Month: July 2023

On 22 March, Valve, the publisher of Counter-Strike: Global Offensive (CS:GO) – the world’s biggest title for esports betting – formally announced that it will launch a new title, Counter-Strike 2 (CS2) this coming summer.

Summer has arrived but the final release date for CS2 remains a mystery. With a chance that the game could be launched any day, Clay Bartolo, trading operations leader at Pandascore, poses some key questions about what the launch could mean for the esport and how this can impact trading.

Updated graphics, adjustments to maps and tweaks to mechanics raise a lot of questions about how the markets are going to be priced. The quirks of the competitive calendar and how this interacts with the launch could also throw another spanner in the works.

Early planning for Counter-Strike 2

Alongside the launch announcement came news that the recent BLAST.tv Paris Major would be the last major on the current title CS:GO, with the first official tournament on the new CS2 being the PGL Major Copenhagen in 2024. This means we’re still a while away from seeing the new competitive environment in action, making it difficult to make any definitive assumptions. However, there are some features of CS2 that can be examined to inform our look ahead.

Adjusting to game mechanics

While the core structure of the game isn’t changing, there are some important changes to mechanics that we know are coming:

●     shooting through smoke grenades creates vision

●     fire from Molotovs takes longer to spread

●     player movement is tweaked

●     changes to maps creating new dynamics and opportunities

The specific impacts of these changes on the competitive environment are tough to predict, as even tiny changes can reveal new strategies and game plans. However, even though the first official tournament takes place in March 2024, the game itself will be launching for general play months beforehand. This means we will be getting a glimpse of the potential impact of these changes months before the first official tournament takes place.

One thing that is certain is that form and skill will not necessarily carry over from a team’s performance in CS:GO. From a team’s strategic preferences, how they prioritise training, to how much time they have spent in the CS2 environment before the switch, any and all of these factors could result in even a top team in CS:GO struggling in CS2.

In the first few tournaments and particularly the first major, the teams that can adapt quickly to the changes will be rewarded. This means that a big strategic question for teams is how they will handle the transition period. When will they switch to the new game, are they going to train for both games and, if so, for how long?

Scheduling may favour the underdogs

With the competitive circuit as it currently stands, top-tier teams are likely to be playing CS:GO until at least the December player break. These teams will be trying to balance their desire to be competitive in the new game with their desire to maximise winnings in the final CS:GO tournaments. For lower-tier teams that have no big tournaments coming, there’s a much higher probability that they will make the switch earlier and focus their training on the new game. For teams that aren’t present at DreamHack or the big BLAST competitions, there is an opportunity to build an edge come time for pro-CS2 because they have more practice and familiarity with the new game.

There could even be some teams withdrawing from some CS:GO tournaments to smash low-tier CS2 tournaments to prepare for the Regional Major Rankings (RMR) qualifiers. Practising in public lobbies and scrimmages won’t be enough, teams will want to get as much competitive practice as possible to build match fitness for when it comes time to qualify for the major.

All these variables mean that traders will need to take on more factors than just historical data. For example, if a lower-tier team already has a few unofficial CS2 tournaments under their belt, an adjustment would need to be made. This means that overall we can expect more conservative, considered approaches when it comes to pricing CS2 markets in the early days.

The League One player was hit with the enforcement action after an Independent Regulatory Commission ruled he’d breached the Football Association’s (FA) betting rules.

Clark admitted placing 312 bets on football matches while playing for Accrington Stanley between February 2022 and March 2023.

The FA instigated disciplinary proceedings against Clark on 9 May 2023. This was for misconduct under FA rule E1.2. The FA also alleged that each bet placed made up a separate breach of rule E8, regarding betting conduct.

The FA’s rules prohibit players from betting on any aspect of the game, particularly if it involves their own team.

Clark bets on own team to lose

While almost all of Clark’s bets involved other teams, on one occasion the player bet on his own team to lose.

The Commission noted that such an action usually resulted in a ban of six months to life. However, in this case, the panel decided to issue a lower penalty because the bet was only made once. In addition, it was part of an accumulator bet and the amount was low.

The Commission emphasised that Clark did not play in this particular game, and that it had not been suggested that the bet or his conduct influenced the integrity of the game.

