Interviews with top managers of online casinos (no ads)

Interview with the head of the marketing department of the Czech studio Endorphina

— What is the company’s position in the overall market ranking?
— This is a good question, but quite a difficult one, as you need to consider the company's performance in various markets around the world. But Endorphina positions itself as a top provider in the gambling industry.

— How did it all start in 2012? How has the team composition changed since then and who are the people who work here now?
— Endorphina started as a company with less than 10 employees with experience in the gaming industry. Now, we have over 60 people working in our office in the center of Prague. We are a fast-growing startup that is becoming a mid-sized company, but still keeping the spirit of innovation.

— What achievements can the company boast of?
— I think the best achievement is that in just a few years we have grown from a small group of passionate people to a well-known medium-sized company with over 700 loyal customers and thousands of players worldwide. And this is despite the high competition in the market. And of course, we must not forget that we have received many professional awards. Our slots The Ninja, Satoshi's Secrets, Mystery of Eldorado, Kamchatka and others were awarded in the nomination "Product of the Year". In addition, we became the winners of the professional Slot's Guide award in the nomination "Best developer of online slots".

— Are you planning to move in other directions — to create not only slots, but also roulettes, video poker, etc.?
— Our main source of income has always been and will be slots. I don’t think the focus will shift in the near future. However, we are planning to develop high-quality video poker and roulette in the style of Endorphina.

— How does your approach to creating slots differ from other companies?
— It’s a combination of several important points. Firstly, for us, quality is more important than quantity. Our goal is not to release more than 10 games a month, risking quality. No, we want to create games that will be really in demand on the market.
Secondly, we listen to players. Sometimes providers are so focused on operators that they forget about gamblers and their needs. All our games are created with the audience in mind. Our approach is to listen to the needs of players, pay attention to their origin and cultural characteristics. We create a portfolio that can interest players with different cultures, history, mentality and even social trends that are popular at the moment.
We are also not afraid to think outside the box, as was the case with Diamond Vapor, Taboo, Twerk, Satoshi's Secret and other slots, and both operators and players loved it.

— How have trends changed over the past 3-5 years? What trends were popular before and what to expect this year?
— Players are mostly conservative. One of the popular trends is to create slots based on popular culture brands: superheroes, movies, comics, music. This trend still exists. This approach can cause short-term surges, but if the game math does not motivate players to continue playing, then the investment in creating the game may be wasted. Don’t get me wrong, a properly made licensed game can be a super hit. Another trend is gamification. Although many industry experts do not share my enthusiasm, I think this trend can be interesting for the new generation of players, since they grew up on computer games. However, the main problem here is the implementation. We are always attentive to detail, so we dive deep into books and articles about the culture we work with, responsibly approach the new math of the game, so we manage to create slots that players really like.

— Your slots are often dedicated to modern phenomena. What to expect in 2020? Let's make an exclusive announcement?
— As for future releases, I can only share information about one — Troll Haven, the game is based on Scandinavian mythology, and its main character is the Nordic Troll. It will be a wonderful fairytale slot.

— Tell us what slot development consists of? What specialists are involved in the process, how long does it take?
— Creating slots is a long and complicated process, but very exciting. It is interesting to watch how an idea is brought to life. It all starts with finding an idea. Our team analyzes the market, trends, customer and player feedback, and selects a theme. Each team member has the opportunity to suggest a theme for the game. Once it is chosen, we begin to build a whole concept around the idea — history, mathematics, design, and so on.
Afterwards, we focus on the art. The animation and sound specialists get to work, and the result is passed on to the technical team. Once assembled, we get to see the game come to life for the first time. Once we are happy with the result, we fill the game with sounds and music.
Next we focus on the slot math. Once that is worked out, we hand the game over to the testing team to double-check everything and confirm that everything works and there are no bugs.
After that, we can finally choose a release date! The marketing and account management departments start creating a promotional campaign. This is a very labor-intensive process, which involves a huge number of people, but the result is worth it!

