Month: July 2023

This means that all licensed sports betting operators in the state will have to pay double the initial agreed tax of 10% on sports betting revenue from 2024 onward.

DeWine is set to sign the raise into the budget this week.

Read the full story on iGB North America.

Tabibian moved into the position in August 2021, having held various other roles during a nine-year stay with 888.

Prior to this, Tabibian was vice president for growth marketing and also spent time as online acquisition marketing director.

Tabibian also had spell as poker marketing director and head of poker affiliate and regional marketing at 888.

Before joining the group, he worked as a social and mobile games producer at Win and head of Oracle at Taldor. This came following two-and-a-half years as product team leader for 888.com during his first spell with the group.

Earlier in his career, he also spent time with Bezeq Online, ELTA and Teva Pharmaceuticals. 

“After an incredible nine-year journey filled with growth, achievements, learning, and unforgettable memories, the time has come for me to leave,” Tabibian said in a LinkedIn post.

“It has been my second ride in the world of 888, during which I had the privilege to lead 888poker marketing, the super talented 888 Growth department, and the unforgettable 888 B2C division.

“I want to thank the entire 888 family for the laughter, collaboration, and shared moments of triumph. It has been an honour to work alongside talented and dedicated individuals, and I feel incredibly lucky to share this journey with all of you.

“As I embark on a new adventure, I am filled with gratitude for the memories created and the lifelong connections made.”

Changing of the guard

Tabibian’s departure comes after it was announced in January that Itai Pazner was to leave his role as chief executive. 

This came in the wake of the group revealing failings in AML and KYC processes for customers in the Middle East. Non-executive chairman Lord Mendelsohn remains as interim executive chair while search for a permanent replacement continues.

Last July, 888 completed its acquisition of William Hill’s non-US assets from Caesars in a deal worth £1.95bn. Despite taking on £1.70bn in debt as a result of the purchase, 888 was able to perform in line with expectations in the 2022 financial year. 

Last month, Last month FS Group, an investment vehicle backed by Kenny Alexander, took a 6.57% stake in 888. 

FS Group took a 4.55% holding in the group. The remaining 2.02% holding was transferred by Shay Segev, who was Alexander’s successor before GVC’s name change to Entain.

Other individuals that also hold memberships interests in FS Group include Lee Feldman, the former chairman of GVC, Stephen Morana, Daniel Shribman and B Riley Principal.

Recently, it was also revealed that 888 had reached an agreement to sell its Latvian business to Paf Consulting in a deal worth up to €28.3m.

In his new role, Cavalié will be responsible for strengthening the FDJ employer brand and supporting the group’s international development.

Cavalié replaces Pierre-Marie Argouarc’h, who is stepping down after recently announcing his retirement.

An experienced executive, Cavalié spent his entire career in human resources and change management. He is currently director of human resources for Eoliance Group.

Prior to this, he worked in senior roles at DRH Group, Saupiquet, Rhodia, La Martiniquaise and Eilor.

LGBT+ partnership 

The appointment comes after FDJ last week entered a partnership with LGBT+ group l’Autre Cercle. This, the group said, forms part of its commitment to diversity and inclusion.

FDJ said it would work with l’Autre Cercle to continue and strengthen its policy on diversity and equal opportunities. 

This strategy includes professional equality, disability, intergeneration, social diversity and origins, affective orientation and gender identity.

The operator pledged to donate £50,000 to Prostate Cancer UK for any hole-in-one at the 14th at the Brabazon Golf Course. This was achieved by English professional golfer Matthew Baldwin during the course of the competition.

The company additionally committed to give £500 to the UK-based charity for every hole completed in two strokes under par or better, with another £500 donated for every drive to the green on a 10th hole.  

“It’s not only what we’ve raised, it’s letting people know they should get checked, bringing the awareness of Prostate Cancer,” said Betfred owner Fred Done. “I’m very pleased with that [£84k donation], but promoting it is as important as giving the money.”

Betfred extends deal with Playtech

In March, the operator announced it had expanded its partnership with gaming provider Playtech. The multi-year extension deal saw an increase in the number of the supplier’s betting terminals placed in Betfred’s retail spaces. The provider also agreed to feature horse and dog racing on the machines for the first time.

