Month: April 2024

It was the second blow in a week for an online casino bill in a US statehouse. Maryland’s legislative session closed 8 April without legalisation. Maine’s session is set to close 17 April.

Maine representatives first voted, 71-74 to fail the bill, then a day later, senators voted 14-20. The senate then voted to table the bill, 27-7 on 10 April.

In May 2022, Maine lawmakers passed legal sports betting, giving the states four tribes a monopoly. The tribes, at the time, were not seeking legal sports betting, and the lawmakers were moving a bill that would have created an open, competitive marketplace through the legislature. But Governor Janet Mills was looking to offer the four tribes of the Wabanaki Nation — which do not enjoy the same level of federal recognition as tribes in most other states — an olive branch. The state and the tribes have long had a contentious relationship.

Seven states offer online gambling

As part of the deal, the tribes are entitled to offer Maine online casino, as well. But lawmakers must create a framework for that, and legalising online casino has proved elusive. To date, only seven US states have done so.

In Maine, LD 1777 would have prohibited the state’s two brick-and-mortar casinos, operated by Churchill Downs, Inc. and PENN Entertainment, from offering online casino. Under the sports betting law, the two cannot offer digital sportsbooks, either. Both opposed the latest online casino legislation.

The bill would have set the license at $200,000 and the tax rate to 10 percent.

‘I just don’t think it’s the right thing to do’

Lawmakers in Maine and other states struggle with the idea of putting an array of casino games into the palms of every resident of their states.

Republican Senator Jeff Timberlake voted against Maine online gambling.

“This is basically saying people can sit at home and play slot machines on their computer all day long, and I just don’t think it’s the right thing to do,” he said according to Maine Public Radio. “It’s a real expansion of gambling in the state of Maine.”

GambleAware released new data from the network to mark its one-year anniversary. The National Gambling Support Network is a GambleAware-commissioned service.

Organisations within the service contacted those that had reached out for treatment within 1.3 days on average during the last three months of 2023. The National Gambling Support Network is made up of 11 organisations in total.

The new data also revealed that January 2024 saw the highest number of calls and online chats made to the National Gambling Helpline since its inception, totalling 4,816. This is the sixth time the record has been broken since 2023 began.

The National Gambling Helpline is ran by GamCare, and has been in operation for more than 25 years. One year ago, GambleAware agreed to fund GamCare for a further three years, allowing it to continue running the helpline.

Gambling minister Stuart Andrew said the growth in calls to the helpline demonstrated the necessity of the service.

“The increase in calls to the National Gambling Helpline shows the importance of getting the right help in place for those who may be suffering,” he said.

“That’s why in our white paper published last year we introduced a range of measures to prevent harms before they occur, including stake limits for online slot games and financial risk checks, as well as a levy on gambling companies to increase funding for research, prevention and treatment of gambling harms.”

GambleAware in support of statutory levy for further care

Statistics from the National Gambling Helpline also revealed that 28,175 people have received brief interventions – classified as conversations lasting 20 minutes or more – since April 2023.

“The GambleAware commissioned National Gambling Support Network is designed to prevent the escalation of harms associated with gambling,” said Anna Hargrave, chief commissioning officer at GambleAware. “It is heartening to hear the positive impact the services have on people’s lives and the difference they make.”

“These essential third sector providers play a vital role for people across the country, and we look forward to continuing to share this expertise and experience alongside the NHS under the new system once a levy is introduced.”  

A proposed statutory levy on operators – one of the measures included in the Gambling Act review white paper – has been backed by GambleAware and NHS England.

The levy would see online gambling operators pay a 1% fee on gross gambling yield, which would be distributed by the Gambling Commission to the NHS and UK Research and Innovation.

Last week, GambleAware announced that its self-assessment tool had been used by over 100,000 users since its launch.

Announced today (11 April), the deal will see BlueBet issue approximately 265.4 million fully paid shares to Betr shareholders. This equates to around 56.9% of BlueBet’s current shares.

A potential deal has been in the works for some time. Yesterday (10 April), BlueBet added fuel to the fire by requesting a trading halt on the Australian Stock Exchange (ASX) amid talk of an acquisition. 

The deal remains subject to a series of closing conditions, including the support of BlueBet shareholders. BlueBet has “unanimously” recommended shareholders vote in favour of the merger, saying it will create material value.

