The loan will raise $300m, while the notes offering will have an aggregate principal value of $200m.
The notes have been priced at 103.25% of the principal amount, or $206.5m. The loan’s interest rate is set at two percentage points above the London Interbank Offered Rate (LIBOR), a global interest rate standard.
In the letters, the APPG expressed “deep concern” about these sponsorships. It cited examples including Channel 5 soap Neighbours, which is sponsored by Entain brand Gala Bingo.
“Gambling companies are sponsoring programmes which seek to glamorise gambling with the aim of targeting women and young people and encouraging them to gamble,” the APPG said.
“We are very concerned that television companies are promoting gambling – we have ourselves seen first-hand the harm and devastation that gambling can cause to young people’s lives, families and communities.”
The APPG added that this was especially important during lockdown measures imposed to limit the spread of the novel coronavirus (Covid-19), as children were more likely to be at home during the daytime and therefore to see these gambling advertisements.
Alongside its members, the group said that 52 “experts by experience” had also called for “urgent action”.
The APPG has previously called for an end to all gambling advertisements in a report published in June 2020. Other recommendations included a ban on online in-play betting and an end to VIP schemes.
The expanded permit will allow EveryMatrix to cater game content for online casinos operating in the British market, via Spearhead.
Spearhead will now make available its portfolio of titles to operators and also add new titles focused on British players.
The gaming development business creates its games using the EveryMatrix RGS Matrix remote gaming server.
“The team here at Spearhead is dedicated to making the studios’ games widely available in Europe and beyond,” Spearhead managing director Mathias Larsson said.
“We’re excited to get into the UK market and I’m looking forward to making new business connections with operators looking to source exciting titles for their players.”
The concept of blockchain might feel a little intimidating, but in reality, it’s quite simple.
Blockchain stores information or data, just like a simple database. The difference between the two is how the data is structured and stored.
The data gets stored in fresh blocks where each block comes with storage capacity. Once this happens, it gets connected with the previous block containing data. And together, these blocks of data form the blockchain.
Now that we have a basic understanding of how it works, let’s talk more about the type of data that blockchain stores. The data can be transaction records or information about tangible or intangible assets. These assets can include patents, intellectual property, copyrights, houses, office space or cars, for example.
1. Fraud elimination
The data is recorded once and is visible to all the network participants. This data not only helps eliminate duplicate entries but also helps enhance transparency which, in turn, can also help to eliminate fraud.
2. More transparency
No one can alter the information that blockchain stores. When it is given incorrect information, it needs the correct information to reverse the mistake. And at the end of the day, both the correct and incorrect data are visible. This visibility enhances transparency and helps tournament organisers establish trust among gamers.
3. High-end data security
Millions of computer systems that participate in the chain store the data in blocks. Hence, even if the data gets lost somehow, it can always be recovered.
4. Automatic prize money transactions
Smart contracts help businesses set specific conditions on the blockchain. These conditions help to trigger automatic transactions. In esports, several conditions can be pre-set regarding prize money. Hence, the winners and runners-up can automatically get paid when the tournament gets concluded.
The lack of standard authentication tools and identity verification processes often results in security breaches through identity theft and card fraud.
This can lead to affiliate scams, bonus misuse, multi-accounting, account takeovers, chargebacks and even money laundering.
These frauds take a toll on the business’ overall revenue, damage its reputation and cause wastage of funds.
Fraud prevention tools help esports betting businesses overcome frauds and breaches effectively by securing their registration and authentication processes and providing them with high-end verification solutions.
Some of these solutions include device fingerprinting, IP analysis and use of light, as well as stringent KYC checks, moderating sources of incoming traffic, implementing security questions and answers, as well as detection of suspicious activity and users.
Fraud prevention renders several benefits to esports betting operators, including customer protection, minimised disputes, reduced regulatory fines, high-end security and increased credibility.
There was a time when AML regulations, data protection, IT security compliance and financial transaction processing used to be the only areas of focus for igaming operators. But times have changed.
These days regulations are tighter than ever and have completely transformed the landscape of compliance, which continues to evolve.
But what exactly is compliance? Well, it means aligning with certain rules and regulations, standards, laws and policies.
Every esports betting platform starts small. And when things go well, businesses strive to expand to various other jurisdictions. To do so, they need to conform to specific jurisdictional laws. But there is a catch.
If the compliance history and records of an online esports betting platform are weak, it can adversely affect the platform’s ability to acquire new licences as well as franchises. In short, we can say the success of an esports betting platform depends on its compliance history. In addition to this, the absence of a compliance programme also results in the revocation of the licence.
Having a good compliance programme in place enables esports betting operators to conform to the various regulations and allows them to minimise the risk of regulatory or criminal action, helps them maintain a healthy reputation in the industry, and enables them to identify areas of concerns and make amendments.
Online platforms have always been more vulnerable to fraud than land-based platforms. The convenience they offer is one reason why they’ve become the new safe place for cybercriminals and money launderers.
By its nature, esports encourages plenty of in-game purchases and transactions, and so esports platforms are attractive to criminal elements. Hence, KYC regulations have become stricter than ever. So, what is KYC?
