Intema closes acquisition of Loot.Bet owner

Intema takes ownership of all of the issued and outstanding securities in the capital of Livestream, as per the terms of a deal agreed last month.

Completion was made possible after Intema last week secured an online gaming licence in the Isle of Man, a key condition of the acquisition. 

“This is a great day for Intema as Loot.Bet is an important steppingstone for us in the esports and igaming sectors,” Intema president and chief executive Laurent Benezra said. “I would like to thank our shareholders, investors, employees and stakeholders for their overwhelming support and patience in closing this game-changing acquisition. 

“In our view, Loot.Bet’s online gaming platform is second to none and has great market and scaling potential. With the Isle of Man online gaming license in place, Loot.Bet is well positioned to expand its operations globally, which enables us to accelerate our expansion. 

“Over the last year, Intema’s team has been working hard in parallel to build our esports and igaming ecosystem in anticipation of this very moment, and we look forward to sharing our progress as we continue to expand our activities and focus on achieving profitable growth.”

The consideration payable will be held in escrow pending the posting of a filing statement on Canada’s SEDAR and issuance of the Toronto Stock Exchange Venture Exchange bulletin about the deal. 

Intema said the acquisition would trigger an automatic exercise of subscription receipts into common shares and warrants of Intema.

At this time, 20,014,000 subscription receipts issued as part of the offering will be automatically exercised into 20,014,000 common shares of Intema and 10,007,000 common share purchase warrants of Intema, for gross proceeds of CA$10.0m (£5.8m/€6.9m/US$7.9m). 

Each warrant allows the holder to purchase one common share at an exercise price of $0.90 for a period of 12 months from the date of issuance.

Intema plans to use a portion of these proceeds to fund the cash consideration part of the acquisition, while it also issued 6,470,588 common shares at a price of $0.425 each to vendors.

For the year ended 31 December 2021, Livestream posted €2.2m in revenue and a net loss of €173,818.

How to fix matches and incriminate people

“We do see all sorts really,” admits Stats Perform’s global head of integrity Jake Marsh.

As a company, the International Betting Integrity Association-accredited data analysts have seen a wide range of attempts to fix matches. Live data is a crucial component of the betting integrity sector, and fixers will do whatever it takes to get their hands on or manipulate it. 

“We’ve had fake games, we’ve had organised crime trying to infiltrate data collection networks in Europe, we’ve had a case in two different countries of a group deploying signal jammers to try and disrupt betting data distribution – which we identified and mitigated,” Marsh says.

“These are the things that can happen because live data, when it comes to sports events, is very valuable and can be used in a wrong way that can make people a lot of money. It can also lose companies, as in betting operators, lots of money.”

Football’s fake games

From a betting perspective football is the most popular sport to wager on, with the sheer volume of available outcomes providing rich pickings when it comes to market-making. From goalscorers to match results, throw-ins to corners, almost every facet of a football match can be wagered on. 

Match-fixing scandals are nothing new to the game and often make headlines, such as the 2006 Calciopoli scandal which saw several Italian Serie A teams colluding with each other to select favourable referees. Among those implicated were the champions Juventus, who were later stripped of their title before being relegated to the second tier.

Marsh recalls some of the more extraordinary attempts at match-fixing that Stats Perform has come across, including orchestrating fake football matches. Sometimes, the scope of the plan can be so extreme that it transcends even the personnel on the pitch.

“Two teams take to the field of play but they’re not actually the players from the teams that they say they’re from,” Marsh explains. “You get a referee involved, then you would pay or bribe a data collector to do the data collection as normal – and then you try and get operators to take the data. 

“The operators are being completely defrauded, and they’re relying on the fact that the data collector is who they say they are, and that they’re covering a legitimate match. All the things that we have in place internally in terms of risk, and what the data standards cover, are there to prevent that sort of scenario affecting betting operators, and therefore affecting the bettors themselves. We didn’t cover any of those matches precisely because of the protections that we put in place.”

As far-fetched as it sounds, this scenario really did take place. In 2010 a fixture between Togo and Bahrain saw the home side fielding an entirely fake team in a fixture that the Togolese FA knew nothing about. The incident was so scandalous that it spawned its own TV adaptation, Fixed: A Football Comedy.

