Category: News

The Commission said that the Casumo player lost £1.1m over the course of three years, but the operator did not interact to ensure they were gambling responsibly.

Other players who did not receive an interaction included one who lost £65,000 in a month, another who lost £76,000 over seven months, one who lost £89,000 in a five-hour period and another who lost £59,000 within 90 minutes.

Social Responsibility Code provision 3.4.1 says that “licensees must interact with customers in a way which minimises the risk of customers experiencing harms associated with gambling,” adding that this includes identifying those at risk of harm.

Its AML failings, meanwhile, included a finding that customers could deposit “significant sums of money” without AML checks, while source of funds checks were found to be “insufficient” as payslips and invoices presented as evidence of funds were not corroborated with bank statements.

The Commission found that Casumo did not have internal spending limits based on known income, wealth or other factors.

These failings breached Licence Condition 12.1.1, which states that operators must have sufficient AML checks.

In addition, bank statements were not fully checked, and some incomplete statements had been approved. ID checks, meanwhile, were similarly found to be insufficient.

As well as the £6m fine, Casumo has received an official warning and must call in and pay for independent auditors to ensure that it keeps up with the licence conditions and codes of practice (LCCP).

Casumo said the failings were found in an audit conducted between October 2019 and 8 January 2020, when it was in its “start-up phase”.

It said any issues had since been remedied following the appointment of Shelly Suter-Hadad as chief executive.

“Since joining Casumo last year, my focus has been on putting in place a new senior leadership team and Personal Management License holders with extremely strong industry experience and the knowledge and expertise to ensure we are a compliance-led business” Suter-Hadad said.

“In addition, recognising that key processes fell short in the past, I took immediate action to implement fundamental operational changes so that Casumo is now a gaming group with compliance and responsible gambling at the heart of its business and culture.”

Casumo added that the Gambling Commission had acknowledged a “fundamental shift” in policies and processes in this time period.

“These efforts, together with our full collaboration, have been formally recognised multiple times by the Commission,” Suter-Hadad said.

Richard Watson, executive director of the Gambling Commission, said: “This case was brought about through planned compliance activity and every operator out there should be aware that we will continue to take firm action against those who fail to raise standards.”

Last week, the Commission fined online casino operator In Touch Games £3.4m after finding that the operator failed to implement its interaction policies and procedures for seven customers, despite concerns that their behaviour indicated problem gambling. The Commission also found that In Touch’s responsible gambling interaction guidance allowed bonuses to be offered for customers that verify their identity.

Earlier this month, Football Index operator BetIndex had its British licence suspended after the Gambling Commission conducted a review on the operator following changes to its dividend structure that BetIndex said were necessary to keep the platform sustainable.
The regulator expressed concerns that the platform was not suitable to carry on with licensed activities, and following the suspension the operator was also dropped by the Betting and Gaming Council (BGC) as a member.

Also this month, Neil McArthur stepped down as chief executive of the Gambling Commission with immediate effect. McArthur said that it was “the right time to step away” from the role.

The case concerned a training match played on 28 March, 2020 between Kronängs IF and Mariedals IK, for which Bet365 offered odds. A review of the match by Spelinspektionen showed that 24 of the 34 participants were under 18.

Chapter 8 section 2.2 of the Swedish Gambling Act says that betting may not be offered on “occasions where the majority of participants are under 18 years of age”.

Hillside contested that offering odds on the match was permissible, as it was not a match specifically for underage players. It added that it took immediate corrective action to ensure odds would not be offered on similar matches, including stopping betting on lower-division friendlies. All bets on the match were declared void.

“The fact that a majority of the players then turned out to be under 18 years was an unfortunate coincidence that could have occurred in any senior league at any time and which could not be foreseen,” Bet365 argued.

It added that if it was in violation of the Gambling Act, a warning was the only suitable action, as the offer was only for a single match and was due to error. It added that the violation was serious and that therefore the action taken should amount to more than a warning.

However, it also pointed out that Hillside’s action to prevent further underage betting and the fact that this was a one-off event were mitigating factors.

However, Spelinspektionen said that the Act was clear in prohibiting betting on events where the majority of participants are underage, rather than referring to bets on underage competitions.

The operator also disputed the base used to determine the sum of any penalty applied. Spelinspektionen argued that the penalty should be based on total stakes from Sweden, which for Bet365 totalled SEK11.2m for 2019. The operator argued it should be based on its Swedish revenue, SEK683.9m, but this was rejected.

Considering the mitigating factors, Spelinspektionen opted to set the penalty fee at SEK1m.

The warning and penalty follow a similar SEK10m sanction handed down in June 2019, as part of action against eight operators, all for betting on underage matches. Hillside appealed this decision in the Administrative Court, and after its first appeal was dismissed, appealed it again in the Court of Appeals.

In related news, Spelinspektionen also appointed its board for 2021-22. Fredrik Holmberg, who is currently a Spelinspektionen director, will take over as director general from Camilla Rosenberg, as Rosenberg leaves the board. 

