Month: October 2022

The white paper has now been anticipated for more than a year, following an initial consultation almost two years ago, which formed the first part of the wider Gambling Act review. However, it has been subject to numerous delays, many of which have been connected to personnel changes both in government and at the Gambling Commission.

The document appeared to be ready for publication in July, but its status was suddenly thrown into doubt by a string of government resignations, including that of the minister responsible for the review, Chris Philp. Soon after Philp stepped down, prime minister Boris Johnson announced he would also leave, which meant the document was pushed back until the new prime minister, Liz Truss, took charge.

Gambling Act review timeline

With Truss in Downing Street, however, questions arose about the future of the document. An article in The Guardian claimed that a number of regulatory policies were set to be axed by the Truss government, and said it was “rumoured” that the Gambling Act Review would be among those. Analyst Dan Waugh warned that in the event this occurred, reforms be put in place by the Gambling Commission unilaterally.

Last week, a report in the Daily Mail claimed the review may be pushed back until 2023, citing comments from DCMS minister Michelle Donelan. Meanwhile, this week Betting and Gaming Council chief executive Michael Dugher – speaking at an industry event – said he expected the review this year, but offered a timeline of publication “by Christmas”. 

However, iGB understands that the planned publication date of the Gambling Act white paper is significantly sooner than either of those options, with the release instead expected in the coming weeks. A source with knowledge of the situation also noted that the report of a delay until 2023 was “misleading”.

Reports earlier this year have also included details of policies that may be included in the review. A leaked early draft of the white paper included a £125 monthly soft cap on affordability – with harder checks for players losing £2,000 in three months.

Jumbo entered into a deal to acquire StarVale in January this year, agreeing to pay an initial Aus$32.1m (£18.3m/€20.7m/US$20.01) to take ownership of the business, plus $8.5m in deferred payments, payable subject to StarVale achieving certain earnings targets.

The retailer agreed the deal via its newly incorporated, wholly-owned entity Jumbo Interactive UK, saying it would further expand its global growth strategy, following the purchase of UK-based Gatherwell in December 2019 and Canada-based Stride Management.

In July, Jumbo said it was unlikely that the acquisition would close before the end of the current year as initially hoped due a longer-than-expected regulatory approval process. 

However, having now been given the green light by the GB Gambling Commission, Jumbo now said the deal will likely close on 1 November, subject to the satisfaction of all other closing deliverables.

Upon the deal completing, StarVale will form part of Jumbo’s Managed Services business segment, along with Gatherwell and Stride.

StarVale provides services to over 850,000 active lottery players across over 45 charities and not-for-profit organisations, many of which are major UK charities. It also owns DDPay Ltd, a digital payments business that facilitates Direct Debit payments and solutions to StarVale’s weekly lottery clients.

This was down by 15.7% from alerts in the previous quarter. However, this is a rise of 16.9% from the third quarter of 2021.

Tennis had the highest amount of suspicious betting alerts, at 33, followed by esports with 16 and football with 13. Table tennis accounted for 10.

The number of esports alerts was more than three times the amount reported in the first half of 2021, when the total was five. The IBIA said this was due to a rise in the amount of esports-related organistions joining the association.

In all, the top four sports accounted for 95% of the total number of alerts.

Khalid Ali, CEO of the IBIA, said that the rise in alerts was proportionate to how the association’s membership had increased throughout the year.

“Alerts for the quarter are at the higher end of the scale compared to previous years, but must be viewed against the association’s substantial growth in membership during the year,” said Ali. “That has served to increase global market coverage and the alerts identified and reported, underlining the beneficial impact of a global multi-operator betting integrity network.”

“IBIA continues to work closely with its members and external stakeholders, such as sports and regulators, to ensure that suitable risk management processes are implemented and encourages a zero-tolerance approach to the manipulation of sporting events and associated betting fraud.”

Almost half of the total alerts – 37 – came from Europe. In Asia there were eight, while in Africa and South America there were seven each, respectively.

In addition to the financial penalty, GGPoker also received an official warning for the failings.

The business’s social responsibility failings included not identifying or interacting with vulnerable customers at risk of experiencing gambling-harms. Additionally, the company sent marketing emails to 125 self-excluded customers,

The regulator also identified shortcomings with the operator’s anti-money laundering practices, such as failing to conduct adequate risk assessments of the areas business in jeopardy of being used for money laundering and terrorist financing, as well as the lack of proper policies, procedures and controls to mitigate these risks.

The regulatory action is the latest in a string for the Commission. Just in September, the regulator fined Petfre Limited, the parent company of Betfred, £2.8m for anti-money laundering and social responsibility failings, as well as Betway £400,000 for marketing on children’s web pages.
These fines followed a string of four fines or settlements in four weeks between July and August.

GGPoker has an international presence, having launched its poker room in Ontario in partnership with the World Series of Poker at the beginning of the month. The operator has a type 3 gaming services licence through the Malta Gaming Authority.

Under the deal, Sportradar will serve as the official sports data provider to XLMedia through the delivery of a range of digital products and services.

