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EXCHANGE MART: Ladbrokes isn’t the only firm emerging this month – Matchbook is back
PLAYING ON: How the live betting sector continues to innovate and drive forward revenues
BETTING NEWS 10
ESSENTIAL GUIDE 18
PUNT OR PINT? : Recent research has found that betting is more popular thank drinking AGENDA 45
£5.20 (€8.30) • ISSUE:111 • DECEMBER 2013 • www.betting-business.co.uk
Will New Jersey be the big state that starts a domino effect around America for legalised online gaming?
BETFAIR IS IN NEW JERSEY THANKS TO TRUMP PLAZA ASSOCIATES
High gambling taxes would hit UK economy TAX
nline gaming has finally been launched in the US state of New Jersey. While it is the third state to allow online gaming, it is by far the most populous and will provide a good snapshot of how a competitive legal online gaming industry will work in the US. Atlantic City casino operators Caesars, Bally’s, Trump Plaza, Borgata, Tropicana and Trump Taj Mahal all had casinos up and running on the opening day 24 November, all with the help of a European-based igaming partner. It seems that co-opting this expertise paid off with a stress-free launch day. Betfair has launched www.betfaircasino.com under an agreement with Trump Plaza Associates LLC, a New Jersey Internet Gambling permit holder, and the firm already has over four million registered customers thanks to its USbased TVG horse racing television network. TVG is also the platform provider for 4NJBets the only horse racing accountwagering platform available to New Jersey residents. Although there have been calls from some of the incumbent gambling businesses for ‘bad actors’ to be excluded from the US market for previous transgressions, Bwin.party has been allowed to play too thanks to a deal with the Borgata Hotel Casino and Spa. Approval has
alum Macaulay, managing director of national radio station TalkSPORT, has warned the government that any measures that negatively impact the gambling industry will cause ripples through the UK economy. Speaking at the Remote Gambling Association’s AGM last month, Macauley demonstrated the importance of the gambling sector to the country’s media using simple figures showing how much the sector contributes via advertising. In 2009 1.3 per cent of UK expenditure on advertising was provided by the gambling industry and within four years this figure has grown to 2.1 per cent. For TV, 3.1 per cent of TV advertising is provided by the gambling industry, while online that figure jumps to 4.4 per cent. While these percentages might seem small, they are significant parts of an industry worth many billions of pounds. As Macaulay put it: “For every £100 spent on television advertising, £3.10 has come from the gambling industry.” Macaulay argued that the involvement of gambling firms in an advertising capacity provided a virtuous circle: “The investment into sport from the likes of gambling companies and others fuels good quality sports events, which means big crowds, which brings demand from television, which in turn fuels interest and that boosts advertising and sponsorship revenues. In all shapes and forms, for us advertising revenues from gambling companies are very important.” With the point of consumption legislation currently being debated in Parliament, there is a lot of talk about the taxation levels and how the proposed 15 per cent GPT will be unsustainable for many operators. Macaulay’s warning was clear - restricting the gambling industry’s financial capacity to advertise will adversely affect the rest of the economy.
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Regulated online gaming starts in New Jersey come at some cost though with the company and some of the principles behind PartyPoker coughing up nine figure fines to US authorities since UIGEA. In fact the US Department of Justice has comfortably received over US$1bn from former US-customer facing operators. Bwin.party CEO Norbert Teufelberger said: “This is an historic day for us. It marks our return to the United States after an absence of seven years. Back in 2006, Partypoker had an estimated 47 per cent market share in the US and we have worked hard to ensure that our return delivers a truly great customer experience.” Online gaming has also launched with rather less
www.microgaming.co.uk/mobile
fanfare in Delaware where 888 and Scientific Games have supplied the Delaware Lottery with internet gaming systems and services in the state for an initial term of five years. 888 CEO Brian Mattingley commented: “Following our recent successful launches in Nevada and Delaware, full operational approval from the DGE for our casino and poker products in New Jersey marks our latest milestone in our US venture. This is a remarkable achievement for 888, which further strengthens our position in the U.S. as the only gaming provider live in all three regulated states.” Despite all the hullabuloo, a recent Facebook survey of over 300 gamblers in New Jersey
found that half of them knew nothing about the casinos’ plans to go online, and that a significant portion of online gamblers in the state are already playing at offshore sites. “While the new legal Atlantic City brands will have lots of new competition from their friends all along the Boardwalk, they’ll also need to shift players from incumbent ‘offshore’ operators,” Alex Czajkowski, creator of the survey and founder of egaming consultancy Agency LEX. “Over 39 per cent of respondents are playing online poker now, 50 per cent of those in the past year. And 25 per cent are playing online casinos, 42 per cent of those have played online for real money in the past year.”
GAMBLING ADS Igaming News 8
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News Government not listening on gambling legislation The Point of Consumption licensing bill may have huge implications for regulators, operators and players, but it seems the UK government is just hell bent on getting £300m a year in taxes.
CLIVE HAWKSWOOD: ‘THE GOVERNMENT IS NOT REALLY IN LISTENING MODE’
LEGISLATION
emote Gambling Association CEO C l i v e Hawkswood has warned that the government is not listening to any points being made by any stakeholders as it rushes the Gambling (Licensing and Advertising) Bill through Parliament in order for it to be installed by the end of next year. Speaking at the RGA’s AGM in Westminster last month, Hawkswood explained that while the point of consumption licensing elements of the Bill wouldn’t cause its members too many problems, it is the associated tax regime that is the danger. He commented: “We can argue about the different motivations for introducing these changes but the practical impact for the industry is much more about tax than licensing. There we are talking about two things primarily, the rate of the point of consumption tax and the treatment of bonuses and incentives; both are fundamental to how well the regime works in the future.” Hawkswood cited a number of reports suggesting that anything higher than a 10 per cent gross profits tax figure would cause ‘almost irreparable damage’ to the industry and also go some way to establishing a
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thriving black market. Indeed, the Treasury’s own figures only suggest it will capture 80 per cent of the market. Hawkswood added: “The bigger that black market is, the worse it will be for the licensed operators and the worse it will be for consumers who quite simply will be moving from jurisdictions where players are already well protected to jurisdictions where they won’t be. I think we found that the government is not really in listening mode with any of this and are ploughing through irrespective of anything put before it.” However, it is a totally different situation in Europe where the level of debate is ‘horrific’ according to Hawkswood. He also questioned what use the Commission has been to the industry after all these years: “We’ve been talking about infringements since god knows when and the truth is that I can’t think of one case that has actually led to any concrete benefits. It’s great that the European Commission is keeping up the pressure but I think for us you’ve got to ask at what point does that lead to real change? The internal market doesn’t exist for us; for the online gambling industry that was a dream that died many years ago.”
BettingBusinessInteractive • DECEMBER 2013
Hawkswood said that the recent discussions over the Anti Money Laundering Directive exposed ‘absolutely shocking and horrific views’ about online gambling and suggested that the industry ought to be wary of an organisation containing such beliefs. “There have been some gradual improvements but still after all these years the level of debate in Brussels is just awful. That should be a warning sign for all of us. I know there are lots of people who believe in harmonisation as a principle. The harmonisation of gambling regulation across Europe and it's great to have ideals. But I think sometimes you have to be careful what you wish for. If harmonisation is introduced in the basis of any of those reports, our industry as we know it would be completely destroyed.” While Hawkswood concedes that the shift to national regulation and licensing wasn’t the remote industry’s first choice of models, it actually allows business to progress rather than be stuck in limbo. “There are markets now and companies instead of having to wait for this Big Bang approach can actually now go and get a licence and operate in a viable way. And that’s as good a target for us in the short term.”
ANALYSIS Clive Hawkswood believes that if there ever was harmonisation then it would be some way down the road and by that time there would be an element of natural harmonisation anyway. He explained: “2018 has been mentioned but I think it will be longer than that based on experience. I think where we will get that is when most of the member states have licensed in some way. Good practice will be shared between regulators, although tax will be completely off the table as they would all want to retain their own share. There will be common standards almost by default as each of the jurisdictions license.”
FORMER PLAYER DELROY FACEY IS ONE OF THE MEN REPORTEDLY ARRESTED BY THE NCA
Men arrested o of fixing Englis
While it seemed for a while that the English league have been arrested on suspicion of manipulating INTEGRITY
n undercover report by the Daily Telegraph has seen six men arrested on suspicion of fixing football matches in England’s non-league divisions. The accused include at least three footballers and Delroy Facey, a player-turned-agent who has played in the Premier League. The newly formed National Crime Agency commented: “The focus of the operation is a suspected international illegal betting syndicate. The NCA is working closely with the Gambling Commission and the Football Association. This is an active investigation and we are unable to provide further detail at this time.” In a series of covertly recorded conversations, Telegraph reporters met with an ‘internationally known fixer’ who claimed that lower league matches
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could be fixed for as little as £50,000 and correctly forecast the outcome of three games played by the same team. The fixer, from Singapore, claimed that his associates made money by betting on the unregulated Asian markets and paid players to guarantee four or five goals in a match. He also claimed that he would pay one player an extra £5,000 to take a yellow card at the beginning of the game as a signal that the match’s result was likely to be manipulated. The Football Association has not had much to say so far. It commented: “The FA has been made aware of a number of arrests in relation to an NCA (National Crime Agency) investigation. We have worked closely with the authorities in relation to these allegations. The FA will make no
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Boylesports mops up Flood John Boyle, the chief executive and owner of Boylesports. “As for Tom Flood customers, they can expect that their local betting shop will now offer a greater range of betting opportunities with the same great service while enjoying the best facilities within the betting industry.”
LADBROKES WON A LICENCE ON APPEAL FOR A SHOP OPPOSITE UXBRIDGE TUBE STATION
ACTION IMAGES / JOHN MARSH LIVEPIC
Boylesports has acquired Tom Flood Bookmakers Ltd, an Irish bookmaking chain with seven outlets concentrated in the Dublin region, bringing its own estate up to 192 and firmly establishing it as the country’s second biggest bookmaker. “We are delighted to welcome the 39 staff of Tom Flood Bookmakers to Boylesports,” said
Ladbrokes wins licence on appeal and £32,000 costs
ed on suspicion nglish matches
nglish leagues would resist the contagion of corruption, six men anipulating non-league matches.
further comment at this time due to ongoing investigations.” Earlier this year the Gambling Commission’s Sports Betting Intelligence Unit (SBIU) informed the FA of suspicious betting activity on a number of matches played in the Football Conference South. This led the FA to contact all clubs playing in the Football Conference South to remind their players and officials of their responsibilities under the FA’s betting and integrity rules. Meanwhile, on a more parochial level, a father and son who were convicted of operating as loan sharks have been ordered to pay back all of their available assets to the courts, following a financial investigation by the England Illegal Money Lending Team, working in partnership with Lancashire Trading Standards.
James Alston Senior from Preston, Lancashire had assets amounting to £242,522, whilst is son James Alston Junior had assets amounting to £70,761. In a judgement from HHJ Stuart Baker last month, they must pay back this amount before May 2014 or Alston Senior will face a default sentence of 33 months in prison and Alston Junior will face a default sentence of 18 months in prison. This is in addition to a forfeiture order of nearly £20,000 which was seized from the pair by the Gambling Commission earlier this year. In July 2012 James Alston Senior now aged 75 and James Alston Junior now aged 46, were sentenced after being convicted of charges of illegal money lending, money laundering and possessing criminal property from the proceeds
of acting as an unlicensed bookmaker. Senior was sentenced to 18 months in prison and Junior was sentenced to 12 months in prison. The criminal investigation and prosecution was led by the England Illegal Money Lending Team working in partnership with the Gambling Commission and Lancashire Trading Standards. Nick Tofiluk, director of regulatory operations at the Gambling Commission, said: “Working with partners to target the proceeds of crime is an important strand of the Gambling Commission’s approach to keeping gambling crimefree. We welcome this significant award which sends a strong message to criminals engaging in illegal gambling that the proceeds from gambling-related crime can be effectively pursued.”
PLANNING
he controversy over planning laws for betting shops continues apace, with campaigners lobbying for additional powers for councils to block bookmakers opening shops. But a recent victory on appeal by Ladbrokes for a new site in Uxbridge demonstrates that all too often a local council’s motivation for blocking planning is political and has no evidence base. In September Ladbrokes applied to the London Borough of Hillingdon for a betting licence in the pedestrian centre of Uxbridge, adjacent to the underground station and the retail heart of the town. However, Hillingdon refused the licence based on a number of locational factors including that fact this was a high profile, pedestrian area extensively used by children, adjacent to family-oriented cafes and that it was in the same locality as drug and alcohol treatment facilities and drop in centres. Hillingdon also said that the proposal was inconsistent with the character of the area and suggested that other bookmakers had suffered problems with drug deals in their vicinity, and that the Borough were not prepared of taking the risk of it happening on the high street. However on appeal, the Magistrates’ Court overturned Hillingdon’s decision and granted a licence without con-
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ditions. It held that there was no reason to believe that granting the licence would be a cause of crime and disorder, bearing in mind the fitness of the operator and its policies and operating procedures. The Court was content that Ladbrokes’ method of operation and the procedure for statutory review would address any concerns regarding public disorder or crime. It even made a costs order in favour of Ladbrokes in the sum of £32,000. Philip Kolvin QC, who acted for Ladbrokes, commented that this case demonstrates the critical importance for councils to support their decision with proper evidence on appeal. If they do not, they risk an order for costs, however sound their decision may have appeared at the time. The Court took into account the principles from the City of Bradford MBC v Booth. It held that while the original decision had been within the powers of the Council to make, the rationale of the decision had not been supported by the evidence. Accordingly, the Court held that the Council’s decision in refusing the licence was unsound, and further that examination of Ladbrokes’ case should have shown that the Council’s case, as prepared for court, would not succeed. LICENSING MATTERS Comment 40
BettingBusinessInteractive • DECEMBER 2013
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igaming Vernons sold ahead of Point of Consumption tax Sportech has offloaded its Vernons.com egaming operation to an open armed NetPlay TV ahead of the UK’s change in taxation. M&A
nteractive gaming group NetPlay TV has diversified with the acquisition of Vernons.com, the e-gaming division of Sportech plc. Vernons.com operates an online casino, bingo, poker and sportsbook, and the acquisition includes the brand, customer database and various other gaming assets. NetPlay TV is paying a total consideration of £3m for the business, although Sportech has agreed to contribute £100,000 towards restructuring and integration costs, so keen is it to streamline its own operation. The firm believes there are significant synergy opportunities which will ensure efficient integration and immediate profitability. Vernons draws the majority of its revenue from online casino, operates on the same software platform as NetPlay, and both parties have operations in Guernsey. NetPlay’s CEO Charles Butler said: “The acquisition, which will be immediately earnings enhancing, fits very well with the group’s core business, adds scale and customer reach, and will be integrated
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quickly and efficiently to realise the excellent operational synergies. “This represents the acceleration of our strategy to grow through both organic growth and strategic acquisitions. We look forward to investing further in our proven marketing strategy for Vernons.com alongside our existing brands and continuing to drive value for shareholders.” The acquisition provides the Group with further product differentiation, and it will cross market its existing live roulette TV product by offering it to Vernons’ customer database post integration. In addition, the Group has signed a memorandum of understanding which will enable it to offer Sportech’s football pools to NetPlay’s customer base. Vernons achieved an operating profit in the 12 months ended 31 December 2012 of £1.1m on total revenue of £4.8m. In the six months ended 30 June 2013, Vernons made an operating loss of £0.7m on total revenue of £2.8m. Sportech chief executive Ian Penrose added: “Our loss making Vernons casino, poker and bingo business has had a difficult year, and the impending introduction
of Point of Consumption tax next year increases the challenges ahead for a sub scale operation in an increasingly competitive marketplace. “We are delighted to have realised £3m in cash for the sale to NetPlay, who will be able to combine increased scale and market leading interactive gaming television skills to take the business forward. This is another positive step in increasing the focus of Sportech on operations where we hold competitive advantage, particularly those in the US.” Sportech bought Vernons from Ladbrokes back in 2008 for £47m in a deal that was referred to the Office of Fair Trading such was its potential impact on the football pools business. The acquisition united the two remaining football pools under the brand The New Football Pools, strengthening a product which had been in dramatic decline since the introduction of the National Lottery. However, brand and platform migrations undertaken in 2012 had a negative impact on the established customer base and the egaming side of the Vernons business and Sportech has since concluded that the operation is not of sufficient
scale. Given the option to invest further or acquire additional e-Gaming assets to derive an acceptable financial return or exit the business, Sportech has chosen the latter. The firm explained: “Given the investment opportunities in other parts of the business, including those presented by US online regulation and our exclusive horseracing betting platform in Connecticut, the board have decided to sell our e-Gaming business to a more focused and larger e-Gaming operator which can grow the customer base and better mitigate the impact of UK Point of Consumption tax when implemented in December 2014.”
ANALYSIS Apart from the legal threats mainly emanating from Gibraltar, this can be viewed as the first effect of the mooted Point of Consumption tax, which is on course for implementation next year. While some might argue that Sportech needed little reason to offload a loss-making division which had experienced little improvement through the year, the future 15 per cent drain on profits is a clear disincentive for the operator to even try and turn things around with some extra investment.
