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The Swedish Gaming Market
According the National Gaming Board, Swedes spent US$3.6 billion on gaming in 2001 (an increase of 2 percent from 2000). This corresponds to approximately US$389 per capita. The Swedes spend slightly more than 3 percent of their disposable income on gaming.
Spotlight: Netgame Factory
Netgame Factory, a Swedish supplier of mobile gaming solutions, provides a wide range of services through its Game Gateway System platform. The privately owned company was founded in early 2000. Shareholders range from original founders to venture capital firms, such as BrainHeart Capital, to telecom companies, such as Telia Mobile, to private investors and employees.
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On Oct. 7, the Swedish population of nearly 9 million was presented with a new gaming product called "Yee-Haa!!"
The two-step game, developed by Swedish Netgame Factory for Folkspel, the People's Association's body for good causes gaming and lotteries, combines a traditional scratch card with SMS interactivity. According to the makers, two ingredients, the 3-out-off-9 scratch card and SMS gaming content, will make it a success. However, the question remains: Will this be win-win-situation?
Folkspel is owned by 73 national non-profit organizations, which consist of 35,000 associations and 7 million members. Folkspel is the holder of the licenses of:
- BingoLotto (a lottery concept based on a TV-show) with an estimated 2002 turnover of US$306 million;
- FärgFemman (Colour Five, a scratch lottery connected to BingoLotto) with an estimated 2002 turnover of nearly US$11 million;
- Sänka Skepp (BattleShip, a scratch lottery connected to BingoLotto, launched in August, 2002) with an estimated 2002 turnover of US$3 million;
- Julkalendern (Christmas Calendar, with a number lottery) with an estimated 2002 turnover of US$12 million; and
- Yee-Haa! (scratch lottery combined with an SMS-competition based on quiz) with an estimated 2002 turnover of US$3 million.
The Concept
- The player starts with playing the traditional lottery by scratching the scratch area and collecting the winnings like any other scratch-card winning. The top prize for this part is a little over US$110,000. Every fith ticket is a winner.
- After playing the match-three game, the player can play the wireless game included on the ticket. To initiate this game, the player scratches off the righthand-side game area to reveal a code and sends the code via SMS to a specific short number. (The same number is used for all the different operators.)
- The player receives an SMS message with a daily Quiz Question. He answers the question by sending back an 'A,' 'B' or 'C,' depending on which alternative he's chosen. For every question there are three alternatives given, and the player sends the chosen alternative back without calling a new number. This part of the game is included in the ticket price.
- The player receives an answer: "Yee-Haa, you have answered right" or "Sorry, your answer was wrong." All players at this time have the option to receive more questions: "Do you want to increase your chance to win? You can have one more question to an extra cost of 75 Dollar cents." Now the player can choose among three topics: sports, entertainment or general questions. The player answers with the letter for the topic he has chosen.
- The player receives the next question and answers with the alternative he thinks is the right one. He also gets a new opportunity to choose another topic.
- The player can take three extra questions. Every day there is a drawing in which five players qualify for the "Daily Final" and compete in a quiz game. Two players each day win the daily prize. Then every week there is a drawing in which five players qualify for the "Weekly Final." The winner of this final receives a mobile phone. After the tickets are sold, there will be a "Great Final," whereby 10 players compete for the top prize of $110,000.
The game's theme is "Always a second chance!"
It's also the theme for the marketing.
It's a Huge Business, but Who Wins?
The conceptual rights and the operations of BingoLotto, FärgFemman, Sänka Skepp and Julkalendern are owned by Novamedia Sweden. In 2001 Novamedia Sweden transferred US$117 million (approximately 38 percent of its turnover of US$310 million) to Folkspel to be used for the good causes. Yields received by Folkspel in 2001 came exclusively from the gaming products of Novamedia Sweden.
Thus, Novamedia Sweden is the direct "beneficiary" for the Yee-Haa!! project.
Susanne Hörmander, a spokeswoman for Folkspel, said the developing costs for Ye-Haa!! will not be revealed. Boudewijn Poelmann, the CEO of Holland-based Novamedia (including Novamedia Sweden), is not happy about this.
"It seems that the investments made for this new game, Yee-Haa!!, are coming directly from the income realized by Novamedia Sweden," Poelmann said. "So, Folkspel, with the money generated by Novamedia Sweden, is financing a potential competitor: NetGames Factory. Of course, Folkspel is free to do whatever they want, however, we do not like this development. I have been in Sweden and, let's say, we had a serious discussion."
The number of SMS messages in Sweden is increasing enormously. An annual increase of 129 million in 1999 exploded to over 1 billion in 2001.
Therefore, the creators of Yee-Haa!! believe strongly that the combination of the successful scratch cards and the popular SMS will be a winner. But, who will be the real winner? Netgame Factory? Folkspel? The players? Novamedia?
With three weeks of operation in the books, there is still no information available on participation.Yee-Haa!!