Month: December 2022

The higher tax rates will be applied to what the Star Sydney and Crown Sydney casinos earn from gaming tables and poker machines. It has not yet been confirmed what the exact tax rates will be for the two casinos.

NSW Treasurer Matt Kean said the changes would support the state’s fiscal sustainability as it continues to invest in communities recovering from the impact of the pandemic, bushfires and floods.

Kean added that the updated poker machine rate would bring NSW into line with Victoria following recent reforms to casino taxation arrangements announced in the 2022-23 Victorian Budget.

“It’s important that casinos pay their fair share of tax,” Kean said. “These reformed tax rates will replace the existing regime under which casinos pay less tax on poker machines than hotels and clubs.

“These changes will ensure that the casinos continue to make an appropriate contribution to the community and support the delivery of vital Government services.”

Gambling harm funding

Kean also revealed that the NSW government, through the Responsible Gambling Fund, will spend $33.0m during its 2022-23 financial year to support people experiencing gambling harm in the state, educating the community on the risks of gambling and investing in research to better understand gambling behaviour. 

This is a rise on the previous year after the 2022-23 NSW Budget committed to allocating an additional $5.0m per year to the Responsible Gambling Fund, increasing in line with inflation.

However, the decision to increase tax rates was met with criticism by Star Entertainment Group, which said there has not yet been any consultation from the government on the matter, nor any indication of how the taxes would be levied or applied.

Star said the potential impact of the proposed changes, if implemented, would depend on the details of the proposed reforms and the implications to pre-existing arrangements that apply to its operations in Sydney.

As such, Star said it would seek to urgently engage with the NSW government in regard to the sustainability of the proposed changes and the impact its business. Star added that this would be key to its own plans to fast track cashless gaming and carded play to deliver safer gambling, while also continuing on a remediation path to return to suitability and earn back the trust of the community.

“We are not sure how the government modelled its financials nor the basis for suggesting Star does not pay its fair share of taxes,” Star chief executive and managing director Robbie Cooke said. 

“Specifically, in addition to state gaming taxes, Star also pays millions in corporate taxes, with total taxes paid as a percentage of Star’s profits being around 70%, and as high as 80% in the last five years when all the tax regimes are considered.”

Star- NSW licence suspension

The proposals come after Star in October had it licence suspended and ordered to pay a $100.0m penalty following a series of failings in NSW.

Star was declared unsuitable to hold a casino licence in New South Wales in September after Adam Bell SC’s report outlined a host of anti-money laundering and social responsibility failings at Star Sydney stretching back for years.

An incomplete list of the misconduct included successful attempts to circumvent Chinese capital flight laws by deceptively reclassifying gambling spend as hotel expenses on China Union Pay (CUP) cards, lying to banking institutions regarding these payments and allowing an entity with likely links to organised crime to conduct cage operations in its casino.

Star was given 14 days to respond before disciplinary action was taken and its interim chair Ben Heap set out its immediate priorities days later, saying Star needed to “fundamentally transform its culture”, pledging greater transparency, more robust governance and greater accountability.

Crown was also found unsuitable to hold a licence in the state for similar reasons.

As diversity, equality and inclusion (DEI) initiatives rise in popularity across the industry, it is clear that companies are leaning into creating a more balanced environment in their workplaces.

This is more important now than ever – earlier this year, the All-In Diversity Project’s All-Index report revealed that less women are entering the industry than ever before. 

Hilary Stewart-Jones, CEO of Skywind, believes that a number of stipulations must be in place to ensure more diversity in the gaming industry, and encourage more women to join. 

“More visible women advocates and spokespeople at a senior level; sensible maternity policies which positively discourage a premature return to work and address unconscious bias against performance on return to work… and critically, for the gambling industry at least to continue its good work in eradicating its image that women are only there to promote products or entertain,” she says. 

Lucy Owen agrees that encouraging women to enter into the industry must centre around diversity and inclusion efforts. 

“Make diversity and inclusion a core and strategic value,” she says. “Demonstrably improve the balance of diverse, relatable and approachable people in board and senior management positions.” 

“Invest in the next generation of talent (for everyone) by providing opportunities, mentoring, training and development.” 

She also emphasises the importance of simply speaking to women who are considering a career in gaming, to “find out what they need and want”. 

