SCCG Weekly Newsletter #119

Day 1

????????Night turns to day in Portomaso, Malta! Looking forward to catching up with fellow?Dartmouth College?Alum?John Christmas?who has made Malta his home for over a decade. Gearing up for a busy week at?SiGMA - World's Gaming Festival?Europe! Cutting edge issues in the?#igamingindustryincluding?#web3?#crypto?#blockchain?& more will be covered. And exhibitors from around the globe in?#igaming?#esports?#sportsbetting?& more will be on hand.?SCCG Management?will be supporting many of its client partners who will be in attendance. Stay tuned …????????

Day 2

????????It was an absolutely perfect Sunday in Malta’s “Old Town” Capital Valletta! Cobblestone streets, distinctive colorful windows and doors, cafe lined alleyways, public squares and historical military sites and views! It doesn’t get any better than this!! Kicking off?SiGMA - World's Gaming Festival?Europe with a breakfast with?FilsGame’s?Stefano Fregoni?followed by meetings and collaborations on the?#igamingindustry! Lunch today with?Roger Redfearn-Tyrzyk?of?IDnow?(reception later this evening) at the Fisherman’s Market in Marsaxlokk! Announcing later this week two new client partnerships with?SCCG Management?involving proprietary billiards sportsbetting content, games & platforms. ????????

Day 3 (Conference Begins)

??????????From Malta &?SiGMA - World's Gaming Festival?Europe to Scottsdale, Arizona & the?National Indian Gaming Commission?Mid-Year Conference & Expo -?SCCG Management?has it covered! In Malta, it was breakfast with?Stefano Fregoni?of?FilsGame?& pre-registration activities, a Sicilian lunch in Marsaxlokk Fisherman’s Market with?Roger Redfearn-Tyrzykof?IDnow?followed by a visit to the?MediaTroopers?HQ to meet with Founders?Sam (Shmulik) Segal?&?Benjamin Truman?and then to the IDNow rooftop party overlooking the Mediterranean Sea with:?Mario Galea?Mark Grech?Ross Main?Elliott Banks?Mario Fassbender?Max Irwin?Rob Dowling?David Webband more! The National Indian Gaming Association Mid-Year was hosted this year by?We-Ko-Pa Casino Resort?- the home of the WeKoPa -?Betfred Sportsbook!?Nick Giangreco?of SCCG is in attendance. SiGMA Exhibition begins today. You can find me at Filsgame BR17!??????

Day 4

????????After 30+ years attending shows in the gambling industry worldwide, nothing matches the energy & vibe & people & content of the?SiGMA - World's Gaming Festival?Europe!!Too much to recap here so I will leave you with just a few images from an absolutely incredible couple of days! Congrats to client partner?MediaTroopers?,?Sam (Shmulik) Segal?,?Benjamin Truman?& Team on their SiGMA Award!! Congrats to?Eman PULIS?and his dedicated team for a truly spectacular event!????????

Follow Stephen Crystal on LinkenIn for More Updates

Dana White has always been credited for the mass adoption of mixed martial arts as a household sport, and deservedly so. It was announced just a few weeks back that White has launched a new business venture that will turn heads, both figuratively and literally.?

The Power Slap League, or PSL, is the first regulated slap fighting league in existence. Slap fighting is about what you would expect; two warriors stand across an arm-wrestling-like table, and take turns open-hand slapping each other. This past weekend at UFC 281, Dana White revealed various details surrounding the realm of slap fighting. There are three “rounds” and rounds will be scored with the same 10-point system that is used in MMA and boxing. The events will be aired on TBS, a major broadcast partner that should bring eyes to this sport by default. The league will have weight classes similar to MMA and men and women will have their own divisions. THe PSL will also have similar medical requirements, including fair weight discrepancies, mouthguards and earplugs, and enforced fouls. Fouls for striking include clubbing, stepping, illegal wind-up, and delay of game. There has been rigorous testing done, and White and his team appear to have thought through every scenario that may come up in a match where two people are simply slapping each other in the face.

White had this to say when questioned about regulation regarding the PSL: "We run right toward regulation, regulate the sport to make sure it’s safe for everybody — because a lot of people are going to get involved in this just like they did MMA. What you want is you want to make sure there’s clear cut set rules, people have to take the proper medicals before, during, and after the fight to keep the thing safe. It should be regulated and Nevada did the right thing.” While physical danger is never out of the realm of possibility in combat sports, White is about as good as it gets when it comes to protecting his athletes, and making sure they get the best medical care when the situation presents itself.

