Magellan Robotech is already developing artificial intelligence tools, which will be at the forefront of the international markets...

Exclusive interview with Juan Ignacio Grille (YOGONET)

Why have you decided to join Magellan Robotech? What are your expectations for the company and each of its business segments? What resources from your previous expertise could you leverage in order to meet the firm's goals? 

The proposal to begin this new adventure in Magellan Robotech and the Stanleybet Group also came to me completely out of the blue. (Stanleybet CEO Giovanni) Garrisi tried to bring me to his team in Liverpool a few years ago. I can’t deny that, at the time, the idea excited me a lot but the proposition came at the same time as another one that I had already accepted. Last April, however, during an entirely fortuitous phone call he spoke to me enthusiastically, as only he can, about artificial intelligence and the impact that robots will have in this sector within a few years, of the team that he wanted to build and the Group’s global expansion plans.

This enthusiasm and charisma, coming from one of the “founding fathers” of this sector gave me a lot to think about, and so here I am. I have over 19 years of experience in the industry. The launch of one of the very first online platforms in London with CBM, the first open companies and early steps in Malta, which, in 2001, absolutely wanted to become a landmark in the gaming sector; years working in the payment sector with InstantBank and Trustly; the huge personal and professional growth at Sportradar, mainly thanks to the countless collaborations with gaming giants such as Snai, Sisal, Lottomatica, Pokerstars, Betclic, Betsson, Microgame; my experience in Lithuania with the innovative and colourful Betgames, where I realised that the sector needed to shake off the image of smoky, old, grey rooms in order to embrace entertainment, live games and interactions with suppliers of gaming products. Naturally I cannot forget the experiences with Real Betis Balompie in Champions League, the launch of Globet in Italy with Diego Maradona as a testimonial… Everything I have experienced over the last 20 years has naturally become an asset for my new adventure. I would say that my network of contacts in Europe, Asia, South America, Africa and the Middle East is probably the greatest value for Magellan Robotech and for the Stanleybet Group.

What’s the company’s interest in and approach for gaming markets outside Europe? What would be your criteria and strategies to enter and stand out from competition in emerging markets in the US —specially regarding the sports betting momentum— and Latin America?

In the first few months at Stanleybet Group, I learned more about the decision-making mechanisms of a large company, which, of course, should not pursue every opportunity that presents itself. Given my network of knowledge, in less than six months we had opportunities and requests from all over the world. Our Group is based on its history, its experience and on its respect of the rules. We are unlikely to enter countries where gaming is not yet regulated or where there are not strong local partners who will be able to support us in our growth and development.

In summary, I would say that the key words for the approach to new markets outside Europe would be: local partners, technological innovation (convergence between the various channels), stores and offline presence where our customers can experience the quality and hands-on uniqueness of our offering, primarily proprietary products including not just our Virtual Sports and Number games, but also the new MBK betting kiosks, which we have been manufacturing for a few months in our facilities in Split, Croatia.

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          I realised that the sector needed to shake off the image of smoky, old, grey rooms in order to embrace entertainment, live games and interactions with suppliers of gaming products"

What kind of partnerships would you seek for your expansion? How would you describe your relationship with land-based and online operations, and what synergies or symbiotic bonds do you see between those two areas?

As already mentioned, our approach to new markets (Africa, USA, South America, Middle East, Asia) is based on the possibility of working in tandem with local partners. The Stanleybet Group supplies what is substantially a turn-key product, with Magellan Robotech providing the technology (betting platforms, virtual games, lottery games, betting kiosks, all-in-one PCs, etc.) and the other group companies providing the services (Customer Support from Romania, Risk Management and trading from Malta, Marketing, shop design, design, administration services, legal support, and compliance from Liverpool).

Today, our offering, especially that coming from our history and our roots, is principally focused on land-based. But this does not prevent us from having a clear vision of the future with online and mobile that will only converge with land-based, creating a true multi-channel offering. In all these aspects, research and experimentation in artificial intelligence and robotics will begin to bear fruit within two to three years. In our Liverpool office, we have numerous robots being prepared for introduction into Stanleybet stores for direct interaction with customers. The future will probably not be based on online, as we are seeing it today. In my opinion, the desktop offering is destined to almost disappear and will be focused on an online one that will go through personal assistants (artificial intelligence and robots) and will be based on the use of voice and smart devices such as smart watches, smart rings, smart glasses and who knows what else.

What are Magellan's plans, projects and expectations for 2020? 

Especially from the second half of the year onwards, 2019 has been the turning point for Magellan Robotech. Within a few months, we received several nominations for the main industry awards, such as best suppliers of In-House Products, Best Virtual Football, Best Betting Platform provider and Best Lottery Provider (EGC Awards won in Budapest in October). We participated in several fairs and conferences, including ICE Africa, BOS London, CEEGC, G2E Las Vegas and SiGMA Malta, and we are preparing for 2020, during which we will attend ICE London for the first time with our stand. My idea is that to make our products known, we can’t not take them around the world. It will be a genuine Roadshow, beginning in Liverpool and in less than 12 months passing through Bucharest, Rome, Birmingham, London, Barcelona, Budapest, Malta, Las Vegas, Manila, Goa, Johannesburg, Buenos Aires, Lima, Bogota, Torremolinos and Madrid.

