The COVID-19 pandemic had devastating consequences on the global economy, causing the most massive recession in history. Neither the gaming sector is immune from the effect. Sports events have been suspended for almost half a year. Land-based casinos are also facing severe challenges since they have to close the doors to stop the spreading of the virus. Meanwhile, the migration from offline to online starts to take off.
Due to the differences in policies, regulations, user behaviours in regional markets, there have always been a couple of gaming giants dominating the local
markets for a long time. However, the global pandemic has driven gaming companies to step out of their regional markets and seek cooperation across the globe to expand new business opportunities.
Playtech (LON: PTEC) officially established its partnership with Asia Gaming (AG) in March this year, providing the players in Asia with the first-ever Alliance Hall. Now players in Asia can enjoy live casino games made by Playtech via AG gaming platform anytime and anywhere.
What’s behind this Europe & Asia alliance?
Western gaming giants have already been trying to penetrate the Asian, especially the Greater China market for some time. According to the Asia Gaming Times Industry Annual Report, the Asia-Pacific region will contribute up to 44% of the growth momentum to the global gaming industry by the year 2022. Yet the region’s complicated business models and different user preferences make it difficult for western companies to run the business on their own.
From the perspective of the eastern companies, the emerging of new market entrants with high-tech DNA in the Asian market has already become a threat to their existing market share. Riding on the halo of big western brands seems to be a good strategy that can be quickly applied to protect their thrones.
Why Asia Gaming?
Publicly traded gaming companies like Playtech always have to seriously consider operation compliance when conducting business in an unregulated market. Any mistake caused by choosing the wrong business partner might ruin its long-established reputation and even may file them a lawsuit.
Asia Gaming, with a POGO license, is famous for its high-performance gaming platform infrastructure and user-oriented business model seems to be the best choice for Playtech.
How does the alliance work?
- A new way of brand endorsement
Once successfully integrated with AG, who has the most extensive iGaming player base in Asia, Playtech no longer needs to persuade operators in the Greater China region to install its gaming platform, saving Playtech millions of marketing costs and increasing brand exposure with a snap.
- Alliance Hall provides players with more live casino options.
Compared with other games, live casinos are relatively simple to play and have no much variation. Most of the gaming companies in Asia are even lack the capability and motivation to innovate. Currently, this situation seems fine with the Asian gamblers since they just want to try their luck on different tables. So instead of introducing new gameplays to the players, AG chose to add more tables with a famous brand name available on the platform.
How is it going to influence the Asian market?
The Alliance Hall, first created by PT and AG, is undoubtedly going to trigger a brand crossover in the Asia market. Even though it is an effective strategy for brand globalisation, partnering with the right alliance is the most crucial part as we mentioned before.
For players, brand collaboration can lead to more product choices and better player experience, while reputable brands work hand in hand to maximise game fairness and player interests.
What is the future?
Alliance Hall by AG and PT is an excellent example of localisation strategy applied in a brand globalisation context. Likely, other i-gaming business brands will directly copy alliance Hall since this is the Asian way. But in the end, whoever understands the local players the best and provides them with a more user-friendly and exciting product will always be the market dominator.