With the 19th annual East Coast Gaming Congress &
iGaming Institute conference, the industry’s second largest, having just
wrapped up in Atlantic City, New Jersey, and the subject of legalized internet
gambling across Delaware, New Jersey and Nevada having been a hot topic of
discussion, the mobile compliance gaming advantages of Consorteum Holdings’
(OTC: CSRH) Universal Mobile Interface (UMI) platform have come back into
focus. With New Jersey and Delaware now in their second year of regulated
iGaming and proponents in Delaware fighting hard to get sports betting pushed
through, even as states like Pennsylvania and New York are both moving
legislatively to embrace iGaming and sports betting, Morgan Stanley’s report
from September of 2014 projecting that the U.S. market for online gambling
could hit $5.2 billion by 2020 is looking more and more to be right on the
money.
Consorteum’s wholly-owned ThreeFiftyNine, Inc. (359)
subsidiary, which is known for their KenoUSA Android app on Google Play,
developed in agreement with keno gaming service
provider and keno product manufacturer XpertX, has a wealth
of experience leveraging their thin client application UMI architecture for
executing mobile solutions in this area. In fact, 359’s software team was
responsible for the first ever regulatory-compliant mobile platform for
delivering third party gaming content to have been successfully vetted by the
extremely rigorous Nevada Gaming Board. The UMI is a powerhouse platform
architecture for this space too, as thin client cloud-enabled apps provide
numerous performance benefits over native apps, offloading much of the heavy
lifting to remote servers and freeing up resources on the end user’s device.
Ultimately, this allows for a much more vibrant and rich interactive game to be
created, as the end user’s device has less of a computational and display
burden to shoulder.
Moreover, the company’s UMI solution, in addition to having
the client server handle lottery and/or game content, allows the content to be
displayed correctly and in the proper resolution, irrespective of the user’s
device. This same capability is what makes the UMI great for a variety of other
roles in the mobile space, whether its bringing a company and their brand
presence to the maximum number of users via rich apps, or executing complex
solutions for banking, ecommerce, healthcare, and even government markets. The
ability to land presence on over 1.5k devices or more, with consistent display
performance and design realization intact, and all without the need to write
additional code or patch the end user’s client, is an advantage that makes
CSRH’s UMI an easy pick for developers when it comes to mobile compliance
gaming – but the robust and proven geo-location, geo-fencing and security
features are what really sets the platform apart in this space.
Mobile compliance gaming is a market with lots of room to
grow too. In New Jersey revenues from online gaming already run in the
neighborhood of around $120 million, ten times more than in Nevada, where brick
and mortar gambling is still king. But we all know what operations like Netflix
and Amazon Prime have done to the brick and mortar video rental space, and
while the obvious secondary appeal factors for casinos won’t be disappearing
anytime soon the way Blockbuster stores have. The attractiveness of tax
revenues for state legislators, combined with the ability to gamble for real
money from increasingly ubiquitous smartphone and tablet users, will likely
drive the industry forward rapidly in coming years, despite a few crusty old
holdout politicians, mired in antiquated ideas and praxis left over from before
the advent of smartphone and tablet computing. Take a moment to really think
about how Apple’s iTunes and downloadable music has forever changed the music
industry, how OTAs (online travel agencies) have changed the nature of travel,
or how online brokerages like TD Ameritrade have revolutionized trading, and
you can start to really get a handle on what the future of regulated online
gambling might look like.
With Nevada and Delaware already engaged in an online poker
liquidity-sharing compact, the writing is on the wall for the future of the
industry. In California, recent estimates on the potential size of the
regulated online poker market range as high as $1.3 billion (Capitol Matrix).
With the average of estimates from a wide variety of sources coming in closer
to the $215 million mark for the first year, and around $310 million a year
thereafter, the decision over whether or not to allow regulated online gambling
an easy one for state legislatures to make, especially considering the tax
revenues that could be collected, as well as jobs that could be created. What’s
not so easy is resolving issues like app-specific geo-fencing requirements,
needed to ensure that users are gaming from within a regulated location.
Luckily this is an area where CSRH’s technology has the
upper hand, having already been fully vetted by the gold standard of industry
regulators, the Nevada Gaming Commission and State Gaming Control Board, as
validated via Stations Casino’s Sportsbook app implementation. The company’s
technology uses the native geo-location functionality of the end user’s
requisitely un-jailbroken mobile device to circumvent spoofing, making it a
comfortable choice for developers who want to push rich content to users, and
not worry about violating regulatory compliance.
Morgan Stanley sees the possibility of exponential growth in
this industry over the next several years and, as was the case during the gold
rush era, its companies like CSRH, focused on selling the equivalent of picks
and shovels, who will see some of the most substantial long-term upside. Giving
third party developers and casinos a platform they can use to easily implement
and maintain a compliant gaming solution for their customers, is a great way to
win big as the trend towards regulated internet gambling evolves further. And
because CSRH’s thin client approach opens up the broadest possible end user
device spectrum to developers, the process of natural technology selection
substantially favors UMI-based deployments.
To dig deeper, visit www.consorteum.com
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