“This new deal demonstrates the importance of our ongoing relationship with market leader Playtech,” Betfred group chief operating officer Mark Stebbings said at the time.

“The importance of betting terminals to our retail offering continues to increase, becoming an increasingly essential gaming component for our customers and, therefore, a crucial part of the future of our company.

The DeepCI team will be immediately integrated into its operations, with co-founder Lewis Civin staying on as CEO to manage the business as an independent unit within EveryMatrix.

RB Capital acted as sell-side advisors to DeepCI for the sale.

EveryMatrix revealed today that the business, founded in 2020 by Civin alongside longstanding affiliate Riaan de Jager, has already achieved profitability.

DeepCI, which has a sector tracking partnership with iGBAffiliate.com, monitors tens of thousands of igaming affiliate sites daily to provide revenue-generating insights to a growing client list of affiliate programme-operating brands including Bet365, 888.com and Betway.

EveryMatrix CEO Ebbe Groes (pictured) revealed that the business was a longtime admirer of DeepCI and said that its data-driven tools would significantly benefit its customer base.

“Further, there are strong synergies with our similarly successful affiliate management product PartnerMatrix”, he added.

Deep CI’s Civin said that it had been a “thrill” launching and growing DeepCI into a must-have data-driven product for igaming brands and that the integration into EveryMatrix would accelerate its development pipeline.

“We are also working on an exciting roadmap of complementary tools that will bring even more value to customers.”

GMGI struck a deal to purchase MeridianBet in January of this year. The original deal was worth approximately $300.0m (£326.2m/€274.8m) and was due to close in the first half of 2023.

However, these terms have now been amended and agreed upon by GMGI and MeridianBet.

Under the restated purchase agreement, cash to be paid by GMGI at closing of the deal was reduced from $50.0m to $30.0m. A further $20.0m in non-contingent cash consideration will be due post-closing.

Stock consideration will be priced at $3 per share, currently an approximate 38% premium to GMGI’s 30-day VWAP closing price. Some 82,141,857 shares of common stock will be due at the initial closing.

GMGI said it is working to obtain the required financing and plans to file the required proxy statement to seek shareholder approval for the acquisition in Q3. 

The amended agreement means the deal now has a value of approximately $331.0m.

Furthermore, the acquisition is now expected to close later, in the third or fourth quarter of 2023. This is subject to certain conditions to closing including GMGI raising required funding and GMGI shareholder approval.

Improved performance

The amended deal comes after MeridianBet increased its year-to-date revenue considerably against last year’s revenue.

Based on year-to-date performance to 31 October 2023, revenue for the combined business post-acquisition is expected hit $139.0m. Adjusted EBITDA is forecast to reach $31.0m. 

“MeridianBet has increased its year-to-date revenues considerably against last year’s revenues,” GMGI chief executive Anthony Brian Goodman said. “MeridianBet’s impressive performance thus far in 2023 gives us even greater confidence in the value of this acquisition. 

“We expect it to bring significant benefits to GMGI from both a financial and operational standpoint. Our management team is confident it will drive long-term value for all our stakeholders.”

Entering the B2C market

Should the deal proceed as expected, the MeridianBet group of companies will become wholly owned subsidiaries of GMGI.

The deal would provide GMGI with access to regulated B2C markets, including in Eastern Europe, while also creating a combined group of profitable and cash-positive companies.

Following the acquisition, GMGI said it expects to be positioned for growth, both organically and through further acquisitions. It also noted synergetic growth opportunities within core markets via the MeridianBet brand and other GMGI B2C brands and market entries.

Headquartered in Malta, MeridianBet operates in a number of markets across Europe, Africa and Latin America.

Wider growth plans

The original agreement came shortly after GMGI acquired the remaining 20% interest in UK-based prize draws brand RKings.

The developer acquired the majority of RKings in November 2021 and said the deal had a positive impact on its performance during Q1 and Q2 of 2022.

