Month: March 2022

Cole-Johnson will assume his new role from 4 April, joining the business from Entain where he had served as gaming product director for two-and-a-half years.

Having spent more than 20 years working in the gambling sector, Cole-Johnson also spent just under five years as group director for digital and cross channel services at the Rank Group.

Prior to this, he spent almost six-and-a-half years at William Hill, first as egaming director and later director of customer intelligence.

Cole-Johnson began his career in the gambling industry with a 13-and-a-half-year spell as director gaming for Ladbrokes.

“It’s a proud moment for me; Bede is a company that I’ve gotten to know well and admire over a significant period, so this is a brilliant opportunity to join and lead a strong team with a proven track record,” Cole-Johnson said.

“Their achievements over recent years speak for themselves and the potential for the future is really exciting.”

Bede Gaming chairman Joe Saumarez Smith added: “We are delighted that Colin has agreed to become CEO of Bede. He is an industry-leading executive with a proven track record at some of the biggest gaming companies in the world. 

“He already knows Bede’s industry-leading platform from his days as a client and we have no doubt that he will help the company further grow its position as the first-choice gaming platform in regulated markets.”

Bede, which also announced managing director Alex Butcher will become a non-executive director of the provider, operates as part of the Gauselmann Group, having become part of the business in March 2020.

This revenue total was a rise of 10.8% from 2020, when revenue was at $414.1m overall.

Costs of sales came to $367.9m, up 13.8% year-on-year. This left gross profit at $91.1m for the year, rising slightly by 0.1% compared to 2020.

Administrative expenses grew by 17.1% to $47.2m, while selling expenses rose by 19.8% to $17.5m.

Equity measurement income resulted in a loss of $12.3m, up by $10.7m from 2020.

Other income grew $17.3m to $5.2m, bringing the total income from operations to $33.5m, a fall of 33% year-on-year.

Following interest expenses of $5m and foreign exchange expenses of $1.4m, the total pre-tax income was $27.1m – 41.2% less than the pre-tax income in 2020.

Income taxes came to $7.4m, a fall of 42.1%, bringing the total net income to $19.7m. This was a decrease of 40.8% year-on-year.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) total came to $84m. Lotteries and charitable gaming made up $64.3m of this, a fall of 13.4%, while egaming systems made up the remaining $19.7m – up by 207.8%.

“2021 was a very successful year for Pollard Banknote on a number of critical fronts,” said John Pollard, co-chief executive officer of Pollard Banknote. “In light of the extreme challenges over the last two years with Covid-19, we could not be prouder of our employees.”

“All of our main business lines continue to see exceptional demand from our customers and we expect that to continue throughout 2022.”

The company also reported record revenue for its fourth quarter, with $116.5m. This was up 12.3% year-on-year.

Cost of sales hit $95.8m, a rise of 12.7%, leaving the total gross profit at $20.7m

This was a decrease of $2.3m.

Administrative expenses for the quarter came to $11.9m, up by 14.4%. Selling expenses also grew, by $1.2m. Equity investment income came to a loss of $3.2m, and other income increased by $6m to $2.3m.

After considering this, income from operations was $4.7m, a significant decrease of 66.6% year-on-year.

After other expenses at $1.5m, pre-tax income was $3.2m, down 80.4%

Income taxes totaled at a loss of $2m, bringing the overall net income for the quarter to $5.2m, a year-on-year fall of 57.3%.

“Our fourth quarter results reflected a number of the themes impacting our 2021 full year results,” noted Doug Pollard, co-chief executive officer of Pollard Banknote.

“With record fourth quarter revenue of $116.5 million, up 12.3%, driven by higher charitable gaming and egaming sales. Demand for our charitable products and solutions remain extremely high.”

Adjusted EBITDA for the quarter came to $18.7m. Lotteries and charitable gaming made up $12.3m of this, down 32.4%, while egaming contributed $6.4m- up by 204.7%.

