BetMGM launches inaugural regulated Puerto Rico sports betting platform

As of today BetMGM is accepting wagers at the San Juan-based resort through 12 betting kiosks and five betting windows. BetMGM also plans to open a retail sportsbook in addition to launching a mobile app later in the year.

The operator first entered into its strategic partnership with Casino del Mar back in September 2021, with a view to executing today’s sports betting launch.

BetMGM CEO Adam Greenblatt said: “This is a monumental day for BetMGM as it marks the launch of our first operation outside of the US mainland. Casino del Mar delivers exceptional guest experiences and is an ideal partner as we look to extend our brand in Puerto Rico.”

The sports betting launch forms the latest part of Puerto Rico’s expansion of its gaming industry.

Foxwoods recently partnered with the Mashantucket Pequot tribe to open the Foxwoods El San Juan Casino at the Fairmont El San Juan Hotel.

Sigfrido de Jesús, Casino del Mar’s general manager, added: “We are very excited to kick off sports betting at Casino del Mar through this important strategic alliance with BetMGM. In Puerto Rico, there is a wide base of sports fans who will now add the possibility of becoming winners to the excitement of their favorite sports games and matches.”

Iowa sports betting handle doubles year-on-year in January

Amounts wagered for January was up 102.9% from January 2021’s $149.5m total figures from the Iowa Racing and Gaming Commission show.

This was driven entirely by mobile betting, with customers staking $275.9m during the month, a 128.4% jump. 

Retail, on the other hand, actually declined from January 2021, with stakes down 4.5% to $27.5m. 

Caesars led the way in terms of handle, with customers staking $112.7m through its mobile sportsbook, setting it ahead of DraftKings which reported $68.9m in mobile stakes, and FanDuel on $44.1m. 

For retail, it was the FanDuel sportsbook at the Diamond Jo Worth Casino that led the way, with $8.7m staked. Penn National’s Ameristar II in Council Bluffs followed with customers wagering $5.4m at its Barstool Sportsbook, and the Caesars Sportsbook at Horseshoe Casino Council Bluffs on $3.9m. 

From the statewide handle of $303.3m across all channels, players won back $289.1m, leaving gross revenue of $14.3m for January. This marked a 25.8% improvement from the prior year, with almost all revenue ($12.0m) generated online, and just $2.3m from retail betting. 

GiG extends platform deal with Betsson

The partnership sees GiG provide its platform and managed services to Betsson, which include customer service provisions, and supports Betsson’s Rizk, Guts, Kaboo and Thrills brands.

The deal was first struck in 2020, when Betsson acquired GiG’s B2C subsidiary Zecure Gaming in a €33.0m deal, and was initially set to see the technology power the brands for 30 months. As a result of the extension GiG will also power Betsson’s launch into a number of new markets.

“We are extremely pleased to extend our partnership with Betsson Group for the coming years,” GiG chief executive Richard Brown said. “It has been a key internal target as part of our transition into a pure B2B focus over the last 18 months.”

“The partnership will support and help to drive the two businesses’ growth in existing and new markets, increasing the diversification and market opportunities for both Betsson and GiG.”

Last month GiG struck a marketing compliance partnership with Matching Visions, a business recently acquired by super affiliate Acroud.

The supplier has also significantly enhanced its sportsbook solution through December 2021’s acquisition of Sportnco, which Brown noted would significantly accelerate its re-entry to the vertical.

GiG gears up to Tier 1 with Sportnco deal

Martin Collins became director of sales and business development last year, heading up the sales, business development and marketing team. He joined GiG in 2019 as director of talent acquisition, before being promoted to director of business development. He has over two decades experience working within digital markets, 12 of which have been spent within the gaming sector.

GiG entered 2022 on a wave of optimism after sending a bold message of intent regarding its ambitions for its B2B business with the pre-Christmas announcement of a deal to acquire Sportnco Group for an initial €50.8m.

The acquisition follows a period during which GiG’s media services division has been the primary growth driver for a business which made a wholesale pivot to B2B in the wake of the disposal of its B2C assets to Betsson in early 2020. According to GiG’s director of sales and business development Martin Collins, the acquisition will have two major impacts on GiG’s B2B arm.

