Matti Zinder, Head of Spin3 discusses...
Ask anyone in the industry which market holds the most promise for the growth of mobile gambling and they will point you towards the Far East. Indeed, the predictions are impressive. We're told that by 2010 there will be 1.5 billion mobile subscribers in Asia Pacific and the global mobile gambling market will grow to nearly $12 billion in terms of gross value of wagers placed. All signs point towards the Far East becoming the largest geographic market for mobile gambling in the next couple of years.
However, there's always a catch and the Far East is no different. There's great regulatory and technology variation and challenges between the countries in this region. So while Macau, for example, is set to usurp Las Vegas as the casino capital of the world and shows great promise for interactive gambling, the same cannot be said for Japan, where interactive gambling is non-existent due to very strict legislation.
The number and variety of mobile devices means that there are issues in terms of game compatibility, and there are the more obvious challenges of language and localisation. Each area has a different blend of problems and operators must consider each market as unique. As we can't offer interactive gambling services in Japan for example, Spin3's strategy here has to be different and we are currently looking into developing derivative games that can appeal to this market. Our flexible portfolio of games and our total mobile casino solutions approach have been developed to target the diversity of the Far Eastern market.
Payment processing is one challenge that spans the region. The Far East is largely cash-based, with low credit card ownership. Take the payment processing systems that have worked so well in the West to the Far East and it will get lost in translation. Unless this barrier to entry is overcome and the market is opened up, there is a great risk that its potential growth will be restricted. In response, Spin3's OnCash concept allows consumers to purchase games and credits with cash in physical locations, bringing mobile gambling to the masses.
Far Eastern hurdles are not insurmountable. But what is clear is that there's no one-size-fits-all solution. While 2007 saw mobile gambling become a viable business, 2008 should see that proposition exported and established in Asia. Operators weighing up entering the region must do so with care and caution. The future of mobile gambling in the Far East looks promising and Spin3 is committed to becoming part of that success.
