Month: March 2022

Senate Bill 8412 has been referred to the racing, gaming and wagering committee for further approval.

The bill calls for the implementation of remote wagering, allowing for players to play online casino games through virtual or electronic means provided they remain within New York, and provided their bets are accepted by electronic equipment located at a licenced gaming facility.

Operators of New York land-based casinos are allowed to use up to two interactive wagering platforms, provided that these platforms have been authorised by the New York Gaming Commission. They will also be required to pay a one-time fee of $2m, while independent contractors – the online brands operators choose to partner with – will have to pay a $10m fee.

The tax rate for interactive wagering has been set at 25% of gross gaming revenue derived from the platform. This will be seperately maintained and deopisted into the state’s lottery fund.

Indian tribes are permitted to offer interactive wagering in the state so long as they adhere to the same conditions as casino operators.

The current legislation only permits casino gambling at no more than seven facilities within the state.

New York launched mobile sports betting in the state back in January, before going on to set a new record for statewide handle at the end of its first month.

Under the deal, MLSE – which also owns Toronto FC, and the Toronto Argonauts – will have access to AWS cloud computing and artificial intelligence (AI) technology to improve both gameplay and fan experiences.

This will include augmented reality (AR) and virtual reality (VR) applications where players will have access to both free-to-play gaming and real-money betting products.

“AWS supports many of the world’s most exciting sports organizations with the most comprehensive and broadly adopted cloud offerings,” Matt Garman, senior vice president of sales and marketing at Amazon Web Services, said. 

“We help organizations like Formula 1 to redesign their cars, the National Football League to train their players, and the National Hockey League to pull fans deeper into the game with a growing roster of real-time stats. 

“We’re thrilled to grow our global sports community with MLSE and help them build a winning suite of analytics and machine learning capabilities. Together with AWS, MLSE will continue to strengthen iconic Canadian sports franchises like the Toronto Maple Leafs, Toronto Raptors, Toronto FC, and Toronto Argonauts, and help them connect with fans on a more personal level than ever before.”

Humza Teherany, chief technology and digital officer at MLSE, said the group was determined to be on the forefront of technology in sports and that this deal was the latest example.

“As technology advances and how we watch and consume sports evolves, MLSE is dedicated to creating solutions and products that drive this evolution and elevate the fan experience,” he said. “We aim to offer new ways for fans to connect digitally with their favorite teams while also seeking to uncover digital sports performance opportunities in collaboration with our front offices.”

Ontario – where all of the MLSE teams are located – is set to open up its betting and igaming markets in April, after a bill permitting single-event betting across Canada became law last year, and has already issued its first three licences. However, questions have been raised over whether the approach taken in Canada’s largest province is legal.

This was a significant rise, however, compared to the slightly more than the COP$2.50tn worth of sales recorded in January 2021.

Land-based gaming made up COP$2.71tn of the total, up 70.3% year-on-year, while online gaming accounted for the remaining COP$1.70tn – a rise of 82.5%

Breaking down this online figure further, internet sports betting generated the most sales in January, totaling COP$869.93bn. Online slots brought in COP$339.27bn, while live casino made COP$247.67bn. The remaining COP$247.19bn came from a number of different online games, including roulette, poker and blackjack.

SuperAstro, a draw-based lottery game, recorded sales of COP$50.41bn.

In total the Colombian government received COP$60.01bn in taxes from the gaming industry, compared to slightly more than COP$50bn in January 2021.

Bill 442/1991 – which would legalise casinos online gaming, horse racing, slot machines, bingo and jogo de bicho – was passed by the Chamber of Deputies last week, sending it on to the Senate.

The bill provides that gaming machine suppliers for bingo and casino will be entitled to receive a 40% cut of gross gaming revenue, leaving operators in these verticals with the other 60%.

The initial bill also stated that operators must pay a 17% tax (CIDE) on GGR, and no other tax or social contribution. However, the Brazilian constitution expressly prohibits the federal legislature from granting state or municipal tax exemptions. As a result, operators now will not be exempt from the Municipal Tax on Services (ISS), which will fall between 2% and 5%, and must pay that as well as CIDE.

