Month: March 2023

Scientific Games aims to build on the momentum it achieved following its sale to Brookfield Business Partners in April 2022 by expanding its sports and digital teams, as well as “re-aligning” company leadership to better serve its customers globally.

“We are investing in people, products and technology platforms that give lotteries the opportunity to engage with their players across all channels,” said president of digital and sports, Steve Beason. “We’ve pioneered digital and sports betting solutions for lotteries since 2004.

“Now, in this next era we’ve redefined our strategic focus and growth paths to position Scientific Games as the global leader in digital and sports to help our customers responsibly drive revenues for their beneficiary programmes.”

In the past year, Scientific Games launched its Loteria augmented reality game extension, as well as what it describes as an “industry state-of-the-art” player loyalty system for the Missouri Lottery, among other digital projects.

Leadership realignment

In order to support the company’s goals in the expanding verticals, Scientific Games has promoted Amy Bergette to senior vice-president of digital solutions.

Bergette has over 35 years’ experience in the lottery sector, including in a number of digital programmes. In her new role she takes on several new responsibilities, such as managing the business’ games studios, customer accounts and delivering digital solutions.  

Kira Summers now serves as vice-president of operations and planning for digital. Summers came from a land-based and igaming background, before joining the business in 2021.

Her new responsibilities will involve planning and executing the business’ long-term digital strategy.

Scientific Games has also tapped Merv Huber to become vice-president of digital growth. Huber will be in charge of driving the growth of customers’ businesses globally through product enhancements and innovation, as well as expanded CRM and strategic marketing services.

The case relates to King’s match against Joe Perry at the Welsh Open on 13 February, with an initial investigation having flagged unusual betting activity.

The WPBSA did not go into further detail about these patterns, but it did confirm that the suspension would come into immediate effect and remain in place until the conclusion of the investigation or any subsequent charges that may or may not be brought.

King will not be able to attend or compete on the World Snooker Tour for the duration of the suspension, though he will have the right to appeal against the decision. 

Having turn professional in 1991, King is a regular on the snooker circuit and won his first ranking title in 2016 when he clinched the Northern Ireland Open.

The suspension comes after the WPBSA in January charged 10 players over alleged breaches of its regulations for match-fixing and betting. The WPBSA initially issued suspensions to a number of players as part of investigations into match-fixing and betting on snooker. 

WPBSA rules strictly prohibit all players from placing bets on snooker matches, while any approaches or reports of match-fixing or other corruption should be reported to the WPBSA at the first opportunity. 

Among the players charged were Masters champion Yan Bingtao, Zhao Xintong, Chen Zifan, Bai Langning, Chang Bingyu and Zhao Jianbo.

Under the agreement, which covers the current 2022-23 and 2023-34 seasons, Veikkaus will become the official betting partner of the NHL in Finland.

Veikkaus will work with the league to offer a range of NHL content to fans in Finland across its channels, while live coverage of NHL games will also be available on VeikkausTV.

“We are happy that Veikkaus became our partner to offer first-class NHL content,” NHL’s business development department head Joseph Stravato said. “This partnership is one of the ways in which we aim to serve Finnish NHL fans and grow our fan base internationally.”

Veikkaus contact manager Tuomo Torkkola added: “The NHL is one of the most popular betting destinations in Veikkaus. With the official partnership, we will be able to offer more content from the world’s best ice hockey league on our channels in the future.

“Finnish players play significant and visible roles in several NHL teams, and that interests our customers. Ice hockey is a very important sport for Veikkaus, and this cooperation expands our comprehensive ice hockey offer even further.”

The 2022-23 NHL season began on 7 October and is due to conclude in June. The campaign began with two regular season games in Europe, when the San Jose Earthquakes and Nashville Predators played in the Czech Republic as a part of the NHL Global Series.

Lalaine Vidal joins as business development manager and Christopher Caturay will take on the role of technical solutions architect. Both will be based out of the Philippines and will be responsible for supporting the provider’s activities across the region.

Vidal has spent more than 10 years working in sales and marketing across sectors including banking, BPO, real estate, telco and IT cyber security. Caturay is a cyber security professional with experience in the end-to-end process of deploying solutions and best practices for businesses in a range of sectors.  

“Lalaine and Christopher are great talents and are a brilliant addition to the Continent 8 team in Asia,” Continent 8’s managing director for Asia Pacific, Peter Williams, said. “This is an important market for us and one where we have ambitious growth plans that we are actively deploying.

“Lalaine will play a vital role in introducing more businesses to Continent 8 and the award-winning solutions that we provide, while Christopher will ensure that customers are deploying the right products and services for their organisation. 

“This localised approach, along with having feet on the ground, is what makes Continent 8 the go-to infrastructure and security provider for companies targeting Asia and other markets around the world.”

GambleAware noted the gambling participation rate for minority groups was 31%, lower than that of white British people, of whom 48% participate in some form of gambling.

However, its research found 42% of gamblers from minority background suffered some form of gambling harms, compared to 20% of white British gamblers.

Minorities are three times more likely to use gambling as a “coping mechanism, in response to challenges and difficulties in life”, at 18%, compared to 6% of white British people.

