iGaming Weekly Wrap-Up #10
#Breaking News
1.??????UKGC names Allwyn as new National Lottery steward
The UK Gambling Commission (UKGC) has this morning named Allwyn Entertainment as its ‘preferred applicant’ to operate the fourth National Lottery licence beginning 2024.
Launched in August 2020, the Commission’s 18-month tender declares a transformative outcome that will see Allwyn replace Camelot UK as the steward of the National Lottery – a position it has held since 1994.?
Led by Sir Keith Mills, Allwyn’s bid was reported to have promoted a new vision of the National Lottery that will “innovate its products and channels” and will lead to “increased contributions to good causes, subject to the protection of participants and propriety”.
The UKGC underlined that it has selected the best partner, completing an “open and robust competition which received four applications at the final stage” – the highest number of applications since the first National Lottery licence was first awarded in 1994.
Competing to win the multi-billion tender, Allwyn’s bid beat the suitors of Italian lottery operator Sisal SPA, The New Lottery Company operated by media group Northern-&-Shell and Camelot UK as its existing operator.
?2.??????Lindwall and Lundberg re-elected to Betsson board with three new members proposed in executive reshuffle
Johan Lundberg will be re-elected as the chairman of Betsson AB in addition to the appointment of three new board members, as part of a new reshuffle to be agreed at the operator’s 2022 AGM.
Fredrik Carlsson was the only existing board member to decline re-election, as Eva Leach, Johan Lundberg, Peter Hamberg and CEO Pontus Lindwall all agreed to remain in their positions.
The firm’s nomination committee agreed that it would benefit the business to have active shareholders take responsibility for its direction, which was the reasoning stated behind the re-election of Hamberg and Lindwall.
Lindwall will be the only board member who forms part of the company’s senior management team, as according to the Swedish Code of Corporate Governance, a maximum of one board member elected at the Annual General Meeting may be engaged in the company’s management or in the management of its subsidiaries
In addition to the re-elections, three new independent board members were proposed by the nomination committee.
3.??????Swedish 2021 gambling revenues hit SEK 26bn
The Swedish betting and gaming market’s growth continued in 2021 despite temporary gambling restrictions imposed by the government, according to the latest figures from Spelinspektionen.
Publishing trading results for the Swedish market for the full year and final quarter, the Swedish Gambling Inspectorate revealed that total revenue across all verticals stood at SEK 26 billion (￡2.04bn) at the close of the year.
This represented a 5% year-on-year increase on 2020 figures of SEK 24.68bn (￡1.94bn), whilst Q4 revenue grew by 2% on the corresponding time period in 2020 to SEK 7.01bn (2020: SEK 6.70bn).
Although sports betting remained the most dominant vertical in the country in the final quarter at SEK 3.92 billion, income from this sector actually declined from the 2020 Q4 figure of SEK 4.19bn.
Comparatively, state owned lottery and slot games experienced an uptick of 7.2% to SEK 5.83 billion at the close of the year from SEK 5.43.7 million – in particular, bolstered by reopening of the sector.
?4.??????Paysafe enlists JP Morgan as core banking partner to support further synergies
Payments platform Paysafe has named multinational investment bank JP Morgan as its core banking provider, kickstarting a collaboration with the latter’s Payments business segment.
As core banking partner, JP Morgan aims to provide a ‘robust and scalable payment gateway’ to Paysafe, which offers services and solutions to businesses in a range of industries, including the betting and gaming sector.
To achieve this objective and support growth and expansion, JP Morgan will provide schemel payment settlements, handle merchant payment flows, foreign exchange and multi-currency settlements, whilst also offering enhanced data insights and analysis.
“We’re delighted to have embarked on our journey with world-class firm JP Morgan,” commented Paulette Rowe, CEO of Integrated and Ecommerce Solutions at Paysafe.
“Appointing a lead core banking provider creates many synergies and efficiencies for the business, and JP Morgan is supporting us with robust and flexible banking infrastructure in order to strengthen our business within our key verticals and territories.”
