Month: April 2023

Since the launch of the new Ukrainian responsible gambling rules in 2021, the maintenance of a self-exclusion register has been a “priority task” for KRAIL.

The scale of the list is small by the standards of other market’s digital self-exclusion schemes, such as Gamstop in the UK and Cruks in the Netherlands. A total of 687 individuals have been named on Ukraine’s list as of April 2023.

“Out of 687 entries currently in the register, 686 were entered on the basis of statements about self-limitation,” said KRAIL chairman Ivan Rudy. “A person aware of the risks of gaming addiction turned to KRAIL on his own.

“Therefore, there is certainly a demand for a conscious attitude to the gambling sphere, first of all from those who have already faced difficulties.”

However, while the numbers of these self-excluded remains small in absolute terms, the total is increasing at a rapid pace. In 2021 and 2022, KRAIL added 195 and 315 people to the register. This compares to the 245 who found themselves on the list in the first four months of 2023.

Ukraine self-excluded trends

Of the total number of individuals present on the list, the majority are young – with the age ranges of 21-30 and 31-40 representing a rank majority of the total at 272 and 278 respectively. In comparison, KRAIL noted only 104 entries for those aged 41 to 50, and 33 entries for those aged 51 and over.

KRAIL highlighted that the list is dominated by men, representing 643 of the total number on the register as opposed to 44 about women.

Many applications were submitted by relatives of players. In total, 45 applications were submitted by mothers, 8 by fathers and 13 by wives.

The race is on for casino licences in New York City. Casino gambling in the downstate area is a sure winner commercially with the potential for seismic impact.

Covering the gambling business in Asia, I’ve seen the transformative power of urban casinos. Before casino liberalisation in 2001, Macau was on a losing streak that began in the mid-1600s. Its late 1990s symptoms included economic stagnation, high unemployment and gangland shootouts downtown. 

Over the past 20 years, six licensees have invested more than $40bn in Macau casino resorts featuring luxurious hotels, theatres, arenas, shopping and convention space, with the just-completed licensing exercise promising a further $14bn over the next decade.

Tangible benefits of casino expansion

Before Covid, Macau’s casino revenue of $36.6bn in 2019 was more than five times that of the Vegas Strip. Gaming tax revenue created a $72bn government financial reserve, more than $120,000 for every Macau resident. 

Until the pandemic, Macau had virtual full employment and was on track to overtake Qatar for the world’s highest GDP per capita.

Cambodia tourism was still a punk rock punchline in 1995 when NagaCorp opened its Phnom Penh casino on a barge docked in a Mekong River tributary. 

Naga moved onshore in 2003 and, after raising capital as the first casino company to list on the Hong Kong stock market, built NagaWorld, which has grown to 1,700 guest rooms with a Broadway style theatre and underground shopping mall spanning the boulevard separating its original and Naga2 branches. 

Naga works closely with Chinese state-owned companies and the Cambodian government to grow tourism, supporting the launch of a Cambodian international airline connecting second-tier Chinese cities with Phnom Penh and Siem Reap, site of Angkor Wat. 

From 220,000 foreign visitors in 1995, Cambodia welcomed 6.6 million in 2019, and, according to World Bank statistics, tourist expenditures rose from $71m to $5.31bn, the sector accounting for 12% of Cambodia’s pre-pandemic GDP.  

Singapore ups the stakes

Singapore legalised casinos in 2005 to add “the X-factor – that buzz that you get in London, Paris or New York,” Prime Minister Lee Hsien Loong said, aiming to prove the city-state was not your father’s Singapore any more. (Actually, not his father’s Singapore, since Lee is the son of national patriarch Lee Kwan Yew.) 

Singapore coined the term integrated resort, enthusiastically adopted by the casino industry, to describe the multifaceted entertainment complex it sought from bidders. 

