Gioco Digitale. Pureplay. La Française des Jeux. Zest Networks. Card Player Media. All market leaders, and all using CyberArts’ Foundation platform to create today’s most profitable gaming companies. Here’s why each of these cutting-edge companies has chosen to partner with CyberArts. Unparalleled Profit Consider Gioco Digitale(GD), which led the Italian market with an outstanding 295. 3 [Cm] turnover for the period from January to June, 2009 (source: Gambling Compliance). Their decision to use CyberArts’ Foundation platform eliminated the need to pay network operators on the order of 12 to 30 percent of top-line revenues as well as up to 25 percent to affiliates to recruit new players. If GD had been built upon a White Label Network more than 30 Cm would have been paid out to a network operator and on the order of 75 Cm to affiliates. Traditional networks also restrict how operators manage and brand their poker room—leaving price the only way to differentiate. Operators typically use sign-up bonuses, promotions, rake back, and other incentives to attract new players, a strategy that prompts even the most loyal players to jump rooms. Such “cannibalism” of the aggregate player base between operators invariably leads to spiraling erosion of profits that leave operators working hard to make everyone else money. Market Share Leadership Flexibility is essential to being able to capitalize upon market opportunities, and those operators who can both quickly bring up a site and make the changes that offer an exceptional playing experience will dominate in their markets. Rather than require a year and a half to launch as is common with traditional gaming networks, CyberArts was able to establish Gioco Digitale’s leading online presence in a matter of months—and help them to maintain it against fierce competition. “CyberArts helped Gioco Digitale win the race to become the first legal poker room in Italy,” said Carlo D’Acunto, CTO at Gioco Digitale. “The Foundation platform has proven to be scalable and flexible, allowing us to rapidly add features and network partners, and giving us the stability to run the largest online poker tournaments in Italy. Through every stage, CyberArts has been a friendly and responsive partner, meeting and anticipating our needs. Gioco Digitale has built shareholder value very rapidly; our collaboration with CyberArts has been instrumental to this success. ” Unsurpassed Regulatory Compliance Part of the challenge early leaders like French lottery giant La Française des Jeux face is that government regulations may quickly change in ways that significantly impact how gaming must be implemented. With the expected further liberalization of gaming regulations internationally, operators need a platform that can quickly evolve to meet even the most stringent laws. Those who cannot prove that their platform is compliant will experience down-time leading to irreparable losses in both revenue and long-term market share. To help La Francaise des Jeux meet expected requirements of the upcoming French laws regulating online poker, CyberArts added many special features, such as support for sanctions and the ability to prohibit particular players from playing together. The flexible nature of Foundation made it possible to fulfill every one of their requirements. Regulations, however, go far beyond simply guaranteeing legal play and may require operators to be able to maintain virtual international borders or provide consistent revenue reporting. Foundation, with its modular architecture, offers a powerful platform that can meet any combination of regulations, giving operators the options and control they need to continue to adapt to any set of regulations with confidence. Another key regulatory issue involves tax revenues. When the activities from many operators are pooled together as they are in a traditional network, it becomes difficult to accurately assign revenues. Governments around the world – including those of Canada, Italy, France, Sweden, Ireland, and the United States – see online gaming as a significant source of new tax revenue prone to manipulation. For both tax accountability and a host of other reasons, governments are requiring servers to be locally based. Operators of traditional gaming networks face the problem that the servers hosting their players may be located anywhere in the world. As such, they could find themselves out of business overnight if a local server regulation is put in place. “Creating a poker site within the restrictions set out by the Italian government and our own particular requirements could have been a nightmare!” said Carlo Gualandri, CEO of Gioco Digitale. “By choosing CyberArts, the process was extraordinarily smooth. ” Operators who are going to be responsible for these regulations need to be in control of their site, their brand, reporting, and their players, something they can’t do when someone else manages their servers. Gaming sites built on Foundation completely avoid this problem since operators are in control of their own servers, making issues such as mitigating player identity questions, managing collusion, and accurately tracking revenue as required by regulations much easier to address. Complete Customization CyberArts enables operators to go beyond the traditional trappings of the online poker room. Operators are the ones who determine tournament schedules and payouts, how loyalty programs are tiered, and when new games are rolled out to maintain player interest. To achieve this level of customization requires more control than is possible with a traditional gaming network. “We require a platform that is flexible, and allows for a lot of HTML within the room so we can show different messaging to different types of users,” said Jason Kellerman, CEO of Pureplay. “On most rake sites a user is a user, whereas on our site, there are different levels of subscriptions and different classes of users to whom we want to show different messaging. ” Operators also have unprecedented control of their brand with the ability to customize the entire player experience from offering avatars to individual coloring signature tournaments to supporting unique community features. The flexibility of Foundation also allows operators to introduce unique features such as “rabbit hunting” where players who have folded can see what cards would have been dealt to them or Friend Finder which allows players to click on their friends’ names and open any tournaments in which they are participating. “We wanted extensive customization for SpadeClub that only CyberArts could supply,” said Barry Shulman, CEO of Card Player Media. “We needed a flexible, stable platform backed by a world-class custom software development team. ” Rapid Deployment The ability to quickly recognize and capitalize upon the needs of a particular demographic is essential to gaining trust and loyalty across a wider range of players. “The CyberArts software engineering staff is professional and responsive and they stay on top of issues,” Marc Cousineau, CTO, Pureplay. “They work alongside us to solve problems and improve the capabilities and features of our poker site. Their knowledgeable services staff is available around the clock to assist with deployment. We have several exciting new feature additions we are about to roll out and the flexibility of the Foundation platform has allowed us to complete these quickly. ” Using the Foundation APIs, operators can add their own customizations or call upon the talents of the CyberArts team. “In the past, we were afraid to touch our code, and we also didn’t have as responsive a team as we have with the CyberArts engineers,” said Pureplay’s Kellerman. “Over the course of two years, we made fewer changes on the prior platform than we made in the first two month after switching to CyberArts. ” As Kellerman sums up Pureplay’s relationship with CyberArts, “When one picks a software developer, there are some minimum requirements: 1) the software has to work, be scalable, and be flexible. But at the end of the day you’re investing in a team of developers, and these guys are very good, very knowledgeable, and when they make changes, they work. ” Growing Markets Poker, however, is by no means limited to personal computers. Operators can leverage the Foundation platform to offer a variety of server-based games, from public kiosks to networked slot video lottery terminals (VLT) to Facebook applications. Zest Networks, for example, has partnered with CyberArts to implement server-based gaming. Not only will this eliminate onsite visits to update machines, it allows Zest’s partners to maximize revenue by dynamically changing games to match player demographics, serving up real-time player marketing, and easily implementing themed products and promotions for holidays and conventions. “We are pleased to be able to leverage CyberArts’ proven platform as they have a great track record in the Italian market. With their advanced Foundation platform and Zest’s innovative gaming hardware and games, I believe we will have the best server-based gaming product on the market. ” Henrik Sandin, President of Zest Networks.