Month: November 2023

Today, one of the most promising uses of AI in sports betting is bettors’ ability to use the technology to place bets more strategically and attempt to minimise their losses.

Apps like BettorTakes and Juice Reel aim to boost users’ performance through comprehensive analytics of their past betting behaviours. As BettorTakes CEO Steve Rubenfaer described in an interview with DataArt this year, the app “show[s] you your patterns, biases and things you might not know about yourself”.

With these apps, AI can be used to assess bettors’ gambling history, in addition to player or team stats. AI can then present digestible, comprehensible suggestions for optimised bets.

Reducing the risks

Industry leaders are cognisant of the possible risks that come with making gambling more engaging and seamless than ever before. Earlier this year, I had a fascinating conversation with Voxbet’s managing director Jonathan Power and Voxbet board member and investor Ian Marmion.

Voxbet offers users real-time, hands-free voice betting, which is powered by AI. This gives gamers a chance to place their bets more easily than ever.

I was curious to know how Voxbet’s concept jives with safer gambling laws and how the company also plans to implement a “location check”, ensuring that bettors are legally allowed to place their bets. This is based on their GPS data.

Another concern is the vast amount of sensitive data that sportsbooks have access to. This is particularly concerning as they begin using AI at greater frequencies.

Last year, I chatted with US Integrity’s Matthew Holt to discuss his company’s experience of collaborating with sportsbooks. I wanted to see how they managed user data, privacy and security risks. As Holt explained, online betting has become significantly safer in the last several years.

Before the US began legalising sports betting in waves, many European countries did not have consistent or reliable systems in place for transmitting user data.

Responsible gaming and AI

Holt clarified that his company does not have access to bettors’ personal information. However, it’s still a very complex process to sift through the data US Integrity works with.

“We don’t pull in any personal information,” Holt told us. Instead, they have account IDs, but little other bettor related information. “We intentionally do that, because we don’t want to store that type of data.

“The second you do, your cybersecurity risk and insurances go through the roof.”

In addition to making betting more engaging, stickier for new and old audiences and easier than ever to place, it’s paramount to mitigate the potential negative effect on vulnerable users.

For example, the very same tools that are being used by BettorTakes and JuiceReel to scrutinise player behaviour for optimal bets can also be used to flag unusual or potentially harmful betting patterns.

In addition to putting up safeguards to minimise the risk of excessive gambling, these tools can also be deployed to flag possible events of fraud.

Human judgment can’t be beaten

In the world of sports betting, it’s all about balance. While AI offers incredible possibilities for the sports betting industry, it should be perceived as more of an innovative complement to human expertise – not a replacement.

No algorithm can match human judgment, intuition, and experience. By integrating AI to support human insights, we can make the most of both technology and individuality in sports betting.

As AI continues to offer new, engaging and unprecedented tools for the sports betting industry, staying up-to-date with evolving technologies is essential to maintaining an edge on the competition.

Sportsbooks need to focus on leveraging sophisticated technical solutions, managing data and harnessing AI integrations while keeping bettors’ sensitive information safe and secure.

Those with technological prowess can develop sophisticated AI algorithms to analyse vast amounts of data. This can provide real-time insights into sports events and trends. Moreover, technological proficiency ensures the secure and compliant integration of AI systems. In turn, this safeguards sensitive users’ data and ensures regulatory adherence in the highly regulated sports betting landscape.

The importance of technological expertise

Change is coming to sports betting – are you ready for it? In my two-part exploration of this landscape, I discussed some of the greatest potentials and challenges to come as AI continues to improve.

While it’s possible that AI can offer enhanced content for sportsbooks and users alike, it’s also imperative to ensure that we remain vigilant about adhering to industry compliance. Moreover, while AI’s powers are remarkable, they are no true match for the unique character of human judgment, which cannot be replaced by the use of these tools.

As the sports betting industry continues to embrace AI, technological expertise is essential in order to navigate this complex landscape.

The current status of the esports market will no doubt be a key talking point at ICE 2024. We all saw esports surge during Covid, with the likes of virtuals, Belarusian football and Armenian ping pong proving to be the mainstay in live content – alongside FIFA, Dota2 and League of Legends.  

That initial surge two years ago has never quite recaptured its momentum and it disappeared from the mainstream, with a big dip in 2023 and, at best, a plateaued market.  

This year, therefore, has been all about the uppers (Rivalry), the downers (Entain and Esports Entertainment Group) and a big fight over data (Bayes and Grid).  

