"Adaptability and reliability will shape the future of companies in the gaming industry"

Could you share your insights and learnings regarding the impact the coronavirus pandemic is having on the gaming industry globally, and your business areas in particular? Have you seen a surge in your online gaming business?

The Covid-19 impact in the industry is visible. Most countries closed their casinos following the lockdown instructions. This decision has an obvious impact on the financial situation of the gaming companies that have an operation depending entirely or mostly on the land-based casinos' results. This economic effect in the industry players has consequences for the employees that unfortunately are now living unemployment or layoff scenarios. Looking ahead, we have to understand that this situation will cause a global slowdown in the sector and a necessary adaptation. Regulators and governments will have to define new operating rules for land-based casinos and bingo rooms. Players and gaming companies will also have to adjust themselves and their behaviour to the “new normal”.

In terms of learnings, I believe that this pandemic brought some lessons. We are, again in history, proving the human ability to rapidly reinvent business models and processes. Other key learning extracted is the technology applicability to ensure human and commercial relations. The companies are now understanding that a part of their employees can have an equal or even better performance working from home. At the same time, executives are now understanding that some of their daily tasks and regular trips could be easily replaced by digital meetings without prejudice of the outputs. This will have an impact on the future of the industry and in the way we do business.

FBM was no exception and was also affected by this lockdown, but we are proud to say, even with the temporary shutdown of the casinos and bingos in the markets where the brand operates, we keep paying all the salaries and any employee was fired due to the pandemic until now, and we will make all of our efforts to keep this policy. During the confinement, we noticed an increase of contacts in the online segment, some of our clients in the land-based universe are now preparing the launch of their online casinos. There are also examples from other casinos that are focusing their efforts on preparing the best offer possible for the reopening, as they see this break as an opportunity to rethink and refine their offer with new, attractive and innovating titles, especially in the slot games universe. 

What's your approach to this global crisis, and the strategies you are choosing in order to reduce damages, leverage the shift to online gaming, and pave the way for the fastest possible recovery? 

FBM strategy is focused on a phased restart plan. With this plan, we aim to ensure our employees' safety while we gradually increase our workforce and technical capacity. The first stage of this restart plan is already in place and following all the required safety measures. It is also important to mention that we can't predict how the pandemic will evolve. We have a progressive plan established but we will need to assess the situation step by step and follow the governmental and industry guidelines. In terms of product development, we have the necessary conditions to assure that we will develop all the games following the roadmap and the latest market demands, either for the land-based or the online segment.

What special measures or strategies is FBM taking as a company to protect/help employees, clients, local communities, etc., both in terms of health and financially? Is there a slowed/altered recruitment process in your plans or consideration?

The pandemic started and FBM decided to implement the home office regime for all the employees that could work from home. In this first stage of the restart plan, we guarantee that each person has masks and alcohol-based solution available to follow the health procedures. We are also producing protection kits and providing transportation solutions for the employees that don´t have an alternative to public transportation.

Our positive contribution to the local communities can be summed up in two points. The first is obviously the positive impact produced on the local economy by maintaining all the salaries, allowing people to maintain their routines. It is also important to mention the donation that FBM did in one action coordinated by Pagcor – Philippines Amusement and Gaming Corporation. The 20 million Philippine pesos (U$D 400.000) donated by FBM contributed directly to the acquisition of medical equipment by four health institutions of the Philippines.

The recruitment processes in FBM will follow the same policy before the pandemic period: we will have to evaluate the real need for new employees and, if necessary, we will hire professionals to fulfill FBM needs.

What precautions and further actions are in place in terms of responsible gambling and CSR?

Responsible gambling is also a great concern for FBM. Our intent is always to craft the best games and platforms to deliver an optimized and entertaining experience following all the safety, security and fairness recommendations shared by the entities responsible to regulate the industry. As a licensed software casino software prover, we understand and agree that only with a clear policy of responsible gaming is possible to address the sustainability of the industry. That is why our games also include self-control and self-protection tools for players like the bet limit for a specific game and maximum single bet by game or the minimum breaks of 3 seconds between each play to avoid impulsive behaviours.

In terms of Corporate Social Responsibility, and as a global gaming brand, we are very grateful for what the markets gave us during all these years. So, when the context is special tough, FBM is committed to help and give back to the community. The donation to Save the Children México after the earthquakes of September 2017 in the country, the distribution of essential goods in Batangas after the Taal Volcano´s eruption in January of this year or the recent donation in the Philippines to buy medical equipment in the fight against Covid-19 are some examples of how serious we take our connection with local communities.

How would you assess the existing resources, approach and measures taken by regulators, governments or other state institutions in the jurisdictions where you have operations? 

I believe that everyone is doing its best dealing with this situation. This is a period that requires a great adaptability from all the institutions. Society is still gathering information to know how to proceed and try to fight the virus in the best way possible. I will not assess the approach of each government and regulator. Our approach to this subject and our role as a player in this industry is to be supportive, comprehensive and available to share our concerns and inputs with regulators and governments. By now, we are observing a global lockdown and we know that our reality will change in the reopening. The routines in casinos and bingo rooms will be necessarily different and we are prepared to do our part and cooperate in everything we can to attain the best recovery possible for the sector.

What are in your opinion the possible scenarios this could bring for both the land-based and online sectors, and your company in particular, in the mid-long term?

I think that the scenarios will depend more on the mindset than on the segment. Sure, online gaming (that was already booming before the outbreak) is now attaining a historic growth and accelerating the industry transformation. But we believe that there are two concepts that will shape the future of companies in the gaming industry: adaptability and reliability. The companies that have the capacity to understand the shift on the player's mindset faster, and transform their products accordingly to these new needs, will collect the benefits. The reliability will also be important because leaderships are questioned in times of deep changes and companies must continue delivering products following the best standards to get in the market pace.

In terms of operation, FBM will certainly continue to have all the conditions to provide the best products for the land-based and online segments. The interest revealed by our actual and other potential clients during this period is a positive sign that we are receiving from the market. Besides this, FBM had already some integrations with online casinos in progress and was already planning the brand expansion for new markets before the pandemic. The negotiations involving this last topic are still alive and waiting for a reopening to have results. So, with the data and context that we have today, we can affirm that there is a vision of stability and progress for FBM in the mid-long term in the land-based and online markets.