Workplace imbalance 

Tatyana Kaminskaya, head of game aggregator at Softswiss says that initiatives like Most Influential Women help the industry to redress gander imbalance – but adds that employers must also demonstrate how women contribute and thrive in their workplaces. 

“I think initiatives such the one I am involved in right now, having today’s interview, is one of those steps,” she says. “For me, it’s also about the right advertisements when you are recruiting, because when you choose your next employer and place of work, you can’t possibly know what it is like to actually work there.” 

“So I think it’s important to actually show some successful cases of women working in your business, to get across to strong potential candidates this is a professional and understanding workplace that they can thrive in.” 

Isabelle Falque-Pierrotin, chair of French regulator l’Autorité Nationale des Jeux (ANJ), says that she is always careful to “respect the balance of parity” within the ANJ’s workplace, revealing that it is currently made up of 47% women – a testament to her commitment to the cause. 

Addressing the issue 

Creating an industry that welcomes all people requires a positive and adaptable environment, particularly from those in senior positions. Ciara Nic Liam, gaming product director at Entain, says that being a mentor to other women means delving into what inspires them to succeed. 

“Some of the key areas I focus on are understanding my mentee’s motivation – not everyone in a company wants to be the next CEO, success looks different to everyone,” she says. “Offering manageable projects, and checking in with them regularly – don’t let them struggle alone.” 

“Most importantly, let people know when they are doing well. Everyone needs this.” 

Olabimpe Akingba, executive secretary at the Association of Nigerian Bookmakers, says workplaces must do more to foster that welcoming environment by prioritising practical ways that women can feel supported. 

“Companies need to come up with policies that support women,” she says. “They need to be intentional about it, and not just do it at face value, really creating policies that let them grow within the industry.” 

“We need to bring them in to the management level. There is strength in diversity as I say, and any company serious about growth should be serious about implementing policies that enforce gender parity.” 

Fostering the environment 

While creating an accessible environment for all those who wish to enter the gaming industry is imperative, Kim Barker Lee, chief legal officer at Bally’s believes that attention should still be paid to those who are already making waves within the sector. 

“The key to increased representation for women in our industry does not rest exclusively on new hires – it is about the culture, providing opportunities for those already in the door and breaking through leadership mindsets, behaviours and systems that impede equity for women, people of color and others underrepresented or underestimated in our industry,” says Lee. 

Luisa Woods, vice president of marketing, gaming and entertainment at Delaware North agrees, believing that actions speak louder than words when it comes to DEI initiatives in the gaming industry. 

“It’s not just being open, being welcoming, it’s about really needing to actively embrace the understanding that we have to proactively take steps,” she says. “I have, just over the last year or so, been greatly privileged to get to participate in my own company Delaware North’s DEI advisory council, establishing diversity, equity and inclusion policies throughout the organisation.” 

“And the reason that I got involved; I was fortunate enough to take part in a conversation about diversity in our workforce. I reached out to a senior member of our HR team and said that it wasn’t something I had typically thought about, because I was typically the only woman in the room.” 

Woods views this experience as a prime example of what the modern gambling industry can offer in terms of diversity, and how far it has come. 

“Recognising how isolating that was for me when I look back; and realising that we’re in a place where there’s sufficient momentum, sufficient focus and sufficient recognition for the incredible value of actually pursuing diversification in leadership.” 

The government of Macau had awarded provisional concessions to the six operators last month.

Seven applicants applied for the new concessions: incumbents Galaxy Entertainment Group, Las Vegas Sands, MGM Resorts International, Melco Resorts, SJM Resorts and Wynn Resorts, plus Genting Malaysia. However, the six operators already doing business in Macau were chosen, meaning Genting missed out.

The newly signed concessions will begin on 1 January 2023 and end on 31 December 2032.

Macau concessionaire reactions

Lawrence Ho, chairman and CEO of Melco, said that the operator was “grateful” at being awarded a concession from the Macau government.

“On behalf of Melco, we are honored and grateful for the Macau SAR government’s granting of the ten-year gaming concession to the company, and we are thankful for the government’s running of a smooth and transparent process,” said Ho.

“Melco pledges its commitment to supporting the healthy and sustainable development of the tourism and leisure industry in Macau as we continue to work with the government over the next ten years to contribute to the city’s development as a preeminent, global tourism destination.”

