Month: June 2023

Politicians have queried whether the chairman of the Dutch gambling regulator Kansspelautoriteit (KSA) René Jansen’s stated approach of not committing to enforcement actions at the start of the ban is the correct one.

Members Mirjam Bikker, Michiel van Nispen and Anne Kuik of the House of Representatives sent in written parliamentary questions to Weerwind. The three have been critical of the Netherlands’ online gambling sector in the past.

The members asked if instead the KSA could set a “clear and predictable” standard for the sector by fining every violation.

The minister said in response that his main concern for the gambling ad ban is that regulation and enforcement is effective.

“In order to achieve this, invisible measures, such as norm-setting talks, are often more effective than imposing a fine,” said the minister. “Which of course does not alter the fact that violations can be punished in the form of a fine.

“It is up to the KSA to decide what the most appropriate intervention is, whereby obvious violations are of course dealt with more strictly.”

Weerwind also took steps to defend the KSA working methods from criticism. He said that the KSA took time to look carefully at how the ban works in practice and how it can successfully enforce it.

“Experience has shown that the KSA’s working method of first conducting norm-setting discussions before proceeding with enforcement is effective,” he said.

Netherlands bans gambling ads

First announced by Weerwind in July 2022, the ban on untargeted ads is now only days away. Under the new rules all broadcast television, radio and billboards are to be banned.

However, gambling advertising on the internet as well as on-demand television is to be permitted under certain conditions.

Such advertising will be allowed if operators can prevent these ads from reaching young people under the age of 24. This will involve proving that at least 95% of the advertising reached people 24 years and older.

OlyBet will feed into IBIA’s betting integrity monitoring and alert network, working alongside licensed operators from around the world.

Active across the Baltic region, OlyBet joins almost 50 businesses and more than 120 sports betting brands in the IBIA network.

“Protecting the integrity of sports and defending sports betting against corruption and criminal activities are two sides of the same coin,” OEG and OlyBet chairman and CEO, Corey Plummer, said.

“Together with other responsible and regulated betting operators and through a trusted and professional party such as IBIA, we can take further steps to protect sports and sports betting.”  

The IBIA CEO, Khalid Ali, added: “OlyBet brings knowledge and experience of the sports betting market, notably in the Baltic region. We intend to work closely with Olybet to harness that important regional knowledge base to protect our global network from corrupt betting practices linked to match-fixing. 

“Olybet’s decision to join IBIA demonstrates its commitment to maintaining the integrity of sport. It also shows the operator’s desire to utilise the best integrity protection available globally for its sports betting product.”

IBIA signs regulatory partnerships

The news comes after IBIA agreed partnerships with a number of national regulatory organisations in recent weeks.   

Earlier this month, IBIA entered a memorandum of understanding with the Portuguese Online Betting and Gambling Association (APAJO). This includes collaboration on betting and sports integrity issues and creating a safe and sustainable online betting environment.

The two associations will also discuss areas of cooperation and potential shared projects, pooling their expertise on certain activities.

Last month, IBIA also linked up with the Brazilian Institute of Responsible Gaming (IBJR). This partnership will focus on developing anti-match fixing enforcements in Brazil.

IBJR signed a betting integrity protection agreement with IBIA. This will support work against match-fixing and increase monitoring around sports events in Brazil.

Confirmation of the partnership came days after IBIA announced plans to expand anti-match fixing and integrity operations across the country.

Q1 suspicious betting alerts reach 40

Also in May, IBIA revealed that it received 40 suspicious betting alerts across nine sports during the first quarter. This was down by 16.6% from in Q1 2022 and 20% in the previous quarter.

Football generated the highest number of alerts at 15, representing 37.5% of the total. Tennis followed with 12, or 30% of the total. Combined, football and tennis made up 67.5% of the alerts in the first quarter.

Table tennis accounted for four of the alerts. Basketball and esports generated two alerts each, while volleyball, boxing and snooker each accounted for one alert.

