Month: July 2021

iGaming Ontario will operate as a subsidiary of the state’s Alcohol and Gaming Commission of Ontario (AGCO) and ensure new measures are put in place to protect Ontario consumers from gambling-related harm.

The government first announced plans for a dedicated subsidiary last year, with Ontario expecting to open its new online gambling market in December this year.

“Ontario’s new legal igaming market will create new opportunities for Ontario businesses and a better, safer gaming experience for players,” Finance Minister Peter Bethlenfalvy said.

“A competitive, regulated online gaming market will provide a safer alternative to the unregulated, grey market websites that currently exist – and which may lack proper consumer protections or responsible gaming measures.

“A new legal market would also generate revenue for the province to invest in supporting jobs and businesses, supporting people and their families, and improving and strengthening critical public services for a post-Covid world.”

Read the full story on iGB North America.

Greentube has been able to launch nationwide after online gaming was legalised in the country from 1 July.

Greentube’s key account manager for Germany Julia Schagerl said: “We are beyond excited to have finally launched our games portfolio in the newly-regulated and highly-anticipated German market. The country has huge potential and our content has already proven popular with the local audience so we have high hopes for what the future has in store.

“OnlineCasino makes the perfect partner as we introduce our games to online players as they are an established operator with a great focus on responsible gaming, something that is of high importance to us at Greentube.”

OnlineCasino Deutschland AG has been in operation since 2013 in the regulated Schleswig-Holstein market, which was previously the only state in Germany to offer online casino.

CEO and Founder Andreas Pfeiffer added: “Greentube’s content is a must-have for a German operator and as the online market opens up nationwide we are thrilled to be the first operator to introduce their renowned games portfolio to local online customers for the first time.

“It is an exciting time for the gaming industry in Germany and we look forward to working together with Greentube to grow our online brand.”

The new German market includes a number of regulatory challenges, however. Online slots and poker will be taxed at 5.3% of stakes, while there will also be a €1,000 per month spending cap across all operators and a €1 per spin stake cap on slot games.

Germany becomes the latest market Greentube has debuted in, following its agreement with Poland’s Total Casino earlier this year.

Spelinspektionen stated that Tombola infracted section 17 of Spelinspektionen’s regulations by failing to include information about deposit limits, self-exclusion options and time of play measurement on Tombola’s desktop and mobile sites.

Tombola cooperated and corrected the infraction by including all necessary information on the site.

Spelinspektionen classified the breach as not serious, but “neither minor nor inexcusable”.

Yesterday, Spelinspektionen also issued warnings to licensees Multi Brand Gaming and More Tech Group for similar breaches of section 17.

More Tech Group received a further caution for infringing sections 7 and 8 of Spelinspektionen’s regulations, as the company did not display contact information on its website.

Yesterday, a survey from Spelinspektionen also suggested an increase in players using unlicensed gaming sites in the country. The survey also found that players who played on unlicensed sites admitted more readily than other players that their gaming increased during the coronavirus pandemic.

Playtech shareholders are due to vote at their general meeting on 15 July, where they will have a choice of bids from Barinboim and Gopher Investments.

Barinboim’s initially agreed a sale for Finalto worth up to $210m, before Gopher Investment’s $250m counter-offer cast doubt into the deal. Gopher urged the Playtech board to delay the general meeting and enter negotiations with the investment company.

However, Barinboim attests that it had a concrete agreement with Playtech in place, predicated on its ability to complete a deal quickly. Playtech previously stated that the Finalto sale had become an “elongated and thorough process”, and that Barinboim represented its best chance at a “clean break for Playtech.”

Barinboim claims it was highly accommodating of Playtech’s demands, which led to the signature of a Sale and Purchase Agreement (SPA).

While Gopher suggests that a lack of binding agreement in place allows Playtech to delay its vote and negotiate with other parties, Barinboim says that is not the case.

It claims Playtech will be unable to enter negotiations straight away if shareholders vote against the consortium’s bid, and another bidding process won’t be finalised until late 2022 at the earliest. Any termination of the SPA will also see Playtech owe Barinboim $8.8m.

A statement from Barinboim Group said: “Shareholders have a simple decision at the General Meeting on 15 July 2021: vote in favour of the consortium’s fully funded and board-approved binding agreement – reviewed by Playtech’s financial adviser and recommended by Playtech – providing considerable value, near term complation and certainty for shareholders and the Playtech business.

