Month: March 2022

This total, the National Competence Centre for Gaming Research said, represented just under half of the Norwegian regulated market’s annual net revenue.

In order to calculate the cost of gambling harm in Norway, the Centre conducted a “cost-of-disease analysis”. It said that the expenses it looked into are divided into direct costs, including the cost of gambling harm treatment services and indirect costs indirect costs such as the loss in production due to the effects of harmful gambling. The study also considered intangible costs, such as the emotional impact of gambling harm for family members.

The report noted that a 2019 study of gambling harm conducted by the University of Bergen found that 63% of Norwegians had gambled that year.

Using the Canadian Problem Gambling Index, it classed 50% of the population as being at no risk of harm, 8.8% as low-risk. However, 3.1% were considered to be at medium-risk and 1.4% were classified as problem gamblers. The percentage of citizens classed as problem gamblers using the scale was up from 0.9% in 2015.

This means some 524,000 Norwegians would be classed as being at some form of risk, including 55,000 high-risk gamblers.

Looking at direct costs, the study said that gambling harm directly leads to costs of NOK822.8m. 

The Competence Centre said that problem gambling treatment costs came to NOK157.5m, plus a further NOK168.5m to treatment of the consequences of problem gambling and NOK4.9m to gambling-harm nonprofits.

The largest direct costs by far, however, was recruitment, with costs in this area coming to NOK321.7m. This was mostly linked to replacing personnel who lost their jobs due to gambling-related reasons, with the assumption that 1,320 Norwegians at a given time are unemployed because of gambling harm.

The Centre added NOK38.2m in budgeting and debt advice costs, plus NOK27.8m in police costs, NOK29.6m in court costs and NOK20.4m in prison care. The study noted that as Norwegian data on the portion of criminal charges that are linked to gambling harm was not available, it used a study from Australia and adjusted for Norwegian crime rates.

In addition, NOK12.1m was attributed to prevention and treatment, plus NOK19.1m for regulation.

Indirect costs of gambling harm were significantly higher, however, at NOK2.43bn. Lost production related to unemployment made up NOK891.9m, while lost production due to sick leave and other absences made up NOK464.5m and NOK103.4m, respectively.

Production losses related to gambling-linked premature suicides came to NOK891.8m, based on 51 suicides with a median age of 32.5.

Costs related to lost production due to imprisonment came to NOK18.5m, while for disability this was NOK56.1m.

Finally, the study calculated NOK1.89bn in intangible costs. Of this total, NOK1.27bn was related to friends and family, while NOK618m was related to the gamblers themselves.

For intangible costs from the player’s perspective, NOK127.3m was related to the effects of violence, while NOK153.0m to mental health, NOK116.0m to divorce or seperation and NOK106.0m to unemployment. In addition, NOK16.9m was linked to suicide attempts.

Meanwhile for affected others, intangible costs related to mental health came to NOK342.8m, while for violance there were NOK285.2m and for divorce or separation NOK260.5m. For unemployment, intangible costs to friends and family were NOK237.4m, while costs related to suicide attempts were NOK37.8m and premature death NOK2.5m. Costs related to being the victim of crime were NOK205.7m.

As a result, the total cost to society was calculated as NOK5.14bn.

“These are serious numbers,” Henrik Nordal, department director at regulator Lotteritilsynet said. This illustrates that problem gambling is a public health problem, and that it is absolutely necessary to protect vulnerable players.”

Using the estimate of 55,000 problem gamblers, the study noted that this would be a cost of NOK93,548 per player.

Alternatively, it said, the total could be considered 0.14% of Norway’s gross domestic product or just under half of the regulated Norwegian market’s net revenue in 2019.

“The final estimate of NOK5.14bn emphasises that problem gambling constitutes a significant cost to society,” the study said. 

It went on to note that given the calculated figure was much larger than the amount spent on problem gambling prevention, more should be devoted to this area as it could potentially lead to greatly reduced spending elsewhere.

Nordal went on to say that the study backed up the country’s regulatory structure, in which Norsk Tipping and Norsk Rikstoto are the only two licensed operators.

“We have the strictest regulation of the games that potentially create the greatest damage,” Nordal said. “Although the report does not cover individual games, it shows that it is the right approach.

“The report shows that it is important to continue the work of preventing illegal gambling companies from reaching Norwegian customers.”