?5.??????Trinidad and Tobago creates Gambling Control Commission
The Trinidad and Tobago Gambling Control Commission will monitor gambling activities in the Caribbean nation.
Trinidad and Tobago.- Finance minister Colm Imbert has announced the launch a new regulator, the Gambling Control Commission (GCC), to govern and monitor gambling activities in Trinidad and Tobago.
Stephan Tang Nian, a senior government banking and anti-money laundering (AML) advisor, will chair the regulator’s board of directors.
The GCC is expected to carry out major gambling reforms in the dual-island nation, and particularly to address social concerns over a “proliferation of private member clubs providing casino-style games.”
Its creation was mandated by the approval of the country’s Gambling Control Bill last year. The bill requires the commission create a framework to improve the protection of minors and launch a fund for problem gambling rehabilitation.
It reads: “It is expected that the commission will establish a licensing framework which will aid in minimising the potential for money laundering and terrorist financing due to the stringent criteria that will have to be met in order to obtain a licence to work in the gaming and betting sectors.
#US / Canada
6.??????Tennessee sportsbooks post lowest handle since September following end of NFL
Tennessee sportsbooks recorded an expected decline in betting handle in February, following the end of the NFL season and with natural seasonality coming into play.
According to PlayTenn, which is part of PlayUSA.com Network and monitors the Tennessee gambling market, February is a month where sports betting volumes naturally decline, before picking up again in March.
Alec Cunningham, Lead Analyst, PlayTenn, commented: “The Super Bowl is an important singular event, but it can’t fully replace a month filled with football games like January. For that reason, February is always a slower month. But the lull doesn’t last long. March Madness should help the state’s sportsbooks challenge wagering records again, especially if Tennessee can make a deep run.”
Throughout February, Tennessee’s sportsbooks attracted wagers amounting to $313m. Although this was down $73m, or 19%, from the leading tally generated in January, this represented growth of $137m, or 78%, year-on-year.
Bets placed on this year’s Super Bowl, won by the Los Angeles Rams, totalled $23m, up from $15m the year before.
?7.??????Iowa sports wagers climb 50.4% YoY to $215.9m in February
Iowa’s sports betting handle increased 50.4% year-on-year to $215.9m (￡165.3,/€197.0m) in February, while the state also experienced an 11.7% rise in revenue.
The amount bet by players was comfortably higher than the $143.6m spent in February of 2021, but this total was 28.8% lower than the $303.3m wagered in January of this year.
Once again, the majority of bets were placed over the internet, with mobile wagers for the month amounting to $195.0m, up 55.8% year-on-year.
In contrast, retail bets totalled $20.9m, though this was 13.6% more than in February last year.
Revenue for the month across all channels amounted to $8.6m, up from $7.7m in the same month in 2021.
Online revenue was 33.3% higher than 2021 at $8.0m, while retail revenue continued to lag behind on $589,920, which was down 68.8% year-on-year from $529,920 last year.
?8.??????Indiana sports betting handle reaches $409m in February
Players in Indiana bet a total of $409.1m (￡313.3m/€373.4m) on sports during February, while taxable adjusted gross revenue from sports wagering in the month hit $17.0m.
The amount spent by players was 49.4% higher than $273.9m in February 2021, but 17.9% less than the record $498.4m wagered in January of this year, according to figures released by the Indiana Gaming Commission.
Basketball betting accounted for $201.9m of all bets placed during February, with football attracting $30.1m in wagers and baseball just $97,273. A further $101.4m was spent on parlay betting and the remaining $74.3m on other sports.
Turning to revenue, this amounted to $17.0m for the month, level with February last year, but this toal was down 52.3% from $35.6m in January 2022.
Breaking down performance by licensed operator, DraftKings-partnered Ameristar Casino led the way with $6.5m in revenue off handle of $127.4m.
?9.??????Louisiana sees $211m in online sports bets in February
The Louisiana Gaming Control Board has reported that Louisiana’s six online sportsbooks took in $211m in wagers in February, the first full month since the state launched its legal online sports betting market. The state’s total sports betting handle was $238m.
