WestLotto invests €48m on retail revamp

The investment into 3,200 retail outlets across the North Rhine-Westphalia region is expected to be completed by 2026, to offer a significantly improved experience for customers.

WestLotto managing director Andreas Kötter described the record investment as increasing the availability and quality of its points of sale, as well as helping to cross-sell customers into its online offering.

It was also an opportunity to reinvest additional revenue generated through an increase in Lotto 6aus49 ticket prices implemented in 2020 into its partner network, he explained, describing the retail outlets as the lottery’s “most important link to [its] customers”.

“Our points of sale offer a safe and comfortable gaming experience every day,” Kötter said. “That is why we want to future proof them.”

The lottery industry in Germany experienced significant growth in 2020, resulting in €3.1bn being returned to state governments through duties and taxes.

Betting and Gaming Council names Willetts as new digital director

Willetts will take on his new role in the new year and be assisted by deputy director of communications and digital, Michael Denoual.

Willetts joins the BGC following a spell as press secretary to Conservative Cabinet Minister Ben Wallace and head of ministerial communications at the Ministry of Defence.

Prior to this, he spent more than 10 years working for The Sun newspaper. He replaces Kevin Schofield, who left the association to become political editor of the Huffington Post.

“I am absolutely thrilled to be joining the Betting and Gaming Council and can’t wait to get started,” Willetts said. “They’ve already made big strides increasing standards across the industry and I’m looking forward to working with the excellent team to drive that work on.”

BGC chief executive Michael Dugher added: “The BGC is the standards body committed to driving big changes across the regulated betting and gaming industry. David Willetts is a brilliantly experienced and respected former journalist and communications professional with an outstanding reputation in the media and in government.

“David will be a formidable asset for the BGC. He also joins a strong team which includes the superbly talented Michael Denoual.”

Paf partners BetMakers and ATG to overhaul horse racing product

This has seen Paf’s existing agreement with ATG revised, and it will still serve as an international sales agent for the former Swedish monopoly. The races that Paf previously covered will still be available, but the coupons, betting receipts and system for shared bets will change.

“There will be some new features to learn for the customers, but it will also be a simplification when the amount of coupons will decrease and larger winnings can be redeemed at Paf’s office in the future, which was not possible before,” the operator’s key accounts manager Sari Venho explained.

The technology powering the offering will be shifted to Betmakers’ gaming systems, while it will roll out terminals in the five horse race betting locations on the Åland Islands.

“This will be a completely new approach for Paf’s part, meaning that our Åland agents can continue to offer ATG’s range of trotting betting to all customers on Åland,” said Jannik Svahnström, head of new sales at Paf.

“We want to thank all our customers and gaming agents. They have had really good understanding and patience with the launch of the new gaming system.”

In August, Paf acquired Sweden-facing gambling brands Speedy and Speedy Originals from Hero Gaming.

Sportradar seals integrity deal with Swiss Handball Federation

Sportradar Integrity Services will deploy its Universal Fraud Detection System (UFDS) to provide bet monitoring for events such as the Quickline Handball League, Mobiliar Handball Cup and other men’s and women’s matches at senior and youth level.

UFDS combats match fixing by analysing betting patterns for abnormalities and reporting any suspicious activity to Sportradar’s partners.

“We have witnessed growing integrity threats over the years, particularly due to recent global events, as well as an increasing betting interest in sports such as handball, and so are excited to have entered into this partnership with the SHV,” Sportradar Integrity Services managing director Andreas Krannich said.

“At Sportradar, we are fully committed to assisting our partners’ integrity efforts and look forward to working together with the SHV to support the integrity of Swiss handball in the years ahead.”

The agreement follows Sportradar Integrity Services reaching a similar deal with the International Handball Association.

“We are taking all the necessary steps to safeguard our game,” added Jürgen Krucker, managing director of Swiss Handball. “We recognise that bet monitoring plays an important role in this across all levels of competition.

“Sportradar Integrity Services have a proven track record in the field of sports integrity, and by bringing them on board to monitor our competitions through their UFDS solution we will have crucial visibility of global betting activity surrounding our competitions.”

