Month: September 2022

Rumours of a deal first emerged in August, with PlayAGS confirming that it had been approached regarding a potential $370m (£305m/€361m) takeover from an unnamed source.

At the time, the Reuters news agency reported that sources close to Inspired said the company had offered $10 for each PlayAGS share.

Yesterday (8 September), in a filing to the US Securities and Exchange Commission, PlayAGS stated that discussions of a takeover had ended.

“As previously disclosed, on 12 August 2022, PlayAGS indicated that it was in preliminary discussions with a third party that Reuters had identified as making an offer to acquire the company,” read the statement. “Such discussions have concluded without a transaction.”

On the day the news of the deal broke, PlayAGS shares shot up by 25% to $7.25.

Today (9 September) PlayAGS shares are trading up 2.97% at $6.25 per share, with shares in Inspired Entertainment up 1.59% at $11.52 per share.

In the first half of the year, Inspired saw its revenue increase to $71.3m as a result of expansions in virtual sports.

Under the terms of the agreement, Genius will provide MaximBet with its PreMatch, LiveData and LiveTrading product offerings, which deliver live feeds and pricing options.

The UK-based business will also supply sports content for MaximBet, including NASCAR, NCAA, EPL, FIBA and the NFL.

The operator will have access to Genius’s NFL product, which includes real-time statistics from the league and the official sports betting data feed. MaximBet also will have access to the official data feed for betting on NCAA sports.

Genius announced similar sports deals with ScoreBreak and Tipsport in July, soon after becoming the official distributor of NCAA data.

MaximBet CEO Daniel Graetzer said that the deal will help the business facilitate its North American growth.

“A premium betting experience requires the best and most exclusive content, which makes Genius Sports the ideal partner for MaximBet as we ramp up for growth across North America,” said Graetzer.

“We are the only true lifestyle sportsbook, offering players incredible, money-can’t buy access to Maxim parties, courtside seats and more. Combining that with the real-time data our players need gives them a full offering not found elsewhere in the marketplace.”

Sean Conroy, Genius’ executive vice-president, North America added: “Across official data, trading and highly targeted marketing, Genius Sports will play a central role in powering MaximBet’s exciting growth across the US.”

“We’re excited to help engage and expand MaximBet’s passionate customer base.”

In Q2, Genius exceeded its revenues and earnings guidance, but still made a total operating loss, despite the amount being slashed drastically from the previous year.

It comes five years after the partnership was first established, and sees FanDuel become an official sportsbook partner of the WNBA. FanDuel had already operated the WNBA’s official daily fantasy game, as its official daily fantasy partner.

During future seasons, FanDuel odds will now feature on a number of WNBA’s digital channels.

Read the full story on iGB North America.

The industrial action has been undertaken by public sector union, Syndicat de professionnelles et professionnelles du gouvernement du Québec (SPGQ), following a breakdown in negotiations between the interested parties.

In a statement on its website, Loto-Québec criticised what it called “pressure tactics” used by the employees represented by SPGQ.

While a last minute deal had been agreed in principal between union leadership and government negotiators on 25 August, it fell through when the terms were put to a ballot amongst SPGQ membership.    

Loto-Québec said that it decided to postpone the lottery’s deployment because it could not guarantee a successful roll-out, due to the strike.

As a result, Lotto 6/49 operations will be suspended after the 10 September draw, until further notice.

From 11 September, validation of Lotto 6/49 tickets will not be possible either at retailers or via the operator’s phone app. In a statement, Loto-Québec advised ticket holders to keep their tickets until the situation is resolved.

In a 7 September open letter accompanying the strike, SPGQ vice-president Lydia Martel emphasised the importance of Loto-Québec’s staff.

“Relying on Loto-Québec’s internal expertise means ensuring that the population will be able to have access to basic services,” she said. “The crown corporation cannot take the risk of losing it and depriving the government of this important revenue.”

“It is the expertise of its professional staff that allows Loto-Québec to fight against illegal gaming sites by offering the population quality products that are safe for users. In doing so, it redirects towards the state sums that would have ended up, in particular, in the hands of organised crime.”