领英推荐
Revenue from retail sports betting in February was $27.3m. Taxes paid to Louisiana in February totalled $2.35m. Football was the highest-grossing sport for online operators, raking in more than $9.8m. Basketball came in second with $5.07m, with parlays at $4.4m.
?10.??Westgate SuperBook leads calls for insider information inquest into Tom Brady’s comeback
Westgate SuperBook is one of several US sportsbooks calling for an investigation into Tom Brady’s high-profile return to the NFL, with a number of suspicious bets highlighted surrounding the announcement.
Brady, who has enjoyed a prolific career in the NFL, played for both New England Patriots and Tampa Bay Buccaneers across 22 successful seasons.
However, just 40 days after initially announcing his retirement from the sport, Brady signalled he would return to the Buccaneers.
As has been reported by a number of Las Vegas sportsbooks, including Westgate SuperBook and South Point Casino, a number of sizeable bets were placed on the Buccaneers being successful in both the NFC Conference and the Super Bowl next year, in the days leading up to Brady’s announcement.
Jay Kornegay, Vice President, Westgate SuperBook, commented: “There’s not a doubt in my mind they knew he was coming back when they placed those wagers on Thursday. And these were not casual bettors. They would be categorised as educated bettors. It was a player we would describe as a sharp.?
?11.??Play’n Go secures Ontario supplier licence
The Alcohol and Gaming Commission of Ontario (AGCO) has granted Play’n Go a supplier licence to do business in the province.
The licence will allow Play’n Go to partner with operators in the newly regulated Province of Ontario gaming market which is set to open April 4.
Magnus Olsson, chief commercial officer for Play’n Go, said, “Regulated markets are vital not just to Play’n Go’s business strategy, but to the industry as a whole; they ensure a safe gaming environment for players, and operators can focus on providing a fun and entertaining experience that is truly sustainable.
“Ontario is an important province representing some 40% of the population of Canada, and we look forward to players there enjoying our games.
“However, Ontario represents just the first stage in Play’n Go’s North American entry strategy that will see our titles shortly be made available in selected regulated US state-level igaming jurisdictions for the very first time.
?12.??Bet365 Gets Nod from Ontario Regulator for Online Sportsbook and Casino
Bet365 has received a key approval from an Ontario regulator that puts the global bookmaker in line to start legally taking bets in the province early next month.
The list of registered internet gaming operators maintained by the Alcohol and Gaming Commission of Ontario (AGCO) shows "Hillside (International Sports) ENC" and "Hillside (International Gaming) ENC" were issued a registration certificate by the regulator on Tuesday.
According to recently released financial statements, both companies are 100% controlled by Stoke-on-Trent, England-based bet365 Group Ltd. The registration also appears to cover more than 20 bet365-branded mobile apps and sites for online sports betting, internet casino gambling, and poker, among other things.
Bet365's registration comes as Ontario is preparing to launch a competitive market for iGaming on April 4. Registering with the AGCO is an important step for companies that want to participate.
?13.??Ontario imposes operator standstill ahead of igaming launch
New guidance from the Alcohol and Gaming Commission of Ontario (AGCO) warns operators in the process of securing a licence to cease activities when the province’s igaming market opens on 4 April.
Companies will be required to shut down any activities Canada’s largest province, or face having their application for registration rejected by the regulator.
Ahead of Ontario’s launch on 4 April, operators such as PointsBet, theScore, Rivalry, Rush Street Interactive and 888 have all been issued licences by AGCO.
In addition, LeoVegas announced today that it had been registered as an operator, which means it is only one step away from receiving a full licence.
Now, the regulator has published a guide “to assist internet gaming operators in applying for registration”. Within this guide, it sets out plans to take “strong action to address any remaining unregulated Ontario market activity in partnership with law enforcement”.
All businesses that apply for registration before the 4 April launch must cease operations in Ontario from the moment their registration is approved by AGCO.
