Lara Falzon, the CEO of Yolo Group's B2B division, argues that changing its focus from speed and producing money to something else is "a whole new world."
change in the yolo group
After Yolo Group said it would stop running unregulated crypto casinos and only work in regulated markets, B2B CEO Lara Falzon discusses how the company is instead focusing on building a strong, high-value product.  

Falzon tells iGB, "As a group, we're intentionally moving away from that short-term cash mindset."  

She argues that the company's new approach is based on its "truly unique" technology platform.  

Falzon tells iGB, "It's very flexible, which lets us quickly enter new markets and give customers exactly what they want." "We think that this flexibility, along with our ecosystem of live studio, slots, and aggregation offerings, provides us a big edge.  

"In the regulated space, this means we can move faster than our competitors, meet local needs quickly, and give players a better, more compliant experience." 

In September, Yolo said it will combine its Sportsbet and Bitcasino brands into one brand called Yolo.com. It would use this brand to go after Tier-1 regulated markets. 

Yolo has already gotten two gaming-related vendor licenses for its Live Online Gaming Services and Hub88 Holdings subsidiaries in the UAE. These licenses will let Yolo provide iGaming content to the UAE's regulated market.

Yolo had a very successful time as an unregulated operator, but moving away from grey markets made some wonder how the company would handle such a big change. 

Change from a quick-money mindset 
The company said in its release that it had a duty to deliver the crypto gaming experience to regulated markets in the US. 

This has required Yolo to adapt its culture, and Falzon calls the change in strategy to one of strict regulatory compliance "by far the biggest hurdle." 

Falzon says, "I think the biggest change is in the way people think." "I'm not saying we're finished yet.  

In the past, our business has always been about speed, speed, speed—let's get the money and move on. But when you have to deal with regulators, it's a whole different ball game. 

"We've had to put in place a lot of paperwork, systems, and procedures. It takes time and self-control, and it alters how people think. Some people don't want to do it at first since it doesn't seem like it will make money right away. But that's part of the regulated environment, and accepting that has been a big change for us. 

A long-term look into Yolo Group's finances
Falzon makes a good point about margins. iGaming and sports consultant Stefan Kovach told iGB that Yolo's change in strategy could "significantly impact" company profits, at least in the short term. 

Falzon notes that Yolo is fully aware of this and that it has been a big part of its approach.

She says, "I think it's about more than just margins; it's really about instant cash versus long-term value." Many business owners ask themselves the million-dollar question: should you focus on getting cash and dividends right away or on developing long-term, sustainable value?  

"We'd rather put our money into making a strong, high-value proposition that will help Yolo grow, stay stable, and become a leader in regulated markets over the long term." 

Will regulators pay more attention to Yolo Group? 
Yolo said in its plans that "domestic regulators are not keen" on operators continuing to do business in other pre-regulated areas. 

Elizabeth Dunn, a partner at the UK law firm Bird & Bird, said that Yolo's past as a grey-market crypto operator could make Tier-1 regulators nervous. 

“Regulators in most Tier-1 markets still have a hard time with the idea of operators directly accepting cryptocurrencies and/or being funded through cryptocurrencies,” Dunn told iGB before. 

When authorities look at whether Yolo is fit to have a licence, they will probably look at its background as a crypto-first operator. 

But Falzon says that the change in tactics hasn't been a "easy ride," Yolo's work with authorities has made the change go more smoothly. 

Falzon says, "I think that being proactive, open, and working together is the most important thing." "We're not afraid of where we came from in crypto; it's what makes us who we are." But we also want to work directly with regulators, teaching them about our platform and learning about their worries at the same time.  

"We can find a middle ground that protects players, is open and honest, and follows the rules by working together as a team. This will let our technology and ecosystem give players the best experience possible." 

Andrew Rhodes, the head of the UK Gambling Commission, said this week that the government can't ignore crypto gambling.

He didn't indicate that the UK may soon grant licenses for crypto-based betting, but he did warn that the government had to do something to control the activity.