Best perspective: emerging sports and integrity

In its second quarter 2022 report, the International Betting Integrity Association (IBIA) received a total of 88 suspicious alerts pertaining to sports betting worldwide. Football was the subject of 32 of these, while tennis and horseracing followed at 27 and 12 respectively.

But virtually every sport has been touched by match-fixing and betting corruption. Routinely, headlines appear that detail a variety of penalties across a number of sports for engaging in the practice.

For sports in their infancy, the issue of betting corruption can be difficult to grapple with. Time and resources are needed to tackle the problem, both of which some emerging sports cannot afford.

STEVE HALL, COMMISSIONER, AMERICAN ULTIMATE DISC LEAGUE

Not only that, but many upstart sports have recently experienced a boost from betting, which can provide a steady stream of viewership. This can help keep a sports league alive, but if a disproportionate number of viewers are also bettors, it may be tougher to tackle manipulation.

Hall says that as an emerging sport, the American Ultimate Disc League (AUDL) has put effort into fighting potential match-fixing – disincentivising players from participating in the potentially lucrative, but illegal, practice.

He notes that one of the biggest challenges is that player salaries are currently low, which might make the appeal of making money illegally stronger. That means the league’s general incentives to grow tend to align with the goal of fighting corruption.

“There’s several things [we can do],” he says. “Obviously one is, if we get bigger and we can pay the players more – it almost helps. There is a less economic incentive to cheat.”

“Clearly, we want to get bigger and we want to pay our players more. That’s part of our overall global corporate goal.”

Supporting integrity

Having players be contractually obligated to not partake in any form of gambling on the sport – a commonrule in larger sports leagues – is the best step the AUDL can take in the meantime, he continues.

“We do not allow them [players] to gamble on themselves, the teams, the league; so that’s actually part of their contract,” explains Hall. “If they do that, we could kick them out of the league and forever ban them from playing Professional Ultimate.”

“That’s the biggest step we can take right now in the short run, until we can pay them so much that it economically disincentivises them from making bets on their own sport.”

But Hall notes that integrity is not just a factor from a betting perspective. Integrity factors greatly into all assets of how the AUDL is operates, he says, including on the pitch.

“At the Pro level, we have something called the integrity rule, which is an on-the-pitch concept,” says Hall. “It’s if the players say the official’s call was wrong, and say, ‘We the players are overruling, the official got it wrong. The right call was different’ – as a player, you may lose advantage by saying that.”

“We’ve had games where a player has given up their advantage. So integrity is part of the ethos, the culture of Pro Ultimate; the AUDL.”

The solution

When looking at sports betting as a whole, figuring out a solution to betting corruption can be daunting – particularly for an emerging sport. Hall believes that education is the key component in the fight against corruption, with the AUDL choosing to focus primarily on the education of its players.

“In the mandatory pre-season training for players we talk about the dos and don’ts – ‘Don’t do anything on betting,’” says Hall. “It isn’t worth it. Not only are you going to get kicked out, sometimes it hurts us as a league.”

However, this education extends to fans too. Hall believes that the fan experience has a direct correlation to the betting experience, and therefore emerging sports must pay attention to betting as a whole, as it’s not going away.

“Betting and gambling is part of sports entertainment,” says Hall. “It’s what’s happening, it’s going to happen, and it’s a part of how fans and clients have fun.”

“We need to acknowledge that betting is part of sports entertainment.”

This also applies to educating young people against gambling harm and, subsequently, the harms associated with betting corruption.

“I think we also need to educate the youth on what the difference is between gaming and gambling,” Hall continues. “What is it to have fun and play casual games?”

“Gaming is ok, and it should be fun. How is that different than putting money at risk? We need to have those conversations and educate on those two levels.”

Whether a sport is emerging or established, it has a responsibility to prevent betting corruption. So far the resistance against betting corruption has been strong. And with more regulators and countries tuning into the problem, a global united front is being formed.

But many key battles are being fought at the grassroots level, where steps need to be taken early on to tackle harm.

Kings Entertainment secures SEC approval for Bet99 combination

Under the agreement, which was first announced in May of this year, Kings, which operates LottoKings and WinTrillions, would combine with SVH and operate as a single business.

Approval from the CSE is one of a number of terms and conditions that the merger must first satisfy before moving forward, with the approval of Kings shareholders being another. Kings has called a shareholder meeting on 25 October with the aim of securing approval.