“Firstly, it massively improves our sports capability. In 2018, we launched GiG sports with some fairly prominent bands across various markets. However, sports was never our primary focus and therefore, the challenges of the market ensured we did not grow at the rate we would have liked.  

“We now have a tier one sportsbook in our portfolio that operates in Western and Southern  Europe, the US and Latin America which means we can confidently offer a premium end-to-end scenario including sports, which we’ve not been able to do properly in the past with GiG sports.”

“The second element comes down to our ability to be active in more regulated markets. If you look at our portfolio prior to the acquisition, we had 12 regulated markets at GiG, and we plan to add 5 additional markets in 2022. Now, with Sportnco we’re up to 25 – and we have a further ten, which will take us up to 35 by the end of the year.”

Therefore GiG is now a “naturally compelling choice for any sports or casino-led brand wishing to expand quickly into new markets”, says Collins.This could range from local brands with specific regional identities to existing online businesses who want to drive more revenue into other markets. 

“It’s really difficult for any brand to enter multiple markets in a year. Believe me when I say, we understand the complexity. Indeed, that is why we have positioned ourselves in such a way, post acquisition. We are trying to deliver a tech solution in line with one of the industry’s key challenges and become a key to their success” he says.

Acquiring market leaders 

Collins emphasised the importance of viewing Sportnco as a multifaceted business due to its acquisition of Tecnalis together with its Alira player account management platform 12 months prior GiG’s deal for Sportnco being announced in December.

“It’s really important to understand that Sportnco offers two platform solutions because of Tecnalis. The Sportnco PAM that accompanies the Sportnco sportsbook is focused on the French-speaking markets, such as France and Belgium. Tecnalis, by contrast, has a strong presence in  Spanish-Latin-speaking markets.”

Collins explains that the combination of Sportnco, Tecnalis and GiG has created “a perfect synergy” which is mutually beneficial for the platforms now making up the combined business

“Tecnalis is a great addition to GiG, already being prolific in Colombia and active in Peru, Brazil, Chile, and Paraguay. They’ve also got potential deals in the pipeline in Mexico and Jamaica. They have infinitely more access to the Latin American market than we do, and perhaps more importantly, their platform has been built specifically to accommodate those in Southern Europe and Latin America.”

Addressing the larger market

Collins is confident that through addressing the larger market with this regional platform focus, GiG will not only create attractive commercial, operational, and technological synergies, but also deliver cost savings and accelerated growth. “The acquisition has essentially increased our addressable markets from 12/15 to an estimated 35 jurisdictions by the end of the year”, he says.

With the transaction expected to close in the coming weeks, the hard work behind the scenes at GiG to unleash the full potential of this landmark deal over the next 12-18 months is now underway, Collins reveals.

“Our focus is to first identify and solidify the synergies that we have and then start to deliver these across the global markets. This will start with the commercials but also working on our technical and operational synergies with a view to bringing all of those together over the next 12 to 18 months, in order to take full advantage.”

Betsson matches FY revenue record in 2021 despite Q4 challenges

Revenue for the 12 months to 31 December 2021 reached SEK6.67bn (£540.6m/€640.5m/$731.7m), a 4.4% year-on-year increase from 2020’s SEK6.39bn. This was aided by its expansion into new markets, strategic acquisitions, new product launches, and its ability to adapt to regulatory headwinds, the operator said.

Casino remained Betsson’s primary source of income, with revenue from the vertical amounting to SEK4.84bn. Sportsbook revenue reached SEK1.75bn, while other revenue from products including poker and bingo came to SEK85.4m.

Betsson’s operations in the Central and Eastern Europe and Africa region contributed the most revenue during the year, with the SEK2.15bn recorded just ahead of SEK2.11bn from the Nordics.

Western Europe revenue reached SEK1.34bn, while Rest of World revenue was SEK1.07bn.

This growth was aided by a number of acquisitions. In April Betsson purchased a 50% stake in JDP Tech, a software development business that owns a proprietary technology platform for handling payments in Latin America.

That month Betsson also acquired a 35% stake in TG Lab’s Strive Platform, in a strategic venture aimed at supporting its expansion plans in the North American market, while in August it purchased 28% of Canadian start-up Slapshot Media Inc.

In addition, the group’s SW Nordic Limited subsidiary completed its acquisition of the B2C online gambling business of Latin American sportsbook and casino operator Inkabet in October.

