Comparisons between the finance and gaming sectors are nothing new. Both have to deal with high-risk, both face complex regulations and must pay close attention to legislative developments, and both face the challenges of fraud and laundering, to name just two.
Discussions also often revolve around what the latter can learn from the former, and what contributions financial and payments innovations can make to betting companies. Payments is, after all, an essential part of the online gaming experience, as with any other form of commerce.
A company which walks the bridge between these two industries is Yolo Investments, a venture capital focused on seed- and A-stage investment opportunities across gaming and fintech.
In a recent discussion with betting industry news site SBC News, Yolo Investments’ Commercial Director, Mark Robinson, noted that payments and the movement of money have always been a challenge, explaining that: “If you live in the EU and your whole life’s there, you (mostly) don’t have any problems with payments.”
He continues.“Your bank is there, everything’s fine. You have Apple Pay, Google Pay, Insta, SEPA, bank transfers, everything arrives in a second. Your whole life’s in Europe. No problem. That’s not our world and that’s not the gaming world.
“Everything works, but if you’re a global operator, which we are and many other companies are, you need to move around various currencies, all these different currencies require proper corresponding banking partners to be set up for each one.
“And of course, each one has a fee and associated cost as well. This is where fintech comes into play and this is why it was a big focus for us. They can use new technologies, like blockchain, to move value around the world instantly and settle in relevant local currencies.
“If something works, we’re happy to introduce that to our portfolio and gaming companies.
“That type of innovation is what we’ve been looking for, and also benefits ourselves as well as our companies. The compliance side of finance has become very complex. There are opportunities to cater to smaller segments like igaming and crypto as they’re often less loved by traditional banks.”
Gaming and finance are two areas Yolo Investments understands very well. The company has a history of activity in the former. The firm is part of the wider Yolo Group, which operates platforms like Sportsbet.io, for example.
Although observing that igaming and fintech are very close in nature, Robinson also believes that it is now harder than ever for gaming firms to move finances around the world.
To read SBC News full interview with Mark Robinson, click HERE,