In the weeks that followed the MeridianBet announcement, GMGI also reported its full-year results for the 2022 financial year. Revenue was 218.6% higher at $36.0m, while non-GAAP adjusted EBITDA jumped 45.8% to $3.5m.

Speaking at the time, Goodman said its M&A activity would enable the business to grow its global operations, with a particular focus on North America.

“This will significantly advance GMGI’s global footprint with numerous B2B and B2C product offerings on most continents and, we believe, create the opportunity for us to participate in online gambling markets in the US and Canada,” Goodman said.

IG Group did not disclose any further details about the news, nor did it say when Felix would return.

Chief financial officer Charlie Rozes will assume Felix’s day-to-day responsibilities as acting CEO during her absence. Rozes will combine this with his current role.

The financial trading business said this would help provide “continuity” as it executes its strategy.

The news comes ahead of IG Group publishing its 2023 financial year results on 20 July.

In March, IG Group posted a drop in Q3 revenue but did report growth from operations in high potential markets.

Total revenue for the quarter declined by 7% to £239.3m (€278.8m/$303.6m), compared to £257.0m in 2022.

Revenue from core markets fell 18% to £182.6m, which IG Group said reflected lower over-the-counter derivatives revenue in the period. 

However, high potential market revenue jumped 60% to £56.7m. IG Group noted strong growth in the US and in Europe with exchange-traded derivatives business.

Under the deal, FDJ will have access to cash tables, poker tournaments and Twister Poker, Playtech’s flagship poker game.

FDJ will also join Playtech’s Ipoker.eu network of operators across a number of European markets. 

“Playtech has a great track record as a poker network and content provider in Europe’s regulated markets,” FDJ’s sports business unit chief executive Richard Courtois said.

“The company’s involvement in our selection process demonstrated a clear commitment and deep understanding of our long-term strategy. 

“Thanks to Playtech, we are pleased to offer our players a new range of games. This move enables FDJ to complete its presence in the French market open to competition. This is based on a business model that combines performance and responsibility to keep gaming fun.”

Playtech’s vice-president of interactive gaming, Marat Koss, added: “We are very proud that FDJ has chosen Playtech as its partner. The addition of FDJ to our Ipoker.eu is a vital step in the network’s expansion as the buoyancy of the French online gambling market continues.

“We look forward to a long and successful partnership with FDJ.”

French online gambling growth

The deal comes after French regulator l’Autorité Nationale des Jeux (ANJ) reported record gross gaming revenue (GGR) in 2022. Annual GGR for the 12 months to 31 December 2022 amounted to €12.90bn (£11.08bn/$14.04bn).

France’s online gaming market GGR increased by 0.8% to €2.18bn. Of this, 64% was from sports betting, 20% online poker and 16% from bets placed on horse racing.

Online poker performed best for all online games in 2022 in terms of GGR, hitting €442m – up from €421m in 2021.

For online sports betting, GGR hit €1.38bn, another record. Stakes of €8.3% here also represented another record.

Lottery, meanwhile, generated €5.6bn in 2022, representing a 10.2% rise in revenue from 2021.

For casinos, GGR was €2.5bn during the year, up from €1.08bn in 2021 and just edging up on €2.4bn brought in pre-pandemic, in 2019.

On 1 July, the Netherlands implemented a ban on gambling ads through most media channels including on television, in radio and in print.

The new rules also prohibit advertising in public places. This will extend to billboards, bus shelters and cafes, as well as within gaming venues themselves such as casinos and slot parlours.

Gambling sponsorship of events and clubs will also be halted under a phased rollout. From 1 July 2024 sponsoring events and programmes will be prohibited, while sponsorship of venues and clubs will end from 2025. The new rules also impose new restrictions on affiliate advertising.

However, targeted advertising will be permitted in some contexts. This means that ads within on-demand streaming services, social media, through direct mail and other online gaming environments will be permitted.

The regulator has made clear that the goal will be for 95% of those viewing such ads to be over the age of 24. There remains a degree of ambiguity about how exactly this will be defined, monitored and enforced.

Kansspelautoriteit (KSA) has said that it will only issue “limited” guidance for the ban, in the hope that the operators will take the lead on this issue.    

