Month: January 2022

Odds On said that it would use the new funding to support its expansion plans, with a focus on data and technology development.

Launched in March 2021, Odds On is led by founder and chief executive Eric Frank, who was previously group compliance officer and vice president of legal affairs for The Stars Group, now part of Flutter Entertainemnt.

Eric Weiss, formerly chief of staff and technical services bureau chief for the New Jersey Division of Gaming Enforcement, also serves as vice president of technical compliance at Odds On.

“This is another big step in the evolution of Odds On Compliance as a gaming compliance-focused technology company,” Frank said. “These are intentional investments that bring the best of sports, technology, and data into our ecosystem. We are proud to partner with this diverse investment group as we continue to grow.”

SeventySix Capital managing partner added: “The team, led by Eric Frank, exemplifies the types of entrepreneurs that SeventySix Capital invests in who are shaping the sports betting industry. Their experience, relationships, and knowledge of the gaming and compliance industry gives us complete confidence in their ability to build a market-leading company.”

Tekkorp Capital, which invests in business within the global digital gaming ecosystem, also participated in the funding round and will now act as a strategic advisor to Odds On.

Tekkorp Capital chief executive Matt Davey said: “Tekkorp Capital funds those rare companies that truly innovate in the digital domain and Odds On Compliance, to my eye, is the absolute embodiment of such an enterprise.”

Of the total payment, €18,755 pertains to violations regarding gambling advertising, while the remaining €12,705 is due to conducting remote gambling agreements with foreign citizens.

Following an inspection from the regulator, the operator was found to have posted various advertisements on the sports news website sofascore.com in English and Lithuanian. This exceeded the permitted limits of gambling advertising as set out by the country’s gaming act and was therefore deemed to be a violation. In July, the country tightened its gambling marketing rules, banning a number of forms of promotion of gambling including bonuses.

The inspection also found that Amber Gaming had established remote gambling agreements with six foreign citizens outside of Lithuanian jurisdiction, which was also deemed to be a gaming act violation.

The sanctions handed out are subject to appeal.

The Gambling Supervisory Authority fined operators Unigames and Baltic Bet for violations back in September 2021 and October 2021 respectively.

Representative Cedric Burnett introduced House Bill 184, which would amend the Mississippi Code to allow a “digital platform” to also accept sports wagers, on 4 January when the 2022 legislative session opened.

This platform would be defined as a sports betting or racing operation that takes bets via the internet.

Mississippi’s existing land-based licensees may be permitted to offer online sports betting themselves, or an online operator may take bets on behalf of a licensee. The bill did not provide clear details on the number of operators that a licensee may partner with, but given that it specifies that “an operator” can partner with a licensee, this could be limited at one.

Operators that partner with licensees must be approved by the state gaming Commission and receive a manufacturer and distributor’s licence.

Online sports betting revenue will be subject to the same taxes as other gaming in Mississippi: 4% for gross revenue up to $50,000 per month, 6% for totals between $50,000 and $134,000 and 8% for operators with higher revenue.

The bill has been referred to two committees: the House Gaming Committee and the House Ways and Means Committee.

Mississippi was among the first states in the US to legalise sports betting, launching in August 2018. However, online gambling is currently not permitted despite numerous attempts to introduce the vertical.

In 2019, Burnett first introduced an online betting bill – House Bill 1481. However, this bill died in committee without ever seeing the floor.

In 2020, Burnett introduced another bill, House Bill 172, which saw the same fate.

Last year, Senator Scott DeLane introduced a bill that would have permitted wagering online and via mobile. Again, the bill died in committee without a hearing.

Acquired on a cash-free and debt-free basis, Ireland-based Thimba Media said that the purchase would consolidate its position in the UK, a market that it said will represent 20% of its total revenue in 2022. 

Seven Star Digital, which counts Topratedcasinos.co.uk, Topratedcasinos.ie, Compare.bet and Gamblingdeals.com among its network of assets, will continue to operate independently from its current base in London.

“The UK market is of specific interest to us due to its strong underlying remote gaming growth, digital penetration and stable local regulation,” Thimba Media chief executive Chris Russell said.  

“I believe that adding Thimba Media’s commercial and operational capacity to this business will help the current team to grow the business into a market leader in the coming years.”

