iGaming Wrap-Up of CW 22-23
#iGaming News of the week
0.??????MGA discusses collaboration with Britain’s Gambling Commission
The Malta Gaming Authority has reported on a meeting with the British Gambling Commission to discuss collaborative efforts. The two regulators discussed collaboration in the areas of responsible gambling, sports betting integrity and anti-money laundering.
The MGA’s CEO Carl Brincat and chief of policy and international affairs Kinga Warda met with Gambling Commission chief executive Andrew Rhodes and executive director for operations Kay Roberts, who visited Malta for two days. The MGA says they discussed knowledge-sharing initiatives between their respective responsible gambling teams in a “productive” meeting.
They also discussed the possibility of formalising the regulators’ relationship through a Memorandum of Understanding. The MGA said that by working together, the regulators seek to reinforce their “commitment to ensuring the highest standards of player protection and fair play” within their respective jurisdictions. The regulators also emphasised the importance of information sharing in relation to sports betting integrity, AML/CFT and compliance.
The MGA shared the experience it has gained through the sandbox environment it launched for the use of Distributed Ledger Technology (DLTs) and the acceptance of cryptocurrencies by gaming operators. The sandbox resulted in a dedicated policy that was published earlier in the year. Meanwhile, the Gambling Commission provided an update on its progress on the consultations that came out of the UK government’s Gambling Act White Paper.
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#Breaking News
1.??????KSA releases legislative letter and fines Bingoal €400,000
The Dutch Gaming Authority, Kansspelautoriteit (KSA), has released a legislative letter about amending a law that allows the use of false proof of identity to catch out operators. The KSA has also issued a fine of €400,000 ($428,000) to Bingoal for not following its regulations.
Gambling operator, Bingoal, was fined €400,000 because it had sent advertisements aimed at young adults (18-24 years old). This goes against the regulations imposed by the KSA, due to younger people being more susceptible to a gambling addiction.
The investigation began following a broadcast of the TV programme ‘Kassa’ which showed that between October 2021 and March 2022, the company had promoted advertising messages to users aged 18 to 24.
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2.??????Betclic fights back against French tax investigation
Betclic has denied any wrongdoing in relation to an investigation launched by the French Tax Inspectorate (DNEF) into its Malta subsidiary.
French news sources reported this week that the DNEF had ‘seized documents from Betclic premises’ in October. These documents are related to the business activities of its Maltese subsidiary, Betclic Enterprises Limited.
The Inspectorate initiated an investigation into Betclic Enterprises on suspicions of ‘conducting business in France without submitting the necessary tax declarations.’
The DNEF justified its seizure of documents as evidence suggesting that Betclic Enterprises Limited might be conducting part of its commercial activity ‘on French territory without correctly accounting for the revenues or submitting corresponding tax declarations.’
Betclic reportedly challenged the DNEF’s seizure unsuccessfully.
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3.??????Kindred Group loses latest appeal case in Norway
Kindred, which recently announced the departures of four of its leading executives, is facing more bad news. Its long-running fight to provide online gaming entertainment to Norwegians is coming to a close, but with no happy ending for the company.
Kindred, through its Trannel subsidiary, has been in a drawn-out battle with the Norwegian Gaming Authority (NGA) over its right to offer its services in the country. For five years, it has asserted that as a Malta-based company, Trannel is allowed to operate across Europe, and that Norway’s state-run gaming monopoly system is wrong.
Neither the NGA nor Norwegian court judges have agreed, with Kindred potentially facing millions of dollars in fines for not complying. Kindred previously agreed it would no longer actively pursue customers in Norway, but added that it can’t do anything if Norwegians still find one of its platforms.
The latest decision gives Norway a perfect track record against Kindred, which has recently become the focus of sale rumors. There is no more room for debate, and the owner of Unibet and other gaming platforms has no additional fight left.
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4.??????Finnish influencer receives suspended prison sentence for illegal marketing
Finnish influencer and streamer Lauri Kangas, also known as Lateksituppi, has been sentenced to a 50-day suspended prison term after admitting to promoting gambling websites outside the Veikkaus monopoly.