Growth was also driven by the operator’s expansion into new markets, having in March secured an online sports betting licence from the Regional Council of Darmstadt, granting it access to the German market.

Betsson also expanded into a number of other territories. It secured a licence in Greece, went live in Mexico through a partnership with local land-based operator Big Bola Casinos and launched its Europebet brand in Belarus.

This was followed by its launch in Argentina after the year-end.

However, this expansion was offset by its withdrawal from the Dutch market. It was one of the high-profile names to announce it would cease operating in the Netherlands, ahead of the country’s igaming market opening on 1 October.

“For Betsson, 2021 ended up a record year in terms of revenue and a result that matches the record result from 2018,” Betsson chief executive Pontus Lindwall said.

“In 2021, Betsson’s offering has been launched in several new markets, the company has made several strategic acquisitions, developed its offering, and implemented adaptations in response to regulatory changes.”

Looking at costs for the year and operating expenses grew 5.0% to SEK3.12bn, though financial expenses remained level at SEK56.8m. This meant pre-tax profit increased 6.4% to SEK1.14bn, while earnings before interest, tax, depreciation and amortisation (EBTIDA) was 5.1% higher at SEK1.56bn.

Betsson paid SEK82.5m in tax, leaving a net profit of SEK1.05bn, up 6.4% year-on-year.

The year ended on what Lindwall and Betsson described as a “challenging” fourth quarter. For the three months to 31 December, group revenue was down 9.5% year-on-year to SEK1.59bn, partly due to a low sportsbook margin in October, unfavourable football results and the Dutch withdrawal.

Casino revenue declined 9.2% to SEK1.17bn in Q4, while sportsbook revenue slipped 11.4% to SEK406.7m, the lowest quarterly total for a number of years. However, other revenue from products such as poker and bingo climbed 15.2% to SEK22.8m.

Operating costs were 2.1% lower at SEK778.1m though finance expenses were up 47.0% to SEK16.9m. The revenue decline meant pre-tax profit fell 36.8% to SEK193.7m, while EBITDA also declined 25.1% to SEK207.5m.

After paying SEK4.5m in tax, this left a net profit for the quarter of SEK189.2m, a year-on-year drop of 31.9%.

“2021 was another year where we could see the importance of a strong global and diversified product portfolio featuring local expertise and strong brands,” Lindwall said. “The year 2022 will entail continued investments both in technology and the existing product portfolio. 

“A scalable and flexible technical platform combined with highly competent employees and strong commitment create the right conditions for taking full advantage of Betsson’s business model.”

Incidentally, Lindwall had been expected to leave the business late last year, but the board reversed its earlier decision. Lindwall announced his exit in September with Betsson at the time saying he had “completed” his goals in the role.

However, due to his handling of Lindwall’s exit, former chair Patrick Svensk then announced his resignation after a no-confidence vote.

MGM Resorts returns to profit in 2021 as revenue rockets 87.5%

Revenue for the 12 months to December 31, 2021 amounted to $9.68bn (£7.14bn/€8,47bn), up 87.5% from $5.16bn in the previous year.

As Covid-19 controls were rolled back across the US, more customers were able to visit MGM’s casinos in 2021, as well as make use of other on-site facilities such as hotels, shops, bars and restaurants.

As such, casino revenue increased 86.8% year-on-year to $5.36bn, while rooms revenue was up 103.5% to $1.69bn.

Food and beverage revenue jumped 99.9% to $1.39bn and entertainment, retail and other revenue was up 94.6% to $1.01bn. MGM also noted $226.1m in reimbursed costs.

Breaking this down by geographical performance, MGM’s operations on the Las Vegas Strip in Nevada generated $4.74bn in revenue, a rise of 110.9% on the previous year.

Revenue from regional operations also climbed 72.5% to $3.39bn, while MGM China revenue was up 84.4% to $1.21bn and management and other operations revenue 16.2% to $339.8m.

Looking back over the year, MGM began 2021 by withdrawing its interest in making a bid to acquire Entain. MGM had submitted a proposal for an all-stock deal in January 2021, which valued Entain at approximately $11.00bn, but this was rejected by Entain, saying that it “significantly undervalued “the business. 