The study, conducted by the European Union’s Intellectual Property Office (EUIPO), analysed the amount and type of online advertising found on IPR-infringing websites and apps in the EU, which included unauthorised streaming sites for sports, movies or tv shows.

EUIPO’s study found advertising from major gambling brands -including EGBA members – had decreased by 55% on IPR-infringing websites in the EU in 2021, following on from a 20% decrease in 2020.

The figure dropped from 18% in the first quarter to 8% in Q4. Advertising from all gambling brands had decreased marginally on IPR-infringing websites, from 28% in Q1 to 25% in Q4. Gambling also accounted for less than 1% of advertising impressions for mobile apps.

EGBA’s secretary general Maarten Haijer said: “I’m pleased to see consistent and significant, year-on-year progress by Europe’s major gambling brands, including our members, to reduce the placement of advertising on IPR-infringing websites and apps.

“But there is still more work to do, and we encourage Europe’s gambling operators, and their advertising affiliates, to play their part by ensuring their advertising, and its placement, is conducted in a responsible way. We look forward to continuing our cooperation with the European Commission and other stakeholders, at EU-level, to reduce IPR-infringing online advertising.”

EGBA published the results of its inaugural sustainability report in July 2021, which showed an increase in customers utilising safer gambling tools.

Caesars and NYRA Bets first partnered in January, in a deal that made Caesars the official sports betting partner of NYRA’s Triple Turf series.

Caesars Racebook will use the NYRA Bets platform to offer pari-mutuel betting on horse racing from 250 racing tracks globally. NYRA Bets will also supply race replay and handicapping insights.

Wagering will be made available from marquee horse racing events in the US and globally.

“Following our successful rollout of Caesars Sportsbook, we’re delighted to launch Caesars Racebook in partnership with NYRA Bets,” said Dan Shapiro, senior vice president and chief development officer of Caesars Digital. “NYRA conducts world-class horse racing and NYRA Bets has access to the best horse racing content from around the world, including from Caesars-operated racetracks.”

“We’re proud to support the horse racing industry while introducing the new Caesars Racebook app and Caesars Rewards to horse racing bettors.”

The app is set to launch in the coming months. It will be available on iOS and Android.

Caesars was one of the first operators to go live in New York after mobile betting launched there in January.

“NYRA considers it a core responsibility to grow the sport by increasing consumer access to world-class horse racing both in New York and around the country,” said Dave O’Rourke, president & CEO of NYRA.

“Pairing the world-renowned Caesars brand with the rapidly growing NYRA Bets wagering platform is an ideal way to launch Caesars Racebook, which will soon deliver all the NYRA Bets tools and advantages to the Caesars customer base.”

The bill – Senate Bill 294 – would allow for the creation of commercial casinos in the state for the first time, alongside licensed sports betting, both retail and online.

These products will be taxed at 20% of net gaming revenue. Of the tax receipts, 95% will be distributed on the state level, 3% on the county level and 2% to the municipality where the licensee is based.

Businesses that wish to operate sports betting may receive a sports betting operator licence, which would allow an operator to host “one or more individually branded, Internet sports betting platforms”. The licence fee for internet sports wagering operators would be $100,000.

In addition, sports betting licensees may partner with managed services providers to operate sports betting, as long as that provider is also licensed by the Commission. The managed services provider licence also carries a $100,000 fee.

Meanwhile, casino gaming licensees would be permitted to offer slot machines, video lottery terminals, pari-mutuel wagering games horse races, card games such as poker, blackjack and baccarat, dice games, roulette and bingo, among other games.

Currently, the Poarch Band of Creek Indians is the only group allowed to offer gaming within Alabama.

In addition to casino gaming and sports betting, the bill would allow for bingo and for lottery retailer licences. Bingo would carry a “nominal” licence fee.

The bill would also create the Alabama Education Lottery and Gaming Commission, which would regulate gaming in the state. The nine members of the Commission’s board would be paid the same as state legislators.