KSA’s approach to enforcement

The body said if the new rules need further clarification, it would let the sector know. However, the regulator warned licence holders not to push the boundaries of the law – a repeat of a similar warning issued by KSA chairman René Jansen last month.  

The regulator has previously made clear that it would be careful in how it approached enforcing the new rules. This led to a number of anti-gambling politicians to send questions to the minister responsible for the gambling brief, Franc Weerwind, querying whether this represented the wisest approach.

However, the minister defended Jansen’s remarks, arguing that communication with licence holders could often be more effective in setting behaviour than fines.

Whatever the case, the regulator said it would be watching how operators respond to the restrictions: “Now that the ban is in force, KSA is actively monitoring how the new advertising rules and obligations for licence holders are being applied in practice,” said the regulator.

New advertising code

In line with the imposition of the advertising ban, the Dutch gambling industry has introduced a new version of its self-regulation guidelines, the Advertising Code for Online Games of Chance.

Several months after the launch of the Dutch regulated market, gaming trade bodies VNLOK and NOGA introduced the code after the Consumers Association withdrew its support for the guidelines.

Alongside other measures, the code included requirements on how inducements should be advertised, a 30-second time limit on the length of adverts and a limit of three gambling ads per advertising session.

Casino Nieuws outlined that the new advertising code includes a number of restrictive measures on top of the new rules. These are that operators:

Do not include language that encourages irresponsible playInform players about responsible playLimit the use of welcome bonuses

The road to the gambling ban

The Netherlands launched its regulated gambling market on 1 October 2021. The months following legalisation saw gambling operators spend a great deal on advertising.

Weerwind’s March 2022 announcement of stricter gambling ad rules originates in concern about the effects of the proliferation of ads on the Dutch public.

The minister committed to this path after the Dutch parliament approved a motion calling for a total gambling advertising ban, introduced by Socialist Party MP Michiel van Nispen.

In July 2022, the minister released a more detailed plan of what the ban would look like in practice.

While the minister’s original announcement that the ban would be implemented on 1 January 2023, a lack of clarity on some of the provisions of the ban saw the government push the date back several times before settling on the July date.

The news came as Belgium also moved to prohibit all forms of gambling advertising in a ban in some ways more total than the Dutch case.

Under the partnership, Victoria police’s Sporting Integrity Intelligence Unit (SIIU) will receive real-time alerts from ESIC on suspicious betting activity.

This, Victoria police said, would allow its detectives to commence an investigation as soon as possible.

The Victorian Crimes Act was also amended in 2013 to add four criminal offences directly related to corrupting the betting outcome of an event. The type of sporting event is not specified in these offences, but instead refer to the corruption of a betting outcome.

The SIIU conducted the first Australian law enforcement investigation into match-fixing in esports in 2019. Five men were charged with offences including engaging in conduct that corrupts or would corrupt a betting outcome and using corrupt conduct information for betting purposes.

Such offences are subject to maximum penalties of 10 years’ imprisonment.

Vulnerable targets in esports

Assistant commissioner for intelligence and covert support command, Chris Gilbert, said that given the demographic of esports, players can be potentially more vulnerable targets than those involved in traditional sports.

“They are often young adults who could be more susceptible to corrupt approaches by criminal entities due to minimal prize money and a lack of focus on integrity and education by game developers,” Gilbert said.

“Victoria police will continue to target the infiltration of esports by any potential offenders, including by organised crime syndicates.

“Alongside this agreement with ESIC, we’ve developed strong relationships with a number of esports stakeholders and wagering operators and we’ll continue to work together to target any suspicious activity.

“It’s important that people understand these are significant criminal offences with substantial penalties and we will take any reports of suspicious activity seriously.”

ESIC’s director of global strategy, Stephen Hanna, added: “Collaboration between law enforcement agencies and ESIC is essential to ensuring a fair and safe environment for esports competitors and fans. 

“Esports is a global industry that requires a global response to maintain integrity. By working together with law enforcement agencies, we can better identify and investigate suspicious betting activity and protect the integrity of esports competitions.

“We look forward to continuing to collaborate with Victoria police and other law enforcement agencies to safeguard esports.”