With the bill approved by the Deputies, the Senate may now deliberate over the bill, with some Senators having already expressed their opinions on the matter. Senator Carlos Viana of the Brazilian Democratic Movement was one of the most notable figures opposed, warning of concerns such as money laundering and gambling addiction in a Facebook post.

“International experience shows that large casinos are used for money laundering, drug trafficking and prostitution,” he said. “The inspection of this sector is very difficult. In addition, gambling and betting addiction is part of the International Code of Diseases.”

If the Senate approves the bill, it will go to the desk of president Jair Bolsonaro, who has previously indicated that he intends to veto the bill. However, if he does so, the Senate and the Chamber together would have the power to override a veto, if two-thirds of members of each vote to override.

Upon handing down the fine, Commission chief executive Andrew Rhodes warned that if similar failings happen again, the regulator may have to “seriously consider the suitability of the operator” to fulfill its responsibilities as a licensee.

Following a review of 888’s operating licence, the Commission said it identified a number of breaches.

Specific breaches included licence condition 12.1.1, which covers the prevention of money laundering and terrorist financing, and licence condition 12.1.2, in relation to measures for operators based in foreign jurisdictions.

888 also failed to comply with social responsibility code provision (SRCP) 3.4.1 related to customer interaction, as well as SRCP 3.9.1 for the remote identification of individual customers.

Setting out some of these failings, the Commission said issues related to social responsibility included failing to identify those at risk of harm because its policies determined affordability checks should be carried out after deposits reach £40,000.

888 was also found to have not carried out a customer interaction with a player who lost £37,000 in six weeks during the novel coronavirus (Covid-19) pandemic. In a separate case, the operator also allowed an NHS worker that earned £1,400 a month to set a monthly deposit cap of £1,300.

The Commission also noted how most customer interactions consisted of an email pointing out the responsible gambling tools available and did not require a response from the player, while the regulator said it did not find any evidence of 888 operator proactively placing restrictions on accounts where social responsibility concerns were raised.

Another social responsibility failing included that 888 did not ensure if a player had multiple accounts, those accounts were managed for customer interaction holistically, with financial limits implemented across all accounts if required. An example of this was that a customer had one of his 11 accounts restricted because of source-of-funds concerns but was still allowed to not only continue gambling but also open three more.

In terms of money laundering failures, the Commission again mentioned 888’s £40,000 threshold.

888 also accepted verbal assurances from customers to confirm their income and relied on open-source information to validate sources of funds, while the operator failed to set out which documents should be requested as part of its checks.

Noting a specific failing, the regulator said that one customer was allowed to spend £65,835 in just five months without source-of-funds checks being carried out.

The Commission also noted that 888 did not effectively implement its own policies, which stated customers had 10 days to present source-of-funds documentation before restrictions would be placed on their account. In one case, these documents were not requested until three weeks after the 10-day trigger. The player lost £15,000 during those three weeks.

Ruling on the case, the Commission imposed a warning under the Gambling Act 2005 and attached additional conditions to 888’s operating licence.

These conditions require 888 to conduct a third-party audit within 12 months of the review to examine whether it is effectively implementing its anti-money laundering and social responsibility policies, procedures and controls 

The Commission also imposed a financial penalty of £9.4m.

Gambling Commission chief executive Andrew Rhodes noted that this is the second time 888 faced enforcement action. In 2017, 888 was ordered to pay a £7.8m penalty package for failing vulnerable customers.

“The circumstances of the last enforcement action may be different but both cases involve failing consumers – and this is something that is not acceptable,” Rhodes said.

“Today’s fine is one of our largest to date, and all should be clear that if there is a repeat of the failures at 888 then we have to seriously consider the suitability of the operator to uphold the licensing objectives and keep gambling safe and crime-free.

“Consumers in Britain deserve to know that when they gamble, they are participating in a leisure activity where operators play their part in keeping them safe and are carrying out checks to ensure money is crime-free.”