“Overall, in the panel’s opinion, there was no evidence of the defendant showing a particular proclivity or consistent intent to target his team losing in his betting activity, or any indication that he had sought to attempt to influence or bring about a negative result for his team,” said the Commission.

The regulatory body opted to suspend the three-month ban for two years, pending any more violations of the FA’s betting rules.

Ivan Toney suspension

In May, the English FA issued an eight-month ban to Brentford striker Ivan Toney after ruling that he violated its betting rules.

The FA booked Toney for 262 breaches of the rules over a four year period.

Later that month, it was revealed that the initial sentence had been reduced from 11 months after the player had been officially diagnosed as a gambling addict.

iGB L!VE 2023 will take place at the RAI Amsterdam between 11-14 July. Recent data shows that 33% of this year’s visitors to the show will be attending for the first time.

Naomi Barton, director of the iGB Events portfolio, said that the registration increase has set this year’s event up for success.

“We are delighted to be staging what is shaping up to be the igaming event of the summer,” said Barton. “Analysing the trends behind the surge in registrations, we know that 33% of our visitors will be attending iGB L!VE for the first time which means thousands of potential new business connections.”

Connecting with the industry

Barton detailed that 25% of those registered said they primarily want to meet new customers. She added that more than half saw this as the decision-making factor.

“In terms of their core objectives we also know from the data that the industry is travelling to Amsterdam hungry to do business, with 25% of registrations saying that their primary reason for attending iGB L!VE is to meet new customers, suppliers or partners with over half (51%) of the total attendance constituting the final decision-maker in their organisation,” she continued.

“In terms of jurisdictional hot spots, 67% are targeting Europe with Latin America highlighted by 31% of registrations.”

New features

This year’s edition of iGB L!VE will also feature a number of new show elements. The event will also showcase a record number of exhibitors.

“Exciting new features including the first Consumer Protection Zone, the iGB Pulse content theatre, workshop and Mingle Zone, a record 207 exhibitors, the participation of industry-leading speakers combined with the very best curated networking opportunities make iGB L!VE 2023 an unmissable mid-year event for the international igaming community,” said Barton.

Also at the show, a number of industry bodies are set to release the results of a study into women’s sports. The study focuses on betting trends and integrity measures.

The tumultuous year saw the large decline in William Hill’s online segment largely offset by a resurgence in retail. The company’s retail revenue rose 52.7% year-on-year to £514.2m. The operator said this resulted from the return to normal trading levels in the aftermath of the Covid-19 pandemic.

In contrast, William Hill’s UK online business saw a 19.0% decline in revenue to £509.1m. The operator put this down to both the return of retail and enhanced customer safety checks in anticipation of the government’s gambling reform white paper.

The imposition of regulatory measures and the company’s exit from the Dutch market also hit the operator’s international online business. Revenue from these activities fell 23.1% to £212.0m.  

Despite its overall reduced revenue, the business reported a rise in its adjusted earnings before interest, taxes, depreciation or amortisation (EBITDA), almost entirely resulting from the operator’s recovery in the retail segment.

The company reported a total operating loss of £31.0m for 2022. Despite this, the group announced a profit of £168.4m, largely a consequence of a one-off foreign exchange gain.

William Hill attempts to cut costs

William Hill made a concerted effort to cut costs in 2022. While the business’ cost of sales remained broadly similar at £383.7m, the company saw reductions in its other expenses.

Its marketing expenses fell by 30.5% to £151.1m. The operator also reduced its operating expenses by another 6.7% to £583.5m. 

However, the costs of the deal – in addition to the increase in legal costs for 2022 – led to a rise in exceptional costs from £99.4m to £148.7m.

In July 2022, 888 finalised its purchase of William Hill’s non-US business. Following the completion of the £1.95bn transaction, 888 has attempted to integrate the two businesses into a single entity.

William Hill says there are now plans to migrate the business to a single technology platform for the delivery of the group’s content. William Hill said Satty Bhens, chief technology and product officer, is responsible for this work.  

888 difficulties

Following the completion of the deal, rising interest rates made it harder for 888 to service the debt it took on in order to get the acquisition over the line.  

As such, the company announced in December 2022 it would be tapping into the debt capital markets to finance €200m of acquisition debt.

These financial difficulties were followed in January with regulatory issues, when the business suspended its Middle Eastern VIP account pending an investigation into the company’s failure to follow anti-money laundering procedures.