“Or risk being left in a predicament where there is no firm bid for Finalto and only speculative interest from an unknown entity and no certainty that any transaction will be completed in 2022, with all the costs, delay, uncertainty, and destabilisation for Playtech, the Finalto Business and Playtech shareholders.”

Advisory group Institutional Shareholder Services (ISS) backed Gopher’s bid, calling on the board to vote against Barinboim’s proposal.

Currently in Norway, only Norsk Tipping may offer most forms of gambling, while Norsk Rikstoto holds a monopoly to offer horse racing.

The case was brought to the Oslo District Court and Borgarting Court of Appeal from 2018, by lottery operator Norsk Lotteri AS after it applied for a gambling licence in the jurisdiction. It said Norsk Tipping’s monopoly was in contravention of the EEA Agreement.

According to the European Free Trade Association – the intergovernmental organisation of Iceland, Liechtenstein, Norway and Switzerland – the EEA Agreement guarantees equal rights and obligations within the Internal Market for individuals and businesses in the EEA (European Economic Area).

It provides for the inclusion of EU legislation covering the four freedoms; the free movement of goods, services, persons and capital throughout the 30 EEA States.

The Borgarting Court of Appeal has now ruled that Norsk Tipping’s monopoly on gambling may be maintained, as it is not in contravention of Article 31 of the EEA Agreement.

This article states that there “shall be no restrictions on the freedom of establishment of nationals of an EC member state or an EFTA state in the territory of any other of these states” and that this includes “the setting up of agencies, branches or subsidiaries”.

The Court concluded that the exclusive rights model was suitable for channelling players to a more responsible gaming offer, and therefore contributes to reducing the extent of gambling problems.

It pointed out that the existence of unregulated gambling taking place online within Norway did not necessarily mean the exclusive rights model was unsuitable.

Its judgement showed that the state applies a number of measures to prevent unregulated operators from acting in the Norwegian market.

With regards to Norsk Tipping’s betting products, the Court considered that the operator focused on responsibility rather than the attractiveness of its offering. This, it said, made the operator a leader when it comes to responsible gaming, as well as in the customer screening which it undertakes.

The case may still be appealed to Norway’s Supreme Court, however.

The Norwegian Industry Association for Online Gaming (NBO) last year called for an end to the existing gambling monopoly, after new research showed an increase in gambling addiction among Norwegians.

In June last year, Norway’s Ministry of Culture launched a consultation on a consolidation of the country’s gambling laws into a single Gambling Act, which aimed to maintain Norsk Tipping and Norsk Rikstoto’s monopolies in the market while improving customer protections.

Last month, the government submitted the new Gambling Act, which included a promise to impose greater sanctions on unlicensed operators and affiliates who offered unlicensed gaming to customers in the jurisdiction.

Vi Ron had already been banned for offences committed while playing as ‘NAMIERURO_YT’, but following an alert from ESL Asia, he was found to have breached this ban by competing in an event under the alias ’Hiroshi’.

ESIC said this action breached Article 2.4.5 of the Code of Conduct, which states that it is an offence “where the facts of the alleged incident are not adequately or clearly covered by any of the above offences, conduct that brings esport, the fame, event, ESIC or a member into disrepute”.

As a result, ESIC issued Lim Vi Ron with a one-year ban, in addition to his pre-existing sanction. The ban will run through until 1 March 2023.

In addition, ESIC member ESL, operator of the ESL Mobile Open Brawl Stars Season 1, has taken further action to disqualify Lim Vi Ron and his team from the competition.

“Bans exist to ensure that threats to the integrity of esports are mitigated to the greatest extent possible. It is apparent that any individual who acts in a way to undermine this purpose is acting in bad faith and to the detriment of the industry. ESIC takes any breach of sanction conditions seriously,” ESIC commissioner Ian Smith.

The sanction comes after ESIC this week also issued 12-month bans to three ESL Legends of Runeterra (LoR) players after they were found to have cheated in a tournament.

Le Hiep, DiaComSuon, and Cuticini will not be able to take part in professional esports events or competitions until 16 June next year as a result of their actions during the ESL Mobile Open Legends of Runeterra (Ladder 2) tournament on 16 June this year.

