Spain to issue problem gambling research grants

Published in Spain’s Official State Gazette, the order called for public universities, university institutes and affiliated centres to apply, as well as public health entities affiliated with the National Health System.

Applicants will have to submit a project plan in order to be considered. Non-profit entities can also apply, but if successful, they must communicate that their objective is to carry out research initiatives.

The research that will take place under the grants must revolve around early detection of gambling harm behaviours and the harm associated with problem gambling, along with its effects on the individual, their families and their social standing. The research must also look at how to minimise the stigma around gambling harm and study the gender-specific impact of harm.

Organisations that work in conjunction with lotteries, poker, gambling and betting are also encouraged to apply.

Applications close on 19 May. Those interested must submit projects through Spain’s gambling regulator, the General Directorate for the Regulation of Gambling (DGOJ).

Media and sports leagues form responsible sports betting ads body

The body comprises some of the most significant sporting leagues in the country including the NFL, the MLBNASCAR, Major League Soccer, the NBA, the Women’s NBA and the NHL, in addition to media organisations NBCUniversal and Fox.

“As the legalisation of sports betting spreads nationwide, we feel it is critical to establish guardrails around how sports betting should be advertised to consumers across the United States,” said the Coalition in a joint statement.

“Each member of the coalition feels a responsibility to ensure sports betting advertising is not only targeted to an appropriate audience, but also that the message is thoughtfully crafted and carefully delivered.”

Consumer protection principles

The group said that it has committed to implement and maintain consumer protection policies. In service of this aim, the body enumerated six principles that it would follow.

The coalition argued that sports betting should be marketing only to adults, advertising should not be misleading, advertising should be in good taste and publishers should have “appropriate internal reviews of sports betting advertising”.

Additionally, the group said that sports betting advertising should not promote irresponsible or excessive gambling, as well as not degrade the customer experience. Publishers should also strive to review consumer complaints relating to advertising.

“Sports betting advertisements should always contain a clear, prominent, responsible gaming message, including information on responsible gambling resources, and never be directed to individuals known by the advertiser to be self-excluded,” said the Coalition.

“Gambling advertising, promotion and other integrations that encourage irresponsible gambling or degrade the consumer experience (e.g. by appearing excessively) should also be avoided.”

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Esports Entertainment CEO details B2C, divestment plans

Esports Entertainment has been in trouble since May 2022 when it admitted “doubt” regarding whether it could stay in business for another year. In November, its brands SportNation and RedZone ceased trading in the UK, while former CEO Grant Johnson exited the following month, after rumours swirled over its future.

Igelman, who was appointed in January this year, said that he carried out a company review and coordinated this with an action plan.

“Since joining the company approximately three months ago, I immediately undertook a top-to-bottom review of the entire organisation based on where I believe the esports and esports gambling industries are heading, and then tied this into a cohesive vision for the company,” said Igelman.

He explained that Esports Entertainment would now focus on expanding its B2C offerings, specifically through its Idefix platform. The company acquired Idefix as part of its $30m acquisition of Lucky Dino in March 2021.

“As a business-to-consumer (B2C) igaming operator in international markets, operating under our MGA licence, we plan to have a renewed focus on esports wagering through new betting content and offerings,” he said.

“Concurrently, the company is implementing strategies to expand its B2C esports wagering services through its Idefix platform, and we are in the final stages of integrating the Oddin.gg iframe solution on our platform for esports wagering.

“Eventually, we plan to offer an esports-first, Idefix-based B2B platform for sale and distribution to third parties.”

Divestment efforts

Igelman noted Esports Entertainment’s multiple divestment efforts, many of which have taken place this year. Igelman said that these sales took place to “streamline” its operations.

“In January of this year, we completed the sale of our esports Spanish gaming licence for approximately $1.2m,” he said. “On the immediate heels of this transaction, we completed the sale of the Bethard business in February for approximately $1.7m in cash at closing and further eliminated debt and liabilities to the Bethard business of approximately $7.5m.

