Month: May 2023

Players spent $14.5m betting on sports during the month, down 21.2% from $18.4m in April 2022 and also 19.9% lower than the $18.1m wagered in March this year.

Turning to gross gaming revenue and this reached $1.3m, down 7.1% year-on-year and a drop of 43.4% from April’s total.

Breaking down performance by operator, Gambet, run by the DC Lottery and powered by Intralot, moved back into top spot with $626,273 in revenue from a $5.7m handle.

Caesars Entertainment placed second with $524,245 in revenue from $4.6m in total wagers. BetMGM followed with $138,784 in revenue from $2.5m in bets.

Read the full story on iGB North America.

iGB: There has been a lot of talk about cryptocurrency’s potential in gaming, with Softswiss noting a strong growth in transactions in its regular report. Are there any trends or correlations you have tracked among players? With this insight, what is the core crypto gamblers’ profile?

AS: If we compare typical crypto adopters to fiat users, the former generally represent younger generations originating from Canada, Germany and Asia. Depending on the geography and age, we can see the difference between the audiences of various crypto brands – the so-called crypto gambling pioneers like Bitstarz and mBit, and the second wave brands like Stake, Roobet, Rollbit, Duelbits and BC.Game. The latter strives to build a strong brand-centered community, using chats and forums, which helps not only engage but also retain players. 

These are just a few aspects that make a difference, alongside the transaction speed, availability of provably fair games and others. 

iGB: How has the growing competition and demand on the crypto market affected early crypto adopters such as Softswiss?

AS: I wouldn’t say that the crypto gambling market is particularly competitive – the competition is steadily growing, but it is still far from its highs. We see market majors taking an interest in crypto gambling, with many considering integration of payment methods such as Coinspaid to enable crypto deposits. Some opt for launching separate crypto brands to reinforce their product portfolios with new crypto-centric offerings of the same design and functionality similar to Stake.com, Bitstarz, MBit, Rollbit, Duelbits, Roobet and BC.Game. 

Many market players are cautiously interested rather than willing to enter the niche. And we can see a sound reasoning behind their behaviour, such as having no crypto expertise or strong expert teams, difficulties in finding traffic to attract the crypto audience, crypto gambling regulations and the overall regulators’ attitude to cryptocurrencies as to something non-existent. However, the niche is actively evolving, and the market leaders I mentioned above are now followed by new high-potential entrants capable of making great strides, like Stake.com in 2021.   

iGB: How have you worked to ensure your crypto gaming products stand out from the competition – what does SOFTSWISS offer that can’t be found elsewhere in the market?

AS: First and foremost, it is the expertise and vast experience in using and integrating cryptocurrencies in gambling. Being a trailblazer in this niche and the first company to bring crypto to the B2B sector, Softswiss makes the crypto gambling development an integral part of its strategy. In particular, it includes building knowledge and expertise within the team, developing crypto-friendly products, and staying ahead of the product trends we observe across crypto brands.

All products in the Softswiss ecosystem (the Casino Platform, the Game Aggregator, the Sportsbook, the Jackpot Aggregator and Affilka) are compatible with cryptocurrencies, with our partner product – crypto payment gateway Coinspaid – being a basic option to launch cryptocurrency operations. For example, the Softswiss Game Aggregator currently supports about 50 game providers in using 20+ different cryptocurrencies and is able to integrate new ones upon request from its clients and partners.

The in-game currency conversion feature integrated into our flagship Casino Platform is a unique solution that allows crypto balance holders to access and enjoy non-crypto games. The Softswiss Sportsbook and the Jackpot Aggregator are also fully equipped to work with cryptocurrencies.

iGB: When it comes to raising awareness about the adoption of cryptocurrency for gambling, where else do you feel education is needed? Among operators, suppliers or even regulators, perhaps?

AS: Regarding regulations, I believe the industry needs closer cooperation between businesses and regulators to harness crypto. The segment has great growth potential and is expected to gain a significant market share in the future, therefore regulators should factor crypto into their law-making activities relating to gambling. Such cooperation would be beneficial for all parties involved, as it would increase transparency and establish a regulatory framework for the use of cryptocurrencies in the most promising markets.

Unfortunately, the issue is commonly overlooked by regulators in most jurisdictions. We can understand it as there is often a lack of legal frameworks to address the adoption and subsequent legalisation of cryptocurrencies in general, let alone rules for their use in gambling. But it is definitely worth the effort, and our company is ready to help bridge the gap between businesses and regulators.