KYC enables esports betting operators to get vital data about their customers and ensure they are not involved or associated with financial crimes such as money laundering. Though KYC checks are carried out during the onboarding of a customer, due diligence is an ongoing process that monitors and controls any suspicious activity.
KYC protects online esports platforms from fraud and enables esports operators to avoid severe penalties. It also helps operators keep their platforms safe and secure for legitimate customers while protecting their platforms’ integrity.
However, an increase in costs also saw its net loss grow to $138.8m (£99.5m/€116.0m).
Total revenue for the 12 months to December 31, 2020 amounted to $278.5m, up from $63.7m in the previous year.
RSI did not publish a full breakdown of revenue, but noted its online casino operations outperformed sports betting by three-to-one in both New Jersey and Pennsylvania in 2020.
Online casino, which includes slots and tables but excludes poker, accounted for 76.7% of revenue in Pennsylvania last year, compared to 23.3% for sports betting, while casino was responsible for 72.1% of New Jersey, ahead of sports betting on 27.9%.
However, full-year operating costs and expenses rocketed by 379% year-on-year to $411.9m, with the cost of revenue being RSI’s main outgoing, jumping 480% to $190.9m.
Revenue in January amounted to $49.4m (£35.4m/€41.3m), more than double the $23.9m posted in December last year, though the previous month’s figures were impacted by the temporary closure of casinos due to novel coronavirus (Covid-19) measures.
Online wagering accounted for $47.1m of total revenue for the month, whereas retail sportsbooks only contributed $860,392 in revenue.
In terms of operators, the Par-A-Dice Gaming Corporation, which runs a FanDuel sportsbook, led the market with $16.8m in revenue.
Casino Queen and DraftKings ranked second with $15.6m in revenue, ahead of Midwest Gaming & Entertainment and Rush Street Interactive on $10.8m.
Under the agreement, DT9 Media will have access to GiG Comply, the automated marketing compliance tool operated by GiG.
GiG Comply enables operators to scan web pages for content such as links and igaming “code red” words, with DT9 Media able to use the tool to set up checklist parameters to cover market-specific legislation and advertising standards.
This, GiG said, will allow DT9 Media to ensure that members of the DT9 affiliate network are aligned with its marketing message.
“As an affiliation company we are constantly striving to enhance our affiliate marketing compliance,” DT9 Media director Andrea Centore said.
“We believe that GiG offers the perfect compliance solution to manage and monitor our affiliates’ marketing campaigns, and we are excited to start this partnership with them.
GiG Media managing director Jonas Warrer added: “ We are happy to have partnered with DT9 Media LTD and look forward to supporting them in their efforts to enhance their affiliate marketing compliance.
“The growing demand for GiG Comply is a clear sign that we have created a compliance solution that is recognised as the go-to compliance tool within the iGaming industry.”
Of these 28,400 self-exclusions, 5,600 are from slot machines, of which 2,450 were for indefinite periods.
“We have noticed that self-exclusions on Slots Gaming have become more frequent, as more options have been available,” Veikkaus vice president for corporate social responsibility Jarmo Kumpulainen said. “However, we will not be able to analyze the situation thoroughly until after the exceptional conditions are over – the fact is that we currently only have ten percent of the machines up and running, due to the coronavirus.”
Meanwhile, 27,500 have self-excluded for online gaming, which some players having self-excluded from both slot machines and online gaming.
Of those who self-excluded, 77% are men.
This follows a series measures taken by the company to promote responsible gaming within the country.
One such measure is mandatory age verification on slot machines in public places, with the option for the player to set a self-exclusion on gaming for a fixed period of time. The operator also took a number of slot machines out of service.
Kumpulainen said: “We want to build an environment where we bear responsibility for those who are at risk of getting into trouble with their gaming. Compulsory authentication has brought us many new kinds of opportunities to do so.
“Veikkaus continues to work for safer gaming, and we are constantly planning diverse new solutions to help our customers manage their gaming better. We want to be a trailblazer of responsible gaming.”
Compulsory authentication came into affect in January 2021, before Veikkaus re-opened gaming venues in February.
According to their data, 28,400 customers have implemented self-imposed gaming bans, be that in retail outlets or online.
Revenue for the 12 months ended 31 December 2020 came to $49.2m, with this total made up predominantly of turnkey contracts with lottery operators. These contracts accounted for $32.3m of the supplier’s full-year revenue, up 87.1%.
During the year NeoGames, via its NeoPollard Interactive joint venture with Pollard Banknote, powered the launch of the Virginia Lottery’s online offering. This proved to be the most successful roll-out for a US lottery to date, and also saw NeoPollard awarded a five-contract extension.
The year also saw NeoGames and Pollard jointly agree an extension to their Michigan ilottery contract, running until July 2026.
NeoPollard also rolled out the PlayAlberta platform for the Alberta Gaming, Liquor and Cannabis Commission (AGLC), the Canadian province’s first legal online offering.
Outside of North America the supplier also extended its partnership with Czech lottery Sazka, to power its online lottery and gaming offering, until December 2025.