XLMedia will leverage Sportradar’s real-time sports data products for North American and international sports properties across its owned and operated digital properties including SportsBettingDime, SaturdayTradition, SaturdayDownSouth, CrossingBroad, EliteSportsNY and Canadian Sports Betting.

Sportradar will also provide a selection of visualisation tools such as widgets and live match trackers to help enhance XLMedia’s editorial content. 

In addition, Sportradar will supply betting odds and insights to support XLMedia with a rising demand for sports betting across its network of websites.

“This partnership highlights Sportradar’s ability to be a one-stop shop for exclusive betting data and sports content for XLMedia’s high quality publisher partner brands and highly engaged audiences,” Sportradar’s head of regional sales in North America, Brian Josephs, said.

“The dynamic, relevant and engaging products that XLMedia will receive through this partnership will not only resonate with fans and bettors alike, but also aid XLMedia in further monetising their audiences.”

XLMedia’s vice president of global marketing and communications, Elizabeth Carter, added: “Partnering with an innovative sports technology company like Sportradar is key to XLMedia’s ambition to fuel fan engagement and enrich the audience experience across our sports media and sports betting brands. 

“We’re confident that the premium products Sportradar provides will increase demand from audiences and advertisers alike. Our team is thrilled to expand this partnership and integration over time.”

The deal comes after earlier this week it was announced that Sportradar’s legal dispute against Genius Sports and the Fooball DataCo had reached a resolution, with the parties agreeing out of court that Sportradar will receive a sublicence for English football data and stop unofficial scouting.

Under the terms of the settlement, Sportradar will be granted a sublicence that will grant access to a delayed secondary feed until 2024. At the same time, Sportradar will cease its unauthorised in-stadium data collection activities.

The group had been engaged in a comprehensive review of its options to refinance €530.0m in senior secured notes and an existing RCF, both of which mature in the fourth quarter of 2023.

The amended RCF is due to run through until October 2025 and also includes a further one-year extension option.

Meanwhile, Playtech also announced it will serve notice to redeem at par on 16 November this year €330.0m of the €530.0m senior secured notes maturing in October 2023. This will be funded using current cash balances, with the amended RCF expected to remain undrawn following the early redemption.

Playtech said this partial settlement will result in cash interest savings of approximately €12.0m in 2023.

The balance of the outstanding bond will be repaid at maturity, or potentially sooner, taking the total annualised savings to €20.0m, according to Playtech. 

Following the early redemption, Playtech said it will have more than €200.0m of available cash on its balance sheet, with the other material debt obligation being the €350.0m senior secured notes maturing in 2026.

“The combination of Playtech’s strong balance sheet and the high cash generation from its operations have enabled the company to carry out this efficient refinancing, in spite of challenging debt market conditions,” Playtech’s chief financial officer Andrew Smith said.

“We are pleased to have achieved this result, and to have made the significant interest savings that otherwise could have been incurred.”

The review of options to refinance the €530.0m million senior secured notes was detailed in Playtech’s H1 interim results, which were posted last month.

Also noted at the time was Playtech saying that it will put aside any plans to sell off its B2C Snaitech business, at least temporarily, after the business determined that its recent success meant it could deliver more value by remaining part of the group. 

Revenue in the first half was up 73% year-on-year to €792.3m, with revenue from Snaitech specifically almost tripling to €446.0m.

The supplier had reportedly been considering a break-up of its business, including a sale of the Snaitech arm it acquired in 2018, after plans to sell the entire business fell through. The Playtech board approved an offer from land-based slots giant Aristocrat, but shareholders ultimately rejected this deal.

A group called TTB Partners then announced that it was considering a bid of its own, and received support from Playtech chief executive Mor Weizer. However, amid changing market conditions, TTB ultimately declined to submit a bid for the gambling technology giant.

In the role, Garland will lead Scientific Games’ global people strategy along with employee-focused programs and initiatives, including talent acquisition and retention, learning and development, diversity, equity and inclusion, compensation and benefits, employee engagement, and workplace culture. 

Garland brings over 25 years of experience in building and implementing HR strategies, programs and infrastructure that develop, engage and retain talent to enable business success at global organisations including General Electric and Brambles.

Most recently, she was chief inclusion and diversity officer at a global building materials organisation, a role in which she worked with key stakeholders to create and advance an inclusion and diversity vision, strategy and initiatives.

“Our people are our greatest asset in serving our customers,” Scientific Games’ chief executive Pat McHugh said. “Mona is a dynamic leader with a passion for coaching and developing talent to evolve organizations. 

“We look forward to the tremendous impact she and our human resources team will have on our current employees, as well as expanding and further diversifying our workforce for the continued growth of our global business.”

The Scientific Games lottery business is now under the control of private equity company Brookfield Business Partners, having been sold by Light & Wonder in April for $5.8bn.

Indian-born Chhayakar, who has played in the United Arab Emirates (UAE) for most of his career, was found guilty of seven breaches of the ICC and Cricket Canada Anti-Corruption Codes during an ICC Anti-Corruption Tribunal.

