How much has online casino aggregation increased over the years and why?
Online casino aggregation has increased more than the overall casino business in the last years, due to the multiplication of suppliers and content. Many new innovative games studios have been founded and grown while, with the opening and expansion of new markets, a lot of localized content has been developed. Because there are so many games studios and varieties, it is currently impossible for an operator to have a direct integration with all the studios.
Aggregators have more room to specialise in delivering faster, more flexible integration services with the latest technologies, providing value to both providers and operators. This has been one of our biggest focuses at Pariplay, to be a major technical solution finder, to solve all the technical requirements of our partners, no matter the challenges or legacy of their platform, and help them accelerate their growth.
What are the pros of this business model?
For new studios, the biggest pros come for the value distribution channel. For operators, it is great to have all kinds of innovative content faster than ever for all their target markets.
When operators are entering or expanding in a new jurisdiction, in order succeed they need integrate content with local appeal, deep knowledge about that market, and to make sure that all their games are certified there. With our aggregation services we cover all those aspects, so that our partners don’t have to worry on doing this hard work.
In addition, regulation is expensive. The fact that companies can level our certification to launch on regulated markets is a big value that we offer as an aggregator.
And what are the cons of this business model?
Since there are several aggregation services, most operators don´t rely on only one to access new content, so for Pariplay it is important to keep upgrading our offer continually, making sure that we deliver more content, more services, and more value each month. For small, new studios, it is not necessarily a con, I would say it is more part of entrepreneurial risks, only few of them will actually succeed and generate revenue for operators and aggregators.
Can aggregation become as popular in the US as it is in Europe?
Yes. Even when Europe is very different and more heterogeneous than the US in the cultural aspect, each state has its own set of rules. Different states have been regulating igaming at different times, and the licenses required to operate are not the same. Mainly because of this peculiarity in the US legislation, the aggregation business model is effective there for all the parts of the chain.
Also, local US companies have a long legacy of operating for land-based casino. Pariplay is currently working with traditionally land-based studios to make their content available online, which is another big asset to be competitive in such a dynamic new market.
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