The Work of iGaming Platforms During a Crisis: Expert Advice

Rosloto specialists talk about the specifics of managing entertainment sites in cases of force majeure. You will learn how to maintain the profitability of digital portals and the audience’s loyalty.

Among the most striking examples of crises in recent years, we can mention the COVID-19 pandemic. The introduction of tight quarantine restrictions led to the closure of land-based casinos and bookmakers.

Many establishments refocused their activities on the online niche. Broadcasts of sessions with live dealers were conducted from offline gambling halls. This helped entrepreneurs avoid bankruptcy.

Risks for the Casino Industry

There are many unpredictable situations that can negatively affect the work of entertainment projects, both land-based and digital. Let us consider the main ones:

External

We are talking about the influence of the following factors:

• political;
• social;
• economic.

Any unpredictable or drastic changes can negatively affect the operation of iGaming platforms. For example, these may be new legislative acts or large-scale natural disasters.

Strategic

In the vast majority of cases, troubles are caused by the unprofessional actions of casino managers. These may be spontaneous decisions to reduce or conversely increase the number of personnel, an incorrectly chosen path of the company’s development, etc.

The best way to minimise the likelihood of strategic risks is to have a backup plan for crisis situations.

Operational

This category includes the following aspects:

• technical problems on the online casino resource;
• failures in business processes;
• low level of staff qualification, etc.

Unpredictable situations include cases of fraud — bonus hunting, identity theft, and money laundering. Continuous monitoring of the gambling platform will help to promptly reveal possible operational risks.

Business Continuity Planning

For effective casino management, it is recommended to use the BCP practice. This is a reliable instrument that allows entrepreneurs to take swift action when something unusual happens. The tool will reliably protect against losses that may be triggered by a crisis.

The main characteristics of the BCP are described in detail in ISO 22301 Business Continuity Management Systems.

Thanks to this approach, the owners of gaming sites will be able to:

• promptly restore the company’s core processes after difficult situations that have led to work stoppage;
• minimise potential costs after changes in the legislation or political system of the specific country and natural disasters;
• guarantee the stability of operation and avoid negative consequences for players.

Business Continuity Plan is a mandatory document in the development strategy of every casino brand. Without it, it will not be possible to attract investment. Banks usually do not lend money to enterprises that do not have a BCP.

The tool is also used during the reorganisation process:

• the merger of 2 firms;
• the corporate takeover;
• rebranding, etc.

Features of Creating a BCP

The preparation of a Business Continuity Plan is carried out according to the PPRR model. It was proposed in 1978 by the U.S. National Governors Association. The scheme has received recognition in many parts of the world due to its effectiveness.

The model includes 4 components:

1. Prevention. At the first stage, project owners need to respond to the crisis in a timely manner and take precautions. In the iGaming vertical, these are well-established business processes, successful marketing campaigns, and a continuous supply chain (the integration of new games, periodic updating of the entertainment catalogue, etc.). It will help operators to avoid crisis situations and monitor changes in the legislative acts.
2. Preparedness. It is necessary to develop a detailed plan in case of force majeure. Brands must have a defined sequence of actions (depending on the type of risk) with the distribution of roles among the staff.
3. Response. Entrepreneurs evaluate the available resources and coordinate employee activities. As a result of this approach, they can maintain the vital functions and protect the resources of their firms.
4. Recovery. The last stage is normalisation of work. To do this, it is necessary to complete several tasks in different niches — financial, advertising, legal, and others. Specialists from each department act in accordance with their roles.

Plans for the Business Renewal

A Disaster Recovery Plan is a list of effective measures to overcome a crisis.

The main components of DRP are:

• specialists responsible for resuming the work;
• resources (financial, labour);
• incremental steps to normalise business processes;
• implementation period and timing of verification.

The plan should include the following measures:

1. Versatility. Reorientation or expansion of activities involves a cardinal approach. For example, a company moves from the land-based segment to the online niche. Entrepreneurs start working with B2B clients by developing software for virtual casinos.
2. Adjustment of proposals for players. This involves integrating new entertainment content: thus, in addition to slots, digital platforms can offer multiplayer fishing and table games. The bookmaker may start accepting bets not only on traditional competitions, but also on eSports.
3. Improvement of the security system. It is necessary to install modern tools that will help protect websites from hacking and other types of fraud.
4. Automation of actions. The integration of a new CRM system, which has modern tools for interacting with users, as well as tracking and controlling all operations, will help entrepreneurs perform this task.

Each section of the Disaster Recovery Plan should contain not only theoretical recommendations, but also detailed and accurate estimates. The numbers will show what real benefit project owners will receive from implementing the measures.

To evaluate benefits, the ROI financial indicator is used. It illustrates the payback and advantages of the decision to invest funds. Mathematical calculations will help to choose the ideal direction for the platform's resumption of work.

Government Assistance During Tough Times

Not always do authorities make changes to legislation to regulate the market or increase taxation. In unpredictable situations, they often meet the needs of operators in order to minimise potential losses of the whole casino industry and preserve the sources of income to the budget.

Isle of Man

The local Gambling Supervision Commission issues permits for the provision of gambling services.

GSC has developed and introduced a special Disaster Recovery program. The document provides assistance in resuming the work of brands that cannot operate in the country of registration as a result of economic or political changes.

Key features of the program:

• gradual transition of an entertainment platform (online casino, bookmaker) under the jurisdiction of the Isle of Man without interrupting the core business;
• availability of the island's modern IT infrastructure, which includes 6 data centres;
• simple registration of DR permits with the ability to make the first licence fee within 90 days after the application has been approved.

The state attracts operators with government support, low taxes, etc. By transferring their projects to this jurisdiction, entrepreneurs will be able not only to withstand difficult times but also to increase the profitability of their establishments.

Ukraine

In the spring of 2022 (in the first weeks of the Russian-Ukrainian war), the Verkhovna Rada adopted a bill to reduce tax rates for many industries, including the gambling niche.

Companies were able to switch to a simplified taxation scheme. Almost 80% of enterprises have exercised this right and transferred only 2% of their revenues to the budget. The privilege continued until February 2023.

The Main Things about Unpredictable Situations in Gambling

There are certain risks in any sector of the economy, and the entertainment sector is no exception.

Key aspects that entrepreneurs should take into account:

• Operational, strategic, and external risks can provoke problems in the casino’s work. They appear because of the changes in social, political, and economic spheres. Besides, force majeure may occur due to errors in the company’s management, ineffective development plans, etc.
• To overcome crisis situations, it is recommended to reorient activities, expand the list of services, and improve security systems. Using modern software to automate key processes will also have a positive impact on the platforms’ functioning.

The Rosloto studio offers assistance in business continuity planning. We have vast experience in solving complex issues and will gladly explain to you how to maintain profit margins in times of crisis.

From us, it is possible to order modern online casino software, reliable security services, the integration of iGaming solutions, and legal support.