Wynn Resorts also spoke of its confidence in the future of the Macau casino market.

“Wynn Resorts is pleased to announce that Wynn Resorts has entered into a ten-year agreement with the Macau government for the renewal of its gaming concession, covering Wynn Macau and Wynn Palace Cotai,” it said. “Through our extensive and positive discussions with the Macau government, we are confident that the market holds significant future opportunity.”

“We thank the government for its partnership and look forward to further supporting Macau as a world tourism and leisure center.”

Robert Goldstein, chairman and CEO of Las Vegas Sands, said the operator felt positive about continuing to contribute to Macau’s “development, its diversification, and its success”.

“On behalf of Las Vegas Sands and Sands China, the entire company is both honoured and eager to continue investing in Macau’s development, its diversification, and its success,” he said. “We are thankful for the continued trust of the Macau SAR government, for the spirit of service and excellence of our team members, and for the opportunity to participate in the success of one of the world’s most unique leisure and business tourism destinations.”

Further investments

Both SJM Resorts and Melco also announced plans for new investments into Macau, which both revealed as part of the tender process.

On 17 December, SJM Resorts announced an investment of MOP14.03bn into the special administrative region, adding that MOP12bn of the total would go towards enhancing non-gaming and tourism affairs.

On 18 December Melco announced that due to the concession, it would now be authorised to operate Altira Casino, the City of Dreams casino, Studio City casino, Grand Dragon Casino and the Mocha Clubs. Melco also promised an investment of MOP11.82bn in Macau.

Gaming bill

The new concessions come as part of a wider overhaul of gambling in Macau. A new gaming bill became law in 2021, scrapping subconcessions and bringing in rules around the maximum number of gaming tables or machines a casino may operate.

Initially, expanding the number of concessions was considered, but ultimately the number remained at six.

Light & Wonder’s product offering is vast. Authentic Gaming has taken the bull by the horns by leveraging this in 2022 to reach new audiences, as Dagmara Bator, head of marketing and strategy Execution at the company, explains.

“We are incorporating Light & Wonder’s IP into our casino offering. For example, Authentic Gaming now has the largest side-bet library of blackjack and baccarat in the live casino sector, including the most popular ShuffleMaster side bets, which are very recognisable to players.”

Authentic wants the ‘X factor’ in Europe

So, if 2022 has been a year to explore the possibilities of being part of the larger group, what does 2023 bring?

The European market continues to be a big focus for the gambling industry, especially for online and live offerings. Light & Wonder reported that the live casino market globally comprises approximately 30% of the igaming industry and is a key product vertical for players.

Authentic Gaming, which started as a LeoVegas-backed business and was then acquired by Genting Group, has a strong European pedigree. Prior to its acquisition by Light & Wonder, Authentic rolled out a live dealer product for Entain in Spain, Betway in South Africa, and many more. Since the deal, its presence has been elevated further with a roulette rol-out in Italy, while studio space in Spain and Malta has doubled.

“The European market is a big focus for us in 2023,” Bator says. “We’ve recently doubled our studio in Spain, and in that market, only roulette is allowed in the live casino space, so we made sure to cover every possible vertical of roulette for all kinds of players – including our flagship XL Roulette game.

“In the upcoming months, we are also releasing standard classic studio roulette with multipliers – following the multiplier trend in the live casino.”

Authentic Gaming has big plans for the year ahead, leveraging the Light & Wonder client network to bring the X factor to live casino.  

“The acquisition by Light & Wonder has encouraged the launch of our Italian collection that includes the stunning Azzurra Roulette, which are studio roulettes with multipliers,” Bator adds. “We’ve also doubled our Malta studio, offering to our network a full live casino portfolio, which gives us more exposure in Europe for 2023.”  

Authentic takes North America

While Europe may have been the starter for Authentic Gaming, North America is undoubtedly the main course, especially since it’s one of the world’s most exciting emerging markets. Online casino may only be live in six states, but in the third quarter of 2022 alone, gross gaming revenue from those six was equal to around 72% of sports betting GGR – from 31 states – over the same period. There’s expected to be a further expansion for US igaming in 2023.