Marina Bay Sands’ trio of 55-storey hotels towers connected by a three-acre SkyPark, 200 metres above the Singapore River, featuring the 140-metre infinity pool seen in the film Crazy Rich Asians and millions of selfies, make it the new icon of Singapore, its 100,000m2 convention centre a strategic national asset. 

Singapore’s visitor arrivals and tourist spending both more than doubled since the resort’s 2010 opening, reaching 19.1m and $20bn in 2019. Marina Bay Sands is regularly the single most profitable casino property on earth. 

Public backlash to casino plans

Initially, though, Singapore’s casino legalisation faced the biggest public backlash of any government initiative ever; a greenfield casino in New York City, whether in Manhattan, Long Island City, Willets Point or Coney Island, can expect a similarly harsh reception. 

But after living with Marina Bay Sands for a dozen years, Singaporeans have largely embraced it as the calling card of a country renowned for more than its chewing gum ban. Located in a once remote appendix of downtown, MBS has become an integral swatch of Singapore’s urban fabric and an object of global envy. 

New York City has what it takes to match Singapore’s casino success. A study from consultant Spectrum Gaming estimates a Manhattan integrated resort could rake in gaming revenue as high as $2.35bn.

It could generate $1.2bn in taxes while creating 21,500 permanent jobs plus 3,361 construction job years.

Those are big numbers – for Macau, Cambodia or Singapore. For New York City, they won’t move the needle. With 600,000 residents, Macau has less than one-tenth the Big Apple’s population. Cambodia had a primordial economy in 1995, and even today, at purchase powering parity, its national GDP is 5% of New York City’s. Singapore ranks among the richest nations on earth per capita, but its GDP is a quarter of NYC’s.

Limited scope for New York casino growth

The potential casino tax windfall, even counting an expected one-time $500m licensing fee for each casino, barely makes a ripple in New York State’s $220bn annual budget.

Half of casino taxes are earmarked for education, but projected downstate gaming levies represent less than 2% of that budget. 

Of course, few visitors admire Marina Bay Sands for its economic impact; they love its gracefully sloping towers, lotus-inspired museum and sun-splashed shopping mall packed with enough luxury brands to make Fifth Avenue blush. 

Chances of New York City getting a similarly showstopping casino resort are nonexsitent. Downstate licence contenders include gambling heavyweights Sands, Wynn, Caesars, Mohegan Gaming and Hard Rock, but there may only be room for one of them. They’d likely invest just a fraction of the nearly $6bn it took to create Marina Bay Sands.

The frontrunners for downstate casino licences are MGM Resorts International and Genting Malaysia. MGM Resorts operates slot machine parlours at Yonkers racetrack, while Genting Malaysia operates slots at the Aqueduct racetrack. 

Both have lobbied long and hard to add table games. At those racinos, the house won $1.5bn last year. 

They reach that stratospheric figure largely thanks to the 23 million people in the New York City metro area rather than any skill on the part of operators. There’s scant evidence either company has a higher gear it’s saving for the advent of table games.  

MGM Resorts’ chequered development record

Despite its famous name, MGM’s resort development record is spotty at best. CityCenter in Las Vegas, lately rebranded Aria, cost nearly $10bn and hasn’t made an impact remotely commensurate with that investment. 

In Macau, MGM attracted ridicule for its mediocre exterior design and main entrance removed from brisk downtown pedestrian traffic. A decade later, MGM replicated the design in Macau’s dominant Cotai casino hub and made another questionable entrance placement. It’s a company that knows how to repeat its mistakes. 

Genting Malaysia is part of the Genting Group, which owns Resorts World Sentosa, Singapore’s other integrated resort that few rhapsodise about. 

Genting’s consolation prize

“Genting only finishes first in markets where it has a monopoly,” including its homeland, Malaysia, and, until now, New York City, a consultant requesting anonymity says.

Genting tried to bring Asia-style crony capitalism to Queens in a 2012 backroom deal with then-Governor Andrew Cuomo to build a new convention centre at Aqueduct in exchange for a full casino licence. Widespread opposition scuttled the plan.  