“In March, we initiated the liquidation of Argyll Entertainment, an online gambling business in the UK with recurring losses.”

Igelman also explained the company’s decision to reduce its employee headcount, which was slashed by more than 37% this year.

“We have also reduced headcount from 158 full-time employees at 31 December 2022, to 99 full-time employees, inclusive of planned reductions,” he said. “Although we incurred upfront costs related to the restructuring, over time, these initiatives are expected to lower our operating expenses by over $4m on an annualised basis.”

Looking ahead

Despite a rocky start to 2023, Igelman praised the company’s “achievements” as “noteworthy” in his time as CEO.

“Esports Entertainment has extremely valuable and differentiated assets, which we believe will be key to the future of this industry,” he said. “I strongly believe that our achievements over a short three-month span are truly noteworthy.

“With the right leadership, direction and financial discipline, I am extremely confident we can establish Esports Entertainment as a leader in this rapidly emerging market, while unlocking value for shareholders.”

Sportech hails “operational stability” in 2022 as revenue grows

The business moved to the Alterative Investment Market (AIM) in 2021 after downsizing by selling parts of the business including Global Tote, which was acquired by Betmakers in June 2021, and Bump 50:50, which Sportech agreed to sell to Canadian Banknote in February 2021.

As a result of these sales, Sportech’s executive chairman, Richard McGuire, said 2022 proved to be a year of “consolidation and progress” for the business as it moved to its new operating model.

This approach incidentally led to an increase in revenue and, while annual net loss widened, McGuire said the business is in a strong position to pursue further growth in 2023, with a number of “strategic options” being considered.

“2022 was a year of consolidation and progress and the team are excited about the potential in 2023,” McGuire said. “Our investment in the growth of US sports betting has started to deliver results. 2022 operational leverage was impressive, as modest revenue gains translated to impressive gross profit gains and a return to positive EBITDA during the year. 

“We are reviewing various strategic options for the current business lines while evaluating online betting opportunities that leverage our brand, people and expertise. Cash position is strong and we will update the market regarding potential further shareholder capital returns ahead of the May AGM.”

Revenue growth

Looking at Sportech’s financial performance in 2022, revenue for the year reached £26.0m (€29.5m/$32.3m), up 13.5% from £22.9m in the previous year, during which certain assets were sold as part of the reorganisation of operations.

Breaking this down, the Sportech Venues business, which operates across Connecticut offering legal betting, generated £24.5m of all revenue. Some £19.1m of this was attributed to wagering revenue, while £3.4m came from food and beverage and the remaining £2.0m sports betting commission.

Revenue from Sportech Digital amounted to £1.5m, all of which came from service activity. This business comprises the 123Bet.com US-facing B2C trading operation, previously a white label customer of the now-discontinued Racing and Digital business and a UK-based B2B operation serving markets with a proprietary platform for lottery management.

In total, service revenue stood at £20.6m, level year-on-year, while revenue from sports betting commission was 605.0% higher at £2.0m and food and beverage revenue jumped 61.9% to £3.4m.

Turning to spending, cost of sales edged up 2.6% to £11.8m, leaving £14.2m in gross profit, up 23.5% year-on-year. 

Marketing and distribution expenses were 39.9% higher at £386,000 and, while operating costs were 5.7% lower at £14.8m, other income fell 97.1% to £120,000. Finance costs of £254,000 were almost entirely offset by £232,000 in finance income.

Despite revenue growth, pre-tax loss increased from £246,000 to £934,000. Sportech paid £79,000 in tax for its continuing operations, leaving a net loss from continuing operations of £1.0m, wider than £438,000 in the previous year. However, adjusted EBITDA improved from a loss of £1.8m to a positive figure of £1.6m.

When including discontinued operations, profit after tax attributable to owners of Sportech reached £170,000, compared to £34.6m in 2021.

Upheaval

Sportech’s year of transition also included a number of major comings and goings in terms of staff. 

