Month: July 2023

Under the deal, EveryMatrix will gain access to Complitech’s technical compliance database for the online gambling sector.

The database provides updated technical compliance requirements for over 50 regulated jurisdictions around the world.

EveryMatrix will also have access to gap analysis tools to assess the workload of new market entries, based on the jurisdictions where a product is already live.

Complitech is delivered by technical compliance specialist Maxima Compliance, part of the ComplianceOne Group, on a subscription basis.

“We are delighted to start using the services provided by Maxima Compliance,” EveryMatrix lead technical compliance officer Mina Bolînu said. “This will improve our throughput and accuracy in navigating our industry’s constantly changing regulatory landscape.”

Miriam McCoull, head of Complitech at Maxima Compliance, added: “We’re really honoured to see a supplier as respected as EveryMatrix place Complitech at the heart of its approach to technical compliance. 

“The Complitech database is trusted by those looking to achieve excellence and efficiency across their compliance function. With new markets and functionality added on an ongoing basis, it is a must-have tool for suppliers in regulated markets.”

On 28 June, Peru’s president Dina Boluarte signed the country’s new gaming legislation into law. The law aimed to solve a number of problems with the previous legislation, Law No 31,557.

The law, which the previous president Pedro Castillo signed in August 2022, marked the long-awaited regulation of the country’s gaming sector. However, according to Felix, the law faced criticism from industry trade bodies for four principal failings. These were:

The potential high cost of retail licencesThe lack of clarity on offshore taxThe mandatory use of the .bet.pe domainToo short a time period outlined for the sector to adopt the law

Starting from scratch

As a result, the new version of the law took steps to rectify these failings.

The law itself resulted from of a robust set of discussions between multiple stakeholders, which included gaming trade associations, multiple government departments, trade unions and civil society.

Felix says that Peru’s gambling regulator – the Ministry of Foreign Trade and Tourism (MINCETUR) – also “called on all national and international stakeholders to review the document and deliver suggestions”, with the responses totalling more than 700.

“This was an unprecedented event in the history of public consultation, in terms of the preparation of the technical regulation of a law of the sector,” he says.

High cost of retail licences

Under Law No 31,557, operators looking to offer gambling in Peru were given two options for licences. Retail betting operators could apply for the first type of licence, with the second being an online-exclusive licence.

According to this initial law, a retail licence would cost Sol24,750 (£5,300/€6,300/$6,700) per shop. In comparison, the total cost for an online licence topped £215,000. The gaming sector objected to this because large retail betting operators in Peru would be expected to pay a much higher total licence fee than an online operator.

As a result, the new law eliminated the retail licence, instead creating a single online licence. Lawmakers decided to triple the cost for the new unified licence type to £645,000.

Felix says that in Peru, licence fees are not one-time costs. Rather, they are a bank letter guarantee presented to the government. The guarantee functions like a deposit.

This is meant to ensure operator compliance with the licence’s terms and conditions. The money will ultimately be returned to the operator if it chooses to exit the market.

Felix highlights that Peru’s gambling market – in line with Latin America as a whole – operates largely in an omnichannel fashion.

“We can conclude that in the next 10 years, this model will be maintained,” he says. “But sales could concentrate 85% on the online channel and 15% on the retail channel.”

Lack of clarity on tax

The industry had also voiced concerns regarding the lack of clarity on what tax burden offshore operators would face.

The original version of the law said that operators with a headquarters in Peru would face a 12% tax on revenue. However, it was not clear whether foreign operators would be subject to the same tax.

The new regulations aimed to clear up this ambiguity by establishing a single 12% point-of-consumption tax for all businesses offering their services in Peru, no matter where they were based.

Operators already active in the market also objected to the mandatory use of the .bet.pe domain address. Felix says they did so because this would have “commercially affected the change in domain of platforms that were in operation at the time”.

Consequently, the new regulations broaden the rules to allow authorised platforms to use any of the following domains – .bet.pe, .bet, .com.pe, .com or .pe.

Short period for adoption

The final reason Peru opted to change its gambling regulations concerned the length of time operators would have to acquaint themselves with the new law – 60 days.

Under the law, this deadline kicked in as soon as MINCETUR finalised the law’s technical regulations. Felix says this time period was “in practice, very short”.

The new rules subsequently included a provision doubling the adoption period to 120 days.

Other provisions of law

But the new legislation didn’t exist to solely fix past errors or controversies. New elements include a mandatory requirement for know-your-customer (KYC) checks on customers. Additionally, only licensed operators are permitted to sponsor sporting events or partner with athletes.

The law amends Peru’s criminal code and criminalises the act of conducting offshore gambling operations without a licence. This is punishable by up to four years in prison.

New horizons

According to Felix, the new rules – alongside the prospect of robust gaming regulation – are a positive development for the gaming sector in Peru.