Marsh also references a similar incident in Brazil, where the situation was serious enough to warrant law enforcement getting involved. 

“A website went up advertising a match. Long story short, this was not a real match: one of the teams didn’t even know about it. We identified it, because we were aware of this match in terms of if we wanted to cover it. We did our due diligence and realised something was amiss. So we reported it to Interpol who then got in touch with the national police in that country.”

If these examples show one end of the scale, at the other end are those unscrupulous individuals targeted because they can directly impact a particular outcome. Referees have been under the spotlight, infamously so in 2011 when two international friendlies involving Bolivia, Latvia, Estonia and Bulgaria spawned seven goals, all of which were scored from the penalty spot. One of the penalties was even ordered to be retaken when the player put his kick wide. German media reported at the time that the Estonia vs Bulgaria game attracted only 100 spectators – but a staggering €5m in bets.  

Off the pitch

Match-fixing in football isn’t always limited what happens on the field of play. 

Transfers are a huge part of the industry, meaning that the annual transfer windows bring a whole new level of drama. Between June and September, and again in January, customers are provided with a long-term market where bets can be settled one minute before the deadline. 

The furore around the transfer market brings its own challenges to integrity, as operator Betway discovered last year. Alan Alger, director of corporate communications at Betway’s parent company Super Group, has strong views on the matter.

“Do you want to offer betting services for those people that are massively informed on these things to go and make money from the people that are not?” he asks. 

“I don’t think that’s right, especially if you can control it like in transfer betting. It will always occur in betting – there will be horse races going on at different tracks where people will know more about the horses than the people standing there having their tenner bet – but for something like transfer betting, which isn’t needed and isn’t about something happening on the pitch, we decided to get rid of it.”

This type of betting, he says, can have a detrimental effect for the players at the centre of a transfer rumour, something that Newcastle and England right back Kieran Trippier can attest to.

Trippier was issued a 10-week ban by the Football Association after a close friend of his bet that he would move from Tottenham Hotspur to Spanish club Atlético Madrid in the 2019 summer transfer window. 

Other players have found themselves involved in similar controversies in the past, and Alger says it’s not fair for them to be put in these situations. 

“In football you can place bets on much more than what’s actually happening off the pitch and it puts players in difficult positions. You don’t want to be a player who plays for a high-profile team, you tell someone quite innocently with your family that you’re about to move clubs – which is normal. 

“It’s very natural to speak to your family about a job move once it’s coming through, especially for players. You’re preventing them from being able to do that in a relaxed manner because they’re always thinking in the back of their mind, ‘Am I going to get caught out?’’

Alger is keen for other operators to follow Betway’s lead, even though transfer betting can be a lucrative business. 

“It was important for us to say that we’re not just doing it for our reasons,” he says. “We think that Sky Bet, Bet365 and the people that have a huge transfer betting business should probably look at what they’re doing as well. 

“Cynics will say we’re calling them out because they make lots of money on it. We make money on it too and it’s not a case of that.”

Driven to the extreme

It’s not just football that has fallen prey to the fixers, other sports have their own examples of outlandish attempts to fix a result. 

Marsh recounts one such event that occurred during his time working in the Formula One industry. 

“A driver drove into a wall deliberately at over 150 miles an hour,” he says. “And that was linked to the team potentially losing sponsorship. So part of their strategy was for this guy to crash into a wall so their other driver could get up ahead and take advantage of a safety car.”

It’s hard to determine who is more at fault for this one; the team who ordered the driver to risk his life or the driver who went along with the scheme. 

If match-fixing and sport have one thing in common it’s that they are ever evolving. Tactics develop and progress as the years go by as those involved try to gain any advantage they can. The difference of course is that only one side plays by the rules.

Golden Entertainment returns to profit in 2021 as revenue surpasses $1.00bn

Revenue for the 12 months through to 31 December 2021 reached $1.10bn, an increase of 58.0% from $694.2m in the previous year.

Gaming revenue increased 60.7% to $766.3m, while food and beverage revenue also hiked 49.7% to $167.8m, rooms revenue 53.8% to $109.8m and other revenue 55.2% to $52.6m.