With this in mind, Authentic Gaming has decided to focus its 2023 strategy on catering to this increased demand for online casinos. “We’ve created games from the ground up, tailor-made for American players, especially now that there is more and more interest in online live casino entertainment,” Bator explains. “All these games will be customised, with a unique proposition leveraging Light & Wonder IP that sets us aside from other suppliers.”

The North American igaming market is notoriously challenging, thanks to a limited addressable market for icasino and a regulatory framework that changes from state to state. So how does Authentic Gaming leverage the opportunity that the post-pandemic world has to offer in this region while overcoming these obstacles?

Building a flexible and formidable offering

To Bator, Authentic’s versatile product portfolio helps suppliers to make a successful push across the US.

“For instance, we will provide US players with a wide and varied selection of shared live tables, available to all operators, but where all graphics elements like UI, side bets, and even some game rules are customised to the operator’s brand and players,” she says.  

“On top of that, our bespoke live-dealer product allows operators to build their own live-dealer studio environment, where everything from studio design, furniture and features, video angles, uniforms, game presenter teams, and scripts are tailor-made to the operator.

“We must remember one of the most important elements of the live casino experience is our dealers. The game presenters are the heart and soul of the live experience – they are key to our winning live-dealer strategy. Premium dealers are our major focus for the US market.”

In addition to products and features, Authentic Gaming is going above and beyond by building a new US live casino studio in Michigan, set to go live in 2023.

“A big investment in the new US studio has been made to deliver a stunning premium studio. Accommodating an extensive networked live gaming floor, incorporating bespoke environments of all shapes and sizes that feature live tables exclusive to individual operators. Every detail in that studio matters, from the colour to the layout”.

Moving our attention north from the continental US, Authentic Gaming has also marked its presence in Canada. “We are offering the Ontario Collection, a package of games designed for Canadian players, some of them based on the Light & Wonder top-performing side bets: Dragon BonusTM Baccarat and 5 TreasuresTM Baccarat.”

The customer is always right

Having a fully customisable product that can create a virtual world for a player is an enticing offering. So how have operators responded to Authentic Gaming’s live casino product?

“We are getting extremely positive feedback on our live casino offering from US customers – they highlight our unique proposition and customisation opportunities,” says Bator. There’s also the element of familiarity, she points out, thanks to the Light & Wonder connection – these are games players have enjoyed across multiple channels for years, after all.

“Players seek something new and unique, and with our proposal, they receive classic games but with an ‘Authentic touch.

“For example, ShuffleStarTM Continuous Shuffler, a side bet library of ShuffleMaster, or Make It Your Own – our internal tool that allows casinos to decide to add their branding to UI/UX layers in a deeper way than competitors.”

Europe versus North America 

Suppliers and operators alike will always highlight how different each region behaves when it comes to online gambling, and that’s why it’s imperative to focus on customer needs and wants when building out a new strategy.

“While Europeans are used to playing live casino on their phones, they seek new mechanics and new game formats and have different expectations from the entertainment. For American players, just playing classic games on the phone, like classic blackjack, is something new and exciting.

“In both markets, the majority of GGR comes from classic games, but in Europe, the game shows genre has a bigger slice of the pie. In America, there aren’t as many game shows and providers available yet, but also because of the players’ needs in each market, their expectations and experiences are slightly different.”  

However, Authentic Gaming is aware the audience ‘will of course change as the market matures’, which is why there are fundamental differences in the way they market their live casino studios.  

The power of branding

“What I always tell our potential US clients is that players don’t play with Authentic Gaming – they play with your brand. Branding is essential for American clients, so we developed a platform with localisation and customisation in mind,” Bator explains.

“Our US games will be deeply branded with our client brands, not with the Authentic brand. We offer several different levels of customisation, and each level brings significant value both for operators and players.”  

She believes there is still a need to educate players on live casino in North America, unlike in European markets where a live dealer is part of the industry fabric. This is why Authentic Gaming took a different approach to its overseas offering.

“We did not copy our product from the European market to the US, but we made it carefully from the ground up, based on all of the available data and knowledge we had accumulated on the needs of operators and players, and adapted it accordingly to our audience,” says Bator.

Standing out from the crowd

Live casino suppliers are trying to stand out by incorporating features such as bonuses and promotional offers. In 2023, all of Authentic Gaming’s new roulette and game shows will come with multiplier mechanics, and some will launch based on Light & Wonder IP.  