While turnkey contracts comprised the bulk of full-year revenue, NeoGames reported a further $6.7m from the use of intellectual property rights, and $4.4m in fees from development services provided to the NeoPollard JV.
Development and other services provided to Aspire Global, its former parent company, generated a further $2.4m in revenue, and royalties from game contracts brought in an additional $2.0m. The joint operation of Michigan’s ilottery accounted for the final $1.4m of revenue.
Most importantly, however, NeoGames listed on the Nasdaq Global Market in November 2020, raising $81.7m through its initial public offering.
“2020 has definitely been transformational for NeoGames,” chief executive Moti Malul said. “The year also marks positive signs for the growth of ilottery around the world.
“As regulators realise the potential value ilottery can provide to tightening governmental budgets, particularly during the uncertain times brought on by the Covid-19 pandemic, NeoGames continues to represent a trusted provider with superior technology and premium content driving the most profitable ilottery programs.
Playtech’s revenue was made up of close to an even split between B2B and B2C operations, as B2B revenue was down 10.7% to €494.8m and B2C revenue dropped 33.8% to €596.3m. €12.7m was removed through intersegment eliminations.
Breaking B2B revenue down further, €413.0m came from core business-to-business operations and €81.9m from Asia.
Breaking revenue down geographically, just over half of the business’ overall revenue came from Italy, thanks mostly to the Snaitech brand. While business-to-business revenue from Italy was just €25.0m, B2C revenue, made up almost entirely of Snai revenue, was €522.7m for overall revenue of €541.4m after intersegment eliminations.
While revenue from Snai was down year-on-year, Playtech chief executive Mor Weizer said the brand did well considering the fact that many of its retail locations were closed for much of the year, as it was the country’s overall market leader.
“Snaitech has continued to excel in Italy despite the retail closures in 2020,” Weizer said. “Snai achieved the number one market share position in Italy across online and retail sports betting and grew its overall online revenue by 58% in 2020.
“Italy continues to offer significant growth potential, and Snaitech is ideally positioned to capitalise on this opportunity.”
The UK was responsible for €150.0m in B2B revenue and €54.4m in B2C revenue, mostly from the Sun Bingo brand, for €200.9m overall.
The Philippines, Mexico and Malta followed with €70.2m, €54.9m and €54.7m, respectively, all entirely from B2B operations. No other country brought in more than €25m, with Spain, Germany, Gibraltar, Greece and Curaçao each responsible for more than €10m and Norway, Finland and Poland more than €5m.
The business paid €824.9m in expenses, down 22.5%. Of this total, €369.0m came from B2B operations, an 11.0% decline. Within B2B costs, research and development declined to €76.1m, costs of operations were up to €214.5m, administrative costs grew to €63.2m and sales and marketing costs were down to €15.2m.
Within the B2C segment, costs came to €468.5m, down 37.0%. Snaitech revenue dropped 42.1% to €390.2m, while white label revenue – including that of Sun Bingo – grew to €47.9m and other B2C sport revenue ticked down to €30.4m.
This led to adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of €253.6m, down 31.9%.
After employee stock expenses of €16.5m, charitable donations and professional fees for acquisitions, Playtech’s EBITDA came to €222.9m, down 33.2%.
The business then paid €188.1m in depreciation expenses and €45.4m in impairment costs, plus €63.4m in net finance costs, but made €22.1m through disposal of assets. This resulted in a pre-tax loss of €52.7m. In 2019, Playtech made a pre-tax profit of €88.2m.
After €20.4m in taxes, Playtech made a loss of €73.0m from continuing operations, after a €56.5m profit the year before.
It made a further loss of €224.3m from discontinued operations – mainly from its Finalto financial trading division, which it is currently planning to sell – for an overall loss of €297.4m. After accounting for currency exchange, Playtech’s loss was €317.3m, 25 times the loss it made in 2019.
“The attitude and skill of our people, and the strength and diversification of our technology-led business model has enabled us to deliver a robust financial performance in spite of the challenging backdrop,” Weizer said.
The year also saw Playtech expand its US operations thanks to deals with Bet365 and MGM and Entain joint venture BetMGM in New Jersey. These were followed by an agreement with Parx Casino owner Greenwood that would see Playtech expand into more states.
“Playtech also made significant strategic and operational progress by adding new brands, expanding existing relationships and entering new markets,” Weizer said. “We are particularly pleased with the excellent progress we have made in the US market, launching with Bet365 and Entain in 2020, and signing milestone agreements with the Greenwood companies in 2021 to license our products in Michigan, Indiana, New Jersey and Pennsylvania.”
Last week, 3 March, Playtech announced that Brian Mattingley would take over as its new non-executive chairman, effective on 1 June. Mattingley is currently chair of 888 Holdings, having sat on that operator’s board since 2005. He will succeed Claire Milne, who was named interim chairman in April 2020 after Alan Jackson indicated he would not stand for re-election.
Yesterday, Playtech announced that it had signed a new partnership with Kindred Group, to launch its RNG casino offering across the operator’s 9 brands, including its flagship Unibet brand.