Some 24 alerts took place in Europe, six in Asia and four in Africa. North America and South America accounted for two alerts each.

Two esports alerts were not included in this breakdown as the IBIA said it was unclear where the alerts took place.

The latest FBG proposal stands at $225.0m (£176.8m/€205.4m), with PointsBet unanimously recommending its shareholders accept the proposal.

FBG had struck an agreement with PointsBet to acquire its US business in May for $150.0m and shareholders were due to vote on this at a meeting on 30 June.

However, earlier this month, news broke that DraftKings had submitted a higher proposal worth $195.0m. PointsBet said it would engage with DraftKings over what it said could be a “superior” proposal.

Upon confirmation of the improved FBG offer, DraftKings announced that it would no longer pursue a deal to acquire PointsBet US.

PointsBet paused trading on the Australian Securities Exchange (ASX) yesterday (27 June) ahead of announcing the improved FBG proposal.

‘Superior price plus certainty’

“Following the receipt of a non-binding indicative offer for our US business from DraftKings, the PointsBet team entered negotiations with both parties,” PointsBet chairman Brett Paton said.

“The improved proposal delivers PointsBet shareholders a 50% or $75.0m increase to the acquisition price originally agreed. 

“The board unanimously supports the improved proposal from FBG, which provides a superior price plus certainty. FBG conducted their diligence process and negotiations in a highly professional manner at all times.”

The new FBG proposal breaks down into two payments. FBG would pay $175.0m upon the initial completion of the deal, plus $50.0m at the subsequent completion.

“The offer to “front end” the additional consideration is an element which we regarded as a welcome and significant benefit to our shareholders,” Paton said.

“Subject to shareholder and regulatory approvals, our US team will have a strong future as part of the FBG group. PointsBet will build on the opportunities in Australia and Canada underpinned by a strong balance sheet.” 

The PointsBet shareholder vote on the FBG proposal will take place on 30 June as originally planned.

PointsBet facilitated a due diligence process on the US business so DraftKings could develop its proposal into a binding offer 27 June. 

However, DraftKings was unable to meet this deadline. PointsBet’s board determined the new Fanatics proposal was superior in terms of both pricing and completion certainty.

DraftKings drops out

DraftKings emerged as a possible bidder earlier this month, submitting a higher bid than the initial FBG proposal.

This drew criticism from Fanatics chief executive Michael Rubin, who described the proposal as a “desperate” attempt to slow progress on his deal with PointsBet.

Upon confirmation of the improved Fanatics offer, DraftKings announced that it would no longer pursue a deal to acquire PointsBet US.

“The company is no longer pursuing the acquisition of the US business of PointsBet Holdings,” DraftKings said in a short statement. “The company thanks PointsBet for their time and access over recent weeks.”

Both proposals came after PointsBet in April confirmed it was in talks with “multiple parties” regarding the sale of its North American arm.

The company also said that it had terminated previously reported talks to sell its Australian business to the News Corp-backed gaming venture behind the Betr brand.

Despite this, PointsBet said it remained in discussions with “other third parties” who expressed interest in acquiring the business.

US expansion plans for Fanatics

Should the FBG deal now proceed as expected, it gains access to 12 states. Among those are major betting and igaming hubs, such as New York, New Jersey, Pennsylvania and Michigan.

It significantly accelerates the ecommerce giant’s sports betting roll-out. Its sportsbook is currently live in Maryland, Massachusetts, Ohio and Tennessee.

Last month, FBG chief executive Matt King spoke with iGB about the company’s ambitions for growth in the US. King talked up its prospects for growth, saying it would offer an elevated product to disrupt the established order similar to Spotify carving out a market leading position against iTunes.

While the interview took place before the PointsBet announcement, King alluded to a potential acquisition:

“We can roll out states whenever we want to,” King said. “I have access to all the states, I just roll them out when I’m ready.”

