Online bingo is growing at such a rate that it is fast becoming one of egaming's success stories. Jenni Shuttleworth talks to Virtue Fusion CEO Bob McCulloch about the company's experience as a developer and licensor of online bingo products.
With high jackpots and low-priced entry, bingo has always had mass market appeal. Changes in legislation - namely the smoking ban introduction - left many questioning the future of the game in the UK. But thanks to its seamless digital adaptation, appetite for bingo has actually been boosted and both customer numbers and bingo providers have grown hugely.
Virtue Fusion Alderney has been at the forefront of the conversion of this centuries-old game to an egaming phenomenon worth hundreds of millions of pounds. Founded in a small office in Margaret Street, just off London’s Regent Street, the company began in 2001 with a team of five, led by Al Haig-Thomas, developing gaming software. With a UK market now worth in excess of half a billion pounds as a backdrop, Virtue Fusion has expanded each year so that almost a decade on, the group now employs 285 staff in the capital and on the Channel Islands.
Bob McCulloch, who became CEO in 2007, said the reason the company became a dominant player in the industry was because of key decisions that were made before his arrival in 2005, which set the process in motion. "Focus was initially on soft games and bingo. In 2005, the company launched a mobile platform that was advertised on Orange World and Vodafone Live but still did not make a satisfactory return, so we piled all our resources into online bingo," said McCulloch. The group now develops and supports a platform featuring 50 games that appeal to bingo players and a full back office solution. It also offers a turnkey service suite including CRM, anti-fraud measures, KYC, customer support, chat hosting and affiliate marketing services.
Significant moments in Virtue Fusion’s relatively short history include developing the code for Gala in 2001; obtaining a gaming licence in 2004; launching with its first customer Mecca in the same year; and signing a joint-venture with the NBGA in 2006. The company has also doubled in size under McCulloch’s stewardship. He names the multi-currency network launch in March 2009 and going live with Endemol’s Deal or No Deal bingo six months later as triumphs since his arrival.
McCulloch highlights improving technologies as the main stimulus for the changes in egaming. "The ever-improving speed and availability of broadband and increased power of personal computers is what allows us to continually develop products, while higher consumer sophistication and expectation keeps us on our toes," he said. "New browser-based technologies help shape the way online bingo is provided to the player and will increasingly help to make mobile gaming feasible. Mobiles are increasingly more capable of delivering acceptable gaming experiences and connectivity issues that have plagued the industry are slowly abating," he continued. However, while bingo is available on mobiles, this will not become a priority until it benefits from a significant player network.
The current strategy is further consolidation in the UK and increasing a European presence that contributes towards 30,000 players every day, helping drive stakes totalling more than €100,000,000 each month. "Pressure from the European Commission on member states has accelerated the pace of change in gaming law in a number of countries, but the Commission has not been exerting force in isolation. The financial crisis that started in 2007 has increased government debt and with it the search for new revenue streams. Impending legislation to regulate online bingo in Italy, France and Germany will probably drive more players online as mainstream media can be adopted to acquire customers, further broadening the reach of the game," said McCulloch.
Expanding into new territories is not without difficulties though and means encountering idiosyncrasies. "Apart from language, the major differences relate to government legislation and local cultures. As we have seen recently in France, state decisions can turn your strategy upside down. Alternatively, in Italy, the model appears to be one of profitable co-operation between business and government, providing a stable base from which businesses can progress.
"Regional customers also play a significant part in the success of any venture and there’s no underestimating the value of local knowledge and partnerships. However, once again it’s necessary to tread carefully when choosing a local partner, as has been the experience of a number of notable companies in both Spain and Italy," continued McCulloch.
With a presence on the continent established over two years ago when launching into mainland Europe and Scandinavia, the company is experienced at countering these difficulties. McCulloch also points out the importance of matters closer to home before they potentially head even further afield to places like Asia and - pending legislative changes - the US.
McCulloch will disclose little about what the immediate future may hold: "There are always new projects in the pipeline, without which we would not be able to continue our programme of development. The recent success of the Deal or No Deal game in partnership with Endemol has opened up a new element in the bingo market, and one we intend to exploit. Further branded products are planned, some of which will come to market very shortly."
Bingo will continue to evolve and be influenced and shaped by future generations, regulation, technology and gaming culture. Bingo operators will need reliable platform providers that can offer compliant and innovative new products to outperform the competition. Virtue Fusion Alderney’s rise in the online bingo sector has been quick but calculated. Now ready to push further into markets abroad, the company can be confident in the approach that has served them well so far.
