Pulse

Polarised Spanish market currently lacking consensus

By Lewis - 1 June 2020

Earlier this year, the Spanish government decided to prohibit the advertising of gaming on any advertising medium, except for between one and five in the morning on television. The non-executive president of Codere, Norman Sorensen, has since attacked the ‘false beliefs’ and ‘radical political and social positions’ that he believes exist against the gaming industry.

G3 spoke to Rubén Loeches, Chief Marketing Officer at R. Franco Group, for his take on the strict stance taken by the Spanish government and the company’s ambitious plans for the Latin American market.

Could you describe the history of R. Franco and the rationale behind the establishment of R. Franco Digital?

R. Franco has a 54-year history which covers every facet of the gaming sector. From humble origins beginning with the making of pinball machines, through to the first introduction of the legendary PacMan to Spain, we’ve built a widely respected brand for ourselves in the retail gaming sector over the course of more than half a century.

In recent decades, R. Franco has made its name by developing cutting-edge gaming solutions, so our movement into the digital market was a logical step. From there came the inception which kick-started the company’s digital transformation, which later evolved into the subsidiary R. Franco Digital. Our focus is to turn our global gaming solutions offering into one of the most innovative and comprehensive products available on the market.

As a tried and tested multi-channel supplier, our focus on face-to-face gaming activity brings with it not only the possibility of a truly omnichannel experience through our IRIS platform and RF OnMix Terminals, but the enhancement of our own strategic game development. Our success over the last few years is testament to the long list of customers across LatAm, Europe and beyond – all of whom place great trust in our products.

As one of the Hispanic market’s most established gaming companies, what is your take on the ongoing situation in Spain? How has the Spanish market reacted?

The situation in Spain has led us all to reevaluate and look at the most optimal way to deliver our services. The measures taken by the left-leaning government has led to many discussions in both society and within our industry – and likely permanent change.

To put it diplomatically, the government has taken recent measures against gambling which many companies have found to be excessively polarising. To be frank, the government’s drastic outline as to how it expects the gambling sector to proceed appears disconcerting to an industry which contributes 0.9 per cent of national GDP. I hope that we can together reach a balanced and informed consensus which can only be achieved by communication between all stakeholders.

How are you planning to deal with the latest measures in your home market?

It is a complex situation in Spain – for those willing to listen, our job is to provide data, information, and ideas so that the government can see there are different ways of doing things.

Regulation is something we take very seriously, but the idea of increased prohibitive measures is worrying, as past instances have seen players driven towards the black markets – which is something that none of us want. Our comprehensive research is here to inform decision-makers, and we hope that in tandem with the DGOJ, who we have worked closely with in the past, we will be able to provide our comprehensive research to aid the correct decision.

What patterns and trends have you identified in online gaming both in Spain and across the Atlantic in Latin America?

The exponential growth of casino and slot games are being mirrored on both sides of the Atlantic. When it comes to sport betting, its growth is no doubt being fueled by our Latino passion for sport – this crosses across to slots, with our cultural characteristics lending well to our desire to be immersed in the thrill of the action.

In terms of trends, esports are no longer a promise but a reality – especially when it comes to the new generation of player. As Managing Director for one of Spain’s largest operators, R. Franco’s subsidiary brand Wanabet, I can confidently say that it has arrived with a bang and is here to stay.

The development and growth of these in Spain and LatAm is evident, and we have been very impressed with the figures. National competitions – along with the presence of teams and players in international tournaments – has greatly increased its following and I expect to continue to see the vertical go from strength to strength as it continues to grow.

With a strong land-based heritage, do you expect to see an increasing transition to online because of the pandemic in Latin America?

The current situation has been a catalyst for the significant increase in players searching for new types of entertainment, particularly as a substitute for face-to-face gaming considering the recent closures. However, I do not believe this trend will move players away from venues and casinos permanently, but rather broaden the demographic of players who enjoy both online and offline.

Many are discovering online gaming to be easy, safe, and simple for the first time – and from what we’ve seen, I believe players are now excited to realise they have the option of two trusted channels moving forward.

How do you believe the crisis will affect the speed of regulation for online gaming in Latin America?

I truly hope that it will speed up the regulatory processes that are already underway, as well as provide a framework for other countries that have not yet considered enacting regulation.

The advantages are certainly clear; responsible gaming, taxation and the elimination of illegal offshore operations are all attractive propositions, and far better controlled in a closely monitored market. The sooner this happens, the better – as a safe environment is essential for the development of the LatAm sector as a whole.

Of course, given our close work with regulators in the past, such as the DGOJ in Spain and Coljuegos in Colombia, we’re here to help, and greatly look forward to making the continent a more regulation-friendly market than ever before.

When do you expect Brazil to come online?

Brazil has been the Shangri-La of LatAm gaming for some time – effectively making it the continent’s promised land for when it (finally) comes online, but only time will tell.

We are many years into the process already so forecasting how long is no easy task. As one of the continent’s most established gaming companies, with a history that numbers in decades, we already have strategic plans in place to hit the ground running once the market is ready. With one of the region’s most diverse cultures and demographics, we are certainly ready to step up to such an exciting new challenge – and I am sure Brazil will prove to be a key market for many years to come.

Rubén Loeches is Chief Marketing Officer at R. Franco Group, the multinational Spanish gaming supplier and solutions provider. With over 10 years working in the gambling, betting, and online gaming industries, he is skilled in operations management and marketing strategy.