Month: July 2022

In May, Interior Secretary Fred Matiang’i directed the BCLB to ensure that any betting operators applying for new or renewed licences had all received clearance from the Kenya Revenue Authority, Financial Reporting Centre, Inter-Agency Security Team and the country’s Communications Authority.

As a result, the BCLB produced a report on the compliance status of betting, lottery and gaming licensees.

“The report reveals that the majority of these firms have not complied with the stated requirements,” it said. “Consequently, their applications were not successful.”

The BCLB added that it told all of the operators in question that their applications may be reconsidered if resubmitted after all of the requirements are met.

Alongside the review into licence applications, Matiang’i’s May statement also called for a crackdown on unlicensed gambling, requesting that the BCLB draw up a list of unlicensed sites for the Communications Authority to block.

The union tentatively agreed to the deal at 11 pm the night before, with an official ratification vote to follow.

While the exact terms of the settlement have not been revealed to the press, the union was seeking large raises to keep pace with the rising cost of living.

Labour leaders and activists have spoken of the deal in positive terms.

No agreement has been reached with the Hard Rock Casino, the last of the five casinos in the city agree to a settlement – with a Sunday strike deadline in place.

Unite Here estimated that the casinos could risk losing $1m (£813,153/€943,067) per day in earnings if the planned strikes went ahead.  

In a statement released to Nasdaq Stockholm, the fantasy gaming provider said it had identified previously unknown financial commitments which relates to the financial year 2021. The SEK17m ($1.7m/£1.4m/€1.6m) commitment will impact cash flow for the current quarter and have a negative effect on profit and loss in the quarter of around SEK5.5m.

To secure the company’s working capital, Scout said it has received guarantees from three of the business’ major shareholders and Niklas Braathen, the newly appointed chairman, for bridge financing worth SEK20m. It is the second such bridging loan taken in a month, with cash also sought in late May, and comes just weeks after the departure of chief executive and president, Andreas Ternström.

Scout also plans to carry out a fully secured rights issue of SEK100m during the summer and has published restructuring plans in which it will slash headcount in order to achieve costs-savings of around SEK32m per year.

Scout said the guaranteed bridge financing means that the company has the cash to run the company at least until the rights issue has been completed.

Niklas Jönsson, Scout’s acting chief executive, said: “It has been very strenuous to find another historical deficiency in the company’s accounting and internal control, which is totally unacceptable. We have taken decisive actions during the last months to ensure the quality within the company’s administration. We feel confident that the identified deficiencies are the last in the internal due diligence process which have been conducted.”

Scout said headcount will be reduced from 131 full-time employees to just 63 – with 68 people to lose their jobs. The reductions will be made within all departments and in both operational offices located in Bergen and the Ukrainian city of Lviv, as well as within the employees who are remote employees.

It said a new management group will be formed which besides the chief executive will contain management positions for finance, sales and product. The changes are being made to create a more streamlined and executive organisation, which is adapted to the group’s operational levels during the coming year.

Niklas Braathen, Scout’s chairman, said: “It is a particularly difficult decision, especially with regard to our employees in Lviv related to the situation prevailing in Ukraine. It is with great sadness that this happens but is unfortunately necessary to ensure the company’s continued existence. The company’s staff group has been allowed to grow, seemingly uncontrollably, for several years.”

Scout’s board will use an extra general meeting to make a proposal for a SEK100m rights issue guaranteed by commitments from the shareholders Knutsson Holdings AB, Novobis AB, Scobie Ward and TopLine Capital LLC.

The funds from the share issue will in part be used to repay the bridge financing amounting to SEK40m and in part concerning the restructuring measures. The proposal of the share issue is that it will be performed at the level of 0.50 SEK per share and will include about 200,000,000 new shares, therefore diluting the value of current shares by 90%.

Scout’s share price was down almost 40% this morning at just SEK1.15.

Last month, Scout reported a 10.4% year-on-year drop in revenue for the first quarter of its 2022 financial year, a period in which the fantasy gaming provider began a restructure of its business.

Total revenue for the three months through to 31 March 2022 amounted to SEK12.0m (£975,986/€1.1m/$1.2m), down from SEK13.4m in the corresponding period last year.