The bill was assigned to the state Committee on Tourism, which reported it favourably after proposing two amendments.

The first of these amendments concerns how the state may use gaming tax revenue, with portions of this income earmarked for causes such as healthcare, infrastructure and mental health. 

The amendment altered the details of the 20% of tax income directed towards healthcare, specifying that it should go towards healthcare for “the underserved population, including rural healthcare”, rather than specifically going towards rural areas.

The second amendment says that licensed lottery retails may receive commission equal to 7% of sales.

The bill now moves back to the Senate floor, where Senators will consider the amendments before voting on the bill itself.

The revenue generated by the three Detroit-based casinos – MGM Grand, Motor City and Greektown – fell 3.4% when compared to the previous month.

Table game and slot revenue came to $95.7m, while sports betting operations made a loss of $872,552.

MGM Grand’s revenue came to $46.3m, Motor City had revenue of $28.9m, while Greektown’s revenue amounted to $20.4m.

In terms of market share, MGM maintained its leading position with 49%, Motor City had 30%, and Greektown had 21%.

All three paid $7.7m in state gaming taxes for the month, while wagering taxes and development agreement payments to the city of Detroit totaled $11.4m.

Sports betting handle for February was $25.4m. Qualified adjusted gross receipts (QAGR) were down $794,925 during February compared with the corresponding period last year. Monthly QAGR also decreased $2.8 million from January.

Revenue from fantasy sports operators also came to $1.7m.

Since its launch last week, the ‘Gaming Industry For Ukraine’ initiative has raised £191,957 in funds.

Betsson Group is the largest donator so far having pledged a total of £50,000, while Games Global and Microgaming both donated £10,000.

Alexandre Tomic, the founder and chief executive of gaming business Alea, also pledged £10,000, while former industry professional Jonas Ornstein donated £7,500 to the initiative.

Other contributors include OLBG, Better Collective, Just for the Win, Enteractive, Funfair Games, FSB Technology, Sports Media Holdings, Fast Track, Cash Magnet, Green Jade Games, Continent8 Games, Clarion Gaming, Beyond Play, SBC and VIXIO, among many others.

All proceeds will go to Choose Love’s Ukraine Crisis Fundraiser, an project to support people displaced by Russia’s invasion of Ukraine, which aims to raise £2.5m and has already drawn £1m in pledges.

“It is fantastic to get so many big companies on board as the gaming industry comes together to raise the funds for the Choose Love charity,” Gaming Industry For Ukraine’ organiser Karolina Pelc said. “The industry has been extremely supportive of our efforts as we look to help our friends in Ukraine during this difficult time.”

Choose Love added: “Last week, as your donations continued to come in, we had a team of two on the ground to understand what is needed by all those in and fleeing Ukraine and build connections with teams responding… 

“There are two broad strands to where funding is going – emergency response, and longer-term support and capacity building. We are working to ensure that both of these strands reach services in Ukraine and in the surrounding countries. 

“We are distributing funds to partners operating in Ukraine, and in surrounding areas (Romania, Moldova & Poland), and will be updating you over the coming days with more detail.”

Over the past week, a number of gambling businesses have cut ties with Russian clients in response to the invasion of Ukraine.

Genius Sports Group suspended operations in Russia and Belarus, while online gambling operator LeoVegas halted all betting on domestic Russian and Belarusian sports.

Parimatch Tech also said that it would withdraw its franchise from Russia in response to the ongoing invasion of Ukraine. The Parimatch brand was founded in Ukraine in 1994 and the main development centre of Parimatch Tech is in the Ukrainian capital of Kyiv.

Aspire Global also terminated its contract with Sports Lotteries LLC, operator of the Russian National Lottery, due to a “different view of the business”.

Meanwhile, Aristocrat Leisure said it had helped more than two thirds of employees and their families from Ukraine-based business units of its Pixel United mobile social gaming division amid the ongoing invasion of the country by Russia.

