Dent has held senior positions including chief finance officer since joining DraftKings in 2013, having been an early investor in the business and advisor following its founding in 2012.
Dent, who switched from CFO to chief compliance officer in 2019, will now move into the position of senior vice president of regulatory operations, and will continue to manage DraftKings’ relationships with regulatory authorities before transitioning to a consultant role later in 2021.
Jennifer Aguiar, previously vice president of compliance and risk, is to replace Dent as chief compliance officer and will report directly to Jason Robins, DraftKings’ co-founder, chief executive and chairman.
Under the partnership, Epic will provide awareness, education and risk management programmes to CSPPA members. The organisations will also team up to launch research projects related to gambling awareness within the world of competitive esports.
“We’re delighted to announce such a landmark agreement,” Epic chief executive Paul Buck said. “I must applaud the leadership of the CSPPA for taking a lead in esports around the threats of gambling harm, and we are very excited to launch a first of its kind agreement between an esports players association in this space.
“At Epic, we have a proven track record of working with athletes to make them aware of the potentially destructive financial implications and health issues that out-of-control gambling can cause.
“The work we do covers harmful products and practices and enables athletes to make well-informed decisions, reducing distraction, in addition to educating them on betting integrity issues and their potential problems that out-of-control gambling can cause.”
Buck added that the growth of esports betting has meant that many more people may now be at risk of being affected by problem gambling, and so it was important to educate those involved in esports about responsible gambling.
“The proliferation of gambling on esports and the growth of this sector shows that there’s a broad demographic of people, which include esports players themselves, their fans, audiences and commercial entities who could be at-risk to problem gambling,” Buck said.
“In our conversations with the CSPPA, we’ve been made aware of the potential issues related to gambling addictions in professional CS:GO. This partnership now means that CSPPA is engaged with EPIC to raise awareness of these issues and help its members with any gambling-related problems along with the convergence between esports gaming and gambling.”
The deal follows an announcement by online betting and gaming giant Entain that it had expanded its partnership with Epic and formed a new partnership with the CSPPA as part of an effort to extend its responsible gambling initiatives to video gaming and esports.
Epic has taken other steps towards expanding their programme into esports, including hiring Jonathan Peniket as an esports and online gaming consultant.
“The CSPPA understands that elite athletes, including CSPPA Members, are potentially more vulnerable to gambling addiction and betting integrity issues,” CSPPA chief executive Mads Øland said.
“The CSPPA is committed to protecting its members from the potential harms of gambling addiction, which not only harms the individual both financially and with regards to mental health but also exposes and makes players vulnerable to further abuse relating to betting integrity and match-fixing.
“We are delighted to be working with EPIC on a multi-year collaboration as they are recognised as the leading organisation globally for gambling awareness and have conducted proven programmes across many mainstream traditional sports at an elite level.”
Developed by Sportradar Integrity Services, UFDS will build on its existing bet monitoring service, which monitored more than 600,000 sporting fixtures in more than 1,000 competitions in 2020.
The new system will be funded by Sportradar itself and the supplier said it will be available to all of sport, in a move it says will strengthen the integrity of global sport.
Sportradar said the system – which has been backed by the International Olympic Committee (IOC) – has been developed in consultation with its existing fraud detection partners, and it will seek to liaise with other sporting bodies in the lead up to the UFDS’s launch in October.
Carsten Koerl, Sportradar Group chief executive, said: “We believe that integrity is fundamental to public confidence in sport, and that wrongdoing at any tier of competition affects all levels of sports and its fans.
“Today marks a very special day in the history of our company, as we announce the upcoming launch of our core bet monitoring system, at no financial charge to any sports federation or league that wants to use it. By making this significant investment in integrity via the UFDS initiative, we are demonstrating our commitment to support the sustainability of sport around the globe.”
The IOC’s Olympic Movement Unit on the Prevention of the Manipulation of Competitions said the UFDS initiative can have a significant impact on integrity standards across global sport.
“Utilising this substantial investment by Sportradar with its proven and reliable bet monitoring of the global betting market can be the foundation for a holistic integrity programme,” it said.
“Therefore, all sporting organisations are reminded once again, that an all-encompassing approach – as in the OM Unit PMC’s specific ’3 Pillar Strategy’ – is fundamental in order to achieve sustainable and long-term results.”
Sportradar said more than 5,300 matches have been classified as suspicious by its current bet monitoring service over the past 15 years. Sportradar Integrity Services has supported over 400 successful sporting disciplinary sanctions, and over 30 successful criminal convictions against those who have sought to corrupt sport.