We provide full support, both informational and technical, to help operators and game studios onboard cryptocurrencies. The products in our portfolio allow accepting all digital coins right from the start, and our experts are there to help solve any complicated issues and walk clients through the entire process of cryptocurrency integration. We believe that training and instructing operational teams on the use of crypto is yet another growth area for us to develop and reinforce our offering.

iGB: Recently, Softswiss was recognised as the Crypto Company of the Year at the 2023 International Gaming Awards. What distinguishes you from competitors in terms of cryptocurrency operations, and what innovations in this field do you offer to the market?

AS: We are very pleased to have this award and, more importantly, the industry’s recognition as a leader in crypto gambling. This award is a true reflection of our strategy and passion – making crypto accessible and convenient for use. Years ago, Softswiss dared to tackle the most progressive innovations and integrate crypto into gambling, pushing the industry to its new heights.   

I would go so far as to say that the nomination and the award were not a big surprise for us, as the company had come a long way, refining its expertise, developing multiple features and adjusting standard operations for the crypto audience. Nine out of ten crypto gambling leaders leverage our products. All this proves that Softswiss is an undisputed leader in crypto gambling.     

iGB: What are your predictions for cryptocurrency going into 2023? What could hinder its adoption?

AS: Despite the volatility we are observing, the crypto gambling sector and its audience will continue to grow, as it is speed, simplicity and a certain level of anonymity that players value most in cryptocurrencies. We can clearly see an increasing interest in this niche, and a growing number of operators, including top-tiers, are adding crypto to their payment methods.

Gardner added that pre-consultation engagement with stakeholders has already began in a number of policy areas. While she said she was “not in a position to tell you what those will be yet”, she said that the regulator would be publishing more information on this in the near future.

Many provisions outlined in the white paper – which was published last month – are to be subjected to further consultation by the Commission and the Department of Culture, Media and Sport (DCMS) to review how the measures should be implemented.

Gardner made the remarks at the Lotteries Council Annual Conference, where she was the keynote speaker.

Gardner says Commission to prioritise work

The deputy CEO said that the implementation of the white paper “will likely take number of years to fully complete” but said this did not mean that the Commission could not make rapid progress is some key areas.

As such Gardner emphasised that both the GC and the government need to prioritise their work. She said that where the body were consulting they needed to “get it right.”

Gardner also made clear the Commission wanted to ensure that a wide variety of experiences and expertise inform the way the white paper’s policy commitments are turned into practical reality.

“In my own career in public service both in government and regulation, I have seen too many examples of well-meaning policy changes having unintended consequences for the public due to the way they were implemented in the real world,” she said.

“So take it from me that we will be doing everything we can to avoid making that mistake during implementation. Less haste, more speed.”

Consultations prove controversial

Following the publication of the white paper, the number and breadth of measures that the government saw fit to put to further consultation proved controversial in some quarters.

While some argued that this was done due to a legislative backlog in parliament due to Brexit, Liberal Democrat peer and chair of the Peers for Gambling Reform Group Lord Don Foster told iGB that much could be done without primary legislation.

“For example, there is a clause within the 2005 act that gives the power to the secretary of state to introduce a statutory levy,” ,” Lord Foster said. “And the Minister can do it in any way he or she chooses – that’s already there.

“We don’t need primary legislation. So, an excuse that suggests that there isn’t going to be parliamentary time: ‘We’ve got the online safety bill, we’ve got all these other bills going through Parliament at the moment,’ simply isn’t there.”

Meanwhile, others voice concerns that the consultations may be delayed until after the 2024 General Election, after which the sitting government may no longer have a majority in the House of Commons.

However, parliamentary undersecretary of state for sport, gambling and civil society, Stuart Andrew confirmed in a press conference that this would not be the case.

“Our intention is that everything will be introduced and in place by the summer of next year, so in time for the next general election,” he said.

The system will deliver to-the-minute updates on every CFL game throughout the preseason, which will feed into live betting solutions, augmented broadcasts and CFL’s Game Zone platform.

CFL LiveStats will also provide post-game statistics, and will allow data related to betting, teams and players to be shared for all CFL contests.

Read the full story on iGB North America.

The GameTech operator will be the named sponsor of six races across three days including the Novibet Emerald Mile and the Novibet Guineas Festival Premier Handicap.

“We are delighted to be named as the Official Betting Partner of this year’s Irish Guineas Festival in what is the biggest horse racing sponsorship we’ve been involved with so far,” said Novibet’s Ireland country manager Karl Riley.