Responding to the ruling, 888 accepted the decision and said that since the compliance assessment concluded in October 2020, it took “immediate and appropriate” action to improve its internal policies and procedures

Actions included Implementing additional customer source of funds checks and loss limits, reducing the thresholds in its customer behaviour monitoring technology that trigger alerts and customer interactions, investing in safer gambling and compliance team, and also strengthening and developing its assessment of anti-money laundering risks facing the business.

“We recognise our responsibility to make gambling safer and regret that previous implementation of our processes failed to meet required standards in the UK,” 888 chief executive Itai Pazner said. “We accept the findings of the investigation of some of 888’s former policies and procedures and have taken immediate appropriate action to improve and address the failings.”

In addition, 888 said it had initiated a number of other safer gambling initiatives including the launch of Control Centre, a customer-focused interface that enables customers to monitor their gambling activity through, real-time data, and the establishment of a new ESG committee of the board.

“Over recent years we have made significant investments in safer gambling, including more than doubling the size of our compliance team since 2019,” Pazner added. “We will continue to work closely with the Commission, our peers and other stakeholders to drive continuous improvement in the industry. 

“We continue to prioritise safer gambling by investing in technology as a force for good, giving customers transparency about their activity and using sophisticated AI to detect and block harmful play. We know that our work in this area must be ongoing, and we remain committed to continuing investment in meeting our safer gambling objectives.”

Legal action follows compliance work with the casino sector, which Austrac said led to a number of detailed enforcement investigations including into compliance of the Crown Melbourne and Crown Perth properties.

Austrac’s allegations include that the two properties failed to appropriately assess the money laundering and terrorism financing risks they faced, including the likelihood and impact of those risks, and to identify and respond to changes in risk over time.

Crown Melbourne and Crown Perth were also found to have not included in their AML/CTF programs appropriate risk-based systems and controls to mitigate and manage the risks to Crown.

Austrac also said the properties did not establish an appropriate framework for board and senior management oversight of the AML/CTF programs, nor did they have a transaction monitoring program to help identify suspicious activity that was risk-based or appropriate to the nature, size and complexity of Crown.

Other alleged failings included that the properties did not have an appropriate enhanced customer due diligence program to carry out additional checks on higher risk customers, nor did they conduct appropriate ongoing customer due diligence on a players who presented higher money laundering risks.

“Austrac’s investigation identified poor governance, risk management and failures to have and maintain a compliant AML/CTF program detailing how Crown would identify, mitigate and manage the risk of their products and services being misused for money laundering or terrorism financing,” Austrac chief executive Nicole Rose said.

“They also failed to carry out appropriate ongoing customer due diligence including on some very high-risk customers. This led to widespread and serious non-compliance over a number of years..

“Austrac has taken this strong action to achieve enduring change and ensure that Crown will fully meet their obligations to protect themselves and Australia’s financial system from criminal activity.”

Rose also said the absence of appropriate controls and processes meant Crown was unable to appropriately manage high risk customers, which in turn allowed the movement of money in non-transparent ways, making Crown vulnerable to criminal exploitation.

“This is an important reminder to all casinos in Australia that they must have a strong anti-money laundering program in place to protect their business and the community from serious and organised crime,” Rose said.

Austrac said it would not provide further comment on the action or details provided in the court documents now the matter is before the court, adding that whether a civil penalty order is made, and what this could amount, are matters for the court.

Responding to the case, Crown said it had developed a comprehensive remediation plan intended to position the group as a “leader” in the industry in its approach to governance, compliance, responsible gaming and the management of financial crime risk.

These actions included establishing a comprehensive Financial Crime & Compliance Change Program and implementing new controls to manage the risk of financial crime, including a revised Joint AML/CTF program.

Other activity included introducing improved controls to prevent and detect money laundering through Crown’s bank accounts and reduced limits for cash deposits at its casinos, as well as increasing its Financial Crime and Compliance resourcing and capability.

