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Casinos Austria hires Erwin van Lambaart as new CEO

Van Lambaart will join the Casinos Austria management board from 14 March 2022, then take over the position previously held by Bettina Glatz-Kremsner from 1 April. 

His appointment concludes a recruitment process to select Glatz-Kremsner’s successor that was handled by executive search firm Spencer Stuart. The current CEO announced in March that she was to depart upon the expiry of her contract. 

Van Lambaart has led Holland Casino since 2016 and has overseen its expansion into online gaming from October this year. He previously worked in broadcast media, as well as leading an events business. 

He thanked Casinos Austria’s supervisory board and owners for the trust they placed in him. 

“Casinos Austria enjoys an excellent reputation in the international gaming industry, which we will continue to uphold in partnership with its managers and employees in the years to come,” van Lambaart said. “I’m really looking forward to the upcoming tasks. Together we will provide our guests and players with the best gaming experience, hospitality and entertainment, with a focus on the highest safety standards and responsible gaming. 

“I will contribute all my experience in order to make a sustainable contribution to the wellbeing of the group, together with the employees in these challenging times.”

As part of the recruitment process, a number of candidates were considered by the Casinos Austria board’s nominations committee, with three ultimately invited to interview. Van Lambaart was unanimously backed as the outstanding candidate. 

Sazka Group chief executive Robert Chvatal, said the appointment of van Lambaart highlighted a new approach to recruitment at the operator, following criticism of its hiring strategy in recent years.

“The entire search process was completely transparent, with professional experience and a deep understanding of the industry highlighted as key criteria,” he explained. “Erwin van Lambaart was approached by Spencer Stuart because he perfectly met the criteria for the position of CEO. 

“I am very pleased that with [this] appointment there was strong agreement from both the shareholders and employee representatives.”

This was echoed by Casinos Austria’s supervisory board chair Wolfgang Hesoun. He added that in the wake of that past scrutiny, it was crucial to ensure the new CEO’s appointment was handled transparently, which resulted in an “excellent” candidate being selected.

The appointment was also praised by Österreichische Beteiligungs (OBAG), the state investment business that jointly controls Casinos Austria alongside Sazka. ÖBAG board member Christine Catasta described van Lambaart as “an internationally experienced manager” capable of leading the business into the future. 

“Erwin van Lambaart is a seasoned professional who has a thorough understanding of the gaming industry,” Catasta said. “Due to his many years of experience at the state-owned Holland Casino, which operates 14 casinos, he will work together with the employees on the future development of [Casinos Austria].”

Chvatal, Catasta and Heosun also thanked Glatz-Kremsner for her role in shaping Casinos Austria over thirty years with the business.

The outgoing CEO added that after more than 30 years with the business, she was eager to leave the company in the best possible hands, and would now work to ensure an orderly handover.

Bragg subsidiary Oryx cleared for GB market entry

The licence will allow Oryx to supply its content to operators across the country. A number of Oryx games have been certified for the market and are expected to be live with operators by the end of the year.

Great Britain represents the latest territory Oryx has gained access to this year, having previously secured licences to offer its services in the Netherlands and Greece.

Bragg chief commercial officer Chris Looney said: “The UK online gambling market is unmatched in terms of size and maturity and the world’s leading operators all have a presence in the jurisdiction.”

Looney added that securing a licence in the market offer “significant growth opportunities” for the supplier

“This licence and our pending entry into the UK market before the end of the year will help to accelerate our international growth trajectory and offers another proof point of the success we continue to achieve with the execution of our global market expansion initiatives,” he added.

The GB Gambling Commission also recently granted a UK licence to casino content developer Jogo Global.

Bragg, meanwhile, is on the hunt for a new chief executive after Richard Carter departed amid a strategic review of the business that will see the CEO’s duties restructured. Its chair, and former Ontario Lottery and Gaming chief Paul Godfrey, will replace him on an interim basis. The supplier explained that its “exceptional” growth over the past six quarters – including a 9.9% rise in Q3 revenue – was not reflected in its public markets performance, meaning a strategic overhaul was required.

Gopher Investments drops out of running to acquire Playtech

Earlier this month, it was revealed Gopher had made an initial approach to Playtech about a possible takeover deal on 21 October.

Financial details of the proposal were not disclosed, but Sky News at the time reported that the deal could have been worth as much as £3.00bn (€3.58bn/$4.03bn).

Gopher was provided with access to certain due diligence information in order to explore terms on which a possible takeover offer might be made as a result. However Playtech has since been informed that the investment firm no longer intends to make an offer.

Gopher’s decision to withdraw from the running to acquire the full Playtech business leaves Australian slot machine manufacturer Aristocrat and JKO Play, a business controlled by Formula 1 team owner Eddie Jordan and industry veteran Keith O’Loughlin, in the race.