Genting’s consolation prize, Resorts World Catskills, tops New York’s private casino revenue table. However, it has fallen well short of projections since its 2018 opening. 

Amid mounting losses, Genting chairman Lim Kok Thay, the founder’s son, orchestrated a buyout of his family’s private stake in the property by shareholders of publicly listed Genting Malaysia. 

The elegance and elan of a bowling alley

Each downstate slot parlour exudes the elegance and elan of a bowling alley. 

Yet their locations along major thoroughfares in the midst of dense populations ensure they will prosper as full-service casinos and significantly disadvantage any new downstate rival. Gamblers’ presence on management radar via loyalty programmes also helps.

Competition within driving distance

A New York City casino will also face competition from dozens of casinos within driving distance. There’s the massive Native American Mohegan Sun and Foxwoods complexes in Connecticut, and Atlantic City’s casino cluster.

Under those market conditions, plus a $500m licensing fee, other gaming companies will be interested in that third downstate licence, but not to the tune of $6bn. Declared bidders’ sketchy plans don’t disclose their projected budgets.

Caesars proposes locating a Times Square casino in partner SL Green’s existing 1515 Broadway office tower; so much for those estimated 3,361 construction job years. 

Las Vegas Sands, developer of Marina Bay Sands, believes so strongly it can duplicate that magic in New York City that it’s proposing a casino hotel on the site of Long Island’s Nassau Coliseum, 45km east of Central Park. The LVS proposal features “outdoor community spaces,” great for flea markets and bake sales.  

So far, proposals barely mention iconic features – on the Far East Side, Soloviev Group proposes adding New York to the lengthy list of cities with a downtown Ferris wheel – or wow factors because there won’t be any. Who needs them? 

New York casino plans on a hiding to nothing?

New York City invented the buzz Lee Hsiang Loong craved. It has Broadway-style theatres – including the Minskoff at 1515 Broadway – unparalleled food, entertainment and shopping.

You can’t top any of that on the limited budget a third downstate casino dictates. The state could offer just one downstate casino licence in the hope of encouraging a casino resort worthy of New York City, rather than three uninspired cash boxes. 

Spectrum’s report estimates three casino licences will marginally maximise fiscal benefits for the city and state; three licences will undoubtedly maximise benefits for politicians and their accomplices.

Home to Broadway, the Empire State Building, Katz’s Deli, the Met, the Mets, the Yankees and Lady Liberty, New York City needs casino gambling like a fish needs a bicycle. 

With the odds stacked against hitting the integrated resort jackpot, the city should follow the smart money and stay out of the game. 

iGB understands that the impending release of the document is the reason that the DCMS Select Committee on gambling regulation oral evidence session – which was planned for today (25/04) – was postponed. The source added that the session is “likely” to be rescheduled to mid-May.

The Gambling Act review white paper is a Whitehall policy document that will point the way for future legislative reform of the UK’s gambling laws by recommending a number of specific policy proposals.

Within the white paper is expected to be a number of proposed reforms to the country’s gambling laws, including potentially the imposition of financial risk checks on vulnerable players, a statutory levy to fund RET projects, the creation of a gambling Ombudsman to solve disputes and limits on amounts that can be staked by users.

Long-delayed process

The release of the document will be the culmination of a multiple years long process that began in December 2020 when the then gambling minister Nigel Huddleston announced the initiation of the Gambling Act review, the fulfilment of a Conservative Party manifesto commitment to make UK law “fit for the digital age”.

Following the conclusion of the review in March 2021, the document was expected to be published before the end of the year, but has faced repeated delays. The replacement of John Whittingdale as gambling minister by Chris Philp pushed the release date further back to Summer 2022.

The white paper was further delayed as a downstream effect of turmoil in Downing Street, as the resignation of Boris Johnson, later Liz Truss again pushed back the document’s release.