Crown also noted it had invested in automation, specifically a new automated transaction monitoring system and digitised tool to allow electronic submission and investigation of unusual activity reports, while a forensic audit and controls assessment of Crown’s patron bank accounts was carried out by an independent consultant.

“The plan is underpinned by an uplifted organisational culture,” Crown said. “Crown recognises the importance of complying with its financial crime obligations and has overhauled its approach to managing financial crime risk.”

Rose acknowledged these efforts, saying: “Crown is taking steps towards improving its systems, processes and resourcing however there is further work to do and Austrac will continue to work closely with Crown to address ongoing compliance concerns.”

Crown has faced a number of regulatory issues in recent times. In October last year, Crown was found to be “unsuitable” to operate Crown Melbourne in in Victoria following an investigation by the state’s Royal Commission.

Crown did not lose its licence, due to the potential economic repercussions for Victoria, but was ordered to adhere to special measures, including 33 recommendations made by the Commission.

This investigation came as a result of the Bergin Inquiry in New South Wales, which was launched in August 2019.

The inquiry assessed Crown’s eligibility to receive a casino licence in Sydney, ultimately deeming it “unsuitable”. However, it said it may still be permitted to operate the casino following implementation of its reforms.

Meanwhile, Austrac said that enforcement investigations into SkyCity Adelaide and the Star Entertainment, announced in June of last year, continue. Star and SkyCity, along with Crown, received notice of the allegations, while the National Bank of Australia (NAB) was also contacted by Austrac.

At the time, Austrac said the matter was related to “serious non-compliance” with the Australian Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) and the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (AML/CTF Rules).

As a mother of young twins and MD of a leading recruitment consultancy in this industry I know a thing or two about managing my time. It was with some surprise, therefore, when I recently received an indirect request from a client for a male-only list of candidates.

Apparently, they had concerns over maternity leave and the levels of commitment a woman would be able offer the company. Needless to say, or at least I hope it’s needless to say, we turned down the opportunity to fill the post. 

Sadly, this sort of attitude is one many women still face, along with a perhaps less egregious but far more common presumption of masculinity.

On almost all occasions when a job description is compiled there will be no explicit request for a male candidate. And yet job specifications are often written in male-specific language.

When asked to describe the ideal candidate at the beginning of a new search, we’re often told: “He will have…”, “he will be”, or “he should come from this specific industry”. I’ll let you decide if that is a careless use of pronouns, or symptomatic of a thought process that has already dismissed women as a viable option. 

In my experience, this presumption often extends to me personally and my position within the business. I have served as a director of Betting Jobs for almost 10 years and have worked in senior roles far longer. And yet I’m often still presumed to be a PA or receptionist when answering calls in a manner that has simply never happened to male colleagues.

To change that requires a quantum shift in the collective thought process around women in the workplace. As a small part of that collective we should all call it out when we see it. 

But here’s the good news – and there is good news – because times are changing. We saw a 26% increase in the number of women joining our industry last year. Many were in marketing, creative departments, and human resources. But there was also a 17% bounce in tech, which is my own particular area of expertise, and 13% in operations. Most significantly, as we look for a catalyst for change, we saw a bigger percentage of women placed in C-Level roles than we did men. 

In recent months, we’ve had women appointed as the chief marketing officer of a highly ambitious crypto-focused client, an HR director with a global brand, and a chief compliance officer for a business with major expansion plans this year.

They have been joined by a number of regional directors in European markets, senior programme managers, a finance director, and a director of casino product. These already successful women are going to shape the future of our industry.  

Recruitment quotas are now a legal requirement in some states in the US, meaning people of different groups must be included on shortlists, as well as an agreed percentage of women. There are many in Europe who would like to see them adopted here too, in order to consign ‘stale, male and pale’ to the workforce scrapheap. And yet despite the experiences discussed above, I’m not convinced.  

Many of our clients are already utilising the untapped and previously underutilised talent pool of women. Hearteningly, some of those leading the charge for further equality are also among the largest and most prominent names in our industry.