Esports: the downers ahead of ICE 2024

Let’s start with the downers. Entain has been up to plenty… and also not a lot. No stranger to flashing the cash, Entain arguably put plenty of eggs into one basket when they acquired Unikrn, the industry’s first dedicated esports operator back in 2021.  

Entain and Unikrn

With ambitious plans, Entain then relaunched the brand in December 2022, with a target set for global domination. 

Nothing has happened since then and, less than 12 months after the relaunch, Entain has seemingly applied the brakes to this effort.  

In a recent statement to iGB, Entain says that it will be scaling back direct-to-consumer operations within Unikrn.  

“This is to ensure that our business is structured as effectively as possible and so that we can best deliver on our strategy and growth plans,” Entain says. Conclusion: interesting indeed.  

There might be some excitement on the way, however. In June Entain acquired Tiidal Gaming NZ, who own esports betting developer Sportsflare, for £7.9m. Nothing has been announced since then, but they are definitely one to watch as there is no doubt some sort of plan in the works.  

Esports Entertainment Group

Next up is Esports Entertainment Group (EEG), another who seems to have bet it all on black. In its Q1 2023 report released this week, the company posted a staggering 71.9% fall in revenue to $2.7m, which makes for dismal reading.   

Arguably, the company has been in trouble since May 2022, when it admitted “doubt” it could stay in business for another year.

But stay another year it did and, following its previous CEO, Grant Johnson, being given the boot, this year has been all about the new CEO, Alex Igelman. 

Like any brave leader, he has given the company a radical revamp throughout 2023.  

First up was the sale of its Spanish gaming licence for just under £1.0m, as well as shedding its Bethard business for £8.3m.  

Following on – and with an eye for the esports content market – EEG snapped up Esports content producer Drafted.gg in November.  

Just like with EPSN BET’s launch, we think we’ll see something similar one day with an esports-style focus, offering a fully closed entertainment platform spanning betting and content.  

With its net loss widening despite significant cost savings, we haven’t seen anything change just yet. Igelman remains upbeat however and we might just see a 2024 rebound.  

Esports: the uppers ahead of ICE 2024

Onto this year’s success story – specialised esports betting operator Rivalry. Set to be a key fixture at ICE 2024’s esports conference, we’ll be hearing plenty more about this brand in 2024.

This super-cool brand has definitely picked up the Entain and EEG slack and surged ahead. That’s certainly the opinion of Pinnacle, who were one of the main investors in its 2023 £5.9m financing round.  

The Toronto-based operator has smashed every revenue expectation so far this year, while its unique positioning on the market makes it the esports brand for all the Gen Z and millennial users out there.  

Catering to this audience is clearly bearing fruit – with 80% of its customer based claimed to be under 30. 

By engaging its millennial and Gen Z audiences with its “down with the kids” approach, its campaigns have been crammed with internet-speak, memes and sought-after influencers.  

Its move into casino, with its Casino.exe mobile app launched in Ontario in March, should prove to be a strong diversification.  

This seems like a very good idea given its “unique learnings regarding betting behaviours” about Gen Z.  

Translated into plain English, they likely mean that Gen Z doesn’t have a lot of money to spend.  

Esports: the data battle

Last up is the big fight going on at the back end. This one’s all about data and between the two big-name suppliers Bayes and Grid.  

These are the only two providers on the B2B side that offer original source data. A bit like with Genius Sports and Sportradar, but with esports. 

So, what’s the issue? In short, we have third-party suppliers offering operators non-official data. 

This is easy to offer – as esports tournaments, such as Blast, or ESL (Esports League), are open source, one can simply log on and offer data directly. 

The demand for third-party data is clearly there, as it’s much cheaper for tier two or tier three operators competing with very low margins.  

But using this data is not legitimate and, in the eyes of the courts (most of the time), not legal.   

The legal fight continues, such as the one that’s been covered between Bayes and Panda.  

The market is yet to find a proper equilibrium and the ongoing fight over official data provision will no doubt continue.  

The big question for this year and indeed the next is actually defining esports data and who has the right to use it.  

Until then, expect plenty more litigation – and likely a big barrier to further market growth.  