Chief executive Andrew Lindley announced in May that he would step down after just eight months in the role. McGuire was named executive chairman at the same time, shortly after Giles Vardey left his role as independent non-executive chairman in April.

Nicola Rowlands exited as chief financial officer in September, while Ben Warn stepped down as a non-executive director.

Camelot hails record-breaking ID sale checks among retailers

The operator made more than 11,600 visits to retailers as part of its 2022-23 “Operation 18” mystery shopper programme, where people who are over 18, but look younger, attempt to buy products such as lottery tickets and scratchcards.

From all visits, 92% of retailers asked for ID as proof of age on the shopper’s first visit, the highest rate since Camelot launched the campaign. Camelot said that this was particularly impressive given the age to play the National Lottery only changed from 16 to 18 in 2021.

Running alongside the programme was the “Healthy Play” mystery shopping initiative, which involved more than 4,000 additional store visits, with the aim of educating retailers on the signs of potential unhealthy play among their customers.

Camelot also ran a range of its “Responsible Retailing” training initiatives, including its team making over 160,000 contacts to National Lottery retailers to offer advice on preventing underage play and how best to support healthy play in store.

As a result of these initiatives, Camelot said 94% of retailers visited passed a healthy play knowledge check, while 88% of retailers said they were satisfied with the level of service received via Camelot’s dedicated retailer hotline in Q4.

“Only a year after the age to play changed from 16 to 18, retailers have achieved their best-ever pass rate for our ‘Operation 18’ mystery shopper programme,” Camelot’s new retail director Alex Green said. “This incredible result is testament to the hard work that both retailers and the team at Camelot have put in over these past two years.

“Of course, although integral, age checks form only one branch of our overall player protection strategy in retail. We also topped up retailers’ knowledge on underage play and healthy play through our responsible retailing contact programme and delivered thousands of ‘Healthy Play’ mystery shopper visits – all of which was tested through our special knowledge checks. 

“We couldn’t be happier with the outstanding results.”

This year will be the final full year that Camelot operates the National Lottery, with Allwyn to take over in February 2024 after securing the fourth National Lottery licence last year. 

Allwyn agreed to acquire Camelot UK in November 2022 and also completed the purchase of US-facing business Camelot Lottery Solutions’ unit of companies from the Ontario Teachers’ Pension Plan Board in March this year.

Kindred approved to launch proprietary platform in New Jersey

The roll-out, Kindred said, would improve flexibility and performance through a richer set of analytics and data, as well as give Unibet customers in New Jersey an enhanced experience where products and content can be better tailored.

Kindred added that the new platform would cater for its wider, safer gambling approach in accordance with local needs and requirements.

To read the full story visit iGB North America

Cordish reveals plans for new Louisiana casino

Scheduled to open in 2025 and subject to final approval by the Louisiana Gaming Control Board, Cordish said Live! Casino & Hotel Louisiana would represent an investment of more than $250m.

The resort would replace the existing riverboat casino and feature more than 47,000sq ft of gaming space including over 1,000 slots and electronic table games and in excess of 30 live action table games.

To read the full story visit iGB North America

BGC raises £13,500 from MPs in Grand National lobbying effort

The lobbying organisation invited 40 MPs to place a charity bet on the horse race, with operators agreeing to hand over all winnings to the bettor’s charity of choice.  

Politicians who attended the event came from all sides of the political spectrum and included Labour shadow DCMS minister Alex Davies-Jones MP, levelling up minister Dehenna Davison MP, minister for enterprise Kevin Hollinrake MP, former education secretary Sir Gavin Williamson MP and COP26 president Alok Sharma MP.

“I want to pay tribute to all the thousands of people who work in betting shops to help support hard-pressed high streets and local economies; it was great to see MPs from across the political divide – more MPs than ever before – visiting bookies across the country supporting more good causes than ever before,” said BGC chief executive Michael Dugher.

Every nominated charity will receive at least £250 after BGC members Paddy Power, William Hill, Ladbrokes, Coral and Betfred all pledged to support charities even if the horse was not successful. Money went to Guide Dogs for the Blind, Age UK and a variety of regional food banks.

