Expanding poker operations in vibrant, growing markets presents a distinct set of challenges that require strategic foresight, adaptable products, and diversified revenue streams. Dmitry Starostenkov, CEO of EvenBet Gaming, shares his insights on how the company successfully thrives in fast-changing environments by emphasizing product and payment flexibility and creating tailored solutions to enhance efficiency and profitability.
CasinoBeats: What are the major obstacles in expanding poker operations in highly regulated or volatile markets?
Dmitry Starostenkov: The foremost challenge for operators is drawing in an audience, referred to as “liquidity” in poker, which signifies the traffic flow necessary to keep players engaged in the poker room. This is essential because, unlike casino games like roulette, where players go against the house, poker is a player-versus-player game. Therefore, having a substantial player base is crucial for engaging gameplay.
This challenge impacts both new ventures and established operators. Attracting a continuous stream of new players is no easy feat. Many poker platforms stick to traditional models and longstanding games, yet their audience is gradually aging and losing interest as they explore new gaming formats.
The main takeaway is that operators must offer something that resonates with younger audiences—those raised with mobile devices and familiar with games like Candy Crush and farming simulators. This is vital across all markets, whether they are mature with well-established regulations or emerging. It is particularly critical in new markets.
In these regions, operators must build and educate their audience from scratch. For instance, education is crucial in Africa. While there is an interest in poker, many lack the knowledge needed to play effectively. Without adequate understanding, players may quickly lose interest after initial setbacks. Thus, educating potential players promptly is crucial for lasting engagement.
CB: How can online poker platforms tailor their business models to succeed in regions like Latin America and Southeast Asia, where regulatory frameworks can be strict or erratic?
DS: Beyond product adaptation, it is crucial to educate and establish a player base, teaching people how to play poker. Latin America and Southeast Asia are markets with rapidly evolving regulations. Often, there is no specific legislation for online poker, or it is basic.
Operators entering these areas encounter many uncertainties regarding business operations. For example, traditional payment methods might not be feasible because online banking may not support poker-related transactions, even when legally permissible. Many times, this issue hasn’t been addressed in these countries. Additionally, connecting to a large poker network for traffic can be difficult if such networks aren’t active in the region.
These challenges can be addressed by experimenting with the product. Asia offers proven strategies for attracting audiences. There are popular local games that serve as gateways to poker. For instance, in India, where EvenBet holds a substantial market share, players often start with Rummy, a favored card game, and then transition to poker.
Financial flexibility is key, such as creating numerous micro-stakes tables for players not ready for higher stakes. Simplified formats, such as short-handed games or reduced decks, work well. There’s potential in fast tournaments or those with random elements, like Spin & Go or Mystery Bounty events, attracting newcomers.
Experienced players can handle high-stakes or lengthy tournaments, something beginners find challenging due to skill gaps. Thus, lower wager options are popular. Mobile apps offering excitement without real-money stakes illustrate this point, helping with monetization as operators handle fewer player payments by embracing in-game purchases.
This approach is simpler psychologically for casual or new players. In club poker, financial transactions are fewer, minimizing risks. Here, payments come from club owners who manage chips and games, reducing direct operator interactions and transactions.
CB: With ongoing uncertainty around alternative payment methods to standard fiat currencies, what does the global future hold for cryptocurrency payments?
DS: Cryptocurrency is effective in most markets, although in some regions, banning it is simpler than regulating its use. Restrictions exist in certain countries on cryptocurrency payments. Despite this, widespread prohibitions are not expected.
Cryptocurrency prospects in gambling are promising due to unreliable traditional systems, frequent transaction blockages, chargebacks, and regulatory complexities. These factors complicate handling conventional payments. Conversely, cryptocurrency streamlines the process.
The industry’s regulatory bodies need to adapt to cryptocurrency payments. If equated with conventional methods, cryptocurrency transactions could soon dominate the gambling sector.
CB: In challenging jurisdictions, how can businesses diversify their revenue streams for maximum profitability?
DS: Relying on a single source of monetization is risky. Traditional online poker models, where players either win or lose with a set deposit, aren’t universally effective. Operators must explore ways to boost player spending through varied methods.
This involves additional games. EvenBet incorporates mini-games like blackjack and roulette into its poker platform, engaging players during breaks. These add-ons can rival the main poker platform as revenue sources.
Launching virtual stores, a feature EvenBet offers, is another way to diversify. Players can purchase functionalities like opponent game stats or time extensions. These low-cost features appeal to players wanting extra game insights and opportunities.
Introducing new business models should be prioritized. Along with traditional real-money poker, club poker merges standard and private games, providing two distinct revenue streams and cross-marketing potential. This broadens revenue and extends player lifetime value by offering diverse gaming experiences.
