Managing cash flow is the basics of running any business. This is certainly true for an online gaming business.
At the same time, any business manager at an online gaming operator will tell you that business partnerships with content vendors and other third parties are necessary to create new value and bring in new revenues.
Despite the need for advanced business tools to run an online gaming company, the existing practices, according to the CEO of billing vendor LogNet Billing, Kirill Rechter, are not strategic and create limitations on how an operator can grow its business.
“We see that most of the currently implemented systems are developed in-house and are supported by complex chains of manual approvals,” explained Rechter.
“Operators are always telling us it takes days and sometimes weeks for them to finish their monthly billing,” he said.
Manual processes are obviously prone to human error. This can cause problems not only to the accuracy of invoices, but also to the operator’s financial reports. Manual processes also create limitations on the accuracy and response times for quality assurance and security audits.
Rechter and his company know a thing or two about billing for online gaming companies. Two of the biggest names in the space – 888 and Playtech – are using the company’s MaxBill solution to streamline their billing activities and automate their partnership reconciliation processes.
“There is a strong need to make billing and partner management capabilities holistic,” added Rechter.
According to the company, its MaxBill system can improve the business agility and capacity of an online gaming operator by supporting any business model or parameter. The system can allow operators to enter into multilayered business agreements and tiered revenue sharing schemes. By automating processes instead of relying on manual calculations, operators using MaxBill need less resources to support their contracts.
Rechter explained that operators can create greater value by building a network of partners that have access to billing methods and can select the best combination of agreements and services.
He feels that billing for online gaming is still at an early stage and sees a lot of potential, especially considering all the real-time transactions that need processing.
Rechter admitted that billing for online gaming is more complex than the other industries that the company works in, although concluded that complex cases can be configured in a simple way.