CHARLES BUTLER: VERNONS WILL BE ‘IMMEDIATELY EARNINGS ENHANCING’
32Red partners with more TV brands MARKETING
nline casino 32Red has continued its drive to be associated with popular television shows by signing partnerships with a pair of high profile ITV programmes. The firm’s bingo brand 32Red Bingo is now the sponsor of the The Paul O’Grady Show, which goes out for an hour every weekday. 32Red Bingo’s sponsorship idents will feature a chat show style sofa, with virtual guests, including ‘Two Little Ducks’ and ‘Legs Eleven’ as bingo themed animations. Mark Quayle, head of marketing for 32Red, said: “We are extremely pleased to be sponsoring the new
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888’s best not good enough for ASA
32RED BINGO IS SPONSORING THE PAUL O’GRADY SHOW ON ITV
series of The Paul O’Grady Show on ITV. It’s a fantastic fit for bingo with the demographic of viewers very similar to online bingo players.” The operator has also
BettingBusinessInteractive • DECEMBER 2013
signed a three-year deal with ITV Brand Extensions for exclusive rights to develop an ‘I'm A Celebrity... Get Me Out Of Here!’ online slot. The game, developed in con-
junction with Microgaming, uses the I’m a Celebrity...Get Me Out Of Here! iconography, the theme tune and features to bring the excitement of the show to a thrilling casino game for slots enthusiasts to enjoy. In addition to the exclusive slot machine, the partnership also allows fans of the show a chance to sample life down under with a competition to win an all expenses paid trip to the Gold Coast in Australia. Quayle commented: “We are very excited to release the ‘I'm A Celebrity… Get Me Out Of Here!’ slot, it’s an entertainment show that everyone knows and we are
confident that the association with such a strong brand will prove to be a huge success for us.” ITV’s director of commerce & ventures William van Rest added: “ITV is pleased to be working with 32Red on this fantastic brand extension for I’m a Celebrity… Get Me Out Of Here! The slot design brings the jungle and its creepy creatures alive with a great new game for 32Red players. We are sure it will be a very popular addition to the 32Red offer.” Earlier this year 32Red also announced a commercial partnership which has seen it sponsor the late night film on Film4.
88 parent Cassava Enterprises has been told not to make the claim that it has the ‘best VIP program around’ by the Advertising Standards Authority (ASA) if it can’t objectively prove the statement. PokerStars owner Rational Entertainment complained to the ASA that claims on a website that 888 has the best VIP programme, the best VIP promotions and the best benefits to Hugh Rollers, had not been substantiated. 888casino responded to the complaint by pointing out that its advertising claims were also similar to the advertising claims of many competitors, including the complainant, and that therefore consumers would understand, in the context of the online gaming industry, that the claims were ‘subjective puffery’. 888 said the claims used extremely broad language to convey their subjective opinion about their VIP program, promotions and hospitality, making general assertions about being the ‘best’ which would not be taken literally by consumers. They considered that the language used was so effusive and hyperbolic that consumers would understand that the claims were subjective puffery which represented 888casino’s opinion about their offerings, rather than objective statements. The ASA disagreed: “We considered consumers would therefore expect that 888casino had objectively compared the benefits of their VIP program with similar offerings from other online casino operators, and found their program superior to all others. Because we understood the claim had not been based on such an objective comparison, we concluded it was misleading.” It added: “The ad must not appear again in its current form. We told 888casino to exercise caution when making ‘best’ claims in future.”
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iGaming Probability takes social gaming cue
Bwin.party performance hits the ‘floor’
MOBILE
Bwin.party is one of several firms complaining about sports results, but the group is also struggling with a change of strategy to quality over quantity.
M NORBERT TEUFELBERGER: ‘PROGRESS IN RESPECT OF REDUCING OUR COST BASE’
RESULTS
Bwin.party CEO Norbert Teufelberger has described his firm’s third quarter performance as ‘the floor in what has been a transitional year for the group’. Total revenue in Q3 was down 21 per cent to 145.7m euro (£121.2m), which the firm has attributed to its strategic shift from ‘volume to value’, continued declines in poker ahead of its dotcom relaunch, ISP blocking in Greece and a softer than expected sports margin in September. Teufelberger commented: “Whilst year-onyear comparisons for the current trading period are also impacted by the factors, average daily revenue for the six weeks to 11 November is up 18 per cent versus the average for the previous quarter. All verticals have grown despite the continued impact of ISP blocking in Greece, although performance in sports was weaker than anticipated due to a softer than expected sports margin during the first three weeks of October. “We have made excellent progress in respect of reducing our cost base. We now expect to exceed the 70m euro (£58.2m) target for 2013 that was communicated at the beginning of the
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year and this will help us to mitigate some of the impact from Greek ISP blocking which began during August.” In poker, net revenue fell by 37 per cent year-on-year to 23.3m euro (£19.4m), partly affected by declines in several regulated markets that require ring-fenced player liquidity. However, things have been looking up after the launch of its new poker product in September, which has begun to have a positive impact on several key performance indicators. The firm said: “The product is proving popular with increasing numbers of players for both cash games and tournaments.” The shift from ‘volume to value’ and declines in poker continued to impact the operator’s casino business with the number of unique active players down 34 per cent year-on-year. ISP blocking saw the amount wagered on casino from Greek customers down 75 per cent in September, contributing to a 16 per cent decline in the total amount wagered in casino during the quarter to 1.65bn euro (£1.37bn). A drop in the average gross win margin to 3.8 per cent from 4.0 per cent reflected a shift in games mix towards table games. In bingo, total revenue
obile gaming operator Probability has launched ‘Daily Bonus Bonanza’ - a new daily promotion that brings a successful retention technique from social gaming into the world of real-money gambling for the first time, in both the UK and Italy. ‘Daily Bonus Bonanza’ gives players the chance to win a range of prizes just for logging in to their gaming account. Prizes are randomly selected and range from free spins and bonuses, to cash-back offers, deposit matches and cash awards of up to £500. Chief commercial officer Michael Byrne said: “’Daily Bonus Bonanza’ is a radically different approach to rewarding real-money players’ loyalty. The idea is almost universal in social casinos, where every player receives a daily reward of virtual currency. But no one has brought this basic gamification technique across to the real-money world until now. We are really excited about this and we know our customers are going to love it. “We’re rolling this out initially to our LadyLuck’s customers in the UK whilst we gauge reaction to this new concept and refine the rewards on offer. Our other brands and our White Label partners will have access to it soon. One of my goals is to ensure we tailor our
was down 18 per cent yearon-year to 12.2m euro (£10.1m) with challenging competitive conditions in each of Bwin’s main markets. The UK has been impacted by aggressive campaigns from competitors as well as a weakening of sterling versus the euro. It was a similar situation for the Italian bingo business as well as a 23 per cent yearon-year decline in the overall market. The Spanish bingo brand Binguez actually delivered a 22 per cent increase in revenue year-onyear although Spain remains small in the context of total bingo revenue. Sports betting revenues were down 10 per cent versus the prior year to 52.9m euro (£44.0m) reflecting the shift from ‘volume to value’ with the number of unique active players in the quarter down by 20 per cent. The gross win margin was up versus the prior year benefitting from a full period of the tax recovery from German players, as well as the increased proportion of wagers being made on combination bets in Germany. However, the resultant 9.1 per cent gross win margin was slightly lower than the company had expected following a poor run of football results in September.
ANALYSIS Bwin.party has suggested it is going to concentrate on its mobile offering to help boost coffers. The firm explained: “Our efforts to expand our mobile footprint have been rewarded with a marked uptick in the proportion of our business now coming through mobile and touch. As we continue to roll out more extensions, we expect to grow sharply the proportion of our business coming through this channel. We believe that we will see similar growth from mobile in our core markets that competitors have enjoyed in their core markets of the UK and Nordic countries.”
Rational Group plays Greek game GREECE
n one of the seemingly few instances of the Greek government working with a gambling organisation not called OPAP, the Rational Group has moved its PokerStars and FullTiltPoker brands onto .GR websites and has introduced a daily withholding tax on winnings. Under the Greek laws,
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players who win over 100 euro during a day’s play are taxed at 15 per cent, while those who pick up more than 500 euro get slapped with a 20 per cent tax. Because the tax is taken on a daily basis, players are unable to balance their winnings against their losses over a period of time, making it a very expensive
BettingBusinessInteractive • DECEMBER 2013
exercise for players. According to PokerFuse, Rational is operating legally under license in the country, due to a partnership with Diamond Link Ltd, which holds an interim licence until Greece officially issues full ones. The Greek sites will share liquidity with some of the operator’s international
sites although certain large prize pool tournaments are hidden by default and unavailable to Greek players. The arrangement explains why the only Rational Group website in the Greek government’s list of 400 gambling websites to be blocked by ISPs was a PokerStars blog.
CHARLES COHEN: ‘ANOTHER TECHNOLOGY FIRST FOR PROBABILITY’
White Label offering to the different profiles of each of our partners and this new service will give us flexibility with a distinctive offer, which no one else in the market can touch.” Each day, the first time a player logs in to their account they will be presented with a personalised, animated ‘Daily Bonus Bonanza’ screen. This displays prizes up for grabs that day and has a big red button on it, which players are invited to tap to stop the animated sequence. Once the animated sequence comes to a halt that individual player’s daily prize is revealed. A complex new set of maths behind the scenes ensures players are presented with, and have the opportunity to win an appealing variety of prizes. CEO and co-founder Charles Cohen added: “This initiative is another technology first for Probability. Our customers enjoy playing at social casinos, and many tell us that its features like daily bonuses that keep their attention, even though they’re not playing for real-money prizes. But we have the killer app; the millions we pay out in prizes. Our ‘Daily Bonus Bonanza’ continues to support the ongoing convergence between the entertainment experience of social casino and realmoney gaming.”
gaming@callcreditgroup.com www.callcredit.co.uk/gaming
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iGaming Bingo dominates UK TV gambling adverts
iGAMINGBRIEFS
BINGO WAS THE BIGGEST SEGMENT OF THE GAMBLING INDUSTRY’S TV ADS
IN LUCK
While there is much concern over sportsbetting adverts, the product is actually advertised on television the least, with bingo taking the market share. MARKETING
ingo is the most heavily advertised gambling product on British television according to new research released by Ofcom. Of the 1.39m gambling TV adverts in 2012, 532,000 of them were bingo adverts - not really surprising given the freedom of bingo operators to promote their wares before the 9pm watershed. Indeed, the majority of bingo commercials were shown during the daytime, with 69.2 per cent of TV spots shown between 6am and 5pm in 2012 Ofcom commissioned the analysis earlier this year to look at the volume, scheduling, frequency and exposure of gambling advertising on UK television. This was done to help inform itself about how television gambling advertising has changed since the market was liberalised by Parliament in 2007. The research is based on analysis of BARB viewing data and categorises gambling adverts into four types: online casino and poker services; sports betting; bingo; and lotteries and scratch cards. The research found that the total number of gambling advertisement spots shown on television increased
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from 152,000 in 2006 to 537,000 in 2008 after the market was liberalised, reaching 1.39m in 2012. Of all gambling advertisements on television in 2012, there were 532,000 bingo adverts; 411,000 adverts for online casino and poker services; 355,000 adverts for lotteries and scratch cards; and 91,000 sports betting adverts. In terms of shares of each type of gambling service in 2012, bingo accounted for 38.3 per cent of adverts; online casino and poker services were 29.6 per cent; lotteries and scratch cards represented 25.6 per cent; while sports betting adverts accounted for just 6.6 per cent of the total. Gambling accounted for 0.7 per cent of all advertising spots across commercial television in 2006, compared to 1.7 per cent in 2008 and 4.1 per cent in 2012. The research found that adults’ exposure to gambling advertising has increased over time. In 2006, there were 8bn ‘impacts’ - the number of times an advert was seen by viewers. This grew to 30.9bn impacts in 2012, when gambling adverts accounting for 3.2 per cent of all advertising seen by adult viewers.
There is current controversy over the exposure of gambling advertisements to young people, particularly those who watch live sport on TV as betting firms are allowed to advertise around them ahead of the watershed. But the data found that more than 84 per cent of all betting adverts are shown after 9 pm, with nearly 60 per cent shown after 11 pm. Sports channels accounted for the largest share of Gambling Sports spots, with this channel group representing 41.8 per cent of spots in 2012. Unusually music channels accounted for a further 29.2 per cent of spots. Almost half of all bingo advertising seen by adult groups was on the terrestrial channels, with a further fifth on the portfolio channels, such as ITV2, E4 etc. The overall share represented by the channels fell between 2009 and 2012 as exposure across the ‘Other’ channels increased. While 20.4 per cent of Online Casino and Poker spots were shown between 2100-2259 in 2012, over a third of impacts were seen during this slot as a result of a higher proportion of viewing during this time, compared with viewing between 2300-2959.
ANALYSIS The government has said that it is already exploring a range of issues on gambling advertising with Ofcom, the Gambling Commission and the Advertising Standards Authority. While those regulators have received anecdotal evidence of public concern about the frequency and volume of gambling advertising, and the potential exposure of children, the government has maintained that there is no firm evidence that gambling advertisements are ‘jeopardising the licensing objectives’. Indeed, even if children were compelled to gamble, they should be thwarted by the many age controls put into place by each and every gambling operator. Unless they have turned 16 as they can then play as many National Lottery scratchcards as they like.
Gambling fraud reports double in Italy ITALY
eports of fraudulent activity in the Italian gambling sector including money laundering, chip dumping and identity theft - more than doubled last year, according to a new report from the Bank of Italy. The increase was partially attributed to betting and gaming operators paying closer attention to their obligations to cooperate with the bank rather than a huge spike in wrongdoing. Italy’s licensed gambling operators are required to inform the authorities when they
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fers were compatible with EU law, but worked to the disadvantage of those countries keeping a closer control on gambling and money laundering. According to the latest statistics from trade association Associazione Nazionale SAPAR, which is itself a division of Italy’s entertainment industry association AGIS, in 2012 there were 1,264 VLT and slot venues in operation suspect wrongdoing by amounts of money online across the country, along to offshore operators with 564 gaming halls, 1,652 punters. Another area of concern without an Italian license. betting shops and 6,545 is the increased possibili- In its report, the Bank of arcades. “Online gambling in Italy ties for moving large Italy stated that such trans-
BettingBusinessInteractive • DECEMBER 2013
is operated only by licensed operators,” SAPAR said. “Nevertheless, there are many foreign providers who offer gambling in Italy even they have no license released by the Italian authority. As a consequence an unfair competition happens in the industry and no solution has been so far found.” A decree was signed into law on 6 November 2012, which saw new restrictions on gaming advertising which included the need for point of sale warnings about the danger of gambling addiction.
Irish-owned website CasinoLuck has relaunched with a new website and mobile platform and added games from eight developers, including Play'n Go, OMI, Sheriff, Microgaming, BetSoft, IGT, NextGen and Cryptologic. The firm has been running Net Entertainment games since 2010 but can now offer over 700 games. A spokesperson for CasinoLuck said: “We’re extremely happy with the changes we’ve made but we also have lots of plans for the very near future. Since our 2010 re-launch, we have developed constantly and will continue to do so in order to give the players everything they could possibly want in an online casino. We’re already noticing a huge increase in activity since making the latest changes, which is great.” MATCHING PHILIPPINES DONATIONS
The Calvin Ayre Foundation has pledged to match any charitable fundraising from the gambling industry to the Philippines after the country was devastated by Super Typhoon Haiyan. In addition the Foundation is in the process of adopting a village in the damaged area where the group will directly assist people in need. The Foundation said: “We are challenging the gambling industry to step up, reach into their pockets and give as much as they can to the Haiyan relief efforts and the Calvin Ayre Foundation will match all donations made by the online gambling industry up to $1,000,000. On top of the matching pledge, Calvin Ayre has personally pledged $200,000 of his own money towards the relief efforts.” TOMBOLA LAUNCH
Online raffle Tombola Store launched last month by offering players a range of luxury prizes through a unique and transparent online raffle system. Each prize draw has a finite number of tickets available. Users have the opportunity to acquire one or more tickets in each draw subject to answering a multiplechoice question. Once the allotted tickets are sold the draw will take place immediately. Director Paul McCourt said: “We’re providing everyone with a chance to win luxury and even life-changing prizes. Other companies have tried online raffles in the past, but we’re filling a niche by majoring on transparent user experience. This is why we’ll be successful and what sets us apart.”
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Commission names testers The Bulgarian State Commission on Gambling has released a list of three certified gaming equipment and software testing laboratories which firms can use if they wish to obtain a licence in the country: BMM Testlabs, Gaming Laboratories International (GLI) and local organisation Bulgarian Institute Metrology.
Support to allow online gaming in land-based casinos There is a groundswell of support in the UK Parliament to allow online gaming to hit the high street, albeit wrapped up in a highly regulated land-based casino.