Aristocrat last month agreed to acquire Playtech in a deal worth approximately £2.70bn and remains the frontrunner.

Last week, JKO made a preliminary approach for the business, and has been given access to due diligence information. The business is in talks with Centerbridge Partners regarding institutional debt and structured capital funding to finance a possible deal.

Playtech also noted discussions with JKO are at an early stage and that there is no certainty JKO’s preliminary approach will result in a firm offer for the business.

Jordan and O’Loughlin were previously linked with an approach for OpenBet, Scientific Games’ sportsbook business, which has since been sold to IMG Arena owner Endeavor Group.

Despite the rival approach, Playtech said that it is continuing to work with Aristocrat to implement the recommended acquisition agreement struck in October. The supplier added that the regulatory approval process is on track, with the aim of completing the deal by the second quarter of next year.

Meanwhile, Playtech also said that the decision by Gopher to withdraw its interest in a full takeover does not impact its separate agreement to acquire its Finalto division

In September, Playtech agreed to sell Finalto to Gopher for $250.0m after its shareholders rejected a board-backed bid led by the Barinboim Group.

Playtech has been in talks over the investment of Finalto since January this year, and in May agreed to sell the division to a management consortium backed by Israeli private equity fund the Barinboim Group.

However, Gopher in July emerged with its own $250m all-cash counter-offer, which led to Playtech delaying its general meeting where shareholders would vote on the Barinboim bid, allowing the board to seek further information about the proposal.

The board asked Gopher a series of questions largely related to its ownership, links to China and whether these factors could hinder regulatory approval of any possible acquisition.

Gopher answered initial questions, but Playtech said it required further clarity on certain answers. After it did not receive responses, Playtech’s board said it would continue to back the Barinboim-led bid and hold its general meeting for shareholders to vote on the deal.

However, the majority of voting interest rejected the Barinboim offer, which meant that the agreement between the Barinboim consortium and Playtech was no longer valid, allowing the supplier to negotiate fully with Gopher

Despite scepticism from Barinboim, Playtech’s board agreed to sell Finalto to Gopher.

JVH subsidiary secures Dutch igaming licence

Issued by Dutch regulator Kansspelautoriteit (KSA), the new licence will enable JOI Gaming to offer games of chance via the internet.

The licence came into effect on 20 November, with JOI Gaming to operate igaming via the Jacks.nl in the Netherlands. JOI Gaming also owns the Jack’s, Jack’s Casino, Jack’s Casino & Sports and Jack’s Sports brand names, with its sportsbook offering powered by Kambi.

JVH operates a network of 85 land-based casinos across the country under the Jack’s Casino, Flash Casino’s and Flamingo Casino.

The Netherlands opened its regulated online gambling market on 1 October, clearing the way for players in the county to place legal sports bets and play casino games online.

The market launched with an initial 10 licensees, including Bet365, UK-based bingo operator Tombola, which has since been acquired by Flutter, Play North, Dutch land-based operator Holland Casino and state lottery Nederlandse Loterij with its Toto Online brand.

The Janshen Hahnraths Group with FPO Nederland, Italy-based Betent, Belgian brand Bingoal, NSUS Malta, which runs the GGPoker.eu brand and sports media and betting business LiveScore Malta also secured licences. A number of high-profile operators, however, had their market entry delayed as a result of passively accepting bets from Dutch players, including Entain, Kindred Group, 888, Betsson, Leovegas and Casumo.

Speaking at the time of the market opening, KSA chairman Rene Jansen said he expected more operators to launch, with a number of licence applications pending. 

JOI Gaming recently linked up with Holland Casino, FPO Nederland, Nederlandse Loterij and ZEbet to form a new online gaming trade association in the form of Vergunde Nederlandse Online Kansspelaanbieders (VNLOK).

Last month, VNLOK partnered with cross-sector body VAN Kansspelen to work together to create a new code of conduct for advertising in the Netherlands. 

Rank to receive £83m tax refund after B2 machine VAT case

HMRC will also be required to pay interest on this sum, which Rank estimates to total £5.5m, for a total rebate of £83m. Both the repaid VAT and interest will be subject to a 19.0% corporation tax.

The case dates back a number of years, and relates to fixed-odds betting terminals, or B2 gaming machines.

The introduction of the Gambling Act in 2005 saw the removal of a VAT exemption for fixed-odds betting machines. However, VAT exemptions remained for casino, electronic roulette and online betting terminals.

After challenging the VAT on the grounds of the erratic application of the exemptions, the European Union’s Court of Justice ruled in Rank’s favour.

While HMRC initially challenged the ruling, it announced in May 2020 that it would no longer appeal, setting a precedent for gaming machine operators to claim back incorrect VAT from HMRC.