Those from minority groups are more likely than white British people say that they would like to limit their gambling activities but are finding it hard to do so, at 9% compared to the 1% that White British people responded.

People from these backgrounds are also slightly less likely to feel comfortable seeking formal support for their gambling, at 58%, as opposed to the 61% stated by white British people.

Chief executive Zoë Osmond said GambleAware was committed to building knowledge about the lived experience of minority groups and gambling harms, as well as the drivers of harms experienced by these communities.

“The higher prevalence of gambling harms amongst minority groups, coupled with the fact they are less likely to access specialist gambling services, is alarming and demonstrates the clear need for further investigation and tailored solutions,” she said.

“We need to break down the barriers to accessing support, and challenge the stigma and discrimination faced by these communities.”

Structural factors

GambleAware said that the findings highlight a host of structural factors that have been shown to correlate with higher levels of gambling harm, such as income, social inequality and discrimination.  

The research defined minority groups as people identifying as a member of an ethnic or religious minority group or those from a migrant community who may not speak English as a first language.

The survey also determined “any gambling harms” as those who scored 1 or more on a Problem Gambling Severity Index (PGSI) assessment.

“Whilst further research is needed to establish what drives higher burdens of gambling harms in minority communities, these results clearly highlight that members of these communities are facing increased vulnerabilities and are more at risk of suffering from gambling harms,” said Niamh McGarry, director of impact at ClearView, and a contributor to the report.

“Services must be designed with the voice of minority communities centred throughout, and this research helps demonstrate that specific attention and specialised support is needed to effectively address these inequalities.”

The GGL officially assumed responsibility for regulation in Germany at the turn of the year, in line with the Fourth State Treaty on Gambling that came into force in July 2021.

Reflecting on these opening months in a session at the Research Centre for Gaming at the University of Hohenheim, Ronald Benter, who heads up the GGL with Benjamin Schwanke, said that while it had been a positive period, licensees need to work more closely to help the regulator tackle illegal activities.

“We are well on the way to creating an attractive legal market,” Benter said. “The majority of permit applications have been approved. Nevertheless, we still see insufficient cooperation on the part of online gambling providers. 

“This applies to both the payment of security deposits and defects in the individual games submitted in the field of virtual slot machines. This delays the permitting process and prevents faster channelling from the illegal to the legal market. 

“We pull together with the providers willing to legalise and together pursue the goal of creating a level playing field while complying with the protection of players and minors. But we would like to see more effort on the part of the providers here.”

Illegal operations

Benter also spoke about how the GGL has been clamping down on illegal activities in the country, referencing how the organisation this week issued a five-figure fine – the exact amount of which was not specified – to an unnamed operator that violated advertising rules.

According to Benter, since the GGL took control of regulation, a number of providers have withdrawn from Germany while, by working with payment service providers, he said the number of deposit options for players with unlicensed sites has been reduced. 

“According to our market analysis, the channelling rate is well over 95%, which means that up to less than 5% of the betting stakes are placed with the permitted sports betting providers according to the tax data of the Federal Ministry of Finance,” Benter said.

In terms of blocking illegal operators, Benter said court proceedings remain ongoing, adding that while initial decisions were only made in the urgent legal matters, main-matter cases are still pending. 

“We remain optimistic that the instrument of network blocking will ultimately be upheld by the courts as a last resort in the fight against illegal online gambling,” Benter said.

“The GGL is picking up speed in the fight against illegal gambling, including in the area of sports betting and related advertising. We will make success measurable on the basis of the data collected at GGL.”

This was by 21.1% year-on-year and is the 23rd consecutive month of revenue growth for the sector.

The total comprised mostly of slots revenue, which hit $2.50bn for the month – a rise of 15.5%.

Revenue from sports betting rose significantly, by 58.2% to $1.02bn, marking the first time revenue for the vertical exceeded $1.0bn. This comes with one state – Arizona – still to report its revenue figures for the month.

The AGA said the sports betting boost was due to the launch of two highly anticipated state markets – Ohio and Massachusetts – during the month. Ohio generated $208.9m in revenue for January, a record for a single calendar month, while Massachusetts reported GGR of $96.9m.

The Bay State has since added mobile to the legal product range, with the first digital bets placed earlier in March.

Meanwhile, Louisiana saw the second highest revenue of any state in sports betting activities, coming in at $197m.

Read the full story on iGB North America

The division will launch alongside a new community page on the WagerWire website, where visitors will be able to access insights, viewpoints and written commentaries from members of the WagerWire community.

This content will span video, audio and written pieces covering game previews and recaps, stories from across the sporting world, betting and fan pontifications.

Read the full story on iGB North America

Lottery.com has been in crisis since the summer of 2022, when its then-chief revenue officer admitted that he had “over-stated” the company’s cash balance. Since then, the business has seen multiple waves of resignations, the company unable to make pay-roll and a board in open civil war.

In September, a new investor was named in an SEC filing – Woodford Eurasia Assets – which then proceeded to take de-facto control of the business. According to Chowdry, this occurred “without US regulator notification or disclosure nor a majority vote of the company’s shareholders”.

