Wild Outlaws by Light & Wonder

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Game Type:Video SlotGo Live Date (expected):Already live!Game special features:Wild Revolver bonusNumber of paylines:1,024Number of reels:6RTP% (recorded/theoretical):94% – 96%Variance/volatility:HighNumber of symbols to trigger feature/bonus?:–Can feature be retriggered?:–Number of free spins awarded?:–Stacked or expanding wilds in normal play?:–Stacked or expanding wilds in feature play?:–Number of jackpot tiers?:0Auto-play function?:Yes

Flutter reveals shareholder support for additional US listing plans

Last month, Flutter said the listing would support its wider growth plans in the country, as well as drive further growth within its FanDuel business.

Though specific details of the listing have not yet been disclosed, Flutter said the initiative would strengthen its profile in the US, better enable the recruitment and retention of talent in the country and grant access to deeper capital markets and US domestic investor.

Other potential benefits sounded out by Flutter included greater overall liquidity in Flutter shares and the optionality to pursue, as a second step, a primary US listing, listed as one of the criteria for access to important US indices.

Following consultation with shareholders representing a significant majority of its issued share capital, Flutter said there was strong support. The group will put a formal resolution to shareholders at its AGM on 27 April.

In order to pass, the resolution would require approval from at least 75% of the votes cast by shareholders. Should this be the case, Flutter would aim to implement the additional listing during Q4.

FY22 growth

The announcement comes after Flutter earlier this month reported a 27% year-on-year rise in revenue during its 2022 financial year, primarily due to ongoing growth within the US and its acquisitions of Sisal and Tombola.

The operator said its US-facing FanDuel brand continued to increase its market share, with this reaching 50% in the online sportsbook segment in Q4 and 21% for igaming, with the US business expected to be earnings-positive in 2023 before interest, tax, depreciation and amortisation (EBITDA).

“We have an unparalleled number one position in the US where we continue to go from strength to strength,” Flutter chief executive Peter Jackson said. “The combined power of the ‘FanDuel Advantage’ and the ‘Flutter Edge’ delivered our most successful launches to date in Maryland and Ohio.”

Also this month, US Securities and Exchange Commission (SEC) ordered Flutter to pay a $4.0m civil penalty over The Stars Group’s use of third-party consultants in Russia.

Flutter acquired The Stars Group, operator of a number of brands such as PokerStars and Full Tilt, in May of 2020, with the SEC order referring to a period between May 26, 2015 and May 15, 2020.

Tab NZ pens long-term strategic partnering with Entain

Under the arrangement, which remains subject to Ministerial approval, Entain will support Tab NZ with delivering wagering and broadcast functions in the country for a period of 25 years.

Tab NZ said it took the decision to enter such a partnership due to increasing competition, rising costs, capital constraints and other challenges that have impacted its ability to deliver adequate funding to racing and sports.

With these challenges expected to increase, Tab NZ said it spent the last six month engaging with a range of operators in relation to a strategic partnering arrangement and received a number of proposals, including the successful pitch from Entain.

Specific terms of the deal will remain commercially confidential until approval is granted, but it was confirmed that Entain was selected based on a wide range of criteria, including operational expertise, cultural alignment with Tab NZ and the commitment of the partner to uplifting its harm minimisation and responsible gambling efforts.

“Tab NZ faced an uncertain future in a David and Goliath battle with international wagering operators and a lack of capital to both compete and meet its potential,” Tab NZ chief executive Mike Tod said. “Today’s announcement is a significant milestone toward the transformation of Tab NZ and those who rely upon its growth and long-term success. In the absence of a strategic partnering arrangement, Tab NZ would be further cutting distributions in the next financial year.”

“This proposed strategic arrangement with Entain provides a certain, material and immediate uplift in the funding Tab NZ can provide New Zealand racing and sports ensuring that these industries not only survive but thrive. It will allow us to greatly improve our harm minimisation and responsible gambling efforts and provides immediate job security and long-term job creation in New Zealand to the advancement of our nation at large.”