The latest delay is rumoured to be due to Prime Minister Rishi Sunak’s promotion of gambling minister Paul Scully, replaced by Stuart Andrew, who currently holds the position.  

All 14 Holland Casino locations were closed for a total of 25 days in 2022 due to the Covid-19 pandemic. Certain restrictions remained in place until 25 February.

Petra de Ruiter, CEO of Holland Casino, said that an increasingly competitive market and discussions around advertising also had an effect on the operator’s performance throughout the year.

“In 2022, in addition to a tail of coronavirus measures, external factors again had a major impact on Holland Casino,” said de Ruiter. “This is partly due to the opening of the market for online games of chance, which has drastically changed the competitive playing field.”

“There was a lot of discussion about advertising for online games of chance. Holland Casino understands this sentiment and responded quickly. The line of restraint with advertising for (online) games of chance will be continued, regardless of upcoming additional regulations in this area. This fits in with the exemplary role that Holland Casino wants to continue to play.”

Last week, the Dutch government confirmed that the long-discussed gambling advertising ban would come into play on 1 July. The move aims to prevent vulnerable groups – such as under-18s and those susceptible to gambling harm – from being exposed to gambling advertisements.

Full year results

Revenue from table games reached €233.7m for the year, compared to €94.1m in 2021. Slot machines generated €327.4m, up by 144.9% yearly.

Revenue generated from online activities grew exponentially by 260.1% to €145.5m. Money from tips added up to €19.9m, more than double from 2021, while food and beverage revenue tripled year-on-year from €7.9m to €24m.

Other income also grew for the year, from €1.2m to €3.3m.

Gambling tax for the year was €205.1m, a rise of 140.1%. This brought net income for the year to €548.7m, up by 150.5%.

Operational costs totalled €211.4m, almost double from the €104.1m generated in 2021. Personnel costs rose by 114.5% to €249m, while depreciation charged and impairment losses totaled at €61.4m – ticking up by €1.7m.

This brought the gross operating profit for the year to €26.9m, up by €87.8m.

Financial income and expenses at €3.3m, combined with share in the result of participating interests at €100,000, caused the pre-tax revenue to total at €23.7m.

Following corporate income tax of €6.7m, the total net profit for the year was €17m – €62.7m higher than in 2021.

Earnings before interest, tax, depreciation and amortisation was €88.3m – up by €89.5m year-on-year.

Under the three-year deal, Allwyn will sponsor a new month-long scholarship to Los Angeles in California for one emerging European director each year to learn from the best in the film industry.

The program, run in collaboration with Future Frames, will include mentoring, shadowing and training.

Launched in 2015, Future Frames has enabled European directors to launch their careers in the film industry. Each year, 10 promising directors are invited to the Karlovy Vary IFF to showcase their work, receive tailored mentorship and training, and build relationships.

As part of the new partnership, Allwyn will introduce an awards ceremony during the festival that will celebrate the work of all 10 selected directors.

The Karlovy Vary IFF is one of the oldest film festivals in Europe, having first taken place in 1946. This year’s edition will run from 30 June to 8 July.

“Through this partnership, Allwyn is continuing to grow its community of winners around the globe,” Allwyn’s chief officer of global brand, corporate communication and CSR, Pavel Turek, said. “We’re passionate about changing lives for the better and this extends beyond those who buy a lottery ticket; it means supporting those who strive to achieve greatness in society, including in the arts. 

“Initiatives like Future Frames ensure that opportunity is spread across generations, and, as we build the lotteries of the future, we are equally committed to ensure future generations also benefit from the good we provide to society.”

Karlovy Vary IFF executive director Kryštof Mucha added: “Thanks to our new partner, Allwyn, and our close collaboration with talent agency UTA and management company Range Media Partners, we can provide promising European directors with a vital opportunity to kick-start their careers and further their creative development, as well as the chance to gain experience from renowned figures in the world of film. 