GR8 Tech elevates igaming with GR8 Sportsbook

GR8 Tech celebrated a standout year with the launch of GR8 Sportsbook offer, a major development in the igaming industry. This innovative sportsbook platform features an extensive selection of sports, esports and 24/7 fantasy sports, providing an unparalleled non-stop betting experience. Boasting the capacity to handle over 25,000 daily events, managed by an in-house trading team, it ensures a dynamic and engaging betting environment. Discover the future of online betting with GR8 Sportsbook!

It’s been a big year for the casino and gaming sector, with plenty of talking points for ICE 2024. Here we delve into some of the biggest US news of the year.

Tribal battles over casino and gaming

This year proved to be a big fight for sovereignty for tribal nations in the United States (US).

Arguably, tribal nations in the US have dodged a bullet so far when it comes to attacks on their sovereignty. As a result, they should feel buoyed by recent court rulings. 

However, with state governments wanting to take more control over Indian country and ongoing fears about the courts, the concerns aren’t going away for tribal casino and gaming.

This certainly comes with tribal gaming in excellent health. The National Indian Gaming Commission’s annual report shows revenues in 2022 rose 4.9% to $40. That $1.9bn year-on-year gain is the highest ever recorded.

However, despite that success, tribal leaders remain on edge as politicians and some commercial gaming interests look to cut into that share. This can happen through either the courts or state governments.

Florida’s Seminole tribe – a big win

A major casino and gaming win has also taken place in Florida. The Seminole tribe and the State of Florida have agreed on statewide mobile sports wagering, effectively creating a tribal monopoly.

Florida certainly has been one of the standout stories from this year. This is after a lengthy legal battle which finally saw the US Supreme Court denying West Flagler’s motion to stay in Florida. Following the decision, the way had been cleared for the Seminoles to launch.

In what has been hailed as an historic victory, the gaming compact was initially approved over two years ago. This screeched to a halt in December 2021 when the District of Colombia ruled the Seminole tribe’s compact infringed upon the Indian Gaming Regulatory Act (IGRA). 

This ruling came after a suit was filed by West Flagler and Bonita-Fort Myers. The suit challenged whether offering online sports betting state-wide through servers on tribal land, counted as betting on tribal land.

However, the DC court ruling was reversed in June 2023 by the DC District Court of Appeals. This once again gave the Seminoles free reign in Florida again.

This led to a back-and forth fight between West Flagler and various legal entities. In August, West Flagler filed for a rehearing in the case it lost against Debra Haaland, secretary of the interior. 

This was finally settled, when the US Supreme Court denied West Flagler’s motion to stay in Florida. This then cleared the way for the Seminoles to launch.

Casino and gaming breaks all records in Las Vegas

Never has “Viva Las Vegas” rung truer than this year. With much celebration, US commercial gambling now remains on course for a record year. Revenue of $16.17bn was posted during Q3 2023, much of it attributable to casino.

In total, this means that the figures released by the American Gaming Association (AGA) for the three months to 30 September show US gambling revenue is up 6.1% year-on-year.

This was the 11th straight quarter of annual revenue growth and the best third quarter on record for casino and gaming.

Nevada in particular was a major standout, where land-based gaming revenue grew 2.9% year-on-year, reaching $3.88bn.

The surge was propelled by a record-breaking recent quarter (Q3) for Strip casinos ($741.2m). The period also saw the highest baccarat handle in Nevada state history: $458.4m, a 50.1% increase year-on-year.

Not to be outdone, New Jersey’s Atlantic City also saw year-to-date gambling revenue exceed $2.4 bn in October, its highest to date.  

Casino and gaming in the US is expected to continue on its upward trajectory throughout 2024 and, if visits to Las Vegas are anything to go by, we’re certainly on an upward trend.

July saw the Las Vegas Convention and Visitors Authority (LVCVA) releasing preliminary estimates showing the city attracted 3.41 million international visitors in 2022.

This represents a 162% gain over the 1.3 million in 2021 and 1.14 million recorded in 2020.

While not yet back to pre-Covid levels, we’ve seen it regain 60% of the 5.6 million international visitors that visited in 2019 prior to the pandemic.

It’s certainly also a significant improvement on 2021, when only 23% of Las Vegas visitors came from overseas.

GR8 Tech elevates igaming with GR8 Sportsbook

GR8 Tech celebrated a standout year with the launch of GR8 Sportsbook offer, a major development in the igaming industry. This innovative sportsbook platform features an extensive selection of sports, esports and 24/7 fantasy sports, providing an unparalleled non-stop betting experience. Boasting the capacity to handle over 25,000 daily events, managed by an in-house trading team, it ensures a dynamic and engaging betting environment. Discover the future of online betting with GR8 Sportsbook!