The study also noted that in the 2019 survey, the median self-reported annual spend for recreational gamblers using Norway’s regulated gaming monopoly was NOK2,866, compared to NOK4,610 for low-risk players, NOK8,078 for medium-risk players and NOK31,079 for those classed as problem gamblers.

Looking at unlicensed sites, meanwhile, the median recreational player spent NOK114 and low-risk players NOK704, but medium-risk players spent NOK3,183 and problem gamblers NOK13,438.

Looking at the combined figures, the spending represented 0.5% of annual income for recreational players, 1.0% for low-risk players, 2.8% for medium-risk players and 11.5% from problem gamblers.

Taking these numbers and the problem gambling prevalence figures, the National Competence Centre for Gaming Research estimated how much revenue the regulated and unregulated sectors made from at-risk gamblers.

It calculated that regulated operators receive NOK1.71bn from problem gamblers, NOK985.5m from medium-risk players, NOK1.60bn from low-risk players and NOK5.68bn from those at no risk of harm.
This would suggest a combined total of NOK10bn, which was only slightly less than the 10.58bn in net revenue that Norsk Tipping and Norsk Rikstoto combined for in 2019.

The overall figure for February was up from $302.0m in the same month last year but was 4.4% lower than $393.1m posted in January of this year.

Figures published by the Pennsylvania Gambling Control Board (PGCB) showed year-on-year growth in almost all areas of the market, with the exception of sports betting where revenue plummeted from $16.4m in February 2021 to a loss of $442,847.

This was the first month in the history of the regulated Pennsylvania market in which operators made a loss.

Retail revenue reached $1.0m but online revenue came in at a loss of $1.5m. Players staked a total of $597.1m on sports during the month, an increase of 17.2% on last year.

Valley Forge, with its partner FanDuel, was the most successful sports betting operation in February, posting $1.6m in revenue.  Hollywood Casino at Penn National’s Caesars Sportsbook was the only other operation with revenue in excess of $1m, reporting $1.1m for the month.

However, a total of six operators reported a sports betting loss, with Hollywood Casino at the Meadows’ Barstool Sportsbook suffering the highest lost ($3.3m) of the month.

Turning to online casino, revenue in February reached $102.4m – an increase of 31.7% on last year. Online slots accounted for 68.1% of all igaming revenue in the month while $31.4m came from online table games and the remaining $2.9m came from online poker.

Hollywood Casino at Penn National retained top spot in the igaming market with $42.7m in revenue, ahead of Rivers Casino Philadelphia on $24.5m and then the Valley Forge Casino Resort with $18.5m.

In terms of land-based casino, retail slots comfortably remained the main source of revenue in the state’s regulated market, with revenue here rising 33.5% year-on-year to $194.7m.

Retail table games revenue climbed 29.6% to $74.4m, while the PGCB also noted that video gaming terminal revenue increased by 20.5% to $3.0m.

Fantasy sports contests was the only other market segment to suffer a decline in revenue, with this falling 21.5% to $1.6m. DraftKings led the way with $822,488 in revenue, ahead of long-time rival FanDuel on $575,735.

The American online and mobile sports betting space continues to expand, with New York and Louisiana launching so far in 2022, following Arizona and Michigan, among other states, in 2021. 

Amid ongoing regulation, payments technology – including digital wallets and online cash – is being used more regularly, almost in tandem with the growth of the US market. 

With regulation expected to continue apace, it’s clear that by understanding and embracing payment technology, operators in new states will set themselves up for greater long-term success.

Customers care about payments

Given the number of operators in the space, creating a frictionless payments experience that’s easy for players to understand is crucial when seeking a competitive advantage.

There are a number of ways operators can improve their payment experience, including expanding the number of payment methods and maximizing overall payment acceptance. 

For many bettors, credit card payments aren’t the preferred way to deposit into their accounts. Whether it’s for privacy reasons, or because this is an ecommerce transaction, it’s crucial that igaming operators include the full gamut of payment types, including digital wallets, eCash solutions, cryptocurrency and more. 

By offering a broad range of payment types, operators can appeal to a wider range of consumers, from veteran VIP and high-volume bettors to casual players.

While this concept rings true for deposits, withdrawals are equally important in creating an improved betting experience. In our 2021 research report on the state of US online sports-betting payments, we found that two thirds (66%) of American players expect to be paid out within 24 hours.