“The regulated betting and gaming industry already makes a huge economic contribution throughout the UK, with a recent report by EY revealing BGC members support 110,000 jobs, generate £4.2bn in tax and contribute £7.1bn to the economy in gross value added,” said Dugher.

Benton sting

The BGC’s latest lobbying campaign comes in the wake of a high-profile scandal involving a MP known for his close ties to the gambling industry, Scott Benton.

The MP for Blackpool South said to undercover reporters that he would be able to lobby ministers, table parliamentary questions and leak a copy of the upcoming Gambling Act review white paper up to 48 hours before it was made public, in violation of parliamentary rules.    

Prior to becoming aware that the individuals he was speaking to were journalists, Benton contacted the parliamentary standards commissioner to clarify the rules in this regard and has had no further contact with the persons involved.

Zeal and BildungsChancen raise €15m for social projects

The money was raised through Zeal and BildungsChancen’s joint lottery products – Freiheit+ and Deutsche Traumhauslotterie.

The money has helped to support 250 charity projects. In total, 80% of the money was given to educational projects ran by BildungsChancen shareholders – Stifterverband, SOS Kinderdörfer weltweit and Deutsche Kinder und Jugendstiftung. The remaining 20% was directed towards independent sponsors.

“We are proud of having already generated 15 million euros for social projects together with BildungsChancen,” said Helmut Becker, CEO of Zeal. “The aim of our cooperation has always been to make a valuable contribution to society and to financially support as many educational projects as possible.

“The fact that we have already been able to support 250 different projects in a very short time with a true record sum pleases us even more.”

A board of trustees decide on the allocation of funds three times every year.

“Our goal is to support educational projects,” said Benedict M Rey, managing director of BildungsChancen. “For this reason, we are proud to be able to support so many educational organisations together with Zeal and the joint lottery products.

“We will continue to offer attractive products together to support educational projects in Germany and around the world.”

A look back on Problem Gambling Awareness Month 2023

This year, operators across the industry have come out in their droves to support PGAM, as well as the NCPG that organises it. 

Not one to miss out on an opportunity to continue the conversation on problem gambling, Flutter-owned Fanduel marked the month by donating $100,000 (£80,800/€91,7000) to the NCPG to continue to support the NCPG’s Agility Grants programme.

For NCPG executive director Keith Whyte this was just one element that made the 20th annual PGAM “the best ever”.

“We saw operators including Caesars, FanDuel and BetMGM announce important responsible gambling programmes and commitments,” he says. “And we witnessed a tremendous swell of grassroots support at the state and local level.” 

Has the need for problem gambling awareness increased?

However, for advocacy groups and some politicians, the increase in states legalising sports betting in the country has been a cause for concern.

At the end of February, representative Paul Tonko introduced the Betting on Our Future Act into the House. The bill is modelled after the Federal Cigarette Labelling and Advertising Act of 1965.

Essentially, it sets out to ban the advertisement of sportsbooks on any form of electronic communications under the jurisdiction of the Federal Communications Commission (FCC). Among some of these mediums include TV, radio and the internet.  

In his reasoning, Tonko cited half-a-billion marketing spends and promotions advertising “risk-free” or “no-sweat” bets as predatory and potentially harmful. However, with the exception of US gaming giant FanDuel’s $1.0bn marketing spend last year, the industry as a whole has been decreasing its advertisement budget.

An increasing risk?

Keith Whyte, executive director of national council on problem gambling

Nevertheless, Whyte still believes that the volume of sportsbook advertising in media poses a risk. 

“One of the biggest challenges in the US right now is advertising,” he says. “There’s been an enormous surge in advertising around sports betting and online sports betting.” 

As sports betting continues to grow in both popularity and legalisation in the US, the NCPG estimates that the risk of gambling grew by 30% between 2018 and 2021.

Whyte added that consumers and legislators alike have been contacting the NCPG regarding concerns on sports betting advertisement volume.

