Month: March 2022

The comments came in a scheme document, a document released ahead Crown’s scheme meeting in which shareholders vote on the deal. The document contains a number of reasons why shareholders may wish to vote for or against the acquisition.

The board outlined that the multiples implied by Crown’s valuation are reasonable when compared to market competitors.

The Blackstone bid prices Crown at AUS$13.10 (£7.48/€8.81/$9.84) per Crown share. In the document, the board noted that the revenue multiple of this deal will match those of other casino operators across Australia and the US. It would also be more than casinos in New Zealand, Macau and Singapore.

The document goes on to state that the all-cash scheme consideration of AUS$13.10 per share “provides certainty of value” for shareholders’ investment and avoids “the uncertainties and risks associated with an ongoing investment in the Crown business or assets”.

“If the scheme does not proceed, the amount which Crown shareholders will be able to realise in terms of price and future dividends will necessarily be uncertain and subject to a number of risks,” it continued.

It said that these risks could relate to the future regulation of the business. n each of the three Australian states in which Crown operates a resort, the business has come under recent scrutiny, with reviews in New South Wales, Victoria and most recently Western Australia all finding Crown “unsuitable” for a gaming licence.

The reviews all found evidence of money laundering and links to junkets with ties to organised crime at the operator’s resorts, as well as questioning Crown’s management structure.

However, all three inquiries into Crown said the operator would still be permitted to operate its casino if it underwent certain changes.

For why shareholders may wish to vote against the scheme, the document states several examples- such as that shareholders may disagree with the Independent Expert’s assessment, or that they may wish to take part in future Crown financial decisions.

In order for the scheme to pass, 75% of all votes cast must be in its favour.

Yesterday (29 March) Blackstone received several key approvals relating to its acquisition of Crown Resorts.

Crown also noted that an independent expert concluded that the acquisition is fair, and in Crown shareholders’ best interests.

The expert’s report, which was prepared by Grant Samuel and Associates Pty Limited, found that the acquisition bid is the highest secured in an open competitive environment.

Blackstone first submitted a proposal to acquire Crown last year, at a bid of AUS$8.02bn (£4.47bn/€5.21bn/US$6.19bn).

This was rejected and the bid was raised to AUS$8.87bn. This was then unanimously approved by Crown’s board.

The event organiser will host in-person Dota 2 tournaments which have been “tailored towards the betting community from the ground-up” this Autumn. The first weekend clash will begin on 3 September, and will feature four teams competing for a £100,000 prize pool in a double-elimination tournament produced by Black Molly Entertainment.

“With Dota 2’s 7 million-plus monthly active player base and the growth of esports betting continuing at a breakneck pace, these tournaments will enable sponsors to engage with a passionate and difficult to reach fan base,” Clarion Gaming head of esports Will Harding said.

“The tournaments will have betting focused broadcasts which will be live-streamed in four different languages, giving operators and payment providers the unique opportunity of choosing which streams to sponsor in order to maximise their intended reach.”

Full details of the event will be revealed at ICE London 2022, which takes place from 12-14 April at the ExCeL London. However, Clarion has already revealed that teams and casters will be handpicked to best suit the target player base of partners. 

The business has also partnered with IMG to help deliver the September event.

“To support the launch of the tournaments and to provide a wider level of services to our clients, we are delighted to announce that we have partnered with IMG,” Harding said. “There is a large appetite for brands outside of the betting space to sponsor the tournaments and IMG is the perfect partner to extend the Dota 2 Global All-Stars tournament covering opportunities such as brand licensing deals, media distribution, esport consultancy, brand partnerships and live event production. 

“IMG already handles these integrated services for some of the most attractive betting esport tournaments in the space.”

At this year’s ICE London event, Clarion will also host a Rocket League tournament with a £25,000 (€30,000/$33,100) prize pool at this year’s event, bringing together a host of esports personalities. Visitors will also be able to place bets on the tournament using ICE Esports Arena chips.

To register for ICE London 2022, click here.

Nigel Huddleston – the Parliamentary Undersecretary for Digital, Culture, Media and Sport, who also previously oversaw the gambling brief that is now the responsibility of Chris Philp – addressed MPs after a Westminster Hall debate led by Carolyn Harris on gambling-related harm.

Harris – who represents Swansea East and is the chair of the All-Party Parliamentary Group on Gambling-Related Harm (APPG) – said that a number of areas of British gambling laws were in “urgent need” of reform. She added that she hoped to see these addressed in the white paper that forms part of the Gambling Act Review.

