So many mobiles. So. Many. Mobiles.
According to a newly released study by the International Telecommunications Union, global mobile penetration grew from around 5 percent in 1998 to 61.1 percent in 2008 -- meaning about 4.1 billion subscriptions exist now for mobile cellular telephone use.
Between 2002 and 2007, mobile penetration in Asia, specifically, grew at a 216 percent clip -- from 12 percent to 38 percent.
Promising figures for the mobile gambling community, no doubt. But sector leaders -- suppliers and operators -- who attended the recent Asian i-Gaming Conference and Expo in Macau still talked more of the lucrative future than the crux-laden present. Cautious optimism, of course, was the sentiment most expressed.
With Asian mobile networks leery of associating themselves with gambling, and regulation likely to remain a strong barrier to entry, Matti Zinder, chief executive of the mobile software developer Spin3, was at times guarded -- at others, candid -- about his company's progress in Asia so far.
What's the outlook for mobile in Asia now?
I think it's cautiously optimistic, as always. There are hurdles to overcome, but generally speaking, I don't think my outlook on Asia has changed. It's still a very big market -- huge potential -- and it's just a matter of finding the right combination of factors to make things go. That means finding the right partners, getting the right product in place, getting your right distribution channels in place, and this year, we're much more advanced toward that goal.
Speaking of partners, I know Spin3 had a deal in place with PacificNet Inc., in 2008, that was cancelled in June. Could you give some color on why this partnership was terminated, and have you found another local partner?
The short answer is, yes, we have found another partner. The deal was cancelled because there were internal issues.
Can you say anything about the identity of your new partner?
I know Spin3 is bullish on smartphone technology and its application in the interactive gambling world. What can you tell me about smartphone penetration in Asia?
Well, just as an example, in Japan, 40 percent of phones in 2009 were smartphones -- that's how bullish we are. Japan is a very important, very interesting marketplace. So there is penetration now, and that trend, I think, will intensify.
Can you tell me a bit about your games development strategy in Japan? Are you all thinking of doing some kind of pachinko variant?
Everything's open. We've got a team developers that have gone around Asia, on the ground, to see what's being done -- what kind of games are being played, what are players' preferences, etc. We are investing a lot of time and money in getting these things right, and we've been doing it for the last four years. We're not giving up on this -- not only are we not giving up, we believe this market will generate something very similar to what has happened online. It's completely untapped, as far as the technical issues, the business-related issues, the marketing -- the whole package around it -- and that's where we're placing our bet.
Can you talk to me about the browser-based workaround Spin3 has created for the iPhone? I know that the iPhone App Store doesn't allow users to download gambling games, so how has this workaround performed for you all so far?
It's been very good. You can see that we're very optimistic about it. The results have been better than expected.
I spoke with Charles Cohen of Probability not long ago about browser-based workarounds for the iPhone, and he suggested that one his company developed offered "only a world of pain when it came to security, resilience and marketing." Have you all experienced similar difficulties?
Our games are operational, and we maintain the highest standards of security and player confidentiality. We have three patents pending on our technology, one of them relates to security technology called SpinLoc. We're a little bit ahead of the competition from that perspective. I'm very comfortable with it.
I think the next big breakthrough is going to come. Generally speaking, overall in interactive gaming, if you look at the landscape and see the pokers, the live dealers, the interactive television, nothing compares to the penetration rate of mobile phones. And I don't think that anything can compare to the user experience that you can generate on an iPhone. It's going to take time . . . a little bit of time to get these things going, but I think that we're finally starting to make some headway, and I'm very excited about it.
I asked some of the other mobile executives at AiG about the near-term potential for live-dealer applications, and the consensus was: not even close. What do you think?
It's something we're looking into. It's not going to happen soon, but there are technologies available to do that. Actually, here in Hong Kong, one of the systems we tried provides you with what's called IVVR, or Interactive Voice and Video Response. The technology is in place -- I don't think it's far away.
Which jurisdiction in Asia, do you think, will be the first to support regulated mobile gambling? Vietnam was among the top picks this week.
Vietnam . . . could be. Could very well be.
We're not necessarily targeting only casino-type gaming; there are legal avenues, like the lottery operations. That's not something we're actively doing, but it's an area that if you're talking about regulated gaming, that's an option.
The main thing that we're looking at, actually, is supporting technologies -- so supporting games around land-based businesses that are hurting very badly right now. These countries are looking for interactive-type games to supplement -- not necessarily for prizes or for money -- but as a complimentary technology around their land-based systems. And that's actually where we're getting the most traction.