“We already launched the multiplier concept in several games like our Italian Collection, bespoke environments, and soon Spanish Collection.

“We saw astonishing results and discovered that adding an extra multiplier game to the existing classic roulette game does not cannibalise the non-multiplier version of the same game but generates more revenue and player engagement. We want to introduce it on a larger scale now.”

And while Europe is already showing strong returns, Bator sees North America as the focus for 2023.

“We want to focus on expanding in America first and foremost,” she says. “After Michigan, Authentic Gaming will be available in New Jersey and Pennsylvania – watch this space!”

Nordic Affiliates, which joins the NBO at the sponsor level, is an established Norway-facing affiliate with its site Norskeautomater.com.

NBO was founded in 2019 by Betsson, Comeon Group, Kindred and Gaming Innovation Group.

The organisation pushes for Norway to end its gambling monopoly and set up a system more in keeping with standards found in other markets.

Its work also includes creating a greater understanding of the unregulated online gambling market in Norway. The country currently has a state gambling monopoly, with Norsk Tipping operating online casino gaming and Norsk Rikstoto horse racing.

“Being Norwegian myself, and having spent over a decade in the industry, I strongly believe that Norway must regulate its internal gambling markets,” said Havard Lehn, co-founder of Nordic Affiliates.

“Politicians talk a lot, but there is no real change for people who are struggling with gambling problems.

“Going forward, we all must unite behind NBO for the benefit of both the Norwegian society and the industry.”

Carl Fredrik Stenstrøm, secretary general of NBO, said he believes a regulated market open to private operators is inevitable.

“It’s not a matter of if the Norwegian gambling market will be demonopolised, but when,” he said.

“However, the change is slow, and a successful regulation depends on continuous public affairs work. The more power we can assemble behind this task, the faster we will reach our goals.

“We have achieved more progress in the last three years than the previous 20. That’s a testament to the industry’s determination, but we want more companies to engage.”

Norway’s gambling monopoly

Norway’s gambling monopoly belongs to two companies. Lottery Norsk Tipping is the only body permitted to offer online casino gambling, while Norsk Rikstoto has the exclusive rights to take bets on horse racing.

Norsk Rikstoto recently had its exclusive licence extended until at least the end of 2032.

Last week, Norwegian regulator Lotteritilsynet also decided to pause the daily fines it handed to Unibet operator Kindred, which it alleged was actively targeting players within the country.

This was the latest step in a long dispute between the company and the Norwegian regulator.

The 26-year-old was banned from tennis for three years after admitting breaking several Tennis Anti-Corruption Program (TACP) rules by losing deliberately in return for payment. The ban is effective from 9 December this year to 8 December 2025.

Avilés, who has a highest WTA ranking of 158, was also fined $5,000 (£4,099/€4,703).

The ITIA found Avilés guilty of breaches of Section D.1.d, whereby no covered person shall, contrive or attempt to impact the outcome or any other aspect of any tennis event.

Avilés was also ruled to have breached Section D.1.b, which relates to players soliciting or facilitating any other person to bet on the outcome of an event or competition, as well as Section D.1.f in relation to players accepting money to negatively impact their best efforts.

Zheng, meanwhile, was banned for nine months and fined $5,000, with $2,000 suspended, after he was found to have approached an opponent and offered money in return for deliberately losing a match at a tournament in Egypt in October 2022

The case was dealt with under the 2022 TACP ‘agreed sanction’ framework, which allows for a sanction to be issued by the ITIA to the player upon admission of guilt, without the need for a hearing.

As such, the 21-year-old’s suspension started on 27 October 2022 and will end on 26 July 2023.

Specific breaches of TACP rules highlighted in this case also included D.1.d of the 2022 TACP, as well as a number of other sections in the most recent set of regulation.

These were Section D.1.g, whereby players must not offer or provide any money, benefit or consideration to other covered persons with the aim of negatively influencing a player’s best efforts.

The ITIA also highlighted Section D.1.n in relation to attempting, agreeing, or conspiring to commit any corruption offence, as well as Section D.1.o in reference to soliciting, facilitating or inciting any other person to commit a corruption offence.

In addition, Zheng was ruled to have breached Section D.1.e, which states cover persons must not facilitate any player to not use his or her best efforts in any event.

