Relaunched Campaign for Fairer Gambling will look to US

The revamped campaign group is to concentrate on online gaming policy in the US.

Webb said in an open letter accompanying the campaign’s new website that he opted to relaunch the organisation following advice from his long-term collaborators, safer gambling campaigner Matt Zarb-Cousin and academic James Noyes.

The Campaign for Fairer Gambling’s new stated purpose is to provide an “evidence-based” approach to improving US remote gambling policy, legislation, regulation, enforcement standards and to reduce the associated harms.

The organisation is to pursue a bi-partisan agenda of advancing both consumer protection and harm amelioration in gambling. It is to remain neutral of gambling expansion while “being critical of any false representations by financially-motivated promoters of gambling.”

Stop the FOBTs

Webb – who is a former professional poker player and inventor of Three Card Poker – founded the group in 2012. The organisation was heavily involved in leading the push to impose restrictions on Fixed-Odds Betting Terminals (FOBT), founding the Stop the FOBTs campaign in 2013.

fixed-odds betting terminals (FOBTs)

In 2017, the Department for Digital, Culture, Media and Sport began studying the possibility of reducing the then maximum stake of £100. In May the following year the Ministry opted to reduce the maximum stake to £2 per spin, a measure which entered into effect on 1 April 2019.

Webb highlighted the consequences of this policy as well as pointing to the “significantly improved” quality of players lives.

Following the new rules, FOBT revenue fell by £750m ($933.6/ €862.9m), a 40% decline. Moreover, within three years, the National Gambling Treatment Service said that clients reporting FOBTs as their main gambling activity fell 65%.

Campaign for Fairer Gambling

“These are the kinds of results we want to see from reform,” said Webb. “With the right protections in place, gambling can be both enjoyable for the consumers and viable for the businesses.

“My personal history includes success in a broad range of gambling related activities as a poker player, a casino table game creator, an intellectual property holder, and a litigation funder in supplier disputes.”

safer gambling campaigner matt zarb-cousin

“In my efforts, I have had tremendous partners,” he added. “Matt Zarb-Cousin, a political activist who was addicted to FOBTs at age 16, played a dynamic role in ensuring that we prevailed.

“Following our success, Matt founded “Clean Up Gambling,” focused on online and mobile gambling, known as remote gambling, to encourage the British government to review the Act and make it fit for the digital age, which I support wholeheart.”

Webb also emphasised the important role played by Noyes in achieving results. He said that he supported the academic to advise the Labour Party deputy leader on gambling policy. The consequence of which was that both major political parties in the UK included a commitment for a review of gambling laws in their manifestos.

“Anti-gambling prohibitionists”

Webb criticised some of rhetoric used by trade lobbyists in the gambling sector, which have in the past described advocates of reform as “anti-gambling prohibitionists”.

“Our intent is to preserve access to lawful but safer gambling for consumers. Meanwhile, some operators repeatedly breach regulations, some profit from black markets, and some are now major players in the newly liberalised US remote gambling market.

“But in the start-up greed-rush, some US states have overlooked these bad practices, ignored the lessons from outside the US, and have not adequately prepared to mitigate the negatives of remote gambling expansion.”

End of Macau restrictions push Galaxy Entertainment revenue up 70%

Dr Lui Che Woo, chairman of Galaxy, said that there had been growth in all operational areas since the ending of Covid-19 restrictions on 8 January 2023.

“It has been very pleasing to see solid pent-up customer demand following the relaxation of travel restrictions,” said the chairman. “Visitors arrivals, hotel occupancy, gaming revenue and retail sales have all seen good growth.”

Lui Che Woo added that Galaxy had submitted its plans for investment to the Macau Government during the quarter, a stipulation outlined in the Macau Government’s concession bid process that concluded in December 2022.

Galaxy received a concession, alongside Las Vegas Sands, MGM Resorts International, Melco Resorts, SJM Resorts and Wynn Resorts.

“We have submitted our investment plans to the Macau Government for the next 10 years and are in active discussions with the Government to refine those investment plans,” he continued.

“We are confident that the final mutually agreed plans will further diversify and broaden GEG’s non-gaming offerings, attract a more diverse customer base including international visitors and support the Macau Government’s vision of becoming the World Centre of Tourism and Leisure.”

First quarter results

The net revenue rose by 141.9% quarter-on-quarter.

The net revenue consisted of HK$5.32bn in net gaming revenue, up by 83.4% yearly. Non-gaming revenue grew by 65.8% to HK$1.0bn, while revenue from constriction materials ebbed up by 21.4% to HK$698m.

In terms of locations, Galaxy Macau generated HK$5.34bn of the net revenue. StarWorld Macau made up HK$938m, while Broadway Macau brought in HK$18m.

GEG’s City Clubs net revenue was $52m, up by 550.0% year-on-year.

Total adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was HK$1.91bn for the quarter, a jump of 231.6%.

iDEA Growth publishes responsible advertising code

Designed for its members, the code sets out a series of principles related to marketing, encouraging members to advertise responsibly.

