In a distinctive and dual role at Greentube, Michael Bauer serves as both the Chief Financial Officer (CFO) and the Director of the Product Department. This unique combination involves overseeing financial matters and directing the product department, which deals directly with games, their implementation, and the analysis of product success. Bauer discussed his unconventional leadership experience in the gambling industry in an interview with IGB.
While the roles of CFO and product director may appear contradictory, Bauer sees them as complementary. As CFO of Novomatic's digital games and entertainment division since 2015, he manages all financial aspects, ranging from accounting to mergers and acquisitions. In 2017, Bauer assumed the additional role of product director, responsible for guiding the strategic direction, game production, sales, and overseeing all operations related to the games’ portfolio.
Traditionally, such positions are held by different individuals in companies similar to Greentube, but according to Bauer, there is a strategic connection between them.
“Although my career has been in finance, I have focused on the strategic rather than the day-to-day aspects of operations,” he explains. “That means I tend to be involved in mergers and acquisitions or entering new markets from a financial perspective. These skills and experience complement the requirements for my role in the product department.”
Since 2017, Greentube has been expanding its global activities in various markets. Bauer describes the need for extensive structural work when entering new markets, assessing market size, potential, operator structures, and obtaining licenses.
In his role on the product side, Bauer emphasizes the importance of data analysis and a high level of awareness. “It has always been very interesting for me to look at each game and analyze its effectiveness. Certain types of games perform better in some markets than others, and analysis of this process is based on numbers. We can very quickly figure out what mechanics appeal to players in certain markets by learning to read the stats, and that's where my expertise lies.”
Innovation or Perish
In 2022, IGT's Gil Rotem emphasized the significance of "content is king" and "data is queen" in game development. Michael Bauer shares a similar perspective, highlighting the importance of careful data analysis for slot providers to tailor games to different player groups.
However, this doesn't imply solely focusing on producing guaranteed hits. Greentube allocates a specific portion of its budget to the development of new games and platforms, driven by innovative trends in the industry. Acknowledging that new concepts may fail, Bauer recognizes the potential for these innovations to offer a unique player experience, disrupting the market and attracting consumers.
While Bauer appreciates the joy in simple titles found in downtown Las Vegas casinos, he also admires video slots such as Rich Little Piggies MealTicket from Light & Wonder or Invaders from PlanetMoolah.
While emulating successful games from competitors with proven mechanics can be safe and effective, it may not lead to creating a breakthrough hit. Bauer warns against solely relying on this strategy.
Greentube diverges from the conventional path of game development, seeking to anticipate how the market will evolve. The company prioritizes investing in innovation, introducing new games and mechanics. However, this approach is carefully balanced, covering only a certain percentage of new releases to mitigate financial risks.
Inspiring Team and Cultivating Collaboration at Greentube
Michael Bauer's diverse career, spanning various industries, has contributed to his leadership approach at Greentube. Beginning at one of the Big Four accounting firms, he later delved into the construction, stock exchange, and automotive industries before finding his place in gaming.
Bauer emphasizes the importance of focused and responsible work in the results-oriented gaming business. While striving for goals and growth, he also values creating an enjoyable work environment. According to Bauer, the team's collective effort is crucial to outperforming competitors. He highlights the need to avoid complacency and continuous improvement, stating that competitors can easily surpass those who rely solely on past successes.
Work-life balance is a key aspect for Bauer, who believes that a fulfilling job is just as essential as personal time. Acknowledging the potential impact of a monotonous or joyless role on an individual's well-being, he emphasizes the importance of achieving a balance.
Reflecting on his own work-life balance, Bauer, who has three children, acknowledges the challenge of managing family time amidst a demanding job. He aims to be close to his family and limits work-related travel to what is strictly necessary. While recognizing the demands of his work, he expresses satisfaction with being able to fulfill both professional and personal responsibilities at the moment.
Balance and Ethics in Game Development
While Michael Bauer finds his role at Greentube exciting and rewarding, he acknowledges the responsibility he holds not only to the players but also to the company, ensuring its reputation and compliance with responsible gaming rules. Recognizing that gambling can be perceived as an unethical activity, Bauer emphasizes the importance of ethical considerations in the industry.
As a slot developer, Greentube's objectives are positioned a step away from the end consumer. Being part of the larger Novomatic business, Bauer is aware of the collective efforts to establish clear and strict guidelines for responsible gambling and marketing promotions' accessibility.
Over the years, Greentube has built a large team and effective processes with a focus on responsible gaming. Bauer emphasizes the company's commitment to avoid targeting gamers who may have gambling problems or those who cannot afford to gamble. The goal is to minimize problem gambling by taking every possible measure.
Reflecting on the industry's evolution, Bauer notes the progress made since the dot-com era. Availability testing and innovative methods to identify problematic behavior have propelled operators and suppliers "many years" ahead of where they were before in terms of responsible gaming measures.
Global Expansion of Greentube
The transformation of the dot.com gambling industry is creating new opportunities for providers like Greentube, particularly in the expanding North American market. Since the repeal of PASPA in 2018, North America has become a key strategic market for the company.
Canada, especially with the recent launch of Ontario's open competitive market on April 4, 2022, is emerging as a crucial battleground. Greentube is already working in Ontario with various partners, with Entain being its first client. Partnerships with the British Columbia Lottery Corporation and Loto-Québec further extend Greentube's presence in Canada, with Bauer expressing confidence in the company's future prospects.
While legal gambling exists in only six states south of the border, Bauer advises patience in the U.S. market, where processes from obtaining licenses to signing contracts with clients take significantly longer. Despite the challenges, he sees the advantage of the United States in its global capabilities, helping to overcome the associated hurdles.
Bauer notes the potential for growth within the U.S., fueled by a different public perception of gambling compared to Europe. In the U.S., gambling is primarily viewed as entertainment, presenting a unique opportunity for expansion and success in the market.
Looking to the Future: Disruption, Consolidation, and Surprises
In anticipating the broader market evolution, Michael Bauer acknowledges the difficulty of predicting the future due to potential technological advances that could suddenly alter the trajectory of development.
Bauer envisions increased disruption, highlighting the potential impact of major players like Microsoft, Google, and Amazon entering the gaming space, either by creating new products or acquiring existing market leaders. Even if these mega-brands choose to remain on the sidelines, Bauer believes consolidation will persist in the industry, with major brands growing through mergers and acquisitions.
Contrary to reducing the number of players on the field, Bauer predicts that consolidation will lead to people leaving companies, creating spin-offs and new opportunities, whether within the gaming sector or other industries. He emphasizes that successful businesses, through wise consolidation, can navigate the evolving landscape and continue to thrive.
While competition remains a constant, particularly pressuring margins from a supplier perspective, Bauer notes that addressing this challenge requires a focus on innovation.
Bauer is also prepared for unexpected events, whether in Europe, the U.S., or Latin America, where regulatory shifts in Brazil or the opening of new markets may reshape the industry. Reflecting on the unexpected regulated status of the United Arab Emirates, he emphasizes the need for flexibility in adapting to emerging market dynamics.
In his dual role overseeing Greentube's finances and gaming strategy, Bauer emphasizes the company's commitment to addressing emerging issues and navigating towards success while promoting responsible gaming.