Quick and easy payouts remain a top criterion for players when selecting an online sportsbook. In fact, when comparing sportsbooks, our research revealed that payout speed was even more important than brand loyalty and promotional offers such as bonuses. 

Perhaps most surprising, players also prioritize rapid payouts over the two pillars of the sports betting experience – odds and the markets a brand offers. 

Safety & preferences

While payments have the power to bring a player’s experience to the next level, they can also play their part in combating illegal activity such as fraud and money laundering. 

Players can be targeted by fraudsters attempting to steal their financial information with the aim of turning a quick profit. The US igaming industry is also subject to large amounts of fraud at the individual level, as some bettors may claim chargeback fraud on their deposits to make up for losses.

As regulators continue to work on making the online betting industry as safe and successful as possible, payment providers have the tools to reduce the risk of fraud.

Payments technology also has the power to harness all of a customer’s data to tailor experiences to their individual needs and wants. With payment data, operators can adjust facets of their checkouts to reflect customer behavior, which also can help combat fraud or unusual activity. 

The key to long-term loyalty

As the online sports-betting industry in the US continues to expand, it’s important for operators to understand how to best leverage payments technology to attract and retain players. 

As it becomes increasingly difficult to get a customer’s attention, payments pose a clear opportunity for operators to separate themselves from their competitors and embrace what consumers are looking for out of their betting experience. 

Meanwhile, ensuring quick payouts is just as important as offering a number of ways to pay when it comes to retention, while innovations in payment technology can help protect against fraud and cybercrime. 

By offering more options at the proverbial checkout and increasing the rate of payment acceptance through alternative payment methods, operators will be well positioned to see their player acquisition rates grow alongside market demand. 

Zak Cutler is the CEO of North America iGaming at Paysafe. He is a regulated US online gaming executive with a proven track record in strategy and corporate development. Before Paysafe, Zak worked at both Jackpocket, an innovative app enabling players to buy state lottery tickets online, and DraftKings, where he was responsible for all product initiatives related to payment processing, U.S. compliance, and international expansion. 

Reports emerged this week that Parimatch Tech would suspend or terminate its deal with Chelsea due to the club’s ownership by Roman Abramovich, the Russian oligarch who has reported links with Russian President Vladimir Putin.

In recent weeks, Abramovich has been handed a series of sanctions by the UK and Europe. Among these were the freezing of his assets in the UK, including Chelsea, in response to the Russian invasion of Ukraine. This meant that Chelsea had been unable to perform revenue-generating activities such as the sale of tickets, and certain partners such as mobile phone network 3 suspended marketing deals in response.

Parimatch Tech has been vocally critical of the invasion and has announced a series of its own measures to support people in Ukraine.

However, Parimatch Tech said that while it would scale back joint marketing activity with the club in order to focus more on its efforts in Ukraine, it would remain in partnership with the team.

The two parties entered into the partnership in August last year, with the deal running to the 2023-24 season.

“A few reports on Parimatch’s partnership with Chelsea have appeared in the media — sadly, our position has been misinterpreted in a few publications,” Parimatch Tech told iGB.

“Parimatch is not terminating or suspending the contract with Chelsea FC. We are limiting our joint marketing and brand campaigns to focus all our efforts on helping Ukraine.

“All of our current activity in the public domain is aimed at raising awareness about the war. And we intend to use the resources at hand, including the club’s LED display systems, to promote our volunteering and donation activities.”

Earlier this month, Parimatch Tech announced it was to withdraw its franchise from Russia in response to the invasion of Ukraine. Betring LLC had been operating the Parimatch brand in Russia under a deal agreed with Parimatch Tech in 2016, whereby all rights to use the Parimatch trademark in the country were transferred to Betring.

However, Parimatch Tech has sent termination documents to Betring to cease operating the brand in Russia. 

Parimatch Tech has also committed UAH60m (£1.5m/€1.8m/$2.0m) to helping people in Ukraine amid the ongoing invasion. The business initially set aside UAH30m to help Ukrainians but increased this amount to provide additional assistance. 

The provider has already spent UAH42m, including UAH39m on ammunition and UAH3m on medicines.

In addition, the business’s Parimatch Foundation non-profit launched a charitable fundraiser to help purchase and deliver food and medicine, as well as to assist with the evacuation of victims.