Per Håkansson, Håkan Wall, Madelaine Tunudd, Andreas Prochazka and Doris Högne Rydheim will all remain on the board, with no new appointments. Håkansson will continue to serve as chairman.

Introduced in February by Representative Tom Walters, House Bill 0133 sets out plans to authorize online sports betting in the state.

Last week, the bill cleared the House of Representatives at the second attempt by a vote of 32-28, having initially being rejected by a vote of the same margin.

The bill then progressed to the Senate and was sent to the Senate Appropriations Committee, which approved the bill by a vote of 4-1.

The only recommended amendment flagged by the Committee was to change the start date of the legislation from July 1 this year to September 1.

Approval from the Committee means the bill will now head to the Senate floor and, if approved, it will proceed forward to Governor Mark Gordon for signing.

Read the full story on iGB North America.

Hillman stepped down as CEO of slots specialist NetEnt this month following its SEK19.6bn (£1.67bn/€1.93bn/$2.28bn) acquisition by Evolution.

Ranked as one of the industry’s most influential women by iGB in 2019, Hillman joined NetEnt in January 2017 as chief financial officer. She went on to become interim CEO in April 2018, before moving into the role on a full-time basis in the following month.

Prior to this, she had a spell as CEO of sports nutrition business Gymgrossisten and spent time serving on the board of Unibet Group, which later became Kindred.

The proposition from Better Collective’s nomination committee will be discussed at the affiliate’s annual general meeting on 26 April.

“Therese’s experience from the igaming market is highly relevant for Better Collective,” Better Collective chairman Jens Bager said. “Therese will, among other things, support the company in its ambitious strategy to continue consolidating the market and growing in new markets such as the fast growing US sports betting market.”

Better Collective’s nomination committee also proposed re-electing Bager as chairman of the board, as well as Todd Dunlap, Klaus Holse, Leif Nørgaard and Petra von Rohr as board members.

However, it was confirmed that Søren Jørgensen will not seek re-election to the board, but will instead take on consultancy role with Better Collective founders Jesper Søgaard and Christian Kirk Rasmussen.

“I would like to thank Søren for his outstanding efforts on the board since 2014,” Bager said. “Søren has been instrumental in shaping the M&A strategy and building the in house knowledge that has led to 20 acquisitions so far.”

The proposed board appointments come after Better Collective last month said that merger and acquisition activity during its 2020 financial year helped drive year-on-year growth in both revenue and profit.

Overall revenue for the 12 months to 31 December 2020 was up 35.3% year-on-year to €91.2m, while profit also increased 57.6% to €21.9m.

The state-owned gambling operator has sponsored the national team for decades and plans to do so during next summer’s World Cup – according to a statement from from Svenska Spel’s sustainability manager Kajsa Nylander and sponsorship manager Nicklas Biverstahl.

The decision to host the tournament in Qatar has proved to be controversial, with Svenksa Spel acknowledging that the country ‘lacks respect for human rights’.

Instead, the company has chosen to see the competition as an opportunity for change, rather than an excuse to boycott.

On behalf of Svenska Spel, Nylander and Biverstahl said: “We understand that many people feel that a boycott is the most reasonable choice, when championships are decided in countries that lack respect for human rights.

“We do not advocate general demands for a boycott. Instead, we believe that the Football Association should be there and do what they can to contribute to long-term change, both within the country and within FIFA when host countries are chosen in the future.

“So, even if in this case we regret the choice of host country, our ambition is to do what we can to contribute to long-term social improvement. We believe this is a better choice than a boycott.”

In the role, Boje will focus on continuing GLI’s innovative efforts, maintaining the company’s employee engagement culture, and leading the GLI engineering teams.

Boje brings more than 35 years’ experience in gaming and hospitality to his new role, with particular experience in marketing and workflow re-engineering.

“I am very pleased to welcome James to the team.” said GLI managing director for EMEA Martin Britton.

“His leadership and gaming knowledge will make a significant contribution to the overall experience within GLI and with our customers. He has been a key driving force in his previous roles with his enthusiasm, skill, and professionalism, which he now brings to GLI.”

Boje previously held the position of managing director for Aristocrat Technologies. He also held senior leadership roles with IGT Europe and Africa.

Bhushan currently serves in the same position at NetEnt, having only taken on the role of CTO at the developer in September of last year.

He began his career as a software developer with Adobe in India before joining NetEnt in 2009. Starting as a system architect, he moved up through the business to become platform director and managing director of NetEnt India and, more recently, group CTO.

At Aspire, Bhushan will manage the supplier’s technology department, including the technology operations and development teams, IT, and security.

“I’m happy to join Aspire Global and play a part in realising the vision to become the world’s leading iGaming supplier,” Bhushan said.

“Aspire Global has consistently executed its growth strategy and recently made strategically important acquisitions that position Aspire Global as a leading iGaming supplier.”

