Gaming cuts loose

Despite being one of the most robust and fastest growing markets for fixed-internet users, online gaming/gambling has been slow to be adopted by the mobile revolution.

There are many reasons for this; different screen sizes, platforms, functionality and overall complexity of delivering to different handsets, but one other reason for this neglect is the attitude to online gambling generally in the major US market. Although the industry is still worth many billions of dollars in the US and it is not technically illegal, there has been a stuttering history of acceptance to say the least. The most recent twist could soon make it illegal for financial institutions to knowingly accept payment in online gaming transactions, under a law that is set to take effect next month.

Then of course there is Apple’s own ban on online gambling for its ubiquitous iPhone device. Until recently there was a blanket ban on all forms of mobile gambling by Apple – no access to betting sites or gambling apps – presumably as a direct result of the US stance on online gambling generally. Arguments to enable gambling have frequently come back to the table on a State-by-State basis, but only recently have we begun to see the first big commercial betting brands launch directly on the iPhone.

In early May, UK business Betfair became the first betting firm permitted on Apple’s App Store, immediately increasing mobile revenues for the company by 50 percent. Charles Palmer, head of mobile at Betfair, was quick to highlight the importance of usability and customer experience: “Our iPhone app takes advantage of the handset’s multi-touch interface and high-resolution screen, offering the same core exchange functionality as the main Betfair site.” Arguably though, it was another area of functionality – location-based technology – that was the key enabler for Betfair.

Betfair was an early adopter of KYC (Know Your Customer) verification. Using industry best practice, Betfair chose to deploy KYC to positively identify all its members to demonstrate that it knows who its customers are, how old they are (that they are over 18), where they are and guard against money-laundering practices. This helps Betfair satisfy demand from platform providers such as Apple to prove that they can restrict services precisely to individual national regulations.

Gamblers in the UK and Ireland can now use Betfair today to place bets as soon as their iPhone GPS verifies that they are in their home territory. Instead of just opening up Betfair’s complex main website to the iPhone, the new app has been designed to be as simple and intuitive to use on the move as possible. Not only does it add to Betfair’s already broad ability to target mobile punters through Symbian, Blackberry and Android, it sets a precedent on the iPhone for other betting companies to follow.

Cutting gaming loose across the iPhone is obviously great news for Betfair because it not only provides a new channel, but a huge first to market advantage. It provides healthy revenues for Apple, and of course is very convenient for customers who are far more likely to place bets with an uncluttered app that makes the journey of there money from wallet to betting slip that much smoother.

Despite some concerns about making gambling so easy and convenient, most would accept that this move to mobile was inevitable, and bearing that in mind, it’s gratifying to see companies using advanced mobile technologies not only to ensure security and regulatory compliance, but also to maximise the potential of small screens and compact devices to make the whole experience more enjoyable.

This article was written as part of our May Newsletter