The Parimatch brand was founded in Ukraine in 1994 and the main development centre of Parimatch Tech is currently located in the country’s capital, Kyiv.

In the piece, Skarplöth (pictured) said: “For the suspended player who suffers from gambling addiction, the licensed gambling market is thus closed, but the door to the unlicensed gambling market is still wide open.

“In other words, the paradox is that a voluntary shutdown from the regulated market risks becoming an involuntary way into a market with no other rules than to entice the player to play more.”

The post comes soon after regulator Spelinspektionen published its annual report. It found that revenue for licensed Swedish gaming operators increased by 5% last year to SEK26bn. The number of suspensions on Spelpaus.se also increased.

At the end of the fourth quarter, approximately 70,000 people had self-excluded via the tool, also up by 5%.

After a roundtable meeting with gambling addiction researchers and therapists of gambling problems, Skarplöth said he came to the conclusion that an important part of consumer protection is still being missed. He said that players should be shut off from the entire gambling market and passed immediately to someone who can help and guide on responsible gambling.

He ended the piece stating “In the meantime, a quiet tip to Spelinspektionen is to change its message to something like; ‘Spelpaus is not the solution to your problem, but the fact that you are shutting down shows that you understand that you need help. That’s an important first step.’”

ATG was originally the exclusive provider of horse betting, until in 2018 when it expanded after a market re-regulation and now operates in sports betting and casino as well.

Inspired has received a gaming-related supplier licence from the Alcohol and Gaming Commission of Ontario (AGCO) and plans to launch its portfolio of iGaming products in Ontario early in the second quarter of 2022. The gaming market in Ontario is to go live on 4 April.

The licence authorises Inspired to offer its games to AGCO-approved operators serving the province of Ontario. Inspired said it will have 25 games certified in time for the market launch, including leading titles such as Big Spin Bonus.

Claire Osborne, vice-president of interactive at Inspired, said, “Ontario’s iGaming market officially opens to licensed operators on 4 April 2022, and we couldn’t be more excited to be a part of the newly regulated igaming market.

“With a population of nearly 15 million people, Ontario’s demographics compare favorably to states like New Jersey or Michigan where we already operate. We expect Ontario to present a significant market opportunity for us, and we look forward to players in Ontario enjoying our games.”

Inspired already has a presence in Canada as it provides online casino content to Loto-Québec.

Inspired also has several partnerships in many regulated markets in the US, including New Jersey, Michigan and Connecticut.

AGCO has already issued licences to a number of operators ahead of the market opening in April. Hillside (Bet365) and Flutter Entertainment-owned FanDuel and Unibet are among those to have been given permits to operate. Supplier licences have been obtained by businesses including Play’n Go and High 5 Games.

The launch of the market next month will conclude a process that dates back to April 2019, when the province’s government announced plans to end Ontario Lottery and Gaming Corporation’s monopoly on igaming, opening up the market to private operators. It then moved forward with these plans in November 2020, with legislation introduced and passed in 2021.

Golden Matrix earlier this week revealed that it had secured approval to launch on Nasdaq and was due to begin trading from yesterday (17 March).

The provider’s shares are now trading on the Nasdaq Capital Market via the ticker symbol ‘GMGI’.

Golden Matrix chief executive Brian Goodman said the uplisting of common stock to Nasdaq was “extremely important” to the business and that it would support its wider, global growth plans.

“We expect the uplisting to significantly improve the company’s visibility, broaden our base of both retail and institutional stakeholders, and lead to enhanced long-term shareholder value,” Goodman said.

“Additionally, we believe this uplisting will further strengthen our ability to execute on the Company’s acquisition strategy with the goal of accelerating both revenue and profit growth going forward.”

Confirmation of the listing comes after Golden Matrix earlier this month also reported record quarterly revenue of $8.6m (£6.5m/€7.8m) for the three months to 31 January 2022, up 345.0% on the previous year.

Much of the revenue increase was attributed to the acquisition of UK-based competitions brand RKings, which contributed $5.5m to the revenue total after being acquired in November 2021. 

A further $235,246 of revenue came from a related interest.

According to ANJ, Winamax’s ‘Tout pour la Daronne’ campaign portrayed that sports betting could contribute to personal success and enhance a consumer’s social status.

ANJ picked out how the campaign showed how a man improved his own and his mother’s lives after winning money from a sports bet.