THERE ARE CALLS TO ALLOW CASINOS TO OFFER AN ONLINE GAMING PRODUCT IN THEIR PREMISES
LEGISLATION
s the UK Parliament gets its teeth into new online gaming legislation, one idea has been picked up and supported by a number of MPs with very few arguments against - permitting physical casinos to allow online gaming within their walls. The fusion between the online and land-based industry has been heavily debated and received the support of Maldon MP John Whittingdale, who is the chair of the Select Committee on Culture, Media and Sport that recent carried through pre-legislative scrutiny on the point of consumption proposals. In a recent debate, Con-
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servative MP for Rochford and Southend East James Duddridge moved to add a clause to the legislation to allow online as well as offline gambling in casinos by classifying online gaming terminals as outside the remit of gaming machines. Duddridge argued: “I think in all candour that the Department for Culture, Media and Sport has an old-fashioned view of the world - one that was once true and where there was a clear division between on and offline gaming. I suspect there is also an element of divide and rule involved. The gambling industry is a powerful body and it would be attractive to regulate both forms of gaming separately
and get them to compete actively against one another. The reality is different: online and physical provision of services have been merged in many industries.” Duddrige said that bricksand-mortar casinos are highly regulated and are at the top of the regulatory pyramid in gambling: “I therefore find it hard to understand why casinos are restricted from offering a full range of products to their customers. A bricks-andmortar casino can advertise online products inside its premises, but it is not allowed to provide a remote gaming machine for customers to play inside its walls. That anomaly cer-
tainly needs to be corrected.” The argument received general support within the House and even outside it where the National casino Forum has understandably already briefed about its desires for such changes. Liberal Democrat MP for Manchester, Withington John Leech sympathised with the government and suggested that such a move could also see changes in taxation as well: “I understand why the government might be reluctant to support the new clause, because there is a danger that casinos could be encouraged to promote the online sections of their casino at the expense of the
info@bit8.com
bricks and mortar parts simply to reduce their tax, so the new clause must go hand in hand with the introduction of a tax regime that creates a level playing field for the onshore gambling industry.” New minister for gambling Helen Grant, however, resisted the pressure to rush something through in the current gambling advertising bill, saying that the government would look into it and could implement the changes through secondary legislation if necessary. She said: “I have had several iPhones waved at me recently, with the implication that such devices can be played on trains and in bed-
rooms, so why not in casinos? Let me make it clear, those devices can be played in casinos, and can indeed be offered by casinos to customers but within the limits of the machine stakes and prize regulations. “This debate is about the ability of casinos to promote and encourage the use of such devices - including their own - outside of those controls. It is because we are talking about promotion and encouragement to play such games in casinos that I remain firmly of the opinion that it is right to consider potential flexibility within the structure of the existing machine stakes and prize regulations.”
www.bit8.com
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Betting Matchbook.com has a new look and several new strategies as it aims to make waves in the betting exchange space.
Matchbook relaunches with commission-free offer
Singapore clamping down on remote gambling REGULATION
t appears that Singapore is the latest market to move towards a tightly regulated regime after comments made by Second Minister for Home Affairs S Iswaran, who has reportedly said that remote gambling will be made illegal unless there are specific exemptions. Iswaran said there will be new laws to give enforcement agencies the powers to act against facilitators, intermediaries and providers of remote gambling services. Measures will be introduced to block access to gambling websites, block payments to remote gambling operators, and prohibit advertisements promoting remote gambling. Iswaran said that while such measures may not be foolproof they will impede access to remote gambling platforms and send a clear signal on the regulatory stance in Singapore. Channel news Asia reports Iswaran as saying: “The signal in terms of our stance is very clear and I think potential operators and those who are minded to access our market will then pay heed to these provisions.” However, he did leave the door open wide enough to suggest that there will be a licensing regime introduced in amongst all the banning and blocking. “We are not starting on the basis that there will definitely be a provision but if at all there is to be one, we have to be very satisfied and our officials and authorities need to be convinced that first, it will be very tightly controlled that is in terms of who can get access, how it will be managed, the integrity of the system and of course for a very, very prescribed narrow range of products.” Social gaming has also had its card marked. Iswaran said: “The distinction between social gaming and online gambling is blurring, with some games on social media platforms closely modelled on casino-style games. These seemingly harmless games can desensitise youths to the dangers and ills of gambling.”
I CIAN NUGENT EXPLAINS THE TECHNOLOGY BEHIND THE RELAUNCH OF MATCHBOOK
REINVENTION
lderney licensed b e t t i n g exchange Matchbook.com has reinvented itself and is offering punters four months of commission free betting on football in order to promote the changes. Up until 1 April, the commission rate on Matchbook will be 0 per cent, but even after that the standard rate for all Matchbook customers will be just 1 per cent, giving food for thought to the other exchanges. The Matchbook management team launched the redesigned technology at the O2 last month, with the changes including a brand new look and feel, and a suite of new functionality and features. COO Cian Nugent explained how a change in ownership and new investment allowed the organisation a major opportunity. “Technology has powered the growth of the industry
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and most companies have had to build upon legacy systems to keep pace. Thanks to the investment and patience of the new owner, we had the luxury of re-building Matchbook from the ground up. What we have now is a really powerful platform, in a brand new technology stack, allowing us the flexibility to develop and adapt the site easily to customer demand.” CEO Mark Brosnan outlined his vision for the future of Matchbook for a new era in high liquidity, low margin betting: “The Matchbook product is its liquidity and concentration on our liquidity growth is our main focus. We firmly believe that Matchbook’s low-margin cost structure, with only 1 per cent commission charged, will drive long term volume to our platform. “Our approach at Matchbook has been to grow our product one market/sports segment at a time. When we
add a market we aim to have critical mass as well as the best price and liquidity offering in the industry before we add any further markets. This approach has been extremely successful. We have grown our North American sports offering to what I can say, without question, is the best liquidity and bestpriced product offering available. We have grown our pre-game, top tier league liquidity in football, to a point where it is as competitive as Asian bookmakers on its Asian Handicaps and it is quickly becoming the best price/best liquidity match market offering as well.” Using its technology stack, Matchbook has also launched its new native iPhone app which features simple navigation, speedy bet execution and instant visibility of market liquidity. Brosnan commented: “Due to the recently completed upgrade in our core technol-
ogy, we were able to develop the iPhone app with a four week turnaround program. We continue to be committed to low-margin, high volume betting and this is another great access point to the growing Matchbook liquidity pool.” As well as full deposit and withdrawal capabilities, the app includes the full functionality of the desktop experience and allows users the ability to sync all their favourite markets across devices, using Matchbook’s Shortlist feature. Brosnan added: “We are very conscious of the shift towards mobile in the online betting market and we are delighted with the release of our iPhone app to compliment our fully responsive web platform. Android development is currently scheduled for release early 2014 and this is only the start of more exciting plans that Matchbook have in the pipeline.”
ANALYSIS November appears to have been the month for betting exchange customers, who have seen Ladbrokes launch its own exchange while Matchbook has dusted itself off and reinvented itself with a compelling commission offer. One of the other advantages that Matchbook has on its major competitors is that it is focused very much on the exchange market without any other distractions. As Mark Brosnan said: “I firmly believe that exchange betting is still the future and that Matchbook has the optimal pricing strategy and technology pipe line, driven by a very talented, dedicated and focused team to make our vision a reality. The future of low margin, high volume betting is Matchbook.”
Dahms becomes the latest to depart Mybet PERSONNEL
erman bookmaker Mybet has experienced further upheaval with the news that CEO Mathias Dahms is to leave the company after 15 years. He is the latest senior executive to announce his departure from the group with CFO Stefan Hänel, and Clemens Jakopitsch, Antje Stoltenberg all leaving the Supervisory Board in the past few months. Chairman Dr Volker Heeg commented: “After 15 years on the Management Board, including three years as CEO, Mathias Dahms would like to focus on new tasks. We
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MATHIAS DAHMS: ‘RELISHING THE PROSPECT OF FRESH CHALLENGES’
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are exceptionally endebted to Mr Dahms for his successful contribution to the Mybet Group over many years and are pleased we will be able to draw on his expertise as a consultant for a transitional period.” Dahms was one of the founders of the Mybet Group in 1998 and initially served as finance director and CTO/COO of the group. In 2010 he switched to the role of Management Board spokesman and shaped the former lottery agent into one of Europe’s leading providers of sports betting, casino and poker. He commented “After a long and exciting time at Mybet, I am
now relishing the prospect of fresh challenges.” For the first nine months of the year, Mybet has seen revenue increase by 3.3 percent to 50.9m euro, however the firm has made a 4m euro loss so far in 2013. Weak margins in October, has seen the Management Board issue a warning that the forecast loss for the year will be 3m euro rather than the 1m euro predicted. Revenue expectations are being scaled back from 7580m euro to a lower 70-75m euro. The company explained: “The products of the Mybet Group already brought in record-breaking betting
stakes of nearly 20m euro in October. However, the bookmaker’s margin was a below-average 15 percent due to a string of wins by favourites in virtually all European leagues and competitions. “In the course of the fourth quarter mybet plans to complete various important projects that will unlock additional sources of revenue in the short term. For example betting terminals and the personalised loyalty card to boost customer loyalty in the shops will be launched shortly. The fourth quarter will also see the initial effects of the cost-cutting programme.”
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Record pools winner
Betting
The Football Pools has had another record-breaking winner who player scooped over £440,000 on its 12-fixture predictor game. The resulting draw in the final game - a French Ligue 1 match between Sochaux and Bastia - ended as a draw, securing the player a £441,605 jackpot - the biggest prize in Jackpot 12’s history.
Ladbrokes moves to settle investors’ nerves A lot of activity for Ladbrokes’ digital business has not stopped rumours about another profit warning. ONLINE
adbrokes has been forced to make a statement to the stock exchange in an attempt to scotch the rumours that the bookmaker was set to issue yet another profits warning. CEO Richard Glynn has been under pressure to turn around its ailing online business and it appears that some of the business media, and perhaps some shareholders, have smelled blood in the water. Despite the rumours, the firm said: “Current expectation for group performance for 2013 remains within the range of analyst EBIT forecasts for the full year (£138m - £151m) but with a key part of the sporting calendar ahead it is extremely premature to speculate on the outturn for the year.” Ladbrokes has certainly been throwing a fair few innovations at its sportsbook in the hope that something sticks. Last month saw a rather surprising soft launch of the Ladbrokes Exchange, essentially a white label of its sister betting exchange operation Betdaq, and the company has also introduced tabs for its Vegas and Virtuals products. Ladbrokes said that the exchange gives customers ‘a differentiated product in the crowded on line market by making a betting exchange available alongside the traditional fixed price sportsbook’. With an eye further in the
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CHELSEA APPS FACTORY WILL GIVE A BOOST TO LADBROKES’ MOBILE OFFER
ANALYSIS Given the intense scrutiny and pressure that Ladbrokes finds itself under with its digital offer, it is perhaps a little surprising that the company didn’t take the opportunity to make a big splash with the integration of the exchange on its website. The little fanfare with which the exchange appeared does suggest that the firm isn’t entirely confident with what it’s offering, although it still appears to be a ‘beta’ launch. The emergence of the Ladbrokes Exchange is more likely to put the wind up Betfair, which over the last few years has been criticised for its approach to some customers. A new kid on the block, however minor at this stage, could see a reappraisal of some of the leading exchange’s procedures.
future, the bookmaker has also announced a partnership with Chelsea Apps Factory, a company specialising in mobilising businesses, to create a single dedicated resource to accelerate the development of its mobile offer. The deal will see the Ladbrokes mobile sportsbook team co-located in a London hub with a Chelsea Apps Factory team with a remit of improving the mobile
platform on track and imminent, we need to ensure our mobile offer stays relevant for the customer in a rapidly evolving market. In teaming up with expert partners, we are taking the best in the market and applying them solely on the Ladbrokes product with a remit to constantly innovate, measure and improve our product. Customer expectations of the mobile experience are growing rapidly and we need to meet and exceed them to maximise value in this growing market. “This is another step in the journey of our digital offer and with the World Cup in the summer likely to be the most competitive sporting event on mobile ever, we are acting now to ensure we are in great shape to attract and retain customers to our site from the World Cup and beyond.” Mike Anderson, CEO of Chelsea Apps Factory, added: “We have been delivering in this space for some time and have helped many companies begin on their journey through the rapidly evolving mobile world by developing applications that are unique, exciting and engage the end user. In teaming up with a brand as powerful as Ladbrokes and in co-locating a dedicated team we can see an opportunity for the Ladbrokes brand to really punch above its weight in the market.”
product, analysing customer behaviour and embracing technological development. The initial impact will be targeted around the World Cup and beyond. The partnership is intended to complement Ladbrokes move to Playtech’s Mobenga mobile platform. Ladbrokes Digital MD Jim LADBROKES Mullen commented: “With EXCHANGE our move to the Mobenga COMMENT 39
Intralot launches Polish sportsbook POLAND
ntralot’s subsidiary in Poland, Totolotek, has successfully launched its interactive operations in the country taking advantage of the six-year internet betting licence it was awarded in July from the Polish Ministry of Finance. Totolotek, in collaboration with Intralot Interactive, has developed and is now offering to players in Poland a fixed odds betting product including live betting and football pool games through its user-friendly website
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www.totolotek.pl. The new games are deployed on Intralot platform fully complying with the international security and responsible gaming standards. Totolotek’s future plans regarding the enrichment of its interactive offering include the deployment of a mobile application for the above games customised to the specific needs of the Polish market. Totolotek CEO Adam Lamentowicz said: “Following our successful land-
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based operations in Poland, we have decided to enter the Polish interactive market, so as to continue to offer to our customers in the country a variety of exciting games that can now be played also from the comfort and easiness of their PC. The design and deployment of our new interactive product in Poland was based on considerable research into Polish players’ attitudes, behaviors and interests. Our aim is to offer a product tailored to the enduser and thus further expand
our customers’ base.” Fotis Mavroudis, managing director Europe/North Africa Region of Intralot Group, added: “This new step in Poland ratifies our commitment to continue our long and successful operation in the country, but it also underlines Intralot Group’s strategy toward offering to players worldwide a ‘Universal Gaming Experience’, meaning the convergence of the multiple User Interaction Channels - retail, internet, and mobile.”
PADDY POWER CEO PATRICK KENNEDY
Paddy Power warns of drop in profits RESULTS
addy Power has issued a profits warning of its own, blaming unfavourable sports results for an expected 11m euro drop in profits. The bookmaker said that it expects to see less than double digit percentage growth in operating profits for the first time in four years. Despite the warning, which immediately saw its share price plummet 8 per cent, Paddy Power said that the group’s overall underlying performance has been good for period between 1 July to 17 November 2013. Within retail, sportsbook stakes increased by 13 per cent and total net revenue by 6 per cent. Irish retail stakes maintained their positive trend from the first half of the year with like-for-like growth of 5 per cent in the period exceeding that achieved in any six month period since 2007. On a like-for-like basis, UK retail sportsbook stakes grew 5 per cent, while machine gaming net revenue was down 1 per cent, driven by a weak July. Excluding July, machine gaming net revenue grew 3 per cent. On its sportsbook, the firm commented: “Competition in the UK online
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market has continued to strengthen in advance of the new ‘point of consumption’ tax regime expected from December 2014. As a leading scale player, our paddypower.com business has performed well in this tougher environment achieving double digit growth in both sports turnover and eGaming net revenue, without increased marketing spend as a percentage of net revenue. During this period of industry change, competition is intensifying and we will continue to invest efficiently to maintain and enhance our competitive position for the long term.” For Online (excluding Australia) sports turnover is up 15 per cent and eGaming/B2B net revenue has grown 17 per cent. In Australia, online turnover growth has accelerated to 26 per cent. 47 per cent of total online revenue is coming from mobile channels, and 63 per cent of Paddy Power’s active customers transacted via mobile in October. The bookmaker plans to launch a series of in-house developed, mobile device optimised products, with the first new product, a Games tablet app, already launched.
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Enforcement problems
Betting
ACTION IMAGES / LEE MILLS
While many firms are looking hungrily at the US market, there are a handful of European firms already operating there - with Sportech busier than most.
Peter Howitt, chief executive of the Gibraltar Betting and Gaming Association, has told British MPs that the UK will struggle to keep out unlicensed operators under the Point of Consumption legislation: “You can try to introduce as many enforcement measures as you wish, but if America could not do that when it was trying to restrict online gambling, it is difficult to see why the UK believes it will have a better result.”
FRENCH RESIDENTS CAN NOW BET INTO SPORTECH’S FOOTBALL POOLS PRODUCT
US racing business driving Sportech forward UNITED STATES
espite its rather British heritage as the owner and operator of the Football Pools, Sportech’s transformational acquisition of USbased Scientific Games’ racing division just three years ago has broadened horizons in several respects. According to the firm’s latest Interim Management Statement, investment in the US business is driving growth, with Connecticut’s flagship sports bar and betting venue redevelopment to open next month. During the period from 22 August 2013 to 11 November 2013, Sportech has also signed a joint venture agreement with Picklive to target the rapidly growing US fantasy sports market. The website is scheduled to go live in mid-2014. In comparison there is mixed fortunes on the home front; while Sportech has
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strengthened its arm in European Tote racing circles with the acquisition of Data Tote, a leading provider of on-track and online greyhound and horse race betting services, it has been found wanting in terms of e-gaming and has disposed of its loss making Vernons.com operation to NetPlay TV for £3m. Even the good news has a grey cloud; the Office of Fair Trading has announced that it has asked for comments about the potential £3.1m acquisition of Data Tote with Sportech pledging to co-operate with the regulator. The firm commented: “Trading from continuing businesses is in line with the board’s expectations for the full year. The group continues to make substantial progress against its strategic objectives and is well positioned to capitalise on future growth opportunities across its key
markets.” In the US, Sportech is continuing to invest in new online and mobile products in order to drive improved customer revenues and cost efficiencies. As exclusive provider of betting systems for California, the firm noted that November’s Breeders’ Cup meeting held at Santa Anita, California saw a 10 per cent increase in betting turnover processed during the two days through its systems to US$160m (£99.0m). Elsewhere in the division, implementation plans and technology development work to supply our two significant contract wins during the period, Penn National and Danske Spil, continue on schedule. Sportech Venues, the firm’s B2C arm, has seen turnover in line with the prior year. It commented: “We have continued to invest in the business, and the new flagship sports and
betting bar at Windsor Locks, Connecticut within our 38,000 sq ft freehold gaming and entertainment location will open in December following the completion of the £2.4m project.” Having soft launched earlier in the year, the upgraded version of Sportech’s internet wagering platform will go live in December, which will provide Connecticut with its only legal online betting platform. The firm plans a full marketing campaign in the New Year. In the UK the Football Pools is in line to meet the board’s expectations for the full year as it continues its progress of ‘business rationalisation’. During the period Sportech commenced the distribution agreement with FrancePari, following approvals received from French regulator Arjel allowing French residents to bet into the Football Pool.