MGM said that after careful consideration and reflection, it opted against a revised bid, or making a firm offer.

Later in 2021, DraftKings submitted a proposal for a stock-and-cash deal to acquire Entain, with its revised proposal valuing the business at $22.40bn. At the time, MGM said that it had no intention of selling its stake in BetMGM, which it runs as a joint venture with Entain.

DraftKings in October confirmed it would not be following up its interest in acquiring Entain.

Other developments in 2021 included MGM in September taking over operations of The Cosmopolitan in Las Vegas, after private equity giant Blackstone told the property for $5.65bn. MGM paid $1.63bn to operate the casino, while Cherng Family Trust, Stonepeak Partners and Blackstone Real Estate Income Trust (BREIT) now own the property.

Also in September, the Japanese prefecture of Osaka selected a consortium led by MGM and financial services business Orix – the only bidders in the process – to build an integrated resort in the prefecture. In its bid documents, MGM and Orix said the initial investment in the project would come to JPY1.8trn.

Later in the month, MGM also announced the closing of its purchase of Infinity World Development Corp’s 50% interest in CityCenter Holdings for $2.12bn. CityCenter Holdings – a project from MGM and Infinity World – owns the CityCenter Las Vegas development, which includes the Aria resort, Vdara hotel and the residential Veer Towers.

In addition, shortly after the year-end, MGM announced it would launch a reimagined and rebranded loyalty rewards programme, which it claims will offer “unprecedented” access and new benefits to guests at its properties across the US. The program went live on February 1.

“The strategic milestones we achieved in 2021 position us for further success in 2022, and we remain excited about our long-term opportunities including: leading the US sports betting and igaming market through BetMGM, pursuing disciplined geographic expansion such as the Japan integrated resort, and reinvesting in our core business to drive sustainable growth,” MGM president and chief executive Bill Hornbuckle said.

“As part of these efforts, we are proud to have recently launched our new loyalty program, MGM Rewards, which offers an enhanced and further streamlined experience to millions of our members worldwide.”

In terms of spending for the year, total operating costs amounted to $7.49bn, a year-on-year increase of 28.0%. After including $84.8m in profit from unconsolidated affiliates, MGM’s operating profit came to $2.28bn, compared to a $642.4m loss in 2020.

Financial expenses of $816.9m meant pre-tax profit reached $1.46bn, a significant improvement on the $1.51bn loss posted at the end of the previous year.

MGM paid $253.4m in income tax but also received $46.0m in profit from non-controlling interests, meaning net profit for the year amounted to $1.25bn, compared to a $1.03bn loss in 2021.

Turning to the fourth quarter, MGM closed 2021 with a record performance. Revenue was up 104.6% on 2020 figures at $3.08bn.

Casino revenue in the three months to 31 December hiked 63.7% to $1.58bn, room revenue jumped 235.9% to $636.1m, food and beverage revenue 259.6% to $515.0m, entertainment, retail and other revenue 273.7%% to $369.6m, while reimbursed costs totalled $8.3m.

Operating costs increased 44.7% to $2.68bn, while after accounting for an $8.0m loss from unconsolidated affiliates, operating profit was $368.8m, compared to a $363.6m loss in Q4 of 2020.

Financial expenses were $221.6m, leaving a pre-tax profit reached $147.2m, up from a loss of $562.9m in 2020. Income tax payments totalled $31.2m and after including $14.9m in profit from non-controlling interests, net profit for the quarter was $131.0m, compared to a $447.6m loss in 2021.

“Our record fourth quarter results are a testament to our talented team across the globe, our sharpened focus on operational efficiency and the proven resiliency of demand for the service and experiences that we provide at MGM Resorts,” Hornbuckle said.

Zynga beats revenue targets in 2021, as Take-Two takeover nears

Revenue for the 12 months to December 31, 2021 was 41.8% higher than the $1.98bn posted in the previous year, also beating the business’ projections by 0.8%.

Online games remained the primary source of revenue for the business, with revenue amounting to $2.25bn, up 34.9% year-on-year. Advertising and other revenue also increased 79.2% to $551.3m.

Zynga also noted that bookings – which adds deferred revenue to the total – for the year reached a record $2.83bn, up 24.5% on last year and also 0.4% ahead of guidance for the 12-month period.