Q1 struggles at PointsBet

This followed a first quarter in which PointsBet posted a 39% year-on-year rise in revenue to AU$106.6m. 

North American growth drove this increase, with revenue up 103% year-on-year to $49.8m. PointsBet’s Canadian business also experienced growth over the period; growing 21% on a quarter-on-quarter basis to $6.1m.

Despite this, the group said it expects to make an EBITDA loss of between $77.0m and $82.0m for H2 FY3.

Additionally, the business expects cash outflow, including movements in player cash, to be approximately 30% lower than in H1 FY23. Due to these pressures, the group has attempted to cut costs in order to drive the business towards profitability.

The round was co-led by Roger Ehrenberg via IA Sports Ventures and Eberg Capital, and Fuel Venture Capital. Fuel doubled its investment size in Betr to date from $10.0m to $20.0m.

Existing investors including FinSight Ventures, Florida Funders and Aliya Capital Partners also took part and invested beyond their pro rata.

In addition, Betr co-founders – Simplebet founder Joey Levy and social media personality Jake Paul – participated in the financing round. 

“I’m thrilled to announce our Series A2 round of financing,” Levy said. “We opportunistically raised this after successfully laying the foundations for Betr Gaming and Betr Media while validating some of our core theses.”

Gaming and media

Betr’s operations are split into two businesses – Betr Gaming and Betr Media. The former is an online sports betting business active in Ohio and Massachusetts, with a licence in Virginia.

In addition, the Betr Gaming arm will roll out two additional real-money gaming verticals in the coming weeks

Last month, Betr Gaming grew its offering with the acquisition of the Chameleon platform from FansUnite Entertainment for $7.4m. Chameleon offers gaming solutions including player account management (PAM), sports betting engine and casino management. 

Betr will vertically integrate PAM, sports betting engine, online casino technology and future Betr Gaming verticals into its direct-to-consumer platform. 

Meanwhile, the Betr Media business focuses on original and short-form content. During its first 10 months of operation, Betr Media surpassed 1.3 billion impressions on social media.

“Our ability to rapidly scale Betr Media’s audience, and then convert this audience to Betr Gaming at low-to-no-customer acquisition costs, will enable us to have the best unit economics in the regulated real money gaming industry,” Levy said. 

“This positions Betr to create more value than incumbent operators over time.”

Investor comments

Speaking about his investment, Ehrenberg said Betr can change the dynamics of sports betting by moving entertainment front and centre.

“Sports have a special ability to bring people together,,” he said. “No company is better positioned to accelerate and benefit from this trend than Betr.

Jeff Ransdell, founding partner and managing director of Fuel, added: “Joey, Jake, and the incredible Betr team are truly creating something remarkable.

“They are addressing a genuine need in the sports media and betting world, catering directly to the end consumer. The overwhelming demand from investors wanting to join this journey is a testament to what they’re building.”

The agreement will run through to the end of 2024, with Betsson branding to appear on the front of Boca Juniors players’ shirts. 

The deal covers the men’s and women’s first teams across local and international matches.

The team will wear the new shirts the first time in a competitive match on 29 June. However, branding also appeared on players’ shirts during last week’s testimonial game for club veteran Juan Román Riquelme.

Aside from the shirt sponsorship, the deal also covers Betsson working with the club on a range of social initiatives in the local community.

Expanding Latin American presence

“Boca is unquestionably the most esteemed team in South American football,” Betsson Group chief executive Jesper Svensson said. “It’s been home to legendary players like Diego Maradona, who alongside other remarkable players, has elevated Boca to an iconic team globally. 

“By sponsoring Boca, we are partnering with the most recognised sports brand in Latin America. This strengthens our rapid and consistent expansion in the region.”

Betsson chief commercial officer Ronni Hartvig added: “This alliance will mark a significant milestone for Betsson at a regional level. It will accelerate the exposure of our brand throughout Latin America and beyond. 