“The Karlovy Vary Film Festival continues its long-term strategy of discovering and supporting the filmmakers of the future.”

According to the Ministry of Consumer Affairs, 20 operators were contacted about “serious or very serious infractions” across online betting and gambling during the six-month period, in relation to breaches of Regulación del Juego (LRJ) gambling law. 

Of the operators contacted, seven were flagged for “very serious” infractions and banned from offering online gambling in the country for a period of two years. Each operator was also fined €5.0m, with these penalties totalling €35.0m in H2.

The DGOJ also detected “serious” violations across the other 13 operators, issuing financial penalties that amounted to €560,000.

Nine of these violations were related to a failure to comply with rules on advertising and marketing gambling in Spain, with each operator fined €10,000 as a result of the breach.

The four other operators received penalties ranging between €125,000 and €160,000 for either allowing people who had self-excluded gambling to play online or failing to comply with technical requirements.

Since the LRJ was updated in July 2021 to establish the levels of serious and very serious violations, sanctions have been filed against 92 operators, 73 of which were in 2002 and 19 in 2021. More than €181.0m in fines were also issued as a result of the breaches.  

Under the multi-year deal, IMG Arena will capture and deliver data from over 161 NWSL and NWSL Challenge Cup games per season for its global network of more than 460 sportsbook operators, as well as distribute live streaming for betting.

IMG Arena will also serve as the league’s official integrity partner, providing the NWSL with full monitoring services to help safeguard competitions and tournaments.

Read the full story on iGB North America.

Svenska Spel reported that the company’s land-based Casino Cosmopol and Vegas slot offering were negatively affected by a “deteriorating financial situation” in Q1, related to tightened consumer budgets and strengthened responsible gambling measures.

Despite these twin pressures, the division experienced a 3% increase in revenue for the three-month period ending 31 March. Svenska Spel said that this was because the retail and land-based casino segments were able to operate at full capacity during the period, compared to the same period the previous year when shortened opening times were operational due to effects of the Covid-19 pandemic.  

“Even in an uncertain time, we continue to create long-term value for customers, owners and employees, as well as for Swedish sports and society in general,” said Svenska Spel president and CEO Patrik Hofbauer.

“We do this by our surplus going to the treasury and by our support for Swedish sports. But also by offering sustainable and fun gaming experiences.”

Svenska Spel Q1 results

Quarter-on-quarter the company’s online revenue increased 8%, now comprising 52% of Svenka Spel’s total revenue for the year, compared to the 49% achieved by the company in the same period the previous year.

The organisation announced that its Sports & Casino division experienced 2% revenue growth year-on-year. The company ascribed this to good progress made in the development in pool games, particularly its Stryktipset and Powerplay offerings.

“During the quarter, we have distributed 52 thousand in winnings in number games and lotteries with a total value of more than SEK291m,” said Hofbauer.

The operator reported an operating profit of SEK 612m, a 3% rise from the SEK595m the business announced in the same period the previous year, amounting to an operating margin of 31%.

For the quarter, the business saw personnel costs rise 10.8% year-on-year to SEK309m. Despite this, the business’s other expenses fell 4.2% year-on-year to SEK433m, as opposed to the SEK452m Svenska Spel spent in the same period the previous year.

Following the addition of financial investments, Svenska Spel reported a pre-tax profit of SEK639m, an 8.5% rise compared to the SEK589m achieved the previous year. The Swedish government taxed the profit SEK 132m, resulting in a result for the period of SEK507m.

Introduction of supplier licences

The Swedish gaming sector is also bracing for the introduction of B2B supplier licences, of which 48 have now been issued by the Swedish Gambling Authority, as the market prepares for such authorisation to be a requirement for providers entering into agreements with operators.

Many different types of suppliers have received clearance from the regulator, ranging in size from large state-owned entities, stock exchange listed companies, to a number of relatively unknown actors.    