One group, holding several of the market-leading brands in the US and Europe, recently initiated an open submission agreement for qualified women in technical roles. We were encouraged to find exciting new female talent in a particularly male-dominated field, safe in the knowledge that even without the specific engagement of a relevant vacancy, the candidate would be considered for anything relevant that arose.

Allowing new ideas and perspectives to flourish like this gives clients a distinct advantage over their direct competition, whose echo chamber of conformity has the potential to stifle innovation. 

So, as we celebrate International Women’s Day, I would encourage you to look around your boardroom, or among your decision-makers, and ask yourself what you are missing.

It is not about ticking the political correctness box or being seen to do the right thing. It is about reinvigorating your company culture and welcoming original ideas that may have previously been overlooked or disregarded.

The future of this industry is already being carved out by prominent women, many of whom are helping businesses differentiate their offering. If you can afford to miss out, then good luck. At least it might give you more time to do the school run.  

This was a rise of 36.7% compared to revenue collected in full year 2020, which amounted to £4.41bn.

This growth was partly attributed to Flutter’s 2020 combination with The Stars Group, which meant that 2021 was the first year in which brands such as PokerStars came under the Flutter umbrella.

Sports revenue made up £3.77bn of the total revenue, up 25.8% year-on-year, while gaming revenue fell very slightly to £2.26bn.

Operations in the UK and Ireland, where Flutter saw a 29% market share, generated revenue of £2.06bn. This was £34m more than in 2020. Online UK and Ireland revenue generated £1.88bn of this, while retail made up the remaining £174m.

Revenue from Australia totalled £1.29bn, up 20.3%. Flutter’s market share increased by 7% to 50% in the country in 2021.

US revenue – mostly from the FanDuel brand – added £1.39bn to the total- more than double that in 2020, with a market share of 40%. International revenue, mostly made up of PokerStars’ operations, came to £1.28bn, down 12%.

The business said this was mostly due to regulatory headwinds in Germany and the Netherlands, markets that underwent major change in 2021.

Cost of sales totalled £2.26bn, £480m higher than in 2020. This left gross profit at £3.77bn, up 8.3% year-on-year.

Further sales and marketing costs, came to £1.50bn – £378m more than in 2020. Following this, the business’ contribution fell to £2.26bn, a decrease of 3.6%.

Further operating costs rose by 16.4% to £1.16bn, while corporate costs decreased by 16.5% to £101m. Considering this, earnings before interest, tax, depreciation and amortisation totalled £1.00bn, down 18.6% year-on -year.

After depreciation and amortisation costs at £255m, the total net profit for 2021 was £746m, down by 24.6%.

Average monthly customers came to 7.6 million for the year, up by 23.4% year-on-year.

“2021 was another strong year for the group as we made good progress against our strategic objectives and grew our recreational customer base to over 7.6m customers,” said Peter Jackson, CEO of Flutter.

“Overall, I am pleased with the progress we have made during 2021 and believe Flutter is exceptionally well positioned for future growth.”

Yesterday (28 February) Flutter debuted its sustainability initiative, the Positive Impact Plan.

“Yesterday we launched our new sustainability strategy, our Positive Impact Plan, which will see Flutter set a positive agenda for future change,” continued Jackson.

“Through this strategy we will build on the significant progress already made in areas such as safer gambling and measure our performance against defined goals to demonstrate how we are responsible leaders in our industry.”

Looking forward, 2022 revenue is set to be boosted by Flutter’s acquisition of Tombola, which was announced in November 2021 and finalised in January 2022. The business also agreed to acquire Italian lottery and gaming operator Sisal in December 2021.

The Gaming Industry for Ukraine initiative aims to raise £250,000 for people displaced by the war in Ukraine, with all proceeds being donated to Choose Love’s Ukraine Crisis Fundraiser.

In addition, the initiative is calling on companies with unused promotional merchandise such as power banks, towels, water bottles and clothing to donate these items to the aid effort.

More than 350,000 people have fled Ukraine in the past week and Choose Love is raising money to support the delivery of essential aid and services to those still in the country, as well as those fleeing the conflict. This includes emergency medical care, food, shelter, clothes, legal support, support for the LGBTQIA+ community and mental health support. 