If these conditions are met, BlueBet says it expects to complete the merger by 1 July.

BlueBet chair hails “transformational” moment

“This is a transformational moment for BlueBet,” says Michael Sullivan, executive chairman of BlueBet. “It brings together our best-in-class technology platform with Betr’s large and high- quality customer base to create a national challenger in the online wagering market. 

“The Betr team is fully aligned with this vision. We are excited by the growth opportunities and synergies that will be unlocked through the proposed merger.”

Betr founder Matthew Tripp added: “Today is a significant day for Betr. It is a major step towards achieving our ambition to be a tier 1 wagering operator. The combination of our joint scale and the BlueBet technology platform is extremely powerful. 

“What excites me most is the deep experience and highly complementary skillsets of the combined team which sets us up well for the next phase of growth.”

Merger will create “significant” operational synergies

Having launched in October 2022, Betr has quickly grown and established itself within the Australian market. During the first half of the 2024 financial year, it posted an AU$10.0m (£5.2m/€6.1m/U$6.5m) net win and $80.0m gross win.

Detailing the strategic rationale behind the merger, BlueBet said the deal will benefit both businesses.

Highlights include “significantly” enhanced scale and increased market share. Betr has a current database of 341,000 open accounts and 112,000 active players, while BlueBet has over 6,700 active customers. BlueBet said the deal will allow it to migrate Betr players to its own technology platform.

Other benefits include operational efficiencies, with BlueBet expecting to realise between AU$11.0m in annualised cost synergies in FY25. Also, transitioning the larger business to a single brand will allow for the reinvestment of advertising and marketing savings.

The business is set to reach EBITDA profitability in the first half of FY25. It will also be EBITDA profitable in the same financial year.

Who will take the wheel?

In terms of management, details of the potential set-up have also been set out. The current Betr CEO will take on the same role at the larger business, with BlueBet CEO Bill Richmond becoming chief operating officer. Darren Holley, currently chief financial officer at BlueBet, will remain in this position after the merger.

As for the board, this will include BlueBet’s Sullivan as executive chairman and Tripp as a non-executive director. Ben Shaw and Tim Hughes will also be non-executive directors, with a fourth to join in due course.

Longer term, Tripp will assume the role of chairman on 1 January 2025. Sullivan will remain on the board as a non-executive director.

BlueBet eyes equity raising to support merger

BlueBet will also launch an equity raising to secure AU$20.0m in funding. This will help finance aspects of the merger including migration, marketing and synergy realisation costs.

This placement will see shares offered at $0.21, with BlueBet to offer shares in two tranches. The first tranche covers 49.9 million new shares, 24.8% of its existing issued share capital and the second 45.3 million shares, 22.5% of existing capital.

Betr’s Tripp intends to participate and subscribe for approximately $2.0 million worth of new shares. Sullivan of BlueBet will also take part and subscribe for $1.0 million of new shares.

BlueBet expects to settle the last of the new shares in the placement by late May.

Q3 trading update

Alongside details of the merger, the announcement included a trading update for BlueBet and Betr in Q3.

For BlueBet, net win in Australia increased 32.5% to $15.9m, with gross win also rising 18.4% to $18,7m. As for turnover, this was 17.2% higher at $139.6m.

Turning to Betr in Australia, net win was 55.0% up to $23.3m despite gross win dipping 1.1% to $37.1m. Turnover for the period was also down, falling 22.9% to €273.1m.

What about the US?

While Australia will be the primary focus of the combined business, a strategic review of the US is planned post-completion. BlueBet says it will keep the market informed of any relevant developments on this front.

However, BlueBet says a significant reduction in US expenditure can be expected. This comes with BlueBet’s global patform having been delivered, with no further B2C market launches planned.

It added that each of its existing B2C markets has a “clear” path to profitability. On this point, it also noted the commencement of B2B revenue in FY25, with the signing of its maiden Ohio sportsbook agreement.

Super Group celebrates two anniversaries this year. It’s 10 years since its Betway brand signed sponsorship deals with the Cheltenham Festival Champion Chase and Premier League club West Ham United. 

The end to front-of-shirt sponsorship deals in England’s top division will impact the West Ham partnership, but such a long relationship is increasingly rare. Only three other Premier League teams – Liverpool, Manchester City and Arsenal – have remained with a sponsor for longer.

