Commissioners reappointed to British gambling regulator

Approved by the Secretary of State for Digital, Culture, Media and Sport Oliver Dowden, the reappointments will see Baillie and Seddon continue to serve as commissioner until at least 10 April 2022.

Baillie is a former partner of KPMG and was most recently chair of the Accounts Commission for Scotland, having also been a member of the reporting panel of the UK Competition and Markets Authority.

Seddon spent 20 years as a filmmaker before taking up public non-executive roles. She currently sits on the Legal Services Board, where she chairs its audit and risk assurance committee.

The double reappointment comes after John Whittingdale, the Minister for Media and Data in the Department for Digital, Culture, Media and Sport (DCMS), this week took on the brief for lotteries and gambling.

Taking over from Nigel Huddleston, Whittingdale will now oversee the Gambling Act review.

Whittingdale adds lotteries and gambling to a number of other responsibilities, including the media, EU and international strategy including approach to future trade deals, overall approach to union policy issues, data and the National Archives, and public appointments, among others.

Bally’s scores sports betting partnership with NBA

The multi-year agreement will see Bally’s become an authorised sports betting operator of the NBA.

Bally’s will have access to official league data, as well as rights to use official NBA marks and logos across its portfolio of online sports betting products.

The two parties will also work together on practices to protect the integrity of NBA games.

“Partnering with the NBA is an exceptional opportunity for Bally’s, adding to our ongoing momentum with professional sports leagues,” Bally’s president and chief executive George Papanier said.

Read the full story on iGB North America.

Different games, same rules?

The Great Britain Gambling Commission’s consultation on remote player interaction has mostly attracted attention because of its proposals for affordability limits.

While Broadway Gaming chief operating officer Mark Cleary has expressed reservations about those potential limits, he said among the most concerning features in the consultation was something it lacked.

Alongside the affordability proposals were proposals about time indicators for interaction. But Cleary was concerned that these lacked a way of differentiating between different types of gambling products, and most notably between bingo and slots.

The Commission did point out in the consultation that bingo and poker are more likely to see sessions of more than an hour, and that this time spent gambling “will not in and of itself be harmful”.

However, Cleary notes that the proposed changes in the call for evidence currently do not actually make a differentiation between types of games offered. If not clarified, he warned, this could see operators left to implement new restrictions on play beyond an hour for all types of game.

“It doesn’t seem to apply a differentiation between any form of gambling,” Cleary says.

Cleary – whose business operates both online bingo and casino games including slots – says that he’s seen enough to know that those two types of games are simply too different to lack specific indicators.

“We hold both a casino licence and a bingo licence and the games are fundamentally different,” he says. “If you want to place a wager on a slot game, it takes three seconds to place a wager. But if you wanted to play a game of bingo, it takes – on average – three minutes.

“We see that a bingo player’s average wagering in an hour is significantly less than a casino player. Their average wagering days are less than a casino player. The idea that an hour is the same between both types of games just doesn’t stand up.

“The characteristics of those games are different. The types of players attracted to those games are different. The level of spend people have, the averages, the time spent: all of those are different.”

Instead of differentiating between games specifically, the Commission said operators should take actions “linked to the nature of the gambling provided”.

This could offer some leeway for operators of slower-paced games, but Cleary said a lack of specificity was not going to help create a framework where gambling can be safer for all.

“It really lacked definition for some of the concepts, so you’re really being asked to give your opinion about something, but exactly what you’re asked isn’t defined,” he says. “That means you sort of have to interpret what they mean.”

This lack of specificity, he notes, extended to the term “time spent gambling”, which he says has a number of plausible definitions and no guidance on which one to use.

“They talk about time spent gambling, which could be defined in so many different ways,” he continues. “It could be time logged in, it could be time spent within the banking client, it could be active gameplay, there’s a lot of different ways of defining it.”

Again, Cleary warns that the way the consultation is worded risks placing especially strict limits – which may be more appropriate for online slots – on bingo. As bingo’s more social gameplay

differs from the relatively isolated nature of slots, time spent in the bingo client may include as much interaction with other players as it does gambling.

“It’s not just how you play and how much you spend,” Cleary says. “In bingo there’s a lot of social interaction, a lot of time spent just in the chat and that isn’t gameplay: it’s just social interaction.

“People have been starved for social interaction lately too; that definitely needs to be considered.”

A question of implementation

Stronger differentiations between games need not only make sense, however, they must be able to be implemented by operators.

Sweden has shown that limits on certain types of game could potentially be troublesome. There, many in the industry decried the challenges of bringing in a SEK5000 (£428/€476/$540) deposit cap that applied only to online casino games, and operators including ATG have faced discipline for inadvertent loopholes that allowed the limit to be easily circumvented.