Playstudios expands teams in Vietnam and Serbia

This has seen staff numbers at its Playstudios Europe base in Belgrade grow to more than 90 people, where the company’s Pop! Slots app and reward platform, PlayAwards, are developed.

Playstudios Vietnam, with 45 team members, focuses on developing events, features and games across its portfolio, though primarily focused on its flagship MyVegas Slots app.

“The long-term investments we’re making in our Belgrade and Hanoi studios allow us to tap into the dynamic and high-quality talent in those markets while remaining competitive in this global mobile gaming industry,” said Andrew Pascal, founder, chairman, and CEO of Playstudios.

“As we continue to ramp up the contributions of these new teams, we’ll increase our capacity to drive the growth of our Playstudios portfolio while delivering a broader collection of experiences for our players.”

Playstudios went public in February, with a valuation of £825.6m, and has offices in California, Texas, Hong Kong and Israel alongside its Belgrade and Hanoi bases, as well as its headquarters in Las Vegas.

The company reported revenue of $70.6m in its Q3 results earlier this month.

GC’s Sarah Harrison: “Gambling is normal, but harm must not be”

In her address to amusements and high street gaming association Bacta’s Annual Convention, Harrison said the Commission had emerged from the Covid-19 pandemic “more focused than ever before on our remit to make gambling fairer, safer and crime free.” 

Faster progress towards raising standards for all consumers would be achieved in partnership with the industry, rather than by punishing its failings, she added, going on to highlight the successes of industry working groups formed last year.

This collaboration between the igaming industry and regulator has delivered enhanced due diligence checks on high value customers, age-gating for social media ads and limits on slot spin speeds, among other safer gambling improvements.

“This is the relationship we want with industry in the pursuit of ever fairer and safer gambling,” Harrison said. “We want to get to that, we want to get to a place where the level of harm caused by gambling is reducing, helped by a constructive and collaborative relationship with industry.”

Gambling, she continued “is normal”, pointing out that more than 40% of the population had gambled in some form over the past month. The industry, valued at over £14bn, is the size of British agriculture, with £450 lost by gamblers per second in the 2019-20 financial year.

“For millions this is the cost of having a good time.”

But for hundreds of thousands, Harrison went on, the cost was problem gambling and harm. “People suffering from financial, mental and physical harm because of either their own gambling or that of their loved ones or friends. It’s real, life-changing and can happen to anyone.”

There was evidence of that harm being reduced, with 0.3% of the population classed as problem gamblers, down from 0.6% in September 2020. The moderate risk rate also fell, from 1.2% to 0.7% over that same period.

“We cautiously welcome these numbers but it’s important to remember that these are a churning, changing group of people as well. There is nothing static about who is suffering harm.” Public Health England estimates the cost of that harm to be £1.27bn a year, she added.

“So gambling is normal, but harm must not be,” Harrison said. “We will continue to work to drive the levels of harm down.”

There were still too many operators not abiding by the Commission’s rules, which would hinder the sort of constructive relationship the regulator wants to build with operators. These failings were not historic – “they are happening now and they are causing harm”.

Turning to the government’s review of the 2005 Gambling Act, Harrison said the white paper that will set out potential changes to regulation was “getting closer”, without giving a firm date. 

As it approaches, the Commission’s goal is to develop a single customer view for online operators, she continued. This will require operators to improve the sharing of information to better protect players, while the Commission is working to ensure access to “robust, comprehensive data”. 

“Further investment will be essential for the Commission to both realise the potential and manage the risks that come from regulating an industry where technology is changing all the time” she said. “However, all the investment in the world will not deliver a more effective Gambling Commission if the data we receive from operators is lacking.”

For the sector that Bacta represents in particular, she picked out three topics as the most important. First was age verification, and while Harrison amusement operators for raising the minimum age for Category D machines to 18, but warning that far more needs to be done to prevent underage play. 

Similar to the online sector, a new code on responsible game design is being developed in partnership with Bacta. The need for rapid progress could make the process “a little bumpy” she admitted, but argued it was necessary. 

