European gambling markets are facing a swathe of re-regulation across the continent which is making life more difficult for operators, who now have to comply with more measures while tax burdens also eat away at margins.

It is under that context that more operators are turning towards third party providers to run the backend solutions and provide the platform, leaving the operator to focus on its branding and day-to-day operations. 

A clear example of this is Merkur Group working with EveryMatrix in Denmark and Belgium to power its omnichannel sportsbook and casino operations. 

Richardt Funch, Global Commercial Director at EveryMatrix, told SBC News that the increased regulatory pressure is turning more operators to consider third party solutions.

“That’s why I think even from these big tier one operators out there like Merkur Group are getting to a point where they think do we focus on being up to speed on the platform and regulator technical, regulatory side of things, or do we invest more in actually taking care of of the player facing development and marketing, and and leave the tech to companies like EveryMatrix?”

Denmark showcases omnichannel sportsbook and casino

In Denmark, EveryMatrix is powering Merkur Group’s CashPoint brand, deploying its turnkey technology to operate the brand’s online sportsbook and casino, as well as 1,000 sports betting terminals in more than 230 retail locations across the country.

The company won the bid following a year-long process; Fuch explained that while technology and compliance factors were certainly key, it was EveryMatrix’s commitment to working locally with CashPoint that was a key differentiating factor.

“We’ve spent a lot of hours together with CashPoint, learning from them exactly how they want to roll this out. Of course we are also understanding all the details behind such a complex setup, which an omnichannel is.” 

He added that localisation was the secret ingredient to overcoming complexity. 

“As a platform provider, having that local established collaboration with CashPoint has really been a key for us. That’s also why our strategy is to be very locally focused and we are setting more and more teams up in other markets where we are live, to have that locally established collaboration with our partners.”

Belgium: meeting rigorous compliance demands

On 6th July, EveryMatrix announced another partnership with Merkur Group, replacing an in-house platform with its full tech stack for Belgian brand’s Betcenter’s retail and online sportsbook offering.

Not only does that serve as an endorsement of EveryMatrix’s technology, but also of its service and commitment to delivery. 

Funch explained: “Our dedicated delivery team and compliance team have been working very closely with BeCenter’s local team to secure the platform solution that we have applied to all compliance requirements in Belgium. Of course, it also applies to all the player needs and basically what BetCenter needs to to be attractive in the market and and from a compliance requirement perspective.”

Belgium is one example of a European market that has imposed more stringent regulations in recent times. Measures include an e-ID system for all retail gambling as well as the mandatory national Excluded Persons Information System (EPIS) to enforce self-exclusions.

“These things we have been implementing have not been easy, but they’re implemented now. It goes without saying without these things integrated and up and running you simply cannot run an operation in Belgium,” Funch added.

A symbiotic relationship

EveryMatrix’s double deal with Merkur Group showcases the technical and compliance capabilities of its turnkey platform. The company counts other operators like Danske Spil, BetGoodwin and BetTom as turnkey clients. 

But when SBC asked what makes a fruitful and long-term relationship and partnership, Funch noted that the technology has to ultimately lead to commercial success for its clients.

“We are a true, pure B2B provider. We don’t have any B2C revenues at all, meaning that we are one hundred percent dependent on our clients’ success. We actually call them partners because you know, if they don’t generate any revenues, we will not generate any revenues either. So in that sense I would say, when you have that kind of business model and philosophy as we have, then a long term commitment is required from both parties in order to be successful. 

“But also I have to say, we have a very strong relationship and bond with our clients because it is really win and lose together every day.”

Watch the full video above to hear Funch’s views on the opening of Austria’s regulated gambling market, the opening of other markets like New Zealand and Alberta, as well as EveryMatrix’s ambitions to be a top-three global supplier.