Yet Cleary is confident that rules dealing mostly with one specific type of game can be implemented smoothly.

He notes the example of £2 stake limits for fixed-odds betting terminals (FOBTs) as one example of the Gambling Commission creating rules for only one type of gambling already.

“It’s been done before,” he says. “A couple of years ago the gambling commission delved into the world of FOBTs and came up with new rules just for those, and those rules were probably appropriate for the time.

“So, it can be done, you can create rules just for one type of gambling. You don’t need to treat every type of gambling the same way and in fact if you do so it doesn’t recognise that these games are fundamentally different.

“Yes, that was in a retail environment, but I don’t think that matters. The game design changes set to come in are all about online slots, a particular type of online activity. Where there’s a will there’s a way, and just because there’s been challenges elsewhere, I don’t think they have to be repeated here.”

Unintended Consequences

Like many who have raised concerns about potential affordability thresholds, Cleary warns that the black market may stand to benefit from stricter regulations, meaning players may be placed at greater risk.

Yet there may be signs already that this risk may be stronger in bingo that with other game types.

Professional services firm PriceWaterHouseCoopers’ BGC-commissioned report into the British online black market found not only an increase in unlicensed play, but also that this increase was fastest in bingo.

According to the report, bingo saw a more rapid increase in the number of players using unlicensed sites than any other vertical, and a larger percentage of bingo spend, at 4.3%, came from these sites than in any other game category.

Cleary says the fact the report showed an increase in overall black market play was worrying. He adds that he’s concerned the unintended consequences of the proposed limits could be harmful to player protection if his warnings aren’t heeded.

“There’s a real risk here that we drive more and more people to unregulated, illegal black market gambling sites,” Cleary said. “The risks of this have possibly been downplayed by politicians and the gambling commission as this latest report indicated a significant rise in the total number of people playing with illegal sites.

“There can be unintended consequences so what’s designed to improve the area of responsible gambling can end up having the opposite effect.

Parimatch approved for Ukrainian betting licence

However, the operator must still pay fees before it can operate under the certification.

Parimatch’s approval for betting comes after it was granted an online gaming licence in February. Cosmolot operator Spaceiks have also been approved for an online gaming licence.

Even though the country’s Gambling Act became law in August, Ukraine’s legislature is still working on a bill to tax the industry.

Last week, the country’s Committee on Finance, Tax and Customs Policy approved bill 2713-d, put forward by committee chair Oleg Marusyak, after amending it to set a flat 10% rate for all forms of gambling.

“Work still remains to be done on reforming tax legislation before the Ukrainian market becomes attractive to foreign investors,” Parimatch managing partner Maksym Liashko said. “Taxation should be transparent and logical so that it doesn’t create additional obstacles for foreign investors.”

Liashko said that the current combination of taxes and licence fees was too high to create a workable environment

“At this stage, the cost of licenses for various types of gambling activities is so high that, together with taxation, it does not make investments in the nascent Ukrainian market attractive,” he said. “So Ukraine could lose the competition in terms of investment to other countries.

“Under favorable legal conditions, Ukraine could become a gaming hub for the Eastern Europe region. Like Malta and Manila, Ukraine now has the potential to become a center of expertise for gambling entertainment.”

The country’s gambling laws include a clause to block any Russian-owned gaming businesses, or those with Russian directors, from participating in the market. However, Parimatch had previously confirmed to iGB that it was confident this requirement would not be a concern.

Esports Entertainment scores partnerships with New England sports teams

Under the deal, EEG becomes the official esports tournament provider sponsor of the Patriots and Revolution, both of which are owned by Kraft.

EEG will use Patriots and Revolution marks to promote its esports tournaments on its Esports Gaming League (EGL) platform, as well as leverage player appearances, tickets, signage and digital media to promote events.

In addition, EEG will work with Kraft to create custom videos to promote events, with these to be featured in the teams’ digital marketing efforts spanning social media, email, mobile and online.

“The Patriots and Revolution have an enormous and loyal fan base’ our tournament platform will now sponsor two teams with large and passionate fans bases,” EEG chief executive Grant Johnson said.

Read the full story on iGB North America.

Playtech pens strategic deal with Novomatic Americas

Under the deal, Playtech’s sports betting kiosk (SSBT) systems will be delivered through Novomatic ActionBook sports wagering kiosks across the US.

Novomatic ActionBook is currently active in 11 US states and counts the likes of DraftKings and Penn National among its clients in the country.

The partnership will also see Playtech and Novomatic Americas jointly market Playtech’s mobile sportsbook and player account management (PAM) software to prospective US customers.