— What are the salaries in the studio? Higher or lower than the market?
— We are happy with our salary level. If it were not so, would we work with such pleasure?

— What is your idea of an ideal slot?
— For me personally, it’s a slot with a rich storyline (I prefer adventures), well-designed details, attractive HD graphics, interesting gameplay and high volatility. It’s a slot that’s not boring to play and has an atmosphere thanks to the music and sound effects. I like it when a slot has several bonus features that keep players engaged.

— Name the three best slots of 2019 from other companies? And three of your own.
- This is a very subjective question. I can't say that they are the best, I can only name the games that I like. I can mention the Pirates' Plenty series, Dr. Fortuno and Nikola Tesla's Incredible Machine.

- And the three best slots in the entire history of their existence?
— Liberty Bell is definitely the best slot in history! Also Book of Ra. It’s hard to ignore the popularity of this slot.

— What is your attitude towards gambling? Do you play for money?
— I have a positive attitude towards gambling. I think that people have the right to spend their own money as they wish and to entertain themselves as they wish, as long as it does not negatively affect the lives of others. If a person can spend 500 euros a month sitting in front of a computer and spinning slots, if he enjoys this process, then why not?! As for me, sometimes I play slots for real money, but mainly to feel like a player and understand them better. And speaking of gambling in general, I even have a tradition - every New Year our family buys lottery tickets, and we all watch the TV draw together.

Interview with a casino owner

— Why was the casino called "......"?
— At that time, I was working for a large international company, Digitain. We decided that in addition to the casinos that were under my management (there were more than 30 of them), it was time to enter Russia. We created a project, I designed it from scratch. Why "......."? The name is easy, I didn't want to come up with a name like "The Fifth Star from Mercury in the Constellation of Aquarius."

— What is the specificity of your project? What do you offer that other casinos don’t?
— The first deposit bonus is not sticky and is absolutely safe for your deposit. The main problem with attracting a player is to make him understand that he basically needs to make a number of movements to register in a new casino. Laziness? I agree, why, if you can play in the good old casino. But here he is offered a very good starting bonus for his movements. And if you think about it, then 15% weekly cashback, and absolutely no wager. In my opinion, very decent.

— What problems did you encounter at the start?
— Standard problems: marketing, personnel. But the biggest problem was the reaction of competitors — a terrible DDoS started. But now the problems are behind us and I can thank these “friends”: you made us stronger!

— Using your own development or White Label solution?
— The casino operates on our own platform. Our own license. But we provide services in the b2b segment. If you are interested in opening your own casino, welcome.

— What was the starting capital? How much does it cost to open your own casino?
— It is not expensive to open your own casino — from 50 thousand dollars with your own license and legal entities and up to infinity. Since then comes marketing, and it is bottomless, everything depends on appetites. We have invested about 650 thousand dollars over the entire time. Plus profit. We have not taken a dollar during the entire existence of the casino.

— Who works in the team? How many people does it take to service one online casino?
— If without outsourcing, then about 18-20 people is normal.

— How do you solve personnel and security issues?
— Top management are people with whom we have eaten a lot of salt. Trust is at the highest level. We recruit middle and junior level employees in a standard way.

— What types of fraud and hacks do you encounter from players most often?
— There was fraud in all directions: carders, fraudsters, bonus hunters, multi-accounts, etc. Hackers? Well, there were a couple of vulnerabilities, but we fixed them. Recently, for example, we fought hard against DDoS.

— How do you advertise?
— These are mainly streamers and affiliates.

— And as for gender, what percentage of women gamblers, for example?
— About 5-8% of the entire base. The girls are quite gambling, but there are still few of them among the high rollers.

— How do you assess the prospects for online gambling in Russia in the coming years?
— Everything will move towards legalization everywhere, there is only one way. Sooner or later. Collect your money, dear casino owners, the license will be very expensive!

