Tom Mitchell Chief Commercial Director of RISQ, an industry specialist in risk management services, speaks to SBC on the development of his firm’s B2B insurance backed game for betting operators.
In a saturated marketplace with increasing player demands, RISQ services seek to bring a much-needed point of differentiation for betting stakeholders…
SBC: Hi Tom, thanks for this interview, as a company RISQ has focused on ‘risk management’, can you breakdown this provision to industry stakeholders and why it should matter to their operations?
Tom Mitchell: Our core competency of pricing events, as well as our access to liquidity has always allowed us to create products and structure transactions that suit the client. We are equally comfortable ensuring a large unwanted sportsbook position to creating a new suite of B2B Jackpot driven games.
SBC: As a financial technology enterprise, how has RISQ harnessed its ‘risk management’ competencies’ to create effective products for the sports betting and gaming industries?
TM: The Sports betting and Gaming industries are undergoing significant change and it is becoming increasingly difficult for operators to stand out amongst their peers, both in terms of product differentiation but also in their approach to player acquisition and retention.
We specialise in covering either very large positions (i.e. lottery jackpots) or very complex positions. Invariably a mix of both.
For instance, the Secondary lottery & Lotto derivatives market has grown significantly over the past 3 years. RISQ has listened to the market and adapted is risk management offering to offer value over and above placing insurance. We have built significant proprietary technology which is paramount in order to manage of many of the risks we cover. Our transparent methods allow operators to offer these products in the most secure and cost effective way.
We have also taken note of the success of games such as Sky’s Super six, in driving player acquisition and retention. Consumers have always loved a big Jackpots, and we realised that we were in a strong position to create B2B games, with very large jackpots, and sell them into the marketing departments of global sportsbook and gaming operators and rights holders.
Quick 6 lotto is the first of our B2B insurance backed games which allows the operator to make a fixed margin regardless of prize payouts. Over and above the insurance, we operate the game and provide the technology.
SBC: Where do you see your ‘risk management’ tools and products fitting in within betting’s day-to-day operational framework…What functions does RISQ truly support?
TM: Our secondary lottery risk management offering is flexible and B2B only, thus no conflicts. Some operators just want a straightforward insurance policy, others want us to actively trade the prize risk in order to maximise long term margins. The commercials between RISQ and operator tend to be bespoke.
We have recently developed an insured RNG solution which enables operators to integrate with us and leverage existing games. So far, we offer a maximum Jackpot of £10m on an outcome, so you can see how this can be applied to multiple game formats or offering an insured progressive jackpot across a suite of games.
Our Insured marketing games are more packaged. RISQ provides the i-frame, and is responsible for the day-to-day operations and risk management. This is more in line with any other game developer in the industry.
SBC: In terms of actual game play and user provisions, how do you develop ‘risk’ led products that truly engage modern betting consumer habits (in-play, mobile, cash-out, multi-screen etc…)?
TM: We currently look to develop our front-end games with partners, however we are very careful to structure games with lottery-style RTP’s in mind. It is all well and good offering a large Jackpots to drive initial plays, however we want the punter winning to keep them coming back.
SBC: Finally, how do you see your product developing in both technical and commercial terms within the coming months?
TM: We are investing heavily in both product development and technology. We expect to release a further 5 games in the coming year. These are exciting and interesting times.
Tom Mitchell – Chief Commercial Officer – RISQ