ANALYSIS While Sportech is making hey in the US, one of the company’s biggest (and potentially most lucrative) challenges lies on the home front; specifically in the courts against Her Majesty’s Revenue & Customs. Earlier on this year Sportech was successful in its VAT claim for £95m including interest at the First-tier Tribunal’s Tax Chamber regarding unnecessary tax paid over a number of decades via its Spot the Ball product. However Customs has been given leave to appeal this decision to the Upper Tribunal with the appeal hearing due to be held on 29 and 30 April 2014. If Sportech can retain the decision of the tax lawyers, it will feel like it has hit the jackpot.
Betsson aims to supersede 80-years of Stryktipset FOOTBALL
wedish betting firm Betsson has launched 1X2 (EttKryssTvå), a product that could be seen as one of the biggest changes in the Swedish gaming market in 80 years. In 1X2 the customer bets on the outcome in 13 selected football matches with payout on 10, 11, 12 and 13 correct picks. The payout is guaranteed on both 10, 11, 12 and 13 correct picks, which is unique compared to other similar products on the market. The payout is odds based and not pool based, which means that it is determined by the player’s own skill and not by how other players bet or if more players have the same, correct bets. The payout amount for 13 correct picks is reported before the game, which means that there will be
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no negative surprises on the payout. Betsson CEO Magnus Silfverberg cheekily said: “Betsson thanks Svenska Spel for 80 years with the pool based game Stryktipset but now it’s time for another product, a better product. 1X2 is a more modern and more fair game where skill is highly rewarded.” The launch is hot on the heels of another new Betsson innovation in the shape of one of the Nordic market’s first mobile applications for real money gambling. The newly developed app includes mobile Sportsbook and Casino and provides a much better user experience. Additionally, the app opens up new marketing opportunities for Betsson.com through the use of push technology and other features that
are built in to the mobile system. Initially the app is launched for Betsson.com and will coexist with the existing mobile solution for the web, which was launched in June. The app is available in App Store for iPhone and will soon be available for Android with native apps for more brands within the Betsson group will be launched shortly. Silfverberg commented: “The new app enables our operating subsidiary to regain the leading position within mobile development. We see that gambling via smartphones is growing rapidly and we are confident that Native apps are the form that the customers will choose in the future. Therefore, our subsidiary puts a lot of effort into this kind of development.”
BETSSON HAS LAUNCHED A NEW APP
BETTINGBRIEFS HARM MINIMISATION CONFERENCE
The Responsible Gambling Trust will host a one-day ‘harm minimisation’ conference at the King’s Fund in London on Wednesday 11 December 2013. The aim of the conference will be to review and discuss existing understanding of harm minimisation in gambling in Great Britain and internationally, and explore future directions for research and policy. Trust chief executive Marc Etches said: “This conference is an important element of an on-going process of evaluating current knowledge and practice in relation to harm minimisation in gambling at both a national and international level. We are particularly grateful to IGT, The Rank Group, Microgaming and Joelson Wilson for their financial support.” CHARITABLE SURVEY
Investors at leading spread betting company Spreadex have raised more than £10,000 for charity by taking up a company survey which promised a £10 cheque to their favourite charity on completion. Spreadex has since paid out close to £10,000 to more than 350 good causes. Marketing communications manager Andy MacKenzie said: “Based on the feedback, we have now dropped our previous iPad Mini account opening offer in favour of a promotion where financial traders and sports punters can raise £150 for charity simply by placing a certain number of trades or bets. Already we’ve had new business on the back of this and we expect to be sending plenty of more money to charities before the year is out.” COMMISSION NEEDS TO BE RIGOROUS
Stanleybet’s deputy managing director Adrian Morris has expressed the bookmaker’s relief that the European Commission has initiated infirngment procedures against a number of members states over their gambling laws. Morris said: “We are very much pleased that finally, after years of inactivity, some steps have been taken against some Member States whose gambling legislation is not compliant with EU law. However, we hope that this time the Commission will be even more rigorous in its actions and will not take years while the situation on the ground remains detrimental to private operators and we call for the Commission to resolve all the existing cases no matter which Member State is involved.”
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Politics Public confidence in sporting integrity essential
European Commission finally instigates infringements
MATCH FIXING
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It’s been a long time coming, but Belgium, Cyprus, the Czech Republic, Lithuania, Poland, Romania and Sweden have had their cards marked over their gambling legislation.
MAARTEN HAIJER: ‘DECISION BY THE COMMISSION IS HIGHLY SIGNIFICANT’
EUROPE
s recommended by the last EU report on online gambling, the European Commission has finally launched a series of formal infringement proceedings against the online gambling legislation of six Member States and issued two ‘reasoned opinions’ against Sweden for failing to comply with EU law. The Commission sent letters of formal notice to Belgium, Cyprus, the Czech Republic, Lithuania, Poland and Romania with regard to their online gambling legislation. Sweden, which already was subject to an infringement proceeding, has also been sent two reasoned opinions, formal requests to bring its legislation in conformity with EU law rules and the last step before potential litigation at the Court of Justice. Sweden has a two month deadline to reply to the Commission. Maarten Haijer, secretary general of European Gaming and Betting Association (EGBA), commented: “The decision by the Commission is highly significant as it will bring further legal clarity to the online gambling market in the EU. We commend Commissioner Barnier
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and his services for their perseverance and commitment to making sure gambling regulation functions properly. EGBA urges Member States to use this opportunity to put in place effective, commercially viable gambling legislation which takes into account the CJEU requirements and to avoid the need for litigation at the Court of Justice.” Haijer added: “It is perfectly well possible to achieve public interest objectives in a consistent and systematic manner without being unnecessarily restrictive and in compliance with EU law. EGBA is fully committed to achieving public policy objectives such as a high level of consumer protection. In fact, all EGBA members are compulsorily audited on their compliance with the CEN agreement on ‘Responsible Remote Gambling Measures’.” The Remote Gambling Association (RGA) expressed disappointmen that further action had not been taken. It said: “It is regrettable that no countries have so far been referred to the Court of Justice of the EU when existing infringement proceedings appeared to be sufficiently advanced and substantiated to do that.” Clive Hawkswood, CEO of the
epresentatives from sports governing bodies came together with betting operators, law enforcement agencies and sports associations at Twickenham last month to share details of their work in preventing match fixing in British sport. The event aimed to build on existing expertise to explore the potential for innovative and practical solutions to protect sport from the threats of betting related corruption. Minister for Sport Helen Grant sent a message of support to delegates: “The public has to be confident that what they are seeing in front of them is true and fair, otherwise sport is finished. The education of sportsmen and women is vital and together we need to send out a clear message that anyone found to be involved in any type of corruption in sport will be punished.” Nick Bitel, the chairman of Sport England, hosted the day on behalf of the Gambling Commission. Representatives of a wide range of sports organisations - from rugby and football, to darts and snooker - attended. Nick Tofiluk, the Gambling Commission director responsible for the Commission’s Sports Betting Intelligence Unit (SBIU), said: “The threat posed by match fixing and other sports betting integrity issues is a global issue. This event, expertly chaired by Nick Bitel, allowed sports to share their experience and best practice to identify ways to improve protections in Great Britain.”
RGA, stated: “The announcement is a step in the right direction for an online gambling industry that has suffered for too long from legal uncertainty and unjustified market closures. Although we are fully aware that, under certain conditions, market restrictions can be deemed lawful and justified, we are entitled to the free provision of services and due regard must be given to those rights. We once again look to the Commission, as guardian of the Treaties, to enforce those provisions and we expect that those countries subject to a proceeding will introduce the required changes as soon as possible.” The RGA has been particularly frustrated at the absence of Germany and Greece from any Commission activity as both are key gambling markets whose current laws do not appear to be fully compatible with EU law. The association added: “It must also be noted that formal proceedings can be lengthy and unless Member States decide on their own initiative to adopt legislation complying with the Commission’s instructions, it may still be many years before a judgment of the Court compels them to change.”
ANALYSIS While it is a welcome development for a number of EU Member States to be told that they shouldn’t go against the EU Treaty when developing gambling laws, in truth the infringement procedures are long and not entirely effective ways of dealing with the issue. However, as the RGA said in a statement, it’s not totally without merit: “The RGA fully appreciates, however, that the Commission’s announcement will put further pressure on reluctant Member States and that is to be welcomed. It is to be hoped that this will accelerate the trend within the EU towards the establishment of new licensing regimes. These have demonstrated that an open, regulated market can provide an EUcompliant solution.”
Social games industry has principles SOCIAL GAMES
nternational Social Games Association, the industry body representing social games companies, has launched a set of best practice principles for the social games industry and has also commissioned new research into the evolution, use and impact of social games. The ISGA is taking these steps to ensure that the social games industry has access to a minimum set of best practice principles that are premised upon consumer protec-
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tion, accountability and transparency. As social games are a relatively new way of playing games the industry is also commissioning a detailed study to investigate the evolution, use and impact of social games. The members of the ISGA have developed the principles as a first benchmark to help ensure the industry acts responsibly and consistently with standards designed for appropriate consumer protection. The principles
16 BettingBusinessInteractive • DECEMBER 2013
cover five areas and are intended to ensure that games and their providers: • Adhere to necessary laws and regulations • Are transparent in their functionality • Treat purchases and payments responsibly • Manage player privacy appropriately • Use appropriate advertising models ISGA CEO Luc Delany said: “The social games industry is thriving and fast growing – over 750m people play social games
worldwide, and social games companies are driving economic growth. The launch of our best practice principles reflects our industry’s need to ensure games are developed and operated in a responsible way at a time when the way people play and pay for games is changing.” Building social games is a new industry, and as a result has drawn interest from regulators and commentators. To inform this debate the ISGA has commissioned independent
researchers Harvest Strategy, led by Dr Rohan Miller (an expert in consumer and public policy research) to understand how social games are changing the ways consumers play and pay for games. Miller will be supported by a team of internationally recognised academics. The research is intended help generate and inform further public debate by clarifying and defining social games and their use while exploring the role of social games in the digital economy.
HELEN GRANT: ‘EDUCATION OF SPORTSMEN AND WOMEN IS VITAL’
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SG Gaming extends its gaming machine contract with Ladbrokes until 2019
AFC becomes the latest integrity partner to Swiss betting data experts Sportradar
Amaya is to provide a wide selection of online casino gaming content to Bwin.party
GamblingCompliance has become the main eLearning provider to MyLotto24
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Knockout feature In play betting is a combative market as more and more bookmakers are throwing their hats in the ring in order to round up customers Essential Guide to Live Betting 18
Silver service Inspired Gaming Group is celebrating taking its customer service to new heights with its third consecutive period of improved LBO customer satisfaction survey results 28
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Essential guide to ... US and them
Retail frenzy
No play
William Hill has been using the in-play product to good use in the US where wagering growth was up 47 per cent earlier this year. An in-play offer based around NFL has provided a ‘significant uplift in our business levels’.
It’s not all online of course and Ladbrokes will soon have 1,500 Self Service Betting Terminals on its retail estate, allowing the bookmaker to actively promote betting in play to its betting shop customers.
Despite calls to do so, the Australian government has kept the ban on online in-running betting, meaning that firms like Paddy Power can only offer the product via its telephone betting service.
Upscaled events
ACTION IMAGES / PAUL CURRIE LIVEPIC
Bwin.com aims to offer 90,000 live events this year. This is possible through a marked increase in automation, the deployment of statistical trading models and improved analytics that has allowed an increase coverage without any significant increase in costs.
SBOBET
Board decision to promote the brand
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Pictures not required Andrew McCarron reviously it was always considered that you needed pictures for in-play betting to work. It was thought, understandably, that customers would be interested in watching the ebb and flow of an event and then place bets accordingly. This was of course great news for the sports streaming companies who had online bookmakers beating a path to their door in order to make their live betting offer work. But it seems that is no longer the case. Give a punter a stream of up to the minute facts on the event as it playing and they seem happy enough to take a view given the odds on offer without the need for seeing how it transpires. Sometimes the only information required is the score and how long of the match is left, which is fortunate given the difficulties in getting an up to the minute stream for an under 17 football match between Bali and the Cook Islands. Obviously having live pictures will help boost a market considerably, but with most of the big events usually available on TV these days there is less pressure from the customer to provide a stream. This has been borne out by the growing number of punters making multiples in-running bets where it is nigh on impossible to watch all involved events with any kind of scrutiny. This is also good for the margins of course, as in-play used to have notoriously lower margins than pre-game markets. Now they are heading upwards as the punter becomes happy to take a fleeting view rather than a studied one. And as the bookmakers find more ways to encourage this behaviour.
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When it comes to marketing gambling and in-play betting in particularly, bookmakers should choose to be LED. remier League Football Clubs have a great asset for the online betting market, according to Bill Mummery executive director of SBObet operator Celton Manx. But it’s not the decades of tradition, superstar footballers on their payroll or their shirt sponsorship real estate – it’s the perimeter board LED displays. Mummery is a big fan of the ability to impart real time information on the LEDs as a game is in progress, allowing SBObet to promote both the brands and its live betting offer to the millions of watching customers in the Asian region. Previously SBObet has been a shirt sponsor for West Ham United and Cardiff City, but the firm has taken a different approach this year. Mummery explained: “Instead of having one Premier League team as shirt sponsor, what we have done this year is focus on getting maximum exposure across a total of seven Premier League clubs. We will have well in excess of 1,000 minutes this season. “If you think there’s 10 games every weekend and you’ve got minutes across
VIEWPOINT
SBOBET USED TO SPONSOR WEST HAM UNITED
seven of those clubs then statistically your chances of getting good exposure are very, very high. The unaided recall that this has prompted, even after four years as a shirt sponsor, has indicated that it’s been a successful approach.” Mummery was keen to point out that the shirt sponsorship deal with West Ham United worked brilliantly, but it was time to try something different and spread the net a little and team up with a number of clubs. He commented: “Personally those betting partner relationships are very difficult to measure in terms of ROI, but the key really is that over the past three or four years football clubs have been getting much smarter in realising that their biggest asset is 90 minutes of LED. Becoming a club’s Asian betting partner is the key you have to have to unlock access to getting exposure on those LEDs.” He said that expenditure across the seven clubs was still at the same level of expenditure of a shirt sponsorship deal – ‘still well into the millions’. Mummery thinks that the motives behind the desire of Asian sportsbooks to buy
shirt sponsorship from football clubs were misunderstood from the beginning anyway. “I think there’s a misnomer about why the igaming sector has been so dominant an advertiser in the Premier League,” he explained. “Everyone thought three or four years ago that the companies were marching into the UK to steal the market hear from the traditional bookmakers, but that wasn’t it at all. “Bettors in Asia love the product. If you can give them European football, and even better English Premier League, then they will respond. Not only because it is high quality football but it also football they can trust. They will bet on the English Premier League because it is trusted. Also of course the fact that the sport is broadcast each weekend by over 200 broadcasters gives associated brands a very, very strong reach. “There’s also a perception of an element of approval from the Premier League as well. In order to be able to advertise on the shirts, there’s an implicit suggestion that the Premier League believes a brand to be trustworthy, which is a big advantage.”
