Digital Transformation Project – Group 9 – Holland Casino
Since 1975, Holland Casino has been the only Dutch casino with a license to operate as a full casino. The aim of the government with permitting just one license to only one casino was to provide people with a legal, reliable and controllable supply of gambling. However, Starting from 1st of January, online gambling with real money will become legal in the Netherlands. This will lead to a restructuring of the gambling business within the country.
Our report focused on analyzing the current use of Holland Casino’s IT applications, after which we proposed a business model that involves an innovative IT-enabled service in order to transform the business. For Holland Casino in particular this means that we focused on the development of an online gambling platform, something that has not been legalized in The Netherlands at this moment.
After the legalization, the market will become newly easy to enter because of recently emerged technologies such as tablets and mobile phones and the changes to government regulations. Innovative and quickly adapting companies can use this to earn more competitive advantage and market share. On the other hand companies who are not so flexible will start losing business value and position.Currently the online gambling market is attractive to attack because of the large player base that would prefer to play on their native language – Dutch. A lot of the players will be happier if they have immediate access to gambling, especially when it is in their native language. A big part of the population who have not enough time or do not like playing poker on premise will be attracted to the online game.
The role of information in a company like Holland Casino is hugely important. The collection of information at Holland Casino already starts when customers enter the building However, because we are talking about a casino here, there are some more regulations that require Holland Casino to store their clients’ information.
We decided to summarize the benefits and limitations for developing an online poker platform for Holland Casino in a SWOT table.
- Already established brand name and image
- Relatively low hardware and infrastructure costs
- Small amount of competitive products
- Relatively low Buyers Power
- Huge demand for such products
- High development costs
- High government taxes
- Very high competition rivalry on international level
- Relatively high Suppliers Power
- First mover advantage
- Can keep player base through lock in strategy
- Other already established game companies can enter the market
- Potential conflicts in restructuring the company’s organization and strategic plans
Holland Casino is operating in a business environment, where online gambling becomes more and more popular. With the new regulation coming in 2015, legalize online gambling in the Netherlands, there arise new opportunities for this well-known casino. Holland Casino could expend their market share on the online gambling market and offer their customers in the Netherlands multiple gamble experiences (online or in the physical casinos).
Holland Casino (2013), Annual Report