The charges were in relation to matches in the Zimbabwe vs UAE series in April 2019 and matches in the GT20 in Canada in 2019.

Specific breaches included Article 2.1.1, whereby players may not fix attempt to influence the result, progress, conduct or any other aspect of any international match, including by deliberately underperforming during matches. Chhayakar was found to have breached this rule on two separate occasions.

The ICC also noted Article 2.1.4, which relates to directly or indirectly soliciting, inducing, enticing, instructing, persuading, encouraging or intentionally facilitating any participant to breach any of the provisions set out in Article 2.1. Again, the ICC ruled Chhayakar broke this regulation twice. 

Chhayakar was also found in breach of Article 2.4.6 on two separate occasions. This rule sets out how players are required to cooperate with investigations into possible corrupt conduct, including providing accurate any information and documentation as requested.

In addition, the ICC ruled Chhayakar breached Article 2.4.7m which relates to obstructing or delaying investigations over possible corrupt conduct. This includes concealing, tampering with or destroying any documentation or other information that may be relevant to the investigation.

The ICC noted Chhayakar’s offences were linked to the previous cases of former UAE players Qadeer Khan and Gulam Shabbir. Both Khan and Shabbir accepted sanctions after admitting breaches of the ICC Anti-Corruption Code for approaches they received from Chhayakar.

“We first encountered Mehar Chhayakar through his involvement in organising a corrupt cricket tournament in Ajman, in 2018,” ICC General Manager for the Integrity Unit, Alex Marshal, said. “The charges for which he has now received a lengthy ban are further examples of his continuing efforts to corrupt and damage our sport.

“We will be relentless in pursuing and disrupting the people who try to corrupt cricket. With a ban of 14 years, the Tribunal has sent a clear message to anyone intending to corrupt our game.”

Today, global anti-match-fixing body the International Betting Integrity Association said that 76 matches were flagged for suspicious betting during Q3 of 2022.

The company’s revenue performance for the three-month period ending 30 September represents an all-time high, increasing 35% sequentially from $5.3m in Q2 2022. The business’s handle in the period also reached a record high, increasingly 203% year-on-year $23.2m to $70.3m, and 83% quarter-on-quarter from $38.4m.

The operator continued its focus on esports, with 90% of the company’s total sportsbook handle originating in esports. This focus has given Rivalry’s userbase a youthful tint, with 82% of total active users at the business under 30-years old.

Speaking about these trends, business stated in a release that it “continues to successfully leverage brand equity, consumer engagement, and original casino IP development to extend its leadership position as the betting destination for the next generation.”

“The significant year-over-year and sequential growth we delivered is a testament to our market leadership in next generation sports betting and casino,” said Rivalry co-founder and CEO Steven Salz. “Our customer base demonstrates our ability to engage a highly sought-after audience of gen Z and millennials in global markets, and further validates our overarching player acquisition and brand strategy.”

Salz emphasised his hopes that the momentum would continue: “We are very well positioned for a strong finish to 2022 and continued momentum into next year,” he said.

“We expect to benefit from a number of near-term catalysts, including several major esports events, a growing presence in traditional sports betting, the launch of a mobile app, and the ongoing introduction of new casino games, media content, and influencer partnerships.”

Rivalry has previously enjoyed startup-like growth, with revenue increasing 640% in the company’s 2021 full year results. The news comes just days after the operator announced it had received its “RG Check” accreditation from the Responsible Gaming Council (RGC).  

Set out by NSW Minister for Hospitality and Racing Kevin Anderson, the three-month trial will test how the technology operates in real-life conditions and its potential benefits for venues and patrons.

Technology developed by Aristocrat Gaming has been installed on 36 gaming machines, with Bluetooth being used to connect patrons’ mobile phones to machines. Up to 200 members will have access to the system during the trial, with the ability to transfer money directly from the gaming wallet on their phone onto the machine.

The technology will also allow players to set limits on gambling such as a maximum duration for a continuous gaming session, the number of visits to a venue in a specified period, total net expenditure and maximum bets in a given period. Once set, limits cannot be changed for at least 24 hours.

“The trial is part of an exciting new era where innovations such as digital wallets offer customers greater convenience and control over their spending and help venues and authorities identify suspected cases of money laundering,” Anderson said.

“The digital wallet can be used to fund gaming machine play and players can set spending or time limits, access real-time spending data, take a break or self-exclude from gambling and access other responsible gambling tools and services. Patrons cannot load funds into the gaming wallet from the gaming floor.

“The digital wallet requires a person’s identity to be confirmed before they can play and they are linked to that person’s debit card or bank account which means authorities can identify where those funds have come from if needed.”

Anderson added that the NSW government has approved three other gaming manufacturers to conduct similar trials, including IGT, Utopia Gaming and Scientific Games, while another application is currently being assessed.

“The trials will explore different technologies and solutions to enable cashless gaming play in NSW, and trial important harm minimisation measures which will help individuals to take greater control of their gambling,” Anderson said.