Month: June 2022

Under the terms of the agreement, CQ9 Gaming’s portfolio – which includes slots, arcade and online card games- will be available for QTech Games players.

This will include CQ9 titles such as Good Fortune, 1945, Kronos, Zeus and Lucky Fishing.

“We’re excited to be teaming up with CQ9 Gaming, whose stunning graphics and gameplay chart near the pinnacle of the marketplace,” said Ulf Norder, CCO at QTech Games. “The QTech Games platform is equipped with the best games from the world’s leading suppliers – and CQ9 now joins this branching tree.”

“CQ9 understand the demand for regional specificity throughout Asia and beyond, making them a logical and long-term ally with which to team up.”

QTech specialises in producing games for emerging markets, while CQ9 is known for its Asian offerings.

A CQ9 spokesperson added: “This deal significantly broadens CQ9 Gaming’s international influence, opening up margin markets from Eastern Europe and Latin America for diversified growth.

“Our goal has always been to design intuitive and interactive live-dealer experiences that are customised for every generation of mobile end-user.”

Beason returns to the lottery group – which was spun off from Light & Wonder and sold to a private equity company in April – some six years after departing, having held the roles of enterprise chief technology officer and president of its lottery systems division between 2005 and 2016.

Beason was most recently group chief technology officer for Inspired Entertainment. His more than four decades worth of industry experience also includes seven years as CTO for The Hong Kong

Jockey Club and 12 years as vice-president of software at GTECH.

Pat McHugh, Scientific Games’ chief executive, said: “Steve’s experience and hands-on team approach make him a perfect fit to complement our executive leadership team. He’ll add immediate value across our technology, operations, content, and services offerings with a global view on commercially developing our business.

“Under Steve’s leadership, as we continue to accelerate growth, our digital product innovation will enhance each of our existing product lines expanding play and promotion of lottery games.”

McHugh added that the online lottery and sports betting markets are a major focus for Scientific Games, which is 100% lottery since the company was sold to Brookfield Business Partners in April 2022.

The deal, which was agreed in October last year, was worth $5.8bn (£4.4bn/€5.3bn) in gross cash proceeds and approximately $5.0bn in net after-tax cash proceeds.

“Our recent successes in Denmark, Hungary, Turkey, and Azerbaijan, where we deliver integrated programs for lottery instant games, draw games and sports betting across retail and digital channels, have created opportunities and an exciting need to expand our technology leadership across all lottery categories and consumer experiences.”

AGCO approved licences for each of Jackpot City, Royal Vegas, Ruby Fortune and Spin Casino, all owned by Super Group subsidiary Cadtree Limited. While many licences in the market are for only one year, each of these will last two years, until June 2024.

This follows Super Group’s sports betting-led brand Betway receiving a licence in April.

The four Super Group brands will be the latest casino-first entrants to the market, following on from approval for operators such as PokerStars, Casumo and SkillOnNet.

Ontario opened its market to operators other than the provincial lottery on 4 April, after the provincial government revealed plans to end the lottery’s online gambling monopoly in back April 2019. 

Last month, Super Group reported revenue of $344.5m (£274.4m/€322.5m) in Q1 – its first quarter as a publicly listed business. Revenue from Spin, though, declined by 4.5% $147.5m.

However, in its earnings call, chief executive Neil Menashe said it could be “tough to meet or exceed our 2022 revenue guidance”.

These new online games are in addition to DraftKings’ original offerings, which first launched in West Virginia in July 2020 after legislation to introduce sports betting in the state was passed one year prior. It was the first operator to enter the state’s market.

The newly-available live casino games are designed to be played with a real dealer, rather than a random number generator software. In addition, DraftKings will also offer its in-house developed multiplayer game Rocket to customers in the state.

This will be the second launch for the company in as many months, with the launch of its online sports betting and igaming products in the Canadian province of Ontario in May.

The news comes after DraftKings and self-exclusion software developer BetBlocker announced a responsible betting partnership last week.

Earlier this month Rush Street interactive added its sportsbook to its existing online casino at BetRivers in West Virginia.

In a blog post, Jansen looked back on a roundtable discussion on gambling in the House of Representatives, in which he participated.

This discussion noted the success of the country’s online gambling regime in channeling players to licensed offerings since the market launched in October 2021. However, it also noted areas where there was room for improvement.

In particular, Jansen said one issue that became obvious in the discussion was “the behavior of some legal operators, who – unfortunately – did look for the edges of the law”.

As a result of this, Jansen said he had his doubts about whether it was possible for the industry to regulate itself.

“This raises the question of the extent to which the sector as a whole is capable of self-regulation and individual operators are prepared to behave responsibly,” he said. “They should not be looking to make a quick buck without considering the potentially harmful effects of gambling.”

While Jansen did not mention particular areas in which he felt the industry needs to improve, marketing has become a major topic of discussion in the Netherlands. After a large amount of advertisements from operators when the market opened, legislators passed a bill that would ban “untargeted” advertisements for “high-risk” games.

