Probability plc cannot yet be considered as one of the heavyweights in the mobile casino software space, but they have a much vaunted strategy in place for developing their existing properties and forming new partnerships as part of a global expansion. They are somewhat unique in the industry in providing their own managed casino platforms. Both Moobile Games and LadyLucks Mobile Casino appear on our list of recommended mobile casinos, demonstrating just how highly regarded they are. However, the company acknowledges that while their own brands are perfect for giving the company a foothold and something of a shop window in the marketplace, true growth as a software provider comes from partnerships with other brands.
Microgaming, Playtech and Net Entertainment, the three biggest brands in competition with Probability for mobile casino software provision, had huge head starts in terms of establishing market share. They have been providing software to online casinos for many years and most brands have opted to extend the partnership to mobile devices. This leaves very little by way of major brands looking for a new provider, and so Probability has had to develop a unique strategy to carve out a niche.
In terms of their own brands, both are already thought to be profitable. However, the value for the company truly lies in the fact that it demonstrates that Probability’s team is more than capable of handling a full service mobile casino solution. Moobile Games and LadyLucks, regardless of their own financial success, are two extremely strong weapons when entering a tender process.
The first step in the expansion of the company looks certain to be expansion in its home market of the UK, together with pushing their new partnerships in Italy. Italy itself has always been something of a mystery for mobile casino providers as legislation outright prevented expansion into the country. However, Probability stole a March on their competitors by taking what many would consider to be a gamble and becoming one of the first international providers to receive an Italian licence. This has allowed them to already become the predominant international force in the country, with three B2B clients already signed up to utilise their mobile platform.
Probability’s chief executive, Charles Cohen, has never been one to shy away from providing the news media with comments to back up every story that comes from within the company, and he illustrated just how important he feels Italy will be in terms of the success or failure of 2013 as a whole.
“I suppose the really big thing from an investor point of view is when do we launch slots in Italy and at what point do we start to see visibility on what kind of revenue potential there is.”
That comment alone highlights the fact that even at this stage, Probability banking its entire international growth on a single, as yet untested market is a gamble in its own right. Even with three customers in the country, they have only so far launched a handful of products for public consumption. Such a small data set may not truly illustrate the potential of the market and Probability will need to continue to investing time and money if they are to reap the rewards that come with being the first mover.
Italy certainly has the population to provide a steady revenue stream, but the question remains whether they have the appetite for mobile casino gaming that is present throughout the rest of Europe. If the gamble pays off, then Probability will have a massive share of a vastly profitable market, but if it fails then they will have wasted valuable time and resources on trying to expand somewhere, thus setting them back in their efforts to pick up market share in more established mobile casino gaming markets.
Elsewhere in the latest Probability news, the company confirmed that their first title developed specifically for a B2B partner, the 40 Shades of Santa slot launched by Paddy Power, was a roaring success. We often mention Paddy Power as being something of a leader in the mobile space, with the recent launches of their dedicated Deal or No Deal real money app and being one of the first mobile casinos to release an app to the Apple App Store and teaming up with the brand in the UK seems like far less of a gamble for Probability, who will no doubt be looking to further consolidate their position in their home market through additional creations over the coming year.