The new regulations coming into force on 12 September clearly put into writing what the Gambling Commission expects of operators when it comes to their player monitoring obligations. This includes how they identify vulnerable customers, the indicators of harm they are required to look out for, when to use automated systems and processes and how to evaluate the impact of customer interactions.

Until now, expectations have been open to interpretation and this is why some operators have been hit with fines for failing to meet the standards expected by the regulator.

Properly mapping out processes and introducing automated systems will be key to complying with these new rules. The entire customer journey must be fully documented so that operators can evidence how they are monitoring players and what happens in the event they hit a threshold or trigger a marker or markers of harm.

Of course, the challenges for operators will be doing this without negatively impacting the user journey and experience – too much added friction and players are likely to jump to a rival brand.

In addition to the changes on 12 September, the industry is waiting with bated breath to see what will come from the government’s review of the 2005 Gambling Act. It is clear that affordability will be the main focus, and this could lead to operators having to go to quite extreme lengths to ascertain whether a player can afford to gamble at certain levels or not.

Even for those using the latest technologies, I can see a lot of manual action being required here and that will undoubtedly add more friction to the user experience.

My fear is that this will ultimately push players to unlicensed sites where there are little to no protections in place. So, the opposite of what the government and the Gambling Commission are trying to achieve here.

A delicate balance

It is becoming more and more expensive to onboard customers with operators facing incredibly high levels of competition. But by not aligning with regulations, they face a significant risk of fines or even losing their licence.

To strike the balance between onboarding and compliance, it is important to fully document the onboarding process and combine this with automation. This should spell out exactly what is done at every single player touchpoint while engaged with the operator’s online sportsbook or casino.

Solutions such as ours hard-wire risk levels and all but remove reliance on humans to mitigate exposure to human error. If the player triggers a marker of harm, the required action happens automatically. This means that compliance managers can sleep soundly at night.

Automation also reduced friction during the player onboarding journey by ensuring that it is non-evasive – this, in turn, leads to a steep reduction in drop-offs. In short, time is money for operators, and they can save money and resources by leaning on automation to do much of the heavy lifting. That in turn frees up capacity to support the small number of players that really are at risk.

To monitor player behaviour, you have to first ascertain the customer’s standard playing patterns so there has to be a starting point. Each player is different. For one, standard gambling behaviour might be depositing £50 each Saturday and placing bets across the games taking place that day. For others, it might be depositing £500 per month and wagering on basketball three nights a week.

Regardless, once a player’s standard behaviour has been determined operators then need to be able to spot any deviation from that. This is not as hard as it might seem; it really just requires setting hard rules that are monitored and, if broken, a predetermined action takes place automatically.

This is why automation is so important. Given the huge number of transactions that operators process, it is impossible to monitor manually. Some operators are using automation, but not efficiently. For example, they might automatically pull a report, but it might be 24 hours after a player’s gambling activity. By this time, the damage could already be done. It can also be the case that reports are pulled from various departments and require the involvement of multiple people.

Again, this is inefficient and can lead to players slipping through the gaps, which is unlikely to be compliant with the Gambling Commission’s new standards.

Prioritising player protection

There are tools available to players to help them stay in control of their play. I’m talking about session limits, deposit limits, loss limits, etcetera. Of course, these have to be put in place by the player, and the reality is that if the player has a gambling problem, they are unlikely to impose limits or set those limits to the maximum amount they can.

It is great to see operators promoting these tools and encouraging responsible gambling, but this must also be underpinned by cutting-edge technologies that monitor players and intervene if they are showing signs of problem play. Again, this can easily be done by setting hard rules combined with automated processes.

Affordability checks are important, but they are only good in the instance that the check is carried out. Once the check has been done, the player could lose a significant amount of money and that would impact their affordability. Of course, until the operator carries out another check, they won’t know. That is why it’s important to set rules and monitor players to know when another affordability check needs to be undertaken.

Assessing affordability can be easier said than done, and right now it often requires operators to manually request payslips or bank statements from players. This is not ideal – it adds tremendous friction to the onboarding journey and players usually do not want to hand over such documentation. Many will simply jump from site to site until they can deposit without a check being carried out.