The Swedish subsidiary of 888 Holdings, 888 Sweden received a gaming software licence, as did Light & Wonder-owned development studio Elk Studios and German gaming business Tipwin. BeyondPlay and its Malta branch obtained a licence, as well as Entain subsidiary Entain Operations.

In addition, the UK division of Gauselmann Group Blueprint Gaming acquired a licence, as well as B2B supplier Wazdan.

“We’re delighted to have been granted a B2B supplier permit by the Swedish Gambling Authority and we thank them for a swift, smooth process,” said Wazdan CEO Michal Imiolek.

“It also serves as a testament to the consistent hard work of our Compliance team, making sure we’re compliant with regulatory requirements and player safety obligations in iGaming markets around the globe.

“Sweden is an important territory for Blueprint, so we’re naturally delighted to ensure our continued commitment to supply games to this region,” added Blueprint director of operations Thomas O’Halleran.

“This new approval allows us to continue our growth and development of content that Swedish players will continue to enjoy and return to.”

Penn Play brings together the operator’s 26 million loyalty members under a single brand. 

Customers accumulate Penn Cash, the programme’s new loyalty currency, through the app. This is earned and redeemed by playing, dining, shopping or staying at Penn’s properties.

Playing online via the Barstool, Hollywood Casinos and Penn Play brands also accumulates points. 

Penn Play offers a simplified way to earn points and rewards. Signing up to the scheme accrues Penn Cash, and users move through tiers starting from Play, Advantage, Preferred, and Elite to Owners Club. 

Perks and entertainment experiences are available across the tiers, through a new marketplace for spending Penn Cash.

Aligning all brands under the Penn umbrella

“Penn’s business has transformed over the last few years as we’ve expanded our retail, online gaming and entertainment experiences,” chief executive Jay Snowden commented. 

“With the rebranding of our loyalty program to Penn Play, we are taking steps to better align all of our brands under the Penn umbrella and create a more seamless omni-channel experience for our customers, which we believe will have a meaningful impact on both our retail and online gaming performance.”

Overhaul for military rewards

The launch is accompanied by a refreshed version of Penn’s dedicated rewards programme for active military personnel, veterans and first responders.

Penn Heroes now offers additional perks such as a Penn Play tier upgrade and discounts across hotels, dining and shopping at the operator’s properties. It was formerly known as myheroes.

More than 182,000 people have signed up to the programme since its launch in May 2021. Penn also launched a military scholarship at Penn State university earlier in April.

Collectively, 1,009 people were surveyed, who were all based in the UK. The survey took place between 29 March and 2 April. It was compiled by research company Survation.

Conversely, 16.1% of participants said the Gambling Act review white paper should not be viewed as an opportunity to reform gambling in the UK. Similarly, 16.9% said they did not know.

Of the total participants, 41.7% did not believe that young people in the UK are adequately protected from gambling harms. In all 421 participants disagreed, compared to 25.5% of those who agreed.

A total of 685 people agreed with the statement “Nobody under the age of 18 should be exposed to gambling advertising”, which was 67.8% of the total participants. Just 95 people disagreed – 9.4% of the participants.

Last week, Premier League teams announced that they would ban front-of-shirt advertising from the end of the 2025-26 season.

Forthcoming review

Results were similar in response to the statement “There should be limits on how much money consumers can deposit into online gambling accounts”, where 66.4% of participants agreed and 10.8% disagreed. Deposit limits have long been rumoured to be part of the much white paper.

Another measure expected to be included is affordability checks. These checks have been resisted in the industry, with criticism from both operators and punters.

However, when confronted with the statement “There should be limits on how much money can be staked on any single bet online”, 66.4% of participants agreed, while just 10.8% disagreed.

The statement “To protect consumers, there should be affordability checks for those who want to bet more than £100 a month” produced a similar outcome. A comparable 64.1% of participants agreed, while 10.6% disagreed.