— What do players lack?
— Trust in the establishments. In poker, for example, the level of trust is higher. And here the deposit and withdrawal are constant. Which puts a burden on the casino. Since we pay very high percentages to ensure the possibility of deposits and withdrawals.

— What would you personally change in the online gambling industry?
— I would conduct a crash course among the players. I need this to be treated as entertainment. It is impossible to earn money over a long period of time! Then the players will lose their negativity. You need to come here like to a bar or a strip club. Get some emotions!

— Cryptocurrency casinos - a trend of the future or a relic of the past?
- This is an opportunity for high rollers who do not want to be seen. Our casino also has a bitcoin deposit and withdrawal.

— Name three mega-casinos of the Runet.
— Joycasino. Casino X. Play Fortuna.

— Do you play yourself? What are your favorite gambling games?
— More offline. I like tables: blackjack, baccarat.

— In which land-based casino can we meet you?
- No permanent one. I visit everywhere I travel.

— Name your three favorite slots and developers.
— Joker Pro (NetEnt), Money Train (Relax), Alexander (EGT).

— Make an announcement, will we see an interview with Vitus?
— There is an agreement: 50 thousand subscribers, and we will record on some island. But it will not be an interview, but a dialogue. He also has questions for me.

— Will everyone be able to open their own casino or is it impossible to do without experience?
— There is absolutely no “impossible”. If there is a goal, go for it, it is not difficult. You need to try. There are nuances, but they are worth studying.

When gambling was banned in Ukraine, some gambling organizers left the market, others went into legal business, and others into illegal business. New signs appeared in place of former casinos and slot machine halls. Today, you won't find slot machines or roulette tables in Internet clubs - they have been replaced by computers, scripted online casinos, and sports betting.

In 1992, Lviv entrepreneur Ruslan Pechenko and his partner accepted a proposal from a Czech businessman to develop a promising gambling business. Investments of $100,000 were made in the form of equipment, and the Ukrainian side provided the new project with real estate. It was a very successful start, and the Flash Royal network quickly acquired national proportions.

But after the gambling industry was banned in Ukraine, the Czech lost all interest in business and focused his activities in Western Europe. The entire structure fell apart.

Speaking about the losses of his gambling business, the director and co-owner of the former network of slot machines "Flash Royal" noted that he had to fire about 1.5 thousand employees who worked in the network. In addition, the entrepreneur complains about the loss of income, because the gambling business brought him considerable sums. "Every month we could earn several million dollars, which could be invested in the development of the business," Pechenko shares. Four thousand slot machines are gathering dust in warehouses and selling them in the current conditions is not an easy task.

"If we see an opportunity to create a network and resume normal activities, we will return," Ruslan Pechenko still hopes for the revival of former greatness. "Besides, we have experience and a material base."

"It is obvious that in this country, more than in any other, you cannot put all your eggs in one basket. There must be some kind of minimum emergency exit," the businessman emphasizes.

Ruslan Pechenko is waiting for the adoption of a law that would set the cost of a five-year gambling license at UAH 5 million, the cost of a patent at UAH 1,600 for Kyiv and UAH 1,000 for other cities, and the halls must have at least 50 machines. Mr. Pechenko is also in favor of limiting access to gambling establishments for people under 21, not to place points at train stations, bus stops and other public places. Then opening an establishment will cost the operator UAH 50,000, Ruslan Pechenko calculated. This will limit entry into the gambling business, and only large operators will be on the market. At the same time, the activity will be easier to regulate, which means it will be easier to work. Although the profitability of a hall with 50 machines will be minimal (about 15%), I think a fifth of the operators will return under such conditions.

When opening a new outlet in Ukraine, Olympic Entertainment Group (OEG) invested up to 1 million euros in each of them. In just 4.5 years of presence on the Ukrainian market, the largest Estonian operator built a network of 24 establishments, and by May 2009, the share of the Ukrainian division of OEG amounted to 12% of the group's consolidated operating income.