“The Irish Guineas is a meeting which is one of the biggest in Irish Flat racing and we are very excited to be increasing our presence in this area.”

The deal follows the business’s recent news that it is to sponsor Brazilian football team Fortaleza Esporte Clube.

Racing and sponsorship manager at the Curragh Evan Arkwrigh added: “We are very excited that Novibet has selected the Curragh to launch their biggest horse racing partnership to date, and we will work closely with their team to ensure they maximise all opportunities to raise their profile across the extensive global audience that the Tattersalls Irish Guineas Festival attracts throughout all three days.”

The agreement represents Novibet’s largest horseracing partnership to date.

This will be the first time that operators in both regions will be able to accept fixed-odds wagers on the event.

Bettors will be able to wager on the Italian Gallop Derby’s nine races, including three group contests – the Italian Gallop Derby, the President of the Republic Grand Prix and the Carlo D’Alessio Grand Prix.

“The Italian Derby is one of the premier contests in Europe, and we are delighted to bring the 140th renewal to bettors in the UK and Ireland and around the world through our partnership with Media System Technologies,” said Conall McSorley, head of international horse racing at SIS. “With a rich history, the race resonates with racing fans in Italy and globally.”

“We are sure that the increased global audience will enjoy the high-quality action from Italy’s most valuable race meeting, as we continue to expand our racing offering across the world.”

Michele Rosi, head of operations and business development at MST, called the partnership a “milestone” moment for the industry.

“The distribution of the Derby di Galoppo in the UK and Ireland to major betting brands brings MST and the entire horse racing chain to a new important milestone: the distribution of an important event such as the Derby Italiano di Gallop in the natural cradle of this beautiful discipline,” he said.

“We are sure that the high value of the day of racing, enriched by the quality of the HD images, will represent the best advertisement for a relevant market such as the UK and Ireland.

“This is precisely the image that MST has been exporting internationally since August 2022, together with the offer of Italian racing.”

Tjärnström first joined Kindred Group, then Unibet, as a non-executive director in 2003. He became its chief financial officer and deputy CEO in 2008, before taking the top job two years later. 

“Henrik has been at the helm through many important milestones passed by Kindred and has undoubtedly put his mark on both the history of the company and the industry,” Kindred chairman Evert Carlsson said. 

“Thus, on behalf of the board of directors and all shareholders, I would like to thank Henrik for his valuable contributions to the success of Kindred throughout the years he has led the company and wish him well in his future endeavours,” he added.

Tjärnström’s resignation comes days after chief financial officer Johan Wilsby announced he would step down later in 2023.

Nils Andén named interim Kindred CEO

His replacement Nils Andén joined Kindred Group as chief commercial officer in 2020. It is Andén’s second stint at the business, after a decade between 2006 and 2016. 

During this time he worked as head of poker, head of established markets and chief marketing officer for the operator’s core Unibet brand. Andén also worked as chief marketing officer for peer-to-peer currency exchange CurrencyFair and as director of digital marketing for GVC Group (now Entain Group). 

“I look very much forward to working closely with our board of directors, the executive management team and all employees to achieve the goals of Kindred,” he commented. 

“I have a strong belief in our organisation and the business models that have made this company so successful and am more confident than ever in Kindred’s potential.”

Tjärnström said he was “very pleased” the board had chosen Andén as his interim replacement. This would guarantee a smooth handover, he added.

Carlsson described Andén as “naturally very knowledgeable about the operations of Kindred”.

“The board of directors deems that Nils is ideally suited to assume this role in these pivotal times for Kindred.”

While Henrik Tjärnström oversaw significant growth across multiple markets during his tenure, signs suggested shareholders were in favour of change at the top. 

Did a potential sale influence CEO resignation?

Last year, iGB revealed the operator’s board approached a number of operators such as Entain, 888 and Tipico over a potential acquisition, as well as private equity giants Apollo Global and Blackstone.

This followed pressure from activist shareholder Corvex Management to look at strategic alternatives for the business. Corvex secured a seat on the Kindred board last October, with partner James Gemmel named a non-executive director. 

There was little interest in pursuing the opportunity at the time, however. Kindred was perceived as failing to “update its business model as markets regulate”, according to a source with knowledge of the process. 

Another source suggested the company’s progress in growing its position in locally regulated markets was too slow. “In my opinion, this is because there had not been a change in management,” they said.

In April this year, Kindred then confirmed that a strategic review to assess options for a sale, merger or divesting part of the business was under way.