Strengthened finances

Tab NZ said the proposed arrangement would enhance the viability of New Zealand racing and sport, as well as materially boost the fortunes of both, and has the support of key stakeholders including the three racing codes and Sport NZ.  

Other key benefits cited included guaranteed funding to Tab NZ of greater than NZ$1.00bn (£507.1m/€576.5m/US$620.1m) in the first five years to support the revitalisation of the racing industry with material upside over the life of the arrangement.

Tab NZ said it would also significantly strengthen its financial position by facilitating an upfront payment to racing and sports, in addition to an increase in future payments over time relative to Tab NZ’s current trajectory of funding reductions. The deal could allow for approximately $5.00bn to be delivered over the 25-year period. 

Meanwhile, the arrangement would allow for investment in and uplift in Tab NZ’s harm minimisation and responsible gambling efforts, as well as upfront payment to prevent unlicensed offshore operators from providing wagering services in New Zealand.

The partnership would include a 24-month employment guarantee for Tab NZ’s employees and a commitment to retain and refresh the Tab NZ brand, as well as additional support to the racing industry including a $10.0m sponsorship of an enhanced racing carnival and the establishment of other community linked initiatives.

“This is a unique opportunity to shape the future wagering experience for customers and to support New Zealand’s racing and sporting industries,” Entain Australia chief executive Dean Shannon said. “We have a compelling vision for the future of Tab NZ, which includes a renewed focus on innovation and technology, and a long-term commitment to all racing, sport and industry stakeholders.

“As the partner of choice for New Zealand, we have made a firm commitment to employment continuity for at least 24 months, with the team at Tab NZ essential to our future vision and growth of the market in New Zealand. 

“We applaud Tab NZ for how the process has been run to date and we look forward to working with all stakeholders on necessary approvals to finalise the transaction.”

Waterhouse VC: Spreading to the subcontinent

India’s online wagering market is growing at a rate of over 20% annually (Sportskeeda) and has become an attractive market for global operators and B2B suppliers due to the country’s rapid development – GDP per capita has doubled since 2009 – and the presence of over 370 million bettors (MyBetting India).

The Indian cricket wagering industry alone is estimated to already be worth US$150bn (£122.32bn/€139.30bn), with around 85% of Indian bettors wagering on the sport (GiiResearch). In India, cricket’s major wagering events are the Indian Premier League and ICC Men’s T20.

One example of a dominant fantasy sports business is Dream11, which offers fantasy cricket, football, basketball and hockey, amongst numerous other sports.

With a staggering 160 million active users, the company’s valuation reached an impressive $8bn in November 2021, earning the title of India’s first fantasy sports unicorn in 2019. Dream11 was founded in 2008 and had just 2 million active users in 2016. The company’s exponential growth to 160 million users underscores the tremendous potential of the Indian market.

There are only three Indian states that have officially legalised wagering: Daman, Goa and Sikkim.

Since the Information Technology Act (2000) does not cover online wagering activities and India’s original wagering legislation, the Public Gaming Act (1867), predates online wagering by over 100 years, the legal status of wagering in India remains grey.

However, the government has recognised the potential tax revenue that the burgeoning middle class’ interest in wagering represents, and is considering a new gaming bill to replace the Public Gaming Act.

Junglee Games

Popular casino games in India include traditional games like blackjack, poker, roulette and slots, as well as two local games: Teen Patti and Andar Bahar.

Some of the largest operators have developed businesses in India, including Bet365 and Betway (owned by Super Group). Global operators are keen to cater to popular local games, and in 2021, Flutter invested in Junglee Games, an Indian gaming business focused on rummy, a card game that has been played in India for over 400 years.

Junglee Games, which is 57.3% owned by Flutter, operates market-leading skill games across desktop and mobile in India, with its flagship product, Junglee Rummy, being one of the largest rummy brands in the world.

In 2022, Junglee grew its average monthly players by 78% to over 50 million players and Flutter sees potential in leveraging its global scale and operational expertise to expand the company’s product offering, including its recently launched DFS (daily fantasy sports) product. Flutter has an option to buy all of Junglee Games by 2025.

