Pulse
Soft2Bet: market mixologists
By William - 4 December 2023
Gilad Naim, COO of Soft2Bet, explains why a blended focus on innovation, financial success, regulatory achievements, and teamwork has led to over 120 per cent GGR growth in just two years.
Looking ahead, a key goal for the company is not to repeat the mistakes of those who’ve entered – and quickly exited – the US market. When Soft2Bet commit the numbers add up thanks to a proven market formula.
Gilad, how has Soft2Bet evolved during your time at the company since joining in February 2022? How has the scale and scope of the business changed over those 18 months?
Since joining Soft2Bet, I have witnessed a remarkable evolution in the company’s scale and scope. The last couple of years have been particularly transformative: our gaming products, the software and technology behind them and our platform have absolutely outperformed.
These achievements have been marked by industry awards and substantial growth but of course as a B2B company, our focus on delivering innovative solutions and expanding our market presence has been unwavering.
We have successfully launched multiple new features and brands, solidifying our position in the market and our performance matrix reflects this success. Our gross gaming revenues (GGR) increased almost 70 per cent in the first year after I joined and in what is now my third year with Soft2Bet they are up 50 per cent.
Meanwhile, profits have increased 75 per cent and 100 per cent in those respective timelines, meaning that we have multiplied our performance revenues within the past year.
On the regulatory front, we have made significant strides, securing new licences as we continue to expand our regulated footprint. This demonstrates our commitment to operating in compliance with evolving industry standards and regulations and in terms of workforce opportunities within the company.
Growing our GGR by more than 120 per cent in the past two years is testament to the dedication and application of our highly talented teams to drive our ambitious initiatives forward.
In summary, Soft2Bet’s journey over the past couple of years has been truly fantastic. With a focus on innovation, financial success, regulatory achievements, and substantial teamwork, we will continue to be a leading player in the dynamic B2B iGaming industry.
An hour ago, Soft2Bet’s CEO, Uri Poliavich, held a keynote presentation on Motivational Engineering and how it can boost business for Soft2Bet partners. Could you run me through the key talking points and the message Soft2Bet is seeking to convey about gamification technologies?
Motivational Engineering is a game within a game that offers a new, additional level of entertainment. It’s a casual game that can be changed according to different markets. For example, our City Builder product combines a Roman city builder game with an online casino experience.
Another title, Battle Slots, combines online slots with ‘traditional’ online games, enabling players to capture new territories by winning sword battles and receive bonuses for each win. We have measured the results carefully and have seen tremendous results so far.
We have seen an increase in average revenue per user (ARPU) of over 50 per cent. Players can enjoy the casual game, accumulate points, and then transform these points into real money. Using this money, they can enjoy online casino games or bet on sports.
Likewise, players can transform real money funds into loyalty points to enjoy more gamification games. This creates very high player engagement and great results. For example, deposit levels are up more than 40 per cent and player screen time is up by 300 per cent.
Are gamification technologies the flagship product for Soft2Bet at this event, or are other products sharing the spotlight?
Gamification is a leading innovation for us at Soft2Bet, but not the only one. Our Player Account Management (PAM) system makes full use of state-of-the-art technology to offer scalability for growth and flexibility.
In addition to our PAM, we boast an enhanced casino offering with around 1,400 different casino games, one of the largest in the industry, and a sportsbook comprising millions of annual sports and esports events. Alongside all this, we also have over 300 different payment solutions available.
What differentiates our offering is that it’s incredibly customised and personalised. Not only will customers in different countries see offerings that are suited to their specific preferences and playing patterns, but those in the same country also enjoy highly tailored experiences.
Depending on what’s allowed in specific markets we can also offer VIPs a completely customised offer – an aspect of our portfolio we take pride in.
Our Managed Services is truly holistic and one of the most powerful offerings in the marketplace. This starts with customer support, in which we offer 24/7 solutions for our partners and players in over 30 different languages.
Additionally, we offer KYC and conduct automatic checks – either through the process of uploading documents or in a matter of seconds through an automated and seamless process. Of course, which of these is appropriate is dependent upon the legislation of the market in question.
We also cover aspects such as risk and fraud thanks to our automated systems. These allow us to categorise players instantly, whether that’s bonus abusers, fraudulent activity, or a legitimate player. Additionally, we have CRM, responsible gaming and AML offerings.
We have also developed our own bonus engine based on the latest technology, meaning players will receive tailored bonuses based on their history. The front-end is a crucial aspect of our B2B product offering.
Some companies offer templates, but we make full use of the advanced technology by utilising scalable tech to produce a truly original front-end for our clients. Players can see and appreciate that the site has a distinct design and feel and thanks to our gamification features can enjoy highly-tailored gaming experiences.
Finally, we also have our own internal game studio, ELA Games, that produces new games every month that can reach up to 98 per cent RTP. ELA Games has several popular titles you may have heard of including Slot Crab, a claw machine turned into a slot.
Soft2Bet has obtained numerous European licences in recent months including in Italy, Romania and Greece. What is Soft2Bet’s European expansion strategy, and what’s the thinking behind obtaining these specific licences?
Firstly, it’s important to stress that all the licences we’ve obtained at Soft2Bet are the result of a lengthy process and in-depth work. This process includes the checking and investigation of many parameters, including taxation level, compliance requirements with regard to players and marketing, competitors, market potential and so on.
Of course, we’re ultimately trying to determine how our innovative tools and offering can dominate within the market. If we’re not going to be dominant, it’s not interesting for us. For example, we see high potential when it comes to Romania where we have local setups whereas in Italy and other markets, we have identified the best route as coming in with a fresh, new offer.
Soft2Bet’s General Counsel, David Yatom Hay, recently told G3 Pulse Podcast that he felt now was a bit late to enter the US market. Would you agree with that assessment?
On this occasion I have to say I disagree strongly with David! He and I sit together in the same meetings, conducting evaluations with other senior managers and team members, but I disagree with him.
The lengthy process I have just described is still ongoing for the US but, ultimately, we are a data-driven company, so the numbers need to make sense. That’s why we are successful – we know what the right formulas are.
We have seen a lot of companies go to the US and exit very quickly. We don’t want to repeat the same mistakes. Once we are in the US, we’ll know exactly at which point we’ll start to see returns, how much money we’re going to invest, how and which channels to invest in, and, crucially, how to localise the product. That’s an extremely important thing for us at Soft2Bet – that’s the way we succeed in each jurisdiction.
I had great feedback from my colleagues who attended G2E Las Vegas in October. By all accounts Soft2Bet had a very successful event with plenty of interesting meetings. A lot of opportunities came up and I’m looking forward to seeing how they unfold.
Today, Soft2Bet is a notable brand – certainly in Europe – and we are seeing major operators approach us with a view to partner with us. Now we’re starting to establish ourselves over in the US, but this is a process that will take time. Trust needs to be built.
Between now and the next major exhibition, ICE London, does Soft2Bet have any new products and innovations in the production pipeline?
It’s crucial to be innovative as it creates waves within the industry. We will generate and create further Motivational Engineering solutions for our partners, and have some exciting ones in development already.
I can’t say too much at this time, but the potential for MMA and hockey themes solutions for the US market is clear. Another innovative product in the works via ELA Games is the potential for a game aggregator.