Breaking down this performance, revenue from the operator’s casino resort properties in Nevada, which include The Strat Hotel, Casino & SkyPod, Aquarius Casino Resort and Edgewater Hotel & Casino Resort, jumped 55.5% to $389.7m.

Also in Nevada, revenue from Golden Entertainment’s local casinos, comprising Arizona Charlie’s Boulder, Arizona Charlie’s Decatur, Gold Town Casino, Lakeside Casino & RV Park and Pahrump Nugget Hotel Casino, was up 41.5% to $159.9m.

In Maryland, revenue at the Rocky Gap Casino Resort increased by 51.6% to $78.2m, while Golden Entertainment said revenue from its distributed gaming operations in Nevada and Montana, including its branded taverns in Nevada, jumped 68.0% to $467.6m.

Turning to costs and total operating expenses for the year were 22.1% higher at $930.5m. Non-operating expenses totalled $3.8m as $62.9m in interest costs were largely offset by $60.0m in other income.

This left a pre-tax profit of $162.2m, compared to a $136.6m loss in 2020, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 164.5% to a record $291.7m.

Golden Entertainment paid $436,000 in income tax meaning it ended the year with a net profit of $161.8m, in contrast to a net loss of $136.6m at the end of 2020.

Looking at the fourth quarter, revenue for the three months to 31 December increased 37.2% year-on-year to $282.0m. Gaming revenue was 29.8% higher at $191.2m, while food and beverage revenue jumped 41.3% to $44.8m, rooms revenue 71.1% to $29.6m and other revenue 76.3% to $16.4m.

Operating costs were 19.7% higher at $247.5m while non-operating costs were down 12.6% to $15.3m, comprised almost entirely of interest expenses.

Pre-tax profit reached $19.2m, compared to a net loss of $18.6m in 2020, while adjusted EBITDA also increased 72.1% to $67.8m.

After paying $70,000 in income tax, Golden Entertainment ended the fourth quarter with a net profit of $19.1m, in contrast to a net loss of $18.5m in 2020. 

“Our strong fourth quarter results concluded a record year for Golden, as we successfully navigated challenges to our operations throughout 2021,” Golden Entertainment chairman and chief executive Blake Sartini said. 

“The improved performance across our diverse operations drove our total annual revenue to over $1.00bn for the first time in history with full year adjusted EBITDA growing to $291.7m, almost 60% higher than full year 2019. 

“For 2022, we are focused on maximising our operating performance and cash flow which will position the company to refinance its existing indebtedness and accelerate returning capital to shareholders.”

Danish regulator issues further warning to Unibet over AML breaches

Following an investigation into Unibet’s activities, Spillemyndigheden said that it identified a series of breaches of Denmark’s Money Laundering Act.

These violations, the regulator said, included that Unibet had not adequately risk-assessed its customer types and game types, which it said opened up the brand to potential misuse for money laundering purposes.

Spillemyndigheden said that until 25 January this year, Unibet did not have sufficient written business procedures for the ongoing monitoring of existing customer relationships, thus violating the rules of business procedures in Denmark.

Unibet was also found not to have in place sufficient business procedures to obtain and assess documentation in connection with suspected money laundering and to mitigate existing risks through certain payment methods.

Meanwhile, Unibet was issued a further warning after Spillemyndigheden found that, until 22 April last year, it had “deficient business practices” for dealing with politically exposed individuals and their close business partners.

Another failing was identified in relation to customer due diligence procedures, with the regulator saying that, following a random inspection of 20 major customers at Unibet, the operator failed to carry out sufficient customer due diligence in five cases.

Spillemyndigheden said in three of these five cases, Unibet neglected its duty to investigate suspicious transactions, while in one case, Unibet failed to notify the Money Laundering Secretariat about its suspicion or reasonable cause of suspicion of money laundering.

The regulator also identified violations of the Money Laundering Act’s rules on customer knowledge procedures, duty of investigation and duty of notification, in connection with an inspection carried out in response to a citizen inquiry about major games.

A warning was issued after a young player was allowed to deposit more than DKK1.0m (£112,191/€134,418/$152,858) into their account in one year, without having “sufficient knowledge of whether the player’s funds originated from criminal matters. 