White said he first saw slap fighting on social media, and it had him immediately hooked. It is pretty surprising to see him take on a project of this magnitude this late in his career, but it certainly speaks to White’s motivation at a personal level. While slap fighting has never been a mainstream sport, it certainly has the potential to find its niche groups. Fans of combat sports will gravitate towards it simply because it is a Dana White-backed project, which should give the PSL a solid base of dedicated fans. If the Power Slap League can replicate any of the successes that the UFC had in its early years, than it has the potential to become something much larger than it is now.

Per the Power Slap League’s website, anyone and everyone can apply to become part of the action. All you need to do is send a detailed video with background materials!?

The FTX saga continues, SBF is still somewhere in the Bahamas, with his roommates in a $40 million penthouse. The crypto community has been on a bit of a downfall, too much to absorb and understand, especially for those that jumped on the wagon of investing in crypto in the past year.?

FTX and Alameda Research have their hands connected to further other crypto companies, with over 250 startups that they had been involved in. Currently, there are ongoing rounds for a potential takeover of the FTX platform, a Canadian exchange, Bitvo recently was interested, but seems that they backed off the potential acquisition, im sure the numbers don't look good.?

BlokFI, a crypto lending platform has filed for bankruptcy. Back in July FTX had agreed with BlokFI to assist them with credit funds. This is the domino effect that unfortunately FTX has caused. BLokFI has blocked users' funds, and the platform cannot be used anymore. Gemini and Genesis, trading platforms are mentioned as well and will be pausing loans, with an immediate effect.?

On the other side of the crypto market, Bitcoin has been holding around the $16,000 areas, where fear is all around, and people are moving funds to cold wallets, and not trusting exchanges, which currently we have seen the biggest ever amount of withdrawals, especially Bitcoin and Ethereum coins.?

From a commercial side, currently in Malta, there is one of the biggest events, Sigma, and AIBC, with over 20000 delegates flown to the 27km Island, with a good mix of companies across Online casinos, sports, affiliates, and emerging tech, focusing on crypto, blockchain, and AI.

I attended the IGA Mid-Year 2022 conference this week at the We-Ko-Pa Casino Resort in Arizona. After meeting with members of tribes and listening to seminars on tribal gaming topics, I came to the conclusion that a quick overview would help our readers stay current and understand the significant role that tribes play in the gaming industry.

When it comes to the political landscape of gaming, it’s important to understand the capabilities the tribes have in terms of regulation, exclusivity and classification. 31 states have American Indian Tribal Casinos and thanks to the Indian Gaming Regulatory Act of 1988, tribes are permitted to offer games that are already legal within the state.?

Gambling in defined on a state by state basis but the IGRA is the federal law that splits the types of gaming into 3 classifications. Class I pertains to traditional tribal games that are part of ceremonies and celebrations or social gaming for small prizes. The tribal governments have authority over the regulation of this gaming classification. Class II gaming refers to the game of chance known as bingo whether electronic or not. It also refers to games where players play against other players (games of skill). Tribes are responsible for regulating these games. However, they need a gaming ordinance approved by the National Indian Gaming Commission and the state where the games take place must already permit such gaming. Class III is generally casino styled formats of gaming, this includes slot machines, blackjack, Craps, Roulette and other games of chance. On top of everything needed for Class II games, tribes must negotiate with the state and be approved by the Secretary of the Interior or the Secretary needs approved regulatory procedures that are commonly referred to as a Tribal-State Compact. Class III gaming has a very complex regulatory scheme involving groups at the federal, state, commission, and tribal levels.

Tribal-State Gaming Compacts are used to further regulate games such as slot machines to protect players and insure a fair gaming experience. These gaming compacts vary by state and are constantly changing with the innovation of new technology. The NIGC website has a link to the Bureau of Indian Affairs (BIA) tribal compact database at the U.S. Department of the Interior. The searchable database has more than just compacts, however. It also provides numerous other related documents by year, state, and tribe.

Five African nations are competing in the 2022?FIFA World Cup and it is anticipated that an incredible 86% of the continents' population in Sub-Sahara alone will be tuning into the matches, a new?Geo poll study says. Sports-mad Africans from all other states in Africa are no exception too. Africa is home to world-class athletic champions, Safari Rally enthusiasts, and rising international rugby, football, tennis and other key games players.