Aspire chief executive Tsachi Maimon added: “I’m very happy to welcome Aditya Bhushan to Aspire Global, who will bring with him significant experience in producing eminent slot games and casino platforms.

“He will be key in structuring an agile and scalable tech organisation across multiple jurisdictions worldwide, as well as in further developing Aspire Global’s leading offerings to iGaming operators.”

The appointment comes after Aspire this month announced plans to undertake a review of its B2C segment as part of an effort to accelerate growth, following a record revenue performance in 2020.

Aspire posted €161.9m (£139.7m/$191.4m) in revenue for the 12 months to 31 December 2020, a record for the business, while earnings before interest, tax, depreciation and amortisation also reached a new high of €27.1m.

The deal – which both boards said would help the combined business capitalise on the growing US market – would see Bally’s pay £18.50 per Gamesys share, representing a 12.7% premium on Gamesys’ closing share price yesterday (23 March). 

Alternatively, its shareholders may exchange their holding for 0.343 newly issued Bally’s shares per Gamesys share. Bally’s shares were trading at $66.34 per share at market close in New York yesterday, meaning 0.343 shares would be worth £16.55 at the day’s exchange rate.

The founders and executives of Gamesys have already agreed to choose the share offer if the deal goes through. This means the maximum amount of cash that may be paid in the deal is £1.6bn.

Lee Fenton, currently chief executive of Gamesys, would become chief executive of the combined group, and two further Gamesys directors would join its board.

George Papanier, chief executive of Bally’s, would stay on the board after the merger and move into a new role running Bally’s estate of land-based casinos.

Explaining the rationale for the deal, the boards pointed to the size of the emerging US online market.

“Bally’s and Gamesys believe that having a combination of both proven, developed technology and land-based platforms across key US states, with global brands, existing customer bases and complementary product offerings will be key to taking advantage of these growth opportunities,” the deal announcement noted.

In addition, the board said that Gamesys would benefit from Bally’s land-based presence, while Bally’s would benefit from the Gamesys technology platform.

“We believe that this combination would mark a transformational step in our journey to become a leading integrated, omni-channel gaming company with a B2B2C business,” Bally’s chair Soo Kim explained.

“We think that Gamesys’ proven technology platform alongside its highly respected and experienced management team, combined with the US market access that Bally’s provides, should allow the combined group to capitalise on the significant growth opportunities in the US sports betting and online markets.

“We are truly excited about the opportunities that this combination would offer and the enhanced and comprehensive experience and product offering that it would enable us to offer our customers.”

Fenton said the businesses shared an “entrepreneurial energy” that would create “a uniquely powerful company”.

“Our shared passion and vision to capitalise on technology disruption to better serve our customers, wherever they may be, should make for an exciting journey for our employees, customers and shareholders alike.”

The boards added that the new business may “pursue growth opportunities through reinvestment and strategic M&A.”

Bally’s intends to finance the deal via a bridge facility, which will be partially refinanced with a capital raise.

Bally’s – formerly known as Twin River – has engaged in a spate of M&A in recent months. This included a deal to acquire daily fantasy sports (DFS) operator Monkey Knife Fight, which closed yesterday, and its pending acquisition of sports betting platform supplier Bet.Works.

The Gamesys Group, meanwhile, was formed when JackpotJoy acquired the legacy Gamesys business.

The deal, which will see Incentive’s Margin Selector, Dream Team and Bracket games available for NBA and NFL contests, marks Incentive Games’ entrance into the US market. The first products have already launched for the NCAA’s 2021 Basketball Tournament.

Incentive says that Margin Selector already boasts tens of thousands of daily players, with over 70% of customers playing for consecutive weeks.

Read the full story on iGB North America.

Intralot said the amendment was designed to enhance resilience in the context of the novel coronavirus (Covid-19) pandemic, and its effects on the overall lottery market.

The organisations’ existing contract was signed in June 2019, and was intended to last for a period of 8 years.

Its subsidiary Intralot Maroc, which the supplier said has been a successful partner of MDJS since 2010, will continue to support the operator with the overall management and operation of its lottery, sports betting and other gaming activities.

In the past year, Intralot has extended several of its contracts globally while shortening others.

In July, the supplier extended its partnership with the Dutch lottery operator, Nederlandse Loterij, to provide it with a sports betting platform.

Its partnership with Australia’s Lotterywest, meanwhile, was extended to last until January 2026 earlier this year, in a deal which will see Intralot Australia continue to provide its products and services for the operation of the state lottery of Western Australia.

In February, the supplier agreed to sell its entire stake in South American subsidiary Intralot de Peru SA to private equity firm Nexus Group in Peru, for a cash consideration of $21m (£15.2m/€17.4m).

In November, Intralot announced that it expected earnings to be reduced by between €25m and €28m due to the impact of the Covid-19 pandemic.

A deal announced today saw Intralot continue its expansion into the US, as it announced the launch of a series of free-to-play games in partnership with game developer Incentive Games, through the Montana and Washington, DC lotteries.