Scout initiated a cost review in March 2022 after former CEO Ternström said he was “not at all satisfied” with the supplier’s slow growth and rising expenses in Q4. Expenses more than doubled to SEK51.0m compared to the prior period. 

Ternström then left the business last month.

League of Legends is a game of change. Adapting to patches has been a challenge for professionals since the game was launched. Champions, items, and strategies get weaker or stronger every couple of weeks. If a team wants to get an edge over the competition, it is essential for them to find out what works in the current meta. Ideally, they would want to find that out before the meta even exists.

At Bayes Esports, we are facing the same issues as professional players. When we create betting odds, we apply machine learning to predict which side is going to win or get an objective. The probabilities we produce depend on what our models believe is strong or weak. The more recent the data is, the better the current meta is reflected in our algorithms. In a perfect world we would want to train our models just on yesterday’s data. But unfortunately it takes way more matches than are played in one day in League of Legends.

It’s tempting then to instead use data from the last five years. This, unfortunately, does not work either. Factors like champion strength can change with each patch or whenever a counter pick is discovered. What is needed are models that understand that the game is constantly evolving while also being resistant to sudden changes.

So how relevant is the data from two years ago? Where is the sweet spot between getting enough matches and maintaining relevant data for our models to work best? We conducted a small research project with some exciting results.

Our experimental setup was very straightforward. Since League of Legends patches last roughly two weeks, we divided our dataset into two-week slices. We then repeatedly trained a model that we would normally use to create map winner odds, giving it data from more and more patches. The results were always tested on the most recent matches, which were not part of the training set. We repeated this experiment with different starting times, equating “now” for example with January 2022.

If the game two years ago is very similar to what it looks like now, we would expect the overall accuracy to increase as we keep adding data. If patches completely change the game, then we would expect there to be a sharp cut off in prediction accuracy. It is important to do similar research on different periods, because the changes in the game are not consistent.

In order to evaluate model performance, we used a Brier score. This is a metric to measure prediction accuracy. Roughly speaking, the lower the Brier score, the more accurate the model. Comparing Brier scores we consider a difference of at least 0.005 to be significant.

Our research shows that a model predicting map winners trained on 5000 games from 21 patches (~10.5 months) is the most accurate. We also clearly see that the size of the dataset from only the most recent 12 patches is too small. It is important to point out that the differences in accuracy are mostly minor, but they are statistically significant. It’s precisely these tiny differences that may win or lose you a bet against a clever punter who has studied the current meta. 

What’s also important to look at is how models trained on different amounts of matches behave. One interesting insight is that different patches will favour different sides. In the plot below, the model trained on the most recent 12 patches is favouring the red side more than the ones trained on 36 or 62, as we see probabilities starting not quite at 0.5 – the case where both teams are equally likely to win.

This, too, makes sense if we think that one side in LoL does have an inherent advantage, and this side can very well change between patches.

The model trained on less patches is more likely to favour the redSIDE team, suggesting that recent patches benefIt the redside team

Ultimately our research has shown that the optimal timeframe will always be between 6 and 12 months worth of patches and around 3000 games will be the minimum sample required in order to obtain the best predictions.

Intuitively, this makes a lot of sense. The game might change abruptly with a patch, but it takes time for the player population to adjust and develop a new meta. And not all patches will be equally significant for the competitive scene either.

With the unique data we have it is important to get the most out of it. The game evolves. If Bayes Esports wants to keep its position at the forefront of the esports betting industry, we have to make sure to stay connected and aware of the changes to produce the most accurate models and odds.

The regulator specified a number of failings – including a lack of risk assessments and defects in company policy.

The first reprimand dealt with violations of section 7, subsection 1 of the Act. The regulator found that Casino Copenhagen had made an “incomplete” assessment of their potential risks as a business, meaning that certain elements – including payment methods and customer types – were not adequately risk assessed.

Failings B and C dealt with a lack of written business procedures. Casino Copenhagen did not have full descriptions of how business-related tasks should be carried out. Procedures were incomplete in relation to politically exposed persons, customer due diligence and duty of investigation. Similarly reprimand C was issued because the casino’s lack of “sufficient” material meant that it was not possible to check whether the operator had the appropriate policies in place.

Reprmand D states that the material Casino Copenhagen used to educate its employees was “of a general nature”, and did not have sufficient anti-money laundering information for its employees.