The deal builds on a long-term partnership between Playtech and Novomatic, via which the two parties jointly operate more than 10,000 kiosks worldwide.

“This combined service will deliver a best-in-class experience and is a further example of Playtech’s ability to partner with leading companies and leverage its scale in the rapidly growing US market,” Playtech’s US managing director Jonathan Doubilet said.

Read the full story on iGB North America.

Bally’s slips to full-year loss as Covid-19 pushes revenue down 28.8%

Overall revenue for the 12 months through to December 31 stood at $372.8m (£266.8m/€309.7m), down from $523.6m in the previous year, when it still used the Twin River brand name.

Revenue was down across all business segments as the temporary closure of its casinos due to novel coronavirus (Covid-19) restrictions in states across the US.

Gaming remained by far the operator’s primary source of income, but revenue fell 20.7% year-on-year to $291.7m, while racing revenue more than halved from $13.1m to $6.4m.

Closures meant hotel revenue fell by 36.7% to $24.7m, while food and beverage revenue declined 54.1% to $32.1m and other revenue 47.0% to $17.8m.

Read the full story on iGB North America.

DraftKings named UFC’s first sportsbook and daily fantasy partner

The agreement will allow DraftKings to offer in-game promotions, activations, in-broadcast odds integrations and UFC branding across its daily fantasy and betting products. 

It will also run a series of weekly free-to-play games, as well as enhanced prop bets and other sportsbook activations. This includes a $10,000 free-to-play pool, that will be accepting entries in the run-up to UFC 259 on 6 March. 

The operator also becomes the presenting partner of the UFC Fight Clock, the championship’s new proprietary timekeeping system. 

It displays on multiple screens at each event, to ensure players and fans have a view of time remaining in each round. The DraftKings-branded version will debut during the bout between Jan Blachowicz and Israel Adesanya at UFC 259 in Las Vegas this Saturday (6 March).

DraftKings’ branding will also appear on the Octagon canvas at select UFC events and in bouts held as part of Dana White’s Contender Series, which takes place in Las Vegas. 

Linear and digital broadcasts and pay-per-view fights, social media assets and programming on the competition’s streaming service UFC Fight Pass will carry its branding. 

“This is a massive deal that will benefit UFC, DraftKings, and most of all the fans,” UFC president Dana White said. 

Read the full story on iGB North America.

FansUnite applies for UK B2B and B2C licences

As part of its expansion strategy, the supplier has applied for a remote gambling software licence, which will enable the business to provide its suite of betting products to operators in the UK’s igaming market.

In addition, its wholly-owned subsidiary E.G.G. Ltd has applied for a remote betting licence, allowing it to deploy its B2C wagering platforms in the UK.

“The U.K. gambling licenses are widely regarded as the gold standard for lawful gaming operations and we are pleased to have formally submitted our application with the commission,” said Scott Burton, chief executive of FansUnite.

“The first step to our expansion in the U.K. is to obtain the relevant licenses from the country’s Gambling Commission, which will allow us to license our betting solutions as well as operate our B2C betting platforms in the United Kingdom.”

“By doing so, we will be in a position to advance our operations to capture market share in one of the most lucrative online betting markets in the world.”

The supplier was awarded a gaming service licence and critical gaming supply licence by the Malta Gaming Authority in December last year, allowing it to provide both its B2B and B2C products.

The B2B critical gaming supply licence was issued to Askott Entertainment, the white label solutions provider FansUnite acquired in August 2020, while the B2C gaming service licence was awarded to its E.G.G. Ltd subsidiary.

DraftKings to pay over $7m in site credit in lawsuit settlement

The suit was filed by players who accused the platform of running an illegal gambling enterprise. It accused DraftKings and fellow daily fantasy operator FanDuel of using money deposited by new players to fund awards for experienced, high-volume players.

After arbitration in November 2019, the players and DraftKings decided to attempt to settle the case without FanDuel’s involvement. FanDuel’s part of the case therefore remains open.

Under the agreement reached, which still needs to be approved by US District Judge George A. O’Toole, DraftKings will create two settlement funds, one consisting of $7.28m in “DK dollars”, or site credit, for class members with open DraftKings accounts.

For players who closed their accounts, a $720,000 fund will be disbursed among anyone who made a first-time deposit on the site before January 1 2018 and is not a lifetime net winner with the operator.

In addition to the monetary settlements, DraftKings has agreed to implement a number of changes to its site for two years, including limiting players to one account, preventing prohibited platform employees from entering any public contest with an entry fee, and flagging all highly experienced players with a symbol attached to their usernames.

Read the full story on iGB North America.