Nov 26, 2023·edited Nov 26, 2023Liked by Wolf of Harcourt Street
Thank you for this analysis. I don't really have an experience in this industry and for this reason I do not understand the following: if Evolution provides everything to casino operators - games, player authentication and other player related software services, physical tables and dealers - then why does Evolution need the casino operators? To be exact, I do not understand the role of the casino operators in this process, because it seems to me that everything is provided by Evolution that is required for an online game. Does the casino operator provide a web UI in which Evolution's product is embedded? What are the services that a casino operator can provide to players additionally to Evolution's services?
Another question for me - is there a percentage estimation for the overall market share of Evolution?
Thank you in advance if you take some time answering these questions.
If I could seek one clarification. On this point that you mentioned ‘the live dealer salary becomes a fixed cost that can be leveraged across hundreds of potential concurrent players. This efficiency is in contrast to traditional casinos where live dealers serve only a few players at a physical table’
Isn’t the dealer still limited to the number of players at the table at any one point in time. Or in the case of a ‘live casino’ a dealer can dealer on multiple tables at the same time?
Do you have any views on their customers eating their lunch? ie: creating their own live streaming platform when they have the scale by banding together? Essentially creating another company that controlled by them but providing the same services since it is an important channel to reach their customers (10% seems to be alot)? This will lead to the questions on do evo games like crazy time create so much incremental value to them? if most of the gamblers are gambling on traditional games like black jack, slots, etc, wouldn't their moat is weaker?
Big risk factor is growth dynamic in Asia (higher than Europe and US) - market with high risk profile, where new regulations would kill the market. But of course, legalisation across Asia may be also liberalising, then more operators will try to compete there, and Evolution will have bigger TAM with lower risk profile.
In their annual letter they said that regulation is a key factor for their growth. I think it makes sense where it will attract more customers, less expanding into more markets etc. Wonder what’s your thoughts on that.
Thank you for this analysis. I don't really have an experience in this industry and for this reason I do not understand the following: if Evolution provides everything to casino operators - games, player authentication and other player related software services, physical tables and dealers - then why does Evolution need the casino operators? To be exact, I do not understand the role of the casino operators in this process, because it seems to me that everything is provided by Evolution that is required for an online game. Does the casino operator provide a web UI in which Evolution's product is embedded? What are the services that a casino operator can provide to players additionally to Evolution's services?
Another question for me - is there a percentage estimation for the overall market share of Evolution?
Thank you in advance if you take some time answering these questions.
If I could seek one clarification. On this point that you mentioned ‘the live dealer salary becomes a fixed cost that can be leveraged across hundreds of potential concurrent players. This efficiency is in contrast to traditional casinos where live dealers serve only a few players at a physical table’
Isn’t the dealer still limited to the number of players at the table at any one point in time. Or in the case of a ‘live casino’ a dealer can dealer on multiple tables at the same time?
beautiful analysis. Thanks!!
Do you have any views on their customers eating their lunch? ie: creating their own live streaming platform when they have the scale by banding together? Essentially creating another company that controlled by them but providing the same services since it is an important channel to reach their customers (10% seems to be alot)? This will lead to the questions on do evo games like crazy time create so much incremental value to them? if most of the gamblers are gambling on traditional games like black jack, slots, etc, wouldn't their moat is weaker?
Big risk factor is growth dynamic in Asia (higher than Europe and US) - market with high risk profile, where new regulations would kill the market. But of course, legalisation across Asia may be also liberalising, then more operators will try to compete there, and Evolution will have bigger TAM with lower risk profile.
In their annual letter they said that regulation is a key factor for their growth. I think it makes sense where it will attract more customers, less expanding into more markets etc. Wonder what’s your thoughts on that.
Who is their largest customer? It's too big to be either Entain or Flutter