The October total exceeds the previous record of $19.2m set in Wyoming in September this year. It was also 23.4% higher than October of last year.

Gross gaming revenue for the month amounted to $2.3m, another new record for the state. This is up 15.0% from last year and 53.3% more than $1.5m in September 2023.

There was also an all-time monthly high for taxable gaming revenue of $1.4m. This increased 21.7% from October 2022 and 172.6% from $517,523 in September.

Wyoming players won a total of $19.0m from online sports betting, while tax hit a record $141,087.

DraftKings led the market with $1.4m in revenue from $12.5m. FanDuel placed second in Wyoming with revenue of $402,961 and a $4.9m handle.

Meanwhile, BetMGM posted $378,344 in revenue from $3.5m in online sports bets. Caesars rounded off the market with revenue of $73,028 and a $378,622.

Fanatics set to join Wyoming market

Fanatics Betting and Gaming (FBG) will soon join the pack in Wyoming after taking control of PointsBet US in the state. Ownership of PointsBet Wyoming LLC has been transferred to the FBG division of sports retail giant Fanatics.

The FBG arm of Fanatics struck a deal to acquire the US operations of Fanatics earlier this year. The purchase price of $225.0m (£186.3m/€214.9m) was agreed in June 2023 and PointsBet shareholders approved the deal shortly thereafter.

Transfer of additional US state operations to FBG will take place as approvals are obtained in each state. PointsBet says subsequent completion in this market is tracking as planned.

FBG this week also rolled out its online sportsbook in Virginia, marking the latest phase of its acquisition of PointsBet US.

Data published today (23 November) by ATG shows channelisation rates for regulated online gambling in Q3 was between 70% and 82%. This rate refers to the igaming market as a whole but fluctuates for different gambling types.

Online sports betting had a channelisation rate of 88% in Q3, whereas online casino was lower at 74%. ATG added that channelisation for both sectors, as well as the entire market, has been decreasing steadily since 2019 when legal betting launched in Sweden.

These rates are based on the assumption spend per visit is 10 times higher with unlicensed sites than licensed. When this assumption is raised to 20 times higher, the channelisation rates fall further.

For the entire market with the higher spend assumption, channelisation rate is 70%. Sports betting rate is 78% but online casino is much lower at 59%. This suggests almost half of online casino spend in Sweden is with illegal gambling sites.

The data was also used to estimate the value of the unlicensed market. ATG said the illegal market is worth between SEK3.4bn (£258.4m/€297.4m/$324.6m) and SEK6.7bn annually.

Where is illegal Swedish gambling taking place?

ATG said two groups, Infiniza Limited and North Point Management Ltd, account for 60% of illegal gambling visitor traffic in Q3. 

It also found 18 of the 20 most visited sites in Q3 had the same game providers as licensed operators. Perhaps of more concern to regulators is that none of the most visited sites were on the Spelinspektionen’s banned list.

The most popular site was Unlimitcasino.com from Infiniza, which drew 150,890 visits in Q3. Second was Refuelcasino.com, also run by Infiniza, with 122,135 visits, then Quick.bet from North Point on 108,290.

ATG went on to say none of these sites offer direct deposits from a Swedish bank account via BankID. However, in Q2, six sites presented visitors with such depositing options.

As for the total number of visitors, this was estimated at just over one million in Q3. This was lower than a market peak of around 1.5 million in Q2 after six consecutive quarters of growth. 

In contrast, illegal Swedish gambling site visits were fewer than 100,000 when the legal market launched in Q1 of 2019.

ATG vows to take action on illegal Swedish gambling

ATG CEO Hasse Lord Skarplöth voiced his concerns over illegal Swedish gambling figures. He said ATG will do what it can to tackle the issue moving forward.

“The results of our quarterly surveys are alarming and indicate that a significant percentage of problem gamblers in Sweden are linked to unlicensed gambling sites,” Skarplöth said. 

“We want people to feel good about their gaming. And we work for a gaming market that will do better tomorrow than it does today. Therefore, ATG will do what we can to help ensure that the fight against the unlicensed gambling companies continues day by day, month by month.”

Government says potential tax increase can reduce illegal gambling

Sweden’s government (Regeringen) in September proposed higher tax rates in the country from 18% to 22% of gross gaming revenue. It said this could help address channelisation concerns.