In response, Huddleston said the government was just putting finishing touches on the white paper.

“I cannot pre-announce what will be published in the white paper […] but we are in the process of finalising it,” he said.

Among the issues Harris raised was that of affordability checks. She said that mandatory checks from a central body should be put in place.

“Most importantly, the case for a centralised and independent affordability assessment is overwhelming,” Harris said. “Putting a limit of £100 a month on net deposits is a sensible, proportionate and, more importantly, evidence-based position, especially when we consider that the average level of disposable income in Britain is £450 a month, and that 73% of slot players and 85% of non-slot players lose £50 or less a month.”

Newcastle-under-Lyme MP Aaron Bell noted that currently operators do not have access to enough information to conduct comprehensive affordability checks, and asked Huddleston if he would support operators gaining access to “more granular information”.

In response, Huddleston said that Bell made “a key point about the responsibility and role of the financial services sector in the review”, suggesting support for the single-customer view where operators can see the full spending data for each of their customers.

Huddleston added that the single-customer view was “increasingly necessary given that the average online gambler now has three accounts, and those with a gambling disorder typically have far more”.

In addition, he said that he had received concerns from the horse racing industry about the checks, and promised that any checks in place would be “proportionate”, suggesting a rate that may be higher than £100 per month.

“The main area of concern from the horse racing industry is the affordability checks. As I said, these are important, but they must also be proportionate, and we are carefully considering the impact of all our proposals.”

Harris went on to argue for operators paying a statutory levy towards research, education and treatment, claiming the current voluntary system had not produced satisfactory results.

Huddleston responded that the government would always consider the option of a statutory levy if it determines the current system was indeed ineffective, and promised more clarity in the white paper.

“We have also been clear for a number of years that, should the existing system of taxation and voluntary contributions fail to deliver what was needed, we would look at a number of options for reform, including a statutory levy, and we will set out our conclusions in the white paper,” he explained.

Harris also devoted much of her time in the debate to gambling advertising. She said that the industry’s “whistle-to-whistle ban” – in which ads cannot be broadcast during pre-watershed live sports events – was “not worth the paper it was written on”. Instead she called for a full ban on gambling ads.

Huddleston took a more balanced approach. He noted that “advertising can help licensed gambling operators differentiate themselves from the black market” and that “it also provides financial support for broadcasters and sport”. However, he added that “operators must advertise responsibly” and said the government was “committed to tackling aggressive practices”.

Huddleston also added that The Committee for Advertising Practice was set to “tighten” advertising rules, and would soon publish more detail in this area.

This was driven by the recovery of land-based gaming, which more than offset a dip in betting and online gaming revenue for the month.

Figures from Danish regulator Spillemyndigheden reveal that online casino remained the largest vertical in terms of revenue. Across all licensees, revenue came to DKK214m, though this was down 2.0% from the same month of 2021.

Sports betting revenue for the month totalled DKK184m, down 17.0% from the DKK221m in February 2021, and a decline from DKK228m in January.

The land-based sector rebounded, however, as the comparable period in 2021 had been affected by Covid-19-related restrictions. Slot machines revenue amounted to DKK109m, after negligible revenue in February 2021. This was the highest total since October 2021 as many of the previous three months were also affected by restrictions.

Land-based casino, meanwhile, brought in DKK31m, again up from a negligible total in 2021.

Ontario is set to launch licensed sports betting and igaming on 4 April, ending a state monopoly. Earlier this month, the Alcohol and Gaming Commission of Ontario (AGCO) released a guide for operators that revealed that businesses which apply for registration before the 4 April launch must cease operations in Ontario from the moment their registration is approved by AGCO.

FanDuel is among the operators that has received a licence, and as a result it has opted to withdraw its daily fantasy sports brand, including both free and paid games, as this vertical is not permitted under the new regime.

The operator did note, however, that its daily fantasy sports brand would still be available in other provinces.

All entries submitted prior to April 1 will run as normal, with all winnings fully eligible for withdrawal. 

In September of 2021, the province published its final standards for online betting and gaming. The rules for online gaming include a ban on auto-play and a minimum spin speed of 2.5 seconds for slots.

However, questions have been raised over whether the manner in which Ontario is set to open up its market is consistent with the Criminal Code of Canada.