The gambling industry has strong ties to Ukraine, with numerous operators and suppliers working in the country or having teams based there.

“Most organisations employ people from Ukraine or have done business in the region. They’ve shared a drink with them and above all have made friends with them,” a spokesperson from Gaming Industry for Ukraine said.

“The global gambling industry is a family and what has become clear over the past few days is the strength of responsibility it feels in providing support to the people of Ukraine, which is why we have started this campaign to allow us to work together to make it easier for that to happen.

“After extensive research, we concluded that Choose Love will make use of the funds raised in the quickest and most efficient manner by assisting those who need it the most. We know many have launched their own inspiring efforts, but we set this up for those who weren’t sure how to get involved or which fundraiser to choose for fast and effective support. By working collectively, we can also show how the industry can be a force for good.”

Choose Love is a charity dedicated to supporting refugees around the world. It pledges to do “whatever it takes to provide refugees and displaced people with everything from lifesaving search and rescue boats to food and legal advice”.

“We elevate the voices and visibility of refugees and galvanise public support for agile community organisations providing vital support to refugees along migration routes globally,” the charity states.

Clarion Gaming fully backs the campaign and encourages all stakeholders to donate what they can.

“As an events organiser, our whole purpose is to bring the industry together,” Clarion Gaming managing director Alex Pratt said. “Over the years Ukrainian operators and suppliers have been central to this. Ukraine is a centre for technological innovation that drives industry progress and, as of last year, a major new market for operators.

“In common with the rest of the world, what we’ve seen unfolding in Ukraine has shocked us as a team. This is a tragedy. But this industry is built around collaboration, and we should use that spirit to do what little we can to support our industry colleagues, their families, and the wider Ukrainian population.

“Please give what you can.”

You can donate to the Gaming Industry for Ukraine fundraiser here.

Companies that have surplus stock they can provide to the relief effort should contact Karolina Pelc: karolinapelc@beyondplay.io

Gross revenue for the six months to 31 December 2021 reached $33.1m, up from $19.2m in the previous year, while wagering revenue – net win from players who placed losing bets, minus winnings and promotional costs – jumped 68.8% to $26.0m.

Turnover was up 20.8% to $264.5m, with growth across all product offerings. Thoroughbred turnover hiked 59.5% to $136.9m, greyhound turnover 61.9% to $72.7m, harness racing turnover 61.1% to $24.3m and other sports turnover 63.0% to $30.6m.

BlueBet noted that 66% of all turnover came from its mobile platforms, including iPhone and Android offerings, while the remaining 44% was attributed to website and call centre activity.

The operator was also helped by a 46.5% year-on-year increase in the number of active customers, which increased to 45,087 during the first half.

Other highlights for the six-month period also included the launch of three new platforms for the Australian business, with new US platforms to follow in H2. BlueBet also secured a licence to launch in Iowa and agreed a deal an online sportsbook with the Wild Card Casino in Colorado.

BlueBet was also chasing a licence in Virginia, but withdrew its application after being deemed ineligible for a permit.

Cost of sales for the period reached $11.4m, leaving a gross profit of $14.6m, up 64.0% year-on-year.

In terms of other costs, employee benefits expenses were up 284.6% to $5.0m, advertising and marketing costs 223.8% to $6.8m and licencing, platform and subscription costs 381.1% to $1.4m. Other costs included $699,000 in administration expense, $165,000 in IT costs and $830,000 in other spend.

However, higher costs meant earnings before interest, tax, depreciation and amortisation (EBITDA) slipped from $4.7m to a loss of $315,000. 

After also accounting for $251,000 in depreciation and amortisation costs and $39,000 in finance costs, only partly offset by $164,000 in interest, this left a pre-tax loss of $441,000, compared to a $4.6m profit in 2021.

BlueBet paid $334,000 in income tax, which, after including $14,000 in additional income from foreign currency translation left a net loss of $761,000, in contrast to a $3.4m profit in the previous year.