Affinity Interactive currently offers gaming and horse wagering services, and is set to launch social gaming and sports betting as part of its expansion across the US.

The business also has casinos in Nevada, Missouri and Iowa.

Read the full story on iGB North America.

Revenue for the three months to 30 June amounted to $257m (£186m/€217m), up from $214m in the same period last year, and an increase of 10% on a constant currency basis. 

888 put this growth down to the success of its product-leadership strategy, long-term positive customer acquisition trends and continued expansion in regulated markets.

The operator noted growth in regulated and taxed markets, which contributed 74% of revenue in the quarter, though performances in the UK, Italy, Spain, Romania and Portugal were offset by the impact of new regulation in Germany.

Focusing on segment performance, B2C revenue was up 21% year-on-year – 11% on a constant currency basis – to $247m. B2C sports betting revenue hiked 94% – due to the lack of sports events in the comparative period last year as a result of cancellations caused by the novel coronavirus (Covid019) pandemic – while B2C casino revenue was also up 13%. 

Poker and bingo revenues declined, though 888 said this reflected an exceptionally strong performance during the prior year period when many players turned to other gambling when sports betting was limited.

However, despite overall B2C growth, 888 noted a 6% decline in. B2B revenue to $10m, with this total down 13% on a constant currency basis.

888 plans to release its results for the six months to 30 June on 1 September.

“I am pleased to report that the strong momentum from the first quarter of 2021 continued into the second quarter, albeit with the year-on-year growth rate moderating in light of stronger comparables from the prior year,” 888 chief executive Itai Pazner said.

“Growth was driven primarily by regulated markets, where we believe ongoing market share gains continue to reflect our product-leadership strategy, highly effective data-driven marketing, and our excellent content.

“In addition to strong trading across our core European markets, we made significant strategic progress during the period in the attractive US market, where we announced a long-term strategic partnership with Sports Illustrated.”

Looking ahead to the second half of the year, 888 said that its board remains mindful of the potential impact of greater than normal seasonality in the summer post after the pandemic. Since casinos and bingo halls reopened in the UK on 17 May, average daily revenues in the UK were 20% lower than in the previous year.

888 also said it remained aware of the expected impact of regulatory and compliance changes in Germany.

Though investment in product and marketing is likely to be higher in the second half, 888 expects adjusted EBITDA for the full year to be slightly ahead of the prior year.

“The board remains confident that, with 888’s advanced technology, products and diversification across markets, the group remains well positioned to deliver further strategic progress during 2021 and beyond,” Pazner said.

Rank said the two-year agreement with Lloyds Bank will provide it with additional liquidity and also the opportunity accelerate investment in its transformation plan, when it is confident the business is delivering sustainable positive cashflows.

The new facility is subject to certain financial covenant waiver and associated conditions, including a quarterly minimum £50m cash and available facilities test. These measures are also in place across the operator’s other bank facility agreements.

Rank also has in place an existing £55m revolving credit facility and a £108.4m term loan.

Confirmation of the new facility comes after Rank last week announced that it generated an average of £8.6m in net revenue per week over the six weeks since its land-based venues in UK and Spain were permitted to reopen.

Since the reopening of UK venues, average weekly like-for-like net gaming revenue (NGR) at Rank’s Grosvenor venues was £5.5m, down 17% on the same period in 2019, but ahead of the £4.2m weekly figure it needed to break even.

Average weekly like-for-like NGR for Mecca bingo halls was £2.5m in the six-week period, down 20% from 2019 and only just ahead of the £2.5m a week needed to break even.

In Spain, average weekly like-for-like NGR for Rank’s Enracha venues stood at £500,000 in the six-week period, 34% lower than 24% but ahead of the £400,000 average weekly breakeven point.

House Bill 4308, proposed by California’s Luis Correa and New York’s John Katno, would “remove federal barriers regarding the offering of mobile wagers on Indian lands when the applicable State and Indian Tribe have reached an agreement”.

It would do this by defining any wager placed at a server on tribal lands as being placed on those lands.

This bill would mean that any legal challenges to proposals in Florida – where the state and the Seminole Tribe have agreed on a new compact to allow sports betting – could be dismissed.

Read the full story on iGB North America