Month: May 2021

Having been delayed by 12 months due to the pandemic, the European Championships will finally get underway on Friday 11 June with Turkey vs. Italy in Rome.

The return of international tournament football will be a major boost for sportsbook operators looking to harness heightened levels of fan excitement in order to enhance engagement and create revenue-driving opportunities across 51 matches this summer.

In this webinar, Sportradar’s Dalraj Bahia and Blaz Zitnik will explain WHY creating an immersive betting experience can set you apart from competitors, HOW to structure marketing and customer activities throughout the tournament and WHICH products have been underestimated so far.

The session will cover:

• The importance of new betting options, including player markets, rapid markets and custom bet
• The increasing value of engagement tools for an operator
• Creating 24/7 engagement opportunities with the Euro Cup Virtual Football
• Customer targeting utilising programmatic video advertising

This webinar is sponsored by Sportradar

This webinar is part of the ICE 365 European Sports Betting series. Find out more about the series here.

The permit will enable Wazdan to roll out a selection of its online and mobile games with licensed operators in New Jersey.

This initial launch will include titles such as 9 Lions, Larry the Leprechaun and Sizzling 777 Deluxe, as well as other popular titles, such as Power of Gods: The Pantheon, Magic Stars 3 and Magic Fruits Deluxe.

“New Jersey needs no introduction as a market and we’re thrilled to be able to offer some of our most popular games to operators in the state,” Wazdan chief commercial officer Andrzej Hyla said.

“With more to come from us in this territory, it’s the first step on a very exciting journey.”

Wazdan also holds licences in Great Britain, Malta and Romania, while it is also certified in a number of other markets including Denmark, Estonia, Lithuania, Latvia, Spain, Portugal, Switzerland and Colombia.

H2 said that the first quarter of 2021 showed continued strong year-on-year growth for both B2B and B2C operations, despite a slight decline for B2C revenues compared to a very strong Q4 2020.

The companies analysed saw strong growth in the US, Australia and Asia, while they faced headwinds in Germany and the Nordics.

Sports betting revenue was up 51% year-on-year, while gaming revenue grew 28%, for an overall growth rate of 38% over Q1 2020.

This represents a slight slowdown on the growth reported in Q4, which saw sports betting up 58% and gaming up 32% for an overall growth figure of 32% year-on-year.

Overall B2C revenues for Q1 2021 were down 1% compared to Q4 2020, with sports betting down 7% but igaming up 6% quarter-on-quarter.

H2 said that Germany represented one of the major drags on operator revenues, where some operators are seeing revenue decrease by 50%-70% year-on-year due to the implementation of new regulations in Q4.

In the Nordics, operations were impacted by payment processing issues in Norway, a tax increase in Denmark and novel coronavirus (Covid-19) related restrictions in Sweden.

B2B revenues for online gaming suppliers have performed better than B2C revenues, with B2B revenue up 55% year-on-year, higher than the 52% growth recorded in Q4 2020.

Earnings before interest, tax, depreciation and amortisation (EBITDA) were up 119% year-on-year in the first quarter of this year, again a higher figure than the 113% growth recorded in Q4 2020.

The combined EBITDA margin for the companies analysed came in at a record high of 35.4% in Q1, compared to 32.5% in Q4 2020, but H2 said this figure has been inflated by the strong growth from Evolution in both revenue and EBITDA.

Looking ahead to Q2, H2 said that sports betting is expected to perform strongly year-on-year, as sports were largely cancelled in the first weeks of Q2 2020. Further, the European Championships and Copa America football tournaments taking place towards the end of Q2 2021 are expected to drive additional growth.

BetIndex announced that it would enter administration one week later, on 11 March 2021. On the dates from 8-11 March, however, the platform was open, with players able to place bets.

Other documents released ahead of the hearing today include emails from customers who had placed bets after 8 March, including one who said he placed bets worth £2,000 on 11 March.

Minutes of the 5 March BetIndex board meeting, which were included in the court documents, also revealed the board’s explanation for the decision to go into administration in the UK and not in Jersey, where the business is based.

It was outlined during the meeting that Jersey does not have the same strict administration conditions as the UK.

“The options for a Jersey company are far more limited than a UK company,” read the minutes.

“Jersey processes do exist however they are unlikely to be as effective as UK administration.”

It was therefore decided that administration in the UK was preferable.

The minutes detailed that in order to have a foreign company undergo UK administration, the company must qualify under a specific section of the UK insolvency act.