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Live Betting BETFAIR
Cashing in on Cash Out It could be argued that the cash out facility is the very epitome of in-play betting and Betfair is currently working on sending out that message dynamically. etfair has launched its first-ever dynamic ‘Cash Out’ TV advertising campaign, which will run on Sky Sports around live Tier A Football matches, as part of the digital betting company’s ongoing agreement with the sports broadcaster. This represents significant progress for Betfair, both in terms of media innovation and the fight against the competition. With many bookmakers pushing live odds, this dynamic TV advertising is unique to Betfair and an industry first. It is a perfect way for Betfair to associate the thrill and excitement of live sport back to betting. Alongside the TV campaign, Betfair has become the first company to introduce dynamic real-time messaging into its YouTube advertising – giving customers real time betting insight. In-running, the dynamic odds featured will relate to the live games on TV, refreshing automatically every 10 – 15 seconds, meaning the odds reflect the thrills and spills of football as they happen. The new TV advertisements are an extension of Betfair’s current ‘Cash Out’ marketing campaign, focusing on a smartphone screen allowing Betfair to promote the exact figure a customer could ‘Cash Out’ of a given bet at that cur-
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rent moment. They also provide a retrospective look at Cash Out values after the match. The campaign has been driven by the recent customer engagement statistics, with an encouraging 20 per cent of football actives using Cash Out at least once during the month of October. The dynamic TV advertisements are updated via a bespoke system that links to the Betfair API and then into the back-end of Sky TV. Whilst other operators promote live odds for future markets, such as next goalscorer, the Betfair live ‘Cash Out’ values relate to a pre-match bet and show how key moments throughout the match have impacted a customer’s position. Through digital banner advertising with progressive media partners, such as Talksport, Betfair are also promoting the same cash out values highlighted in their TV campaign to amplify the message throughout the digital ecosystem. Plans are already in place to develop the offering further, with the innovative online betting company set to provide dynamic ‘Cash Out’ multiples TV adverts before the year ends. Commenting on the campaign, Betfair’s brand director
ONE OF BETFAIR’S LIVE BETTING ADS
Mark Ody said: “The immediate nature of Betfair’s Cash Out product makes it a natural fit for dynamic advertising. The new TV creative allows us to communicate real-time and reactive messaging based on the outcome of the match, further enhancing the excitement around live sport. “We are delighted with the introduction of dynamic messaging into our YouTube adverts. This is a key development within the channel, marking us out as a brand constantly pushing the boundaries of digital marketing.” It could be argued that the cash out facility is the perfect message to convey the possibilities of live betting to ordinary punters and the product is clearly catching on in popularity. William Hill has introduced cash out, as has Ladbrokes using its new exchange model, with Paddy Power the latest bookmaker to poised to launch a series of cashout products to customers. The facility has even seen firms such as Btwiice develop a third party plug in for smaller bookmakers wanting to offer a cash out product.
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Essential Guide to ... Live Betting SPORTRADAR ACTION IMAGES / HENRY BROWNE LIVEPIC
12BET
Live betting benefits from Asian expertise Operators catering for the Asian market have been aware of the live betting phenomenon far longer then their European counterparts.
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12BET HAS AN ASSOCIATION WITH FOOTBALL THROUGH ITS SHORT SPONSORSHIP WITH FA CUP HOLDERS WIGAN ATHLETIC
vertising from sports betting operators and their main message was focused on the number of markets they had per event. It is, however, questionable as to whether many of these additional markets were seeing meaningful turnover. It’s a bit more of a marketing exercise in which operators can attempt to differentiate themselves from the competition. In reality it’s not always the case that more is better. We will certainly look to add more markets in areas where we see demand from our customers. “We have been working hard behind the scenes to build a capable and stable IT team. This will enable us to be more nimble and agile moving forward.” One of the next aims for 12Bet is to approach ways to make the product interface much more entertaining. Anderson explained: “Currently, for most operators the way in which in play markets are displayed is a bit dull. The excitement is generated by the event and the betting. We have a real opportunity here and are working hard to create an entertainment experience. To develop a complete inplay environment with a more dynamic customer interface with data presented in a more engaging and interactive way. “With mobile exploding we have to ensure that we use the data available to us in an intelligent way. To deliver the right event to the right punter at the right time is key, and will only grow in importance over time. This will be our focus.” ACTION IMAGES / JASON CAIRNDUFF
2BET’s Europe CEO Rory Anderson believes that the live betting revolution that has hit European shores over the past five years had its origins in Asia. He said that by tailoring its product to the demands of its core marketplace, 12BET found itself as one of the leading proponents of live betting at the time. Anderson explained: “The popularity of in-play has been driven by customer demand. This demand came initially from the Asian consumer. We then saw a second wave in in-play betting’s popularity driven by the European consumer. “When we first launched in Europe, we had more in-play football events than any of the European sports betting brands. We offer thousands of in play football events every month, all of which are monitored by a huge team of traders. We knew from our experience in Asia that there was a direct correlation between an increased number of events and an increased level of turnover. This was down to increased bet frequency. There are events on throughout the day, every day. In short, more opportunities to bet.” Anderson said there is no sign of customer appetite for live betting dwindling. But while extra events translate directly into extra revenues, Anderson said it doesn’t necessarily mean that more markets on those events will necessarily equate to incremental turnover. “At one point there was a big drive in ad-
SPORTRADAR WILL BE MONITORING RFU EVENTS
Sportradar becomes official Conference data supplier One of the most valuable facilities for bookmakers offering live betting to their customers is up to the second data and it’s an area where Sportradar excels. portradar has recently extended its vast portfolio of official data by signing a deal with The Football Conference to become ‘Official Sports Data Partner of The Skrill Premier, North and South’. The Football Conference has partnered with Sportradar because of the experience as a leading sports data service provider and believes that the distribution of Official Data will support integrity measures by helping to eliminate the unauthorised collection, dissemination and use of official or erroneous data and the presence of unofficial data collectors at events of “The Skrill Conference Premier, North and South”. The supply of Official Data will further support integrity measures by creating a framework for more extensive information exchange and cooperation with the legal gambling industry. Brian Lee, chairman of the Football Conference, said: “We believe that Sportradar will be an excellent partner for The Football Conference and we look forward to working with them. As an established market leader in the field of sports data services they will become a very welcome addition to our portfolio of official partners. More information on match day impact will be supplied to our members shortly but an important element to recognise is a financial benefit from this arrangement, which will go into central funding to our clubs.” Carsten Koerl, group chief executive officer, Sportradar, said: “We are very pleased to begin this co-operation with The Football Conference. Our market leading betting and sports data services will engage fans in new ways across all platforms.” Sportradar has also signed up a few more integrity partners. Under a new deal
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Sportradar will monitor Cricket Australia’s Ryobi Cup, BUPA Sheffield Shield and KFC Big Bash T20 League domestic competitions for signs of betting-related corruption and fraudulent activity. It is also now monitoring all of the domestic Rugby Union competitions (Aviva Premiership Rugby, Greene King IPA Championship, LV Cup, British and Irish Cup) as well as the England Autumn Internationals as well. Since 2004, Sportradar’s Fraud Detection System (FDS) has successfully monitored a range of sports and has unrivalled experience and expertise in the identification of suspicious betting practices across the world. The recent soccer match-fixing investigation in Australia perfectly highlights the benefits of Sportradar’s extensive skills, technology and knowledge in this field; not only did it detect suspected manipulated matches bit its unique systems and databases were used to warn the authorities in advance of individuals of interest registering to play in their leagues. Cricket Australia CEO James Sutherland said: “Cricket Australia takes the threat of betting related match-fixing very seriously and this partnership with Sportradar is the latest step taken to help uphold the integrity of cricket in Australia. We look forward to utilising Sportradar’s proven expertise in this field and forging an effective partnership.” RFU CEO Ian Ritchie added: “Although rugby union is not seen as a high risk sport in this regard, the RFU recognises that it is essential to take proactive, preventative action to protect rugby union, its participants and its integrity. The engagement of Sportradar is only one of the many steps that the RFU is taking as part of its AntiCorruption Strategy.”
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IBAS
A hand in future developments
THE GREAT BRITISH BAKE OFF – AN UNEXPECTEDLY CONTROVERSIAL BETTING EVENT
Mark McGuinness, i-gaming futurologist at Mainstream Marketing & Communications, takes a look at how live betting can drive the mobile platform. obile and Live Betting continue to be the two major growth areas of the sportsbetting industry. Indeed mobile and live betting literally (and no pun intended) do go ‘hand-in-hand’ with the major operators reaping the rewards as the iPhone and Android smartphones continue to increase their accessibility as device preferences for customers. Sports betting is the oldest and most popular form of betting globally by gambling patrons, with football the most significant in terms of revenue contribution to the new breed of mobile focused gambling operations. To a large extent in-running or in-play betting therefore looks set to continue to revolutionise the industry for online sports books. Despite downward pressure on margins across the betting product mix, operators are still displaying cautious optimism across the board. Yet the flux in which consumer spend and accessible and affordable consumer credit finds itself as many countries are still looking to emerge for the depths of a global recession (never mind the fall-out of the pending point-ofconsumption tax in the UK) could flatten growth. There is also the other conundrum; in-play for traditional sports books requires large capital in-flow investments in the technology, the staff from an event management and risk / liability control, the carriage and streaming of the sports event never mind the costs of marketing this offering to the consumer. There is no doubt that in-play is growing in popularity, with gambling behemoths revealing that as much as 75 per cent of revenues come from live betting. There will be innovations that will continue to expand the use of mobile in sports betting - such as targeted sports information or ‘intelligence’ to the user based on geo-location with some statistical algorithms to analyse the probability for the bettors’ best chance of winning. These could make the end gambler more sophisticated and increase their chances of winning. Recycling those winnings in the form of more bets placed should bolster operator margins. Streaming of events direct to the end user (in conjunction with sports rights holders and data owners) shall see more and growing relevance to mobile, especially if the major app stores such as Apple, Google Play continue to tighten access to the consumer market supply chain. Promotions deep-linking straight to the appropriate market within a mobile media service shall continue to grow as a recruitment tool as more operators seek to cross-market other product verticals. The other game-changer could be the type of interactivity around the use of social media to encourage friends, family, and colleagues to engage more with each other in regards to the betting activity. This shall no doubt provide more branding and cross sell for operators. In my view the real long term winners in this battle for market share through product innovation are still the betting customers, as ultimately the sports books shall have to offer more and more in-play markets, better prices, better streaming on those markets to attract bettors. This will erode the operator’s margins further, especially as the likely consumers of the in-play football products are going to be the ever-more savvy punters (the early adopters) that perhaps bookmakers don’t want. So is the live betting industry in danger due to operators’ presenting too much information, too quickly, too easily to satisfy their voracious appetite for profit? After all, the average mobile screen is only 3-5 inches in display terms. Perhaps similar parables can be drawn with the retail industry’s last big success - fixed odds betting terminals. These have proven so popular with customers that the government has carved a huge slice of tax from the machines and there are constant calls for more rigorous controls. Is it possible that the same backlash could happen with live betting, especially with World Cup 2014 likely to be another background for mobile market share? Only time will tell.
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If you can’t win you can’t lose When is an in-play bet not an in-play bet? When it is placed on a weekly TV series that completed filming months ago. John Samuels of IBAS looks at the unusual case. ollowing on from last month’s article, that dealt with old adages and barrack room lawyers’ misconceptions, there is another old saying that does the rounds, and is also possibly misused and misunderstood; ‘If you can’t win you can’t lose’. But how true is it, indeed has it ever been true? I do not know, and have failed to discover how long the expression of ‘if you can’t win you can’t lose’ has been in use in relation to betting, but I have heard it being said ever since I became involved in this industry in the 1960s. The expression almost certainly relates to a bet on a non-runner (ante-post bets aside). Whether it can be applied today in any other context may be in doubt, taking a strict interpretation of the 2005 Gambling Act. IBAS regularly adjudicates over disputes where it is claimed that someone has bet on an event that has already taken place and where the winner is already known. This is particularly relevant today given the popularity of in-play betting, where bets after the ‘off’ are actively encouraged. But what about a bet, say, on something that is a matter of historical fact, where one of the parties to the bet already knows the truth of the matter? Section 9 (2) of the Gambling Act apparently allows for a person to place or lay a bet where the result is already known by the other person who is taking or placing the bet. So, although the section may be just an apparent attempt by the Gambling Commission to define what a bet is, or can be, operators will do well to have rules in their terms and conditions that declare that (with some caveats) any bets taken after the determination of the market will automatically be void. Mind you, some bookmakers do not make it easy for themselves, or for others in the industry, occasionally offering mixed messages to the public, about the acceptance of bets on events that have already taken place. I read with interest the following quote
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from a high profile bookmaker recently when dealing with bets taken on the TV competition ‘The Great British Bake Off’: “We were the only bookmaker to actually take bets on Great British Bake Off after last week’s semi-final, and we did so knowing that as the show was pre-recorded someone somewhere would know the outcome, so we always kept stakes quite low, but that didn’t stop plenty of people getting their bets on before we took the decision to suspend betting because more than 90 per cent of bets taken were for Frances”. They would not have to wonder for too long why they ‘were the only bookmaker to actually take bets on the Great British Bake Off’ and some would argue that they deserved to get their fingers burnt (excuse the pun). The main question that these types of markets generate is how can a member of the public know when a bookmaker will or will not invoke the general rule of ‘No bets taken once the outcome is known’? In this particular case, we wonder whether any of those customers who placed losing bets on the Great British Bake Off will now demand their money back as the bet was clearly placed after the conclusion of the competition, so at the time of placement, strictly speaking, their bets had no chance of being a winner viz. ‘if you can’t win you can’t lose’! So, we have the old expression of ‘if you can’t win you can’t lose’, the 2005 Gambling Act that states that a bet can be a wager on an event that has already taken place and where one party of the bet knows the result, and, in this case at least, one leading bookmaker knowingly taking bets after the result is known and paying out winners... all very confusing! I would be interested to hear any other views regarding this part of the Act, or even some facts or background on the history of the expression ‘if you can’t win you can’t lose’ (email to: johns@ibas-uk.co.uk)
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Essential Guide to ... Live Betting GTECH
ARLAND
One of the most important elements
Arland integrates Betradar’s Live Channel
Ludovico Calvi, head of betting at GTECH, explains how live betting differs across geographies and how different operators have different demands. n the last three to five years, live betting, where permissible, has grown to become one of the most important elements of any gaming operation. GTech’s goal is to ensure the best technical solutions are in place for all our customers, both land-based and online, while we strive to tailor the offering based on the market and the individual operator. GTech’s interactive solutions consider both the market and the individual operator requirements and business objectives, which can vary greatly. For example, in Chile, Polla Chilena’s (the National Lottery) product is limited to a 53 per cent payout and can only offer selected markets for selected online games, while GTech’s Italian operations (Lottomatica) carries a competitive and attractive daily offering across both retail and online channels. A high performing, robust live betting product requires the right balance between several features: • Customer experience: Clear, quick, and simple to use. Players want to place their bets without being distracted from the game, and also want to be able to bet without delay. • Trader control: Giving the traders time to react to the ebb and flow of the game, and change the prices or prevent bets when there is a quick turnaround. • Cost-effective infrastructure: A higher specification platform and infrastructure generally produces a more responsive system, but at a higher cost. Technology must be designed to efficiently use the infrastructure in order to gain the best performance. The desire for different channels varies a great deal depending on the region. This is especially true in retail. Typically, the retail model is based on sales at generic outlets, such as, convenience
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Arland has taken the cooperative approach to live betting by placing the Betradar’s Live Channel into its Bookmaker5 software.
ACTION IMAGES / CARL RECINE
stores, bars, tobacco shops, and newsagents who are selling sports games along with lottery and other financial services. In that circumstance, live betting is not uniformly expected. However, when the sales model is more akin to a sports café or dedicated betting shop, retail can be a successful vehicle for live betting, especially where there is table service. Mobile, however, is increasingly a major channel for live betting as it allows players watching the match to bet even when offline betting is not available. There are, however, certain challenges associated with mobile live betting. Because of screen size and bandwidth constraints, mobile devices are not well suited to watching games and it is harder to present betting offers quickly and efficiently. In the future, interactive television is likely to become more important for live betting as the commercial arrangements between content providers and bookmakers evolve.
SPORTING SOLUTIONS Every sportsbook will already be focusing on the World Cup next summer, but Simon Trim, managing director of B2B software and data services provider Sporting Solutions, highlights the importance of not neglecting other sports. here is nothing bigger than a World Cup for a bookmaker and Brazil 2014 is going to be absolutely huge. The kick-off times are attractive to European customers and England qualifying should boost turnover by around 30 per cent. It’s a great opportunity for sportsbooks of all sizes, but it is also a major challenge and companies need to be careful not to miss out on other opportunities. Smaller companies will need to invest heavily – both in funds and resources – in order to compete with the big boys, while the larger operators must do the same to out-muscle their competitors. Resources will come under increasing pressure as the tournament approaches and sportsbooks will need to consider outsourcing elements of their trading function to cope
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Don’t neglect other sports in World Cup year with demand. Sporting Solutions is the undisputed market leader when it comes to the provision of quality pricing and trading services. Smaller sportsbooks need to compete on the core World Cup football business – something we offer, specialising in growth areas like player markets and specials such as bookings and corners. Although bigger firms will have the tournament covered internally, they will need expertise on other sports with the majority of their resources tied up. They can’t afford to miss out on the England v India Test series, Wimbledon and Royal Ascot and this is where Sporting Solutions can help. Pricing, trading and modelling excellence has always been at the centre of Sporting Solutions’ business. Our invest-
ment in market-leading models means we offer our partners the widest coverage and largest selection of markets, while maintaining and enhancing their margins, something that is vital during a World Cup summer. We’re now not far away from the start of the biggest betting event on the planet, but there is no need for sportsbooks to panic. Sporting Solutions is ideally positioned to assist with the core World Cup business for those that require it, as well as managing the other summer sports for the bigger operators. This holistic service means betting companies of all sizes can concentrate fully on making the World Cup as profitable as possible, comfortable in the knowledge that their other sports are in safe hands.
or years the companies Arland and Betradar stand for quality, reliability and innovation within the sports betting industry. By integrating Betradar’s Live Channel into the Bookmaker5 software platform, sports enthusiasts are even closer to the action and live betting gets even more dynamic and exciting. Live betting has become an integral part of today’s betting business and is responsible for a large part of the turnover. By dynamically changing the odds and markets during the game, sport events become more thrilling and attractive for the betting customer. Betradar’s Live Channel is the first product, that combines live odds, live statistics and of course live video of international sport events on one single screen. Roughly 1.000 betting offices worldwide are already using the new streaming channel, which offers more than 16 hours of current live sport on a daily basis. Next to the French Coupe de la Ligue and Ligue 1, the rights portfolio includes the American MLS, the world’s strongest handball league HBL, the EHF Champions League, the German and Spanish basketball league BBL and ACB as well as numerous international ATP and WTA tournaments, just to name a few. Through the integration into the successful sports betting platform Bookmaker5, Arland customers now have access to this product - and thereby a unique opportunity to raise their potential turnover and to make live betting even more attractive. The firm said: “With Bookmaker5, sports betting offices have all the possibilities to offer an unrivalled betting experience to sport fans. The integration of Betradar’s Live Channel is a perfect addition to our current live offer and will excite partners and customers alike.”
