Something for the Weekend - 31st March 2023

The week began with stories from two gaming giants. Flutter garnered “very strong support” from its shareholders in regards to a proposed listing of ordinary shares in the US, while Entain announced a long-term strategic partnership with Tab NZ .

But it was news of William Hill’s record ￡19.2m penalty from the GB Gambling Commission that rushed the industry into the headlines. With the Commission unearthing egregious violations of its terms – including the operator permitting one customer to spend ￡23,000 in 20 minutes without stepping in – a debate was sparked over what constitutes a significant breach of the Commission’s rules.

Zak Thomas-Akoo spoke to a number of industry experts about the regulatory action, discussing the long-term implications of the penalty and whether the industry as a whole needs to tighten up.

Lloyd Firth, counsel in WilmerHale’s UK white collar defence and investigations practice, said the record action could be a warning call to the industry. Nicola Finnerty, partner in the criminal litigation team at Kingsley Napley LLP, argued that the threat of action alone looked to be a motivator for change.

We’ll have more of the week’s news a little later on, but first let’s turn to something a little less serious.

iGB Diary: Techno horse, New life-hack unlocked and Crystal balls

Happy Friday igamers! This week the Diary wonders whether a horsey new brainwave is more pony than thoroughbred, writes off a trip to the Super Bowl and settles into a ringside seat at the Lottery.com circus.

Techno horse

A mere 18 months after the collapse of the non-fungible token bubble, Pari Mutuel Urbain (PMU) has proved it has its finger on the pulse by releasing a fantasy horse racing game and a line of bespoke horse NFTs.

Named ‘Stables’, this slightly comical cornerstone of the horse racing betting business’ web 3.0 strategy sees it get down with the kids – trying to hone in on that 18-25 demographic so beloved by marketing gurus.

The innovative new horse offering is linked to the performance of horses in the real world, which the company assures us is “totally different” from the world of betting.

Whether or not the high-stakes race for digital ownership represents the road forward or just another blind alley, the Diary just hope users aren’t teased for the long face.?

New life-hack unlocked?

Taxes, bills, healthcare, flying your entire family to the Super Bowl… ahh, the trivial expenses we wish could just disappear.??

But if you’re Jason Robins, CEO of DraftKings, they can!?

The CEO and co-founder of one of the most popular operators in the world was compensated $130,000 in “Super Bowl expenses” for the 2022 big game.??

Included in this were ticket purchases, special events, and travel and accommodation for him and his family during the week.??

In an expense report that would likely send any HR manager into a coma, Robins saddled shareholders with the whopping cost and was reimbursed for the personal outgoings.??

Maybe not the best PR move in the world, but you have to hand it to him on boldness alone.??

So next time you’re worried about getting the prime-cut steak at a company dinner, just do it. Don’t worry about how the expense report is going to look the next day. Channel your inner Jason.

But let the Diary warn you, flying your whole family to the Super Bowl on company cash might not go down well with your HR team, so check first (just on the off chance).??

Crystal balls

Former wunderkind Lottery.com has had a rough time of it recently. Over the last few months, the NASDAQ-listed business has witnessed a civil war in the boardroom, a bit of imaginative bookkeeping , a chief compliance officer facing an FBI investigation , and a corporate coup d’état – leaving the company well on its way to becoming the business school case study from hell.

Another astounding story of alleged malfeasance broke yesterday, after it emerged that following the acquisition of online lottery and horoscope business TinBu, the geniuses at Lottery.com settled on the brilliant strategy of not paying them any money. The whole sordid affair is heading to court now, adding another headache to the company’s pounding noggin.

In the few weeks we may have before the Department of Justice starts kicking down some doors, perhaps the Diary should abide by the wisdom offered by TinBu’s 30 March horoscope: “Try not to let money arguments ruin the day.”

Wise words to live by. Although, who knows if relying on horoscopes could Taurus apart?

The week on iGB

We kick off the news in India, where Tom Waterhouse analysed the rising popularity of online betting in the country . The sports betting market is growing at an astronomical 20% annually with the cricket wagering side alone estimated to be worth ￡122bn. Impressive figures for sure, but there are still a multitude of regulatory challenges facing would-be entrants in a country where the legal status of gambling remains grey.

Whether or not Gamingtec has any plans to operate in India wasn’t broached when I spoke to the platform developer’s commercial director Andrei Beu . However, he did tell divulge the company’s plans to enter other emerging markets, particularly Latin America and Africa.

The US also saw various developments this week, with many centred around the world of sports betting. The American Gaming Association updated its Responsible Marketing Code for Sports Wagering to include more stringent protections for college-aged bettors . Two separate sports betting legalisation bills passed statehouses in Vermont and North Carolina respectively, while Mississippi governor Tate Reeves signed a bill into law that would permit the formation of a sports betting task force .?

New Hampshire reported a rise in its sports betting revenue during the month of February, while Rhode Island had a slightly less exciting number to report – its revenue remained level year-on-year. Elsewhere, the Connecticut Lottery Corporation and Rush Street Interactive also announced plans to wind down their partnership .

In lottery news, and as already mentioned in this week’s Diary, the co-founders of lottery data business TinBu filed a lawsuit against Lottery.com , alleging that the operator did not make good on promises that were made when Lottery.com agreed to acquire TinBu.?

To consumer protection and the Australian Gambling Research Centre (AGRC) discovered that 46% of the country’s gamblers are at “some risk” of experiencing gambling harms. Along a similar vein, GambleAware announced a ￡350,000 grant towards research into how people experience gambling harms. Meanwhile, in Denmark, the country’s regulator Spillemyndigheden revealed that its self-exclusion service had recieved a total of 40,000 registrations .

Staying with social responsibility and the Entain Foundation this week released details of its new partnership with addiction charity Gordon Moody , wherein the Entain Foundation will fully fund the charity’s ￡740,000 Alumni Project.

And we end the news run-down in Sweden where nine more supplier licences were issued by the country’s regulator Spelinspektionen , with Relax Gaming, Yggdrasil and EveryMatrix among the awardees.?

iGB also put out a multitude of long-form and data content this week. We revealed that igaming revenue in Italy has continued to tick slowly downwards , despite slots and casino booming at the close of 2022. Meanwhile, our third annual esports report revealed that even as costs skyrocket in the most critical areas of our lives, esports remains a precious pastime into which people will continue to invest time and money.

In all industries the business case for developing and implementing a robust and coherent diversity and inclusion strategy is stronger than ever. Cole Rush looked at how the gaming sector is approaching D&I in a two-part series – you can read both parts here and here .

Lastly to podcasts and in the latest episode of iGB’s World Series of Politics , Brendan Bussmann and Brandt Iden discuss the progression – or lack thereof – of sports betting bills during this year’s legislative session.

That’s all for this week. Tune in on Monday for your usual bounty of the industry’s most important news.

See you next week!