2022 struggles

All this followed a difficult 2022 for the business, in which it missed its targets for the fourth quarter of the year. This contributed to a 15.2% year-on-year decline in full year revenue to £1.07bn, with net profit dropping 59.2% to £120.1m. 

In the wake of the missed Q4 targets Henrik Tjärnström said “no item was sacred” as he looked to cut costs and build a more efficient business. 

“We take this very seriously, and the deviation that we see from our expectations and the market’s expectations; that’s why we’re taking actions now to improve profitability in the short and medium term,” he said.

In recent years, Tjärnström oversaw initiatives such as Kindred’s shift to a proprietary sports betting platform, ending its long-standing partnership with sportsbook technology specialist and former subsidiary Kambi. That agreement is due to end in 2024.

The new platform, developed from its racing tech stack, was approved for launch in New Jersey in April this year. 

The ban is effective immediately and will run through until 16 January 2024, with Toney not permitted to return to training with his club until the final four months of the ban, beginning 17 September.

Toney, who has been capped by England once, was charged with 262 breaches of FA Rule E8 between 25 February 2017 and 23 January 2021. The FA subsequently withdrew 30 of these breaches and Toney admitted to the remaining 232.  

FA Rule 8 states any player, match official or coach must not bet, either directly or indirectly, on any matters related to football anywhere in the world.

News of the alleged breaches first broke in November when Toney posted a message on his social media account saying he was assisting the FA with an investigation. 

Shortly after, the FA confirmed it had identified an initial 232 breaches before more breaches were added in December.

Toney was also fined £50,000 (€57,559/$62,340) and warned about his future conduct. The FA added that an independent Regulatory Commission, which oversaw the sanctions, will publish written reasons for its actions in due course.

Disappointed

Issuing a response to the announcement on his Instagram account, Toney said he would wait for the written reasons before making further comment on the case.

“I am naturally disappointed that I will be unable to play for the next eight months,” Toney said. “I make no further comment at this point other than to thank my family and friends, Brentford and our fans for their continued support, through what has been a very difficult time.

“I now focus on returning to play the game I love next season.”

Brentford also issued a statement in relation to the ban, saying it would wait to review the written reasons before taking further action.

“Brentford FC is currently awaiting the publication of the written reasons of the independent regulatory commission,” the club said. “We will review them before considering our next steps.”

L&W expects the listing to come into effect from today (18 May) and will be permitted to the official list of the ASX as an ASX Foreign Exempt Listing.

Official quotation of L&W Chess Depositary Interests (CDIs) is due to commence on 22 May, with each CDI to represent one fully paid share of common stock.

L&W said existing shareholders that wish to retain their holding as shares on L&W’s primary listing on Nasdaq in the US are not required to take any action. However, those that want to convert some or all of their shares into CDIs may do so.

The group added that the secondary listing and official quotation remain subject to final approval by the ASX and there is no assurance as to their timing or completion.

Q1 growth

The approval comes after L&W last week reported a 17.1% year-on-year increase in revenue for the first quarter of 2023, helped by record performances by its igaming and SciPlay social gaming businesses.

L&W experienced double-digit growth across all its business segments during the quarter, with its gaming division remaining by far its primary source of revenue.

Revenue in the first quarter amounted to $670m, up from $572m in the corresponding period last year. Gaming revenue hit $419m, SciPlay $186m and igaming $65m.

Formed in June 2015 as a cross-party group that had no official status within Parliament, the group featured members with a shared interest in the gambling industry.

The APPG weighed in on a host of key issues in recent years, but as announced in a LinkedIn post by gambling consultant and APPG member Steve Donoughue, the group will now disband.

“It has been decided by the officers of the APPG to close formally as an APPG for the foreseeable future,” Donoughue said.

“With the publication of the government’s gambling review and the consultations it has launched into various aspects of its implementation, gambling remains an important political issue, as well as an important part of the UK economy. 

“The group is very grateful for the engagement of those in the industry and associated industries over many years.”

Donoughue added that the group will now seek to set up an informal network of those interested in the British gambling sector. This will include organising meetings and discussions outside the formal APPG structure.

White paper

The announcement comes amid the fallout of the release of the government’s long-awaited white paper, which was finally published last month after a series of delays.

Key topics covered in the white paper included affordability checks, a consultation on stake limits, new funding for RET, setting up an ombudsman for dispute resolution, easing land-based restrictions, advertising measures and tackling the black market.