The final failing dealt with section 35 of the Act. It addressed a lack of anonymity in Casino Copenhagen’s whistleblower scheme, which could have discouraged employees from speaking out.

Spillemyndigheden also issued an order for Casino Copenhagen to update its risk assessment policies to include assessing the confirmation of winnings.

The regulator stressed that Casino Copenhagen did not have an obligation to act on the prosecutions, as the casino has already submitted an updated risk assessment, business procedures, policies, teaching material and an updated whistleblower scheme.

However, Casino Copenhagen must submit an updated risk assessment that considers assessing the confirmation of winnings.

“The Gambling Authority notes that the rules on risk assessment, business procedures, policies, teaching materials and whistleblower scheme are very basic in the Money Laundering Act, and violation of the rules leads as the clear starting point to injunction or reprimand or, in serious or repeated cases, to police reporting,” the regulator said in a statement.

Last week Spillemyndigheden reported German operator Tipwin to police for violations of Denmark’s Money Laundering Act.

Yana Khaidukova, managing director of Slotegrator, said that the company will seek to network, keep up contacts and look at new products on the market during the show’s three-day run.

“iGB Live! is one of the most important gaming events in our calendar,” said Khaidukova. “We look forward to taking part in it every year, and it’s a great success each time.”

“This year, like always, we expect to make new connections, catch up with partners and clients and see what new products are on the market.”

Khaidukova praised the quality of iGB Live! each year, remarking on the fact that the event was among the top 2% of international B2B events in a recent independent survey.

“It’s a high-quality event, it’s very well-organised, the people and companies participating are very cool, everyone has interesting insights to share — so I’m not surprised at all to hear it’s in the top 2%,” she continued.

“iGB Live! is one of the industry’s biggest shows, and it gathers together so many gambling companies and professionals, so for sure it’s right at the top of our list of favourite events.”

Khaidukova said that Slotegrator is focused on targeting Africa, Asia and Western Europe with its offerings, in addition to Eastern Europe. She says that the ability to network has been a powerful tool for the supplier since the return of live events.

“At Slotegrator, we believe in the power of personal contact, offline networking, and face-to-face meetings, so it was a great pleasure to be able to participate in iGB last year. People missed offline events for sure.”

To register for iGB Live!, click here.

The effort was led by Dina Titus and Guy Reschenthaler, co-chairs of the Congressional Gaming Caucus, and was signed by 26 other representatives.

The letter described offshore sportsbooks as “predatory operations” that “expose our constituents to financial and cyber vulnerabilities; do not have protocols to address money laundering, sports integrity, or age restrictions; and undermine states’ efforts to capture much needed tax revenue through legal sports betting channels”.

The letter called out three well-known offshore operators by name, saying that sites including Bovada, MyBookie and BetOnline “have developed sophisticated platforms that are nearly indistinguishable from those of legal providers”.

These sites – it also noted – are “frequently cited in reputable sports media channels”.

The letter argued that the player protections that exist for regulated sites are “non-existent” in the unregulated sector.

“The illegal operators are not interested in helping bettors wager responsibly by providing checks like time limits, budgets, or self-exclusion,” it said. “They do not adhere to federal or state financial regulations, so consumers can never be sure if their information is secure or if they will receive their winnings. These operators are not bound by age restrictions, meaning children and young adults can be exploited by these websites. 

“Finally, these illegal operators do not help promote the integrity of sporting contests by sharing with sports leagues information related to unusual betting patterns or insider betting, as many regulated sports books do.”

The letter called on Garland and the Justice Department to “identify the worst actors, investigate and prosecute them, and educate Americans on the dangers associated with illegally wagering on sports”.

In addition it called on the Department to issue a response by 6 September, which is the Monday before the 2022 NFL season begins.

American Gaming Association chief executive Bill Miller praised the congresspeople for taking this stance.

“Offshore gambling websites are a significant threat to consumer protections and the economic benefits legal gaming provides for communities across the country,” he said. “Eradicating these websites, and all forms of illegal gambling, is one of AGA’s top priorities.

“After our initial outreach to the Department of Justice in April, today’s letter to Attorney General Garland demonstrates the broad interest in addressing illegal gaming. We are grateful to Gaming Caucus Co-Chairs Reps. Titus and Reschenthaler for their leadership and the Members who joined this call to action.”