The incident also led to the resignation of 888 CEO Itai Pazner.

As a result, 888’s share price fell nearly 70% from July 2022 to a nadir of £52 per share in late March 2023.

Since then, 888 shares have experienced a resurgence, largely driven by last month’s news that a number of former GVC executives – including former CEO Kenny Alexander – would be investing in the business through their FS Group vehicle.

The February 2023 Ladbrokes ad, which took the form of a promoted tweet, featured Paul following his bout with English professional boxer Tommy Fury.

The ASA claimed that this represented a breach of its advertising code due to Paul’s popularity with under-18s. Following the decision, the ASA ordered the ad not to appear in its current form.

Ladbrokes initially defended the ad, arguing that it included no calls to action, promotional offers or links back to the Ladbrokes site. The company pointed to an age-gate it had implemented on its feed. This meant users could not be access the ad unless Twitter had accepted that they were over-18.

The operator also said that boxing is not listed as being of moderate or high-risk sport under the CAP guidelines.

Additionally, the business said that it had assessed Paul’s follower profile, brand partnerships and sponsorships to determine the level of risk. The company noted that the influencer currently has a number of deals with alcohol and cryptocurrency businesses.

ASA upholds complaint

However, despite Ladbrokes defence, the ASA opted to uphold the complaint. As evidence for this the body pointed to the Paul’s 65 million social media followers across multiple platforms. The ASA emphasised around 3 million followers are registered as under-18s on each site.

The organisation also highlighted that Paul featured on children’s TV programme Bizaardvark from 2016 to 2018, a show about two teenagers. The ASA added that the target audience for the programme would include some people under the age of 18 as of 2023.

“We therefore considered it was likely that the target audience for that programme would be around the same age and that therefore it was likely to have a strong appeal to under-18s,” said the ASA.

Second Ladbrokes ad offense

The decision is not the first time the ASA has decided to act against a Ladbrokes ad. In July 2021, the self-regulatory body upheld a complaint against the betting and gaming operator. The ad took place as part of Ladbroke’s April 2021 “Where the Nation Plays” campaign.

The case concerned an advert which involved scenes of three men placing bets on the Ladbrokes app and their various reactions to a football game. In that case, the operator ruled the ad socially irresponsible and likely to encourage problem gambling.

The deal will run for years, beginning in the 2023-24 season and running to the end of 2025-26. The competition will be known as the Oddset Cup for the duration of the agreement. 

Run by the Danish Football Association (DBU), the Danish Cup is an annual knockout event featuring teams across the country.

FC Copenhagen clinched the 2022-23 Danish Cup, winning the competition for the ninth time. The 2023-24 Danish Cup kicks off on 8 August.

“The cup tournament is the place where all clubs have the opportunity to reach the final and dream of the big cup,” DBU acting chief executive Kenneth Reeh said. “It is a fantastic tournament with proud traditions.

“We are happy that Danske Spil will help strengthen the tournament and spread awareness of the many exciting matches across the country.”

Danske Licens Spil CEO Karsten Fogh Holanng added: “At Danske Spil og Oddset, we are happy to be the new main sponsor for the cup tournament. The traditional tournament is a meeting point for both the general public and the elite, and our customers have a great interest in the tournament. 

“That is why it is natural for us to get involved here and help raise the fan experience throughout Denmark and pay tribute to the clubs in the many different Danish football ranks.”

Revenue growth at Danske Spil

Last month, Danske Spil reported a year-on-year increase in revenue and net profit for the first quarter. The business said this driven by growth within its lottery operator business.

Total revenue for the group in the three months to 31 March amounted to DKK1.22bn (£140.4m/€163.8m/$178.5m). This was up 8.4% from DKK1.12bn in the same period last year.

Breaking this down, Danske Lotteri Spil generated DKK678m in revenue, an increase of 6.4% year-on-year.  Danske Licens Spil, which includes sports betting and online casino, posted DKK397m, down 6.2%. 

Revenue from Elite Gaming, its gaming hall business, reached DKK76m, a year-on-year rise of 24.6%. 

Danske Klasse-lotteri, the “class lottery” that was integrated into the business in April 2022, generated DKK64m in revenue. In addition, the group noted DKK2m in revenue from the Swush fantasy sports platform, level with the previous year.

