Category: Work

  • Everybody has a plan until they get punched in the face.

    “You can’t have everything you want, but you can have the things that really matter to you.” —Marissa Mayer, former president and CEO of Yahoo.

    My career has been really important to me. And I’ve loved what I’ve been doing. But sometimes, to the detriment of the things that really matter. Kind of like punching myself in the face. For no good reason.

    I’ve spent a large part of my career both travelling or being away from my (growing) family. I’ve missed birthdays & days out & sickness and all the ups & downs that go with the greatest adventure of them all – bringing up a family.

    The bulk of my experience has been in an industry that is currently going through seismic changes. Consolidation, large M&A’s, re-organisations and regulators banging at the door, like never before.

    My plan was to leave the Stars Group and move into a Marketing leadership role in a (new to me) large blue-chip organisation. My leaving was accelerated by the business I was helping run, being folded into another part of the (Stars) Group – but the new job was offered, I met the people I’d be working with, plans put in place, and a window of a couple of months before the right structure put in place – to bring me on board. Happy days.

    But sometimes, time off can do funny things.

    For the first time in years, I was at home in Dublin for 7 days a week, taking on my share of the ups & downs and really appreciating the amazing job my wife has done, in doing the toughest job of them all – bringing up healthy, happy, well-balanced kids.

    During this very recent period, the right house, in the right place in Dublin became available. “NO – we won’t buy it because I’m going to be working overseas again, and we need to make other plans…” – was my first reaction. And it was the wrong reaction.

    It was typical of someone who was more focused on their own tunnel vision needs & wants around work & career – and less about making what should be the right long-term decision around the most important job of all. Being the best Dad & husband possible.

    So – fast forward 3 months, we’ve sold one house, bought a new dream house in an area where my kids have already spent more time in old-school, outside water fight, ‘don’t come in until we have to send out a search party’ play – than ever before. I’m at home. We are together. And my wife is….content.

    Me? I feel…brand new. And it’s great.

    Great, because I’ve got clarity in terms of what’s important. Great because my health is good, & great because instead of repeating the same pattern and disappearing out of Ireland again – I’m clear that this is where I want to stay.

    Being brand new sometimes means looking back, and making sure that you understand why you are, where you are.

    The gambling industry has given me a great living, I’ve worked with a lot of people a lot smarter than me, and learnt from them – and its given me the opportunity to travel all around the world. But – it’s currently facing into it’s most challenging period since it’s inception.

    The core challenge is clear – how do you operate a business that that has historically turned a blind eye to unhealthy behaviours that impact negatively on people’s lives? It may be a small % of customers / people – but that small % has historically over-indexed in terms of profits delivered.

    In an earlier part of my life, I had direct lived experience of the challenges of addiction. I’ve seen the damage that it can do – and I’ve seen good people familiar to me, losing a battle against life being unmanageable – and struggling to have the courage (or support) to change the things they could.

    I mention this, because this experience has probably given me a deeper insight into the more human side of the enterprise challenge, that is the online gambling industry attempting to change it’s own historical behaviours and genuinely put in place the right type of (both) internal attitude, and external safeguards – to protect the small % of people that are vulnerable to what the online gambling industry sells.

    The challenge (for the gambling industry) is not about designing & devising high-profile, media friendly, player facing support programs – but a deeper one. In my opinion, it’s about taking a value and human trait that’s been sorely missing – and making it core to every activity.

    The value and trait? Empathy.

    I’m not going to lecture on empathy. People and businesses have to be honest with themselves as to whether it’s a value that’s important to them. It’s difficult to prove or show, as it operates on many different levels – but it’s trait that I think that all businesses (particularly those with a heavy marketing focus) and gambling, in particular – need to ask themselves “is this core to our DNA?”. If not – you’re not putting your customers needs – truly at the heart of what you do.