Junglee exemplifies Flutter’s broader strategy of building international leadership positions both organically and through acquisition. Flutter’s other recent acquisitions include:

Adjarabet (2019) – leading operator in Georgia, with a strong presence in ArmeniaSisal (2022) – largest operator in ItalyTombola (2022) – premier UK online bingo operator

Back to B2B business

We believe that an operator’s profitability is highly dependent on their customer acquisition cost (CAC), and a handful of scale operators earn the majority of profits in most markets because they have the lowest CAC and the best operational efficiencies.

Flutter is our only publicly listed B2C investment and has strongly outperformed its peer group over the past 12 months (+64% performance compared to -19.5% median performance of peers), as of 3 March 2023.

In spite of the growth potential in the Indian wagering industry, there are also several challenges that operators will need to navigate. One major challenge is the lack of regulatory clarity in the market, which creates uncertainty for operators and investors. The Indian government’s new gaming bill creates a risk that operators could face regulatory crackdowns or changes in the regulatory environment that could impact their business.

Despite this uncertainty, the Indian wagering industry represents a significant opportunity for operators and B2B suppliers able to navigate the market successfully. With a population of over 1.3 billion people and a rapidly growing middle class, there is significant demand for online wagering and gaming services.

As the Indian government moves towards regulating the industry, there will be even greater opportunities for operators and suppliers to establish themselves in the market and capture a share of the growing revenue opportunity.

Media

In February, I contributed to iGB’s article, “Predictions: The Investment Climate in 2023” (link), where I discussed how the macroeconomic environment and access to funding has changed for the wagering industry. I also discussed the industry’s potentially overhyped products.

For wholesale investors interested in following wagering and gaming industry news and trends, please follow our updates on Twitter (@waterhousevc) or through our website at WaterhouseVC.com.

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Please note the above information in relation to Flutter, Bet365, Betway and Super Group is based on publicly available information in relation to the company and should not be considered nor construed as financial product advice. Waterhouse VC has a position in Flutter. The information provided in this document is general information only and does not constitute investment or other advice. Readers should consult and rely on professional investment advice specific to their individual circumstances.

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Putting down roots in emerging markets

Beu spoke to iGB just one month shy of Gamingtec’s 10-year anniversary. He says the company has changed its focus over the decade, slowly morphing from a B2C entity to a B2B space – a shift that has happened largely in recent years. 

“The company started out mostly in the B2C area – we have a couple of brands that we’re still managing,” says Beu. “The B2B focus started being pushed more and more over the past couple of years.” 

Gamingtec’s B2B focus makes up a large part of Beu’s role as commercial director. Although he is a fairly recent addition to the fold – having joined in November 2021 – Beu’s industry career dates back to 2014, comprising of the likes of EveryMatrix, BetBrain and esports data company HUDstats. 

Andrei Beu, commercial director, Gamingtec

Although the renewed focus on B2B has pushed Gamingtec to consider its market presence, Beu says Gamingtec is mainly focused on emerging markets at the moment, with the company proving popular in those. 

However, he adds that the more established regulated markets have not fallen to the wayside – particularly those Gamingtec has offices in, such as London and Ukraine. 

“We are mostly handling emerging markets at the moment,” he explains. “This is where we are picking up most of our attention from.”

“We are definitely looking into regulated markets, slowly and steadily.” 

First and foremost 

As with most igaming companies, Gamingtec is paying close attention to Latin America – a fitting area for Gamingtec, given that it comprises a mix of emerging and established regulated markets. 

“The next big region for us is LatAm, as it’s a market with huge potential and gives us the chance to innovate,” says Beu. “I think there are a series of markets which already have a proof of concept, like Brazil, Peru, Chile, or Colombia.” 

“Most of them are already regulated, which creates a nice environment to grow and a potential to find good business.” 

Beu recognises that Gamingtec is eyeing up LatAm alongside a myriad of competitors. But that’s less of a negative to him, and more of an opportunity to be increasingly efficient with its offerings. 

“We think that even though we are no longer talking about being the first in LatAm – everyone is already targeting that area – we still think that there’s a lot of room to improve and innovate.” 

Further afield 

Although LatAm is a hot topic in the industry, it is not Gamingtec’s current sole focus. Beu says the company also has Africa in its sights. 