If approved, the tax rise will come into effect in Sweden from 1 July 2024. Regeringen says such a move could bring in an additional SEK540.0m in additional tax revenue each year.

Regeringen adds that the decision to raise tax is based on the belief that the market should have stabilised since reregulation in 2019.

In addition, Regeringen highlighted concerns over channelisation in Sweden and the impact of this rate on the market. Regeringen says a new tax rate in excess of 20% will help achieve channelisation of at least 90%.

ATG posts Q3 growth in Q3 despite economy concerns

The report comes after ATG recently reported a year-on-year increase in revenue and net profit in Q3. This was despite it saying that concerns over the wider economy continued to “cloud” its operating environment.

ATG said group revenue during the three months to 30 September amounted to SEK1.35bn. This was 4.6% higher than SEK1.29bn in Q3 last year and the second highest Q3 revenue total on record.

This came despite ATG having to contend with wider economic issues, which have continued to impact the business throughout 2023. These include increased prices, interest rates and the recession, with these all hitting customers’ wallets.

Skarplöth said these concerns remain for the business, but the group has continued to grow regardless. He added that ATG is on track to post full-year results in line with last year.

“Following a decline in the first quarter impacted by the economy and the pandemic effects of the preceding year, we noted continued growth in the third quarter,” Skarplöth said. “We are increasing revenue and cutting our costs. 

“This is a result of continued customer focus, strict prioritisations, replacing consultants and cost control. However continued concerns cloud our operating environment. High prices, interest rates and the recession are all impacting our customers’ entertainment wallets.

“It is gratifying that the number of customers and customer satisfaction remain at stable levels. We retain our position as the largest betting company in the commercial licence market.”

ATG reports growth across all segments

Breaking down Q3, ATG posted year-on-year growth across all business segments. Horse betting accounted for SEK1.02bn of all revenue, up 1.8% from SEK1.00bn last year.

Casino games revenue increased 24.3% to become the second highest source of revenue at SEK169m. The remaining SEK159 came from sports betting, up 5.3% from Q3 in 2022.

ATG also said that SEK1.20bn of all revenue was generated via digital channels. Just SEK154m of group revenue in Q3 came from its retail stores across Sweden and Denmark.

On the subject of geographical performance, Swedish operations generated SEK1.26bn in Q3 revenue, up 3.7%. Denmark’s share at stood at SEK92m, a rise of 18.0% year-on-year.

Rising costs fail to stunt net profit growth

Turning to expenses and ATG said spending was higher in almost all areas. Gambling tax was up to SEK278m but its main outgoing, listed as “other expenses” fell 6.6% to SEK548m.

After including SEK9m in profit from financial items, this left a pre-tax profit of SEK506m, up 12.4% from last year. ATG paid SEK13m in tax and noted an SEK1m positive impact of foreign translation. This left a net profit of SEK494m, an increase of 14.6% from 2022.

The group also said EBITDA for Q3 was 12.1% higher at SEK576m.

Year-to-date: ATG operating in line with previous year

Looking at year-to-date performance, revenue in the nine months to 30 September reached SEK4.44bn. This was just 1.1% lower than in the previous year despite the economic issues referenced by Skarplöth.

Horse betting revenue was 4.7% lower at SEK2.88bn. However, this was partially offset by growth elsewhere. Sports betting revenue climbed 11.1% to SEK532m and casino games revenue 22.7% to SEK471m.

ATG was able to reduce a number of costs including gambling tax and other expenses. Only personnel expenses and depreciation, amortisation and impairment costs were higher year-on-year.

Finance profit reached SEK29m, resulting in a pre-tax profit of SEK1.27bn, up 1.4%. Income tax payments totalled SEK39m and negative foreign translation SEK1m. As such, net profit for the period was SEK1.23bn, an increase of 1.2%.

In addition, EBITDA for the nine months was 0.6% higher at SEK1.48bn.

“ATG’s assignment is to create long-term prospects for our owners, the Swedish Trotting Association and the Swedish Jockey Club and, by extension, to the entire Swedish horse industry,” Skarplöth said.

“With the outlook for the economy uncertain, the path forward to safeguard our assignment comprises continued focus on long-term sustainable revenue, replacing consultants and cost control.”

The claim relates to the freezing of gaming duty bands outlined in Chancellor of the Exchequer Jeremy Hunt’s autumn statement. In a statement, the BGC said that those within the land-based casino sector had hoped the bands would rise with inflation, after being frozen in March.