Football is the most popular spectator sport in the continent which is why it’s an up rapid bets seasons for all sports-books in Africa just as it is for the rest of the world and mostly the US. That being said it’s key for most African sports-books to have aligned their offerings for the tournament to best suit the needs of most bettors mostly by plugging in the best CRM solutions to help them acquire more new bettors, awakening dormant ones and retaining existing ones, which is why all of us at SCCG management would like to re-emphasize reaching out to our partner client “https://symplify.com/“?if you haven’t already to make sure you don’t miss out on the juice.

Additionally they’re key highlights to see out on this magnificent 2022 World cup as it’s unique in so many ways;

• Senegal one of African football giants in the football arena is among the second group of teams to play on the 21st November after the opening by Qatar on the 20th which most likely will keep all Africans excitement for the tournament at the best high as a win is likely inevitable.
• It will be the last World Cup to feature 32 teams before it’s expanded to 48 teams in 2026.
• First time the tournament has been held in the Middle East - Qatar making it easier for many Africans to attend the tournament as Qatar is visa free to so many African nations.
• First time the tournament to be held during winter season for most European countries and the UK making it a perfect time to explore the gaming industry before or after the tournament.

Unlike all other previous World cups this one has come in a time when most African countries’s internet and mobile phone penetration are at their best high following the over 24 months lockdowns during covid-19 pandemic paving way for more bets to be placed across the continent than before.

Football makes up a huge proportion of the international online sports betting market, especially in European nations like Germany, France, Italy, Spain, and the UK. In fact, up to 90% of all sports wagers in the UK are placed on football. In Europe, even the most casual football fan will place a bet on the World Cup so will in Africa.

According to Sportradar one of the world’s leading sports data providers, bets on the World Cup totaled approximately €136 billion in 2018. The UK alone experienced a 50% upsurge in gambling activities?from the 2014 World Cup to the 2018 World Cup. In fact, each game in 2018 experienced an average betting turnover worth €2.1 billion.?This year, that number is likely to be absolutely smashed as this is the first opportunity for American football fans to bet online, following the supreme Courts 2018 ruling that legalized sports betting. Plus, with “soccer” now more popular than ever in the States, we could see an all-time record which growth are largely expected to double across the African continent as well interms of bets turnover making the continent the new kid on the block to explore.

Conclusion: Reach out to us if you’re a sportsbook looking to expand or explore the African sports betting industry and we vanish you with feasibility market reports about any African market, assistance with license application & acquisition, partnerships or any other key needs in the African gaming industry.

Three months after the passing of Law N°31.557 to enable gambling and sports betting in Peru, the Ministry of Foreign Trade and Tourism (Mincetur) has published on November 14th?a draft regulation for the market. The document is a first proposal to be reviewed to reach an agreement among all industry players. For a period of 21 days, the pre-regulation is available for all interested parties and operators to give their opinion so that the authority can have their input.

The content of the pre-regulation has 53 articles, which include general provisions, activity authorizations, technological platforms, certification laboratories, supplier registration and other technical specifications. The text of the law approved in the Congress of the Republic turns the Ministry of Foreign Trade and Tourism (Mincetur) into the national administrative authority for the regulation, authorization and supervision of online gambling and sports betting.

The document prohibits the participation of minors and persons with gambling problems identified through the Registry of Persons with Prohibited Access to Casino Games and Slot Machines. The Mincetur may order the Ministry of Transportation and Communications to block unlicensed sites.

Article 5 of the regulation ratifies what was stated in the document, insisting that the holders of an authorization for the exploitation of remote gaming technological platforms must be "legal entities constituted in Peru, and the legal persons constituted abroad that have branch offices established in Peru", which must constitute a company in national territory.

Municipalities may grant licenses for physical premises for remote sports betting with prior authorization from Mincetur. The premises must not be located within 150 meters of places of worship or education.

The legislation taxes gambling at 12% of each operator's taxable base (net revenues minus maintenance expenses), which will be collected monthly. Of the money collected, 40% will go to the public treasury, 40% to tourism development and 20% to mental health campaign.

Operators will be able to offer bonuses for online gambling if they cannot be redeemed for cash. Sports betting operators will have to display messages on all platforms warning that "excessive online sports betting may lead to gambling addiction".

Penalties for non-compliance will range from a warning and a fine of up to 200 soles (approximately US$50) for minor infractions to disqualification of the license. Mincetur will be empowered to temporarily close an operation and confiscate assets as a precautionary measure.

