Some thoughts on yesterday's operators CEO panel. The lineup was as follows:
- Mark Blandford, Director, Valhalla Investments
- Gigi Levy, CEO, 888
- Jim Ryan, CEO, PartyGaming
- Malcolm Graham, PKR
- Norbert Teufelberger, Co-CEO, bwin
- Bob Cahill, President, GigiMedia
Moderator: Sue Schneider, Consultant, Clarion Gaming, United States

I managed to find a place to plug in my computer, but it was approximately three postal codes away from the stage.

The view from the  very back of the room.  See the tiny panelists slightly left of center.

Oh, about  the discussion. . .

The lineup was superb. These are the heads of the industry's leading businesses, and they have a wealth of knowledge to share. That's a plus, but on the other hand, like they suppliers panel before them, they were guarded.

The main thing I took from the panel: The lines between operator and supplier in this industry are blurring more by the day. It's interesting that much of the discussion revolved around supplying enabling technology rather than operating online gambling services.

PartyGaming, which used to license its technology to other operators, but somewhat abruptly stopped doing so in 2006, has launched its next-generation software, and according to Jim Ryan, is "now in the white label business."

Ryan was later reminded by a delegate that Party dumped its white label clients and asked whether returning to a white label model under such circumstances would cause a backlash. Ryan pointed out that things have changed, that Party had 40 percent market share when it cut ties with licensees and that they now have 8 percent of the market. The follow-up question: Will they dump their clients again if they climb back to 40 percent? The answer: No.

I-gaming operators, as seen from the front row.

Mark Blandford, who has enjoyed a whole bunch of success in this industry as an operator, is now working for an investment group, and he acknowledged during the panel that it's a pretty good time to be in cash. I have a feeling there might just be a delegate or two interested in talking to him.

Malcom Graham pointed out that gaming is not recession-proof. Perhaps it was when supply side was low, he said, but supply is now abundant and there will be some pain. 

Gigi Levy brought up a topic that has been tossed about for years, posing the question: Is anyone a pure supplier with no links to operations? He believes the answer is no, and he would like to see more transparency among suppliers. Jim Ryan echoed the call for transparency. Graham, on the other hand, is steadfast against being a supplier as well as an operator. There's a clear conflict, he said, and he believes competitive tension is unavoidable.

Jim Ryan echoed the supplier panel sentiment from yesterday that from a customer's standpoint, the one-stop-shop model far more appealing.

Blandford sees regulatory clarity on the EU level coming in five years. They can't afford to "stay on the fence" with these policies, he said. In this industry, in my mind, the term "regulatory clarity" seems oxymoronic. Will there ever be clarity?

Finally some thoughts on the investment side. . . Schneider asked the panelists if they expected privatization among the industry's leading operators. Levy said privatization is not the way to go, once again emphasizing the importance of transparency. Malcolm brought up the point that there would be valuation problems and that big companies won't be able to raise the capital necessary to privatize. He predicts we'll see privatization among smaller and medium companies.

An audience member asked the panelists whether their businesses are better off focusing on market share or profitability. The consensus among panelists was that market share was important for a young industry but that the shift to profitability has been made. There's also a consensus that Bwin nailed the market share first/profit next strategy, and Teufelberger acknowledged that competition and tightening margins has forced them to focus more on profitability. As Blandford pointed out, bwin was afforded the luxury of taking this route because they are not public. Listed company's he said, must focus on profitability because of short-term market demands.

Levy disagreed with the notion that branding (to secure market share) is no longer important, and he pointed out that millions of dollars are still going into branding and that it's still an essential part of the business. Jim Ryan suggested that a balance has to be struck between the two strategies, and reminded the audience that market share is essential in the poker space because liquidity is everything. "I think if you choose one verses the other," he said, "it's going to be a painful year."