The change of control happened because Woodford, as a requirement for the financing it had promised the company, mandated that four of the five current board members resign, with replacement directors appointed that would be suitable for Woodford.

Chowdry said that the promised multi-million-dollar financing never arrived, “much less occurred during the stated time and in the stated amount”.

“So, it can be argued that the changeover of the board to directors acceptable to Woodford, may be interpreted as a ‘corporate hi-jacking’ of a distressed US company by parties affiliated with Woodford in the UK, where Woodford never fully had to deliver on its published commitment,” Chowdry said.

“In other words, any legal ‘due consideration’ for the change of control was never paid. Additionally, the successor board never filed an 8-K subsequently stating any modification to the terms of the Woodford financing.”

Chowdry also questioned the independence of chairman Matthew McGahan, special advisor Nasib Piriyev and director Barney Battles, due to them being appointed as successors to the resigning directors by Woodford, in connection with Woodford’s demand of restructuring the board.

“I won’t be a part of it”

In February, the business saw fit to replace CEO Sohail Quraeshi with Mark Gustavson despite Lottery.com having only named Quraeshi to the position on a permanent basis in November. In her resignation letter, Chowdry shed some light on the events that led up to Quraeshi’s sudden exit from the company.

Because of Woodford’s failure to send the funds it had committed to, Quraeshi sent a loan default letter to the company, with the foreknowledge of the chairman. This “only resulted in his dismissal for the audacity to demand that Woodford honour payment of its loan commitment”.

“McGahan and special advisor Piriyev have repeatedly shown docile subservience to, and entanglement with, Woodford which is further highlighted by this action,” Chowdry said.

“In other words, instead of supporting Mr Quraeshi as would be appropriate, the majority of the board, which is only two members, voted to terminate him.

“Generally, what I have observed is that the behaviour of the board’s chairman and his special advisor Piriyev, have repeatedly demonstated an underlying, unstated self-interest in taking control of the company in conflict with the interests of the company’s shareholders and potentially to the advantage of Woodford and possibly other parties undisclosed.

“I won’t be a part of it.”

Lottery.com response

Lottery.com said it did not agree with Chowdry’s characterisation of the events at the company. In response to her letter, the company said that it “strongly rejects” the allegations made by the resigning board member, “by someone who suddenly resigned and departed the company”.

“Contrary to Ms Chowdhry’s claims, the company believes that it has taken proper actions, including with respect to its engagement with existing shareholders, the appointment of executive officers and corporate fundraising among others, that are in the best interests of all of its stockholders and the company,” said Lottery.com in an SEC filing.

The business said it is seeking legal guidance on how best to respond to the allegations and said that it is considering taking legal action.

Lottery.com is also facing de-listing from the Nasdaq due to multiple failures to comply with the exchange’s listing requirements. In an SEC filing the company received a notice from the stock market that – as a result of Chowdry’s resignation – it would no longer be in compliance, as it did not have enough directors on the board.

Separately, the Nasdaq has also warned that the company is also not in compliance due to its stock falling below $1 per share for a lengthy period and that it has not filed its quarterly reports.

Last year was Lottomatica’s first full year operating as a standalone business after Gamesnet Group in June 2021 acquired the Lottomatica-branded B2C operations from IGT, changing its name to Lottomatica in the process.

Towards the end of 2022, Lottomatica also agreed a deal to purchase Italian online sports betting and casino operator Betflag in what was its first acquisition as a standalone business. The deal went through in December further expanding its operations in Italy.

Although BetFlag was only consolidated within the business from December, the combination from 2021 had a major impact, with revenue in the first full year of operation increasing to €1.41bn for the year, compared to €815.4m in the previous financial year.

Revenue from the operator’s gaming franchise jumped by 93.3% year-on-year to €725.5m, representing 52.0% of total revenue for the financial year. This was driven by an 87.1% rise in the total amount wagered by players to €11.12bn.

Sports franchise revenue also increased by 122.5% to €340.8m, with customer bets hiking 118.5% to €2.53bn, despite a drop in the number of concessions and licensees, as well as a fall in the number of active points of sale by the end of the year. 

In addition, online franchise revenue jumped 17.5% to €328.6m as wagers climbed 36.0% year-on-year, helped by a wider product range and improvements to its online offering.

Turning to spending, costs were higher in almost all areas, with the main outgoing being cost of services, which was 62.8% higher. Net finance costs were also up, but the impact of revenue growth meant a pre-tax profit of €134.5m, compared to a €50.3m loss in 2021.

Lottomatica paid €55.2m in income tax and also accounted for €6.3m profit attributable to minority interests, meaning net profit attributable to the group for the year was €73.0m, in contrast to a €57.6m loss in the previous year. In addition, EBITDA was 101.8% higher at €460.4m.

Trading update

The group also published a trading update for its operations in January and February of the current year, during which it processed €4.8m in total wagers across the business. 

Revenue in the two-month period was approximately €281.0m, with online revenue up 39.0%, sports revenue 19.0% and gaming 12.0%. 

Lottomatica said guidance for the full year is between €1.57bn and €1.67bn for revenue and between €550.0m and €570.0m for EBITDA.