This latest blog posts itself follows on from a recent speech in which Jansen suggested that the KSA may have to impose state-set loss limits. Currently, all players must set a loss limit, but there are no rules about how high these can be.

Noting this recent speech, Jansen reaffirmed the point that the government may soon step in with hard rules.

“I said there that games of chance providers do not take their duty of care seriously enough,” Jansen said. “I also said that if they don’t do this soon, further government intervention is the obvious choice.

Jansen also said that the KSA would launch “an in-depth supervisory study” where the body would look at the addiction prevention policies for all operators, “both on paper and in practice”.

“I still think that legalising and regulating online gambling was a wise decision,” he said. “After all, online gambling did not just start on 1 October, 2021. It was already there, but illegally. 

“The intention was and is to create a safe environment for people who want to participate in an online game of chance. Legal providers must ensure that safe environment exists. A regulator would prefer to see that this goes smoothly. 

“But if not, then it has to be done in a different way.”

He also added, though, that authorities would not issue more sanctions simply because of the listing.

Gibraltar was placed on the grey list – which comprises of jurisdictions under increased monitoring – last week, while Malta was removed.

Lyman said that he is “highly committed” to having Gibraltar removed from the list “in the fastest time possible”. He said that he believed this could be done quickly, as Gibraltar’s action plan was very short, with only two points.

Much like when Malta was first added to the list, Gibraltar has been presented with an action plan to amend any financial failings identified by the FAFT. Lyman said this was the “shortest action plan for any grey listed jurisdiction” and that Gibraltar could have continued to be monitored by monitoring body Moneyval, like the Isle of Man was.

Gibraltar will stay on the list for one year, until the re-evaluation stage. Lyman expressed confidence that the jurisdiction will be removed from the list after the year is up.

At the time, FAFT chair Marcus Pleyner said failures to apply sufficient anti-money laundering fines were a reason for the decision.

Yet Lyman said that Gibraltar authorities have been proactive in taking this type of action, stating that within the evaluation period – which took place between 2020 and 2022 – Gibraltar’s gambling commission reached six regulatory settlements with five operators, for a total of £3.7m.

He said that these settlements “were not considered to be positive and tangible progress,” adding that there was “no criteria provided as to what would have been deemed sufficient”.

Lyman instead said that Gibraltar is “in many respects a flagship jurisdiction” in how it has bettered its AML and terrorist financing systems, and placing it on the grey list after improving its AML and terrorist financing failings is “difficult to cope with”.

Going forward, he said that the decision means that the regulatory body must now conduct further onsite reviews of operators to ensure it meets FATF standards.

“We have to prove out that our regime is robust, he said. “Something we must accept we did not
manage to achieve in the current round. We must assault the summit again.
“In order to achieve this, it will be necessary to continue our supervisory programme as well
as to bring forward some onsite visits which may not have been anticipated until a later date.

However, Lyman said that the jurisdiction would not alter its standards in the wake of the grey list.

“What we will not do is artificially adapt our standards to accommodate enforcement cases.
That is not the Gibraltar way. I do not believe for one moment that the FATF are asking us to
do that.

“I do not see the objective as imposing more sanctions per se, but proving out the overall
effectiveness of our regime and imposing sanctions where necessary and in a proportionate
manner.”

The group released a trading update today as it outlined the finer details of plans to raise £1.7bn of funded debt to finance its planned acquisition of William Hill’s international business, which is expected to complete on 1 July.

It has forecast revenue to come in at £330-335m for the six months to 30 June 2022, which is down from revenue of $528.4m (£431.8m) in the same period last year.

888 said the performance so far this year is broadly in line with board expectations, with growth in certain European markets offset by the impact of additional safer gambling measures as well as the temporary exit from the Netherlands.

888 generated revenues of £690m and adjusted EBITDA of £109m for the 12 months ending 28 February 2022. It said that the international (non-US) business of William Hill generated revenue of £1.37bn and adjusted EBITDA of £238m for the 52 weeks ending 22 February 2022.

888 said in a statement: “The performance of both businesses largely reflects a continuation of the trends outlined in the prospectus dated 29 April 2022, with the positive impact of retail reopening and strong performances across a number of regulated countries being offset by the closure of the Netherlands and the impact of additional safer gambling measures within the UK online segments of both businesses.”

888 said it will market £1.02bn of debt today and enter into over £750m worth of loan facilities ahead of the completion its acquisition of William Hill from Caesars Entertainment. The cash will be used to finance the proposed acquisition, as well as servicing of the debt and fees owed by the group and paying fees related to the transaction.

The loan facilities will each mature in 2028, and will initially be held and funded by one or more of the underwriters. The group said it also expects to enter into a £150m revolving credit facility.

888 said in May that the £1.95bn acquisition price will also include an approximate £200m in equity and £200m in 888 cash.

The acquisition price was knocked down from an initally agreed £2.15bn, after it was revealed that William Hill faced a licence review in the UK.