“It put Peru in the global interest, as one of the seven attractive markets in the LatAm region along with Brazil, Mexico, Argentina, Colombia, Venezuela and Chile,” he says. “The maturity of the market is evident.

“We hope that this law will promote greater growth and consolidation of the Peruvian market in the coming years.”

For Felix, the well-thought-out nature of the new rules resulted from the government engaging many prominent stakeholders in the reform process.

“There was a broad and active participation in the discussion and debate of the draft amendment of this law and the technical regulations,” said Felix.

“The final result of this law reflects this hard work and participation.”

Bplay initially went live with an igaming offering on GiG’s B2B platform. This will be expanded to also include an online sportsbook in the third quarter.

The launch marks the fifth Argentine jurisdiction in which Boldt Group has partnered with GiG. The two parties were already active in Buenos Aires, Santa Fe, Entre Ríos and the city of Buenos Aires.

“Bplay continues to provide the best gaming experience for our clients in Latin America,” Boldt Group business unit manager José del Pino said. “This leads not only in the launch of new licences, incorporating new and great games and products, but also improving user satisfaction.”

The roll-out also means GiG is regulated in 30 markets worldwide, with a further seven in development. 

GiG commercial director David Bonnefous Saavedra added: “Our excellent relationship with the Boldt Group and the continuing expansion of our original deal, highlights the strength of our platform, technology and managed services teams.

“We’ve positioned ourselves to be able to support our partners growth aspirations. We understand where those opportunities are and ensure we not only meet those expectations but exceed them. 

“It is this ability to offer a localised and personalised service to a tier one operator like Bplay, that we believe places GiG as a market leader in the B2B space.”

Under the deal, Bet365 will remain the official sportsbook partner of the UFC in the UK and Ireland for at least the next year.

This arrangement will also be extended to cover certain other European territories. These include Bulgaria, Denmark, Germany, Greece, Italy, the Netherlands, Spain and Sweden.

Other aspects of the deal include IMG Arena, an official partner of UFC, providing a range of features for the Bet365 app and website. This covers assets such as the UFC’s official data feed and in-screen live streaming of UFC bouts.

Bet365 users can also now access a “Bet Builder” feature, allowing them to create bespoke bets. Players can select from multiple markets for the same bout and combine them into a single bet.

Ongoing deal

In addition, Bet365 will continue to run the “One on One” dedicated UFC show on its official YouTube channel. This will feature exclusive previews, analysis and demonstrations of MMA techniques.

“We’re delighted to extend our partnership with UFC for a third consecutive year,” a Bet365 spokesperson said. “2023 will be the biggest and most exciting year yet for our customers, with the launch of two new enhancements to our UFC betting experience. 

“Customers will be able to bet on UFC via our market-leading Bet Builder product. Existing customers will also be offered live streaming for UFC events as an in-app feature.”

UFC vice-president of global partnerships, Nicholas Smith, added: “Bet365 have been such a great partner over the years. Not only are they invested in growing the sport of MMA by creating bespoke and educational content, but they share UFC’s vision of innovation and creativity to deliver fans and customers the best experience possible. 

“We look forward to growing and expanding this partnership for years to come.”

The UFC has similar partnerships in place with a number of other operators. Last month, the series struck a regional deal with FL Entertainment-owned Betclic.

Betclic now serves as an official betting partner of the UFC in France, Poland and Portugal.

The renewed deal will run for two years, covering the 2023-24 and 2024-25 season.

QuinnBet’s branding will appear on the front of the first team’s travel-wear range, which players will wear at all fixtures. 

The operator will also continue to benefit from a presence on screens and pitch-side LED at the team’s Easter Road stadium. QuinnBet began working with Hibernian in 2022.

“We really enjoyed working with the team at QuinnBet over the last 18 months,” Hibernian head of commercial Murray Milligen said. “It’s fantastic that we’ve been able to extend our partnership for two more years.

“Their commitment to raising awareness of responsible gambling is hugely important. We look forward to working closely with them to develop strategies to continue that.”

QuinnBet marketing manager Niall McPartland added: “We enjoy a fantastic relationship with the club. It is an honour for us to continue our sponsorship as the 150th anniversary of the club approaches.  

“We take our social responsibilities extremely seriously and would like to thank the commercial team at Hibs for all their support in ensuring that our partnership with the club has the promotion of responsible gambling to the fore.”

Safer gambling focus for Kindred

The deal comes after Kindred Group last month revealed it would use its shirt sponsorship of Rangers to promote its “Journey towards Zero” safer gambling initiative.

For the 2023-24 season, Kindred will replace its 32Red brand on the front of players’ shirts with the logo of sister product Unibet.

Unibet branding will be accompanied by the “Zero % Mission” slogan. This raises awareness of how Kindred is working to eliminate all revenue that it generates from harmful gambling.