According to figures from Delaware Lottery, which regulates gambling in the state, the three licensed premises generated a combined $738,500 in the first month of 2021, which was up 5.7% on December.
Johnson joined the business as chief commercial officer after successful periods in senior roles at Cryptologic, game design studio NextGen Gaming and B2B gaming supplier NYX Gaming.
ReelPlay’s former chief executive, Scott Smith, who joined the supplier alongside Johnson in 2018, remains with the business in a board and advisory capacity overseeing the ReelPlay group studios.
The supplier said it has experienced significant growth since both Johnson and Smith arrived, after the pair implemented the transition of the business from Chance Interactive to ReelPlay, as well as reaching a number of commercial milestones.
“I’m delighted to be given the opportunity to continue to drive the business forward as CEO,” said Johnson.
“With great credit to Scott, the founders and the team at ReelPlay HQ, the business is perfectly positioned to capitalise on the solid foundations we’ve placed over the last couple of years.
“We look forward to continuing to build on ReelPlay’s solid existing partnerships whilst focussing on expanding into new markets and verticals.”
ReelPlay games are now available to customers in New Jersey and Michigan via the company’s partnership with SG Digital.
In Europe, the supplier continues in core markets with distribution partners SG Digital, Relax Gaming Yggdrasil and Playzido, while a new licensing arm drives value from distributing ReelPlay content to partners.
The IBIA said it has teamed up with the body as part of its plan to expand its network to meet the challenges of a changing world of customers and products and the increasing spotlight on equality issues within the world of sport.
It added that the partnership will bring together the worlds of sports integrity and diversity to help foster a more sustainable approach to the industry.
Khalid Ali, chief executive of IBIA, said: “The demographics of sports betting is changing and, as an industry, we need to be aware of the opportunities and challenges this presents.
“The collaboration with the All-in Diversity Project has two main objectives; the first is to promote diversity within the betting industry; the second is to understand how the wealth inequality in women’s sports could lead to integrity concerns.
“By working together, we hope to tackle these issues through a series of events and studies that we have planned for the next few years.”
Launched in 2017, the All-In Diversity Project’s founding members include operators such as Paddy Power, Caesars Entertainment and Kindred Group, as well as suppliers Microgaming and GiG. Since then, it has also agreed strategic partnerships with organisations such as Clarion Gaming and Oxford Brookes University.
Kelly Kehn, co-founder of the All-In Diversity Project, said: “Having the IBIA support the All-in Diversity Project is a huge leap forward for us.
“Collaborating with standard-setting global organisations such as IBIA means we can accelerate progress and engage with a wider audience to address some of the challenges faced by sports and sports betting – from the hidden impact of inequality on integrity, to the more obvious issues related to gender and race within the entire sports and betting ecosystem by sharing data, resources and experience and developing tools that work.”
The announcement comes just days after IBIA revealed it reported 270 suspicious betting events to the relevant authorities in 2020, up 47.5% year-on-year, as reports for esports and table tennis skyrocketed with other sports suspended.
Playtech had previously entered the US market through deals with Bet365 and MGM and Entain joint venture BetMGM in New Jersey, but this will be the first foray out of the Garden State for the technology giant’s US arm.
Greenwood – which operates the largest casino in Pennsylvania, as well as online sports betting and casino in Pennsylvania, online casino and retail sports betting in New Jersey and retail sports betting in Michigan – currently uses GAN for its igaming platform. However, the deal will see it migrate to Playtech’s product.
In addition, Greenwood Racing will launch a new igaming product in Michigan, where Playtech has already received a platform licence, as well as Indiana, where the Parx brand had already announced plans to launch.
As we look to the year ahead, industry experts share their thoughts on the opportunities and challenges facing the industry.
In part two we talk to land-based operators and suppliers. In part one we heard from igaming operators and suppliers, while in parts three to eight we will cover finance, marketing, people, technology and innovation, regulation and social responsibility.
Interviewees
Brendan Bussmann, partner, Global Market Advisors Johannes Gratzl and Ryszard Presch, members of the executive management board, Novomatic Frank Kennedy, senior VP of casino operations, Four Winds Casino George Papanier, president and CEO, Bally’s Corporation
Looking back at 2020, what – other than the Covid-19 pandemic – did you feel was transformational for the industry? And how much of a lasting effect do you think the Covid-19 pandemic will have going forward?