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BETTING PROMOTION
Checklist for successful operation Richard Hogg, chief marketing officer at Betting Promotion, laws out the potential pitfalls when it comes to offering live betting odds. hilst there is plenty of turnover available in Asia for sports betting, profiting from it is fraught with dangers! Betting Promotion isn’t a B2C operation and instead focuses on providing quality and reliable content in the form of odds and risk management to its clients who ultimately deal with the end user - the sports bettor. In order to successful offer sports betting in the Asian market place you should consider at minimum the below points: Good, reliable systems - if your IT infrastructure isn’t up to task then your systems will inherently fail and be of no use for the customer. If the data you provide on your site is wrong you will be picked off by the sharp customers. If your systems don’t allow for the way business is carried out in the Asian market place, you will not get any custom. Fast and reliable data. You need to get the
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live information quick, if a goal is scored, a penalty/red card awarded and if you offer corner/card markets you need information about when a corner/card is given. The more markets added, the more live information needed. Look to base your prices on a model that generates all markets. Update this model with relevant data during the game to be able to have correct prices the whole game. Wrong prices during a short period might be expensive since the users nowadays are shrewd and not without their own access to live data. All markets should be connected otherwise it might be possible that you offer ‘sure’ bets, i.e. under 0.5 Goals and correct score 0-0 must have the same price (same bet but different markets). Offering live betting takes a lot of resources if you haven’t automated your sys-
RICHARD HOGG
tems and if you don’t have a model where the markets are connected you will need to have several people to run just one game. There are plenty of companies offering odds. Where these get this data from should be fully understood. If they are taking from other bookmakers sites then from proven past industry experience this model does not work. Companies used to grab prices or loose XML feeds from other bookmakers and supply to some start-ups, but they quickly went out of business.
GTECH™ brings the best gaming products to players around the world through millions of hours of expertise across all segments and channels. With customer satisfaction at our heart, we provide innovative concepts that drive sustainable growth.
You only have to look at bookmakers annual reports to understand how complex this business can be. Whilst one bookmaker may win on Champions League another may lose as a recent example. You also need to understand some bookmakers use quantitative analysis over traditional odds compiling/ trading, so may have a different perspective. Odds are your responsibility and all mistakes cost money. Imagine the loss of £20,000 for one simple incorrect price or delayed market suspend!
From interactive to land-based, we are Bringing Gaming to Life!
WWW.GTECH.COM www.gtech.com © 2013 GTECH. All rights reserved. All trademarks and logos noted herein are trademarks owned by, or licensed to GTECH Corporation.
ExCeL, London 4 - 6 Feb 2014
“The one event bookmakers have to be at” Jim Cremin, Racing Post
Under starters orders as Racing Post backs SENSATIONAL ICE
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he Racing Post will once again be taking a prominent position at ICE Totally Gaming, with Richard Thorp, Head of B2B Operations describing it as ‘the one event the Racing Post has to be at’. The high profile position will feature the Racing Post Café which will once again be the main hub at which the betting industry gathers to consider ideas and new concepts. Racing Post staff will be on hand to discuss the
paper, the web, tablet and mobile platforms as well as its complete B2B offering. Looking ahead to February’s showpiece event Thorp added: “ICE is the showcase for gaming and betting innovation. Our advice to visitors is to give yourself as much time as possible, pre-plan your meetings, avoid rushing and enjoy being inspired at what is the world’s largest and most influential gaming event!”
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CE visitors are being encouraged to pre-plan their meetings with exhibitors to ensure that they don’t miss out on the huge commercial opportunities which are available at the London event. The advice comes as research conducted by Vivid Interface amongst exhibiting companies at the 2013 show, confirms that ICE London is the international gaming industry’s commercial capital. The Vivid Interface research showed that exhibitors held on average 52 business meetings at ICE, a figure, which when applied across all 2013 exhibitors, totals some 25,012 commercial gatherings. Vivid’s Geoffrey Dixon said: “ ICE is the meeting place of choice for the international gaming community and the challenge for visitors is to ensure that they are able to meet with the exhibitors they want to do business with and clearly the best way to achieve that is to arrange meetings in advance of the exhibition opening rather than simply leaving it to chance on arrival. ICE is simply too popular an event to risk missing out.”
It’s all about business at gaming’s international commercial centre
Be part of the most influential business community i
“..without doubt, ICE Conferences is the most worthwhile learning and networking programme in gaming” Ron Goudsmit, Chairman, European Casino Association
Totally Gaming
2014 event is on course to set new records
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CE Sensational, is the theme of the marketing campaign which organisers are hoping will secure the 4th consecutive year of growth at what is the world’s biggest gaming expo. The experiential campaign, will appear throughout international gaming media, as well as in an extensive print and digital direct marketing campaign and innovative social media promotions. Kate Chambers, Portfolio Director responsible for ICE Totally Gaming said: “The 2013 campaign succeeded in helping to attract a total of 22,247 unique attendees, a 4.3% increase
on 2012, 8.6% up on 2011 and a massive 17.8% uplift on 2010. The number of visitor days - the average amount of time visitors spent at the event - increased from 1.51 days (2012) to 1.81 (2013) taking the total number of visitor days spent at February’s event to 40,267. The commitment we are making to our stakeholders is to invest in the ICE brand with a far reaching and truly ‘sensational’ multi-media campaign which connects with the 100+ nationalities who we welcome to London each year.”
Growth in attendance 2010 - 2013
Why ICE Conferences is the best learning programme in gaming
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2014
ttending ICE Totally Gaming, the world’s biggest gaming event, isn’t just an opportunity to see the totality of the international gaming experience all under one roof: it’s also a once a year chance to engage, network and learn from over 150 of gaming’s most eminent thought leaders courtesy of the ICE Conferences programme. Comprising eight dedicated streams put together by the ICE team of gaming experts, the programme covers gaming’s hottest topics and biggest growth areas, delivering a unique opportunity to benefit from over 40 hours of targeted learning and networking. Featuring gaming’s most respected influencers including Mitch Garber, Harrie Temmink, Philip Graf and Luca Frigerio – to name but a few – ICE Conferences really is ‘like other conferences ...but in colour’. Monday 3rd February: The 6th International Casino Conference. Tuesday 4th February: World Regulatory Briefing, CRM, Loyalty & Retention, Mobile Gaming: Wednesday 5th February : Cybercrime, Security and Regulatory Compliance in Gaming, Monetising Social Gaming, Game Design & Development, Next Generation Lotteries.
For more information and to book your place visit icetotallygaming.com/conferences
y in gaming - register for ICE at icetotallygaming.com
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Retail B2B Retail Listings
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www.sis.tv info@sis.tv
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“ ” BT Sports takes Champions League rights BT Sport will be the new UK home of UEFA Champions League and UEFA Europa League football, following a tender process in which BT won the exclusive live broadcast rights to all 350 matches from both tournaments. The rights run for three seasons from 2015/16. BT chief executive Gavin Patterson commented: “The live rights will give a major boost to BT Sport and give people yet another reason to take our terrific service.
GAMING MACHINE
INSPIRED’S CUSTOMER SERVICE TEAM REACHED A 98 PER CENT SATISFACTION LEVEL
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Inspired improves its service again making sense of the gaming industry
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www.mrgsystems.co.uk sales@mrgsystems.co.uk
nspired Gaming Group, the supplier of SBG gaming machines and premium games to UK bookmakers - including William Hill, Betfred, Paddy Power and over 20 independents - is celebrating taking its customer service to new heights with its third consecutive period of improved LBO customer satisfaction survey results. Between 8 July and 4 August 2013, Inspired’s customer service team made 548 telephone calls to various LBO venues within 30 minutes of a field engineer closing a service request ticket. Feedback gathered from customers relates to various aspects of the visit by the field engineer including helpfulness, knowledge, professionalism, appearance, and general satisfaction regarding the service request experience. Amongst other positive results, feedback showed that in the last period, circa 98 per cent of customers were happy that the time taken for an engineer to reach their sites met with their expectations and circa 98 per cent
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Customer satisfaction surveys have shown that Inspired has been continually improving its service this summer. of customers were satisfied that the engineer solved the problem; this is a steady rise from 96.3 per cent and 9 per cent respectively across 12 weeks. Lee Gregory, managing director for the UK at Inspired Gaming Group, commented: “We are proud of our service team’s ability to react quickly to all situations and to fix issues in record time. We are therefore extremely proud of these latest results. Gregory claimed that Inspired’s serverbased VLT gaming machines are the highest income machines in UK bookmakers that the firm has signed a number of new contracts recently as a result. He added: “I am sure that our exceptional, and constantly improving, customer service levels are a contributing factor in the commercial success of our machines and our rapid growth
in this market. We are committed to being number one and will continue to make improvements wherever possible.” Inspired recently showcased its range of new betting equipment at the BOS Bookmakers Trade Fair in Wolverhampton. While the new style Eclipse gaming machine didn’t make an appearance, the firm’s Storm HD B2/B3 gaming machine was on show and is now available for purchase or hire. It featured new hit games such as Diamond Goddess and Jungle Bingo There was also a guest appearance from darts champion Adrian Lewis who was there to promote Inspired’s new Virtual Darts game. Inspired also showed its full range of eight other Virtual Sports, four Virtual Numbers Games and BetBOX bet management and EPOS system.
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GAMING MACHINES
RECRUITMENT
CONTENT
Product focus
SIS carries BAGS again
etting industry supplier OpenBet has invested in its product strategy with the appointment of Joe Eldridge in the new role of chief product officer. He will play an integral part in defining, strengthening and implementing OpenBet’s core product strategy to ensure greater agility across the business whilst maintaining the quality and reliability of OpenBet’s products. Eldridge will also be focused on driving continual product innovation, which will be customer-driven and at the forefront of market trends. Previously at Amazon, PermissionTV and Agency.com, Eldridge said: “As OpenBet grows, it is imperative that we continue to innovate and lead the market using agile techniques that meet our customers’ needs.”
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Ladbrokes achieves Clarity with SG GEORGE IRVINE
AGS (British Afternoon Greyhound Services) has published its fixture list for 2014 - and all 28,606 races will be covered by SIS. There will be 2,300 meetings from the 17 tracks and SIS cameras and production crew will be at each one, beaming the action live into betting shops via its LBO channels. George Irvine, managing director, betting and international, SIS Betting, said: “BAGS is a crucial element of our service to bookmakers and is very popular with our customers and their clientele. We look forward to another year of working with BAGS and delivering a top quality product into betting shops.”
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G Gaming has extended its contract with Ladbrokes to be the sole UK provider of server based gaming machines to the betting shop operator until 2019. Since partnering with Ladbrokes in 2010, SG Gaming’s content and Vision cabinet has helped drive Ladbrokes gaming machine offering. This deal will see the introduction of a new innovative cabinet called ‘Clarity’, which has been developed exclusively for Ladbrokes and will be rolled out during the first half of 2014. Group managing director at SG Gaming Phil Horne (pictured) said: “SG Gaming continues to provide an innovative and diverse range of content across multiple platforms for the gambling sector. We are therefore extremely delighted to extend our current agreement with Ladbrokes.
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“By renewing the contract early, Ladbrokes has demonstrated its commitment to the services provided by SG Gaming including our exceptional operational support. We’ve built a strong relationship with their team over a number of years and look forward to continuing to drive positive machine growth for the company.” Nick Rust, UK & Ireland director at Ladbrokes, added: “Machine performance continues to be crucial to our overall strategy, and our partnership with SG Gaming has been hugely successful. It has delivered fantastic game titles to our customers, enabling us to grow revenues over the last three years. This new agreement marks the next phase of our partnership and will ensure Ladbrokes stays at the forefront of the competitive gaming machine industry.”
JOE ELDRIDGE
AWARDS TERMINALS Terminal launch ports betting service provider Wingo has presented a new software version for its self-service terminals. The new software boats a clear structure, bigger buttons and an animated background attract the attention of the customer. The highresolution 16:9 displays are also supported with the interface adapting automatically to the set resolution to provide a perfect betting experience for the customer. Despite all visual improvements, the software is also designed to support older terminals. If the hardware does not have the necessary performance, some visual effects are disabled automatically. This ensures a maximum of compatibility whether the bookmaker is operating a used terminal of older design or a new high-end terminal. The new wingo.terminal fully supports loyalty cards. Customer can not only login with their customer account, deposit money and check placed bets, but also register directly on the terminal if desired.
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Sportradar gets shortlisted wiss firm Sportradar, supplier of sports and betting related data, has been selected as a candidate for Red Herring’s 2013 Top 100 Global award, a prestigious recognition honouring the year’s most audacious and far reaching private technology companies and entrepreneurs from across the globe. “Technology companies are becoming the bright spot in the economic outlook based on their increasing role within macro-economic environments,” stated Alex Vieux, chairman of Red Herring. “2013 has demonstrated the sector's vibrant activity and its contribution to the global economic recovery. An unprecedented number of entrepreneurs are jumping ahead of the competition and making a difference. Breakthroughs obsolete each other faster than ever before. Sportradar is performing exceptionally in its field and strongly deserves to be singled out as one of the Red Herring Global Finalists.”
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ALEX VIEUX
David Ross Fabrications Ltd Metalwork supplied from our designs or your own. 7YV[V[`WL [OYV\NO [V WYVK\J[PVU (SS Ä UPZOLZ For example: Bet slip dispensers Light boxes-wall and freestanding External ashtrays Magnetic wall boards Swivelling Tower with Poster Frames Pelmet Lights Upstands Floor bins with or without logo Paper Racks Pen dispensers Leaner legs
Coupon Dispensers Poster Frames Racing Post Holders Machine Tables Bandit Screen Posts Window Display Legs Stainless Steel Handrail Systems TV Gantry Systems LCD TV Brackets Plasma TV Brackets
SPECIALIST SUPPLIERS OF METALWORK TO THE BETTING INDUSTRY FOR OVER 16 YEARS UNIT 1E PECKLETON LANE BUSINESS ESTATE PECKLETON LEICESTER LE9 7RN TEL;01455 823721 FAX;01455 828339 EMAIL;davidross7@btconnect.com www.davidrossfabrications.co.uk Photographs courtesy of Coral Racing & Chisholm Bookmakers
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Sportsbook
“” Infinity AR will provide a real world environment for the online gaming user that he could never have imagined before.
Enon Landenberg Chief executive officer Infinity Augmented Reality
William Hill has signed up Infinity Augmented Reality to become its Augmented reality technology provider in a bid to bring more ‘dynamism and exhilaration’ to the firm’s mobile platform. CEO Enon Landenberg said: “The innovations of AR technology have evolved from visionary to reality and our implementation platforms are perfect for this medium. Our affiliation with an eminent and prestigious gaming company such as William Hill promises to be a very fruitful enterprise.”
INTEGRITY
SPORTRADAR WILL HELP MONITOR EVENTS SUCH AS THE ASIAN CUP
ACTION IMAGES / JASON O’BRIEN
Sportradar partners Asian Football Confederation
AFC has become the latest integrity partner to Swiss betting data experts Sportradar. The Asian Football Confederation (AFC) reached another milestone in its fight against match-fixing after signing an agreement with sports and betting-related data provider Sportradar. Under this agreement, Sportradar will monitor a number of competitions including the AFC Champions League, AFC Cup and the 2015 Asian Cup and Qualifiers for signs of betting-related corruption and fraudulent activity. The agreement was signed late last month in Kuala Lumpur by AFC General Secretary Dato’ Alex Soosay and Sportradar
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CEO Carsten Koerl. Koerl said: “Sportradar is prepared to do its part to help AFC fight match-fixing in football. I’d also like to commend the continental football body for being proactive in this endeavour because match manipulation in sports has taken a different twist with the involvement of sophisticated international organised crime organisations. Sportradar is honoured to have the opportunity to utilise our technology and expertise to work closely with AFC to help protect the integrity of Asian football.” AFC General Secretary Dato’ Alex Soosay added: “AFC’s partnership with Sportradar
is the latest step taken to counter the threat that match-fixing poses to football in Asia. We look forward to utilising Sportradar’s proven expertise in this field and developing an effective working partnership.” The recent football match-fixing scandal in Australia has served to highlight the benefits of Sportradar’s extensive skills, technology and knowledge in this field; not only did it detect suspected manipulated matches but its unique systems and databases were used to warn the authorities in advance of individuals of interest registering to play in their leagues. The seriousness of this case was highlighted in late October when FIFA extended the Aus-
tralian football-related activity ban imposed on the four players and one official involved in the case to apply worldwide. This case, along with other recent issues in sports around the world, reflects the true global threat posed by match-fixing in the 21st century. Those responsible are employing ever more diverse methods and targeting previously unaffected countries and sports in a bid to maximise illicit betting profits. AFC are being proactive by installing a robust integrity program and the relationship with Sportradar will be a vital step in safeguarding the integrity of Asian football in the future.