The It?-Uusimaa district court determined that Kangas had earned €51,300 from these activities and ordered him to repay the same amount as a penalty to the Finnish state.
The court established that between 1 May 2020 and 18 May 2021, Kangas advertised several gambling companies and provided links to their websites under the alias “Lateksituppi” on various social media platforms. Additionally, he showcased different instant casino games on platforms such as Twitch, Snapchat and YouTube.
The court ruled that these games were not operated by monopoly holder Veikkaus Oy, making Kangas’ marketing a violation of the Finnish Lottery Act.
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5.??????GiG co-founder Ben Clemes joins Robin Reed at HappyHour.io
HappyHour.io, a leading investment firm in the iGaming industry, is delighted to announce the appointment of Ben Clemes as Investment Portfolio Partner. In this role, Clemes will accelerate the growth of current investments while spearheading the expansion of the portfolio with promising start-ups poised to shape the future of the industry.
Clemes joins HappyHour.io from Gaming Innovation Group (GiG), a company he co-founded alongside Robin Reed, Managing Partner of HappyHour.io. During his tenure at GiG, Clemes held various influential positions including Chief Commercial Officer, Chief Business Officer and General Manager of GiG North America. Notably, he played a pivotal role in establishing Guts.com, one of GiG’s flagship operator brands, as well as the platform business GIG Core and its expansion into the North American market.
Clemes will return to the United States, with a base in San Francisco, and will work with North American-based start-ups, investors and partners in his new role.
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6.??????888 stock soars as ex-GVC heavyweights acquire 6.6% shareholding
Shares in London-listed 888 Holdings jumped more than 20% in early trading after the business revealed a new major shareholder.
FS Gaming Investments, a consortium which includes former GVC Holdings CEO Kenny Alexander, former director Stephen Morana and former chairman Lee Feldman, has secured a 4.55% shareholding in the business. In addition, former GVC COO/Entain CEO and current DAZN Group CEO Shay Segev, transferred the voting rights of a 2.02% shareholding to the group, giving it total voting rights of 6.57%.
A note from investment bank Peel Hunt suggested that the “well-informed group of investors could contribute to finding a new CEO, accelerating the existing strategy and finding new directions for growth” at 888.
Meanwhile, sources told the Financial Times the group was “likely to push for a speedier integration between 888 and William Hill to drive down costs, and could request a board seat for Alexander or Feldman”.
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7.??????North Carolina sports betting bill voted through by House
North Carolina has moved a step forward in its journey to sports betting legalization after the state’s House voted in favor of a bill that would regulate this form of gambling.
The bill will now be passed to North Carolina Governor Roy Cooper, who is expected to sign it into law. This comes after two unsuccessful attempts at sports betting legalization were passed before the end of the legislative session in June last year, and did not see any further progress.
House Bill 347 was passed 69-44 after its latest reading in the North Carolina House. The bill was voted through the state Senate last week.
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#US / Canada
8.??????US financial regulator sues Binance for “calculated evasion” of the law
Federal regulators have sued Binance, the world’s largest crypto exchange, accusing the company of running an illegal exchange in the United States and commingling billions of dollars’ worth of customer funds.
The Securities and Exchange Commission, Wall Street’s primary regulator, alleges the company acted in “blatant disregard” of US securities laws. It also named Binance’s CEO Changpeng Zhao, known as CZ, as a defendant.
“Through 13 charges, we allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law,” said SEC Chair Gary Gensler in a statement Monday.
The SEC also alleges that Zhao and Binance commingled customer assets and even diverted some to an entity controlled by Zhao.
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9.??????Barstool’s 'Can’t Lose' parlays questioned by Massachusetts gaming regulators
The Massachusetts Gaming Commission held an adjudicatory hearing over the 'misleading' title of a betting product.
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Barstool Sports’ “Big Cat’s Can’t Lose Parlay” was a feature of the sportsbook since 2019, named after sports personality Dan “Big Cat” Katz. Massachusetts gaming regulators have now held an adjudicatory hearing with Barstool owner, Penn Sports Interactive (PSI), over whether the betting product name is misleading advertising.
Meant as an ironic homage to Katz’s unlucky gambling history, the “can’t lose” parlay title has not been used in Massachusetts since March 10, as regulators questioned whether bettors understood either the terms or the reference.