The legal advisors of the gaming and betting companies (operators, suppliers, certifiers) will now work to offer their views on this new technical pre-regulation so that their ideas and needs are now heard and considered in the final regulation.

Things are looking up Down Under

We begin this week with some strong financial results for Aristocrat Leisure, with the Australian company reporting revenue of AU$5.6bn (US$3.79bn) for the 12 months ended 30 September 2022, an 18% year-on-year increase.

EBITDA was AU$1.85bn, a 20% increase from the prior-year period, with Aristocrat reporting a net cash position of AU$564m and liquidity of AU$3.8bn at 30 September 2022.

The company noted that: “Strong operating cash flows and superior financial fundamentals were maintained, ensuring the business retains full strategic optionality and the ability to fund both organic investment and inorganic acceleration options.”

Aristocrat CEO and Managing Director Trevor Croker commented: “Aristocrat’s performance underlines the ongoing implementation of our growth strategy. Throughout the year, we continued to invest in competitive product portfolios to drive further share growth across key segments, greater operational diversification and deeper business capability.”

World Cup fever to hit the US

Excitement is building for the upcoming 2022 World Cup, which gets underway this weekend.

In the US, the American Gaming Association (AGA) has completed its inaugural survey on World Cup wagering, revealing that 20.5 million adults (8% of the US population), plan to bet a total of $1.8bn on the 2022 FIFA World Cup.?

Furthermore, most players planning World Cup bets (72%) intend to place traditional bets, rather than on betting components such as player props used for events like the Super Bowl and March Madness.??

Of World Cup bettors, 9.8 million plan to place a bet online; six million plan to place a casual bet with a friend; 4.7 million plan to place a bet at a physical casino sportsbook; 4.1 million plan to place a bet with a bookie; and 3.5 million plan to place a bet as part of a paid pool or fantasy contest.

BetMGM in Safe hands

Sticking with the US and indeed the huge global event that is the World Cup, BetMGM has announced that former US National Soccer Team goalkeeper Tim Howard has become its latest Brand Ambassador.

As part of Howard’s partnership with BetMGM, the brand will launch a series of free-to-play games, including Tim Howard’s Shootout Challenge and the $250,000 Bracket.

Howard said of his new ambassadorship: “America’s excitement for soccer is at a fever pitch, and I can't wait to take it to the next level with BetMGM, offering new ways for fans to get engaged in the game.

“BetMGM is at the forefront of the sports betting industry, and I’m proud to be part of the team ahead of the greatest tournament in all of sports.”

Matt Prevost, Chief Revenue Officer, BetMGM, said of Howard’s appointment: “Tim Howard’s performances on the pitch thrilled a generation of US soccer fans. With Tim’s support, we will bring a similar level of excitement to our customers through various games and interactive opportunities.”

No foul play

We started Down Under, so let’s finish Down Under, with the news that bookmakers Ladbrokes and Sportsbet have defended their heavy advertising presence in Australia amid an inquiry examining whether laws do enough to protect children from exposure to gambling ads.

Writing to the parliamentary inquiry, the companies made note of their efforts promoting responsible gambling tools, in a bid to show they shoulder responsibility for protecting young people.

Sportsbet noted there is “significant community interest” in its advertising, adding it is “committed to ensuring our approach to advertising is sustainable and in line with community expectations.”

The operator continued: “We therefore recognise the need to continue to develop proactive, practical solutions that will reduce exposure of minors and those suffering or at risk of harm.”

The inquiry is set to hold its first public hearing next week.

Brazil - A Work in Progress: The homework that needs to be done to attract gaming investments

On the night that Lula was elected in Brazil, Steve approached me to ask about my view on the future of the industry considering that situation.

Unfortunately, I had to deliver news that isn’t inspiring to any industry: a cloudy sky with almost only questions and few certainties.

Brazil: Certainties and Uncertainty

The biggest certainty we all have is that Brazilians are incredibly fond of entertainment, including sports betting, casinos, and Esports, as well as traditional sports without any links to our industry.

But now, almost certainly a bill that passed 4 years ago will expire without ever coming into force in early December, as the last days of President Bolsonaro are marked by almost complete ostracism, as the lame duck president vanished from the headlines across all newspapers in Brazil.