Funds were deposited using six different deposit cards, of which at least one did not belong to the player. Spillemyndigheden said Unibet only tried to investigate the origin of the funds after the player was no longer active with the operator and also after the regulator asked Unibet to send money laundering notes on the player.

A further warning was also issued after Unibet failed to notify the Money Laundering Secretariat immediately on the case. The regulator said a notification was only made more than six months after Unibet established there was a suspicion of money laundering and after it had consulted Unibet about the case.

In addition to the warnings, Spillemyndigheden ordered Unibet to make changes to its risk assessment in order to include all of the flagged matters and concerns. Unibet was given a two-month deadline from 16 February to complete these updates.

Responding to the warnings, Kindred said in a statement issued to iGB: “As previously communicated, Unibet  ’Denmark’ Limited, which operates Kindred Group’s Danish business, has been reprimanded by the Danish gambling authority, regarding past failing related to AML.

“Since then, Unibet has, in collaboration with the regulator, updated its AML framework accordingly and will provide the regulator with an updated risk assessment.

“Kindred Group have the ambition to demonstrate the highest quality and standards in the industry and we are pleased to see that the regulator have now acknowledged that the breaches no longer exists.

“Kindred has corresponded with the regulator in the matter in an open, transparent and productive manner throughout the process.

“We will continue with the collaboration and do everything necessary to further strengthen our control procedures maintaining our ambitions on offering high consumer safety and AML security.”

The announcement comes after Spillemyndigheden in December last year issued a warning to Unibet over breaches of money laundering regulations. This was related to a where a Unibet customer was allowed to deposit DKK1.4m between December 2016 and December 2018, without Unibet confirming these funds did not originate from criminal activity.

At the time, Kindred told iGB that it had updated its policy and procedures over the past year to ensure “further improvements” to its AML framework. 

“We are taking necessary precautions to ensure we remain compliant with AML regulations and maintain our high standards on consumer protection,” Kindred said.

This week, the Norwegian Gambling Authority ordered Kindred to stop illegally offering gambling in the country, threatening a fine of NOK1.2m per day if its activity continues.

The Authority pledged to continue the fines, if necessary, until the amount meets Kindred’s annual gross profit from the country, which it has estimated to be NOK437m.

MaximBet set to expand to Iowa and Indiana

The brand was founded in April 2021 by Carousel Group and lifestyle brand Maxim, supported by a $50m investment commitment from the xSigma subsidiary of Chinese engineering business ZK International. It then launched in Colorado – its first US state – in September of that year.

Now, the brand has announced that Indiana and Iowa are set to be the next two states in which it will go live.

“Indiana and Iowa represent a prime opportunity for MaximBet to bring its world-class sportsbook and unparalleled real-life experiences to two of the most passionate sports markets in the country,” Daniel Graetzer, CEO of MaximBet, said.

Graetzer added that MaximBet customers would soon be able to experience the brand’s “kickoff parties” to announce its launch.

“Sports betting has been a boon for both states since 2019, but sports fans have never experienced anything like the MaximBet live parties, athlete and celebrity meet-and-greets, and in-person entertainment that MaximBet will bring to these two passionate sports states,” he said. “We can’t wait to show our new users in Indiana and Iowa what we have in store.”

The business has also secured market access deals in both Pennsylvania and Ohio, the latter of which has not yet launched legal sports betting.

MaximBet last year announced it would offer a wide-reaching Name/Image/Likeness (NIL) deal to all female NCAA college athletes in Colorado, though it has not announced whether the scheme will extend to these new states.

French survey claims spike in underage gambling harms since 2014

The survey, conducted by addiction research and treatment body Société d’Entraide et d’Action Psychologique (SEDAP) in partnership with Montreal’s Concordia University, conducted Zoom-based research with 5,000 teenagers, aged between 15 and 17 years old.

More than a third of those surveyed (34.8%) said they had gambled at least once in the past twelve months.

The proportion of gamblers aged 15 to 17 remained roughly steady when compared to the results of the 2014 survey, in which 32.9% of young people said they had gambled in the past year.

Of the number that claimed to have gambled in the past year, the report claimed that 12.9% were classed as moderate-risk gamblers, and that 21.9% of that sample were classed as excessive gamblers, based on the Canadian Problem Gambling Index (CPGI). This combined figure marked a significant increase from the 11.0% of moderate to excessive underage players recorded in 2014.