Automation is wonderful, and it’s a great tool to help operators onboard and monitor lots of players, but there is still a huge need for manual intervention.

Once technology has identified someone as potentially vulnerable it requires a human to reach out, to clarify the situation or to provide support and help. In my opinion this is a gap that cannot be filled using technology alone.

Our Transaction Behaviour Monitoring solution can report on any and all data that operators feed into it. If they share player deposit data, for example, we have the functionality to build a wide range of rules and triggers around that information.

We can do the same if operators want to intervene if players play for a set number of hours over a set number of days, or if they change the size of the stake they are wagering with. All we need is the data and then we can build rules, triggers and automated actions, and all in real-time.

Premier League clubs met this morning to discuss this weekend’s round of matches, with teams agreeing to postpone all matches, including the Monday night match between Leeds United and Nottingham Forest, as a mark of respect.

The queen passed away yesterday (8 September) at Balmoral Castle in Scotland after 70 years on the throne.

“We and our clubs would like to pay tribute to her majesty’s long and unwavering service to our country,” Premier League chief executive Richard Masters said. “As our longest-serving monarch, she has been an inspiration and leaves behind an incredible legacy following a life of dedication.  

“This is a tremendously sad time for not just the nation but also for the millions of people around the world who admired her, and we join together with all those in mourning her passing.”

The English Football League, comprising the three leagues below the Premier League, also announced the postponement of all its scheduled games today and over the weekend. The Irish FA also confirmed all football across Northern Ireland will not take place this weekend.

A number of Uefa Europa League matches took place last night, with news of the queen’s death only being announced shortly ahead of kick-off.

Earlier today, the British Horseracing Authority cancelled all meetings today and tomorrow, though racing will return on 11 September.

Play in the cricket test match between England and South Africa at The Oval in London was called off for today, while the second day of golf’s PGA Championship at Wentworth near London will not take place.

Cycling Tour of Britain cancelled its final three stages in Gloucestershire, Dorset and the Isle of Wight.

In rugby union, last night’s scheduled Premiership Rugby Cup clash between Northampton Saints and Saracens was called off, but a decision is yet to be made on other games this weekend.

Over the past several months, even as I have been writing this article series, I have followed the development of blockchain technology, including crypto, NFTs and the metaverse.

I have delved into these from a professional and personal standpoint, advised clients and helped develop a couple of web3 projects. I have tried my best to put aside my initial scepticism about the technology and its development and formulate a positive outlook towards the future of this field.

The exercise has yielded mixed results. As a technologist, I feel excited about the potential of the field, while as an artist I feel that NFTs have the potential to bring an evolutionary step to the way we create, perceive and consume digital art. They could also bring an element of fairness and control to royalty distribution, changing the art market to its core. As an analytical and rational realist, however, there remain too many questions unanswered, too many complications, and too much fluff for me to yet become a true believer in the field.

When I project myself well into the future, I have no problem seeing that these technologies will become ubiquitous in our lives. In my view, though, it will be in a way that is quite different to what we are experiencing today, and not really in the spirit of blockchain technology as it was originally intended.

The bitcoin whitepaper was quite clear as to its intention – to create a payment system allowing “online payments to be sent directly from one party to another without going through a financial institution.”[1] It is in this spirit of anarchy or, as some might put it, technological democracy, that the entire world of crypto has been created. It is a noble and worthwhile cause. Governments, regulators, financial institutions and other large, powerful and centralised entities have been a central part of the cause of where we are today. When powerful entities are able to act against the interest of the working classes with impunity, because they are “too big to fail”, it fuels an environment of greed.

Having said this, it is unfortunately human nature to be this way, and it does seem to me that creating a decentralised financial system on its own, without any safeguards, is not really solving the issue. Whether there is a workable solution at all is a question I – and undoubtedly many others – wish I had an answer to. My usual reaction to such conundrums is that we need to seek a balance – a middle ground – somewhere between extreme centralisation of power and complete unencumbered decentralisation[2].

