Month: April 2021

Erik Selin Aktiehandel AB is an investment vehicle run by Swedish billionaire investor, Erik Selin.

According to Acroud, Jonas Strömberg currently works as investment manager for Erik Selin Aktiehandel and has held various senior positions with an emphasis on banking and finance during his career.

The business said that Maria Grimaldi Andersson, meanwhile, has extensive experience of running and building fast-growing entrepreneurial companies in the growth phase.

Andersson is currently chairman of the board of game developer Fall Damage Studio AB, as well as being a board member of esports community operator M.O.B.A Network AB, esports platform Esportal and Shortcut Media Group.

“It is a sign of strength for Acroud to be able to link such qualified people as Maria and Jonas to the company’s board,” said Robert Andersson, president and chief executive of Acroud.

“I look forward to developing the new Acroud together with them on our exciting journey ahead to create ‘The Mediahouse of the Future’”, he concluded.

Acroud, formerly Net Gaming, has undergone a broad strategy change since Robert Andersson took over as CEO in February 2020.

Last week, the company completed its latest acquisition, of Swedishsantas AB, which owns Swedish-facing tipster brand TheGamblingCabin. The deal saw Acroud buy 100% of the company’s shares for approximately SEK47.3m (£4.1m/€4.7m/$5.6m).

Published by Bojoko, the report focused on online casinos listed on its website that it has a 45% revenue share agreement in place with.

Despite this arrangement, average net revenue share after all casino fees stood at 23.9% among the casinos, with 8% being the lowest share.

The highest revenue share percentage stood at 40.8%, while 18 of the casinos audited had an after-fees revenue percentage lower than 16%, and 23 casinos between 30% and 41%.

Reflecting on the findings, Bojoko chief business officer Joonas Karhu said the report shows that more needs to be done to improve the relationship between both parties.

“We accept the need to pay fees on revenue share agreements, but those fees must be fair and transparent so that affiliates have the opportunity to discuss them before entering into an agreement to promote and operator’s brand,” Karhu said.

“But the report does more than just highlight this issue – it provides solutions and steps that can be taken to ensure fairness and transparency so that both parties can maximise the benefit of the relationship.”

Casinos fees can relate to a number of factors such as local market taxes, banking fees, marketing, licensing costs, bonuses, chargebacks, software provider fees and admin expenses.

Karhu said while these fees are essential, he, feels each partnership needs more balance.

“When an affiliate and operator agree to share revenue and the cost item is reasonable, it should be split evenly,” he said. “When it’s a question of cost-per-acquisition (CPA), which refers to a one-time reward to the affiliate for referring a qualified new player, the operator should absorb the fees – as the industry standard is now.

“This is because with a CPA, the operator believes in their ability to enjoy more revenue than the paid CPA and yield a positive return on investment due to their operational excellence.

“But when it comes to revenue share agreements, costs should be split as the operator is not paying an up-front free for the player, rather sharing the revenues they generate over time.”

In terms of how to address the issue, Karhu put forward a number of suggestions, such as an even revenue share split that does not favour either party, better communication from the casino operator to the affiliate, greater transparency in advertising for affiliate programmes, and for affiliates to question what they receive from their partners.

Karhu added that the new Professional Gambling Affiliate Association (PGAA) could also play a key role in future talks. Launched in October, the association aims to address the imbalance in the relationship between operators and affiliates.

“This is a breakthrough moment for both operators and affiliates, providing contractual security for both parties around key areas of any working relationship and commercial agreement,” Karhu said.

“Affiliates have long played a vital role in driving new players and first time depositors to online casinos, and the PGAA contract ensures they are rewarded fairly for doing so.

“Transparency is absolutely key to trust, and by building an additional layer of trust into these partnerships we can ensure they are long and successful.

“Revenue share agreements and fees have been an area of concern for some time now, but with our contract we can overcome these for the benefit of both parties.”

Are operators taking advantage of affiliates by making too many deductions from their share of the takings or are they simply reacting to changes in the marketplace and trying to claw back some overgenerosities of the past? Next week, iGB will publish an article exploring this topic.