The BGC said the freeze in gaming duty bands effectively creates a £25m tax increase for casinos over the next five years. Urging a rethink from Hunt, the BGC said a freeze in duty bands would help a sector that is struggling with rising wages and high inflation.

Michael Dugher, chief executive of the BGC, posited that the “stealth tax” has the potential to slow recovery and weaken future growth.

“Removing it would have provided a welcome boost for the land-based casino sector at a crucial time,” he said. “Instead, the decision to maintain the status quo represents a missed opportunity for companies ready and able to generate jobs and investment across the country.”

Casinos awaiting positive impact of gambling reform

The BGC noted that casinos contribute £300m annually in taxes. Across the entire economy, the sector provides an estimated £800m a year in gross value.

However, casinos have been hit hard by challenges such as the cost-of-living crisis. The BGC noted that four casinos have closed in recent months, while the sector employs 25% fewer workers than just four years ago. One in four casinos have closed since 2005, with just 117 remaining across the country.

The BGC has broadly backed the government’s gambling white paper, notably in relation to casino reform. The white paper includes proposals on affordability checks, sports betting and machine numbers.

“Right now, casinos, which play such a vital role in the tourism and hospitality sector, are waiting for the modest but mission critical policy changes announced in the white paper,” Dugher added.

“It seems short-sighted to maintain this stealth tax while failing to make changes that will allow casinos to hire and grow. The BGC urges a re-think so gaming duty bands can be moved with inflation at the next opportunity.”

Government could unify remote gambling tax

In further news from the autumn statement, the chancellor said the government will soon consult on bringing remote gambling under one tax, as opposed to the current three-tax structure.

Chancellor Hunt’s plan is that the government will consult “shortly” on proposals to change the structure of remote gambling taxation.

It defines remote gambling as being “gambling offered over the internet, telephone, TV and radio”.

The consultation would discuss getting rid of the three-tax structure, which is made up of remote gaming duty, general betting duty and pool betting duty.

The five-year partnership will begin in January with ARC and RMG jointly offering British and Irish racing content. This will be promoted and commercialised across international tote and pari-mutuel markets as a single service.

Racing content will be offered under Great British & Irish Racing (GBI Racing). This served a similar function between 2010 and 2018.  

RMG represents 34 British racecourses including Jockey Club-operated racecourses, York and Goodwood. ARC, meanwhile, works with 16 British racecourses and several independent racecourses such as Ascot, Chester and Newbury.

Meanwhile, a separate service for various fixed-odds territories will broadcast coverage from British racecourses. This will also cover ARC’s Premier Greyhound Racing service. Broadcast services for tote and fixed-odds channels will be provided by Vermantia, ARC’s production business. 

Efficient platform for British and Irish racing

“This partnership will offer British racing a unified export service, streamlined for our various international partners,” ARC managing director of media and international, Brendan Parnell, said.

“Working with our colleagues at RMG, we look forward to offering and developing this efficient international platform to distribute and promote the sport around the world.”

RMG CEO Martin Stevenson added: “I am delighted that British racing, and Irish racing via the tote service, will be sold and promoted as one package. This will drive further value for our racecourses and provide a better product for our customers across the world. 

“I look forward to working with Brendan and his team in creating this leading international service. I would also very much like to thank SIS for the work they have done for our racecourses in this area over the last five years.”  

The operator was sanctioned in Queensland in December last year over a series of failings. Star was fined AU$100.0m (£52.3m/€60.2m/US$65.6m) and was told its licence would be suspended.

Sanctions came after Star was found “unsuitable” to hold a licence in Queensland following an inquiry into operations at Star Gold Coast and Treasury Brisbane. 

Star was given 12 months to resolve the issues and bring Queensland operations in line with the demands of regulators. The deadline for this was due to expire on 1 December but has now been pushed back six months.

This means Star has until 31 May 2024 to satisfy the demands of Queensland authorities. Star said this comes after it submitted a draft remediation plan over how it will address issues. It has committed to approximately 640 milestones across 15 workstreams, to be implemented over a multi-year period.

Queensland’s attorney-general, Yvette D’Ath MP, approved the remediation plan and the extension. It was also agreed that a special manager appointed to oversee changes at the Gold Coast and Brisbane casinos will remain in place for an additional 12 months to 8 December 2024.

In addition, Star must update the Queensland government ahead of the May deadline on the progress of its remediation plan. 

