Month: June 2022

An ACMA investigation found the site was operating online casino style games, which are prohibited in Australia under the Interactive Gambling Act 2001, and therefore makes the site illegal.

Given that payments to the site are estimated to run into tens of millions of dollars, while data from Similarweb showed there are around 30,000 Australian visitors to the site each month, ACMA said the blocking would be one of the highest profile since it began using this regulatory tool in November 2019.

“We have received more complaints about thepokies.net this year than any other illegal gambling website, and it is clearly doing a lot of harm to the Australian community,” ACMA chair Nerida O’Loughlin said.

“Complaints have ranged from people who have lost significant amounts of money through to the site refusing to honour deposits and winnings. By blocking access to sites like this we are sending a strong message that the ACMA can and will take action to stop illegal operators from targeting Australians.

“If one of these sites decides to keep your money, and we know that happens quite regularly, there is nothing you can do about it.”

Aside from website blocking, the ACMA’s strategy to disrupt illegal gambling also includes industry engagement, targeted enforcement and public education. More than 160 illegal services have pulled out of Australia since the ACMA began enforcing new illegal offshore gambling rules in 2017.

Meanwhile, the ACMA has also requested ISPs to block access to a number of other sites it said have been operating illegally in the country.

Azure Hand, Abo Casino, Betroom, 777Bay, Space Lilly, Jet Casino, Katsu Bet and Winz were all singled out by the ACMA as being in breach of regulations. 

Acroud did not disclose details regarding the identity of the property it could purchase but did state that the acquisition comprises affiliation assets within the igaming market.

The group added that the acquisition would contribute over €9.0m million to its annual revenue and more than €4.0m to its earnings before interest, tax, depreciation and amortisation (EBTIDA).

Should the deal go ahead, Acroud would invest approximately €1.0m in shares and €4.5m in cash, payable over a period of 18 months. The cash payment would be financed via Acroud’s existing cash and future operational cash inflow. 

The potential acquisition is subject to a final board approval and the parties entering into a definitive purchase agreement.

“Acroud’s management is of the view that the potential acquisition will be accretive for both equity and debt investors in the company as it will strengthen both profitability and cash flow while reducing the company’s leverage going forward, which is in line with the revised financial targets,” the board said.

Acroud in May projected its full year 2022 EBITDA would reach between €8m and €10m. If earnings were to fall within this range, this would be at least 70.2% more than in 2021 when EBITDA came to €4.7m.

The group’s board also released targets for the future of the business, stating it is aiming for a 20% organic growth in EBITDA, on average, during the financial years from 2023 to 2025. This would suggest EBTDA of between €13.8m and €17.3m by 2025.

The business is also aspiring to decrease its net debt to adjusted EBITDA ratio to a maximum of 2.5 times by December 2025, by conducting operations “at low financial risk”.

Later in May, Acroud reported a year-on-year increase in revenue and net profit for the first quarter of its 2022 financial year, with further growth forecast for the remainder of the year.

Revenue for the 12 months through to 31 March 2022 amounted to €7.0m, up 25.0% from €5.6m in the same period last year, while net profit jumped 649% to €1.2m.

Brown only joined the business earlier in the year as chief operations officer but will now move into her new position with the B2B supplier.

Brown has experience across operations, R&D and commercial management, having worked for software companies across industries such as telecommunications, financial technology and food and beverages.

“It is a tremendous honour to be appointed CEO of Push Technology at such an exciting time; I am committed to ensuring we continue to build on the momentum and success we have achieved in the last 12 months,” Brown said.

“Organisations everywhere are seeking strategies to shorten development timelines, improve operational efficiency, and go-to-market ahead of the competition with their event-driven applications. We need to stay laser focused on the real time data needs of our customers as they look to undertake digital transformation initiatives.”

Push Technology executive chairman John Pocock added: “There’s no better person to lead Push Technology than Grethe as we look to broaden our global footprint. She has an incredible wealth of experience and expertise and her impact at Push has been immediate. 

“Her energy and enthusiasm are a real asset to the company. She now has the opportunity to take the company to the next level and drive our aggressive growth plans.”

The two-year deal comes into effect immediately and will cover the 2022 Rugby League World Cup, which is due to take place in England this autumn.

Betfred’s affiliation with rugby league in England stretches back to 2017, when it began its title sponsorship of the Super League, while it also has deals with the Championship, League 1 and the Women’s Super League. 

The bookmaker then extended this support to the men’s, women’s and wheelchair teams for the 2021 World Cup.