Brendan Bussman
Brendan Bussmann: The great shutdown and the pandemic will have long-term effects on the industry as it was forced to innovate at a faster pace to adapt to the changing conditions. Many of the health and safety measures that have been put in place today will continue on in the years to come, but more important innovations such as cashless and the supplanting of sports betting and igaming to land-based operations will be other revenue generators that have transformed the industry. Other aspects like reimagining the buffet, meetings and conventions will continue to evolve in the years to come.
Johannes Gratzl: Covid-19 had such a massive impact on 2020 that it is difficult to identify any other transformational event or development. Everything last year was either directly or indirectly related to the pandemic. The outbreak of the coronavirus at the beginning of 2020 and the related measures practically led to a standstill of our daily business on a global scale and posed previously unknown challenges to our private lives and our business realities.
The biggest indirect effect it had on our industry is the absence of gaming shows, which used to be pivotal events for an industry that is used to frequent gatherings and personal contact and that also deals with a commodity that relies strongly on the actual look and feel and the emotional impact of the product. Instead, companies had to develop new strengths in developing digital presentation skills. That was certainly transformational for product presentation.
In terms of industry segments, the general trend in the gaming industry towards mobile, social and online gaming persists and has, of course, accelerated. Especially during the periods of complete lockdown we saw growth in the online segment.
Frank Kennedy: The pandemic was certainly transformative to our business. Initially we took the approach of putting all safety measures into place but thought of it as more a temporary issue until things normalised.
As awareness grew and the longevity became clearer, we refocused our efforts into making the property more visually appealing and adaptable over time. We are implementing concepts that promote social distancing, but through improved designs rather than hard dividers and turned off games.
The lasting effect on our retail initiatives could be that activity is much slower to return. Dining, entertainment, conventions and other non-gaming amenities are all being evaluated for size and scope.
George Papanier: Without a doubt, the most transformational aspect of the US gaming industry in 2020 was the explosive growth of sports betting and online gaming. Over the past year, we witnessed a significant number of states pass legislation authorising sports betting and online gaming, with many more states set to consider pending legislation in 2021. As a result, I think that the development and diversification of these offerings will continue to have a monumental impact on the US gaming industry, providing tremendous opportunities for growth and expansion.
As for Covid-19, while I do think that it will have a lasting effect on certain social behaviours and norms, I am confident in the US gaming industry’s ability to adapt and bounce back from the pandemic, especially for those regional providers with diversified offerings. In fact, one need look no further than Bally’s third quarter financial results to see that even in the midst of the pandemic, consumer appetite for US gaming products remains strong.
Ryszard Presch: Realistically, we expect full business operations to resume from the second half of 2021, although even then we anticipate subdued demand in the gaming technology sector. In terms of new equipment purchases, operator budgets for upgrades and new acquisitions are greatly reduced due to operators’ losses.
Having said that, there were and still are also many examples from countries all over the world where operators were actively using the lockdown phases to evaluate their machine estate and fine-tune game offerings, machine placements and other tiny details to make their product portfolio even more attractive once guests are able to return.
As a producer and operator, we have really pushed our R&D processes and product development cycles to provide what the market needs once casinos reopen and players return. What both operators and players will need for a successful restart is a fresh impetus in terms of the games offer, and that is what we’re preparing. We are really focusing on the basics: player appeal, reliability and fun.
What do you feel is going to be a game-changer for the industry in the coming year?
BB: We are still early on in the recovery. While some geographic parts of the industry will recover more quickly than others, the game-changer initially will be how the consumer has adapted and operators have responded.
This includes a host of things including the blend between online/social gaming to more physical things such as smoking on the casino floor. All of these things will continue to evolve as we come out of this as an industry.
JG: Covid-19 is and will be a game-changer for the industry. Like many other gaming companies, Novomatic has been and will be affected by the circumstances, both as an operator and a manufacturer. In our international gaming premises we – like everybody else – have implemented safeguarding measures and hygiene protocols to create a safe environment for our guests and we strictly adhere to the individual local regulatory measures.
JOhannes Gratzl and Ryszard Presch
A return to a more relaxed situation really depends on the broad availability and effectiveness of vaccines. And even then, it remains to be seen how much of a lasting effect or “distancing trauma” these past months will have on consumers in general and whether they will continue to be wary of crowded spaces. That could have a big effect on the general leisure and entertainment industry, and specifically on the way operators lay out their gaming floors in the long run.
But the current safeguarding requirements will certainly have an effect on how hygiene protocols will be implemented in all sorts of environments with high customer traffic – like casinos. I am convinced that disinfectant dispensers at least will accompany us for a very long time and we will get used to seeing people wear masks in public. The real game-changer for the industry next year will eventually be the player. The whole industry relies on how fast players react to the hopefully changing circumstances.