At this point, you may be wondering where this all came from, and whether it is purely an unfounded opinion – a feeling – or whether there is some substance to it. Over the past months I have had discussions with several people from all walks of life, both in a private and public setting. There are some very key aspects that have led me to construct my outlook, including my own experiences. I will try to synthesise these facts, to allow you, as a reader, to form your own view.

Far from ubiquitous

First and foremost, although blockchain technology has gained enough popularity to start affecting global markets, it remains, in the grand scheme, a very niche field. By mid-2022, it is estimated that around 300 million people own at least one crypto wallet[3][4]. That represents just over 4% of the world population. The growth has been steady, and indications are that this might reach 1 billion by the end of 2022 (14% of the global population) – although I have some reservations about this number. When comparing this to the 76% of the world population having a bank account as of 2021[5], it is clear to see that there is a long road ahead.

When it comes to NFTs, research involving 1,000 US citizens showed that around 4% of the population had created or traded in 2022[6]. Even though this doubled year-on-year compared to the previous year, once again we are very far from NFTs being considered ubiquitous. The share of online art sales (which includes non-NFT sales made online) compared to the offline art market is still negligible, although NFTs are mostly used to purchase collectibles rather than art[7][8].

Far from simple

The above brings us to the second point. One of the disadvantages of having a decentralised finance system is that there is still a lack of organisation.

I compare the situation with traditional finance systems, as in essence they are in direct competition. In order to have a bank account, deposit money, store it and retrieve it, one does not really need to understand the underlying banking system. There is a meta-layer on top which simplifies and essentially hides the process enough to make it accessible. There are also well-established processes and securities in place to ensure that our money is safe and accessible.

When it comes to crypto, we’re delving into a pretty much bottomless pit. Granted, exchanges such as Binance have become much more user friendly, and there are some regulations surrounding them to ensure a level of security. However, it still remains clear that one has to have some understanding of why blockchain exists, how it works and how to use it. It still remains more in the realm of stock-trading rather than banking.

The general instability of cryptocurrencies (including those that are supposedly stable) means that in reality they fail the “money” test, particularly when it comes to it being a store of value[9]. Value caps for even the most popular cryptocurrencies are only a small percentage of fiat currencies, and have very few safeguards against their collapse, making them very vulnerable to market manipulation (in a similar way to stock exchanges in the 1920s prior to regulatory bodies being introduced – a situation that pretty much led to the great depression).

This lack of simplicity, the uncertainty, inaccessibility and volatility of the market is a major hurdle towards greater adoption. I am doubtful that this situation will ever be resolved while the system remains entirely decentralised and unregulated.

Far from safe

Crypto has always been pegged as very safe or “unhackable”, and indeed, the blockchain technology that underlies it all is very secure from a mathematical point of view. However, a lack of control, lack of processes and piecemeal development of web3 wallets has opened several holes allowing for various hacks, scams and general cybercrime to take place. The average number of hacking incidents in 2022 was around double that of the same period in 2021, leading to a total of almost $2bn in lost assets[10][11] – and this excludes scams and personal wallets being hacked with the use of “sweeper bots”[12] and other means.

The decentralisation of finance is clearly a double-edged sword. Removing the trusted intermediaries such as financial institutions clearly provides for more freedom to own and control assets, however it also means that we are giving up the protection that these entities provide. Bottom line: we must take the whole package. Most people will not want to accept the risks that come with the freedom, even (and maybe even more so) if they have the time and technical aptitude to understand the intricacies of the system itself, its flaws, and its dangers.

As things stand right now, there is no wallet or blockchain or NFT smart contract that can be truly trusted. Those who invest in blockchain regularly will use a hardware wallet, keeping the wallet’s sensitive details completely offline. It is a step in the right direction, but there is not enough awareness of its importance within the general public to make enough of a dent, not to mention the potentially off-putting technical knowhow required to use one.

Far from over

The next months will be interesting to observe. At the moment of writing, ethereum is preparing for the big merge which will bring the blockchain into a proof of stake consensus, hopefully reducing its environmental impact and the exorbitant costs of transactions significantly[13], assuming it all goes through without a hitch[14].