“I can remember how excited everyone in the company was when we signed the Cheltenham and West Ham United deals,” Super Group chief executive Neal Menashe recalls. “Although nearly a whole decade has passed, that same sense of excitement is in the business.” 

Betway’s gambling sponsorship portfolio is now global. It works with over 60 partners including the NBA’s Chicago Bulls, Premier League side Arsenal and the NHL’s New Jersey Devils. 

According to Menashe, sponsorship delivers an “enviable” level of brand awareness, which in turn helps amortise sponsorship costs across a range of global markets. He estimates almost 60% of all Premier League matches broadcast will showcase the Betway brand in some way, for example.

“The business challenge is how to convert those eyeballs into meaningful customer engagements,” he continues. “Put simply, this industry is all about managing the marketing budget against NGR return. 

“While we are never going to spend 100% of our marketing budget on sports sponsorship, it is imperative to have them from a brand awareness perspective.”

Converting eyeballs to engagement

Super Group must harness this top-of-funnel engagement to turn that user into a recurring customer. Revenue of €1.4bn for 2023 – an 8% rise year-on-year – suggests it is doing something right.

Multiple factors play into this process, Menashe explains, most importantly his Super Group team. “We are innately competitive people who get up every day looking forward to the next challenge,” he says of his colleagues.

“We’re lucky to have a brilliant team that have an unrelenting focus on our customers. In this industry you have to eat, sleep and breathe the customer journey and that is what we do 24/7.”

A long-serving team means there’s an experienced and dedicated group of executives setting the tone. Menashe has been at Super Group since the early days, when what was then Betway Group acquired his marketing, CRM and technology business Win Technologies in 2011. 

His executive team has equally impressive staying power. President and chief commercial officer Richard Hasson has been in position since 2012, while CFO Alinda van Wyk joined back in 2007.

That longevity makes for an effective unit. “The complicated part of any CEO role is that it’s your job to make the hard decisions,” Menashe explains. “Indecision is your enemy. We’ve been in the industry for more than 20 years; we’ve seen a lot and have experienced most things this industry can throw at you.”

This hasn’t bred complacency, rather increased the team’s desire to win, he adds. 

Africa emerging as a crucial region

That winning mentality is critical as Super Group competes on a global scale. With a foot in just about every market, in Q3 its Africa and Middle East segment in particular stood out. North America’s contribution was the largest in the first nine months of 2023, but Africa and Middle East followed with revenue of €298.3m.

“Africa continues to go from strength to strength,” Menashe says. “We now have a footprint of seven regulated countries with a very healthy pipeline [of new opportunities].”

A breakdown of revenue by region for the 2023 financial year isn’t live yet. However, Menashe expects to set new records for African customer numbers, deposits and net gaming revenue. Many markets across Africa are rapidly growing but the continent’s gambling market is “in its infancy”.

“There is immense scope for growth in every market, not just sportsbook but icasino as well,” Menashe explains. “We spotted the opportunity a number of years ago and have carefully built a healthy footprint in key markets and the right team to take advantage of the emerging opportunities. 

“With such rapid population growth, alongside economic advancement, there is significant room to grow both the number of markets and market share, so we expect this growth to continue for many years to come.

“We listen to our customers and ensure that our product reflects their needs. We have experienced local teams who also deliver specialised knowledge to their own product teams to ensure we keep innovating while offering a market-leading service.”

Will Africa become the blueprint for LatAm gaming?

Speaking on Super Group’s 2023 results call, Menashe suggested parallels between Africa and Latin America’s emerging regulated market, a small but growing region for the operator. 

“We’ve been there a long time,” he told analysts. “We are likely to see what the regulations mean in each of the countries, if it is Chile, Brazil or Peru. 

“For us, it’s an important market and the software we use is very similar to Africa. It all bodes well,” he added.

Middle Eastern promise

In these emerging regions, fans watch football. Betway’s partnerships in the Premier League afford it brand visibility around the world, so the company’s investment in England has a net benefit globally. “There are so many benefits from being part of long-term relationships with the teams and leagues we sponsor,” Menashe says. 

But these relationships only work provided the agreements generate returns so Super Group keeps a keen eye on proceedings. “We make a detailed evaluation of any potential deal and continue to do so ahead of any renewal,” he continues.