Other operators such as LeoVegas, Rush Street Interactive, Rivalry, theScoreBet and 888 have also secured approval to launch in Ontario.

The survey asked 700 gamblers about the impact of rising costs on their own gambling activity, after the UK’s consumer price index inflation rate rose to 6.2% last week.

It was conducted by YouGov on behalf of the Department of Trust (DoTrust), an open banking solutions provider that owns the BetBudget app.

Of this 700, 127 people, or 18%, said that they would stop gambling altogether in the coming months. Meanwhile, 32% said that they would spend less on gambling.

Meanwhile, just under half – 49% – said they would spend the same amount on gambling as before, while only 1% of respondents said they would spend more.

Of the 351 respondents who reported a decrease, the majority – 211 people – cited “pressure on my finances from the cost of living”. In addition, 34 said it was due to a change in personal circumstances, while 80 people said it was due to “different priorities”. 

A further 34 people said that they were not sure or that they had decreased their gambling for other reasons.

The 700 gamblers were also asked how the rising cost of living had affected the way they spend money. Of the group, 11% said it had “badly” affected their habits, and they were “struggling” to pay their bills and expenses.

A further 43% of gamblers said inflation had “somewhat” affected them, and so were cutting back on non-essentials. An additional 38% of gamblers said that the cost of living affected them “slightly”, and that they watched their spend but “haven’t had to make significant changes”.

Only 7% of gamblers said it hadn’t affected them at all.

Out of all gamblers, 35% said they set a budget for gambling, while 65% said they did not.

DoTrust chief executive and founder Charles Cohen said the industry must take heed of the findings and be aware that players may now have more difficulty affording their gambling.

“Inflation is at levels not seen for decades and this is translating into a fast moving affordability crisis for the gambling industry,” he said.

Cohen added that in order to deal with this issue, operators need access to greater financial data on their players.

“Wait-and-see is not an option: operators need real-time financial data more than ever,” Cohen said.

In this position, Vartanian will be tasked with leading new product and revenue opportunities, such as the launch of new game formats and content. In addition, he will lead the business’ geographical expansion into new markets.

“Jackpocket is the proven leader in the digital lottery space, and I couldn’t be more eager to join the leadership team at this time of exciting national growth and product expansion,” Vartanian said. 

“Their drive to continually innovate and bring their customers new experiences at the intersection of gaming and entertainment is very much in step with where I believe the market is headed. With over 150 million US consumers playing the lottery yearly, I look forward to building on the impressive momentum that the Jackpocket team has delivered and capture the interest of this massive consumer audience that we believe has much more room to grow through digital products.”

Vartanian had founded mobile-first app publisher and performance marketing business Jump Ramp Games in 2011, serving as chief executive until the business was acquired by mobile and casual gaming pioneer MobilityWare in 2019.

He then served as general manager for the Jump Ramp Group within the wider MobilityWare business.

“We are thrilled to welcome Tony to the team and bring his diverse expertise in growth marketing, product and monetization to our Jackpocket lottery world as we continue our rapid growth,” Jackpocket founder and chief executive Pete Sullivan said. 

“I’ve long watched and admired what Tony has accomplished at Jump Ramp Games (Jackpocket was even a former client), and I know he shares our vision to provide our players with the very best user experiences and products in gaming.”

The appointment comes after Jackpocket raised $120m (£88.8mm/€103.8m) during a November Series D funding round that attracted investment from celebrities and sports stars. The round included participation from famous names such as Hollywood actors Kevin Hart and Whitney Cummings, entrepreneur Mark Cuban and baseball star Manny Machado.

Filed in the Supreme Court of Victoria in Australia, the case refers to investors who acquired shares between 29 March 2016 and 16 March 2022.

The 108-page statement of claim outlined that Star continually held itself out as an ethical and responsible casino operator that complied with its legal and regulatory obligations.

However, Slater & Gordon referred to media reports that appeared in October 2021, which stated that Star had cultivated high-roller players who allegedly associated with criminal or foreign-influence operations and failed to comply with anti-money laundering and counter-terrorism financing laws.

In response to those reports, Star’s share price dropped by more than 25%, wiping more than AU$1.00bn (£574.1m/€677.6m/US$752.7m) from its value.

These allegations led to the New South Wales Independent Liquor and Gaming Authority in September 2021 launching an inquiry into whether Star remained suitable to hold a casino licence. This was expanded in January this year to assess other entities within the group.