“We are excited to enter into a partnership with a club that transcends borders, boasting of millions of supporters and fans all around the world.”

Betsson secures other football deals

The deal marks Betsson’s latest commercial partnership within the Latin America region.

In January, the operator entered into a partnership with Chile’s National Association of Professional Football (ANFP). Betsson is now the official naming sponsor of the Chilean first division football league, which was renamed the Campeonato Betsson.

The partnership will also include collaborative efforts to promote responsible gaming and uphold fair play in the league. This builds on existing relationship with the ANFP, with the brand having sponsored the Ascenso second division. 

Also in May, Betsson extended its commercial partnership with Peru’s top football division, Liga 1.

Under the four-year deal, Betsson remains title sponsor of the league and the corporate identity of the division continues as Liga 1 Betsson.

The operator initially acquired title sponsorship rights to Liga 1 in 2021. The brand first linked up with the league and Peruvian Football Federation in 2020.

Gill will replace Raviv Adler, who is stepping down with effect from 31 July to pursue another opportunity.

An experienced executive, Gill joins NeoGames having served as chief financial officer at Aspire Global since July 2016.

Prior to this, he was CFO at GoNet Systems and combined the roles of vice president and CFO at IXI Mobile.

In addition, he spent time at financial controller at both MTS and Netcom Group, as well as audit team manager and Ernst & Young Israel.

“Motti has been with the company for seven years with much of that time spent as the CFO of the publicly listed Aspire Global Group prior to the merger last year,” NeoGames’ chief executive Moti Malul said. “He has continually demonstrated exceptional financial acumen and leadership skills throughout his tenure. 

“He remains instrumental in overseeing critical financial operations and has strong relationships with key stakeholders. Motti is the ideal candidate to step into this role at this time.”

Malul also paid tribute to the outgoing Adler, saying he had had an “immense” impact on the business.

“His unwavering dedication, strategic insights, and exceptional leadership have been instrumental in shaping our company and delivering value for shareholders,” Malul said.

“We are genuinely thrilled for Raviv as he embarks upon a new opportunity and wish him all the best.”

Aspire Global to acquire NeoGames

The appointment comes after last month it was announced that Aspire Global is to acquire NeoGames for $1.20bn (£942.7m/€1.10bn).

Should the deal proceed, NeoGames will transfer its statutory seat, registered office and seat of central administration from Luxembourg to the Cayman Islands. 

An Aristocrat subsidiary would then merge with NeoGames, with the latter being the surviving company and become a wholly owned subsidiary of Aristocrat.

NeoGames’ board unanimously approved the deal, while shareholders who hold 20,382,242 shares, representing approximately 61% of NeoGames’ holding, also executed a support agreement with Aristocrat to vote in favour of the transaction.

Subject to customary closing conditions, the acquisition is expected to close within 12 months.

The one-year agreement will cover the 2023-24 season, with W88 branding to appear on the front of players’ shirts. This will cover both the men’s and women’s first teams.

The Asian-facing operator will also benefit from a branding presence on surfaces around the team’s Turf Moor stadium and digital channels.

In addition, W88 will support Burnley with community projects and initiatives, engaging with fans and assisting in charitable activities.

Burnley will play in the 2023-24 Premier League after securing promotion from the second-tier Championship last season.

“As a newly promoted club, a partnership such as this plays a significant role in helping us to compete in the Premier League,” Burnley director Stuart Hunt said.

“W88 have established successful relationships with several Premier League clubs and sports brands across the globe. We have been impressed by their experience, knowledge and proactive nature in this area. 

W88 business development manager Hilly Ehrlich added: “We’re delighted to partner with Burnley as the team returns to the Premier League.”

Burnley becomes the fifth Premier League club to have signed a shirt sponsorship deal with W88. The brand previously partnered with Wolverhampton Wanderers, Crystal Palace, Aston Villa and, most recently, Fulham.