Star CEO: We must regain trust and confidence

Robbie Cooke, CEO and managing director of Star, welcomed the news of the extension. He said the operator is committed to addressing the failings and regaining trust in Queensland.

“We’re pleased to have our remediation plan approved in Queensland,” Cooke said. “It’s an important step on our path to returning to suitability in Queensland and will track and hold us accountable throughout the multi-year programme we are committed to delivering.

“At the same time, we are fully aware that successful implementation of the remediation plan will require the utmost rigour and discipline. We need to regain the trust and confidence of all our stakeholders and communities and continue to have an unwavering focus on transformation.

“That comes from a clear understanding that holding casino licences is a privilege, not a right.”

What did Star do wrong?

Many failings in Queensland were broadly aligned with those uncovered by Adam Bell SC’s report into Star in New South Wales (NSW), where the operator was also found unsuitable to hold a licence. 

Highlighted issues included Star’s “concerted effort” to deliberately mislead banks and regulators on the purpose of China UnionPay transactions. This, authorities said, was in contravention of Chinese capital flight laws.

Star also sought out individuals linked to criminal organisations and encouraged them to gamble against the advice of police commissioners.

Investigators also uncovered social responsibility failings and deficiencies with anti-money laundering and combating the financing of terrorism practices. In addition, Star was rapped over its historic dealings with junket operators.

The operator is due to pay the final part of its $100.0m fine in the state by the end of 2023. This was split into three parts, with earlier payments of $30.0m made on 31 March and 30 June of this year. The remaining $40.0m is payable by 31 December 2023.

Star noted the extended period to address these issues only applies in Queensland. It said it continues to engage with the NSW Independent Casino Commission in relation to its Sydney operations and will make a separate announcement in relation to the position in the state.

The New South Wales sanctions also include a mooted licence suspension and a $100.0m fine.

What else has happened at Star?

Shortly after the Queensland sanctions were announced, Ben Heap announced he would step down as Star chair. This was after he was named among several current and former directors and former executives facing civil proceedings from the Australian Securities and Investments Commission (ASIC).

A total of 11 current and former directors and executives were named in the case, including ex-chair John O’Neill and former CEO and managing director Matthias Bekier. Richard Sheppard, Gerard Bradley, Sally Pitkin and Zlatko Todorcevski, all of whom are no longer with Star, were also flagged.

Moving into 2023, Star in April announced it would engage in new cost and restructuring initiatives. This came as it warned it was experiencing “significant” and “rapid” deterioration in operating conditions. At the time, Star said earnings performance was at unprecedented low levels, excluding the Covid-19 period. 

This was highlighted further with the group posted an AU$2.40bn net loss for its full-year in August. Star said this was due to a writedown in the value of its casinos in Sydney, Gold Coast and Brisbane.

Some $2.8bn in outgoings were labelled “significant items” for the year to 30 June 2023.

This consisted of an AU$2.2bn non-cash impairment of the Sydney, Gold Coast and Treasury Brisbane goodwill and property assets. There were also regulatory and legal costs of AU$595m, debt restructuring costs of AU$54m and redundancy costs of AU$16m.

Building for the future

As for its wider plans, Star is undertaking an organisational restructure to create property-based operational business units. These will cover Star locations in Brisbane, the Gold Coast and Sydney.

Each unit will be led by a property-based CEO reporting directly to the group CEO, Cooke. The most recent appointment under this strategy is Jessica Mellor, who became chief executive of Gold Coast operations in October.

This week, Star received further good news when new tax rates were confirmed in NSW. Star had criticised the government for some of the suggested increases but following talks over the matter, lower increases were agreed.

The Commission began a review of how it collects data back in 2020 as it progressed plans for its mammoth Gambling Survey for Great Britain project.

Since then, it has worked with partners to improve how it asks people to participate and how questions are asked. Among other changes, gambling behaviours across Great Britain are now gathered using a push-to-web survey methodology. This replaces the long-running telephone survey data collection.

The figures released this week come from a survey of 4,000 people carried out in April and May. It was found that more than half of respondents had gambled in the previous month. The research suggested 2.5% of those quizzed had a score of 8+ on the Problem Gambling Severity Index (PGSI) screen. This would categorise them as problem gamblers. A further 3.5% scored between 3 and 7, making them a moderate-risk gambler. The Commission conceded that surveys focused on online self-completion produce consistently higher estimates of gambling harm. 