    Empathy is something that I personally took my eye off the ball with, in terms of my own life – and I’m just working hard to reapply it to what’s important. If you keep it front and centre – you make more of an effort to understand (both) what’s important to other people andyou do your best to serve their needs before your own. For example, for me, if I look at the needs of the most important people around me – it’s about staying close to home, as much as I can – but balancing it with the type of work that gives me purpose and focus – so I can, personally, be happy – and spread that happiness around.

    I’m still a work in progress. I’m still working it all out – but I am proud of the work that I’ve done, with the companies I’ve done it with. I want to use that experience (and empathy) to help other people.

    I’m available for consultancy based out of Dublin, happy to travel but with some limits. Betting, gaming, ecommerce, brand, performance & growth marketing.

    Contact me here.

    Or Whatsapp / call on +353 87 1234 371.

    You get the empathy and experience at no extra charge.

  • My take on the Full Tilt / PokerStars / Absolute Poker ban for US players.

    If Pokerstars and Full Tilt Poker (in particular) weren’t so focused on world domination, and trying to one-up each other in terms of player volumes, I think that the events of Friday the 15th of April may not have happened.

    Why?

    In the race to keep maintaining player deposits from US customers, and given that credit cards are not an option, (particuarly for new customers), ACH transactions became much more important. ACH transactions are bank transfers where the player gives their bank details to the gaming company, and a transfer is inititiated through a payment processor, from the bank, to the player’s gaming account.

    Why was this important and how did it impact on Full Tilt, Pokerstars and Ultimate Bet?

    It became important because it allowed these companies to bypass credit card blocks, as the system that’s set up to monitor bank transfer payment types (in the ACH system) isn’t as robust as what the credit card companies have available. It’s also a system that requires a lot more monitoring, but is much more fragmented as (in the US) it is populated by the diaspora of small, local US banks.

    The banking system in itself in the US is a lot more fragmented than in other parts of the world. This means that  you’d need to have checks & balances in place, at a local level at every single bank that has the ability to send or receive funds from/to any 3rd party. Currently, the US banking system (and individual banks) conduct due diligence into the business of any merchant when the account is opened, but if the nature of that business changes (ie: from buying & selling coffee and having 1000’s of individual transactions from individuals buying coffee > overnight 10,000+ transactions which may or may not be related to online gaming) , the bank don’t necessarily have the resources (or the interest) to look deeper into it. Also, let’s face it, fees are now being generated on the 10,000+ transactions. Money talks.

    Now, if you are a big enough online gambling business, and have:

    a) enough cash at your disposal to buy a bank

    b) difficulty in getting payments from US players

    …why not buy a bank, where you can set up as many merchant accounts as you like – to process as many transactions as possible? Or, at least buy the companies/people that can do that for you?

    That’s what these guys did – and it came back to bite them on the ass. When one of their payment processors (a middle man) got caught, it looks like that in exchange for doing a deal with the DoJ in the New York – he reverse engineered a lot of the transactions and the money trail – thus allowing the DoJ to work out who was getting money from where, and where was it ending up.

    Read about Daniel Tzvetkoff’s story here.

    How does it impact on the companies indicted?

    If you combine that fact that it’s relatively easy to take a guess about the player volumes (and therefore revenues) that are being generated at these sites, because of poker aggregating sites like Poker Scout – and the feds could now reverse engineer the money trail due to Tzvetkoff. A perfect opportunity was presented to allow the DoJ to indict the owners of the largest online gambling companies out there. The Full Tilt owners (in particular) probably didn’t need to flaunt their market position so openly – three words. Red rag, bull.

    Personally, I think that it’s a perfect storm for these companies only. They’ve backed themselves into a corner with payment processing, market share and profile.

    My take?

    US players that have money on PS / FTP / UB are probably trying to get their EU based buddies to log into their accounts and chip dump to other EU accounts so that they can get their money out. Alternatively, if they want to get their cash, they’ll ned to relocate outside of the US. Otherwise, they are in for a long wait for their cash.