Average mobile daily active users were 37 million, up 3% year-over-year, while average mobile monthly active users reached 184 million, an increase of 38% on the previous year.

The group completed a number of acquisitions throughout the course of 2021 including the purchase of Chartboost for a total purchase price of approximately $250.0m in August.

Zynga also acquired mobile games developer StarLark from Betta Games for $525.0m in October, while in November, the group’s Rollic,Turkish games developer subsidiary purchased mobile game studios ByteTyper, Creasaur Entertainment and ZeroSum.

Last month, Zynga itself became the target. Video games giant Take-Two Interactive agreed to purchase the business in a deal that values Zynga at $12.7bn.

Take-Two, which owns Grand Theft Auto publisher Rockstar and 2K Games, developer of the NBA 2K series, expects to complete the purchase by June this year.

Looking at costs, Zynga’s total expenses for the year were 17.1% higher at $2.75bn, leaving an operating profit of $55.8m, compared to a $370.2m loss in the prior year.

While interest and financial costs of $64.0m pushed Zynga to a pre-tax loss of $8.2m, this was a significant improvement on the $405.4m loss posted at the end of 2020.

Zynga also paid $96.0m in tax, meaning that it ended the year with a net loss of $104.2m, compared to the $429.4m loss reported at the end of 2020.

Focusing on the fourth quarter of the year, revenue amounted to $695.4m, a new record for the business and a 12.9% increase from $616.0m in 2020. Online games revenue was up 7.1% to $534.0m, while advertising and other revenue climbed 37.5% to $161.4m.

Bookings for the three months to December 31 were also up 4.0% year-on-year to $727.0m.

Total costs and expenses increased 8.3% to $696.7m, leaving an operating loss of $1.3m, compared to a $27.5m in Q4 of 2020. Interest costs of $23.8m meant pre-tax loss for the quarter was $25.1m, an improvement on the $46.9m loss posted in the previous year.

Zynga paid $42.1m in tax during the quarter, leaving a net loss of $67.2m, compared to a $53.0m in the same period of 2020.

“Our strong Q4 results capped off our record 2021 performance where we delivered our highest annual revenue and bookings ever, while reaching the largest mobile audience in Zynga history,” Zynga chief executive Frank Gibeau said.

“I am proud of our team’s execution across all aspects of our growth strategy including live services, new game development and investments in our advertising platform, new markets and technologies to solidify Zynga as a leading mobile-first, free-to-play live services company.”

Modern day threats to sporting integrity

In 2021, sports betting data provider Sportradar detected a record 900 suspicious matches across 10 different sports – a 30% increase on the 692 identified the year before.

While suspicious matches don’t necessarily indicate foul play, the steep rise in the number of alerts is clearly a cause for concern. “That tells you what you need to know in terms of in which direction the problem is going,” says Tom Mace, director of global operations at Sportradar Integrity Services.

“As far as we’re concerned, the levels of match fixing were increasing in 2021 – and that’s going to continue in 2022.”

Mace adds that a greater diversity of match-fixing threats could exacerbate the issue in the coming year. Outside of traditionally targeted sports such as tennis, the likes of ice hockey, cricket, basketball, volleyball and esports have all seen increased suspicious activity over the last year.

In sports with more established betting markets, manipulation in betting patterns is starting to appear more frequently at the lowest levels.

In football, the fixers are moving further down the league pyramid. “About 40% of all suspicious matches we detected came from the third tier or lower,” Mace says, “which is quite concerning when you consider the types of players playing at this level.

“What’s the level of integrity protection afforded to these competitions?”

He points out that the elite level of the game is very well protected, with Sportradar monitoring the top two divisions on behalf of Fifa globally. The top tier competitions also have integrity infrastructure built around them, such as dedicated reporting structures and educational programmes.

“But currently, that’s certainly not reflected the further down the league system you go,” Mace adds. “In England, for example, you can bet down to the 10th division, which is little more than park football.”

This is not an issue that can simply be addressed by shutting off betting. Mace’s colleague Andreas Krannich has previously warned against such an approach, saying this would only push betting activity offshore, and make it harder to investigate potential corruption.

Instead, more focus on making sure the individual athletes are aware of the consequences of manipulation, and how to avoid approaches from the fixers, is required.