Finally Harrison gave her backing to cashless solutions for amusement and high street gaming operators, describing digital wallets as “a big step forward” for safer gambling. “For example, this technology provides a format where players can set limits on their spend and keep track of their machine spend over time. So we want to hear from any operator trialling them or using them on how it’s going.”

Harrison concluded by saying the British gambling industry – and the Commission – had endured a difficult two years, and that there may be further challenges in the next two years. 

“Whatever else changes, the work to make gambling in Great Britain fairer, safer and crime free continues,” she said, however. “We are more focused than ever on our core purpose and our desire to collaborate with all of you who share the same ambition continues. 

“The evidence suggests that we are on the right track. So let’s keep on going together.”

Tsogo Sun returns to profit in H1 as revenue rockets 144.3%

Revenue for the six months to 30 September was ZAR3.82bn (£180.5m/€214.1m/$240.3m), up from R1.57bn in the same period, but 35.8% behind pre-pandemic levels in H1 2019.

This year-on-year increase was mainly due to the easing of certain Covid-19 measures in South Africa, which allowed properties to resume activity. However, this included a closure between 28 June and 25 July, in line with national restrictions, while properties were subject to a curfew of 11pm at the latest.

The operator admitted it was “impossible” to ascertain when gaming would fully recover with trading restricted for the past 20 months. Certain measures remained in place during the half, including restrictions on opening times, meaning casinos lost between three to five hours of peak trading time daily.

Certain measures remained in place during the half, including restrictions on opening times, meaning casinos lost between three to five hours of peak trading time daily.

Tsogo Sun’s bingo operations were also disrupted, by violence and looting in July, which resulted in the destruction and closure of two sites in KwaZulu-Natal. These facilities were only able to reopen earlier this month.

The region’s other bingo sites were also impacted due to shopping centres closing earlier than required to help mitigate security threats.

Despite these factors, net gaming revenue was 127.6% higher at ZAR3.33bn, while food and beverage revenue jumped 547.6% to ZAR136m, rooms revenue 404.6% to ZAR111m and other revenue to 320.7% to ZAR244m.

The majority of this came from casinos, which accounted for ZAR2.72bn, with a further ZAR317m from bingo. Limited payout machines (LPMs, or slots) generated revenue of ZAR754m while other forms of gaming, such as online betting contributed ZAR37m.

The reopening of casinos and easing of Covid-19 restrictions also meant increased operating costs of ZAR2.54bn, up 85.1% on last year, while amortisation and depreciation expenses were also up to ZAR392m.

This left an operating profit of ZAR891m, compared to a loss of ZAR263m last year.

Tsogo Sun also reported ZAR412m in finance expenses, which resulted in a pre-tax profit of ZAR479, a significant improvement on the loss ZAR764m posted in H1 of 2020, while adjusted earnings before interest, tax, depreciation and amortisation rocketed 723.2% to ZAR1.24bn. 

After accounting for ZAR143m in income tax payments, bet profit for the first half amounted to ZAR336m, compared to a ZAR567m loss at the same point last year.

Stats Perform scores data deal with Australia’s A-Leagues

Under the deal, Stats Perform’s Opta data will now power all A-Leagues digital content, and support partners in creating experiences for fans. 

Data will be delivered through a range of Opta data feeds, with Stats Perform’s widgets to provide data-powered solutions for use across digital and social platforms, before, during and after matches.  

Content will include previews, recaps and bios for A-Leagues clubs, broadcasters and media ahead of matches, along with a selection of other editorial and video wire content.    

“Our content is driven by data at every level in order to create the best possible experience for fans,” A-League director of content Richard Bayliss said. “A partnership like this enables us to deliver the most innovative and engaging content, to enhance our storytelling capability, and to offer deeper, fresher insights into every match. 

“The better we get at telling the stories of the players and of the matches, the more fans can connect with the game.”

Stats Perform has similar deals in place with a number of other leading football leagues and organisations, including England’s Premier League, Spain’s LaLiga, Major League Soccer in the US and the Dutch Eredivisie.

Stats Perform chief revenue officer Steve Xeller added: “We are excited to help further the expansion and development of the game of football. With our data the A-Leagues will be able to not just reach their fans but will be able to engage with them in ways they haven’t been able to. 