?14.??Americans expected to bet $1.3bn on March Madness 2022
More than 17% of all American adults plan to bet on March Madness 2022, with a total of $3.1bn (￡2.4bn/€2.8bn) expected to be wagered on games, according to the American Gaming Association (AGA).
A survey of 2,210 adults across a range of ages, races, ethnicities, education and locations found that 45 million adults are planning to wager on the NCAA college basketball tournament, which officially began yesterday (March 13) with Selection Sunday and will run through to April 4.
Of those that plan to bet, 20.9 million said they expect to wager on the tournament outside of bracket contests, meaning they will place bets either at an online or retail sportsbook, a bookie or with friends.
The AGA also found that 36.5 million people plan to bet via a bracket contest or similar pool.
In addition, 17% of consumers named Gonzaga as their pick to win the tournament, ahead of Duke on 12% and Kentucky with 11%.
Since last year’s tournament, 29 million more American adults are now able to legally wager in their home state, with Arizona, Connecticut, Louisiana, Maryland, North Dakota, South Dakota, Washington, Wisconsin and Wyoming having launched legal sports betting markets in the past 12 months
?#M&A & Finance
#Legal:
15.??Kindred lauds open customer feedback to help secure sustainability goals
Kindred Group Plc has published its Sustainability Report for 2021, updating investors and corporate stakeholders on the progress of its long-term CSR objectives and underlining a sustainable operating strategy.
Entering 2021, Kindred’s executive leadership team announced that the Stockholm-listed operator would become the first online gambling plc to report on safer gambling and sustainability metrics as a financial duty.
The pledge was deemed a necessary measure as Kindred maintains its headline CSR objective to achieve “0% revenues from harmful gaming by 2023”.
The group’s CSR charter is formed by the five strategic principles of?– ‘Responsible gambling’, ‘Maintaining integrity’, ‘Running a compliant business’, ‘Being Kindred’ and ‘Contributing to local communities’.
An overview of Kindred’s FY2021 financial performance saw the group generate gross winnings of ￡1.26 billion, with an underlying EBITDA result of ￡332 million (26% EBITDA margin).
?16.??Sweden struggles to evaluate impact of Covid-19 online casino restrictions with problem gambling rate unchanged
The Swedish Gambling Authority (Spelinspektionen) has failed to reach a clear conclusion on the impact of deposit and bonus limits for online casino that were implemented due to government concerns over harmful gambling behaviour during Covid-19.
The regulator was tasked with evaluating the restrictions in its interim report for a government assignment on the topic. Despite publishing a 41-page document on the subject, it was not able to reach any meaningful conclusions due to a combination of factors.
“The Swedish Gaming Inspectorate assesses that the re-regulation of the gaming market that came into force in 2019, the pandemic and the temporary regulations all interact for public health and for consumer protection.
“However, it is difficult to assess which parts of the development are due to the temporary regulation, the pandemic or the new gambling regulation. It is not possible to determine what the development of gambling and problem gambling would have looked like if the temporary regulation had not been introduced.”
The restrictions included a weekly SEK5,000 deposit limit for online casino gameplay with licensed operators, as well as a requirement for players to specify their log-in times and a SEK100 cap on bonuses.
?17.??Dutch self-exclusion register surpasses 10,000 signatures as 711 BV becomes latest licensee
More than 10,000 Dutch consumers have blocked themselves from gambling by joining the Cruks self-exclusion scheme since its launch last October.
Cruks prevents registered customers from participating in gambling online, at slot machine arcades and at Holland Casino locations for a minimum period of six months.
Although the register has surpassed the 10,000 mark in relatively short time since its launch just six months ago, the number of self-excluded players represents a tiny 0.06% of the country’s 17.4m strong population.
Compare this to the more mature UK market, for example, where 250,000 customers have registered to use self-exclusion tool GAMSTOP, representing around 0.37% of the 67.2m population.
Players can register for Cruks in two ways. Most will choose to register themselves for their own protection, although customers can also be added to the register involuntarily.