Individuals at risk

While sports governing bodies are afforded significant protection to threats against sporting integrity, the athletes themselves will always be the most vulnerable.

“One thing I think is guaranteed is that athletes and sports people will continue to be more exposed than ever to match-fixing approaches, primarily on digital media, social media platforms and the like,” adds Mace.

In the last few months of 2021, for example, Sportradar saw an increase in athletes being approached on social media platforms to fix matches.

“We already know that in the last 18 months, some of these random approaches on social media have turned out to be fixed matches and have been prosecuted as such,” Mace says.

In his view, two things need to happen to tackle this issue. First, sporting bodies need to pay greater attention to the problem and second, athletes need to be better informed on the dangers posed by match-fixing – and by social media.

It may be a beneficial tool for athletes to connect with their fans, but social media also carries the risk of exposure to approaches, he explains. This has seen Sportradar roll out educational resources, to make athletes aware of the ways they may be targeted on social media. Launched in February last year, they followed the release of a monitoring service to protect athletes from abuse on social channels, with online harms increasingly falling into the integrity remit.

But match-fixers on the lookout for new ways to gain an advantage in the betting market, governing bodies and data suppliers have a sizeable task to ensure they stay one step ahead.

The fight against doping

And as the fixers develop to crack into different markets, the industry itself is fighting back in kind by casting its net wider to deal with different integrity threats.

Mace says Sportradar launched its anti-doping services in 2019 after realising that the company’s intelligence capabilities could be very useful in the sector.

“Anti-doping is relatively well funded compared to anti-match fixing,” he explains. “The national anti-doping agencies and support bodies were not very technologically advanced when it comes to how they’re running their investigation, which is why the idea of anti-doping services came about.

“More recently we’re using our strong tech background and focus in Sportradar, in addition to developing remote testing products, to help the anti-doping fight.”

There are other methods the company is using to bolster its defences against match-fixing. It is increasingly using artificial intelligence (AI) in its bet monitoring practices to try and discern suspicious betting patterns more accurately.

“We’re not only monitoring the data in particular matches that take place, we’re actually trying to harness the power of the historical data, so that we can actually understand and learn from the prior matches and suspicious instances that we detect,” says Mace. “We then start factoring these sort of things into our models and algorithms so they become smarter.”

Protecting the biggest tournaments

As Mace outlines, the threat tends to be highest either for individual athletes, or the lower end of the sporting pyramid.

This means for the year’s major events, there is potentially less at stake. The Africa Cup of Nations has just reached its conclusion, while the Winter Olympics is currently in full swing. And, of course, the 2022 Fifa World Cup kicks off in Qatar, in November.

He argues that although every tournament attracts a certain risk of match-fixing, the relative wealth of the players taking part in the World Cup may mean fewer attempts at fixing games. Being well off, the players may lack the incentive to do something so risky.

“The World Cup is in many respects low-risk because most of the players that are going to be there are going to be mega rich to the top of their game,” Mace says. 

“There’s going to be more scrutiny from the media and the public on the World Cup than any other competition in the world. On the flip side, it’s also by far the biggest betting event in global football, and there’ll be many hundreds of millions bet every single match in the World Cup.

“From the fixer’s perspective, the liquidity and the volumes in the market will present a risk. It’d be a fixer’s dream to manipulate a match in the World Cup just because of the volume, but in practice, that is going to be on the lower end of the risk scale because it’s also one of the most protected events.”

Collaboration will play a key part in protecting against integrity threats. Information sharing is vital, with data analysts like Sportradar, betting operators and sporting governing bodies relying on the information provided by all parties involved. Mace notes that governing bodies have come a long way in the last decade when it comes to identifying such threats, but more work still needs to be done.

“Compared to 10 years ago it’s a major improvement,” he says. “If we look at where we were 10 years ago, it was really a small number of governing bodies invested in things like bet monitoring.

“We first started working with UEFA in 2009, they were the first to do a systematic monitoring of their competitions. Thankfully the monitoring is accepted as more or less standard now. There’s not many sports now that don’t recognise that integrity is an issue and that don’t assign a good amount of budget and resource to it.”

While the level of protection has grown significantly there is a pressing need for more progress, Mace argues. As some tactics and avenues are cut off, fixers move to other, less protected areas. “So we need to make sure that all sport should be monitored, not just the top levels of competition,” he adds.