This ruling was backed by the First-tier Tribunal Tax Chamber (FTT), which HMRC decided not to appeal in August.

Rank was a plaintiff in the case, along with Betfred. Rank claimed that VAT had been incorrectly applied between 2002 and 2005, while Betfred focused on 2005-2013.

In its annual report for the 12 months to 27 September 2020, Betfred noted that it was to receive an estimated £97.7m from its claim. William Hill, meanwhile, will receive around £230.3m, and Entain up to £200m.

Parimatch Russia appoints Sergeev to oversee franchise model shift

Sergeev, who was previously chief executive of the Parimatch Confederation of Independent States (CIS) business, will be tasked with developing the brand in Russia.

He will also manage the transition as Parimatch Russia splits from the Parimatch CIS business, to become a franchisee of Parimatch Tech.

In July, Parimatch rebranded to Parimatch Tech, as it shifted to offering its marketing and technology as B2B solutions for franchise partners. The supplier said this shift would also generate greater brand awareness among prospective partners for its technology solutions offering.

As such, Sergeev will take charge of Parimatch Russia’s expansion across the Central Eastern European (CEE) region as it applies for local betting licences, as well as growth in CIS markets.

The CEE region comprises Albania, Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, the Slovak Republic, Slovenia, Estonia, Latvia and Lithuania.

The CIS region, meanwhile, includes Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.

Parimatch CIS will now be headed by Yuliya Leshkova, who was previously deputy chief executive of Parimatch Belarus. No additional structural transformations of the Russian division are expected.

The Parimatch Russia division is led by CEO Ruslan Medved, and the operator said it has been growing across multiple verticals in recent years. More specific development plans for the Eastern European regions will be announced later next year.

“Russia represents a huge potential for future growth, and our continued expansion across the region increasingly demands more and more from each of us on the team, which I’m delighted to be leading,” Sergeev said.

“Our franchise-based development in the Eastern Europe is a new direction and will prove a highly ambitious challenge massive that both myself and our team will relish. 

“Each of our CIS regional markets have evolved into a strong business unit demonstrating great financial performance and exponential growth.”

Has igaming reached a fork in the road?

In introducing Entain’s new Advance Responsibility and Care (ARC) technology – an AI-powered series of tools designed to reduce gambling harm – at the Entain Sustain conference, the operator’s chief governance officer Robert Hoskin made a bold claim about the future of safer gambling.

“I believe we are at a major fork in the road in the future of gambling,” he said. “One route is poor regulation. It takes away the rights of people to do as they choose, it takes a heavy-handed approach to checks, limits and ultimately play.

“That route only offers more problems, driving players to the black market with insufficient player protection checks.

“The other route is ARC.”

There is no doubt that Entain believes its new solution, which offers a number of automated interventions for at-risk customers, including a forced “cooling-off” block if required, is a key tool in fighting gambling harm. It believes it can be more effective than rules imposed on the operator by any regulator.

But no operator can set out rules and regulations itself, regardless of how big it is. So do regulators, legislators and governments see a solution that comes from within the industry as a road to a sustainable future? In Hoskins’ view, they should.

“I do believe that solutions to certain problems that come from within the industry are going to be important,” he tells iGB. “Ultimately, those making decisions understand the consequences of poorly thought-out regulation, and they will want to take an approach that is effective in reducing harm.”

“If you look at France, there are serious limits on product availability. Or you can look at Sweden, where they’ve introduced a number of heavy-handed rules. Players in these countries have gone to black market websites instead where there are no protections. 

“We were involved in commissioning the report earlier this year from PricewaterhouseCoopers that found the black market is real and it is growing in the UK. This is the risk presented by heavy-handed regulation.”

Adults in the room

Right at the beginning of Hoskin’s keynote speech at Entain Sustain, he appeared set on rejecting the idea that gambling’s risks extend to a large number of customers.

Instead, he referenced recent Gambling Commission data which found that the percentage of problem gamblers declined to 0.3% in September 2021, while the total portion of people at risk was 2.9%.

“Most people, and by most I mean 99%-plus, derive harmless pleasure from betting,” he said in the speech. “They bet within their means, accept their winnings with joy and their losses with a rueful smile.

“And we know this for a fact.”

“However, these falling figures have not happened by themselves. We’ve been working tirelessly to ensure that we have a system in place that spots the signs of harm, intervenes with customers and stops customers on a harmful trajectory.”

But despite the reminder, Hoskin rejects the idea that the industry is not getting credit for its part in any reduction of gambling harm. Again he stresses that – where it counts – there are adults in the room who can see progress, thanks in part to the work of industry body the Betting and Gaming Council (BGC).

“I believe the industry is getting credit where it matters,” he says. “The BGC has been a very important part of that, willing to showcase the industry’s achievements in raising standards and lowering harm.”