The initiative will also aim to educate players about the tools available to keep gambling safe and enjoyable, as well as signpost where to go if they encounter problems.

KSA said the posts promoting illegal gambling offerings appeared on social media sites such as Facebook and Instagram. It added that the accounts responsible were closed after KSA made reports to parent company Meta.

During the six-month period, KSA said that a number of successful investigations took place regarding illegal gambling in the country. Several sanctions were imposed and new methods of investigation were put into practice.

Illegal gambling providers

KSA explained that it imposes orders onto operators that are operating illegally in the Netherlands. This gives operators the chance to shut down the illegal activity immediately, or have to pay periodic payments.

If the operations are not shut down in time, KSA can impose a definitive order subject to periodic penalty payments. During the first half of 2023, KSA imposed these orders on three providers. It added that several reports on further fines are currently in preparation.

At the end of 2022, an investigation began into eight websites that advertise illegal gambling offerings.

The investigation continued into 2023. KSA is set to take enforcement action against four of the eight websites.

Rise in cryptocurrency

The regulator also commented on the rise in cryptocurrency being advertised as a payment method.

Six investigations into bitcoin payments used by gambling operators took place in 2023. A sanction was handed down in each instance.

In terms of illegal land-based gaming, KSA said it had provided support to municipal and police teams in 42 cases.

Investigations into these cases involved raids and municipal action.

The regulator is within its right to confiscate relevant material from illegal land-based operations, including unregulated slot machines.

Advertising ban

The Netherlands implemented a ban on various forms of gambling advertising on 1 July. This ban prohibits advertising on television, radio, in print and in public places.

The ban also encompasses gambling sponsorship on events and sports clubs. This will take place in two phases – from 1 July 2024, it will be illegal to sponsor events and programmes and, from 1 July 2025, operators can no longer sponsor any aspect of the sports sector.

Dutch minister for legal protection, Franc Weerwind, confirmed the nationwide ban in April.

The Slovenian ministry of finance confirmed the news that both major bids to acquire Športna Loterija had been withdrawn.

The government department does not own the sports betting monopoly, but consent would have been required to complete the transaction.

The news follows last month’s announcement that the Ladbrokes Coral owner would be acquiring Polish gaming operator STS. This will proceed through a joint venture subsidiary.

 “We can confirm that after careful consideration, Entain has decided not to proceed with the acquisition of a stake in Športna Loterija for now,” said the operator in a statement to iGB.

Reported €50m price tag

Slovenian media reported that the bidders were offering roughly €50m for 100% of Športna Loterija’s shares.

Local media said the sale of the monopoly to a foreign gambling operator had proved to be controversial among the Slovenian public.

Much concern centred around whether the sale of the monopoly would have consequences for Slovenian sports. National sport receives funding from a levy on the monopoly’s revenue.

At present, the organisation’s current ownership is divided among several parties. These include the Skiing Association of Slovenia, Olympic Committee of Slovenia, Post of Slovenia and Lottery of Slovenia. Each holds a 20% share.

Additionally, the Football Association of Slovenia has a 17% stake, with the remainder divided between two smaller shareholders.

Entain CEE expansion

Last month, it was revealed that Entain CEE, the joint venture with Czech investment fund Emma Capital, would be acquiring Polish gaming operator STS for an equity value of £750m.

The Warsaw-listed business, which is Poland’s leading sports betting operator by revenue, saw its chief executive Mateusz Juroszek retained by the venture.

Over recent years, Entain has pursued a strategy of acquiring “local heroes” from a number of markets. This was opposed to attempting to enter new markets with the business’ existing brands.

These bolt-on acquisitions are in keeping with Entain’s plans to generate 100% of revenue from regulated or “regulating” markets.

Shareholder slams STS acquisition

However, Entain’s decision to fund the STS deal by issuing new shares proved controversial in some quarters.

Following the announcement, Eminence Capital, which owns a 2.1% stake in the London-listed business, slammed the “illogical” deal.

“While we can support the company pursuing seemingly rational acquisitions, funding them with highly undervalued equity is an empire building, shareholder value destroying strategy,” said Eminence CEO Ricky Sandler.

Sadler highlighted that Entain’s stock price had fallen 8% in the wake of the deal. He argued that the market’s reaction should be a wake-up call to the business’ “tone deaf board and management team”.

“We can assure you that this particular shareholder is outraged and in light of the movement in the company’s share price we are clearly not alone in that sentiment.

“As shareholders lose confidence in Entain’s ability to allocate capital and create long term value, it is quite likely they will support a sale of the company to MGM at a materially lower price than previously assumed.”

Brown replaces Lasse Rantala, who will assume the position as chair of the board at Rootz.

An experienced industry executive, Brown joined Rootz in June last year as chief commercial officer. Prior to this, he spent three years as CCO at Hero Gaming and had a spell as CEO at Rolla Services.