The KSA said it would closely monitor compliance with the ban with enforcement to be immediately taken in the event of a violation.

A role model is defined as a person who has achieved some form of fame – such a model, influencer or football player.

Since the launch of the regulated igaming market in Netherlands in October last year there has been a national conversation over igaming advertisements.

In January, the KSA said there would be a crackdown on ads – while in February, the KSA sent warnings to operators, after the regulator found evidence three operators intended to advertise through platforms mainly used by children and young people.

In March, Dutch minister for legal protection Franc Weerwind mentioned the role model ban as part of a promise to bring in stricter advertising laws.

The new rules coming into effect comes just days after KSA chair René Jansen questioned whether self-regulation is even possible in the gambling sector.

Attorney-General Shannon Fentiman said the use of China UnionPay debit or credit card facilities and other arrangements to help facilitate gambling by Chinese nationals despite Chinese currency movement restrictions would be among the terms of reference for the review, which was announced earlier this month.

The review will also consider Star’s commitment to anti-money laundering responsibilities, management of VIP patrons, management of exclusions and approach to gambling harm minimisation.

Fentiman has appointed former judge Robert Gotterson to lead the review into The Star Gold Coast and the Treasury casinos in Queensland. The inquiry will have all the powers, authorities, rights, privileges, protection and jurisdiction of a commission of inquiry.

“There have been serious allegations made, along with a number of public inquiries and regulator investigations over recent years,” Fentiman said in a statement.

“Given the weight of evidence that has emerged regarding the operations of The Star Sydney and the shared governance and operational arrangements of Star Group entities more broadly, it is important the inquiry can seek information from anyone it sees fit.

“His Honour will be able to conduct interviews, and direct questioning of Star employees or other relevant persons should he consider it necessary, as well as review the evidence and the findings of the Bell Review and ongoing Office of Liquor and Gaming Regulations’ investigations.”

Fentiman announced plans for the probe earlier this month due to concerns over money laundering and integrity. At the time, she said that the police and casino regulator will continue with their separate investigations into operations at Star’s properties. Victoria’s gambling regulator recently fined Crown Resorts some AU$80.0m (£45.5m/€53.3m/US$57.5m) in relation to payments made using China UnionPay cards.

Responding to confirmation of the Queensland probe earlier this month, Star said it would cooperate fully with the review.

Star is already the subject of a similar review in neighbouring New South Wales. The initial review launched in June of last year after concerns were raised about The Star Sydney’s interactions with junkets and money laundering prevention measures. This was then 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.

The masterclasses will each provide a detailed look at once specific topic.

Justin Deaville, who has worked with many of the UK’s leading brands, including Aviva, PaddyPower, Ladbrokes, SkyBet, the Financial Services Forum and the Foreign Office will lead the Advanced SEO Masterclass on 6 July. This workshop and discussion will look at changes from Google’s May core update and focusing on taking advantage of Google features to outrank the competition.

The masterclass is for advanced SEOs, and requires delegates to already have a solid understanding of the SEO basics.

The second masterclass, on 7 July, will be led by Eric Frank of Odds On Compliance. As the former group compliance officer for The Stars Group, Eric managed global compliance teams and served as the principal legal advisor for regulatory, licensing and compliance matters in the United States, Latin America and Asia.

His masterclass, ‘Demystifying the USA affiliate license’ is a 3-hour, step-by-step workshop demonstrating on receiving affiliate licences in the United States. It will show through state-by-state examination, cost benefit analysis, and walk through a demonstration application.

The masterclasses are curated by Clarion Gaming non-executive chairman Michael Caselli.

“iGB Masterclasses are in-depth lectures, made to small groups of attendees who are interested in learning everything they can about a key topic or how to solve a specific problem,” he said. “Masterclasses are very specialized and niche, and it is precisely that which makes them so valuable for our attendees that are already experts in their fields. There is nowhere else in our industry where experts can gather, learn, examine and discuss their topics at such a level. I believe that it is our duty to continue to deliver content that provides insight and value to our most loyal and expert guests.

“Being able to work with experts such as Justin Deaville and Eric Frank for months to create the highest level content we have ever organized has been an education in itself. Anyone attending either masterclass will leave impressed, once again, with what they can learn at an iGB conference.”

To register for the 30-place capacity masterclasses click here.