The report also focused on the most popular activities to participate in over the past four weeks. These were the National Lottery (32%), charity lotteries (15%) and National Lottery scratchcards (13%)

The Commission said these new findings could not be compared to previous research due to changes in methodology. These “experimental” figures also should not be seen as replacements for current official statistics, it said.

How the Commission has revamped gambling data gathering

Over the last three years, the Commission has sought to improve its processes through consultations, surveys and workshop sessions. Earlier this year, it published its evidence gaps and priorities paper for the three years between 2023 and 2026. The research focused on areas of regulation that need evidence-based development.

The Commission said following the publication of new figures it has now completed the experimental phase of its project.

“This project is just one of the ways the Commission is looking to improve our understanding and build a stronger evidence base for our regulation, as set out in our evidence gaps and priorities for 2023 to 2026,” said Helen Bryce, the Commission’s head of statistics.

“After experiments, cognitive testing and advice from NatCen’s questionnaire design experts we are able to collect relevant data about the gambling activities that are available to consumers today, in a way that consumers describe them.”

The end of the quarterly gambling participation survey

The Commission is continuing to progress its plan for the Gambling Survey for Great Britain. This will be an annual survey of 20,000 people, making it one of the world’s largest gambling data research projects.

Bryce added: “This project is just one of the ways the Commission is looking to improve our understanding and build a stronger evidence base for our regulation, as set out in our evidence gaps and priorities for 2023 to 2026. And one of the things we want to explore once the Gambling Survey for Great Britain is up and running is how we can deepen our knowledge by comparing the survey results with operator data and other available datasets.”

Earlier this year, the final edition of the Gambling Commission’s quarterly statistics on participation found all categories “statistically stable” from the previous period.

The headline problem gambling rate, as measured by the short form Problem Gambling Severity Index (PGSI), remained statistically stable at 0.3%.

The in-person gambling participation rate also was stable compared to the March 2022 period at 27%. However, this is still significantly below the 35% who answered positively to the survey in the pre-pandemic period.

Ducman is banned from officiating at or attending any tennis event authorised by ITIA members. The ban runs for 10 years and six months, until 7 March 2034.

The ITIA said that Ducman breached its Tennis Anti-Corruption Programme (TACP) by betting on tennis matches. He was also found to have manipulated data from matches in which he was an official to facilitate betting.

Ducman is an international-level and bronze-badge official who has officiated at ITF, ATP and WTA tournaments. He admitted to four breaches of the TACP, co-operated fully with the ITIA investigation and accepted an agreed sanction.

The official also waived his right to a hearing before an independent anti-corruption hearing officer. He has been suspended since 8 September 2023, with the ban being backdated to this date. 

In addition, Ducman will pay a fine of $75,000 (£59,802/€68,753). Of this amount, $56,250 is suspended.

ITIA clamps down on anti-corruption breaches in tennis

Ducman is the latest individual to feel the wrath of the ITIA in recent weeks and months. The ITIA has handed out a series of sanctions as part of its strict approach to corruption.

Last week, it sanctioned five players for their roles in a match-fixing syndicate in Belgium. Alberto Rojas Maldonado, Christopher Díaz Figueroa, José Antonio Rodríguez Rodríguez, Antonio Ruiz Rosales and Orlando Alcántara Rangel will serve bans.

Mexican Maldonado was handed a lifetime ban from tennis and ordered to pay a $250,000 fine. He was found guilty of 92 breaches of the TACP and was found to have played a pivotal role in the corruption of other players. 

Guatemalan Figueroa also received a lifetime ban and a $75,000 fine for 13 TACP breaches. Figueroa previously served a three-year suspension for match-fixing.

Belgian syndicate at centre of tennis match-fixing

The case relates to a Belgian match-fixing syndicate led by Grigor Sargsyan. The recent criminal case led to the conviction of Sargsyan, who was handed a five-year custodial sentence.

Described by the Washington Post as “the man who built the biggest match-fixing ring in tennis”, Sargsyan had traversed the globe since 2018 to build a network of more than 180 professional players across five continents.

The ITIA earlier this month also banned seven Belgian players after a court ruled they were involved with the same match-fixing syndicate.

Players included Arnaud Graisse, Arthur de Greef, Julien Dubail, Romain Barbosa, Maxime Authom, Omar Salman and Alec Witmeur.  Three of the players – Witmeur, de Greef and Barbosa – have been provisionally suspended since May 2021.