The Kings board already unanimously approved the combination and recommended that shareholders also vote in favour of the proposed merger at next month’s meeting. Should shareholders back the deal, the merger is expected to close shortly after the meeting.

Should the deal complete, current Bet99 chief executive Jared Beber would serve as CEO of the merged business, with Kings CEO Steve Budin to lead the group’s LottoKings operations and act in an advisory role.

In addition, Adam Arviv, the founder and former CEO of Bragg Gaming Group, will become executive chair of the combined entity.

It is also anticipated that after the merger goes through, Kings will change its name and operate as Interactive Entertainment Group, while SVH is expected to complete a brokered financing in advance to support the financial position of the combined business for the ensuing year.

“We remain excited to proceed with the previously announced business combination with Bet99 to create Interactive Entertainment Group,” Kings chief executive Steve Budin said. “Our goal has always been to grow our business organically and through the acquisition of complementary businesses.

“We believe the acquisition of SVH is fully aligned with our business objectives and serves to further bolster our position as a market leader and innovator.” said Steve Budin, CEO of Kings Entertainment.

“Receipt of the CSE conditional approval is an important step forward in the completion of the business combination. We now look forward to holding our shareholder meeting on 25 October so that we hear from our shareholders and share our excitement about our future with Bet99.

“We hope to close this transformational transaction shortly following our shareholder meeting.”

Churchill Downs completes $79.0m purchase of Kentucky’s Ellis Park

The agreement was announced earlier this month has now been approved by the Kentucky Horse Racing Commission, with CDI to take ownership of the venue from Ellis Park Racing & Gaming from Enchantment Holdings, which is part of Laguna Development Corporation.

The transaction was funded with cash on hand and through CDI’s existing credit facility.

Located in Henderson, Kentucky, Ellis Park hosts horse racing and also features a gaming facility venue with approximately 300 historical racing machines (HRMs).

The acquisition agreement also includes CDI assuming Ellis Park’s opportunity to construct a track extension facility at Owensboro’s Towne Square Mall. The new Owensboro Racing & Gaming site will house an entertainment venue with 600 HRMs, a simulcast wagering center and multiple food and beverage offerings.

CDI said that it expects the total investment in the Henderson and Daviess counties over the next hear to be approximately $75.0m, in addition to the purchase price.

“Our team is already hard at work in both Henderson and Owensboro,” CDI chief executive Bill Carstanjen said. “In the coming days, we look forward to sharing more about our plans to invest in the racing infrastructure at Ellis Park and to drive significant purse improvement through the Owensboro historical racing opportunity.”

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Top Sport fined €15,000 in Lithuania over insufficient CCTV

An investigation by the regulator found that systems placed at the two locations in Klaipėda were not recording the premises properly.

The Authority said at one of the sites, the video system set up to capture images of anyone who enters the shop was not recording accurately and the images were blurred, meaning it was not possible to identify those who had visited the premises.

The regulator’s investigation also found that the recording systems at both locations failed to capture images of financial transactions, nor how much money was being paid in and out at each facility.

As such, the Authority said this breached 15, Part 3 of the Gambling Law of Lithuania, which states that video recordings must clearly show people entering the betting shop, as well as the actions of gamblers and bookmakers at the location.

The Authority noted that the decision is open to appeal by Top Sport.

This case marked the second occasion this year Top Sport has been fined by the regulator, with the operator in May having been issued a €25,000 fine for violating the country’s wide-reaching ban on gambling promotion.

The Authority conducted an inspection in 2021. It found that the business had posted a number of claims on its website that were deemed as encouragements to gamble.

Rank migrates Grosvenor online brands to new in-house platform

Rank developed the digital platform following its £115.3m ($124.8m/ €129.5m) acquisition of online casino and bingo operator, Stride Gaming, in 2019.

The business said a key feature enabled by the platform migration would be increased cross-channel integration for both land-based and online consumers through a single wallet and account for each customer. Other new features will include product initiatives across its sports and slots verticals, an improved jackpot offering, a revamp of its suite of free-to-play games and an upgrade to Rank’s live casino and bingo offerings.

The business added that personalisation would be a key aspect of the new platform.

Rank Interactive managing director Jon Martin said: “The migration onto our proprietary platform marks a significant landmark on our journey towards delivering a seamless cross channel experience for our customers.”