But what can we do with this cloudy scenario? Make lemonade with the lemons we have. I decided to use this space to discuss a bit about what needs to be done to transform Brazil into a betting giant.

Every Year of Democracy is a Victory for Brazil

I’m 31, and when I was born, in 1991, Brazil’s current democratic status was only 6 years old! Only when I was 3 my parents saw the country stabilize economically with a new currency, the Brazilian Real.?

While Brazilians aren’t happy with the recent devaluation of the BRL against the US dollar and other strong currencies in the last 10 years, the BRL brought stability that wasn’t the norm to us in the previous decades.

Brazil has a lot of economic potentials, but we can’t make the mistake of forgetting how young this country is. Lula may be an ex-con, but he’s a famous face and has political skills. If this country can live a 4 year administration that delivers us in 2027 as a democracy that will then be 41, almost 42 instead of 37 like it is now, more baby steps towards becoming a mature country like America are welcome and important. One step at a time.

What We Would Ideally See Between 2023 and 2026

Brazil will have a complex federal agenda in the coming administration. Brazil doesn’t have the fiscal muscles of America to fight back the absurd spending during the pandemic. Brazil lived a 737B BRL deficit in federal spending in 2020, which represents 10% of the nation's GDP.?

Moreover, Brazil increased spending on programs that can be compared with food stamps as well as the federal checks in the US during the pandemic.

We are also living in a change of political spectrum which will impact several changes in the names of government officials.

It’s too early to predict if we’ll ever be that relevant in the next administration. Some positive remarks during the campaign in 2018 made lots of people believe in Brazil that gambling regulation would come at once in the administration that is ending on Dec 31st, 2022. It didn’t happen…

I guess if we are humble enough to admit that while we are a big and strong industry, Brazil is an ocean of intricacies in itself.

If we smell smoke, then we can try to make sense of what may eventually happen. I stand by what I have been saying for years, that our industry could and should organize a more cohesive approach of gaming protagonists including operators and affiliates to propose fair regulations that would benefit all, including foreign investors, the federal administration and the tax collection, and the Brazilian gaming clients.

We could be more relevant if we stood together, yet I have been hearing the same things in Brazil during Bolsonaro’s administration: lots of delusional remarks and people claiming that ‘their guy in Brasilia’ would help things happen fast to the gaming industry.

Lobbying is not seen naturally in Brazil as it is perceived in mature economies like the US, and this excess of faith in back channels hasn’t brought us the regulations we want to invest responsibly in Brazil.

Last but not least, Brazil has only discussed so far fiscal regulations and gaming licenses. The country is still far from even beginning to discuss the rules in terms of gambling advertisement and general marketing.

As you can see, there’s a lot to be done in Brazil. And while that doesn’t happen, Brazil remains a thriving grey market for those who dare to face rising costs for gaming operators and a local currency that fluctuates very intensively and makes it hard to predict profits in USD, EUR or GBP, for example.

Stephen Crystal, Founder and CEO of SCCG Management announced a strategic partnership with 7BallRun, providing business development, and strategic advisory services for the distribution of their patented cue sport to existing betting platforms.

Stephen Crystal said of the partnership “7BallRun brings a brand new cue sport that was created to be fast-paced and bettor friendly. This patented format of billiards was specifically designed for distribution on web-based sports betting and virtual gaming platforms. With our extensive network of betting platforms in the SCCG eco-system, we look forward to distributing their patented cue sport format to betting platforms across North America.”??

Cyril Means, CEO of 7BallRun said “We're excited to partner with SCCG and leverage their 30 years of expertise in the gaming space. Working with them is a huge step towards reaching the scale that we aim to achieve. The team at SCCG has the experience and industry recognition to help 7BALLRUN further innovate within the gaming ecosystem and grow our business alongside proven industry leaders.”

7BallRunTM is a new kind of cue sport played by a single professional player in a Faraday-shielded enclosed area that’s fully secure and isolated. There is no opponent and no slowing down of the pace or tactical shots. The player's only focus is to pot all seven balls in order. Punters can then place bets on whether the player succeeds plus a range of other unique markets. SCCG has years of experience bringing game content to existing platforms and an ecosystem filled with complementary companies in the sports gaming space.?

ABOUT 7BALLRUN

7BallRun is a patented and trademarked breakless cue sports game to be played by professionals in a Company controlled venue. The sole purpose of the live game is for betting operators to take bets on the outcome of shots or series of shots made during the game.

https://www.7ballrun.com/