Brown also spent time as live casino director at NetEnt and held several senior roles at both Betsson and Betfair. He began his career in the industry with Ladbrokes, where he had a spell as casino marketing manager.  

“After an exciting first year at Rootz my passion for the business has only grown stronger,” Brown said. “We have a great vision for the future and have the people, technology and ambition to deliver it. 

“It’s an honour to be entrusted with the next phase of the Rootz journey.”

Rantala, who will work alongside Brown to ensure a smooth transition over leadership, also welcomed the appointment.

“As I pass on the mantle of CEO to Sam, I am filled with immense pride and confidence,” said Rantala. “Sam’s commitment to excellence, strategic mindset and passion for innovation make him the perfect fit to lead Rootz into its next chapter. 

“I have full faith in his ability to steer our company to even greater heights. The board is fully dedicated to offering him unwavering support every step of the way.”

Expansion plans

Rootz said the transition in leadership ensures a seamless continuation of its commitment to innovation, customer satisfaction and the pursuit of new market opportunities.

Earlier this year, the group made its North American debut after securing a new licence in Ontario. This came weeks after Rootz also went live in Germany, following confirmation of a licence in the country last September.

Rootz, which is also licensed and regulated by the Malta Gaming Authority, launched its first casino, Wildz, in July 2019. The group also operates Wheelz and Caxino, as well as streaming brand Spinz. All four casino brands run off the Rootz proprietary platform, utilising a single account structure.

The figures come from GambleAware’s latest annual survey on harms among gamblers and family members. The report examined gambling-related issues including whether gamblers were exposed to gambling in childhood and at what age.

The YouGov survey was conducted using a nationally representative selection of 18,000 adults. It found 64% of adults who experience significant harm from gambling knew someone who gambled when they were a child.

In comparison, of adults who do not gamble, 25% said that they knew someone who gambled at a younger age.

The report said relapse rates among problem gamblers are highest, at 87%, with gamblers who already experience significant harms.

It also found 33% of adults experiencing significant gambling harms have not accessed treatment services, with many saying stigma as the reason why.

GambleAware has in the past called for the need to mitigate these stigmas. In March, the charity awarded a new £350,000 research grant to a group of organisations investigating the topic.  

Early exposure to gambling

The report asked respondents what age they were when first exposed to gambling. Some 6% said they were exposed to gambling before the age of five, with a further 28% saying they were 6-11.

In addition, the report found that 22% of people reported having first gambled before they were 18. Some 16% said that they placed their first bet between the ages of 12-17.

GambleAware said written responses found many people considered this introduction to the activity as a “turning point”. Others said it was a hobby inherited from family that led eventually to harmful gambling.

GambleAware chief executive Zoë Osmond said the organisation was “concerned about the normalisation of gambling across society”.

“It is also important to end the stigma associated with gambling, which is acting as a key barrier to those wanting advice and support. We encourage people to come forward and open up the conversation about gambling to put an end to stigma and ensure people get the help they need.”

GambleAware backs statutory levy

Last month, GambleAware – alongside NHS England – announced its support for the statutory levy, a mandatory tax on operator revenue to pay for research, education and treatment programmes.

The levy, set to replace the current voluntary contributions supplied by the gambling industry, is one of the proposals of the gambling white paper. The white paper is a Whitehall document released by the government in April, outlining planned reforms of UK gambling laws.

This week, the NHS announced the doubling of the number of gambling addiction clinics in the UK. This, it said, came in response to mounting referrals.

The concerns were voiced in a statement of objections addressed to both companies. In it, BCA said that the deal could have “unduly restricted” competition between Ladbrokes and PMU in the market.

BCA said its investigation and prosecution service had contacted Ladbrokes and PMU regarding the deal. This was set to allow Ladbrokes to offer PMU’s horse-racing products to the Belgian market.

BCA also said that the agreements set out in the deal were no longer in force.

The service communicated that Ladbrokes and PMU’s agreement may be in breach of Belgium’s competition rules. Specifically, the breach may be to article IV.1 of the Code of Economic Law and Article 101 of the Treaty on the Functioning of the European Union.

The statement of objections does not amount to enforcement action. BCA said that both Ladbrokes and PMU can share their views on the matter.

Enforcement action

Ladbrokes was the subject of enforcement action just yesterday (5 July), when the Advertising Standards Authority (ASA) ruled that the operator had breached its advertising code.

The complaint centred around a tweet that featured influencer and boxer Jake Paul, which the ASA argued could be interpreted as appealing to under-18s. Although Ladbrokes initially defended the tweet, the complaint was ultimately upheld by the ASA.

Earlier today (6 July), Entain pulled out of a deal to acquire Slovenian sports betting monopoly Športna Loterija, alongside Superbet. It was reported in local media that bidders were offering an estimated €50m for 100% of Športna Loterija’s shares.