Shirt sponsorship ban

The deal comes after the Premier League in April announced clubs agreed to a halt gambling sponsorship on matchday shirts.

The withdrawal of shirt sponsorship will come into effect from the end of the 2025-26 season. Deals with operators, either existing partnerships or new agreements, can stay in place until that date.

The Premier League also said it would work with other sports on a new code for responsible gambling sponsorship across the professional sports sector.

Burnley’s deal with W88 is only due to run for a single season, meaning it is set to expire some time before the ban begins.

Earlier this month, Aston Villa agreed a shirt sponsorship deal with Asia-facing operator BK8. The agreement will run to the end of the 2025-26, coinciding with the introduction of the ban.

Newcastle United opted to downgrade its deal with offshore operator Fun88. The brand had served as principal partner since the 2017-18 season but will now focus on driving the club’s growth in Asia.

The buy-back – which began on 12 July 2022 – saw BetMakers repurchase 30,626,884 shares using the business’s cash reserves. Following the announcement, the provider’s shares rose 13%.

The news comes in the aftermath of BetMakers making a number of changes to its senior management team.

In January, the business announced a restructuring which saw CEO Todd Buckingham step down to take on the newly created position of chief growth officer.

BetMakers North American CEO Christian Stuart also announced his exit from the business in April as part of the organisational restructure.

The news came as BetMakers warned that it was facing negative growth in Q2 due to its outstanding investment commitments.

This trend continued in the company’s Q3 report. In the financial quarter the business saw continued cost pressures keeping the business at a loss, despite a 9% rise in revenue.

Dabble renew tech deal

BetMakers also announced today that Australian sports betting mobile app Dabble has renewed its technology contract with the business.

The deal concerns the offering of BetMakers price manager technology to Dabble. The product is the supplier’s managed trading services offering which builds fixed odds solutions for the company’s sportsbook clients.

BetMakers said that, following the deal, Dabble would be poised to improve its position in the Australian racing market.

 “We are excited to renew our engagement with Dabble,” said BetMakers chief executive Jake Henson. “Our price manager product has proven to be an invaluable asset to Dabble in achieving their recent success.

“We are delighted to be part of this growth journey and look forward to the continued productive relationship between our companies.”

Dabble CEO Tom Rundle added: “Our partnership with BetMakers has been instrumental in our success. Their solutions have allowed us to offer unrivalled racing products and pricing strategy. We are very pleased to continue this strong and productive partnership with BetMakers.”

Dabble Moneyball acquisition

Meanwhile, in February Dabble completed its acquisition of mobile sports betting platform Moneyball Australia for an undisclosed amount. The business said the purchase formed part of the business’s growth strategy.

Following the transaction, Rundle highlighted the growth in the company’s sports betting community. “We are excited by the growth of the Dabble community that this acquisition will deliver,” he said.

This was up by 17.6% year-on-year compared to Groupe Partouche’s H1 2022 GGR.

Turnover for the period was €215.6m, up by 15.2%.

Groupe Partouche said that the total operating income for the six months – which was €19.3m – rose by 99.0% due to a number of factors.

One of these was the improvement in activity at Pasino Grand, a Partouche casino in the city of Aix-en-Provence in France. It generated €2.1m in operating income for the half-year.

This was the casino’s first “normal half-year of activity” since renovations ended in April 2019.

In addition, Groupe Partouche pointed to the “excellent performance” of online gaming in Switzerland during the period, which is sitting at €500,000 in operating income for 2023 compared to €3.5m in 2022.

Half-year results

The decline from €215.6m in turnover and €19.3m in operating income was due to a number of expenses.

Purchases and external expenses totaled at €70.7m, a rise of 16.5% year-on-year. But the biggest expense of the half-year was related to employee costs, which added up to €87.4m – up by 6.7%.

Depreciation, amortisation and impairment of fixed assets added up to €24.5m, which was a decline of 6.5%. Meanwhile, tax and duties came to €9.6m – down by 5.8% – while other operating expenses hit €4.2m.