Public hearings into Star’s activities, which are ongoing, have so far heard a series of claims, including that Star allowed junket operator Suncity to operate its own cage at the Star Sydney casino, where it exchanged chips for cash, despite this contravening the New South Wales Casino Control Act.

This week, Star’s long-serving chief executive and managing director Matt Bekier resigned in connection to issues raised during the review of Star Sydney.

The case also asserts that Star’s representations about policies being in place to mitigate risks such as money laundering, corruption, bribery, insider trading and restrictions on the use of gambling products were misleading or deceptive.

In addition, the suit alleged claims that any conduct by Star’s directors or employees that was inconsistent with the business’s values – which were designed to help maintain its reputation and protect the wider community from harm – would not be tolerated.

Slater & Gordon referenced the Bergin Inquiry into rival operator Crown Resorts, which began in 2019 and last year ruled it was unsuitable to operate a casino at Barangaroo in Sydney as evidence revealed its facilities and accounts were used for money laundering.

Bekier in 2019 publicly stated that although it operated in the same market, Star conducted extensive due diligence on those it did business with. 

At the time, Bekier said: “I am very confident that we are doing the best we can to run a clean and legal business… [and] I feel that what we do is both lawful and is executed in a way that should give us and our investors’ confidence that we are doing the right thing.”

Slater and Gordon class actions senior associate Ben Zocco said that its investigation into whether investors had a case against Star began last October, and the analysis undertaken so far suggested investors had a strong case.

“For the last six years, Star has held itself out to be a model casino operator that took its obligations seriously and followed not only the letter of the law, but the spirit of the law,” Zocco said.

“Star insisted that it took compliance seriously and ran its business ethically, honestly and with integrity. Our investigations to date, in addition to the extraordinary evidence revealed so far in the Bell Inquiry, suggests that they did everything but.”

“When investors purchase shares in a listed company, they are entitled to assume that all of the material information relevant to its financial position had been disclosed to the market,” he said.

“Our case is that Star failed to do so, and, therefore, investors are entitled to compensation for their losses.”

Lead plaintiff David Lynch added he was disappointed to see the value of his shareholding fall so significantly and was concerned Star may have misled shareholders by representing that it was more compliant with its regulatory obligations than was actually the case.

“As an investor, I expect that licensed operators that are publicly listed will operate in accordance with the law, and that there are appropriate checks and balances to ensure they do so. I am dismayed by the apparent scale of Star’s misconduct that is now being revealed in the public hearings,” Lynch.

Responding the case, Star acknowledged that it had received the lawsuit, stating it intended to defend the proceedings.

Originally developed by the RGC in 2010, RG Check helps gambling venues and igaming sites evaluate, monitor and manage all aspects of their responsible gambling strategy and operations.

The program is already in use at land-based casinos across the Canadian province.

The decision to include RG Check as a requirement was made by the Alcohol and Gaming Commission of Ontario and its iGaming Ontario subsidiary, which will oversee the regulated igaming market when it launches on 4 April. 

“The RG Check program is comprised of nine standards and 48 criteria that measure the scope and effectiveness of operators’ RG programming in areas such as site and product design, marketing communications and assisting players who may be experiencing harm from gambling,” iGaming Ontario executive director Martha Otton said.

“This allows Ontarians to play with confidence.”

RGC chief executives Shelley White added: “RG Check is a clear and tangible signal of the government’s commitment to making public protection and sustainable play a priority and a key part of creating a culture of responsible gambling here in Ontario.

“RG Check is a leading responsible gambling accreditation that is used by jurisdictions around the world. The RG Check symbol is a demonstration to all that the operator is committed to and has strong gambling safeguards in place.”

The new licence will enable Pinnacle Solution to provide its services to sportsbook partners within the MGA’s jurisdiction.

Pinnacle said the permit would support its growth plans, with the business seeking new partnerships in a number of new territories, with particular focus on Europe and Latin America.

Pinnacle Solution currently services more than 50 sports wagering operators in markets around the world.

“We’ve made great efforts to ensure our trading practices and technology stack can be scaled quickly, openly, and transparently in order to give our sportsbook partners a first-class service that delivers the enhanced hold and revenue performance they’re after,” Pinnacle chief executive Paris Smith said.

“Obtaining the MGA licence is proof that our expert teams have developed products that meet the market’s demands and high standards, and we’re now looking forward to servicing new partners in more markets with the ultimate sports betting, esports, and risk management solutions.”