FK: Speaking for the Michigan market, the launch of igaming will clearly be our largest initiative. With the uncertainty of when our physical properties will return to full operations, online gaming provides the best avenue to maintain revenues and allow our tribal government to continue citizen programmes.
GP: As more and more states continue to authorise mobile sports betting and online gaming, thereby supporting the growth of that industry, gaming owners and operators are going to be forced to evaluate their portfolios and business strategies, potentially altering their investment thesis. Bally’s has recognised this trend, which ultimately fostered our acquisition of Bet.Works and entry into a strategic media partnership with Sinclair Broadcast Group.
On the other hand, what do you feel could disrupt the sector or slow progress?
BB: One of the biggest challenges for the industry right now is its ability to plan for the future. While the release of a vaccine is a positive, the industry faces the disruptions of shutdowns, surges in cases and other political issues that stunt its ability to chart a solid path forward. The only two things that continue from the start of this to today are that it is uncertain and unprecedented.
Frank kennedy
FK: Throughout 2020 we witnessed how different markets (states) reacted to the pandemic. Without clear direction from state and federal governments, it will be difficult for operators to solidify a recovery plan. Another area of concern is how quickly the public finds comfort in vaccinations and large gatherings. While many of our guests have already expressed their willingness to continue gaming, larger retail initiatives remain on the sidelines. I don’t think we will be able to feel the recovery is complete until entertainment, conventions and other amenities are restored.
GP: As previously mentioned, new social behaviours in response to the Covid-19 pandemic could continue to have a disruptive impact on the industry. Operators must be prepared to handle near- and long-term changes, and quickly respond to ensure customer and employee safety.
RP: For every kind of business, there is only a certain degree of loss in sales that they can cope with. If the crisis continues in 2021 and we are faced with a third lockdown and if venues remain closed, it will severely affect the whole land-based industry at a certain time. There comes a point when we will see companies in the industry suffer irreparable financial damage and having to lay off employees or close down.
Therefore, for the gaming industry, as for many other industries, the return to normal business really depends on the availability of the vaccines. This is the crucial factor that could either greatly benefit or further disrupt the economy.
How can the major gaming destinations ensure a successful recovery in 2021? Or has the balance – both for customers and investors – shifted in favour of regional properties?
BB: Jurisdictions like Las Vegas will continue to face challenges in the short term with the recovery now delayed out until 2023. Until meetings and conventions – the business customer – return to the market, we will not see a long-term recovery. The regional markets will be able to recover in a quicker fashion and see that ‘V’ recovery we have seen in other sectors of the economy. Vegas, though, will take a long time to recover, as we saw from the Great Recession.
FK: The pandemic is just the most recent example of how regional properties are able to weather the crisis vs. destination markets. We saw similar shifts in the 2007-2008 financial and housing crisis. That event was purely financial and once markets stabilised and unemployment began to reverse, destinations became a consumer choice again. With a health crisis, casinos, entertainment and travel sectors are trying to overcome fear rather than funds.
They will need to work harder to gain back consumer confidence and that could reach well into the coming year. Just as many companies are rethinking the traditional office space vs. remote work, we see major conventions being replaced by virtual or regional experiences. The length of the pandemic is causing a change in both personal and company habits. Once learned and accepted it will be increasingly difficult to change new behaviours back.
George papanier
GP: I think that, at least temporarily, regional owners and operators are better positioned for a successful 2021. Those locations are particularly appealing in a post Covid-19 environment, especially for a drive-in customer base that does not need to rely on air travel. However, as national travel returns, as well as conferences and entertainment shows, I think that the major gaming destinations will quickly experience a successful recovery.
RP: Destination tourism is a very difficult topic currently, as it is very strongly dependent on travel. As long as travel restrictions persist, destinations will be at a loss and will have to rely on regional customers mainly. One could, of course, implement travel arrangements with exclusive availability to travellers who have a proven negative test result. A number of airlines have already considered similar transport policies. One thing is for sure: gaming destination guests will certainly expect not only gaming entertainment, hospitality and fun, but also and foremost safety for their health.
Once their health and safety can be safeguarded, guests will certainly accept attractive offers and return in great numbers. For most, it has been some time since they were able to travel and people are certainly longing for a change of scene and a return to their cherished travel patterns.
In a letter to Sports Minister Nigel Huddleston amid the ongoing Gambling Act review, Monzo chief executive TS Anil and representatives from academia and gambling charities also called for gambling firms to be ordered to disclose their bank account details on a central registry to empower banks and other providers to extend their gambling block to bank transfers made to gambling companies as well as card payments.