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PLATFORM
ingo.betweb, the online platform for sports and live betting, has been improved after the launch of a free update. A new design makes it easier for customers to navigate, and customers can now mark leagues and games as favourites for faster access to preferred sport events. It also enables them to keep a close eye on the selected games. With a slide control, the customer can limit the offered games to a certain time period, which allows finding current games much faster. The live betting section now offers three different live views: Next to the popular and familiar Live3000 view, there is also a single or conference view with individual scoreboards for every type of sport.
B2B Sportsbook Listings
PLATFORM
LVS helps to Betclearer
Upgrade for Wingo.betweb
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New launch for Contorabet.com ontorabet.com has become the latest sportsbook to go online with EveryMatrix. Created to target the increasingly receptive CIS region, and Russia in particular, Contorabet.com will be managed by the newly appointed head of gaming operations in EveryMatrix, Ryan Henderson. Henderson, who has over 10 years’ experience in managing player acquisition for various online and mobile gaming operators, said: “I am very excited to be joining the EveryMatrix family to launch what will be the first of many, fully-managed betting and gaming solutions. We have already seen significant interest in this exciting new brand; signing up over 10,000 players during a week-long prelaunch campaign for Contorabet.com.”
PASCAL BLYAU
765174%'& 21465 '66+0) 1.76+105 ports betting solutions developer LVS has announced the launch of a new platform for Bet Butler-owner Betclearer, which went live in October. Through Bet Butler, customers get the best odds from over 60 bookmakers and have access to a suite of betting tools to increase their returns. Betclearer signed with LVS in May 2013 for the provision of the LVS Advanced Betting Platform (ABP), the development of a website and integration work with the Betclearer proprietary brokering engine. The project was completed in a little over four months allowing Betclearer to offer a much larger range of sports and markets and have a very efficient solution for live betting thanks to the high level of automation achieved by live feeds and the derivation tools available in the platform. It is also able
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to add casino games to its portfolio, seamlessly integrated to the main sportsbook. LVS and Betclearer worked with an agile approach, developing the web solution together, using LVS Apollo framework, which enables reduced development time thanks to its wide library of widgets and integrated CMS. As ABP exposes all its services through an open REST API, the integration to Betclarer brokerage engine and other services was straight forward and easy to achieve. LVS managing director Pascal Blyau said: “This project demonstrates the capability of LVS to deliver high standard sportsbook solution in a short lead time. We are now working on the mobile to be delivered by the end of the year. Using HTML5 we will provide an excellent mobile solution for iOS and Android for a portion of the cost of native applications.”
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LIVE BETTING Genting goes live SBhas provided a live sports betting service operated on behalf of Genting Alderney, part of the Genting Group, one of the world's largest operators of retail casinos and integrated resorts. The service includes FSB’s proprietary live sports betting platform, real-time algorithmic pricing models and market leading CRM tools for player segmentation and bonusing. The turnkey solution also includes promotion management, hardware hosting and user interface design that is seamlessly presented as part of the Genting Games on-line offering. The service is offered as both a mobile and desktop service and can be promoted from within the retail casino environment.
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TRADING Get algorithm eonet Securities, the European specialist in execution services, and LiquidMetrix, the London based financial research and performance measurement company, are collaborating on the creation of a new enhanced suite of trading algorithms. This unique partnership will provide clients with the established expertise in Electronic Trading of Neonet Securities coupled with the market leadership in Quantitative Research and Analysis of LiquidMetrix. Neonet Securities CEO Tim Wildenberg said: “Neonet’s innovative electronic trading infrastructure and smart order routing technology will leverage the highly respected quantitative pre- and post-trade analysis models and the unique database of order book data from LiquidMetrix.”
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FANTASY Totel wins again
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otelFootball has won a second pitch competition in just four weeks after
beating a number of other contenders during a Dragons Den-style event at the Social Gambling Conference held in London late last week. Director Keith McDonnell said: “Winning The Pitch at EiG was fantastic but to win a second prize in less than a month in front of a panel of highly experienced and astute investors is the perfect early Christmas present. This is yet another nod to how strong this product is and the great opportunities for investors as fantasy sports continues to boom. What is absolutely clear for bookmakers and gaming companies about working with Totelfootball is the customer retention and data analytics benefits.”
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In on the Spin deal has been agreed to allow Spinball Enterprises’ flagship product Fantasy Football Crystal Ball be made free of charge to users of Global Gaming Network’s fantasy sports website AmpedFantasy.com, providing them with targeted analytics to improve chances of winning contests. “We’re pleased to partner with Spinball Enterprises, the leading decision support analytics provider to the fantasy sports industry. Now our many Amped Fantasy subscribers will have free access to the most successful set of analytics to make better lineup decisions, leading to a greater winning percentage of contests entered, and an overall improved player experience,” said Stephen Kern, President of Global Gaming Network.
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making sense of the gaming industry
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iGaming Pinks slips in
Warehouse games live
Microgaming has extended its games portfolio with the addition of Racing for Pinks, a 5x3 reel, 243 ways to win video slot themed on street racing, which is available on Microgaming’s download, Flash and Quickfire platforms.
Egyptian Gold and Dr Frantic & The Lab Of Loot have now gone ‘live’ on the Sky Vegas online gaming platform. Developed by Derby-based content developer Games Warehouse, the firm says that the appeal of these games is the totally unique ‘Lock ‘n’ Load’ feature.
Retro appeal Net Entertainment has channelled Las Vegas and the best new-age video slot technology to deliver the latest game Twin Spin. Offering 243 ways to win and no bet lines, the game uses music to take players back to a time of traditional slot machines.
Hoff and running Greentube CEO Thomas Graf is pleased with his firm’s new Hoffmania slot game. He commented: “Every generation knows David Hasselhoff and this game is not only fun, it also offers a lot of winning combinations. We are certain it will do really well.”
TABLET
Ian Dunning, spokesperson for live dealer supplier EntwineTech, explains the firm’s approach to the tablet platform and how it promotes sociability.
A new dimension to tablet gaming ou’ve recently launched a new mobile platform - what does this provide to tablet gaming? Entwine Tech’s new mobile platform brings a welcome additional dimension to tablet gaming. As you would expect from the market leader in web based Live Dealer software with a long history of innovation and world class design Entwine Tech’s mobile Live Gaming software provides customers with a wide range of high quality Live Dealer games.
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Is the tablet the perfect channel for live
dealer? At Entwine Tech we spend a lot of time getting to know our partners customers well, and we know that they want software they can trust, that is fun to play, convenient and reliable. Tablets provide a perfect platform for Entwine Tech to deliver all these requirements. The feedback we have received from customer shows that they are increasingly turning tablets and mobile devices to enjoy Live Dealer games. What can you do on the tablet that you can’t do on the mobile?
Touch screen technology has revolutionised how customers interact with our live dealer software. Selecting games and placing bets is now even more like being at your favourite land based casino. Tablets have also brought a more social aspect to playing live dealer, it is easy to pick up your tablet while sitting with a group of friends or at a bar, and share your experiences with them. Is there an increased focus on tablets from your customers? Entwine Tech’s partners have to compete with many forms of entertainment
available to their customers for a share of their disposable income. The ability to offer world class live dealer software on tablets has allowed our partners to offer their customers the ability to play on the move and remote from their PC or laptop. Mobile gaming is increasingly becoming the platform of choice for our partner’s customers. The convenience and ease of play of Entwine tech’s tablet software means this platform will soon dominate online gaming out of our 70+ licensees, 23 of them tried and love it and fight to launch first, so you can imagine the demand is enormous.
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B2B iGaming Listings
SLOTS
GAMES Mecca keeps the X Factor remantleMedia UK and Syco Entertainment have signed a partnership extension with Mecca Bingo for its activity on The X Factor. The deal sees Mecca granted continued promotional and product rights including exclusivity for bingo, as well as incremental rights for social marketing and TV advertising. The new agreement secures continued official partnership status through 2014 and into 2015 for product rights. As official gaming partner to the hit UK show, Mecca has enjoyed exclusivity of The X Factor Bingo game for the last three years. This latest extension includes provisions for additional desktop and mobile/tablet games that are already in development with launch targeted for early 2014.
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iSoftBet on FENGaming platform talian sports betting platform FENGaming has added a selection of iSoftBet games to its offering, meaning iSoftBet games will now be available to each and every subsidiary company affiliated with the platform. Over the last few years, FENGaming has grown exponentially in Italy, building its customer base and distributing its platform to a wide range of online games operators Andre Genovese, chief technology officer at FENGaming, said: “iSoftBet have created some truly engaging and innovative content over the last few years. We’re thrilled that we are now able to introduce our customers to their top-notch gaming software.”
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Net Entertainment it for Lottomatica et Entertainment has launched of a selection of mobile and desktop casino games with Lottomatica. Additional games will be released over time to enhance the local dot.it offering. Björn Krantz, chief of GMO and MD at Net Entertainment Malta, said: “We are delighted to have gone live with Lottomatica, allowing them to cross-sell our top online casino game titles through Lottomatica.it and Totosi.it channels. Both parties have worked very closely to integrate the Net Entertainment Casino into Lottomatica’s operational environment, and we are very happy for Lot-
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BJÖRN KRANTZ
Bwin.party picks up Amaya games maya Gaming Group has entered into a licensing agreement to provide a wide selection of online casino gaming content to Bwin.partyin New Jersey, subject to all applicable jurisdictional licensing requirements and regulatory approvals. Under the Agreement, online gaming websites provided by Bwin.party to its licensed gaming operator partner Borgata Hotel Casino & Spa in New Jersey will be integrated with Amaya’s Casino Gaming System. The integration will provide players with access to an extensive selection of Amaya’s proprietary and third-party online casino games. “Our agreement with Amaya will enable players in New Jersey to access an even wider range of market-leading online casino games through the partypoker.com, Borgatacasino.com and Borgatapoker.com gaming sites in New Jersey. We are delighted to be working with one of the premier providers of
online casino content in the market today," said Golan Shaked, director of games at Bwin.party. Amaya also announced that Bwin.party will launch a range of Amaya’s online gaming titles from its existing online gaming websites. Bwin.party is a global online gaming business with market leading positions in each of its four product verticals: poker, sports betting, casino and bingo. Its leading brands include Partypoker, Bwin, PartyCasino and Foxy Bingo. “We are thrilled to expand our longstanding partnership with bwin.party and extend our online gaming footprint,” said David Baazov, CEO of Amaya Gaming Group. “We look forward to leveraging our proven online casino content and bwin.party's strong reputation and partnerships to embrace the emerging but exciting online gaming market in the US and the existing online gaming markets they serve.”
tomatica, and its players who will now be able to experience the very best online casino games on the local Italian market.”
with the Delaware Lotteryto be the primary vendor team, along with 888 Holdingsto operate internet gaming systems and services in the State for an initial term of five years with four additional one-year contract extension options held by the Lottery. Dover Downs Hotel & Casino, Delaware Parkand Harrington Raceway & Casino, the three licensed video lottery agents in the State, each has their own distinct iGaming website connected to the Lottery’s single iGaming platform.
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PLATFORM Leander extends distribution eander Gameshas signed a major B2B partnership deal with Amaya Gaming Groupthat will see the distribution of inhouse and third party games to Amaya. The move will allow operators powered by Amaya’s Casino Gaming System to access all content on Leander’s LeGa Platform without the need for any additional integration. The addition of the Leander portfolio including games from Blueprint, Genesis and Quickspin, will allow Amaya to expand upon its extensive and engaging casino offering of over 250 games, including titles from its growing list of premium providers such as Bally, SHFLand Aristocrat.
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Delaware makes it online cientific Games Corporationhas announced that its iGaming portfolio is live in Delaware with poker, casino table games and casino slots gaming now available on the internet to adults located in the State. Scientific Games signed a contract
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BINGO Glossy Bingo mobile launch icrogaming’s HTML5 mobile bingo product is live with Broadway Gaming’s Glossy Bingo brand. This is the second mobile client launched by Broadway Gaming, the first being for their flagship brand Butlers Bingo which added mobile and tablet compatibility in Quarter 4 of 2012. Since this launch, Butlers Bingo has witnessed a significant increase in traffic generated on mobile. Just this month a Butlers Bingo player won an £11,500 bingo jackpot whilst playing on their mobile device. Microgaming head of bingo David Reynolds said: “Broadway Gaming has established itself as a leading operator of Bingo sites and Glossy Bingo will benefit greatly from taking our mobile bingo product.”
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Back office
“” This supplement highlights the constant shifts in the fraud landscape and challenges we all face.
John Cannon Head of ID & fraud Callcredit Information Group
Fraud report Callcredit Group has produced the 2014 Fraud & Risk supplement, in partnership with Credit Today. The supplement, which is in the November issue of Credit Today, looks at the risk of fraud, the challenges it presents across a wide range of sectors in which Callcredit operates and how it looks to respond to those challenges.
DATA
ANDREW GELLATLY: HEAD OF THE NEW GCRS DIVISION
The eLearning product from GamblingCompliance has now been joined by a new bespoke research arm called GCRS.
MyLotto24 signs up for eLearning course
amblingCompliance, provider of business intelligence to the gambling industry, has become the main eLearning provider to the MyLotto24 UK Group, providers of B2B and B2C online lotto betting services in the UK, for the next three years. GamblingCompliance launched its eLearning solution in September this year and MyLotto24’s companies are the first to take up this new service. GamblingCompliance will deliver six courses each year, covering Responsible Gambling; AntiMoney Laundering; Data Protection; Fraud & Anti-Bribery; Advertising Regulations and IT Security. Andrew Poole, MyLotto24 compliance manager, said: “By signing up for three years, we are ensuring constant learning
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on key regulation. This is important to us from both a compliance perspective as well as for the investment in our staff.” David Morgan, CEO at GamblingCompliance, commented: “This is a fantastic first deal with such a high-profile customer coming on-board. eLearning sits naturally alongside our suite of subscription and research products and it adds to our mission of delivering the most comprehensive market intelligence on all sectors in the gambling industry. “At a time of increasing complexity in regulations and compliance requirements across a raft of jurisdictions, we are pleased to launch a service which we believe will assist operators, regulators and other stakeholders meet key regulatory, reporting and social responsibility requirements.” GamblingCompliance has also
launched a new research arm, GCRS, to support the gambling industry with legislative tracking, detailed analytical commentary and product-specific market forecasts. Based in London, Washington DC, California and Taipei, GCRS’ bespoke research and regulatory support can assist with presentations to governments and regulators, helping to communicate the financial and business impacts of legislative and tax changes. Morgan explained: “We have invested widely in our capabilities, particularly with our US office, and have been rewarded with a surge in demand for our research and market updates, so GCRS will allow us to deliver new levels of advisory service to our clients across the international gambling industry.”
GCRS will be headed up by Andrew Gellatly, a member of the founding management team of GamblingCompliance in 2007 following an established career as a journalist and industry analyst. Well known in the industry, he has chaired and spoken at gambling conferences worldwide, including Global Gaming Expo (G2E), the Global iGaming Summit (GiGSE), the Gaming Executive Summit (GES) and the International Casino Exhibition (ICE). Gellatly added: “We want to help businesses maximise their opportunities and minimise legal, financial, reputational and operational risks. With our in-depth financial modelling capabilities and the most complete global database of gambling industry data, we are in a great place to be able to provide research of the highest possible accuracy.”
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BettingBusinessInteractive • DECEMBER 2013 Editor: Andrew McCarron Email: am@sjc.co.uk Tel: +44 (0) 1457 867 683 Managing editor: Ken Scott Email: ks@sjc.co.uk Tel: +44 (0) 1273 699 900
Advertising sales: Neil Judson, Email: njudson@gbmedia.eu Tel: +44 (0) 1204 396 397 Fax: +44 (0) 1204 392 748 Ad Production: Dave Roderick Email: gdk@sjc.co.uk
Contributors: John Samuels, James Walker, Alex Lee
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Fax: +44 (0) 1204 392 748 Subscriptions: Sarah Haworth, Email: shaworth@gbmedia.eu Editorial & Production: Tel: +44 (0) 1204 396 397 20 New Road, Brighton, BN1 1UF, UK Fax: +44 (0) 1204 392 748 Tel: +44 (0) 1273 699 900 Advertising & Subscriptions: Publishing Director: GB Media Corporation Ltd John Sullivan Bolton Technology Exchange Email: jsullivan@gbmedia.eu 33 Queensbrook, Bolton BL1 4AY, UK Tel: +44 (0) 1204 396 397 Tel: +44 (0) 1204 396 397 Fax: +44 (0) 1204 392 748
Opinions expressed in this publication should not be regarded as the official view of GB Media Corporation Ltd, except where stated. Views, opinions and recommendations contained in this publication are put forward for consideration only. No action should be taken in reliance upon any such views, opinions or recommendations. Neither GB Media Corporation Ltd nor contributors accept any responsibility for any loss occasioned to any person howsoever caused or arising as a result of or in consequence of action taken or refrained from in realiance on the contents of this publication.