Other non-current income and operating expenses hit €700,000. This brought the total operating income at €20m, a decline of 26.2% year-on-year.

But financial income of €1.5m reduced the income tax once again, resulting in pre-tax income of €18.6m.

Follwing corporate income tax at €1.0m, and CVAE tax at €700,000, the post-tax income was €18.9m, down by 23.5%.

After shares in equity-accounted associates earnings at €100,000, the total net income for the half-year was €18.8m, a decline of 23.3% yearly.

Earnings before interest, tax, depreciation and amortisation (EBITDA) hit €42.7m for the six months, up by 24.6%.

The House of Representatives committee on social policy and legal affairs inquiry into online gambling and its impacts on problem gamblers released a report that outlines 31 recommendations for reforming the gambling sector in Australia.

If adopted, these wide-ranging measures would represent a wholesale transformation of the country’s online gambling regulatory regime.

Among other measures, the committee advised a blanket ban on all gambling advertising on both broadcast media and online, “that leaves no room for circumvention.”

The Australian Prime Minister Anthony Albanese has said that the government will consider the recommendations of the committee.

Committee recommends Australia ban gambling ads

The committee criticised the spread of online gambling advertising in the strongest possible language.

“Online gambling companies advertise so much in Australia because it works,” said the committee’s chair Peta Murphy MP.

“Online gambling has been deliberately and strategically marketed alongside sport, which has normalised it as a fun, harmless, and sociable activity that is part of a favourite pastime.

“Gambling advertising is grooming children and young people to gamble and encourages riskier behaviour. The torrent of advertising is inescapable. It is manipulating an impressionable and vulnerable audience to gamble online.”

“A step too far”

In response to the report trade body Responsible Wagering Australia (RWA), which represents the country’s largest gambling operators, criticised a potential blanket ban as a “step too far”.

In a statement, the lobbying organisation called on the government to take a balanced approach to the committee’s report.

The body’s CEO Kai Cantwell said that the advertising ban recommended by the inquiry failed to take into consideration the evidence from the committee’s hearings.

“RWA members, along with broadcasters and major sporting codes have publicly acknowledged that there is a growing desire in the community to see less gambling advertising,” said Cantwell.

“However, blanket bans – even in a phased roll out – are short sighted, ineffective and are not the answer.

“We know that strict changes – like blanket bans and banning inducements, such as bonus bets – often prove ineffective in addressing problem gambling, with Australians instead turning to illegal offshore markets as they seek out these options.”

Other measures recommended by the committee

In addition to the ban on gambling advertising, the committee recommended an additional series of measures that would radically transform the provision of online gambling in Australia.

Under the committee’s recommendations, regulation and licensing would move to the federal level, though the states would retain its responsibility of levying post of consumption taxes on online gambling.

The report also recommended that a single government minister be chosen to deliver a national strategy on online gambling harm reduction.

Other measures include the establishment of an online gambling ombudsman, a public education campaign, a harm reduction levy be imposed on all online operators and a crackdown on unlicensed operators.

In May, RWA released a report with H2 Gambling Capital outlining that unlicensed operators could cost Australians A$3.35bn in lost taxes.

The committee also recommended stronger consumer protection requirements for online gambling, new know your customer (KYC) requirements for gaming operators, a ban on inducements and a legislated duty of care for gambling businesses.

“Weak and fragmented regulatory framework”

“Australians lose the most to online gambling because we have a weak and fragmented regulatory framework, which places all the onus for reducing harm onto the person who gambles,” said Murphy.

“Despite gambling harm being a major public health issue, we do not treat it like one. Instead, our policies and regulation encourage ‘responsible gambling’, which absolves online WSPs of much of the responsibility for the harm their products cause

In 2022, online gambling operators in Australia raised A$1.60bn in taxes for the government.

The same year, a survey by the Australia Institute found that 71% Australians supported a ban on gambling ads on television.