Conversation with Evolution's Todd Haushalter
And a few observations from Malta 🇲🇹
I was in Malta last week for the NEXT Summit Valletta 2024 and had the chance to get valuable insights from industry insiders.
Todd Haushalter
Evolution’s Chief Product Officer was very generous with his time and I got to spend close to two hours with him.
On a personal level, Todd impressed me in two aspects. The first, probably predictably, is that he is a very smart guy laser-focused on the product. The second is how open he seems to receiving ideas as well as sharing his thought process and expertise, not only with a clueless shareholder but -more importantly- with other employees. If I had to guess, I’d say that his conduct probably has a lot to with Evolution’s product-obsessed culture which will hopefully be carried on beyond his term.
Some tidbits from our conversation:
Evolution has matched its R&D capabilities across its main studios and Todd has moved his base of R&D from Riga to Malta. He leads the global R&D efforts with frequent teleconferencing and a lot of traveling.
Innovating in RNG mechanics is hard. Players seem to prefer the basic wheel mechanics over anything new.
Game show category in the US is very promising. Lightning Roulette, “if you count it as a game show”, has been very successful. Crazy Time is still at the very early stages of market reach, but its per-player metrics in New Jersey are even better than the rest of the world.
The VR experiment with the Gonzo’s Treasure Hunt failed because the user funnel was very inefficient. (Who would want to input their login credentials into an online casino with a VR headset?)
Product Pitch
Not to waste my chance with the person-in-charge, I pitched a few product ideas for Evolution. I’m sharing these with the hope that the feedback I received from Todd may be useful in understanding how he approaches product development.
Idea: Tiktok-like lobby with infinite scrolling of Evolution games
Todd: Main challenge is the games’ loading times.
Idea: Tinder parody by NoLimit City with left/right swipes (instead of vertical rolls)
Todd: It needs to have interesting consequences of choosing left vs right swipes
Idea: Asian game shows in local languages
Todd: We have a similar game called Imperial Quest.
Idea: Stock Market adaptation for crypto trading
Todd: We should!
Idea: Smart TV support for games
Todd: Challenge would be getting app support on smart TV platforms. Screen mirroring already solves this.
Industry Observations
I also had the opportunity to make a few observations regarding the iGaming market at large and Evolution’s place in it.
Malta Expansion
Following up on Evolution’s lackluster expansion in Malta in 2023, I was alerted to the recent local news. It seems Evolution has recently launched new studio space in Malta and intends to increase its local workforce of 1400 by 50%.
Slots
Industry consensus seems to hold Pragmatic as the leader in the slots space, both in means of products and promotions. Evolution is not regarded as a good performer since its entrance into the RNG space.
Regulated vs Unregulated Growth
Across geographies, the regulated iGaming industry seems to be increasingly critical of regulations whether in newly opening markets like Latin America or markets where regulations are getting more restrictive like in Europe. Due to these obstacles combined with the local jurisdictions’ perceived lack of power on stopping offshore payments, the industry consensus seems to expect that the majority of upcoming iGaming growth to come from unregulated sources globally.
Brazil
The country has no tradition of land-based casinos. It will take some effort on game suppliers’ part to adapt games and educate users. Pragmatic’s slot games (particularly the Fortune Tiger) and Evolution’s localized live tables are seen as promising efforts.
Evolution the Incumbent
Among some competitors and industry insiders, Evolution seems to have the image of a slow incumbent that lacks the “hunger” to pursue all possible avenues of products and promotions. On the product side, the criticism includes not pushing the envelope in its famous RNG franchise releases and not expanding into new product verticals (like sportsbook, poker, bingo) organically or by acquisitions. As for promotions, Evolution is criticized for not using the full force of its scale in its budgeting for flashy player promotions or big-time sports sponsorships.
Disclaimer: This is not investment advice. Please read the full disclaimer in the About page.
Great insights. Thanks for sharing.
Overall, what was your sense as far as growth for EVO? Are you more or less bullish for its opportunities? My sense in the US, is that as more states enact internet gambling/sports betting, and get accustomed to the tax revenue, more and more will pass legalization legislation.