The decision to allow the company to undergo UK administration is then decided by the UK court.

It was concluded that Neil Kelly, CEO of BetIndex, received authorisation from the board to collaborate with Marcus Pallot of Carey Olsen law firm to receive a Jersey court date and letter of representation, ensuring BetIndex would go into UK administration with Begbies Traynor.

Further details of the process of the operator’s decline were also revealed in court documents. On an 11 December 2020 board meeting, it was announced that Football Index was suffering losses due to its dividend exposure. As a result, co-owner and chief executive Adam Cole, agreed to step down on the same day.

On 8 January 2021, Football Index gave its customers 30 days of notice for the removal of its in-play dividends from the platform. Football Index claimed that a replacement dividend was to be announced in its place. This replacement dividend scheme was later implemented on 29th January 2021 and increased monthly dividend liability by £80,000.

The operator then made a change in March – just after announcing plans to go into administration – that lowered customer dividends, saying that this was necessary to keep the business alive.

With mounting pressures on return payments, BetIndex announced in March that it would enter administration. The GB Gambling Commission also suspended its licence at this time, following a year long investigation. The Commission later said there had already been cause for concern, but believed that suspending the licence earlier would stop customers from receiving refunds.

After mounting pressure, BetIndex announced its claims process on 14 April for customers who were still owed money.

A hearing to decide how Football Index’s £4.5m player protection fund will be divided among bettors will take place today (21 May) at the High Court of England and Wales. A total of £3.2m will pay for funds in customer accounts at the time of administration.

However, there has been further discussion over the status of bets and dividends that were active at the time Football Index was suspended.

It was decided that the hearing will set a cut-off date for active bets. The proposed dates are 11 March, 26 March, and a time after 26 March.

Ahead of the hearing, BetIndex announced that it plans to relaunch Football Index, claiming that it will give equity in the business to individuals who held an active Football Index portfolio when it entered administration.

The latest tax proposal, first put forward in February this year, standardises tax rates at 10% of gross revenue for all verticals, as opposed to the original plans for a rate ranging from 10% to 30% of gross revenue. 

This also sets a tax on winnings over eight times the annual minimum wage in the country, or UAH48,000 (£1,223/€1,429/$1,745). 

The amended tax proposal also cancels a planned hike in licence fees that would have applied until the country established a central monitoring system for gambling. This would have trebled the fees due for betting, online casino and slots licensees before this date. 

However the Scientific and Expert Management Committee of the Verkhovna Rada argued that there was insufficient justification for reducing the tax burden on licensees. It said that gambling could have a negative social impact, and that tax policy should therefore be designed to limit consumption through higher duties. 
It should be set at a rate that ensures licensees make additional contributions to social projects, and which require the operator to raise the cost of its services to reduce the availability of gambling, the analysis states. 

The committee also claimed that by setting the tax on winnings at a particularly high rate, it could minimise returns from legal gambling to the state. 

Furthermore, the removal of higher fees during a ‘transition period’ until the central monitoring system was in place would mean there was less funding for economic, social and cultural causes, it added. 

By reducing the funding available at state and local level, the committee claimed budgets would effectively be cut. Under Article 103 of the country’s Criminal Code, it noted, tax benefits that impact local budgets must be offset by government subsidies – something which it said there was currently no provision for in the tax proposal. 

Finally, it raised the issue of when these new taxes could be applied. The legislation was due to come into force from 1 April, meaning the implementation date already needed updating. However, the committee noted that taxes and fees cannot be changed during a budget year. According to the Budget Code of Ukraine, measures that reduce budgets must be implemented by 15 July, of the year before they are to be introduced. 

The Committee has advised that the Rada address the concerns raised in its analysis. 

House Bill 6451 was approved last night (May 20) by a vote of 122-21 and will now progress to the state’s Senate for further debate and discussion.

Should it also gain approval in the Senate, the bill would move to Governor Ned Lamont for sign-off, then to the US Department of the Interior for final review before coming into law.

Introduced by Representative Brian Smith, HB 6451, seeks to formalize agreements Lamont reached with the Mashantucket Pequot and Mohegan tribes in March of this year.

The amended gaming compacts would permit the tribes to offer sports betting online and at land-based sportsbooks, as well as igaming and fantasy sports contests.

Online gaming and sports betting would be accessible both on-site at the tribes’ land-based casinos, as well as outside the facilities. Each tribe would be permitted to operate one skin for online sports betting and one for igaming.