Seven Star Digital founder Luke Eales added: “We established and sustained a key role in the highly competitive, regulated UK market, which is no easy feat. Now I’m genuinely excited to watch Seven Star’s next moves unfold, and I’m sure both its comparison sites and its fantastic team will enjoy further success.”

The acquisition comes after Thimba Media in April last year also purchased the online casino assets of Swedish digital publisher Astro Media Group.

Thimba Media paid $1.8m (£1.3m/€1.6m) to purchase the assets, which it said were online casino product comparison portals across predominantly locally regulated markets including Sweden, the UK and Latvia.

Under the deal, agreed last month, Gambling.com Group paid an initial $20.0m at closing, consisting $15.0m in cash and $5.0m in newly issued, unregistered ordinary shares.

A further $2.5m and $5.0m will be due on the first and second anniversaries of the closing, respectively.

Gambling.com Group said the purchase would immediately expand its presence in the US and is expected to create immediate accretion to its fiscal 2022 earnings.

The operator intends will leverage RotoWire’s existing audience, content library, workforce, media partnerships and trust with US sports fans to further accelerate its business in the US online sports betting market.

Read the full story on iGB North America.

BGC members each year provide horse racing with £350m (€417m/$471m) in sponsorship, media rights and levy payments, while £40m is spent on sponsorship across the English Football League (EFL), £10m on darts and snooker, and a further £2.5m in rugby union.

The BGC said that while this financial support has proved vital during the novel coronavirus (Covid-19) pandemic, it also highlighted the importance of the work its members do to help promote safer gambling among fans and sports stars.

This includes a £1m, five-year gambling education programme, which launched in 2018 and is funded by EFL sponsor SkyBet and delivered by EPIC Risk Management.

Betway, which sponsors West Ham United, has rolled out a training scheme to every English Premier League club it partners with to deliver safer gambling and responsible marketing sessions for employees including players and coaches.

Kindred Group also produced a four-part ‘Know Your Limits’ series featuring sports stars such as former footballer Wayne Rooney, retired boxer Carl Frampton and horse racing jockey Paddy Brennan to promote responsible gambling.

In addition, the £10m Young People’s Gambling Harm Prevention Programme – funded by the BGC and delivered by charities GamCare and YGAM – has programmes related to sport across the country, including at Premier League club Leicester City and Birmingham City of the Championship.

The BGC also noted the introduction of its own code of conduct on the use of social media by football clubs, whereby calls to action or links to gambling websites are not allowed on organic tweets on the social media feeds of football clubs.

BGC members have also pledged 20% of all television and radio adverts are safer gambling messages.

“Our members are proud to provide financial support to sport in a variety of ways, but it’s also important that this goes hand-in-hand with our work on promoting safer gambling,” BGC chief executive Michael Dugher said. “Around 30 million people in Britain – half the population – enjoy a flutter, and the vast majority do so safely.

“As we wait for the Government to publish its Gambling White Paper, I hope that promoting safer gambling continues to be an integral part of the betting and gaming industry’s commitment to supporting sport.”

888 announced in September of last year that it had reached an agreement worth £2.2bn (€2.6bn/$3.0bn), having previously stated that it was in “advanced” talks with William Hill owner Caesars over a potential purchase.

Caesars itself had acquired the William Hill business earlier in 2021 for £2.9bn, but having purchased the business for its US operations and tech, soon set out plans to dispose of the international assets.

Talks have been ongoing in recent months and 888 has now revealed it expects to publish a combined circular and prospectus for the acquisition and related capital raise in Q2 this year, with the shareholder vote to follow. 

888 said completion is expected to occur thereafter in Q2, subject to the satisfaction of any remaining conditions.

Speaking at the time of the original deal in September 2021, 888 chief executive Itai Pazner said acquisition would drastically change the scale of the 88business, as well as give the operator a more diversified balance between betting and gaming, as well as between online and retail.

“William Hill International is all of the original William Hill PLC except for the US business,” Pazner said. “It includes all of the technology and brands, and critically all of the talented people, with over 10,000 new colleagues.

“As a result, the transaction critically enhances the scale and diversification of the business, particularly in betting.

“The combination of 888’s technology and gaming-led business and William Hill’s sports-led business will create a really powerful and large business. Underpinned by scale, technology talent and brands, the enlarged business will be really well-placed for continued growth.”