“We’re getting calls not just from ordinary citizens but from members of congress specifically reaching out to the NCPG to express concern about the amount of sports betting advertisements seen on radio and TV during the games,” says Whyte.

What can be done to raise standards?

Whyte says that operators and legislators can promote a myriad of safer gambling practices.

Third party assessment and compliance of safer gambling practices is the way forward. He says this is something the industry must continue to rely on.

Importantly, Whyte supports the idea of voluntary harmonisation of regulations across both state and independent operators.

“Operators and vendors should be able to provide the same consumer protections in each state,” he argues.

It’s difficult for both operators and consumers alike. Companies have to deal with different regulations such as minimum age and self-exclusion. Consumers, on the other hand, have to weed through the approach to getting problem gambling help based on how well their state addresses it.

Whyte notes that “right now, we’re not doing the best national practice”.

“Each state is creating, or not creating, its problem gambling system on its own. They haven’t harmonised their responsible gambling standards. We have 27 problem gambling helpline numbers in the United States – you only need one help line number,” he says.

Whyte says that all of the varying helpline numbers is throwing up even more problems.

“Could you imagine if the 911 number was different in every state?” he muses. “1-800 GAMBLER is the national number for the problem gambling and works everywhere across the United States – just use it.”

Ramping up regulatory efforts

However, the industry has definitely made positive changes towards safer gambling. Whyte believes that states like Massachusetts, with the Voluntary Self-Exclusion Programme (VSE), are leading the way in terms of safer gambling practice.

Despite the progress, he notes that there is still some way to go.

whyte says legislation may be the only answer

“We’ll get there one way or the other,” he says. “And unfortunately, it may take legislation [and] regulation, but that’s okay.”

The legislation he speaks of may just happen. The NCPG has been involved in a new act expected to be introduced into the house by representative Claudia Tenney from New York.

The Gambling addiction Recovery, Investment and Treatment (GRIT) act proposes to allocate 50% of preexisting sports betting excise tax towards problem gambling help.

Whyte notes this would not be a new tax on the industry, but rather a redirection.

“We believe there’s a great precedent because at the federal level there are excise taxes on alcohol and tobacco sales,” he explains. “A large share of that money goes back to states to help them deal with the consequences of alcohol or tobacco.

“It’s just as appropriate that, when the federal government taxes sports betting, some of that tax revenue goes back to the states to help mitigate the consequences of gambling problems.”

Coincidentally, another bill has just been introduced into the house by the co-chairs of the bipartisan congressional gaming caucus. This act would end the federal excise tax on sports betting all together.

Entitled the Discriminatory Gaming Tax Repeal Act, the argument behind this bill is also rooted in issues in the industry: the co-chairs believe that the federal excise tax encourages illegal gambling and harms legal operations.

Changing landscapes

THE GOVERNMENT IS OBLIGATED TO SET ASIDE MONEY FOR PROBLEM GAMBLING

Regardless of which legislation comes to pass, if any, it is clear that the political landscape for gambling is changing, particularly in terms of the growing sports betting market.

Recently, Washington DC authorities have been criticised for removing problem gambling services funding from the proposed budget for 2024.

In the past three years, $200,000 had been set aside for gambling-related problems – however, the money was never spent.

The Sports Wagering Lottery Amendment Act of 2018 mandates the use of the first $200,000 of income earned from sports betting. This money must be allocated to support programmes and research related to gambling addiction.

American Gaming Association (AGA) senior VP Chris Cylke argues that this is the “latest misstep by the DC government in their effort to offer a viable legal sports betting market”.

Whyte understands that progress is not linear. “With more than 50 years of advocacy experience we know that setbacks happen,” he says.

“That just means we redouble our efforts and never give up or go away. In the case of DC we are glad that many of the companies operating gambling in DC have stepped up to support our efforts to pressure the government to reverse course.”    

It’s something of a fall to earth. After the highs of PGAM 2023, Whyte still has work to do.