Menashe applies that same critical eye to new market opportunities, including in the United Arab Emirates where there could be a massive market developing covering land-based, online gaming and lottery. Menashe is keeping an eye on the opportunity but remains noncommittal until he sees the operating conditions. 

“The level of growth will be directly dependent on the tax and regulatory regime that they put in place,” he says. “If they are structured in a way that creates sustainable competition, and access is smooth and transparent, then it has everything in place to be an exciting new market. 

“Indeed, the potential of the UAE, and wider Middle East, despite the obvious challenges, is significant.”

Making the right calls

But a CEO’s job is to make the difficult decisions, he says. That means knowing when to stick and when to twist. 

Many believe India is a sleeping giant for gambling. Its population tops one billion and there’s a huge audience for sports, especially cricket. Considering Super Group’s sponsorship portfolio already includes cricket competitions in South Africa, India feels like a natural fit. 

However, the revamped Goods and Services Tax (GST), set at 28% of turnover, prompted Super Group to pull out of the country. “It’s quite simple,” he says. “We have to make calls when we’re not seeing returns. It is uneconomical to have Indian GST at 28%.”

Some operators invest for the future. They maintain a presence in difficult markets in the hope of conditions improving or lawmakers amending legislation. At Super Group ROI is the watchword, hence its withdrawal from India. 

In Germany, high taxes on casino games prompted changes to its games to ensure an economical return, Menashe adds. “Every market has its own process that you have to go through. And that’s fine as long as you then regulate the unregulated.

“[But] there is no point in putting pressure on the regulated sector if customers are going to decide to go to a sportsbook or casino that doesn’t comply with the rules.” 

Regulation is ultimately inevitable, he says. Super Group welcomes the oversight: the market functions and regulators take effective measures against illegal activity. 

Building a global brand from scratch

Alongside the 10th anniversaries of its Champions Chase and West Ham deals, Super Group also celebrated two years as a listed business on 28 January. It’s an anniversary of sorts for the industry as a whole, too. The first online casino went live 30 years ago, in 1994.

Beyond the inevitability of regulation, what does he see driving progress as online gaming moves into its fourth decade? 

Artificial intelligence (AI) is, of course, one of the key elements of gaming’s future. “We are just in the foothills of understanding what these technologies can do, but I have no doubt that they will have an impact on the way gaming businesses are run and how we evolve interactions with our customers,” he says.

But Menashe is unsure which brands will be around then. The pace of deals picked up in 2023 and in 2024 that pace is likely to quicken. 

“I predict that the industry landscape will be fundamentally different in five years’ time,” Menashe explains. “Although it is imperative that healthy levels of competition are maintained to ensure our ongoing attractiveness to the existing and potential customer base.”

Super Group will remain part of the industry landscape whatever form it takes, he argues. As Menashe says sonsorship brings an international audience to Betway, giving it significant staying power. And there’s room to grow further as more markets regulate. 

After more than two decades at Super Group, he is still up for the fight. 

“We’ve built a global business from scratch,” he says. “A culmination of over two decades of return on marketing spend. Who else can say they’ve done that?”

Under the acquisition agreement, BetMakers will pay a total consideration of AU$1.5m (£779,316/€910,620/US$977,501) to take ownership of the Racelab assets. However, there is a clawback clause of up to $500,000, dependent on key customer obligations within 30 days of closing.

BetMakers said that the deal represents a “highly strategic acquisition” for the business. It adds race form, preview and statistics technology to its ecosystem, as well as proprietary fixed-odds pricing technology and associated algorithms.

Racelab assets include ProForm informatics and enhanced content and Odds Engine pricing and trading technology. 

Other benefits include potential to further expand services in the harness and greyhound form and preview racing sectors. In addition, BetMakers said the deal provides an ongoing partnership with global racing rights holder Sports Information Services Limited to develop products and services for their customers worldwide.

“We are very pleased to secure this unique set of assets that hold tremendous potential for BetMakers,” said BetMakers CEO Jake Henson. “We have acquired market-leading technology that further broadens the capabilities of BetMakers’ racing ecosystem for both wagering operators and rights holders alike, across the globe. 

“In addition, we are uniquely placed to integrate Racelab operations into our existing global infrastructure. This drives new revenues via our existing sales channels and continues to develop upon the strategic vision of both ProForm and Odds Engine.