Gross betting revenue for March amounted to NZ$31.7m (£16.4m/€18.9m/US$22.8m), which was $2.8m above budget in the month.

This better-than-expected performance was primarily down to above-budget turnover, which reached $205.7m in March, some $22.1m ahead of initial budget forecasts. 

Sports betting turnover was $17.5m above budget, with the Ultimate Fighting Championship   mixed martial arts bout between Jan Blachowicz and Israel Adesanya the most popular event of the month, drawing $473,000 in turnover.

In terms of racing, turnover was $4.6m above budget, primarily due to continued strong performance from overseas racing. The Auckland Cup at New Zealand course Ellerslie was the most popular racing event in March, accounting for $861,000 of total racing turnover for the month.

Higher revenue and turnover led to better-than-expected profit, which amounted to $11.9m in March, surpassing TAB NZ’s budget by $1.8m. Betting profit was $2.0m ahead of budget at $10.8m, but gaming profit was slightly below a budget of $1.9m at $1.8m.

Operating costs were $400,000 over budget at $10.7m, while distributions to racing codes also surpassed an initial budget by $400,000 to reach $10.5m for the month.

In terms of year-to-date performance, profit was $28.9m above budget at $116.7m, with this split $107.5m for betting and $13.8m for gaming. 

Distributions to racing codes in the year-to-date reached $94.7m, some $6.5m ahead of budget expectations.

The monthly report comes after TAB NZ earlier this month also reported NZ$26.5m in comprehensive profit for the first half of its financial year, thanks to growth in staking and revenue.

By Kenneth Williams

Those that want to bet on esports can do so relatively easily, with a range of different odds and markets available. But those that may be interested in having a flutter, but little experience of real-money wagering, fail to take that additional step.

After all, esports bettors are very different from their traditional sports counterparts. They consume very different kinds of media, and are much less experienced when it comes to gambling. 

Their relative youth and inexperience mean that there’s a significant information gap that betting operators can fill. 

By giving gaming fans the tools and advice needed to start betting, the operators can facilitate this conversion. If a business’ marketing plan includes informational content geared towards esports, there are a few things to keep in mind for each format.

Reading material

Blogs and newsletters are some of the most straightforward ways of attracting traditional sports fans to your website, but esports fans respond to different products. 

Email newsletters, for example, aren’t as popular with the younger crowd that makes up the esports audience. An email is more likely to annoy this individual than it is to entice them to a sportsbook site. 

Blogs, on the other hand, are essential to attract esports fans. They provide valuable space for search engine optimization and provide a reason to come to your site beyond placing a bet.

Educational blogs might seem redundant, but articles helping esports fans get up to speed are significant for bettors. Guides on how sportsbooks work, how to make deposits, withdrawals, or create a betslip are particularly useful for esports bettors. 

General news and season recaps are also very popular. Both types of content provide more room for valuable SEO.  Esports bettors new and old love historical content and quick overviews of events, and they’re more likely just to Google their questions rather than stick to one site.

Education through video and streams

While it exists, video content is scarce among both betting sites and affiliates. There is little sign of operators creating educational streams, only sponsoring such offerings. 

Written content is a good investment for several reasons, but some esports fans prefer recorded and live video content. 

Educational content can still be conveyed through video; it’s much more challenging to update recorded content. 

Written pieces such as “Biggest Tournaments this Year” can be simply updated, but video content updates could require new footage, editing and voice work. While certainly an option that would stand out to some bettors, video and streamed content simply isn’t as practical as written articles or blog posts.

Best practice

There are a few examples of operators already succeeding in providing these educational pieces, with Pinnacle one of the leaders. 

In addition to its general database of Pinnacle-specific betting guides, it offers a regularly updated esports blog covering several of the more prominent titles. 

These vary from explaining the positions of a Valorant team, to explaining how the Swiss tournament format works. While educational and entertaining, their pieces are, above all, useful.

Esports Entertainment Group, on the other hand, takes a different approach. 

