NetEnt believes it is important to make a reform in Swedish licencing, calling for the introduction of a B2B licencing system to establish fairer conditions and a higher channelling rate.
Lauding continued progress in live casino, US growth and a strong emphasis on profitability follows the company recently announcing a small rise in revenues to SEK 1.79bn.
With sales consisting of slots (92%) and table games (8%), on a region-by-region basis that sees the UK boast 15% and Sweden 8%, with other Nordics covering 15%, other Europe 48% and the rest of the world 14%.
The Swedish sector, which formed a core part of the casino content developer’s emphasis, re-regulated in January 2019 with NetEnt indicating that a range of restrictions “led to challenges for the entire industry and significantly lower revenues compared to previous years.”
The company CEO, Therese Hillman, explained: “In Sweden, which has previously been our largest market, a licensing system and new regulations were introduced at the beginning of the year, which changed the rules of the game for the entire sector.
“For example, a ban on bonuses was introduced for existing players, which is basically a kind of price regulation that has resulted in a lower channelisation rate than we had hoped for. The revenue drop in Sweden had a significantly negative effect on our total revenues for the year. Under the new regulations, it is illegal to play at unlicensed operators or offer uncertified games, but suppliers are not subject to a licensing requirement.
“As a supplier, we would welcome the introduction of B2B licenses since this would raise the demands on us and our competitors, demands that all serious suppliers can and should meet. It is therefore our hope that the legislation will change in the future to calibrate its intended effects, create fairer conditions for all participants on the market, and lead to a higher channelisation rate.”
Commenting on “major improvements” to be accomplished through joint ventures with Red Tiger following the £ 200m+ takeover, NetEnt claims that sustainability “will be a key factor in ensuring that we will continue to grow and create shareholders valie for years to come.”
Detailing that the influx of new entrants has begun to slow in a variety of key markets, continued changes in live casinos are also to be felt in the near future.
Following the recent expansion of its studio in Malta, the launch of the company’s first physical tables is to take place imminently, as an alternative to bluescreen tables. It is expected to lead to stepping up product sales in 2020.
Hillman commented on one such example, with a greater rate of expansion expected to be felt across core jurisdictions: “The USA is now becoming one of our largest markets, and there are favourable conditions in place for continued growth in 2020. The online gaming market in New Jersey grew by more than 60 per cent during the year compared to the previous year.
“In addition, the market for online gaming opened in Pennsylvania in July, and we launched our games with operators there directly from the start. We are waiting for more information from Michigan and we intend to enter that market as soon as it opens, which is expected to happen in 2021”