“We are proud of the successful relationship with Rugby League that we have built at all levels since we became the title sponsors of the Betfred Super League in 2017, and to be principal partners of the three England teams preparing for a home World Cup is a perfect fit,” Betfred chief executive Fred Done said.

“Rugby League is such an inclusive sport and it’s a great honour for us to be involved at all levels, as we look forward to the country getting behind England Rugby League.”

English Rugby Football League chief executive Ralph Rimmer added: “Betfred have been outstanding sponsors for the sport of Rugby League for the last five years, sticking with us through the challenging times of the Covid-19 pandemic, and this new partnership with our three England teams underlines the strength of that relationship. 

“They are a proud English company with roots in the north, and let’s hope we can celebrate the partnership with England teams reaching all three World Cup Finals in Manchester on the weekend of 18-19 November.”

The regulatory failures documented by the report places into stark relief the first years of legal sports betting in the state.

“During the first year of regulating sports betting, the Division of Gaming, within the Department of Revenue, did not have an effective process to investigate sports betting operations for temporary licensure, or to collect sufficient documentation to determine if sports betting operations’ monthly tax filings were accurate,” the report states.

The audit found the commission issued the majority of operators only temporary licences. With these licences, the operators receive the same privileges as permanent licences but with far less stringent background check procedures.

“As of March 2022, 35 out of the 39 licensed retail and internet sports betting operators held temporary licenses, which the Colorado Limited Gaming Control Commission issued on the basis of limited background investigations the Division conducted.”

“While a temporary licence allows operators the same privileges as a permanent licence, the Division’s background investigations may not have provided assurance that the operators were suitable for licensure.”

The report goes on: “The Division did not complete minimum background investigative procedures for the five licenced operators we sampled, and the procedures that were completed may not have provided relevant information needed to fully inform the Division’s licensing recommendations to the Commission.”

There are also concerns of what appears to be financial irregularity on the part of the operators that the Division failed to investigate: “We sampled 22 sports betting tax filings from May 2020 through April 2021 and found wide variation between the amount of wagering activity (i.e., bets, free bets, and payments to players) that operations reported after each gaming day compared to the totals they reported in their monthly tax filings.”

“While some variation is expected since wagers may be altered, voided, or canceled after they are placed, operations do not always submit supporting documentation to substantiate changes to their reported net sports betting proceeds. As a result, the Division could not demonstrate if or how it verified that the tax filings were based on accurate data.”

The report comes out in the context of a period of explosive growth for Colorado sports betting, jumping 68% year-on-year in March.

CPC Bucks County, which operates the Chickie’s and Pete’s restaurant at Parx Casino in Bensalem, received the largest penalty of $17,500 in relation to three incidents involving six patrons who were overserved alcohol, leading to visible intoxication of each individual.

Stadium Casino Westmoreland, operator of the Live! Casino Pittsburgh, was fined $7,500 for allowing a self-excluded individual to play table games and receive a cash advance at the facility. PGCB regulations state casinos must identify self-excluded patrons and refuse any gaming privileges and other gaming-related activities.

In addition, a $7,500 fine was also issued to TDN Money Systems, a supplier of automated coin and currency handling equipment, designated by the PGCB as a manufacturer designee, for failing to timely notify the PGCB over a change of control when the company divested to two other licensed individuals.

Meanwhile, the PGCB added a further six adults who left children unattended at a casino to its Involuntary Exclusion List, which prohibits individuals from entering and gambling at all Pennsylvania casinos. 

One man was found to have left his eight-year-old daughter unattended in the lobby of a casino while he placed sports wagers, while the uncle of a 10-year-old boy was left alone in a car park for eight minutes while he placed bets.

A father left his 10-year-old boy in a vehicle in a parking lot for six hours while he gambled at a casino, while another man left his children, aged three, five and 12, in a vehicle in the car park when he placed sports bets for 43 minutes.

In another incident, a mother left her children aged three, four and 12 in a casino hotel room while she gambled in the casino for 94 minutes, while another women left her 11-month-old and two-year-old children in a vehicle in the parking lot while she played slots for nine minutes inside the casino. 

The offenders may also face criminal prosecution for endangering the welfare of a child or children.

Elsewhere, the PGCB unanimously voted to renew the Category 1 Racetrack Casino operator’s licence for the Washington Trotting Association, operator of the Hollywood Casino at the Meadows in Washington County.

The seven-member Board determined that the Washington Trotting Association had fulfilled the obligations under its existing licence and therefore qualified to have its licence renewed for an additional five-year period.

Since its opening in June 2007, Hollywood Casino at the Meadows has generated $3.5bn in gross revenue from the play of slot machines, table games and sports wagering, resulting in a return of approximately $2bn in gaming tax revenue. 