    Interesting times for the industry. I’d bet they’ll get more interesting.

    NB: it might slow up (in some cases) some recruitment – as people wait to see if there’s fallout (ie: good people) from the biggest companies in the space. It may actually accelerate it in other companies – as those at certain companies jump ship (wrongly) as a knee jerk reaction to this. My take? Wait and see. The sky’s not falling in, and in a month’s time, it’ll be business as usual for most people.

  • Full Tilt, PokerStars and Absolute Poker owners arrested & charged by feds

    Big news.

    On Friday, two (as yet unnamed) owners, out of 11, from PokerStars, Full Tilt and Absolute Poker were arrested and  all 11 charged with violating U.S. anti-Internet gambling laws, according to charges filed by federal prosecutors in Manhattan. One of the others is due to turn himself in later today.

    The domain names were also seized.

    Individuals named included Raymond Bitar, 39, of Full Tilt Poker, Isai Scheinberg, 64, of PokerStars and Brent Beckley, 31, and Scott Tom, 31 Absolute Poker. They were all were charged with violating the Unlawful Internet Gambling Enforcement Act and other laws.

    The charges outlined a scheme by the company owners and some of their employees to direct the gambling profits to online shell companies that would appear legitimate to banks processing payments.

    The story was breaking on Friday when I’m writing about this. But it’s telling that 2+2 has gone down, it wouldn’t surpise me if it’s gone from weight of news traffic.

    What’s going to happen on the short term?

    There’ll be a savage run on withdrawals, particularly from US players, and already overloaded processors are going to go wallop. It’ll have an knock on effect across any US facing sites too.

    Watch this space…

    UPDATE: Here’s the 2+2 thread if you want to see what the Poker community is saying.

    UPDATE 2: Better in-depth piece from Pokernews – here.

    UPDATE 3: Mainstream news stories from:

    ABC News,

    CBS News

    CNN.com

  • Back in the saddle of blogging. Some online gambling thoughts first.

    It’s been too long.

    Blogging about the business of internet gaming / marketing /  gambling has just felt like extra work – and god knows, I’ve got enough real work to be going on with.

    What’s happening on the day-to-day business of online gaming front for me?

    I’m overseeing 2 x casinos, 2 x poker rooms, 3 sets of fixed odds games, our overall Partner function as well as heading up our Business Development function. It means that my time gets split between current egaming partnerships, what may be future ones, general business development – and managing a team of people.

    I’m going to have to get my sh*t together and get down some thoughts on the business of online gaming and in particular, what are the industry trends and my thoughts on them.

    Social Media – Macro Trends:

    * Social media will still not be monetised properly this year by brands.

    * Advertising on Facebook will get more expensive but click through rates will drop, and marketers will still spend shed-loads of money there, for little or no return

    * Overall email engagement will continue to drop for brands looking to engage customers through that channel. There’s too much email clutter, and social networks are cutting out the commercials by allowing P2P communication.

    * Twitter will block a bunch of aggregators that are currently piggy-backing their content, put them out of business, and try to work out their own business model (it’s got to be sponsored tweets + brand pages at a premium).

    Gaming Industry – Macro Trends:
    * B2B infrastructure deals between operators (who are now taking on the role of platform partners) – what’s going to be successful?
    * Growth in regulated markets – what markets are going to open and how tough will they be to enter?
    * Poker revenues falling off a cliff (for multi-platform operators) – why? Is it terminal?
    * Super affiliates becoming Operators (particularly Poker & Bingo) – do they have a future?
    * Live Betting is THE growth area for Sportsbooks – what sports and where’s the incremental revenue?
    * The growth of financial betting platforms – do they have a future with multi-platform operators?

    One final thing. I’d be amazed if online poker doesn’t get legalised on a state by state basis within the next two years. That’s a bonanza for online marketers in the US. Gird your loins…