Investment Thesis Shifts Toward Product-Led Growth
Anton Backman, a general partner at Play Ventures, has outlined a strategic shift in the European gambling sector, arguing that future market leaders will operate more like consumer game companies than traditional bookmakers. In an interview with European Gaming, Backman detailed how free-to-play (F2P) mechanics are reshaping expectations for real-money gaming products, particularly among younger demographics accustomed to mobile and social platforms.
Play Ventures, an early-stage venture capital firm founded in 2018 by games entrepreneurs Harri Manninen and Henric Suuronen, has maintained offices in Singapore and Finland. The firm’s interest in online betting and casino games began around 2020, coinciding with founders from its mobile free-to-play network exploring real-money applications in skill-based games such as solitaire, bingo, and match-three titles.
The Social Gap in Real-Money Gaming
Backman noted that the emerging gambling audience, having grown up on mobile and social games, brings distinct expectations to the casino floor. He highlighted a significant disconnect between traditional slots and the social dynamics established in F2P environments.
“A slot is a completely isolated experience, while F2P social casinos cracked shared rooms and chat long ago,” Backman said. He pointed to instant games like Aviator, which often feature higher return-to-player (RTP) rates than standard online slots, as a case study in how social elements drive engagement. Backman attributed Aviator’s popularity to its entertainment value, specifically the real-time visibility of other players’ cash-outs.
“It feels much more like a multiplayer game than a slot, and it’s perfect for streamers,” he added. According to Backman, operators who recognize that players are purchasing an experience rather than just odds are positioned to succeed. However, he noted that the traditional F2P monetization model, which relies on virtual rooms and chat, does not directly translate to real-money gaming because the mathematics are certified and the core outcome is fixed by the published RTP.
Midnite and the Proprietary Content Model
The investment strategy behind these views is exemplified by Play Ventures’ backing of Midnite, a UK sportsbook and casino operator. Play Ventures joined Midnite’s $35 million Series C round in January 2026 as an existing investor. Midnite was co-founded by Nick Wright and Daniel Qu, described by Backman as two US-based founders building specifically for the UK market.
Backman identified the biggest gap in current European operator product design as the reliance on a catalogue of thousands of slots from the same few suppliers. He argued that this model limits retention, which is currently driven primarily by bonuses rather than the product itself.
“Retention is mainly driven by bonuses rather than the product itself, so when the bonus stops, the player often does too,” Backman said. He expects future winners to own their content rather than renting a shared catalogue, allowing for live tuning that moves into the metagame, content, and social layers instead of relying on adjustable odds.
Regulation as a Design Constraint
Backman also addressed the competitive landscape, noting that prediction markets, sweepstakes, and daily fantasy sports (DFS) pick’em formats are drawing significant capital and attention. He stated that while many of these products capitalize on regulatory arbitrage, firms like Kalshi and Polymarket have a “real fighting chance” to spawn new product generations, particularly in sports.
For Play Ventures, the ideal founders are those from consumer or gaming backgrounds who view regulation as a design constraint rather than an obstacle. Backman expects future industry leaders to treat compliance as an integral part of the product, building affordability and safer gambling tools directly into the user experience. He predicts that within three to five years, the market will be defined by companies that use habit, progression, and social connections to retain players, areas where most current operators are still lagging behind consumer app standards.
Why It Matters
This analysis signals a structural shift in European iGaming, where traditional slot-heavy models are being challenged by product-led, social-first platforms. Operators relying on third-party content and bonus-driven retention face pressure to develop proprietary experiences. For investors and regulators, the focus is moving toward sustainable engagement models that integrate compliance and social features, potentially redefining market leadership in the coming five years.
Karine Gomez is an enthusiastic writer and avid gamer with a particular love for PlayStation and casino gaming. Her deep knowledge of gaming trends and casino dynamics makes her articles both informative and engaging. Karine’s passion for PlayStation games and her firsthand experience with casino play shine through in her writing, offering readers authentic insights and valuable tips.