He continued, “No reasonable member of the public would think that Cap’n Crunch Berries are actually made of berries. Viewed in context, no reasonable person would take ‘Can’t Lose Parlay’ as a factual assertion that this is a risk-free or reduced-risk wager.
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10.??NY senator George Borello introduces bill to authorize State Comptroller to review tribal-state compacts
As negotiations on a new gaming compact continue between New York State and the Seneca Nation, Senator George Borrello has introduced legislation that would authorize the New York State Comptroller to review any tribal-state compact and recommend approval or needed changes, a move he said would 'enhance the integrity of the process.'
Senator Borrello cited the need for this change by pointing to current negotiations between the Seneca Nation and Governor's Kathy Hochul administration. He noted that although Hochul has recused herself from compact negotiations because of the conflict of interest presented by her husband’s position with a company in competition with the Seneca Nation, she is still the only official that can approve the contract.
"The partnership between the Seneca Nation and New York’s Executive Branch has been strained for several years, largely over disagreements concerning revenue from Seneca casinos," said Senator Borrello.
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11.??Bet365 keeps up US expansion with Iowa debut
Bet365 has officially launched into Iowa – its fifth US state – after debuting its online betting app through a partnership with Casino Queen Marquette.
For a while, it seemed like the UK-founded operator might not ever expand its presence in the US beyond New Jersey, but is starting to ramp up its presence since opening in Colorado in September 2022.
A bet365 spokesperson commented: “We are incredibly excited to welcome the Hawkeye State to bet365. From Sioux City to Marquette and everywhere in between, Iowans will now have access to our market leading sportsbook product.”
Casino Queen Marquette previously partnered with Fubo for a sports betting licence. The last month of operation with the now-shuddered sportsbook was October of last year. Since then, the casino has been running a retail sportsbook but no online offering.
“We’re thrilled to work with bet365 to provide players with an in-demand and trusted source for safe online wagering,” added Sean Bateman, General Manager of Casino Queen Marquette. “It’s an exciting time for our guests and passionate sports fans in Iowa, who will benefit from fantastic site features and attractive offers.”
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12.??Colorado players bet $12.10bn on sports in first three years
Consumers in Colorado wagered $12.10bn on sports during the first full three years of legal betting in the US state. Colorado launched its regulated market in May 2020, with the total amount spent covering player bets through to the end of April this year.
Of this figure, $11.95bn was wagered online and $146.9m at retail sportsbooks. Gross gaming revenue for the three-year period amounted to $817.0m. Some $808.9m of this came from online betting, while $8.1m was attributed to land-based wagering.
For April, the final month of the period, players spent $417.8m betting on sports. This was 6.5% more than in the same month last year but 15.5% below $494.4m in March 2023. Players spent $414.4m betting online and a further $3.4m at retail sportsbooks across the state.
#M &A & Finance
13.??XLMedia completes finance portfolio sell-off
Affiliate group XLMedia has completed the sale of its entire personal finance assets portfolio in line with its strategy to exit non-core activities.
The sales of the MoneyUnder30 domain and website for $675,000 (￡542,338/€629,440) marked the end of the process, which was first announced in December last year. At the time, the group said it had held talks with various parties regarding the potential sale of the personal finance division as part of a restructuring process.
XLMedia said it would switch focus to its sports and gaming business, as well as to expand its North American sports footprint, and refine and develop its European sports portfolio and gaming assets in certain markets.
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14.??Washington: Maverick Gaming sells Lakewood casino Palace and Chips for $27 million
Maverick Gaming has sold its 21,624 square foot Palace and Chips casino in Lakewood, Washington, to Chicago-based firm Oak Street Real Estate Capital for $27 million, according to Pierce County public records consulted by local media. The transaction involved the same buyer and seller of a casino property that sold in the city last year.
The single-parcel property, located at 8108 and 8200 Tacoma Mall Blvd., comprises two buildings spanning 7,817 square feet and 13,807 square feet, according to records consulted by The Registry.