The group also said government should work with video game companies to see if it is possible to identify and block payments made for loot boxes: in-game features that have caused concern due to qualities similar to gambling.
“Ultimately, the Gambling Act review offers a unique opportunity to create a world-leading self-exclusion framework in the UK to reduce gambling harms, and help consumers gain control of their finances,” the group wrote.
“The rise in online gambling, and new ways to pay, requires a robust response from the Government. These small changes, in combination with other, existing self-exclusion tools, would help the UK to create world leading harm-reduction standards.”
As well as Monzo’s Anil, the letter was co-authored by Prof Sharon Collard, the chief executive research director of the University of Bristol’s Personal Finance Research Centre, and executives from NHS Northern Gambling Service, National Problem Gambling Clinic, Gamban and Gamfam.
The letter cites research from the University of Bristol which recommends a ‘self-exclusion triangle’ consisting of three key tools, including card-based gambling blocks.
According to the letter, at least eight major banks already offer some form of gambling block service but some of the tools available apply only to certain types of account or card. A GambleAware report last year found that about 40% of current account customers in the UK still do not have the option to use a gambling block.
Monzo says it has 275,000 users with active gambling blocks, with fewer than 10% of customers deactivating the block once activated.
“We believe the Government should take the opportunity afforded by the Gambling Act review to make sure every consumer in the UK can access these blocks – regardless of who they bank with,” the group wrote.
“These tools are simple to build, proven to work, and will help protect hundreds of thousands of people.”
In December, UK Culture Secretary Oliver Dowden announced a wide-ranging review of the country’s gambling laws.
Online restrictions, marketing and the powers of the Gambling Commission will be looked at as part of a call for evidence, to examine in detail how gambling has changed in the 15 years since the Gambling Act 2005.
Protections for online gamblers like stake and spend limits, advertising and promotional offers and whether extra protections for young adults are needed will all be explored.
Dowden said: “Whilst millions gamble responsibly, the Gambling Act is an analogue law in a digital age. From an era of having a flutter in a high street bookmaker, casino, racecourse or seaside pier, the industry has evolved at breakneck speed.
“This comprehensive review will ensure we are tackling problem gambling in all its forms to protect children and vulnerable people. It will also help those who enjoy placing a bet to do so safely.”
The Commission in November launched a consultation seeking feedback on its plans to introduce requirements for licensed operators to act on the information they have about a player’s potential vulnerability.
This included operators having to put in place stronger requirements, such as defined affordability assessments at thresholds set by the Commission.
However, the three racing organisations have hit out at the proposals, saying they had deep concerns about the impact such a move could have on the racing sector, which suffered heavy losses in 2020 due to Covid-19.
“A majority of our work, and of leaders across the industry, is currently focused on a range of financial issues that are vital to racing recovering from the impact of Covid-19,” BHA chief executive Julie Harrington said.
“We have to plan for a range of possibilities and are working with government and other sports on the return of spectators and owners as soon as that is possible.”
The plans were put forward around the time the government made a separate announcement that it would undertake an evidence-led review of the Gambling Act, with a view to bring this up to date with the market. The current version of the Act came into law in 2005.
The three organisations said they would be keen to work with the government as part of the Review to establish new laws that are suited to the modern market and also recognise the economic contribution made by betting and associated industries such as horse racing.
The bodies also said they would have dialogue with operators as part of their strategy to gather evidence to demonstrate the case for reform as part of the Review.
RCA chief executive David Armstrong said: “Racing is approaching the most critical period since the beginning of the pandemic. With external regulatory issues facing us in the form of the Affordability Review, the Gambling Act Review and Brexit, plus no immediate prospect of race-goers returning, the next six months will be the most crucial period on our recovery journey.”
Racehorse Owners Association chief executive Charlie Liverton added: “The effect of Covid-19 continues to impact British racing, both on and off the racecourse. The potential ramifications of government reviews including the Gambling Act and the Affordability Review are concerning.
“The return of owners to the racecourse remains a key objective, working with the RCA and BHA to open up racecourses to race- goers as soon as regulations allow.”
The racing organisations are the latest leading voices in the gambling industry to flag their concerns over the affordability checks. The Betting and Gaming Council said such proposals could risk forcing ordinary punters towards the black market, should these checks on their income prove too intrusive and onerous.
The Gambling Commission has previously looked to play down the prospect of players migrating to offshore sites.
