Opinion: Greentube’s golden opportunity in the US4th October 2022 10:49 am GMT
Greentube chief financial officer and chief games officer Michael Bauer discusses the supplier’s early success in the United States
An impressive number of US states have recently regulated online sports betting and gaming, offering a lucrative opportunity our industry hasn’t seen in a long time.
Seven US states now allow online casino, and with growth showing no signs of slowing down, many European operators and suppliers have shifted their focus to North America, trying to grab themselves a slice of the pie. At Greentube, we are no different and we swiftly realised the potential and have worked hard to have our content ready to deploy to local operators in the US and Canada.
We made our market entry in the US in September 2021, launching our impressive portfolio of games in New Jersey, and have since made our debut elsewhere in North America including Michigan and Ontario, with Pennsylvania and Connecticut currently on our radar.
It has been a fantastic journey so far and a real learning curve as we have entered uncharted waters. As a result, we have spent a lot of time and resources on gaining a strong understanding of local preferences, ensuring we know exactly what content makes players tick.
So far, we have seen great success in our localised approach and together with our operator partners and through player feedback, we are developing a portfolio that is tailored for the North American market. This includes creating mechanics and features that we think will appeal to the local demographic, often iterations of popular and proven land-based products and elements. The best examples of this are our Hold N Spin mechanic which now features in a number of our top-performing titles, including the popular Diamond Cash series.
We will continue to evolve our portfolio with localised content as we enter additional regions and gain more knowledge and expertise. We are however, focusing on quality over quantity in North America and have decided that launching 10 slots a month and flooding the space is not the right strategy. Instead, we will only bring to market premium titles that we have specifically selected to fit that market.
As a supplier only focusing on regulated markets, we are used to preparing for new and emerging jurisdictions, doing thorough research before making the decision to invest. With every new market also comes challenges, however, and one of the biggest lessons learned so far in the US is to be patient.
We initially expected to be able to enter new states swiftly, getting our content live with operator partners in no time at all. In reality, it is a longer process than in Europe to launch in the US because of additional licensing efforts and the need for local server infrastructure. There are also additional tech aspects that we need to clarify in the US, and it all takes time.
With state-by-state regulation also comes specific restrictions we need to adhere to that makes producing our games more of a challenge. We are concerned that some of the constraints on the end product will drive players to the black market where they are not protected. We do not think all legislators and regulators fully understand this threat, but it needs to be taken seriously. As the US legalisation of online gaming continues, we want to be part of that dialogue to ensure we find a middle ground that works for all parties.
Our initial exposure in the US has only reinforced our belief that we are well-positioned to introduce a highly entertaining slots portfolio to players and carve out a healthy market share in the igaming landscape. While Europe will continue to be important for us at Greentube, we are increasingly investing resources to further grow in North America, and we look forward to following the developments across the pond and embracing every opportunity coming our way.