Beu expects a lot more attention to be paid to markets in Africa over the next few years. Currently, he views the continent as an untapped opportunity. 

Beu says Gamingtec has its eye on two particular emerging markets – Latin America and Africa

“We’re considering that in the next three or four years, Africa will get a lot of recognition, especially with the surge in new technologies,” he says. 

“It’s probably one of the less targeted markets while also having one of the biggest amount of players. So hopefully we will be one of the first to get there.” 

Like LatAm, Beu views Africa as an optimal space for Gamingtec to make its mark, especially as it has a largely land-based focus.  

“Most of the African markets are still into land-based [gaming], so we see the opportunity to come there as one of the first to educate the market,” he says.  

“Why not be one of the game changers? This is what we hope to see.” 

Plenty of fish in the sea 

With this recent focus on B2B also came an inclination to add more new content to Gamingtec’s offerings on a regular basis. The most recent of these includes a partnership with slots provider Fugaso, a move that Beu hopes will lead to expansion in emerging markets and cultivate a strong offering in existing markets. 

“Every month, we aim to get new content added to the platform,” he explains. “When it comes to this new partnership with Fugaso, it’s another interesting and big partner added to our carousel of games, as we like to call it.” 

“We hope that with this new added content and gamification, we can penetrate new markets and add more excitement to the existing ones.” 

While Beu is optimistic about what Gamingtec has to offer, he is candid about its place in a saturated market. 

“As for ‘Why Gamingtec?’… I think that’s a question that everyone gets, and it’s not an easy one to answer, especially nowadays, with so much competition out there.” 

He explains that the difference is in the detail, and how Gamingtec strives to personalise the customer experience. 

“Everyone is providing the same kind of idea of a white label/turnkey solution,” he muses. “The differences are very small, probably to the extent of a couple of bits and pieces of the offering that can be tailored in one way or the other.” 

But no matter how far Gamingtec extends its reach, Beu says it will never stray far from its customer-centred focus. 

“We are there for the client, and the client is at the centre of the business,” he says. “We strive to put everyone in command, and we only aim to guide them to success.”  

KSA issues cease-and-desist order to Winning Poker Network

KSA first investigated Winning Poker Network in September last year and found that the operator had illegally been offering games of chance. 

After being contacted by the regulator, Winning Poker Network said that it would halt these activities.

However, following a further check by KSA, while the original Winning Poker Network site was no longer accessible from the Netherlands, it was possible for Dutch players to create an account on another website run by the operator.

As such, KSA said consumers in the Netherlands could use these accounts to play games of chance illegally with Winning Poker Network.

The regulator ruled that as the offering of illegal games of chance had not been completely stopped, it issued the cease-and-desist order, subject to periodic penalty payments.

Should the breach continue, Winning Poker Network will be required to make a weekly payment of €25,000 (£21,954/$26,914) for each week it offers illegal games of chance, up to a maximum of €75,000.

KSA added that it would continue to check on the operator to assess further breaches. 

AGRC: 46% of Australian gamblers “at some risk” of gambling harms

The AGRC placed the issue of gambling harms prevalence in the context of a public debate in Australia about the rise in gambling advertising nationwide. According to the Victoria Responsible Gambling Foundation, national spending on gambling advertising grew to AU$287.2m (£155.7m/€177.3m/US$190.0m) in 2021 compared to the AU$15.9m spent by industry the previous year.

“Policy makers, service providers, researchers and the broader community have raised concerns about the proliferation of wagering advertising in Australia and its impacts on gambling behaviour and risk of harm,” said the study.

according to research bodies, gambling advertising has increased dramatically in australia in recent years

“To enhance understanding and inform improved policy responses, we asked Australian adults about their participation in gambling, attitudes towards wagering advertising, how exposure to advertising influences their behaviour and their views on potential policy responses.”

Survey results

The AGRC survey found that gambling was widespread throughout Australian society. According to the organisation, 73% of all Australian adults have placed a bet at least once in their life. Those who regularly gamble at least once a week represented a significant chunk of the total population at 38%.