The CPGI is a screening metric that assigns players a score based on their responses to a series of 9 questions about gambling. Those with a score of between 0 and 2 are considered no or low risk, while those whose scores range from 3 to 7 are classed as at moderate risk. Anything above 8 on the CPGI denotes excessive play and unhealthy gambling habits.

Respondents highlighted three prevalent problems from gambling; looking to recover losses, betting more money than the individual could afford to lose, and needing to bet more money for the same excitement from playing.

Of the 1,740 youths aged between 15 and 17 that said they gambled in the past year, the average age for their first time doing so was 13 years and three months. The first gambling product they engaged with tended to be scratchcards, followed by lottery games, then betting on sports.

Money for gambling generally came from pocket money. Of the 1,740, 51.9% said they used pocket money to gamble, with a further 33.0% saying they received money from their mother that was used for gambling.

There was significant evidence of increased exposure to gambling advertising, with almost nine out of ten (86.8%) of underage gamblers saying they had read, seen or heard promotions. This was primarily through the media (46.5%), followed by social networks (35.2%) and at points of sales (32.3%).

The most widely seen ads were for local sports betting and poker operator Winamax, national lottery operator La Française des Jeux and its subsidiary brands, followed by Betclic, Pari-Mutuel Urbain, Zebet and PokerStars.

“Gambling is infiltrating more and more into the daily life of minors, relayed by advertising and by a certain complicity of parents,” said ANJ president Isabelle Falque-Pierrotin. “Whether online or in the in person, combating underage gambling is now a major public policy issue because, as we know, the earlier gambling begins, the greater the risk of addiction.”

“The ANJ is determined to utilise all its resources to fight against these practices, including issuing sanctions. It is crucial that all stakeholders, such as parents, gambling operators, social networks and public authorities, take action.”

SEDAP managing director Emmanuel Benoit added that those aged between 15 and 17 were at an “emotionally fragile” point in life, and could therefore be vulnerable to developing unhealthy behaviours.

The regulator launched a public consultation on gambling advertising back in September, which followed a warning from the regulator to operators about advertising levels in the wake of Euro 2020. ANJ’s annual review of responsible gaming action plans then warned there was “substantial progress” still to be made by the industry in that regard.

ANJ partnered with l’Union nationale des associations familiales (UNAF) in 2020 in an effort to help protect children and young people in the country from gambling-related harm.

FanDuel strikes content partnership with Boardroom

The deal will see FanDuel become Boardroom’s exclusive sports betting, fantasy, horseracing, gaming, casino and poker partner.

The collaboration will utilise FanDuel and Boardroom’s combined audiences, with content broadcast across web, video, audio, editorial and social media platforms.

The two companies will collaborate to create a show later this year. It will feature a weekly section of the “Boardroom Breakers” newsletter, which will display FanDuel’s latest odds, data, content and promotions.

In addition, both parties will collaborate on social media giveaways and other initiatives around sporting events, including odd boosts and fantasy contests.

“Content creation has always been a focal point for us as we bring our other premier real money gaming products to customers across the US,” said Mike Raffensperger, chief marketing officer at FanDuel Group.

“We’re excited to collaborate with the talented team over at Boardroom to bring our customers unique content, events, and more.”

The editorial team at Boardroom will also contribute monthly articles to FanDuel’s content site The Duel.

“The business of sports betting will continue to be a major force in the future of sports and being able to partner with FanDuel as the premier brand in the space is really exciting for Boardroom as we continue to build our business,” said Rich Kleiman, co-CEO of Boardroom and Thirty Five Ventures.

“We’re looking forward to making some incredible content and extending this partnership well into the future,”

Full House Resorts appoints Ferrucci as first COO

As COO, Ferrucci will oversee operations at Full House Resorts’ network of casinos across the US. He will also continue to serve as general manager of Silver Slipper Casino Hotel in Hancock County, Mississippi,

Ferrucci began his career at Harrah’s Atlantic City as a table games dealer, working his way up to become a casino credit executive. He went on to serve as casino manager for Lucayan Beach Resort and Casino in the Bahamas before moving to Mississippi, where he opened the Grand Casino in Gulfport and the Grand Casino in Biloxi. 