In April, 888 reported an 18% year-on-year drop in revenue for the first quarter of its 2022 financial year. Revenue for the three months through to 31 March amounted to $224m (£172m/€207m), down from $273m in the corresponding period last year.

The bill “On Gambling in the Kyrgyz Republic” – passed on its third reading – would legalise a wide range of forms of gambling. As well as casinos, slot halls and retail bookmakers – which had all been legal in the past before casinos were banned in 2012 and the latter two banned in 2015 – online casino games will also be legal.

However, all gambling will only be available to foreign players.

Land-based casinos must only be set up in restaurants or hotel complexes. The restaurant must have at least 100 seats, and the hotel must have at least 20 rooms. Slot halls, meanwhile, must be separate rooms or buildings from any other type of business activity.

Casinos located in the Kyrgyz capital of Bishkek must have at least 10 gaming tables, while those elsewhere must have at least five. Slot halls must contain at least 30 machines.

Casinos and slot halls must also have a currency exchange bureau licensed by the National bank of Kyrgyzstan, as well as a number of security measures in place.

Use of credit cards and loans to gamble is prohibited, except for playing land-based slots.

Slot machines must also have a return to player (RTP) of at least 75%.

A body will be set up by the country’s Cabinet of Ministers to regulate gambling. The Cabinet will also set licence fees.

During consideration by the Committee on Law and Order, MP Dastan Bekeshev proposed removing provisions for online gambling from the bill, but this was rejected. Bekeshev also proposed banning online gambling outside of gambling establishments, but this was rejected as well.

Passed by the legislature, the bill will now go to the president, Sadyr Japarov.
If the bill is signed into law, it will come into force six months after its publication. The Cabinet will establish regulations for gambling within one month of publication.

Spillemyndigheden made the police report due to the business having not prepared a risk assessment of its sale of retail bets until 16 May 2022, in addition to a lack of written policies on its retail offering.

It also noted that the operator did not have any written business procedures and controls for its land-based offering in relation to money laundering until 25 May 2022.

The regulator stated: “ Spillemyndigheden notes that the rules on risk assessment, policies and business procedures are absolutely fundamental in the Money Laundering Act. By failing to prepare a risk assessment, Tipwin has not had a useful tool that has provided an overview and understanding of where and to what extent Tipwin is exposed to money laundering or terrorist financing, and what measures are in place are necessary to mitigate the risks involved.”

“Preparing a risk assessment of the company’s business model is a very fundamental means of limiting the risk of money laundering. Tipwin has thus also not had policies and operational procedures that stem from the risk assessment. By failing to prepare a risk assessment, the Gambling Authority has therefore handed over the case to the police investigation.”

Spillemyndigheden also issued an injunction for the breach of rules about procedures relating to online casino and betting operations.

The regulator has made money laundering a point of emphasis of late. Last month it released a statement reminding businesses in the sector that they are “obliged” to comply with regulations that prohibit financial interactions with “countries, individuals, groups, legal bodies or entities”.

In addition, in February, Spillemyndigheden reprimanded Reel Denmark, similarly over money laundering failures.  

The regulator gave Tipwin a three-month deadline to rectify the situation.

The 5-Star luxury resort, which is scheduled to open in 2026, will be known as Hard Rock Hotel & Casino Athens after the group replaced Mohegan Gaming and Entertainment on the project.

Local construction group GEK Terna and Hard Rock – which lost out to Mohegan during the initial tender more than two years ago – will collaborate on the building and operation of the resort, with work expected to begin within the first months of 2023 and last about three years.

Hard Rock will now develop the project, with a 200-metre-high tower as its centrepiece, that was initially rejected in early 2020.

“We are thrilled to announce the partnership with GEK Terna Group and further expand Hard Rock’s reach across the globe in the great city of Athens,” said Jim Allen, Hard Rock International’s chairman. “This development will bring over 3,000 jobs to the people of Greece and we look forward to bring our unique brand of entertainment to provide an unparalleled experience for guests of all ages.”

Plans for an integrated resort at the former site of Hellinikon International Airport were first revealed in 2019, with Mohegan and GEK Terna’s joint venture, Inspire Athens, winning the tender in early 2020.

However, Gek Terna later announced. Last October, GEK Terna deal to buy out joint-venture partner Mohegan Gaming and proceed with the project as Athens IRC. Since then, reports have suggested Hard Rock could become involved in the project.

The five-star Hard Rock development will include a casino comprised of 200 tables and 2,000 gaming machines and a tower that consists of more than 1,000 guest rooms and suites overlooking the waterfront or views across Athens to the Parthenon. Additionally, the project includes an entertainment venue, the highest outdoor rooftop terrace in Athens and a spa.

“This development will create a premium tourism spot, expected to offer employment to thousands of people, yield significant revenues to the public sector, and add value to Greece’s brand,” said George Peristeris, chairman and chief executive of GEK Terna.

“Along with Hard Rock we are realising a private investment of over €1bn, reaffirming our trust in Greece’s prospects and potential.”

The site of the former international airport has been vacant since 2001, with the tender process for a resort on the site having been delayed a number of times.