The update comes after 888 last month agreed to sell its B2C and B2B bingo business to Saphalata Holdings Ltd, a division of Broadway Gaming Group, in a deal worth up to $54.0m.

The bingo business operates on a combination of B2B services under 888’s Dragonfish brand and several B2C brands.

Meanwhile, the Great Britain Gambling Commission has revealed William Hill supplied it with incorrect gambling data related to activity during the novel coronavirus (Covid-19) pandemic, which the regulator said could lead to “regulatory consequences”.

Since the beginning of the pandemic, the Commission has published aggregated operator data to support its monitoring and understanding of the risks and impact of Covid-19.

This data has been supplied by a number of large operators that represent approximately 80% of Britain’s online gambling market, including William Hill. 

However, following a query raised by the Commission during the data quality assurance process, William Hill informed the regulator that the data it supplied between March 2020 and September 2021 contained incorrect datapoints.

As a result, the Commission is now working to quality assure corrected data, re-run analysis and republish the corrected data in early February 2022. The regulator said it will also review any regulatory consequences of William Hill’s failure to submit accurate data.

Harris will replace Simon Hay, director of group finance at Rank, who also took on the role of interim CFO on 1 January. Hay will continue in the position until Harris joins in May.

Former CFO Bill Floydd revealed in August last year that he was to step down from the role in order to take up the same position with Watches of Switzerland Group.

Harris will join Rank from estate agency Foxtons Group, where he has served as CFO since June 2019. Prior to this, Harris was group financial controller for Laird plc, having previously spent 11 years at Marks and Spencer in a number of senior finance roles. 

“I am delighted to be joining Rank at this exciting time in the group’s journey,” Harris said. “I have enjoyed meeting various members of the team and look forward to working closely with them, John and the board to deliver the group’s strategy.”

Rank chief executive John O’Reilly added: “Richard’s extensive experience across a number of senior financial and operational roles will be invaluable as we continue to deliver the next phase of Rank’s transformation plan. 

“I look forward to welcoming Richard into the group in 2022.”

The appointment comes after Rank in October last year forecast a 69% year-on-year rise in group revenue for the first quarter of its 2021-22 financial year, with growth expected across all areas of the business.

In a trading update, Rank said total like-for-like revenue for the three months through to 30 September is set to reach £163.1m (€194.9m/$220.3m), in line with its expectations for the period.

In November, it was also revealed that Her Majesty’s Revenue and Customs (HMRC) is to repay Rank £77.5m after value-added tax (VAT) was wrongly applied to certain gaming machine revenue between 2006 and 2013.

The country’s Minister for Social Security Ardalan Shekarabi revealed today (4 January) that a consultation had been launched as a result of the worsening Covid-19 situation, in order to protect vulnerable players. 

The consultation will run until 17 January, with the new measures then implemented from 7 February, until 30 June.

“In a welfare state like Sweden, there must be strong protection for those who gamble for money,” he explained. “That […] is why we are reintroducing enhanced consumer protection now that the risk of problem gambling is increasing as a result of the pandemic.”

This player protection argument was also used as justification for the previous online casino deposit cap of SEK5,000, which was in force between 2 July 2020 and 14 November 2021. 

Originally intended to be a short-term measure, the cap was repeatedly extended. When he announced that it was to come to an end, Shekarabi called on local regulator Spelinspektionen to evaluate the need for a permanent cap on casino deposits. 

As with this previous limits, sign-up bonuses will also be capped at SEK100. A SEK4,000 loss limit will also be put in place for physical slot machines, where available. Players will also be required to set daily, weekly and monthly limits on time logged into their accounts.

The consultation acknowledges that some players looked to circumvent the previous deposit cap by setting a higher spending limit, depositing funds then switching to the lower cap to play casino games. Kindred and former horse racing monopoly AB Trav och Galopp (ATG) both received injunctions in 2020 after Spelinspektionen discovered this was a possibility on their sites, but these were later overturned by an appeals court.

As a result, operators would be required to contact players within 96 hours of them setting a higher limit to recommend cutting their maximum spend.

It comes as Sweden tightens its Covid-19 controls due to the spread of the Omicron variant of the virus. Measures implemented from 23 December require Swedish citizens to work from home, a requirement for vaccine passports to be used for indoor events of more than 500 participants, and people ordered not to congregate in groups of more than eight.