What we take away from each show we participate in are the experiences, knowledge and local demands. An awareness of the specific needs of the various countries is essential. Today, we are living in a world between the global and the local, and it is in precisely this dichotomy that we must find the strength to grow. You can't land in a new country like an extraterrestrial without offering what the local customers want. I am not just speaking about the languages and localisation of the products offered, but also about which games are offered (many large companies think about expanding into Brazil and do not even have Video Bingo in their game offering) and also of form of transmission (satellite for Africa, streaming for Europe, local rendering for South America, etc.).

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          You can't land in a new country like an extraterrestrial without offering what the local customers want"

Could you provide an assessment of the current and potential future landscape of gaming in USA and Latin America? What differences and industry trends could you identify in those jurisdictions? What role do virtual games and lottery play in that potential scenario?

It is estimated that the size of the American market will be around 6 billion dollars in 2024, following legalization in at least 30 US states. It is clear that a single approach, for all jurisdictions, is not enough, since each state adopts a different set of rules on betting. For retail betting, the American scenario is seeing expansion beyond the casinos, with the presence of bookmakers reaching the main sports arenas, for example in Washington and Illinois, as well as lottery kiosks in various states. For B2B companies, this is a huge development opportunity, provided they know how to offer a custom-made product for operators, depending on the jurisdictions where they are doing business. Latin America has enormous potential, thanks to a high level of Internet penetration and the growth of digital commerce. There is an uncertain phase of economic difficulty ahead, but a rapid improvement is forecast and this is a continent with 650 million inhabitants that we are talking about. Regulations are moving in the right direction and will allow service providers to set up efficient and secure platforms. Also, in this case, we must be able to provide differentiated solutions. However, the potential is enormous. With regard to lotteries, these are markets with great potential: Latin America represents just 2% of the world market, and can, therefore, guarantee a huge growth potential, whereas the US lotteries equals one quarter of the world total. In the latter case, however, the long-term management of gaming has often been entrusted to large companies in the sector and therefore the market is a bit rigid. For virtual gaming, the United States is currently accessible through New Jersey, but the market is definitely destined to open up: virtual gaming - with its betting on non-actual events - overcomes the concerns of the most conservative states, which intend to protect sports from any contact with betting. For both the United States and in Latin America, we have the perfect solution for companies looking for solutions: from the “Trident” virtual game portfolio - a championship-format football competition - to “V-Sports”, an offering complete with 3-D virtual sports. 

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          Virtual gaming overcomes the concerns of the most conservative states, which intend to protect sports from any contact with betting"

Could you mention examples or models of regulatory frameworks that help to optimise your business areas, both in Europe and the Americas? How could Brexit affect any of your business areas, and what's your approach for that?

In general, each jurisdiction has its own regulatory pathway, so it is difficult to find a “universal” system. From the point of view of an international service provider like Magellan Robotech, the market should be characterised by a sustainable tax regime - possibly based on the taxation of gross revenue (GGR) - and by effective measures for consumer protection. The regulators should then make mandatory prevention campaigns against possible pathologies, as well as the adoption of self-exclusion tools by operators. In this sense, the liberal approach of England in tax and organisational matters, Italy’s technical structure and the attention to “responsible gaming” in Sweden are positive case histories for the industry.

Brexit is certainly an obstacle to the development of international operators. Many are leaving the UK and choosing locations in the EU, such as Ceuta - in Spain - and Malta, simply to avoid problems. Even Magellan Robotech, as soon as the terms for the United Kingdom’s exit from the EU are known, will have to adapt to the new scenario.

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          Magellan Robotech in Liverpool is already developing artificial intelligence tools, which will be at the forefront of the international markets"

What new demands do you find among operators and especially the new generations of players, and how do you approach them? What emerging technologies (AI, blockchain, Big Data, etc.) are you working on with that aim?

Operators must shift gears on their products if they want to engage young generations in gaming. The approach that has always been used to launch an online gaming service - the site, the app, advertising, the layout of “user friendly” services - will no longer suffice: young people will be less and less inclined to visit casinos and agency networks, just as they no longer go to the cinema or the mall. Everything will be based on the gaming experience, which must be a continuous and engaging challenge. Technology, in this sense, will be fundamental: we must reach the potential young gambler through social networks, linking the product to the images of “influencers” and music stars who have a strong presence on Youtube and Instagram. Young people are "hi-tech" and want to play around with their smartphones, even in terms of gaming and betting, but above all for testing their skills and talent. In order to do this, it will, therefore, be necessary to lead with promotions and offers, linking to increased odds, or mini-competitions between players, not forgetting that the product that they are betting on is also changing. From traditional sports, we are moving towards eSports and on to virtual games. Always with the smartphone in hand. On the technology side, artificial intelligence is the future. Real-time statistics and results will allow bookmakers to open and manage betting markets and players to have a virtually infinite range of information. Magellan Robotech in Liverpool is already developing artificial intelligence tools, which will be at the forefront of the international markets. Esports are also something to look out for: while it is true that AI will be able to support its development, there is a sensitive matter of children and gaming. Are bookmakers - who are at the center of public opinion attacks in many markets - able to approach an age group, like that of eSports players, who are often around the age of 15/17? I don't think so. General rules of engagement for gaming access must be established - strictly reserved for adults - and also for avoiding incidents of match-fixing (for which there is already great concern) in the sector. The relationship between young people and gaming, in my opinion, requires higher than average attention from the industry. In this sense, it is essential to collaborate with governments and regulators in formulating stringent rules.

By: Juan Ignacio Grille - [email protected]