“It was a huge piece of work requiring over 400 team members working across five continents, and I am delighted that the team were able to complete it on time and without inconveniencing our customers,” he said. “It brings to an end our timetable of group-wide migrations onto the Stride platforms which now, in turn, frees up valuable capacity to deliver a host of innovative customer-oriented improvements.

“We are excited about the capabilities that the migration will unlock and the material improvements which our customers will now start to enjoy.”

Digital focus

In Rank’s Q2 financial report, the company outlined the growth its digital operations had experienced in the previous years– receiving £183.3m in revenue in the 12 months leading to 30 June compared to £144m in 2019.

This represents a 27% increase from the pre-pandemic period.

Rank CEO John O’Reilly indicated the company’s increased digital strategy in the report: “Performance in our digital business continues to improve against a difficult market backdrop. The transfer of the Rank brands to our proprietary technology platform is supporting revenue growth and a strong improvement to operating margins which we expect to accelerate with the migration of the Grosvenor brand in the coming weeks.”

Merkur signs new compliance partnership with GiG after German slots launch

Under the arrangement, Merkur will have full access to GiG Comply, which scans web pages for content including links, igaming code red words and regulatory requirements across a range of jurisdictions.

GiG Comply uses its rules engine to analyse real snapshots from affiliates’ campaigns and provides operators information about the promotional content that is being used in the marketing of their brands.

Merkur will be able to set its own criteria and checklist parameters to tailor the system to cover any market-specific requirements, including specific rules and regulations in Germany, where Merkur received a nationwide slots licence last month.

“With everything we do here at Merkur Partners we aim to do it right, especially when it comes to compliance,” Merkur’s affiliate lead Martin Collins said. “All our brands are operated by local licenses both on and offline and where we abide by the rules. 

“Having GiG Comply on board as a strategic partner is a great starting point as both sides come with a vast knowledge of the igaming world, and with ever changing regulations, we will make a great partnership.”

GiG’s chief marketing officer Jonas Warrer added: “It’s important that GiG Comply will continue to help Merkur, as it does our other partners, to remain proactive and in control of its marketing compliance. We’re delighted to be able to ensure affiliates are fully aligned with their brand and responsible gaming requirements.”

Yesterday (26 September), German health body the Federal Centre for Health and Education warned of the rise in online gambling advertising, calling for a 9pm watershed on gambling advertising, including online ads.

This came in the wake of the regime created by country’s fourth state treaty on gambling, which set out provisions for the regulated national online casino market, on top of the existing online sports betting market.

In 2021, German sports betting operator association DSWV rejected calls from a state minister to ban all forms of gambling adverting in Germany. 

Dutch minister defends sponsorship transition timeline

In July, the Dutch government announced a number of measures to curb gambling advertising, following severe pressure from MPs. Many forms of ads will be banned from the start of next year, while gambling sponsorships in football will be banned from 2025.

When asked about the upcoming sponsorship ban, Weerwind said that the two-year adjustment period set out for the ban is a “reasonable” length of time.

“That is why a period of two years has been provided for the entry into force of a ban on sports sponsorship,” he said.

“In view of the serious importance of addiction prevention and the special importance of sport, I consider this a short, but reasonable period of time.”

He was questioned in parliament last week (23 September) by Mirjam Bikker, a member of political party ChristenUnie.

The questions mostly dealt with football club ADO Den Haag’s partnership with gaming arcade operators Hommerson Funland and Sir Winston Fun & Games, family gaming arcades which sponsor the club’s youth teams.

The MPs noted that Hommerson and Sir Winston also offer adult gaming arcades, with products such as slots that are not suitable for children.

Bikker asked how sponsorships of this nature could take place, when article 2 paragraph 3 of the Recruitment, Advertising and Addiction Prevention Decree prohibits advertising gambling to minors.

“It is true that sponsorship by license holders of games of chance should not be aimed at minors,” said Weerwind. “For this reason, license holders are not allowed to sponsor shirts in children’s sizes. If a licensee does not comply with these rules, the Gaming Authority (KSA) can intervene as supervisor.”

In reference to the potential confusion over whether Sir Winston Casino could be seen to sponsor ADO Den Haag’s children’s kits, Weerwind said it did not seem like an appropriate decision from his perspective.

“In general, I do not consider it appropriate that companies, other than license holders, use (partially) the same name in their advertising activities as gambling providers that are also part of their corporate structure.”

Ultimately, Weerwind pointed out that whether an infraction took place is for the KSA to decide.

“Whether the license holder can be held accountable in these cases is up to the KSA as supervisor.”