Instead of focusing on news and game-related content, it chooses to create content around the evolving esports industry and its relationship to betting. 

Its professional format and easy-to-read press releases make it a common response to search engine queries. Similar business-focused approaches could work to lure more experienced bettors to your gaming sportsbook.

The operator said the deal was necessary to keep the business sustainable until it may reopen all of its venues.

All operating business will transfer to a new holding company, in which bondholders will have a 95% stake. Existing Codere shareholders will have a 5% stake, but also obtain warrants that give the right to receive up to 15% of any sale of Codere.

The deal requires support from 75% of bondholders to go through, although the company believes that these new agreements “already have majority shareholder support.” 

A group representing two thirds of super senior bondholders and half of senior guaranteed bondholders already backed the deal.

€225M (£195m) will be injected into the company, of which €30m will be contributed immediately, with a further €70m expected by the end of May.

€350m (£304m) worth of debt will also be converted into equity, the due date of which has been extended to September 2026 and November 2027.

Codere started negotiations with lenders last month after a significant drop in revenue – 57.2% – sounded alarm bells.

Its debt issues date further back, however, with the business agreeing a €250m financing agreement in July 2020. These notes, though, carried an initial interest rate of 12.75% that could then be lowered to 10.75%.

A statement from Codere said: “With the implementation of this restructuring, which will foreseeably be concluded at the beginning of the fourth quarter of the year, Codere hopes to ensure the future of the company – thanks to the trust of its bondholders in the group’s perspectives, in its management team and in the more than ten thousand employees that make up the organization.” 

Pace was named in the role during a re-appointment hearing earlier this week, but will not officially take on the position until it is published on Malta’s Government Gazette, an MGA source confirmed to iGB.

Lawyer Pace was deputy chairperson of the MGA throughout the past year and also took on the functions and responsibilities of chairperson when Heathcliff Farrugia stepped down in October.

Farrugia had served as chief executive and acting chairperson prior to resigning from the regulator. 

He was appointed to the role in April 2018, having initially joined the MGA in 2014 as its chief operations officer.

Despite not being officially confirmed in the new role, Pace has been added to the board of directors on the MGA’s website, albeit under his existing position of deputy chairperson.

Bill C-218, also known as the Safe and Regulated Sports Betting Act, secured approval at its third reading in the Commons last night (April 22), following passage at its second reading in February.

Approval clears the way for the bill to progress forward to the Senate, edging the country one step closer to legal single-event sports wagering.

Sponsored by Conservative MP Kevin Waugh, the bill was re-introduced to parliament in November last year, with the aim of repealing paragraph 207(4)(b) of Canada’s Criminal Code.

The Code currently states that sports betting is only legal if players bet simultaneously on at least three games or more, meaning consumers are not able to legally bet on single games, events or matches.

Read the full story on iGB North America.

By Kenneth Williams

Esports betting sites experience different marketing challenges from their traditional counterparts. Most importantly, they have to appeal to gamers, a notoriously opaque market compared to football or basketball fans. Bookies need to account for the differences between the two when planning their marketing efforts.

This distinction is further exacerbated when choosing affiliate marketing sites. Luckily, bookmakers can leverage a handful of esports-specific traits to improve their campaigns.

Esports fans differ greatly from physical sports fans when it comes to media. While NFL or NBA fans are more likely to watch established networks such as ESPN or FOX Sports, esports fans are much more open to independent sources. This means that affiliate sites can serve as great educational resources or even entertainment for esports fans, especially those interested in betting. By keeping a handful of criteria in mind, you can maximise the percentage of visitors clicking through an affiliate to your esportsbook.

What esports betting operators should look for in affiliates

Many media groups have tried to become the “ESPN of esports”, but none have quite succeeded. Pro gaming is still young, so fans can’t look to existing mainstream news outlets for news and analysis. Content creators have stepped in to fill the void. Twitch, Twitter and YouTube are the primary platforms for esports content, but the lack of a centralised platform means that curious would-be esports bettors are more likely to just Google their questions and click whatever comes up.