In the new role, Miloslav will support Atlas-IAC in establishing strong partnerships across its global client base. This will include working with customers across existing markets and new regions.

Miloslav joins the provider after a spell as sales business development at Delasport. Prior to this, he spent three years as commercial director at DraftKings.

Earlier in his career, Miloslav worked at SBTech for almost three years. During this time, he held roles such as team lead account management and account manager.

Before joining the gambling sector, Miloslav worked for Feuji, Convergys, Hewlett-Packard, C3i Europe and BTC.

“I am thrilled to be joining such an upwardly mobile brand in Atlas-IAC,” Miloslav said. “The company has such a talented team, and I am sure we will do great things together.

“Our aim will be to continue with our expansion across regulated territories with a huge focus on the LatAm market.”

Atlas-IAC chief executive Maxim Slobodyanyuk added: “I am delighted to welcome Miloslav to Atlas-IAC. I am sure he will prove to be a great asset as our new chief sales officer.

“Miloslav has exceptionally strong leadership skills, possessing excellent organisational abilities as well as being a creative strategist will see him thrive in the role. 

“His expertise and background across multiple positions will no doubt be a huge benefit to us as we strengthen our offering across a number of markets.”

Under the four-year deal, 10bet will serve as the official betting partner of the senior men’s national team.

10bet will roll out a series of fan engagement activities as part of the deal. In addition, the operator will support the SAFA with its community initiatives. 

Licensed in South Africa, 10bet also holds approval in the UK, Ireland, Sweden and Mexico.

“We are delighted to partner with 10bet South Africa,” SAFA chief executive Lydia Monyepao said. “This is the beginning of a relationship between two ambitious and forward-thinking brands. 

“We hope this partnership will help us bring fans the best possible product and experience and continue growing South African football.”

10bet South Africa chief revenue officer Henriques Colborne added: “This is an exciting partnership based on pride, passion, and love of the beautiful game. 

“Bafana Bafana is an iconic brand that’s at the heart of millions of South Africans. It is also one that has played a pivotal role in bringing people together, generating excitement, and positively impacting communities.

“It is a perfect fit for our growing brand locally.”

The licences will enable Azartia Games to offer online sports betting and games of chance in the country. Azartia will operate via the Goldenpark.pt website.

Both licences were issued by national regulator Comissão de Jogos do Turismo de Portugal (SRIJ).

Azartia joins a host of other brands in securing approval to offer online gambling in Portugal. Other licensed operators include 888, Betway, bwin, PokerStars and Betclic.

Another approved operator is Casino Solverde, which this week had its licence renewed. 

Casino Solverde can continue to offer online sports betting to players in Portugal, as well as a range of casino games.

The casino games available at Casino Solverde include slots, blackjack and French roulette.

Market growth

The news comes after SRIJ last month announced growth in Portugal’s online betting and gaming market in Q1.

Gross gaming revenue (GGR) in the first three months of 2023 reached €196.4m, up 24.8% on the same period last year.

Online sports betting GGR made up €85.7m of the total, while other online activities accounted for €110.7m.

Land-based GGR – which is generated by casinos and game machine rooms – totalled at €65.9m for the quarter, a decline of 1.7% since Q4 2022. However, this was up by 22.2% year-on-year.

Revenue for the first half was significantly higher than the MOP26.27bn generated in the previous year. However, the 2022 figures were impacted by the temporary closure of casinos in line with Covid-19 measures in Macau.

These restrictions were relaxed following major nationwide protests against the length and severity of the government’s “zero-Covid” policy.

Visitors from outside China no longer have to quarantine, while the number of flights into China are now uncapped. 

June revenue down month-on-month

Revenue in June amounted to MOP15.21bn, which was 513.9% ahead of last year, but down 2.3% from MOP13.57bn in May.

June marked since months since Macau announced the start of new concessions for gaming operators in the region.

Seven applicants applied for the new concessions. These included incumbents Galaxy Entertainment Group, Las Vegas Sands, MGM Resorts International, Melco Resorts, SJM Resorts and Wynn Resorts, plus Genting Malaysia.

The six operators already active in Macau were chosen, meaning Genting missed out.

The new concessions began on 1 January and will end on 31 December 2032.