Episode 35: UK prize draws, reductions in RTP and the industry crying wolf

(AsiaGameHub) –   Ed Birkin and Robin Harrison walk listeners through some of the key industry topics in the latest episode of Right to the Source. The UK takes centre stage, with a detour around the world for good measure.

The prize draw opportunity and the RTP debate

The duo touch on Portugal’s new centralised self-exclusion system and Australia’s gambling ad reforms before Robin introduces something genuinely new to the series: the UK prize draw market. 

According to Robin, 44% of operators were incorporated after 2020. At £1.3 billion in annual player spend and 7.4 million active players, it is a young and largely unregulated sector operating outside Gambling Commission oversight. 

As Nicole Macedo recently reported, with 88% of prize draw participants also engaging in commercial gambling, the cross-sell opportunity is hard to ignore. However, Ed is sceptical that it is a meaningful opportunity for real-money gaming operators, as he thinks the targeted players for prize draws are different.

With the remote gaming duty hike putting pressure on margins, the pair also debate what it means for slot RTPs. Both Ed and Robin land on the same conclusion: lowering RTP is probably a bad thing for operators and players alike.

Ed draws on a conversation from the Big Daddy Gaming episode earlier in the year. Operators have spent years calibrating RTP to an optimal level. If it were simply a case of cutting it to make more money, they would have done it already. 

Ed’s bigger concern, though, is what this means for the industry’s credibility. If the market keeps growing despite the tax hike, the government will simply conclude the industry was crying wolf.  

Beyond the UK: prediction markets and Sportradar

There are a few stories to keep the prediction market lively. The pair cover some recent developments regarding Brazil, the NCAA and DraftKings. Check out the prediction market roundup from iGB to keep up with the latest developments.

The episode finishes with the Sportradar short-selling report. Ed raises a pointed question about whether commercial data providers should also serve as integrity monitors. Tune in to hear Ed’s verdict!