The government claimed that there had been an increasing number of gambling problems identified among those who had lost their jobs or suffered financial difficulty as a result of the pandemic. Budget and debt counsellors, it added, had also seen an increase in the number of people suffering financial harm as a result of gambling.

Slots were a particularly risky product, it said, with 45% of those calling the state’s problem gambling helpline saying they played the games, compared to 13% that bet online.

While the government admitted that the tighter controls could see players switch to gambling on unlicensed sites, it said there was little evidence that the previous SEK5,000 limit had changed channelisation rates, which remained stable between 84% and 86%. It added that there was also a risk players could shift spend to other products, such as betting, but there was little evidence to show that would occur.

The country’s gambling trade association Branscheforenigen for Onlinespel (BOS), which has been critical of the cap since it was first mooted, again attacked the proposal as hindering rather than helping player protection efforts.

Secretary general Gustaf Hoffstedt explained that as the cap could only be applied to an account with a single operator, those looking to spend more than the SEK4,000 sum would simply register to gamble with other providers. 

Spelinspektionen has previously pointed out that it was impossible to enforce the cap across all operators. 

Hoffstedt said that prior to the cap’s introduction, players tended to have accounts with one or two licensees. After it was implemented, there has been “a sharp increase” in the number of accounts held by each player. 

As play was split across multiple brands and accounts, it was more difficult for operators to develop an overall picture of player habits. “When gambling becomes as fragmented as it does with deposit limits, no individual gaming company can capture risky gaming behaviour, and thus a cornerstone of Swedish consumer protection in the gaming law is lost,” he added.

Hoffstedt therefore called on the government to rethink and safeguard consumer protection.

The regulator said it was “generally positive” towards the changes proposed to the gaming act – set out in October – designed to give Spelinspektionen authority over all gambling available to Swedish players. This would see offshore operators who aren’t specifically targeting the Swedish market fall under Spelinspektionen jurisdiction.

As a result, businesses not targeting local customers – but not blocking them from playing – could face action.

It follows the Netherlands’ Minister for Consumer Protection Sander Dekker announcing a similar change just before the country’s online gambling market opened. This resulted in a number of operators such as Entain, Kindred, 888  Betsson, LeoVegas and Casumo all blocking Dutch customers.

The regulator said this could provide clarity, as it would no longer have to determine whether operators target Sweden.

“Spelinspektionen is generally positive to the proposal for an amendment to the Gaming Act scope,” it said. “A simplification and extension of the concept reduces the risk of different interpretations regarding which gaming companies can target the Swedish market. 

“Spelinspektionen agrees with the investigation in those considerations made regarding the proposal.”

While European Union (EU) operators, such as those regulated in Malta, are expected to comply with any proposed changes, the regulator predicts that companies based outside of the EU may be harder to reel in as they will be less likely to adapt their business practices in accordance with the changes to the gaming act.

Spelinspektionen did express its concerns regarding the covert supervision proposals suggested in the report, where it was proposed that the regulator buy online gaming services under a hidden identity.

The practicalities of such an action were questioned, such as employees having to input private data to register accounts, employment law considerations and issues surrounding payment of winnings.

The regulator added: “Carrying out hidden test purchases can have a negative impact on Spelinspektionen’s opportunities to conduct supervision in this way. A bigger problem, however, is that the identity of individual employees is revealed, which means that the labor law aspects are still more troublesome. 

“It should therefore be clarified that a notice of test purchase does not need to contain information about which gaming account has been used, or any other information which enables the trader to identify who made the purchase.”

Spelinspektionen also acknowledged that greater emphasis will be placed on payment service providers, as a more complicated transaction process for unlicenced operators within and outside the EU will make it harder for said companies to operate within Sweden.

With regards to match fixing recommendations set out in the proposals, the regulator believes that the definition of match fixing should be clarified, as the current iteration doesn’t clearly state what is meant by match fixing.

Ministry of Finance and Chamber of Commerce director general Gunnar Larsson presented the proposals, set out in a report commissioned by Minister for Social Protection Ardalan Shekarabi.

Earlier today (4 January), Shekarabi also announced that a consultation had been launched on a new, lower deposit cap for online casino in Sweden. This would be set at SEK4,000 (£325.6/€389.2/$439.2) a month.