Comtrade Gaming's Valentine: build-or-buy casino platform choice is cyclical, with scale a key factor

Operators weighing whether to develop their own casino platform or license one from a vendor rarely keep the same view for long, according to Steven Valentine, chief commercial officer at Comtrade Gaming. He describes the decision as a cyclical process at operator level.

Valentine says operators often start with a third-party vendor, then come to feel it is holding them back and move development in-house. Over time, as expertise leaves the business, the in-house technology can age and begin to fail, prompting a return to the market. He puts that cycle at typically eight to 15 years, and says the pattern repeats often.

Scale is the first filter. In Valentine's view, an operator generating less than £250m in gross gaming revenue a year is unlikely to consider building. Above that level, owning the technology can make sense because the resources exist, but only if backed by a long-term commitment. Comtrade, which is based in Ljubljana, Slovenia, launched its first gaming software project in 2001, and Valentine joined Comtrade Gaming in 2010.

He argues that many operators underestimate the cost. Budgets and timescales are often extremely optimistic, and overheads such as round-the-clock technical support must be included. An iGaming platform is enterprise-level software, he says, and the team needed to build it is about the same size as the team needed to maintain and extend it, so spending does not fall after launch. The cost of ownership probably rises as complexity grows, and knowledge has to be transferred as staff change. He also points to a cultural challenge: operators must be prepared to effectively become a technology company and plan much further ahead than they are used to.

Valentine says few businesses make the transition successfully, and even larger operators tend to use several platforms. They often keep their own platform but rely on third-party systems when entering new markets, because they cannot react quickly enough. This hybrid model can also help manage compliance, since vendors bring local expertise and can reduce the risk of entering a new jurisdiction.

That makes vendor selection critical. Valentine recommends proper due diligence, including asking a vendor's existing clients for references, noting that much of the relevant information is freely available. While price matters, he warns that choosing the wrong provider can cost far more, including the cost of being unable to execute a business strategy.