The first of the give principles relates to complying with legal requirements related to these forms of gambling. Members are required to adhere to each state’s rules and restrictions when advertising.

Secondly, iDEA Growth must only promote online gaming and sports betting to players over the age of 21, unless state law is 18-plus.

Advertising should disclose betting is only for adults and not use any characters or performers that appeal to a young audience. Adverts should not appear in on media that primarily appeals to an audience under legal age or feature promotional products that appeal to children.

Read the full story on iGB North America.

NH sports betting revenue up in April despite handle drop

Players spent $65.1m during the month, down 10.9% from $73.1m in April 2022 and 37.0% lower than the record $103.4m bet in March this year.

Online spend for April reached $56.8m, while a further $8.3m was bet at retail sportsbooks.

In contrast, revenue from sports wagering in April amounted to $6.7m. This was up 97.1% on 2022 and 39.6% more than in March.

Internet betting accounted for $6.1m of monthly revenue, with retail betting at $586,755.

Read the full story on iGB North America.

Bet365 owner maintain top-20 spot in Times Rich List

The latest edition of the list which is published each year by the Sunday Times newspaper, put Denise, John and Peter Coates and family in 16th position with a total worth of £8.80bn (€10.13bn/$10.97bn).

This was the same place as in the 2022 list, with Coates and her family having accumulated an additional £158m in wealth since the last list was published.

The Coates family were ranked between XTX Markets chief executive Alex Gerko in 15th with £9.13bn and Bestseller and Asos CEO Anders Holch Povlsen in 16th place with £8.50bn.

The Sunday Times Rich List is published every year

Coates founded Bet365 in 2001, borrowing £15.0m against her family’s betting shop estate to launch the online gambling brand.

Indian-born businessman Gopi Hinduja, whose Hinduja Group owns a number of companies such as Gulf Oil International and IndusInd Bank, topped the list with a fortune of £35.00bn.

Sir Jim Ratcliffe, the CEO of INEOS chemicals group who has been linked with a takeover of Premier League football club Manchester United, was second on £29.69bn.

In third was Sir Leonard Blavatnik, who found his fortune in investment, media and music, with £28.63bn.

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Lottery.com faces liability for accounting non-compliance

In Lottery.com’s long-delayed Q2 2022 financial report the business outlined a number of issues concerning the effectiveness of its controls and procedures in reporting its financial resulting.

Specifically, the company noted a number of “deficiencies” in the design and operation of these procedures. The online lottery portal noted a “lack of sufficient number of personnel” with the appropriate knowledge and experience in accounting for complex transactions.

Lottery.com also said that its policies and procedures relating to the review, supervision and monitoring of its accounting and reporting functions “were either not designed or in place or not operating effectively”.

The company said this resulted in its inability to “complete the timely closing of financial books” at the quarter or fiscal year, as well as incomplete segregation of duties in certain types of transactions and processes.  

As such, the business said that it did not design and maintain sufficient procedures and controls relating from non-routine transactions, such as the sale of LotteryLink Credits.

This led to the “overstatement” of $52.1m revenue for the year ending 31 December 2021. In July 2022, the overstatement of revenue led to the resignation of chief revenue officer Matthew Clemenson.

Lottery.com implements remedial steps

In response to these failings, the company said that it has implemented a number of remedial steps to improve these processes and remedy its material weaknesses in this regard.

According to the business, this has included adding personnel with sufficient accounting knowledge, as well as adopting “a more rigorous” period-end review process for financial reporting.

Additionally, Lottery.com said that it has adopted improved accounting processes and now clearly documents the segregation of duties for its transactions.

“The implementation of our remediation will be ongoing and will require validation and testing of the design and operating effectiveness of internal controls over a sustained period of financial reporting cycles,” said the business.

“We may also conclude that additional measures may be required to remediate the material weaknesses in our internal control over financial reporting.

Ongoing class action lawsuit

In the face of these weaknesses the business is engaged with a number of ongoing lawsuits. In August 2022, the business was served with a class action law suit on behalf of investors against Lottery.com and former high-ranking employees.

The suit alleges that the business made “materially false or misleading statements”, as well as failing to disclose that the company lacked adequate internal accounting controls.

“As a result of defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the company’s securities, plaintiff and other class members have suffered significant losses and damages,” read the suit.

Since the Lottery.com filed a motion to have the lawsuit dismissed in April, the class action is expected to file their opposition to this – which would trigger the company’s deadline to reply to this no later than the 20 June.

Lottery.com experiences large reduction in revenue

Revenue for the three-month period ending 30 June 2022 stood at $1.89m, an 81% decline from the $9.88m the business recorded in the same time the previous year.

Personnel costs increased 370% to $9.51m, while professional fees increased 4215% to $1.22m.

The business’s net loss rose 1159% to $15.45m for the three-month period.

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