“We are very confident in our ability to deliver substantial value from this acquisition. It will contribute towards both revenue and earnings growth in FY25 and beyond.”

Betr deal to end as BlueBet acquisition confirmed

Meanwhile, BetMakers is set to end its platform and services agreement with Betr in the wake of the latter’s acquisition by BlueBet.

Announced today (11 April), BlueBet Holdings has entered a binding asset sale agreement to acquire the Betr wagering business. The deal is due to complete by July.

The merger will see Betr customers leave the BetMakers platform and migrate to BlueBet. As such, this means there is no longer a need for the BetMakers partnership.

Under the termination agreement, Betr will continue to use BetMakers’ service under a reduced service arrangement until migration completes. This is due by the end of August this year.

Should migration not complete before 1 October, Betr will pay BetMakers a fee of $500,000 per month until the migration ends.

Payment details are also available for the preceding months. Fees include $3.75m, paid to BetMakers in March, $2.25m by 14 June and between $1.5m to $2.0m by 13 September. The latter depends on when customer migration completes.

Opening up more options for BetMakers

Conclusion of this deal will also allow BetMakers to work with more operators in Australia and New Zealand. 

The agreement gave Betr exclusivity over certain premium services across the two countries. However, with the deal set to come to an end, BetMakers is free to offer those services to other customers.

“BetMakers is pleased with the agreed outcome between the parties,” CEO Henson said. “We are satisfied with the terms to recover outstanding amounts owed to BetMakers by Betr. 

“In addition, we are content with the agreement on the ongoing terms that are a result of Betr entering into a new transaction. We wish the Betr team all the best in its new venture and will continue to be supportive wherever we can along that path.

“The executed agreement places BetMakers on a much stronger footing going forward. It strengthens our cash position and relieves the company of significant resource commitment, both now and into the future. 

“This provides the ability to further reduce our overall cost base and the opportunity to redeploy key technology and development personnel to expedite the next generation roll-out for clients globally, which will unlock additional efficiencies, significant savings and an improved product offering for BetMakers’ customers.”

BetMakers completes Punting Form payment

In other news, BetMakers has paid the remaining special deferred amount due in relation to its acquisition of Punting Form.

BetMakers acquired ABettorEdge, trading as Punting Form, for AU$20.0m in November of 2022. It includes clauses for extra payments for performance targets.  

Last month, the sellers of Punting Form produced North American race and sectional data. This meant they satisfied a “special event” set out in the acquisition deal and are due an additional $3.0m.

BetMakers made an initial $500,000 cash payment in March. A further $2.5m has now been paid, with this comprising $1.0m in cash and $1.5m in shares. 

Players aged 21 or over can download the Caesars Sportsbook Mississippi app and place bets across a range of sports. Wagering via the app is only permitted while users are physically present at Harrah’s Gulf Coast.

The mobile launch will complement the on-site Caesars Sportsbook facility at the casino. The retail sports betting location has been taking bets at Harrah’s Gulf Coast since 2018.

Users betting via mobile will also have access to the Caesars Rewards loyalty programme, which is integrated into the app. Players earn points for each bet placed, with these redeemable for Caesars experiences and bonus cash in the app.

“The launch of our Caesars Sportsbook mobile app at Harrah’s Gulf Coast is a game-changer for sports fans who visit the world-class destination,” Caesars Digital president Eric Hession said. 

“Enhancing the fan experience remains a key focus for us across jurisdictions where we operate. Bringing mobile wagering online in Mississippi builds on that. 

“We look forward to providing an elevated and responsible sports wagering experience to our Biloxi customers going forward.”

Mississippi mulls expanded mobile betting bill

Players in Mississippi are currently limited to placing mobile wagers inside casinos that have a partnership with an online operator. BetMGM is among other online brands that have such a deal in place, working with MGM Resorts International’s Beau Rivage.

A new bill could change this and open up the market. Introduced in January this year, HB 774 would permit mobile wagering anywhere inside the state’s boundaries. It would allow for a total of 26 licences, each tethered to commercial casinos in Mississippi. 

Other aspects of the bill include setting tax at a maximum of 12%. There is a sliding scale for tax revenue, with sportsbooks doing less business paying at a lower rate.

However, the bill remains in limbo. HB 774 passed the house on 1 February. It moved to the senate on 5 February and then assigned to the gaming committee on 27 February. Last Tuesday (2 April) was the final day for a committee to pass out a bill that did not originate in its chamber.