Because of that, search engine optimisation (SEO) is a must. Any affiliate site should already practice a clear SEO standard. Proper SEO dramatically increases the number of people finding the content through search services, therefore increasing the number of people clicking through to your site. 

Potential video game bettors also appreciate certain kinds of content more than others. They’re internet savvy and more familiar with how online businesses work, so sponsored reviews don’t mean much to them. News, historical information and general betting advice are much more appropriate for the esports market. Gaming bettors are generally younger than traditional sports gamblers and don’t have the same experience or comfort in the sportsbook. Instructional content specifically geared towards esports hit several valuable notes.

Lastly, the golden rule of affiliate marketing always applies. Perform your due diligence when researching a potential partner. Investigate what other betting sites they work with and how they’re represented. If you’re explicitly pushing esports, see if they’ve worked in the field before or just pay it some lip service. The quality of content also matters, so go to the site yourself and read some of their articles yourself. Affiliate partnerships create a link between their content and your site in the eyes of esports fans. If the SEO stands out like a sore thumb or the content is completely outdated, esports fans will be less encouraged to visit you.

Examples of good esports betting affiliates

If you want an example to follow, many affiliates have found great success. Betting operators should consider Esportsbets.com a standard. Its homepage is updated frequently with new designs and new content – scroll down and you’ll see in-house esports news, educational content and useful tools for bettors. It offers free odds trackers for CS:GO, League of Legends, Dota 2 and Overwatch. Esportsbets.com takes advantage of SEO to score hits from search engines, but readers have a reason to return to the site. Recurring visitors are much more likely to eventually click on a website. 

For a hybrid site, TheSportsGeek.com does a good job of balancing their traditional and digital sports content. Its SEO is mostly geared towards attracting sports bettors, but an entire section of its site is dedicated to pro gaming. All of the content is entirely unique from its existing traditional sports content, so esports players feel the same sense of importance as football or basketball bettors. Your affiliates should match your sportsbooks, so choose dedicated or hybrid affiliate sites based on what you offer.

Stefanski’s House Bill 688, which appears to replace his previous proposal HB 628, sets a $250,000 application fee for a sports betting licence. 

A $500,000 fee would then be payable upon receipt of the five-year licence itself. 

For platform providers, third parties that are contracted to operate sports betting on behalf of the licenceholders, a $100,000 application fee will be followed by a $250,000 licence fee. 

Service providers, meanwhile, are to pay $10,000 for their application under Stefanski’s bill, then a further $12,500 should they secure a permit. Sports wagering distributors, which appears to refer to affiliates, will be charged a $5,000 application fee, followed by $2,500 for their certification. 

All fees generated would be paid into the Sports Wagering Enforcement Fund, with this money to be used invested similar to that allocated to the Louisiana General Fund. 

Sports betting licensees would then be subject to different tax rates for retail and mobile betting. For in-person wagering, a 10% levy would be applied to gross revenue, while this would almost double, to 18%, for mobile. 

Tax revenue will be deposited in the state’s Bond Security and Redemption Fund. 

The survey – conducted by the CT Group with a panel of respondents who all emphasises betting frequency and how betting fits into the lives of the British public.

Over half of participants regarded betting as a “social activity”, while over a quarter said they had made “good friends” through betting and gaming.

Gamblers surveyed also said they tend to spend more on other leisure activities than gambling, with 78% sending they spend twice as much at pubs and restaurants than they do on gambling.

Meanwhile, 38% said they enjoyed spending money while 58% said they saw themselves as savers.

Over 90% of people who said they enjoyed betting identified as sports fans, while almost two thirds of them labelled themselves as active money “savers”.

In addition, 94% of respondents responded affirmatively when asked if they should be free to decide for themselves how to spend their spare time and money, which Entain said was an increase from December 2020.

The survey comes as the 2005 UK Gambling Act is under review by the Department of Digital Culture, Media and Sports.

The review hopes to target gambling advertising and player protections for young adults. It has already been decided that the minimum age to play the lottery will be raised to 18.