Point of pride

Ultimately, the ARC tool is a clear point of pride for Entain. Hoskin explains that in order to find a solution that worked, it consulted with a number of gambling experts, combining this with its own knowledge of how customers use Entain sites.

“It’s all based around these marker-of-protection models,” he says. “We’ve used Harvard’s division of addiction, their learnings. We’ve used the research and input from Professor Mark Griffiths in the UK, and we’ve also used lived experience, that input from the EPIC Risk Management brigade. 

“It’s based on the best research out there, it’s given a practical slant from EPIC risk management and then we’ve used our technology to guide customers through that and we will offer them a portfolio of safer gambling tools.”

While there may have been bumps along the way, he says that Entain was now confident that the tool was as effective as possible in lowering harm.

“There are always unintended consequences or new learnings when you roll something out,” he said. “With every single development there are always new things you need to learn and tweaks you need to make, so it’s a constantly evolving process. 

“We’ve done huge amounts of testing, developing and tailoring to get the maximum impact.”

But despite these efforts to position itself as a leader in reducing gambling harm, Entain, unlike some rivals in the space, has opted not to set a specific target for the elimination of all problem gambling with its brands. In Hoskin’s view, the main targets anyone in the industry should set need to be wider, with the entire industry working to reduce the overall rate of harmful gambling rather than restricting this thinking to an operator-by-operator approach.

“I think the focus needs to be that the level of problem gambling in the UK has gone down but we need to continue to bring that percentage down further and further and further, through innovation and using technology,” he says.

As Entain and the rest of the industry face a pivotal year ahead in terms of regulation, it will have to hope that innovation and technology – rather than hard-and-fast rules – will be the route they are permitted to take.

Photo by James Wheeler from Pexels

Bally’s, Hard Rock, Rivers competing in Chicago IR bidding process

Bally’s has submitted two proposals, with each to feature a 500-room hotel, six dining establishments, bars and lounges, as well as a 70,000 square foot entertainment venue, and 20,000 square feet of exhibition space. Its gaming floor would include 3,400 slots and 173 table games. 

Should this be located at the site of the Chicago Tribune Publishing Center, within the city of Chicago, it would cost $1.8bn to construct. The cost would drop to $1.6bn, if the facility is located at the McCormick Place Truck Marshaling Yard.

Rush Street, via its Rivers brand, has also put forward two proposals. The first, for Lakeside Center at McCormick Place, would cost $1.3bn to construct. It would utilise the Lakeside Center’s 2,900 hotel rooms, adding an additional 250, and the 4,200-seat updated Arie Crown Theatre.

The property would also feature 12 restaurants and a food hall, as well as bars and lounges, as well as a casino with 2,600 slots and 190 table games.

The other is a $2.0bn development. This property would be with 300 rooms; eight restaurant/cafes and a food hall, five bars and lounges, a Riverfront plaza, an observation tower with indoor and outdoor viewing space and Harbor Hall, a multi-purpose riverfront venue for live entertainment. It too would host a casino with 2,600 slots and 190 table games.

Hard Rock International, meanwhile, submitted a bid for a $1.7bn resort, comprising 500 rooms, eight eating venues, six bars and lounges, and a 3,500-seat Hard Rock Live entertainment venue. The casino in this development would feature  3,400 slots and 166 table games.

“The calibre of the proposals from Bally’s Corporation, [Hard Rock and Rush Street] are in line with our vision to develop a world-class experience in Chicago that will drive significant economic growth and employment opportunities for our communities,” Chicago Mayor Lori E. Lightfoot said.

“Each proposal provides a unique vision for what Chicago’s casino-resort could look like, and our expert review committees are ready to dive into discussions to usher in a new and exciting era for our city.” 

The applicants will present their proposals to the public on 16 December. Beginning early in 2022, the city of Chicago will then enter negotiations to the bidders. It will also initiate reviews by relevant city departments and agencies at this stage, after which revisions to the proposals can be made.

There will then be follow-up community meetings to present any such revisions, after which the city will select its final applicant. The City Council will then introduce an ordinance in support of the development, while the winning bidder will be required to submit an application for the project.

This will be subject to approval from the Chicago Plan Commission and the City Council’s Committee of Zoning, Landmarks and Building Standards, before a final ordinance supporting the applicant and development will be issued.

A gaming expansion bill was signed into law in Illinois back in 2019, paving the way for the roll out of sports betting and the expansion of the state’s casino industry.

The bill also green lit the establishment of six new land-based casinos, including the Chicago facility. Licence fees for casinos and racetracks were set at $10m, with four-year online licences costing $20m.

Chicago issued its Request for Proposals (RFP) in April of this year regarding the building and running of an integrated resort within the city. The chosen partner will be the sole casino licensee in the city, with the property expected to open by 2025.