In the meantime, NFT transactions on Opensea have dropped by 99% compared to their high point[15], raising several questions about their future, viability, and most importantly, their relevance. The sceptics are all crawling out of the woodwork proudly bearing “I told you so” signs. They are not entirely wrong – NFTs, blockchain, cryptocurrencies and all related technology still lack the one fundamental ingredient: purpose. Until a real-world use case is found for these technologies, they will remain in the realm of niche.

However, they are not entirely right, either, and not all is doom and gloom. The recent collapses, the increase in security breaches and a greater awareness – both at an individual level as well as governmental – are signs of a maturing industry. Looking back at history, new and revolutionary systems, such as the stock exchange and the internet itself, all went through a period of hype, abuse and collapse before enjoying greater stability, acceptance and growth. I believe blockchain is no different. Over the next years we will see greater acceptance towards the inevitability of regulation and some form of control. As much as we would like to believe we are able to fend for ourselves and do not need some form of centralised authority to provide direction and control, it is unfortunately clear to me that this is far from being the case. Bad actors within a system will always exist, and they cannot be controlled by technology alone. It might be that we keep forgetting that a large portion of the mechanics of any system is driven by human nature, and this can only be stabilised through social structures.

On the other hand, the tendency of governments is to take full control through (sometimes extreme) regulation. We can see this through the efforts being carried out in the US via the SEC listing some cryptocurrencies as securities[16][17]. This is another swing of the pendulum observed in any evolving industry. It is yet to be seen how things might eventually stabilise, given that the blockchain system (very much like the internet itself) was designed to have a certain immunity to regulation.

All this means that the future is still quite unpredictable. But unpredictable also means interesting – and interesting leads to opportunity. The bottom line is that we are still in the early days of an industry rife with potential. This is the point where innovation happens, where those with a vision can bring new things to the table, and where those who are willing to take a chance can lay out their course towards success.

The next months and years will be unequivocally important, and society will be different from here on out. I, for one, am excited to see how things will evolve.

[1] https://bitcoin.org/bitcoin.pdf
[2] As a personal note, I am trying to avoid the use of the word anarchy, since it is often misinterpreted as lawlessness, violence and chaos. My interpretation is more on the lines of giving more control to the individual, with as light a form of government as may be possible. This does not automatically result in chaos; however the discussion and nuance surrounding such interpretations is not one that will benefit this article.
[3] https://earthweb.com/cryptocurrency-statistics/
[4] https://buybitcoinworldwide.com/cryptocurrency-statistics/
[5] https://www.worldbank.org/en/publication/globalfindex
[6] https://www.security.org/digital-security/nft-market-analysis/
[7] https://www.statista.com/statistics/1236560/online-and-offline-sales-share-fine-art-auctions-in-selected-global-countries/
[8] https://www.statista.com/statistics/1299636/sales-value-art-and-collectibles-nfts-worldwide/
[9] https://corporatefinanceinstitute.com/resources/knowledge/valuation/store-of-value/
[10] https://finbold.com/crypto-hackers-loot-2-billion-in-h1-2022-as-cybercriminals-thrive/
[11] https://blog.chainalysis.com/reports/2022-defi-hacks/
[12] https://community.trustwallet.com/t/what-is-crypto-bot-sweeping-everything-about-this-scam-strategy/488179
[13] https://nftnow.com/features/ethereum-merge-heres-what-to-expect-from-the-groundbreaking-move/
[14] https://decrypt.co/108791/ethereum-merge-almost-here-what-could-go-wrong
[15] https://stephenmoore.medium.com/the-nft-boom-is-over-trading-volume-on-opensea-falls-99-a31e00f109b0
[16] https://www.forbes.com/sites/ninabambysheva/2022/08/02/binanceus-delists-cryptocurrency-sec-deemed-a-security/?sh=4533f3f314ac
[17] https://www.bloomberg.com/news/articles/2022-07-29/why-crypto-flinches-when-sec-calls-coins-securities-quicktake#xj4y7vzkg

Sergio Muscat is the founder of Oxygia, a boutique management consultancy specialising in strategic, operational and human insight advisory. With several years of experience in project management, business analysis, operations and payments among others, Oxygia assists organisations of any size and industry to investigate, manage and adapt to the future.

