Could branded slots define the future of iGaming?

Branded slots have been part of the scene for almost two decades, showcasing some of the world's most renowned figures on the reels of our beloved games.

Let's delve into the journey of branded slots from their inception to their evolution in 2022, assessing their licensing value and pondering if they indeed represent the future of iGaming.

So, without further delay, let's journey back to 2004 when branded slots made their online debut.

2004 marked the dawn of the branded slot movement

Two principal developers of online slots, Microgaming from the Isle of Man and Swedish-based NetEnt, spearheaded the rise of branded slots.

Microgaming, the oldest slot developer, launched the first branded slot in 2004 with 'Tomb Raider', following the enduring Sega Saturn and PS1 game. Three years later, they introduced 'Hitman'.

Observing Microgaming's achievements, NetEnt decided to pursue a comparable path. The illustrious Stockholm-based firm struck lucrative deals with Universal, giving access to famous Hollywood films and top television series.

NetEnt's initial branded release centered around the infamous Tony Montana, or Scarface. Its towering success led to further deals with studios like Colombia Pictures, 20th Century Fox, and Sony Entertainment, resulting in more remarkable games.

NetEnt delivered hit after hit with branded slots like 'South Park: Reel Chaos', 'Creature from the Black Lagoon', 'The Invisible Man', 'Frankenstein', 'Dracula', and 'The Phantom’s Curse', captivating players with recognizable figures and dazzling graphics.

To celebrate their 20th anniversary in 2016, NetEnt negotiated with Universal's higher-ups to launch slots featuring legendary rock stars Guns N’ Roses, Motörhead, and Jimi Hendrix.

These slots enjoyed tremendous popularity, drawing countless fans eager to experience games with their favorite musicians.

The explosion of mainstream branded slots

Historically, when a formula works in the slot world, others replicate it in hopes of sharing in the success. Leading developers like Playtech, Blueprint Gaming, Play’n GO, SG Digital, and IGT have created branded slots based on prominent TV shows, films, video games, and music icons.

Initially, these branded slots revolved around niche themes like 'Frankie Dettori', 'CSI', ‘Nitro Circus’, and 'Lothar Matthäus'; while popular, they generally appealed to specific fan bases.

It was a shrewd move to partner with smaller but dedicated fan bases due to players choosing these games just for their brand recognition, even if those weren't brands they were previously invested in.

When players see branded products in online slots, they tend to place more trust in the game, despite the persistent scepticism many feel towards them.

The general assumption is that when a slot carries a brand’s name, it’s reliable and fair. And indeed, all slots are rigorously tested and confirmed for fairness at licensed casinos, yet some sceptics remain unconvinced.

With the ascent of online slots and casinos, developers' budgets have increased substantially, allowing companies to integrate higher-profile celebrities and brands into their games.

In the past couple of years, we've seen outstanding partnerships resulting in slots inspired by famous names like Gordon Ramsay, Joe Exotic, Street Fighter II, WWE, Rick and Morty, Game of Thrones, and Alice Cooper.

This surge might stem from increased trust in prominent names like Gordon Ramsay within iGaming or simply from more funding available to secure A-list figures. Such partnerships enhance the legitimacy of an industry often eyed with skepticism.

Do the expenses of licensing really justify their effectiveness?

We can't detail the exact costs for slot licensing, but when major brands are in the picture, it's safe to assume the fees stretch far into the millions.

During an iGaming FM podcast, Yggdrasil CEO Fredrik Elmqvist and Relax Gaming Chief Product Officer Simon Hammon shared insights from their time at NetEnt, particularly about obtaining the Scarface license.

Initially, the board vetoed licensing Scarface due to its associations with crime and drugs, but upon learning Unibet's keen interest in hosting the game online, attitudes shifted.

Seeing genuine demand, the board reversed its decision, but quickly realized that acquiring a Scarface license wouldn't be cheap or straightforward.

Al Pacino himself reportedly requested the full licensing cost upfront before the game’s development could even begin—a hefty financial commitment.

Though the Scarface slot was retired with Flash, its impact with players and operators proved the investment worthwhile, demonstrating the appeal and effectiveness of branded slots.

While many branded games eventually recoup more than their costs, some unbranded slots, if innovative, might achieve similar or greater financial success.

During the same podcast, they noted the industry's shift from branded slots towards creating unique, flagship brands.

Are branded slots the future or not?

Debating whether iGaming's future firmly lies with branded slots isn't straightforward.

On one side, industry experts like Elmqvist and Hammon highlight a shift in focus; on the other, developers such as Blueprint, Microgaming, and NetEnt are still actively releasing titles like 'Alice Cooper and the Tome of Madness', 'WWE Legends: Link & Win', and 'Gordon Ramsay Hell’s Kitchen'.

Currently, there's a noticeable boom in branded slots appearing across online casinos, a development we warmly welcome alongside established brands entering the realm of online gaming. Nonetheless, claiming they are the future might be premature.

The future seems more inclined towards imaginative slots with novel mechanics like 'Infinity Reels', 'Gigablox', 'Cluster Pays', 'Slingo', or 'Link & Win'. Flaunting a game with beloved characters doesn’t guarantee engagement if the gameplay isn't pioneering or fun.

A recurring issue with some branded slots is their tendency to mirror existing games while simply adding familiar franchise elements. Until this changes, they'll remain a delightful, albeit transient, addition.