## Most Recent Developed Market – Internet Gaming Houses – iGB
The Canadian province of Ontario is one of the most recently regulated internet gambling marketplaces worldwide, having only opened its doors in April of this year. However, as PlayOjo founder Ohad Narkis explains, in many ways it’s more like a developed market – a fact that has shaped how operators have launched their services in the region.
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**Most Recent Developed Market**
When considering new marketplaces currently opening up to regulated internet gambling, many areas might come to mind. Ontario is likely one of the most obvious examples, with the province permitting licensed operators to launch their products on April 4th.
But for Ohad Narkis, CEO of SkillOnNet brand PlayOjo, it’s not accurate to think of Ontario as a new marketplace. Despite its recent opening, he points out that it has characteristics of regions that have allowed internet gambling for a longer time, partly due to its years as a grey market before regulations were put in place.
“Ontario, I would definitely compare it to more developed, more mature European marketplaces, similar to the United Kingdom, and maybe even similar to New Jersey, where we are not currently operating but will be in the future,” he said. “I think this is because Canada as a whole is quite mature in the grey market, and also quite developed in terms of sports betting and internet gambling. And it’s wealthy, with a middle-class audience, and tech-savvy.”
This all contributes to a high level of participation in gambling and can result in high player value.
Although Nargis believes Ontario is a developed market, it is ultimately a fresh market for regulated online gambling. While familiarity with the product itself may already exist, familiarity with the specifics of the controlled environment may not.
Nargis points out that this could cause some initial difficulties, as players accustomed to the lack of control in pre-regulated markets may encounter unforeseen obstacles when it comes to playing.
“There are some early problems, like players suddenly needing to be confirmed,” he said. “They need to use third-party tools to detect their location. These types of setups can lead to player loss.”
“Especially for those who have previously played with unregulated operators and were not required to go through these steps, they will now have to get used to it. These issues will be lessened as technology progresses, but in the near future, it will be a challenge.”
One reason Ontario is similar to established markets could be its promotional regulations. The province’s standards for betting and online gambling include some advertising restrictions, including a rule that bonuses cannot be advertised outside of the operator’s own website. Nargis says this makes the traditional method of relying on partners to gain market share more difficult.
The process of identifying partnership avenues is difficult due to Ontario’s restrictions on advertising incentives. It remains to be seen how this will unfold.
This is in stark contrast to regions south of Ontario where operators are eager to invest heavily in incentives. In fact, many prominent US operators have already run afoul of Ontario’s marketing regulations.
With a reduced emphasis on incentives, the market may naturally evolve to resemble a more established region.
Narkis highlighted that there are numerous options available for operators who are adept at utilizing various marketing strategies.
“It’s a sophisticated and less regulated media landscape,” he stated. “From online to offline, to digital, it’s all going to be accessible now. There’s Google, Facebook, programmatic advertising, connected TV. It enables marketing-savvy operators, if they invest judiciously, to establish strong brands.”
While there may not be as many aggressive incentives as in the US, Narkis indicated that there will still be considerable competition to capture market share.
“I believe, at least in the initial years, some of the new entrants will be engaging in aggressive market acquisition from a marketing standpoint,” he said.
“It will be intriguing to observe how the existing brands that have been operating in the unregulated market respond to this.”
Their responses could differ significantly based on their overall plan.
Narkeese states that those who are prepared to invest heavily in advertising will include his own firm.
“We will be assertive with our marketing,” he states. “We have a substantial marketing budget that we will be allocating to online and all the digital channels we can utilize, including PPC, programmatic, native, and naturally a focus on apps.
The competition is intense
However, a substantial marketing budget may still be less than some of the major players in the market.
“It’s going to be a demanding environment for us as a private company to contend with those operators who have ample resources and who may not always be focused on profitability,” Narkeese says.
As a consequence, he says, the company will focus on reaching a different type of player than those targeted by the large operators known for their sports betting products.
“We’re attempting to establish a brand that those companies who might be operating in online gambling and sports betting won’t necessarily be targeting,” he says. “So we’re not really trying to go after the 25-45 year old sports bettor because we can’t compete with them for airtime on TV ads. We’re looking for a more relaxed form of entertainment, maybe a reality show type of entertainment.”
A crucial component of SkillOnNet’s marketing plan in Ontario, as it is in other markets, is using multiple brands.
The operator was given permission in May to introduce three distinct brands – PlayOjo, SpinGenie, and SlotsMagic – and later obtained authorization to launch a fourth brand.
“Generally, from SkillOnNet’s viewpoint, the company usually has numerous brands, one of which is typically the leading brand. Then, it invests in media and marketing to develop that brand,” Narkis explained. “So, SpinGenie and SlotsMagic are aimed at traditional casino players, while PlayOjo is more of a competitive brand, a more widespread, milder brand. It targets casual players.
“We have ambitious plans for this market. We believe it’s a very profitable market and we believe we have a solid foundation for success,” he stated. “In fact, we are very focused – we are only operating in casino in Ontario – which helps us concentrate on delivering the best product. We believe it will be a very significant market and we want to be one of the top brands in that market.”
Again, he believes Ontario is a more developed market. He pointed out that this means customers will understand the different positions various brands can hold within the system.
“We believe that in Ontario, given that it’s a mature market, players will be able to appreciate and comprehend differentiation,” Narkis concluded.
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