After the ban on casino activities, the company faced a choice - either to go online or leave the market. The company was not interested in going into the segment of providing services via the Internet, since, in the opinion of its management, the online gambling business in Ukraine is not transparent, and this path was unacceptable for a public company (Olympic Entertainment Group shares are listed on the Tallinn and Warsaw stock exchanges). Therefore, in July 2009, "Olympic Casino Ukraine" initiated the liquidation procedure. In September, it was declared bankrupt.
Olympic Entertainment Group estimated its losses from leaving the Ukrainian market at around 13 million euros.

As a result of the closure of the casino chain, OEG lost 40 million euros of investments in our country. The company was going to demand compensation from the state for investments in the Ukrainian market, but did not do so.

Along with gambling operators, manufacturers of equipment for casinos and gaming halls also suffered losses. Over the past year, the concept of "price list" has disappeared from the everyday life of Ukrainian manufacturers: today, the price of a machine is formed based on the situation.

"There is no market today, and there is nothing to talk about. If orders arise within Ukraine, it is clear that these are requests from "black" businesses. And customers are not ready to pay normal money, because they understand that tomorrow such a machine can be confiscated. Therefore, the prices are minimal. This is 1/20 of what it should be," says Tigran Arutyunyan, CEO of the company producing equipment for gambling establishments "Odrex", about the conditions in which they have to do business. The company's production volumes are only 5% of what it was before the ban (no more than 200 machines per year). And in better times, "Odrex" produced 4-5 thousand machines per year.

"We had to fire 90% of the staff. The remaining 40 workers barely have enough work to service external orders," says Arutyunyan. Today, the company survives by exporting products to Great Britain, Georgia, Armenia, the Balkan countries, and the Czech Republic. Spain remains a stable partner, where Odrex sells 150 pneumatic roulettes annually. As a rule, clients are sought at specialized exhibitions.

According to Tigran Arutyunyan from the company "Odrex", the question is not so much which gambling bill will be adopted and how much a license or patent will cost, but that the state ensures the implementation of this law.

"If legal and illegal operators work in parallel, nothing good will come of it," the expert concludes. Even the most hopeless optimists claim that even if the state creates the best conditions for running this business, the legal gambling business will never return to its previous volumes.

"On May 15 last year, we opened a point in Kharkov. It was hard to believe that it was so easy to kill a business in one fell swoop," recalls Olga Zinchenko, executive director of Marathonbet, one of the largest bookmakers in Ukraine.

One of the largest bookmakers in Ukraine had 350 cash desks in 100 Ukrainian settlements a year ago. The first cash desk was opened in the center of Kyiv in 1997. The business successfully developed first in Ukraine, and then gradually spread to other CIS countries. At that time, an average of 40 thousand UAH was invested in opening one point.

A year ago, having closed down their operations in their home country, the owners had no choice but to start an online business and continue developing the bookmaking business in Kazakhstan, Belarus and Russia.

"And in Ukraine we are engaged in closing points and not even selling, but rather distributing property, equipment, which we sell for a pittance," complains Olga Zinchenko. According to operators, the average profitability of bookmaking activities in our country is 8%, on the Internet even less, since virtual competition is very strong.

Today, half of the points are already closed, the other half is in the process of liquidation: tax and other obstacles, the company says. But it seems that Marathonbet is in no hurry to get rid of the points it has acquired over the years, because if the state allows official activity, there is hope to return at least part of what was lost.

Moreover, the current lobbying of gambling laws in Ukraine is a process in which Marathonbet takes the most active part.

Olga Zinchenko from Marathonbet claims that if bookmakers are offered to buy licenses at the same prices as casinos (for example, 5 million UAH), almost none of the players in this segment will be able to do so. After all, the volumes of these businesses are incomparable. But under conditions where a bookmaker pays 15 thousand UAH per year for a patent, and license fees will amount to 500 thousand UAH annually, a return is quite possible, Zinchenko is sure.