“The A-Leagues have tremendous reach and we are thrilled to be a part of that.”

Strive Gaming brings in Haig Sakouyan as client success VP

Sakouyan has more than 19 years’ experience in the industry, during which time he has worked on more than 18 casino and sportsbook launches across the US. In his new role, he will be responsible for customer and end-user care.

Prior to his new role, he served as vice president of B2B with Bally’s Corporation subsidiary Bally Interactive, where he was responsible for partners including theScore and Rushmore gaming. He also oversaw all B2C launches for its BallyBet sportsbook in this position.

Haig Sakouyan

Previously Sakouyan was director of B2B services at Rush Street Interactive and worked as director of business development for BlueBat Games, which was later acquired by Novomatic’s Greentube.

“Sakouyan is an experienced and respected executive within the industry and is a key hire for us if we are to deliver on our slogan of performance at scale,” said Max Meltzer, chief executive at Strive Gaming.

“Sakouyan joins Strive Gaming at a time when there is incredible momentum behind the business with licences already secured in Arizona and Colorado and with applications in progress in other states, and I look forward to working closely with him as we move towards going live with our first partners.”

Strive Gaming received its first US licence from the Colorado Limited Gaming Control Commission in September.

In addition, Sakouyan is the first employee of Strive Gaming’s Canadian office, which is based in Vancouver.

“I am thrilled to join such an incredible team and to be able to use my years of experience to help Strive Gaming’s operator partners leverage the full power and potential of its cutting-edge platform,” said Sakouyan.

“This is an organisation that has made clear its ambitions and goals for the fast-growing US and Canadian markets, and I am honoured to be playing a part in what will undoubtedly be a hugely successful story for the company.”

Tab NZ turnover holds firm despite Covid-19 pressures

Turnover for the month came to NZ$226.9m (£116.6m/€138.6m), an 18.2% increase on the prior month, and beating the budgeted expectations by NZ$0.3m.

This included its highest ever turnover for a Saturday, after Group 1 racing at Hastings, Melbourne’s Caulfield Cup and Tab Everest in Sydney on 16 October saw 1.37 million bets placed and more than NZ$17m staked.

The Carlton Draught Caulfield Cup brought in turnover of NZ$1.0m, the biggest single event for betting on racing, followed by Cox Plate event at Moonee Valley with NZ$0.86m, and by the TAB Everest at Randwick with NZ$0.70m.

For sports betting, the National Rugby League grand final between Penrith Panthers and South Sydney Rabbitohs was the the most popular event, with turnover topping NZ$1.1m. The South Africa vs New Zealand Rugby Union fixture was next with NZ$0.84m staked, followed by USA vs New Zealand in Rugby Union with NZ$0.39m.

After winnings were paid out, Tab NZ was left with gross betting revenue of $36.6m, up 8.6% from September, with a slightly higher margin of 16.1%.

After operating expenses, profit for the month came to NZ$13.8m, flat month-over-month, and NZ$0.9m below budget. This was generated almost entirely from betting, which contributed NZ$13.6m of the total, with a further $0.2m from gaming.

Tab NZ was able to avoid more significant dips in staking and revenue in spite of the Alert Level 3 novel coronavirus (Covid-19) restrictions in place across New Zealand, which led to its Auckland and Waikato venues closing during October.

Operating expenses totaled NZ$9.5m, which came in NZ$0.3m below budget, while a total of NZ$16.4m was distributed to the Racing Codes over the month.

This broke down to $13.0m of Tab NZ’s profits, NZ$2.5m in fees from offshore bookmakers and NZ$0.9m in payments related to the repeal of New Zealand’s betting levy. In total, NZ$40.2m has been distributed to the racing industry over the first three months of the fiscal year.

Tab NZ warned that while it had managed to maintain distributions at budgeted levels, this could be affected by Covid-19 measures going forward.

“Although betting performance has continued to hold up well through early November, the varying restrictions for retail and gaming outlets in areas at various Alert Level 3 settings continue to be a challenge for the business,” it explained. “Tab NZ will continue to monitor and assess betting performance.”