Read the full story on iGB North America.

In addition, research was also conducted into two companies in Curaçao. The resident whose houses were searched was suspected of money laundering and offering online gambling in the Netherlands without a licence.

During the search on the suspect’s properties, two luxury vehicles, money, jewellery and paperwork were seized.

The Netherlands’ Tax and Customs Administration is carrying out additional assessments on the activities relating to the two companies in Curaçao.

In order to carry out the investigation, the police, the Public Prosecution Service, the Tax Authorities, the Fiscal Information and Investigation Service (FIOD), the Gaming Authority and the municipality of Velsen worked together under the Regional Information and Expertise Centre (RIEC) North Holland.

The RIEC focuses on combating what the KSA refers to as “subversive crime” by combining the resources, expertise and strengths of various government agencies.

The KSA said such crimes blur the boundaries between the underworld and society, as criminals set up businesses for their activities, apply for permits and rent or buy buildings.

All this requires the cooperation of society, such as estate agents and notaries, and the KSA said that the two worlds therefore become intertwined and criminals can exert pressure on the “upper world” and take advantage of it.

The Netherlands’ online gambling market is due to launch on 1 October this year, after the country’s Remote Gambling Act came into effect on 1 April.

Later in April, the KSA said it had received 28 applications from operators looking to get a licence in the market.

Understanding consumer trends goes beyond the now. Considering both current and future trends in equal measure is crucial for a successful engagement strategy.

NeoPollard Interactive (NPi), which is formed by NeoGames and Pollard Banknote, uses data-driven insights to create a robust, high-performance gaming experience with their platform.

Drawing on their expertise in lottery gaming, General Manager of NPi Liz Siver sheds light on how they are engaging the next generation of gamers by keeping a close eye on market changes.

“Living in such a digital world, the target is always moving. By the time Gen Z is of age to participate in lottery games, gaming trends will have evolved multiple times over, which means lottery experiences must continue to evolve, iterate, observe, test and learn.”

Knowing the trends

Two of the most notable trends about Gen Z, according to Siver, are their tendency to use an app rather than browser and their social use of games. In other words, Gen Z are much more likely to play online in groups, leading to a new age of engagement opportunities.

Siver cites the way Gen Z plays Fortnite as a classic example of their social dynamic when gaming.

“Gen Z prioritizes social opportunities in a gaming experience. In-game events – even concerts – are a way for friends to engage together.”

This sociable element has created a shift in motivations, with previous generations of gamers being incentivized by the ‘big win’.

Essentially, this rising generation of gamers prefer working on a number of smaller challenges and diversity in what constitutes a winning experience. The motivation lies more with the different stages of the journey as opposed to the overall outcome.

New priorities

The sheer volume of data that becomes accessible in the iLottery space gives partners like NPi an opportunity to derive player motivations from data insights. Insights reveal that a shift in priorities is particularly notable in instant win games, with Gen Z showing a preference for smaller yet more practical wins.

 Understanding that Gen Z craves personalization and an association to real-world practicality makes the experience and prizing more tangible to users, says Siver.

“Understanding these drivers informs our approach to tapping into the entertainment motivators of different player groups”, Siver says.

Siver reiterates the importance of those key player motivators, and how to tailor this effectively to create memorable and engaging experiences that drive connection with players.

“This involves translating those player motivators into the right marketing message, compelling promotions and awareness tactics that will result in bringing players to content that matches their entertainment preferences. Portal strategies that also serve up prioritized, relevant content and right-time banner placement also support this connection.”

Gen Z steers away from linear experiences and into the immersive. For operators, this creates new opportunities to engage users at various stages of the game.

According to Siver, observing Gen Z gaming behaviors shows that they favor “all-consuming content” which engages players beyond just the game.

One strategy that resonates with Gen Z is user-based content. “Zillennials” that watch gamers recording their gaming experience and posting to YouTube and TikTok is creating a new wave of immersive, all-consuming content and high interest based on influencer contracts and sponsorships. With an abundance of content creators in the gaming sphere, users and watchers can clearly see that content creation around gaming is rewarded.

This extends the impact of gaming far beyond the game itself and resonates with users in their everyday life, even offering additional layers of incentives.

In an increasingly crowded online marketplace, NPi is dedicated to elevating the gaming experience for players

With rapid changes in user trends as well as varying jurisdictions, this comes with its challenges.

