taught us about the market in Macau and how the region has adjusted?
I haven’t followed Macau religiously but it’s not uncommon to have a decline in Casino GGR when most of the people are betting on sports. Last I checked, Macau had already gained momentum near the end of the World Cup. The market should start rebounding from August and September.
How can Macau adjust to a challenging period and do you believe new operators will be drawn to the market as market share becomes available?
Think of it as more of a stress-test than a challenge. New entrants are not possible because under the current government laws, any freed-up market share would be equally distributed amongst the current internal players.
Why is it so important to have these types of discussions at the SBC Summit in Lisbon and what are you hoping to learn from the event?
Events like SBC bring together iGaming and non-iGaming executives and investors from all over the world and provide a global platform for everyone to voice their opinions and share their expertise. Discussions like these provide perspective and solutions to the emerging challenges of iGaming, which in turn shape the future of this industry. I am keen to learn more about the new and emerging regulated markets from this event.