A decree that came into effect in France on 4 November 2020 prohibits operators from portraying that gambling can improve a player’s, or their family’s, life in adverts or marketing materials.

ANJ in particular singled out Article D. 320-9, 2 of the code, which states “any commercial communication in favour of a gambling operator is prohibited when it suggests gambling contributes to social success”. 

In line with this, the regulator said it this means operators must not associate gambling with the possibility of a player changing their social status, having extraordinary experiences or accessing services usually considered as reserved for very wealthy people.

The ANJ added that “hyperbolic” adverts are permitted provided that they do not have the effect, through the use of emphasis, parody or grossly exaggerated staging, of infringing the provisions set out in Article D 320-9 of the Homeland Security Code.

As such, the ANJ concluded Winamax’s advert breached the law and ordered all material associated with the Tout pour la Daronne campaign be withdrawn within one month of the ruling (17 March).

This ruling, ANJ said, is the first time it has used its powers to order an operator to halt an advert.

Under the agreement, Intralot will continue to manage Morocco’s lottery offering sports betting and other games of chance for an additional year, through to 31 December 2023.

Intralot has a long-term relationship with MDJS, having powered its lottery, betting and gaming offerings since 2010. 

However, in March last year, the Greek gaming giant announced it had agreed to reduce the term of an eight-year agreement, signed in June 2019, to end on 31 December 2022.

In January this year, MDJS launched an international call for tenders as it looked to appoint an operator to manage its activities.

The contract was due to come into force from 1 January 2023, running for eight years, with an option to extend for a further two years. The successful applicant would replace Intralot.

MDJS divided the proposal into two lots. The first covered fixed-odds sports and pari-mutuel betting, including wagering on virtual events, with betting on horse and greyhound racing carved out. 

Lot two covered lotteries, instant sports lotteries including electronic instant games and raffles. 

Bidders were able to submit a proposal for one or both lots, no later than 10am on 4 April. 

Minister Franc Weerwind has outlined plans for new restrictions that are set to become law later this year after Parliament recently approved a motion calling for an all-out gambling advertising ban introduced by Socialist Party MP Michiel van Nispen.

The Minister said in a letter to van Nipsen and other lawmakers that he “will make every effort to achieve further restrictions on advertising for high-risk games of chance as soon as possible”.

Weerwind added that the draft text for a legal ban is being worked out and an amendment to the Gambling Act could be proposed before the summer. In advance of that, the Minister will use a decree designed to prevent addiction to prohibit the use of all role models in gambling advertising.

One area of particular concern, Weerwind said, was that advertising restrictions in other areas could simply lead to more online marketing. The Minister said he will look at possibilities to include a time window for online banners and videos in the decree on recruitment, advertising and addiction prevention.

Weerwind acknowledged that he was taking measures very soon after the law allowing online gambling took effect late last year.

In advance of legislation being passed, the Minister for Legal Protection has also again collaborated with industry groups Vergunde Nederlandse Online Kansspelaanbieders (VNLOK) and Netherlands Online Gambling Association (NOGA) on a series of measures designed to limit advertising and protect vulnerable groups. These include gambling commercials only being broadcast on television between 10pm and 6am and a ban on advertising on radio and in print, and come just a month after the sector agreed to limit the number of betting advertisements per commercial block to one.

Weerwind said the sector organisations — who published an initial voluntary code of conduct for online operators last year — have promised to implement these measures as soon as possible, with the aim being to implement the agreements as soon as 1 April.

“With these measures, untargeted advertising for online games of chance will be severely limited in the shortest possible time, in anticipation of a change in the law.

“I’ve also been in talks with addiction treatment centres. They have told me that the sheer volume of gambling advertisements leads to unrest among recovering addicts and problematic gambling among people who identify with the role models appearing in the ads. That was a reason for me not to wait.”

Weerwind added that concerns over how Covid restrictions and curfews may have encouraged online gambling are not reflected in recent data. A study he commissioned shows that participation in online gambling did increase during the first year of coronavirus measures, however this increase was not demonstrable among young people (aged 16 to 24).

Last month, Dutch regulator de Kansspelautoriteit (KSA) issued warnings to a number of operators over their advertising policies, after raising concerns that their activities could attract minors and young adults to online gambling.

In January, René Jansen, chairman of KSA, ordered licensees to reduce their advertising, warning the industry that politicians already perceived there to be too much in the market.