“We work very closely with our customers to understand their unique player bases and jurisdiction’s specific regulations to ensure that we build content that is win for players, a win for our lottery partners and a win for the industry as a whole as we continue to modernize lottery experiences.”

Risks and opportunities

As trends evolve at such a rapid rate, half of the battle comes in keeping up. With change comes both opportunity and risk, and Siver highlights that the greatest risk operators face is missed opportunity. We must drive continuous innovation to stay relevant with Gen Z.

Risks and opportunities should be viewed not as disparate, but as tied to one another. Assessing the current trends using data-driven insights means taking a leap of faith, nonetheless, a well-informed one.

Getting to grips with Gen Z allows operators to open their doors to this important market. However, as with any generation, individual differences are such that no decision is entirely risk-free.

Not every game will deliver blockbuster revenues but operators can establish themselves as industry leaders by creating consistently engaging content that evolves in line with their consumers’ motivations.

Siver asserts that there is one thing about Gen Z to take note of: “What’s certain is that Gen Z has a baseline of gaming entertainment that extends beyond the experience of a lottery game today and we have a huge opportunity to innovate to keep pace.”

Under a proposed Company Voluntary Arrangement (CVA), a customer trust distribute a 50% equity stake in BetIndex between existing customers who had an active Football Index portfolio at the time when the company entered administration.

Details of this were revealed ahead of a High Court hearing today, that will determine how funds in a £4.5m player protection account may be distributed.

Adminsitrators said this was possible as “the underlying business model is attractive to customers and financially sustainable”.

Shareholders of Index Labs Ltd – owners of BetIndex – would have to vote to relinquish control of the company if a CVA could be agreed with customers.

An investment trust would hold the remaining 50% equity in BetIndex, with a view to attracting external investors. These investors could potentially create a means of exit for any players holding a stake in the customer trust, as the customers may be able to sell their stakes to investors.

Any customer would retain the right to become a corporate member, which would grant them the right to vote to elect members of the board of directors.

In terms of the actual platform, a similar format to the last original title has been proposed for the sake of continuity, but with certain differences that the operator said will help keep it financially viable.

Rather than a remote betting licence, the operator may obtain a pool betting licence, which was described as the “most sensible” way to continue.

An archived share pool containing £7m would be constructed in order to continue dividend payments, but dividends for these will be suspended for six months. All shares in the archive would expire after three years.

The administrators said “the directors consider that there is a real prospect” of the operator being relicensed.

When asked about the possibility of granting Football Index a new licence, a Gambling Commission spokesman said: “We would not talk about any potential licence applications or submitted applications. 

“We would thoroughly examine the business model of any licence application before granting a licence.”

The operator estimates that under this relaunch, players would receive roughly 20.5p for every pound owed.

The original closing statement delivered by BetIndex after the company went into administration mentioned plans of a potential restructuring in the future. A statement at the time said: “We are pursuing a restructuring arrangement to be agreed with our stakeholders including, most importantly, our community.

“We are preparing this through an administration with insolvency practitioners Begbies Traynor, to seek the best outcome for customers with the goal of continuing the platform in a restructured form.”

Under the agreement, Sportradar will use its Universal Fraud Detection System (UFDS) bet monitoring solution to monitor over 700 matches per season from the Austrian Regional Leagues. 

A team of integrity experts will analyse any irregular betting patterns, which are identified through mathematical models and machine learning algorithms. Any suspicious matches will then be reported to the ÖFB.

Sportradar detected more than 500 suspicious matches across global sport last year and has reported over 5,400 suspicious matches in the past 15 years.

“We recognise that match-fixing and other integrity issues present a clear and present danger in today’s sporting landscape and the ÖFB takes its obligations to this matter very seriously. 

“By working with Sportradar Integrity Services to monitor our competitions through its UFDS solution, we will have valuable oversight of global betting markets offered on our games,” ÖFB general secretary Thomas Hollerer said.

Sportradar Integrity Services’ managing director Andreas Krannich added: “In recent years, Sportradar has witnessed growing integrity issues across global football at lower levels of competition. 

“The conditions and challenges created by the COVID-19 pandemic has led to a heightened level of risk across global football and strong integrity measures are needed now more than ever. 

“We commend the ÖFB for their commitment to upholding the integrity of football within its competitions, through this UFDS agreement, and we look forward to lending our assistance to their integrity programme over the years ahead.”