Photo by JD Photography on Unsplash

The charges related to an event in Mexico in 2016 where the player was found to have fixed two matches.

El Mihdawy, who has a career-high ATP ranking of 281, was handed a four-year ban from the sport, though after taking into account time served while provisionally suspended, this was reduced by six months.

The ban started on 1 September of this year and will run until 28 February 2026. El Mihdawy was also fined $5,000 (£4,346/€5,000), with an additional suspended fine of $10,000, should there be any further breaches of the Tennis Anti-Corruption Programme (TACP).

Specific breaches of the TACP included Section D.1.d. of the 2016 TACP, which states that no player, or any other covered person, shall contrive or attempt to impact the outcome or any other aspect of any event.

The ITIA also flagged Section D.1.f. of the 2016 TACP, whereby no covered person shall solicit or accept any money, benefit or consideration with the intention of negatively influencing a player’s best efforts.

In addition, El Mihdawy was found in breach of Section D.2.a.i. of the 2016 TACP, which states that if a player is approached by someone asking them to influence the outcome of event or provide inside information, they must report this to the ITIA soon as possible.

Players across New Jersey will be able to place pre-event and in-play bets on a wide range of sports and competitions, including out-of-state collegiate sporting events.

The online launch was made possible through an agreement with Caesars Entertainment, while Fubo Gaming already had a presence in the state via its agreement with NFL franchise the New York Jets.

Fubo Gaming in 2021 opened a new 7,000sq ft lounge at the Jets’ MetLife Stadium, which is located in New Jersey. Consumers at the facility will now be able to bet on Jets games via their mobile device.

The launch comes ahead of the new NFL season, which kicks off this weekend.

“Launching Fubo Sportsbook in New Jersey is an important early step in the development of our integrated platform, which includes a recently improved user experience and enhanced product capabilities,” Fubo Gaming president Scott Butera said.

“As one of the largest and most established sports betting markets in the US, New Jersey will allow Fubo to analyse and efficiently develop the most engaging product features that are focused on driving streaming customers into wagering.

“New Jersey is known for having deeply passionate sports fans, who, we believe, will enjoy our one-of-a-kind immersive sports wagering and viewing experience in time for football season.”

Jets vice-president, business development and ventures, Jeff Fernandez, added: “With the official launch of Fubo Sportsbook in New Jersey, the Fubo Lounge and Fubo’s wagering app will provide an opportunity for our fans to responsibly gamble on sporting events from one of the best experiential settings in the NFL.”

The Fubo Sportsbook is also available in Arizona and Indiana.

Under the deal, LeoVegas will serve as the team’s official betting partner in Europe and Canada.

LeoVegas branding will appear on the men’s first team training kit sleeve for the 2022-23 season, as well as across in-stadia assets at both the club’s Etihad Stadium and Academy Stadium.

In addition, LeoVegas customers will have the chance to win unique matchday experiences at the Etihad Stadium.

“LeoVegas is proud to be entering into this partnership with Manchester City, and excited to be able to offer our customers unique experiences with the club,” LeoVegas Group chief executive Gustaf Hagman said. 

“Manchester City is a colossus in the sport, with the same leading mentality as LeoVegas; this collaboration is an opportunity for LeoVegas to build further brand awareness to support our global growth.”

City Football Group vice-president of global partnership sales, Dina Ahmad, added: “We look forward to working together to bring fans and customers even closer to the club. Additionally, we are excited that this new partnership will also help spark further growth across Europe and Canada and allow us to continue reaching audiences around the world.”

The deal comes amid continued uncertainty over the future of gambling partnerships in the Premier League, with a ban on shirt sponsorships having been mooted in recent months.

Premier League shareholders met earlier in the summer to discuss plans and self-regulation, whereby clubs could voluntarily opt out of gambling shirt sponsorship, was reported to be one of the options tabled. A final decision is yet to be formally announced. 

The Big Step, a campaign that aims to end all gambling advertising and sponsorship in football, expressed doubts about the possibility of self-regulation.

At least three-quarters of Premier League clubs now have some form of partnership in place with a gambling business.