In this interview with CalvinAyre.com’s Becky Liggero, David Bazak of 10Bet gives his insights on betting on the regulated and non-regulated markets.
Some operators prefer to put all their money in the gray market because of the higher yields that it entails. Others, meanwhile, make an all-out investment wager in the regulated market due to its stability.
In making an investment, David Bazak of 10Bet said the wisest thing for operators to do is that they should not concentrate all their efforts and resources in a single market as they could lose everything.
“Just focusing on the gray market is a no-no. Just focusing on the regular market will be costly, so you have to make some of both of them because you obviously will make more profit on the gray market area,” Bazak told CalvinAyre.com. “But there’s not a sustainability of that net revenue coming in, profit margin coming in because one, they could regulate in a very non-friendly way. Which case, you have to turn around and wipe everything off the board and that’s where the net revenue will stop.”
Bazak recalled that there was a lot less regulation in marketing, technology and payment solution when he entered the industry eight years ago. He said marketing was a lucrative business back then because it only needs a few clicks in order to take a big market share.
Fast forward in the future, Bazak noted that regulations imposed by governments resulted to a very competitive environment.
“Unfortunately, it has become more aggressive and a lot more competitive, so it has become more difficult to do that. Regulations and compliance issues, responsible gaming, all these things have an impact on how you behave and how you act toward your customers, and how you market toward your customers,” he said.
The only advice Bazak could give to operators looking to expand their business in a regulated market was for these firms to either acquiring another company or by grinding their way through it.
“[They] need to be prepared for competition. It is regulated for a reason. It didn’t regulate overnight. It is regulated because there is a call for regulation. There was a lot of turnover, a lot of net revenue coming to that market. The government decided that they need to regulate that area. As soon as they come in there, they should be ready for competition,” Bazak said.