As betting markets have become more extensive, ways to exploit them have become more sophisticated in kind. The regulated gambling market has a task on its hands to ensure that the situation stays under control.

Sportsbet ordered to pay AUS$3.7m over unlawful spam

The AU$3.7m figure comprises an infringement notice of AU$2.5m – a record sum – and the operator committing to refunding customers AU$1.2m.

The settlement was agreed following an investigation by the Australian Communications and Media Authority (ACMA), which found that Sportsbet sent more than 150,000 marketing text messages and emails to over 37,000 consumers who had tried to unsubscribe. 

Sportsbet was also found to have sent over 3,000 marketing texts that had no unsubscribe function available to consumers.

The texts and emails, sent between January 2020 and March 2021, offered either incentives to consumers to place bets or contained alerts about upcoming horse races.

ACMA chair Nerida O’Loughlin said both the scale and duration of Sportsbet’s conduct was concerning, particularly given the potential harms involved with gambling, and as such warranted the record penalty.

“We received complaints from people stating they were experiencing gambling-related problems and were trying to manage the issue by unsubscribing from Sportsbet’s promotions,” O’Loughlin explained.

“Sportsbet’s failures in this matter had the real potential to contribute to financial and emotional harm to these people and their families.”

The ACMA also accepted a three-year, court-enforceable undertaking from Sportsbet, under which the operator will be appointed an independent arbiter to oversee a wide-scale compensation program to refund customers who lost money on bets made associated with the spam. This, ACMA said, is expected to total approximately $1.2m.

Sportsbet will also need to appoint an independent consultant to review its procedures, policies, training and systems, as well as implement recommendations made as a result the audit.

“The ACMA contacted Sportsbet on several occasions leading up to the investigation to let the gambling provider know it may have compliance problems and it failed to take adequate action,” O’Loughlin said.

“Sportsbet is a large and sophisticated company which should have robust systems in place to comply with spam laws and protect the interests of its customers. We will be actively monitoring Sportsbet’s compliance and the commitments it has made to the ACMA.”

The record penalty notice means that over the past 18 months, businesses have paid nearly $3.4m in infringement notices issued by ACMA, for breaking spam and telemarketing laws

ACMA also accepted 13 court-enforceable undertakings during the same period and issued seven formal warnings to businesses.

The news comes after Sportsbet in November last year was also fined $135,000 by Liquor and Gaming New South Wales for showing advertisements with an inducement to bet and marketing to players who had opted out of receiving email communications.

The operator sent multiple emails from October 2020 to March 2021 to customers who had withdrawn consent to receive direct marketing. 

Esports Technologies begins 2022 fiscal year with $7.1m in Q1 revenue

Limited figures released by the operator showed gross profit for the three months to 31 December 2021 came to $2.5m, which it credited to an especially strong performance in December.

Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) was negative $3.9m, while net cash for operating activities totaled $3.0m.

The company was also able to increase its cash position to $11.8m, a $2.8m increase when compared to the end of the previous fiscal year on 30 September 2021.

The quarter also saw Esports Technologies complete its $75.9m acquisition of Aspire Global’s B2B assets, a deal that was first agreed in October 2021.

This led to the company obtaining a licence to operate in Great Britain, giving it access to regulated markets such as Germany, Ireland and Denmark, and 1.25 million depositing customers.

Earlier this year, Esports Techonlogies set a revenue target of $70m to be achieved by the end of September 2022.

“We’re very pleased with what we’ve accomplished during our first quarter of 2022, as we have taken significant strides in achieving our goal of being the leader in Esports wagering and technology,” CEO Aaron Speach said.

“Our vision is to provide unique wagering experiences to the 550 million underserved Esports fans from around the world.”

Esports Technologies has added to its product range by filing patents in the last few months. A patent for an electronic sports betting exchange system was filed in November, followed by a patent for financial instrument betting in January.

Chief financial officer Jim Purcell added: “I feel we now have a business of scale, which should be a platform to leverage our future growth.

“We’re also happy with our proposed acquisition results as we’re operating the business to what we expected and within plan. This execution gives us confidence that we’ll achieve our state goal of $70 million for our fiscal 2022.”