The Foundation also said that the most popular products people placed bets on are lotteries, scratch cards, horse racing, sports and poker machines.   

In terms of the relationship between gambling and gender, the study showed that men gambled more than women on every product included in the survey. Men gambled more frequently, tended to spend more money – and were overall more likely to be at risk of experiencing gambling harms.

Attitudes to industry

The survey also asked Australians in general about their attitudes to gambling in country, even if they did not regularly place bets. Some 77% of the total population agree with the statement that there are “too many opportunities for gambling nowadays”.

Most Australians also agreed that gambling was “dangerous for family life at 68%” and the activity “should be discouraged at 59%”.    

Most adults also reported to being regularly exposed to gambling advertising in the past 12 months, with 78% saying that they saw or heard gambling advertising at least once a week, while 41% said that it was more like four times a week.

The AGRC also said that young people – defined as those aged 18-34 – were more likely to be exposed through social media or online, while people aged 55+ were more likely to see advertising through television, radio or print.

Support for reform

The research institute also asked individuals who responded to the survey about their political attitudes about gambling, and gambling adverting in the country.

The study found 64% of Australians responded affirmatively to the question of whether the government should play a bigger role in deciding how wagering was advertised.

The Foundation said many Australians supported outright bans of gambling advertising, highlighting that 53% said that they supported a watershed ban on all advertising broadcast before 10:30pm, compared to the 19% who said that they opposed the measure.

Close to half (47%) said that they would want all social media advertising banned, to 23% who were opposed, while 42% of people said that they were in favour of sponsorship bans.

“Findings from our research can help to inform future regulatory and policy responses to minimise gambling-related health, social and economic harms to affected individuals and communities,” said the report.

Entain to provide funds for Gordon Moody Alumni Project

Entain has supported Gordon Moody for more than six years with financial donations and a range of other resources, with the latest funding initiative serving as an extension of this relationship.

Initially a two-year program, the Alumni Project will establish a network of former problem gamblers who have been successfully treated by Gordon Moody and want to support others who may be seeking, or have recently finished, treatment.

The project will include a peer mentor programme with training and supervision that can be offered both before and after treatment takes place. The program will provide a number of flexible part-time and full-time paid positions for alumni. 

The Alumni Project will cost approximately £740,000 (€842,506/$906,758) over its first two years and will be funded entirely by the Entain Foundation. 

“We have been proud and active supporters of Gordon Moody for a number of years now and are delighted to continue that support with the funding of the charity’s Alumni Project,” Entain chairman Barry Gibson said. “This is in addition to the more than £40m we have voluntarily donated to GambleAware, who commission treatments for gambling addiction across England, Scotland and Wales, free at the point of delivery.

“Gordon Moody’s Alumni Project will be the first time that those who have completed their treatment will be able to support those seeking treatment. It will provide people who are most at risk from gambling harm with direct support from those who have been in their position and recovered.”

Gordon Moody chief executive Matthew Hickey added: “The Alumni Project will help Gordon Moody reach more people who need our support by putting the voice of lived experience at the heart of both our engagement and residential services. 

“Support from the Entain Foundation is crucial to help Gordon Moody grow its services and meet the demands of those needing treatment and support. We are delighted to continue our work with Entain and for their ongoing support and financial donations.”

Esportes da Sorte sponsors Brazil’s Club Athletico Paranaense

Under the deal, the length of which was not disclosed, Esportes da Sorte will serve as the main shirt of Esportes da Sorte, with its branding to appear on the front of players’ jerseys.

Esportes da Sorte will also benefit from branding exposure on other official club properties throughout the partnership. 

“Athletico is a model club and exudes a business culture, modernism and innovation, values that are also part of the DNA of Esportes da Sorte,” Esportes da Sorte chief executive Darwin Filho said.

We arrived here not to be another master sponsor, but to embrace the club and build memories with its passionate fans. Expect a lot of support, interaction and activations with the fans.”

Club Athletico Paranaense chief executive Mario Celso Petraglia added: “We are pleased and proud to count on Esportes da Sorte at this very important moment in the club’s history.”

The team will this year celebrate its 99th anniversary.