In 1996, Ferrucci became general manager of the New Palace Casino in Biloxi and later returned to the Northeast to develop and open a Native American casino.

In 2000, Ferrucci was appointed vice president and general manager of Casino Magic Biloxi, before Ferrucci joining the development team at the Silver Slipper site in 2004, working with architects, engineers and designers to help develop and open the facility in 2015.

“I’m pleased to promote John Ferrucci to our new role of chief operating officer,” Full House president and chief executive Daniel Lee said. “Under his leadership, the Silver Slipper has reached new levels of profitability. He has helped develop talent throughout our company, including acting as a mentor for the general managers of Bronco Billy’s and Rising Star.”

Meanwhile, Full House provided an update on American Place project in Waukegan, Illinois. 

In December, the Illinois Gaming Board approved a proposal from Full House to develop and open a new land-based casino in Waukegan, ahead of an original five pitches submitted in response to a request for proposals launched in 2019.

Full House recently agreed to purchase approximately 10 acres of land adjoining the 30-acre casino site to be leased from the city, providing space for additional parking and access to the casino site from a major road.

The operator also agreed to purchase a Sprung tent structure to house a temporary casino at American Place, which will operate while the permanent facility is under construction. ‘The Temporary by American Place’ will feature approximately 1,000 slot machines, 50 table games, three restaurants, and a main bar. 

Subject to customary gaming approvals, The Temporary is scheduled to open this summer.

The update comes after Full House earlier this month closed a private offering of $100.0m to fund the temporary casino project.

Washington DC sports betting handle hits six-month low in January

The amount wagered by players was 18.5% higher than in January 2021, but was 3.6% down from $19.3m in December last year and the lowest monthly amount since $12.4m was bet in August 2021.

Sports betting revenue for the month amounted to $2.0m, which was up 5.3% year-on-year and also 42.9% higher than in December 2021.

Gambet, operated by the DC Lottery and powered by Intralot, retained top spot in January, taking $5.7m in bets and paying out $4.8m in winnings, suggesting $952,919 in revenue for the month.

Caesars, which operates an online mobile sportsbook and a retail sportsbook at the Capital One Arena, was second with $694,905, despite a higher handle of $9.2m.

BetMGM, active in DC via a partnership with Major League Baseball team the Washington Nationals, was next with $243,695 in revenue off $3.1m in total bets.

Grand Central Restaurant, Bar and Sportsbook, which offers sports betting in DC through a partnership with Elys Game Technology, followed with $70,738 in revenue and a handle of 597,353.

Looking at the fiscal year to date, during the four months to the end of January, players bet a total of $85.6m on sports in DC, with revenue amounting to $9.4m.

Caesars led the way with $5.2m in revenue off a $53.5m handle, ahead of Gambet, which took $21.5m in bets and paid out $18.2m, suggesting $3.3m in revenue.

BetMGM followed with $537,807 in revenue and $8.6m in player bets, then Grand Central with $272,461 in revenue and a $2.0m handle.

The six-month low figure comes as a number of other states – such as New JerseyIndiana and Michigan – have hit record highs.

BetMGM scores strategic partnership with SportsGrid

Under the agreement, BetMGM content will be integrated across SportsGrid’s original, live programming, supported by television and social media advertising.

Content will include BetMGM’s brand, odds and promotions, while SportsGrid will also have access to BetMGM’s trading team and brand ambassadors to create insider content for its network.

“SportsGrid is making big waves in the streaming world, creating a new avenue for fans to consume sports betting content,” BetMGM chief executive Adam Greenblatt said. “This collaboration allows us to further expand BetMGM’s reach to our fans through SportsGrid’s nationwide broadcast network.”

SportsGrid co-founder and president Louis Maione added: “We are proud to deliver real-time BetMGM data and intelligence to millions of sports fans. This relationship with a recognized leader in the industry helps us better super-serve the gaming community and further cements our position as the premier sports gaming and lifestyle network.”

The deal comes after BetMGM earlier this month opened a retail sportsbook at Nationals Park, making it the first sportsbook connected to a Major League Baseball (MLB) stadium.

In December, BetMGM also opened a sportsbook at the MGM National Harbor in Maryland following the launch of legal sports betting in the state.