Last week, the ITIA announced Karen Moorhouse as its new CEO, replacing Jonny Gray who stepped down in September. 

Moorhouse will assume her new role on 6 February next year after more than 14 years with the Rugby Football League in the UK, where she was chief regulatory officer.

Carter joined Global Payments in September 2017 as senior vice president of human resources and went on to become executive vice president and chief human resources officer before assuming her current role.

Prior to this, she was chief people officer at Habitat for Humanity, while also spent time as global vice president of human resources at Ralph Lauren and vice president of human resources at Newell Rubbermaid.

Read the full story on iGB North America.

Consumers wagered a total of $452.3m on sports during November, up 1.4% from October but 2.5% lower than $463.7m in November of last year.

Football remained the most popular sport to bet on, attracting $480.6m in wagers. Baseball followed with $242.9m in bets, then basketball with $220.6m. Parlay bets totalled $479.6m and wagering on other sports reached $294.9m.

Read the full story on iGB North America.

Revenue for the month amounted to $441.1m (£362.5m/€416.0m), up from $439.6m in November last yearbut 1.0% down from $445.7m in October of this year.

Land-based gambling revenue was 3.7% higher year-on-year at $214.5m, with slots revenue 1.3% up to $156.7m and table game revenue rising 10.9% to $57.9m.

Read the full story on iGB North America.

The Gaming Commission published a report which included a survey of 272 players in Belgium who had self-excluded via EPIS.

The majority of respondents to the survey felt that EPIS had helped them control their gambling activities. For example, 90.2% of respondents said the scheme helped them better manage their finances, while 87.1% said it helped them feel better, and 80.1 % said it reduced their desire to play.

However, around a quarter of respondents said they still gambled despite being prohibited from doing so.

Of the group who still gambled, 33.8% said they did so via the black market, while 31.1% used the National Lottery’s retail products and 24.3% used its online products. Meanwhile, 25.7% of those who still gambled said they used gaming machines at cafes.

Gaming Commission chair Magali Clavie said the scheme should be expanded to cover unlicensed gambling.

“We also see that some respondents continue to feel the urge to gamble or even continue to gamble in places where EPIS does not apply,” he said. “This is probably due to the fact that the temptation and supply of games of chance that are not covered by EPIS remain high and that too few gamblers seek specialist help.

“Therefore, the EPIS system should be extended to all types of gambling, the fight against illegal gambling should be continued, advertising for these excluded persons should be restricted and both the EPIS system and the specialized assistance should be better known.”

Direct marketing

At the same time, 65.8% of respondents said that they had received direct marketing from gambling companies. Of this group, 70.2% mentioned email marketing and 62.4% noted social media ads.

“The Gaming Commission is asking for the restrictions on advertising to be strengthened and believes that these should firstly be aimed at the most vulnerable groups, namely young people and problem players, and secondly should limit the overall amount of advertising,” the regulator said.

The vast majority of the sample, at 72%, were men, while the average age was 40.

The most frequent reason respondents gave for signing up was money problems, cited by 27%. Meanwhile, 20% noted psychological problems and 7% said it was due to relationship problems.

Almost all respondents, 96%, described the self-exclusion process as either “simple” or “very simple”.

In its data examining all excluded players, the regulator noted that the most common reason for a player to be signed up to EPIS is as part of a debt settlement, with 74,570 exclusions for this reason. The next most popular reason was being required to do so by law enforcement, which applied to 53,287 people. 

Meanwhile, 42,349 people self-excluded voluntarily.

Self-exclusion tool underused in Belgium

The report also noted that EPIS is still underused when compared to the overall number of Belgians suffering from gambling-related harm. It recommended making details about the scheme much more prominent on operator websites.

“It is recommended that all useful strategies be used to increase the knowledge of the EPIS system among the general population, so that players can use it at an early stage in the development of an addiction, thus strengthening the preventive effect of the measure,” the report said.

“In an opinion on online regulations, the Gaming Commission recommended obliging operators to increase the visibility of EPIS on their websites and to show players more preventive messages.”

In October, Belgium introduced a €200 weekly loss limit.

The limit will continue to apply on a per-site basis, after attempts to introduce a “global” limit – to apply across all operators – fell through.

Players may request to have their limit raised, but only if they are not registered as defaulters with the Central Individual Credit Register of the National Bank.