To keep the bill alive, the Mississippi senate gaming committee held a two-minute meeting on 2 April. This came about with a month left in the legislative session, which is due to run until 5 May.

There could be more movement today (11 April) – the deadline for the full senate to act on any non-revenue bills that originated in the house.

On Wednesday (10 March), the supreme court partially upheld a Jdigital appeal. The ruling annulled several measures included in the Royal Decree 958/2020, which entered into force in November 2020. The supreme court deemed a number of articles in the Royal Decree to lack the necessary legal basis.

Among the overturned measures was article 13, which relates to targeted advertising towards new customers. Operators will again be able to market to players who have had an account for less than 30 days. They will also be able to advertise in establishments with public accessibility and designated for the sale of lottery games.

The supreme court’s ruling also means that celebrities can appear in advertising again. Additionally, the ban on gambling adverts on video sharing platforms (such as YouTube) was overturned. Operators can also again advertise to all social media users aged 18 and over.

Jdigital has hailed the importance of the supreme court’s decision for Spain’s gambling industry. It saw a previous appeal rejected by the constitutional court in November 2023,

A Jdigital statement shared with iGB said: “At Jdigital we consider that the ruling issued by the supreme court, which annuls several articles of Royal Decree 958/2020 on communications of commercial gaming activities, is very positive news for the association and for the online gaming sector.

“The ruling shows that, in the last legislature, the regulation of advertising of the sector imposed disproportionate limits and restrictions, which did not observe safety measures and sufficient legal protection, as we claim in our appeal.”

Jdigital: Measures have “limited scope”

Jdigital emphasised the positives of the supreme court’s decision for Spain’s operators. However, it also warns the measures remaining in place are still somewhat restrictive.

While some of the Royal Decree’s measures were considered to lack legal coverage, other restrictions, such as the ban on advertising between 1am and 5am on TV and radio, are covered by the General Law of Audiovisual Communication and will therefore still be enforced.

Article 12 on sports sponsorship also does not appear in the annulments. Operators still cannot advertise, or use branding for events, goods and services that minors can see. Operators also still cannot sponsor sporting events or broadcasts. Sponsorship activities relating to a sports facility also remain prohibited.

Jdigital warned that it was “necessary to be cautious” over the supreme court’s ruling due to its “limited scope”. It pointed to the ongoing enforcement of the Advertising Code of Conduct as an example that advertising is still restricted.

“This self-regulatory mechanism limits commercial communications in the sector and was modified in 2019 to strengthen consumer protection and, for example, limits welcome bonuses to a maximum of €200 or prevents famous people from appearing in advertising under 25 years old,” Jdigital explained.

Jdigital calls for increased communication in Spain

Jdigital’s statement reiterated its desire to encourage increased dialogue between the industry and the regulator to work together to boost responsible gambling efforts.

Additionally, Jdigital said it advocates working towards a guaranteed framework. It is calling for prudence from its associations to adapt advertising to reinforce its commitment to consumer protection.

Jdigital added: “We hope that this resolution will serve to ensure that, in the current legislature, the government addresses the demands of the sector in the regulatory field and promotes public-private dialogue.

“We want to offer our knowledge for the development of proportionate standards that guarantee the responsible gaming objectives that we all defend and pursue.”

Parliament voted in favour of Government Emergency Ordinance (GEO) 82/2023 with some amendments. This law has been in place since 6 October 2023.

One of these amendments dictates that slot machines must only appear in a locality that has a population of more than 15,000 people. Effectively, this bans them from sparsely populated areas.

Approving this ordinance forms part of Romania’s legislative process. Instead of the law being passed by parliament, the government issued an emergency ordinance that was enacted the day it was introduced. But this ordinance still required parliamentary approval, which took place this week.

Parliament had the power to approve the ordinance altogether, approve it with amendments or reject it completely. If rejected, the ordinance would no longer be in effect.

The law is now with Romanian president Klaus Iohannis. Iohannis can approve the law or send it back to parliament.

The law text states that it will enter into force within 10 days of issuance.

What are the main amendments?

Romanian law firm Simion and Baciu says the restriction of slot machines could spell further issues for the land-based gambling industry in Romania.