The property boasts gaming tables, a poker room, and a bar and restaurant, as stated on its website. Situated on the eastern end of the city near the Interstate 5 ramp at South 84th Street, the casino is in close proximity to a 7-11 convenience store.
Maverick Gaming had previously purchased the Palace and Chips property in 2016 for $4.5 million, at a rate of approximately $208 per square foot, as per Pierce County property records.
#Legal & Regulation:
15.??DSWV says increase in self-exclusions is positive development
The German Sports Betting Association (DSWV) has responded to what it believes is an incorrect assessment of OASIS self-exclusion figures in the country’s media.
Latest figures from the self-exclusion system show that the number of registered bettors rose from 47,000 in 2020 to 192,600 at the beginning of May 2023, suggesting a four fold increase in self-banned players. These figures have been presented by some, notably Federal Addiction and Drug Commissioner, Burkhard Blienert, as being indicative of a sharp increase in problem gambling rates in Germany.
Blienert was quoted by media outlet Redaktionsnetzwerk Deutschland (RND) as saying: “The high number of player bans speaks volumes. It shows that gambling addiction really gets down to the substance, for the gambling addict and those around them. “Since the vast majority let themselves be blocked, the suffering of many people must be considerable and also the insight that they have to do something themselves.”
In response, the DSWV has argued that the increase in OASIS registrations is not because of a corresponding increase in problem gambling rates but due to the changed dynamics of the German market. In the DSWV’s view, the number of player suspensions can be attributed to the increase in the overall customer base, as well as the number of operators which have connected to the network, enabling their players to register with it. This is indicative of positive player protection developments, the association argued.
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16.??KSA demands greater technical powers to improve market surveillance?
Kansspelautoriteit (KSA), the Netherlands Gambling Authority, has issued an ‘urgent appeal’ to Dutch Minister for Legal Protections, Franc Weerwind, to amend the Remote Gambling Act (KOA) supervisory technicalities.
Weerwind, who is currently charged with the evaluation of the Remote Gambling Act (KOA) in 2024, has been asked to modify the Law to allow KSA “to have access to false identity documents for enforcement and supervision purposes”.
At present, fake IDs are required to be processed by the National Identity Agency, whilst the Authority must be granted a legal contingent to use them.
The proposed amendment would grant the KSA access to necessary identity data, allowing unimpeded access to the websites of gambling providers – thereby ensuring more effective and efficient supervision of legal providers and enforcement against illegal entities.
#Tech :
17.??PandaScore and Betinvest set out to ‘revolutionise’ esports betting
The leading international iGaming service provider, Betinvest, announced it forged a new alliance with the famous esports data provider, PandaScore. Details about the new collaboration, described as a transformative strategic partnership, emerged Monday. Ultimately, the new deal seeks to revolutionize esports betting by delivering unique and high-quality esports content for sportsbook operators.
PandaScore will achieve this by tapping into new content. The company confirmed it agreed with Betinvest to acquire rights for CyberLive!Arena esports, delivering engaging options for eBasketball, as well as eFootball tournaments. Moreover, PandaScore secured access to content from Esports Pro Club, delivering thrilling eBasketball and eFootball options.
Overall, the company can access more than 13,340 esports events on a monthly basis. Thanks to the new partnership, the new content will seamlessly blend with PandaScore’s current offering. This, in turn, will deliver more entertaining and engaging options for the company’s sports betting partners.
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18.??Sportradar: Mixed fortunes as Haaland and... Arsenal generate most Premier League bets
Sportradar has released an analysis of betting activity for the 2022-23 Premier League season.
The data has revealed that Arsenal was the most heavily backed team to win the league, receiving more than 41% of bets to become champions. Arsenal would go on to finish second to Manchester City.
Arsenal became the most backed team during the Premier League's month-long hiatus for the 2022 World Cup, a period when Arsenal sat top of the table.
Meanwhile, Manchester City striker Erling Haaland won the top goalscorer award. And, by the end of August, Haaland had received 52% of the bets placed in the top scorer category. This number rose to 92% by the end of December.
Further data shows bettors stayed away from backing Newcastle United, despite the team’s fourth-place finish. Unsurprisingly, Manchester City was the most-backed to win an individual match throughout the season, earning this accolade more times than any other team.