Under the four-year deal, branding for the Dutch-facing Kansino site will appear on the front of AZ Alkmaar players’ shirts.

Kansino will also support the clubs social and community programs within the new Alkmaar Zaanstreek Foundation. Incidentally, Foundation branding will replace the Kansino logo on the front of replica shirt for fans under the age of 18.

“This collaboration lays a solid foundation for the future and gives AZ the space to take another step with its ambitions,” AZ general manager Robert Eenhoorn said. “The fact that Kansino is also driven to make an important contribution to the social objectives of our club shows what they consider important as a company.”

Play North chief executive Klas Winberg added: “Increasing the brand awareness of Kansino will help consumers to play in a safe environment. The regulated gaming market leads to better protection for consumers. 

“In addition, we are convinced that with extensive partnerships such as this we can give Dutch sport an extra boost.”

The deal was possible as Play North holds a licence to operate Kansino in the Netherlands. Dutch law states advertising or marketing online gambling of any kind is limited to operators that have a licence.

Last month, Dutch gambling regulator de Kansspelautoriteit wrote to more than 50 affiliate sites active in the country to remind them of the laws regarding the advertising of online gambling.

The Second Standing Committee of the Legislative Assembly published its new version of the law, which is now set to be voted upon for the final time before it may come into law.

Among the most significant changes from the version that was approved in the first reading by the Legislative Assembly is a rule that gives the Chief Executive of Macau more discretion over the taxes operators may pay. In particular, it said tax breaks may be granted to businesses if it is believed this will help attract foreign customers.

“The Chief Executive may, after consulting the Bureau of Gaming Supervision [DICJ], grant a reduction or exemption to the concessionaires in the payment of the contributions[…], for reasons of public interest, namely for reasons for expanding customer markets in foreign countries.”

However, the bill also includes a subtle tax increase.

Currently, alongside the 35% gaming tax rate, gaming concessionaires in Macau are subject to a tax of “up to” 2% of GGR for “promotion, development or study of cultural, social, economic,

educational, scientific, academic and philanthropic causes”.

In addition, they must pay up to 3% of GGR towards “urban development, tourism promotion and social security”.

In practice, all operators paid below these upper limits, however.

However, the new version of the law omits the phrase “up to”, meaning that operators will effective be subject to higher taxes than before.

The new version of the law also keeps many of the same major points from earlier versions. For example, there will still be six concessionaires and no subconcessionaires in the market, effectively keeping the number of operators the same.  

Concessionaires will also face new limits related to the number of gaming machines and tables they may operate, with these limits based off of GGR per machine or table. The exact GGR minimums have not yet been set, however.

In addition, junket businesses will only be allowed to work with one concessionaire each.

Work on the gaming reform bill began last year, with a consultation that considered major changes to the market.

At the same time, the Legislative Assembly is also considering another bill that deals specifically with junkets. This bill would introduce requirements such as a maximum commission cap, and was approved at the first reading in April.

The regulator sent letters to this effect to both gambling operators as well as advertising organisations to remind them of the new rules imminent implementation.

Once the stricter rules are in effect, the KSA say they will monitor whether operators are in compliance with the ban, with threats of enforcement if the new rules are not respected.

In February, the KSA issued warnings to operators over ads aimed at young people, after the regulator found three operators intended to advertise through platforms primarily used by children and young people.

The changes are part of a wider revaluation of gaming advertisements in the country in the wake of the launch of the Dutch regulated igaming market in October last year. In January the KSA warned of a crackdown on ads, followed by Dutch minister for legal protection Franc Weerwind in March promising to bring in stricter ad laws, and mentioning the role model ban specifically.

The framework would allow up to a total of €250m to be eventually issued.  

While Betsson did not say what the money will be used for, it comes as the business looks to expand in newly regulated North American markets. The operator launched its Betsafe brand in Colorado in April.

The interest rate for the bonds is set at 6.5% plus three months of the standard EU inter-bank rate (EURIBOR), a common interest rate standard.

Betsson chief financial officer Martin Öhman said on the issuance: “I’m pleased to see the large interest for our new bond from a broad range of investors, including Nordic and international institutions. This signals confidence in our business strategy, which continues to generate profitable growth and stable cash flows.”

Betsson also announced the results of its tender offer to the holders of the company’s outstanding bonds, totaling SEK 1bn (£79m/$97m/€93m) which are set to mature on 26 September. The offer expires on 15 June 2022 – and will amount to 100.5% of the nominal value per bond as well as the accrued and unpaid interest.