“This is a significant change for the land-based market which would basically prohibit slot-machine gambling in rural areas or small towns,” the firm told iGB. “This subject has been raised by the governing coalition in several public debates in the last months.

“It seems however that based on certain statements made today by the president of the chamber of deputies (PSD member) the coalition wants to see how the industry will react to these ‘unannounced changes’, and then if it is possible to move forward with other restrictions for the land-based market, such as movement of the gaming halls at the periphery of the cities.”

All the amendments appear in a draft law related to the approval of the ordinance. There are six in total, including the slot machine restriction.

GEO 82/2023 proposed that ONJN – Romania’s regulator – must create a public register outlining information about licensed operators. This would include each operator’s physical locations and information about gaming machines.

However, an amendment proposes taking this further, demanding that the register be updated every 24 hours. In addition, it suggests that B2B and B2C licensees send this data to ONJN every 24 hours. If this is not done, licensees could face a fine ranging between RON100,000 and RON150,000 (€17,213/£25,819/€20,118 and €30,178/$21,603/$32,404).

Advertising rules could extend to igaming

GEO 82/2023 outlines that outdoor gambling advertising could not exceed a 35sqm billboard. But a proposed amendment could see this rule also apply to ads for online gambling websites.

Another proposal suggests a fine for suppliers offering services to companies that do not hold a Class 1 licence to operate in Romania, if they still allow Romanian citizens to gamble. This fine could range between RON150,000 and RON200,000.

Two amendments focus on clarifying joint-venture operations. GEO 82/2023 states that joint gambling operations must only be managed by:

Class 1 licensed operators, orA licenced operator and an unlicensed operator that is “under common control” of the licenced operator

But an amendment stipulates that operators must hold a Class 1 and/or Class 2 licence to carry out a joint-venture.

“At a first glance, it seems that the draft law changes the logic introduced by GEO 82/2023 related to joint-ventures,” Simion and Baciu commented. “While GEO 82/2023 established the core condition of “common control” between the licensed operator and the unlicensed partner, the draft law stipulates that all partners involved in the operations must have a licence – but without further indicating the common control rule.”

The final amendment suggests that ONJN should issue a clarification on what activities are classed as joint-venture operations. This should occur within 90 days of the ordinance coming into force.

The Romanian government approved a number of new measures for the gambling industry in October 2023. These included new licence fees across the industry, such as €500,000 for online gambling, €200,000 for lottery and €200,000 for fixed-odds betting.

The Netherlands’ regulator, the Kansspelautoriteit (KSA) has released its Spring 2024 online gambling report, providing an overview of the Dutch market.

The report summarises the state of affairs for the market for 2023, and is compiled as a result of data supplied by the country’s licence holders.

Has the Netherlands gambling market levelled off?

In 2023, gross gaming revenue totalled €1.39bn (£1.19bn/€1.49bn). This represented an increase of 28% from €1.08bn in 2022. The report notes that in H2 of 2023, the market only increased by 1% in size compared to €696m in H2 of 2022. Online casino also accounted for 77% of all revenue.

The number of total player accounts rose significantly in 2023, from 970,000 in December 2022 to 1.1 million in December 2023. The report estimates that 726,000 players were active with legal providers.

This means that approximately 5% of the adult population are active gamblers in H2 of 2023. In calculating the average number of active players per month, the KSA estimates an average of 448,000 players.

The report also highlights that the aggregated European online market is growing faster than the Netherlands.

According to data supplied by H2 Gambling Capital, it is estimated that the EU market will increase by 12% in 2024. H2 estimates that the average annual growth in the Netherlands will be fixed at approximately 8% over the next five years. The KSA suggests that “restrictive
measures and circumstances can slow down growth.”

Active gambling in the Netherlands

On average, players are estimated to visit 2.9 gambling websites per month. This is a slight increase compared to H1 2023, when players visited 2.6 websites per month.

Of the players who visited gambling websites in a month, more than half visited one website. 19% of players visited four or more websites.

It is also estimated that players lost an average of €958 over the last six months. This translates to an average of €160 per month. In the KSA’s H1 2023 report, this figure was €170, suggesting a slight decline.

Young adults (18-23 years old) also receive special focus on the monitoring report given their perceived vulnerability. In total, young adults gambled €135m in 2023. This is 9.8% of aggregated turnover in 2023. The share remained “fairly stable” throughout 2023.