Content developer Playson also paid a special tribute to its staff in Ukraine for their efforts during the ongoing invasion of the country by Russia, revealing some employees has signed up to join Ukraine’s Armed Forces to fight the invasion. 

The deal will mean H2 will continue as IBIA’s official betting market data partner, granting it access to H2’s database spanning more than 160 jurisdictions in over 100 countries.

David Henwood, director at H2 Gambling Capital, said: “IBIA is at the forefront of the modernisation of the global betting industry and we are proud to be associated with the association which represents nearly 100 international betting brands.

“Our joint work on optimum market regulation has proved ground-breaking and the further professionalisation of the sector will very much require accurate market data and analysis at its heart, so we are delighted to be co-partners with IBIA in this space.”

IBIA recently expanded its reach by launching its integrity monitoring services in the US and Canada back in February.

IBIA CEO Khalid Ali said: “H2’s market leading and globally recognised dataset has been an important component of our policy deliberations and has underpinned our key market integrity and regulatory position.

“That data has been critical in advancing evidence-based proposals with a range of stakeholders around the world. IBIA therefore welcomes a continuation of our partnership, which comes at an important point in the development of regulated betting globally.”

IBIA’s latest annual report found that there were 236 suspicious betting alerts during 2021. The overall number represents a 13% decrease on 2020’s figure, when 270 suspicious cases were flagged. 

In 2021, gambling regulators around the globe ordered licensees to pay fines or financial settlements totalling almost €50m.

These stemmed predominantly from operators failing to properly apply safer gambling protocols and failings in know your customer (KYC) and anti-money laundering (AML) practices. Blockchain could prove an answer to these recurring problems.

Blockchain-backed solutions can create a stored log of player data, allowing for closer analysis of their behaviour and spending, to prevent customers from gambling unsustainably and to assess their affordability. Both are critical to maintain safe and sustainable gambling environments.

Furthermore, blockchain allows operator to enhance their KYC solutions, ensuring casino and sportsbook websites are not accessed by minors or excluded players.

Unfortunately, blockchain technology and the range of use cases are not yet widely understood by businesses, including across the gaming industry. This webinar aims to showcase the possibilities it offers.

What you will learn:

What’s going wrong: The issues that result in regulatory infractionsA new safety net: How blockchain solutions aid player protection effortsCompliance concerns addressed: Blockchain’s use in KYC and AML proceduresSafety and sustainability: How this ultimately helps reduce litigation and reputational risks

Moderator:

Becky Liggero, lead gaming industry reporter, CoinGeek

Speakers:

Paul Foster, CEO, Crucial ComplianceWarren Russell, CEO, W2Nick Hill, sales director, nChainAi Ishii, business development, nChain

The judgement was handed down by the Administrative Jurisdiction Division of the Council of State, part of the District Court of the Hague.

The KSA first issued a penalty of €250,000 per week to EA on 15 October 2019, claiming that the publisher had violated article 1(a) of the Dutch Gaming Act by providing what it deemed to be gambling products in the video game FIFA.

According to the KSA, this applied to FIFA because the game contains loot boxes and “player packs”, the contents of which are not known until they are acquired. Player packs can also be traded and bartered for and have economic value in the game

EA launched appeals, which were subsequently dismissed the following year. However, EA appealed to the Administrative Jurisdiction Division on 29 November 2021, which led to the most recent court judgement.

During this appeal, EA argued that the loot boxes and player packs are not gambling products as stipulated in the Dutch Gaming Act, as they are part of a wider game and not available separately.

This was supported by the fact that the features can only be accessed through game play.

It added that the contents of the features cannot be used for economic value as they cannot be converted into cash, and argued that the KSA overstepped in issuing a penalty as there is no risk of gambling addiction.

The court sided with EA and revoked all previous decisions, concluding that loot boxes and player packs do not meet the requirements of gambling products in the Dutch Gaming Act. As a result, it also ruled that EA did not have to comply with the penalty.