Scaling poker operations in dynamic, emerging markets can pose a unique set of challenges that demand strategic planning, product adaptability, and revenue diversification.
Dmitry Starostenkov, CEO of EvenBet Gaming, gave us his insight into how the provider successfully navigates rapidly evolving markets, both by prioritising product and payment versatility and developing localised and bespoke solutions to drive efficiency and profitability.
What are the major challenges in scaling poker operations in highly regulated or uncertain markets
Dmitry Starostenkov: The primary challenge that all operators face is attracting an audience. In poker, we refer to this as “liquidity”, which is the flow of traffic to the operator that ensures a consistent player presence in the poker room. This is crucial, as unlike with casino games such as roulette, where the player competes against the house, poker is fundamentally a game between players. Therefore, it is vital for an operator to have a sufficient audience to facilitate engaging gameplay.
This issue affects both new projects and established operators. Attracting a steady influx of new players is not an easy task. Many poker rooms operate on traditional models and rely solely on time-tested games, but this audience is gradually ageing and losing interest as they explore other games and formats.
The key takeaway is that we must offer players something that truly resonates with a younger demographic—those who have grown up with mobile phones and have played games such as Candy Crush and farm simulators from a young age. This applies universally across all markets, both those that are developed with long-standing regulations, and emerging markets. However, it is particularly relevant in new markets.
In these markets, operators must start from scratch, which means actively growing and educating the audience. For instance, in Africa, education is paramount. The demographic is interested in poker but lacks the knowledge to play effectively. Without adequate understanding, they may quickly lose interest after initial losses. It is therefore pivotal that we seize the opportunity to educate potential players in a timely manner to foster lasting engagement.
How can online poker platforms adapt their business models to guarantee success in regions like Latin America and Southeast Asia, where regulatory frameworks can be stringent or inconsistent?
In addition to directly adapting the product, it is essential, as aforementioned, to educate your audience, to form and nurture it, and to teach people how to play poker. Latin America and South Asia are markets where regulations are changing rapidly. However, in most cases, there is still no regulation specifically for online poker in these regions, or it remains at a very basic level.
This means that any operator entering these countries faces numerous uncertainties related to practical business operations. For example, traditional payment methods may not be available because online banking does not permit transactions for online poker, even in cases where it is not legally prohibited. In many cases, this issue simply has not been addressed yet in the nation. Additionally, operators may find it difficult to connect to a large poker network to gain traffic and make games interesting for the audience because that network is not yet operational in the region.
These challenges can often be overcome by experimenting with the product itself. There are already established strategies in Asia for attracting an audience. Typically, there are popular local games in this region that serve as gateways into poker. For instance, in India, where EvenBet has a significant market share, people often come to play Rummy, which is a popular card game in the region. Having enjoyed the experience, they then transition into poker.
It is also crucial to be financially flexible, for example, by creating numerous tables for micro-stakes, as players may not yet be ready to wager at higher values. In such cases, it is wise to favour quick, simplified formats such as shorthanded games or trimmed decks. There is also huge potential in offering fast tournament formats or tournaments with random elements, such as Spin & Go or Mystery Bounty tournaments. These formats attract an audience that is just starting to learn how to play.
Professional players can sit successfully at a table with high stakes or endure a three-hour tournament, something no beginner can easily replicate due to a lack of skills. It is no coincidence that formats with lower wagering options are popular in such markets. A prime example of this is the success of mobile applications that do not formally involve real-money gambling, as these allow players to experience excitement without constantly risking significant sums. This solution also enables operators to address monetisation issues, as they are not required to process a large number of payments from thousands of players and can instead comfortably implement in-game purchases.
Psychologically, this approach is simpler for players, especially those who are beginners or who play casually and occasionally. In the case of club poker, the volume of financial transactions is also lower, thus reducing the risks related to those transactions. In such instances, the poker room is only paid by the club owner, who then distributes chips, virtual currency, and creates games for the players. Therefore, the number of counterparties directly involved with the operator is lower, as is the volume of transactions.
With continued uncertainty surrounding alternate payment options to standard fiat transactions, what does the future look like for cryptocurrency payments on a global scale?
Cryptocurrency has proven to be effective in most markets. However, the challenge is that in some regions, it is considered easier to ban its use than to regulate the process. In certain countries, there are already significant restrictions on cryptocurrency transactions and their use as a payment method. Nevertheless, this situation is not widespread, and there are no indications that it will become so.
Overall, the prospects for cryptocurrency in gambling are very promising. This is connected to the unreliability of traditional payment systems, the high number of blocked transactions and chargebacks in online gambling, and the complexities of compliance with legislative regulations surrounding payments. These three factors make working with payment systems complicated, labour-intensive, and without guaranteed results. In contrast, using cryptocurrency simplifies the entire process.
The key point is that regulatory bodies in the online gaming industry need to learn how to handle cryptocurrency payments. If we reach a point where the use of cryptocurrency is equated with the use of conventional payment methods, then in the future, such transactions could dominate the gambling market.
Across tricky to navigate jurisdictions, how can businesses diversify their revenue streams to ensure maximum profitability?
The main rule is that you should not rely entirely on a single monetisation tool, especially in today’s reality. It is not reasonable to consider traditional online poker—where players come to play, deposit $100, and either win or lose—as a universal solution. All operators need to seek new ways to encourage players to increase their expenditure, and to do so in various ways.
This can be achieved with additional games. EvenBet has side games integrated into its poker platform, which are mini-games that can be played parallel to the poker table. A player can enjoy blackjack, roulette, or make sports bets while waiting for their turn or during breaks. These mini-games can be just as significant a source of income as the main poker platform and are an essential additional revenue stream.
Virtual purchase stores, one of which EvenBet has also launched, are another method of diversifying revenue streams. Players can purchase additional functionalities, such as the ability to view their opponent’s game statistics or a time bank that extends the player’s turn. These features cost the operator very little but are appealing to players as they provide more information about the game and extra opportunities, making players willing to spend on them.
Finally, the introduction of new business models should be a priority. In addition to classic real-money poker, launching club poker allows for the combination of standard games, tournaments and private games on a single platform. This creates two distinct revenue streams for the operator while enabling cross-marketing between unique audiences, including private and classic games. This approach generates greater revenue and extends the lifetime value of each player due to the availability of more varied gameplay options to try.