In total, this demographic makes up 9.5% of the population. Of all active accounts, 22% are estimated to be from this demographic. The report observes that they lose less money per account than older players (€52 per month).

Effect of advertising restrictions in the Netherlands

The Netherland’s untargeted advertising ban came into effect on July 1, 2023. As a result, mass-advertising on radio, television, outdoor locations and written media is prohibited. Sports sponsorships are also included in the ban. However, a transitionary period is currently in place for existing sponsorship agreements.

As a result, the report notes that the number of website visits by people who have not gambled previously has decreased sharply. However, the KSA estimates that the restrictions have not had an effect on the overall size of the market.

The restrictions are also believed not to have had an effect on channelisation. The KSA’s target when re-regulating the market in 2021 was to ensure that at least 80% of the market played with regulated operators within three years. In terms of players and web traffic, the channelisation is currently estimated to be 90%, suggesting success.

It is also noted that the Central Register for the Exclusion of Gambling (Cruks) has seen its number increase steadily throughout the year. As of January 2024, this totaled 63,543.

Total licences issued in the Netherlands

Another key highlight of the KSA’s report is the total number of licensees active in the market. When the market opened in October 2021, ten providers initially received a licence. This included, Holland Casino, TOTO Online, Bet365 and Tombola. By the end of H2 2023, the KSA had issued 22 permits.

Notably, a permit-holder can operate multiple brands. In total, there are currently 25 regulated websites for online casino. Seven poker and bingo sites, 17 sportsbooks and 9 specific horse-racing sites.

Kajuru, a senator for the Brazilian state of Goiás, will be supported by Senator Eduardo Girão, who will serve as vice-president. Romário, a former footballer who won the World Cup with Brazil in 1994 before becoming a senator, will be rapporteur of the CPI.

The CPI will meet weekly and investigate complaints made by players, managers and betting companies. If it finds that games have been manipulated, the CPI will request the court system to ban the person responsible from football.

The CPI was first introduced in December. It will consist of 11 sitting senators, as well as seven substitutes.

“I’m sure that this CPI has some objectives and we will achieve them,” Romário said. “We know the problems that our football has experienced.

“Here are people who definitely want to set the record straight. They want to open the black boxes of these betting houses that exist in our country. They can understand, know better what type of manipulation has been happening and who are the authors and actors of these manipulations.”

CPI created amid match-fixing storm

The CPI has been established in the wake of Kajuru requesting Brazil’s federal police to investigate John Textor. Textor is the owner of football club Botafogo de Futebol e Regatas. This follows Textor making match-fixing allegations against the São Paulo and Palmeiras football teams.

Textor alleged that five São Paulo players in Brazil had received bribes from Palmeiras ahead of a Brazilian Championship Series A game against São Paulo. São Paulo went on to lose to Palmeiras 5-0. He also claimed to have evidence to support this.

Kajuru added that a month prior, Textor stated he had a recording of a Brazil referee collecting bribes.

Kajuru said he had sent the claims to Andrei Rodrigues, director of the federal police. He had asked the federal police to summon Textor within 24 hours. The senator also requested that Textor should bring all available evidence and recordings to support his claims.

“For me, if he doesn’t bring the evidence and the recordings, he would have to be arrested here tomorrow – cell, handcuffs.” Kajuru explained during the meeting. “Because this is hugely irresponsible, because it’s not just anything, people, it’s Brazilian football, it’s this country’s greatest passion.”

The CPI will aim to “clear up everything” by investigating complaints of sporting manipulation. It will begin work next week, with Textor to be invited as the first witness.

Brazil set to legalise gambling in 2024

Concerns over the integrity of sports betting in Brazil come amid the country’s attempts to fully legalise gambling in 2024.

President Luiz Inacio Lula da Silva legalised sports betting and igaming in the country in December by signing Bill 3,626.

Brazil’s ministry of finance has since published an ordinance outlining that plans to implement fixed-odds betting. It will take place in four stages, with the final phase expected to be complete by July.

Stage one will focus on the technical, payment and security requirements for operators, as well as rules on how operators can apply for licences. The second stage will see anti-money laundering and anti-terrorist financing policies published.

Stage three will entail the announcement of the technical and security requirements for online gaming, while the final stage will outline procedures for the allocation of industry contributions to socially responsible causes.