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New Jersey approval eoComply has received approval from the New Jersey Division of Gaming Enforcement (DGE) to enter into agreements with New Jersey’s licensees and Internet gambling permit holders. Already GeoComply has entered into agreements to serve as the trusted geo-location technology solution to several of New Jersey’s casinos and internet gaming platforms. GeoComply’s CEO Anna Sainsbury said: “We are honoured to receive this approval from the DGE. Since inception, we have ensured that compliance with the applicable laws and regulatory requirements is at the heart of the GeoComply solution. We are committed to ensuring that GeoComply provides the highest level of accuracy and integrity to New Jersey’s licensed operators.”
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Secure licence ecureTrading Inc, a leading independent online payment and security provider, has also received approval by the New Jersey Division of Gaming Enforcement to become a vendor for internet gambling services. The approval of an ancillary license, which validates the integrity of the company and its services, allows SecureTrading to enter into agreements with casinos licensed for internet gambling operations. Chris Thom, chairman of SecureTrading, said “We’re prepared to provide our partners the most sophisticated technologies available that seamlessly work to ensure financial transactions are safe and consumers are protected. It’s an honour to be the only financial payment processor to have been awarded an ancillary license in New Jersey.”
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Notes for contributors: BBi welcomes the submission of articles for consideration by the editor with a view to publication. Submission of an article will be held to imply that the article contains original unpublished work which GB Media Corporation Ltd may lawfully publish. All submissions are made at the owner’s risk. © GB Media Corporation Ltd, 2013 All rights strictly reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means without the prior written permission given, full acknowledgement of author, publisher and source must be given.
B2B Back Office Listings
FRAUD
MoU between Alderney and Malta Gaming jurisdictions Alderney and Malta have signed a Memorandum of Understanding (MoU) agreement that will set new standards in the setting up of business friendly environments. Of immediate benefit to operators will be the ability to provide services from Alderney into Malta and vice versa without the expense of deploying equipment in each jurisdiction. Alderney’s director of ecommerce development Robin Le Prevost commented: “The MoU is an agreement to exchange information between regulators on matters pertaining directly to their areas of responsibility but it also includes commitments in other areas which will have a direct impact on our respective operators.”
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Jaro marches to Experian xperian, the global information services company, has partnered with Jaro, an innovative new online game which is aiming to become the world’s largest single annual fundraising initiative with prize money of $1bn. Experian will provide the new charitable e-gaming concept with its identity verification services to help the organisation authenticate the age and identity of its users. Experian’s automated identity verification tools, Prove-ID and ID Manager, will be integrated into the Jaro platform, enabling operators to quickly and easily access Experian’s services to check player identities in realtime. This partnership will ensure Jaro can counteract issues such as identity fraud and underage gaming, while also guaranteeing the integrity and fairness of the tournament. Experian’s authentication tools, Prove-ID
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PAYMENTS Ukash goes racing lobal online cash payments provider, Ukashhas joined forces with Cheltenham Racecourse to sponsor activities during the second day of The Open, giving its name to the new £20,000 Listed Ukash Mares Bumper that concluded the racecard on Saturday 16 November. Miranda McLean, marketing director at Ukash, commented: “As well as helping to support a traditional UK sport, we feel that horseracing offers us an excellent opportunity to build awareness of Ukash among race spectators where there is a real synergy between our product offering which allows consumers to place a bet online using cash, safely and securely.”
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DATA Mobile study new consumer survey ‘Awareness, Attitudes and Motivations - UK Mobile Gambling 2013’ has been released. The Commercial Intelligence survey, a joint venture between Clarion Eventsand Vivid Interface, interviewed 2,000 mobile gamers across the UK to explore issues around brand awareness and usage, motivation, attraction and influences, attitudes to and frequency of playing, spend, multiple account usage and cross over playing. The survey
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and ID Manager, will allow Jaro to select which criteria it checks against, making sure that identity verifications are accurate and robust. The purpose-built user interface also delivers simplified results, highlighting if there is a problem in the verification process. By determining the authenticity of customers, fraud levels will also be mitigated Gary Wood, MD at Experian Decision Analytics, commented: “Jaro is a very exciting new concept and we look forward to working in close partnership to deliver the identity validation process while also reducing any risk of fraud. The online gaming industry continues to grow at a rapid pace and with increased competition in the market, it is more important than ever for online businesses to reduce the length of time and margin for error that occurs during player verification and customer transactions.”
also examined sports betting, casino, poker and bingo players as well as the key 15 per cent of mobile gamblers who are active across all of the four main types of mobile gaming.
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Bally Enjoy deal ally Interactive is to provide its iGaming Platform solution to Conrad Punta del Este Resort & Casino in Uruguay, which is owned by the Chilean group Enjoy. Conrad Punta del Este Resort & Casino general manager Juan Eduardo Garcia said: “We are excited to announce an iGaming platform partnership with Bally Technologies which will provide more outstanding benefits and entertainment options for our loyal patrons. Even more exciting is the fact that this online gaming platform will be offered internationally from our property in Uruguay, strengthening the link between the casino and our overseas customers.”
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Comment
A mature relationship is vital In a recent speech Gambling Commission chairman Philip Graf spoke of the importance of using innovation to improve player protection and, as this précis shows, to champion a mature relationship between the regulator and the gambling industry. The Gambling Commission has a duty to permit gambling - that’s clearly a pro-growth duty but one which is subject to consistency with the pursuit of the licensing objectives. Our primary responsibility remains the protection of those who gamble and the wider community, not the protection of those who provide gambling. We aim to achieve public protection costeffectively and with the smallest possible intervention but our approach is hindered in two particular ways: • On the regulatory side, there are some hardwired requirements set down by Parliament that reflect strongly held views about the potential harm from gambling and how to prevent it. Such physical controls are inevitably blunt instruments affecting individuals not needing protection as well as those who do - and they are becoming less effective as gambling is now accessible anywhere and at any time online. • On the industry side, operators have yet to convince the public that they recognise that the entertainment they provide has real risks of people coming to serious harm from overspending or becoming overfixated on gambling - and mitigation of those risks is at the heart of the way they conduct their business. It is not sufficient to do just enough to satisfy the regulator, pass an inspection or stay technically ‘legal’. The key to improvement lies within the i n d u s t r y ’s grasp - operators must accept they are in the business of encouraging
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people to participate in a potentially harmful pastime and implement ways to ensure player protection; even though it will inevitably involve some costs and reduced revenue from some players. This could unlock public acceptance of less blunt controls to allow businesses to take advantage of the opportunities technology provides. So it is good to see the revised industry codes around player protection and a far greater commitment to providing data and supporting research into effective player protection and harm prevention. But there is more to do. Take higher stake gaming machines as one example. While the impact of these machines on problem gambling is still not clear, the industry must show it accepts the clear evidence that some people come to a lot of harm playing them. Instead of looking at practical solutions, too often parts of the industry have fallen back on saying there is no evidence that higher stake machines cause problem gambling. To move forward we need all sectors of the industry to work together to actively develop and implement practical ways to protect players. The industry must now build on promising recent developments and provide a demonstrable commitment to monitoring and evaluating their effectiveness. A mature relationship between regulator and the regulated is vital if we are all to achieve the aim of providing players with a fair and safe environment in which to gamble, while allowing the gambling industry to innovate and grow. A full version of the speech is available online at www.gamblingcommission.gov.uk.
Timewasting withou he last month has seen an incredible surge in debate in the UK Parliament on the issue of gambling, mainly due to the breakneck speed at which the government is trying to shove through its latest batch of gambling regulations. The Gambling (Licensing and Advertising) Bill, which everyone else but Hansard is referring to as the Point of Consumption Tax Bill, has been discussed and debated to within a clause of its existence. Some MPs have taken the Bill’s aims at face value and discussed issues such as increased consumer protection (while trying to crowbar in some of their own pet subjects such as FOBTs, local planning laws, National Lottery, sports rights and spread betting). This is good news for the government as the only way the bill is going to pass muster at European level is if it is to strengthen the licensing process. However if it is deemed
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andrew mccarron viewpoint
that the law is simply to raise taxes, then the European Commission could well block the legislation and begin a decade’s worth of infringement procedures. Let’s not forget how tortuous the sale of the Tote became as the then government tried to jump through various state aid hoops. So no doubt the government’s lawyers were wincing at the bravura performance by Conservative MP for Shipley, Philip Davies, who went to town during the bill’s second reading, almost mocking those who were dancing around the subject of taxation. When it became his turn to speak he did so plainly: “This has nothing to do with regulation or player protection; it is about taxation and tax rates, as the Treasury made abundantly clear in its forecast.” The industry in Gibraltar has very wisely retained the position that it may make a legal challenge against the Bill in Europe (where it has been strengthening its voice
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“I welcome the minister to her position in the best job in government - the minister for sport. It is unfortunate that it comes with gambling, tourism and other things on top, which is a bit of a problem.” Former minister for gambling Gerry Sutcliffe welcomes the current incumbent Helen Grant, suggesting that he didn’t care too much for the industry’s side of the portfolio.
An opportunity to seize control of pricing Stephen Harris, racing editor at tipster social network bettingexpert, discusses some of the issues arising from Ladbrokes’ foray into the exchange market in an extract from bettingexpert.com/blog. ow does the ownership of a new Ladbrokes exchange sit with the idea of betting to a bigger margin on their own website and betting shops? It is hard to reconcile that Ladbrokes will be betting to around 107 per cent on football matches in their shops and online, while running an exchange that offers better prices into around 100 per cent (plus commission). So why did they buy up Betdaq (presumably broadly with exactly the same customers on the books that play mainly at Betfair)? The reason cannot be to increase the value to the customer and erode their own (already plummeting) margins. It must be that they intend to crush Betfair out of the market altogether, running the exchange as a shop window for more profitable products available under the Ladbrokes banner. If they out-price Betfair initially in terms of lower commission rates/no premium charge, and manage to provide liquidity in size in a broader range of markets (which must be the aim if they are to succeed) and do so on a platform that is 100 per cent reliable to the user, then they have a real chance of stealing the entire business that Betfair has so readily built up. Where Betdaq has failed, despite the backing of some seriously wealthy people, is that it has not ever matched the liquidity available on its rivals site. With the mighty
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ithout the Treasury recently) and Davies’ comments on the subject will no doubt strengthen its case. However other operators are accepting the Bill as a fait accompli and are working within the system in order to make the legislation actually workable to the benefit of everyone. The last thing the industry wants is there to be consumers driven to unregulated offshore sites for a better deal. It’s up to the Treasury to make sure the locally licensed firms can still be competitive. Of course from the industry’s point of view there is also the constant frustration caused by the DCMS to totally absolve the Treasury of any responsibility for the potential future failure of this legislation. While the new minister for sport Helen Grant may repeat the mantra that ‘taxation is a matter for the Treasury’, provided no doubt by the DCMS officials who mistakenly believe this gives them a get out of jail free card, taxation is also a matter for
the DCMS when it so interwoven to the very legislation it is trying to pass. To suggest otherwise is a derogation of responsibility. The DCMS shouldn’t be simpering like a lovestruck loon, grateful to just be given the slightest bit of attention when the Treasury casually looks its way. It should be bold and forthright and tell the Treasury the level of taxation that is needed in order to make the legislation feasible otherwise everyone is wasting their time and money. Any higher and the law fails and the fingers of blame would be very firmly pointed at the Chancellor. The taxation level is crucial to the success or otherwise of this bill and the future protection of the UK consumer. In this case the Gambling (Licensing and Advertising) Bill should be a jointly sponsored piece of legislation between the DCMS and the Treasury. But who wants to align their department to such a contentious issue as gambling?
backing of Ladbrokes marketing team, plus the financial clout of a big corporation, this really could change. However, one senses the well-being of punters is not the actual long term aim of this new venture, so any ‘value’ for the astute player is likely to be short lived. It will be fascinating to see how Ladbrokes deal with ‘winning customers’ on the exchange, not people who have previously darkened their door for long in the past. But have Ladbrokes now joined a ship that, if not sinking, has already long since sailed out of the harbour? Certainly, Betfair seems to have reached a point where their growth has dried up. The racing markets have largely withered in the morning, and the lucrative in-running racing betting has steadily declined as people have become aware that their ‘live’ pictures are up to seven seconds behind reality. Football still continues to flourish, but firms such as Victor Chandler are already taking on the ‘Betfair margins’ by betting to record low percentages on the Premiership and there is little doubt that the fixed odds firms have made it much harder for any exchange to dominate in the way they used to even a few years ago. The industry has never been more competitive, with smaller fish such as Blue Square falling by the wayside as profitability
becomes impossible (without a large retail estate of arcades). All firms now need to find new markets and territories where punters are not as astute or margin conscious and this is a challenge the new Ladbrokes exchange has to tackle if it is to compete and thrive over time. All competition has to be good news for punters, and the new Ladbrokes exchange is certainly an exciting development in that regard. There is the clear possibility of a price war over commission and also the ‘seeding’ of markets could well offer some terrific value to the astute. Longer term there is surely another agenda, and that is to seize back control of prices in the industry. The sharp minds at the top of the industry recognise the present model, where the entire bookmaking profession is driven by the ‘Betfair price’, is an unprofitable strategy in the long term. Therefore they see the setting up of a new exchange, (with a big customer base and the potential worldwide for many more given the Ladbrokes brand), as a means of seizing control once again of the pricing mechanism. In five or ten years’ time, Ladbrokes aim must be to be the only exchange with full control over margins and profitability again. Punters have a short period to make hay while the sun shines.
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“Above all there is gambling, the cheapest of all luxuries.”
Comment
English journalist and author George Orwell (1903-1950)
A new peer in the P2P betting world
FOBTS HAVE CONTINUED TO BE CONTROVERSIAL DESPITE THE GOVERNMENT DECIDE TO KEEP THE STAKE LEVELS UNCHANGED
In his series of articles highlighting best practice among betting firms, retired business consultant Ric Ingram wonders what effect the Ladbrokes Exchange will have on the market leader. y the time you read this article, the Ladbrokes betting exchange may have been launched. Should the likes of Betfair, Smarkets, Matchbook etcetera be concerned for their earnings over the next 12 months? For Betfair the answer is perhaps no, because historically dominant auction companies can be almost immune to new competition. However the potential exists for Ladbrokes to offer a competitive commission rate and much higher capacity than Betfair offered even in its heyday. Ladbrokes’ existing lay-only culture internally, its dominant and powerful price-setters and an understandable requirement to protect existing business streams, may get in the way of any exchange success. Also the Ladbrokes exchange may have difficulty in converting high offered capacity into significant matched trading volumes as many punters are notoriously loyal and many may not be that price sensitive. Time will tell. Can Betfair fight back? It has been accused of arrogance in several blogs. Perhaps complacency born of a help desk with a cost-centre mindset is nearer the mark. This is probably what the Betfair management expect of their help desk. In this context it is understandable that new profitable and cost-saving ideas which cross the desk of the customer services team have been rarely turned into action over the last ten years. The Betfair customer service style is very affable, and they are always willing to say they do not know but will find out for you. The Betfair help desk is outstanding in assisting customers of all levels of expertise despite a period of rapid growth in customer numbers and an increase in the range of products and services offered by Betfair. This is an amazing
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Government provides some class assistance Anna Mathias, barrister with Joelson Wilson’s Licensing & Gambling Team, explains how the government has relaxed some of the restrictions on where betting shops are sited. t seems an age since the Betting Shops Bill, which proposed local authority caps on planning permission for betting shops, failed to complete its passage through Parliament. The likes of David Lammy and Mary Portas have since argued (to no avail) that betting shops be placed in a planning use category of their own - known as sui generis - so that a planning application would be required to change use from any other establishment, even one in Class A2, financial and professional services, to a betting shop. This year, Labour stepped into the fray, promising to create a new ‘umbrella class’ use class planning category into which councils could place any shops, such as payday lenders or betting shops, that they consider undesirable. In many ways, the debate has come full circle, yet the position relating to obtaining the necessary consents and permissions to open a betting shop has, if anything, been relaxed. It seems that you can hardly open a newspaper or put on the news nowadays without coming across some coverage of the perceived national scandal of the proliferation of betting shops and the seemingly pernicious influence of the FOBT. The recent spate of
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articles in the Guardian’s social section - pointing the finger at FOBTs and their use in money laundering and at betting shops and their association with crime and under-age gambling - are a case in point. So, betting shops and FOBTs remain very much in the news. Councils such as Lewisham, Lambeth, Haringey and Hackney have all played the populist card by exploring ways of limiting the number of betting shops in their area. The City of Liverpool has gone one step further - in the first week of November it formally resolved to request the government either to ban FOBTs altogether, or to enable councils locally to place a cap on stakes and prizes and numbers of shops. However, as the London Borough of Newham’s recent outing to court has shown, it is currently not possible for councils to refuse licences to betting shops either on the basis of demand or in reliance upon any concept of ‘primary gambling activity’. What is more, not only can A2 uses such as banks, building societies or estate agents still be converted to betting shops without the need for planning permission, changes to planning legislation which came into force in the summer have actually made it easier to transform existing high street premises into betting shops. From 30 May 2013, premises
40 BettingBusinessInteractive • DECEMBER 2013
in classes A1 (shops), A3 (restaurants), A4 (bars), A5 (takeaways), B1 (offices), D1 (non-residential institutions such as clinics, crèches and training centres) and D2 (assembly and leisure venues such as cinemas, music and concert halls) can convert to any A2 use, including that of a betting shop, for a single period of up to two years, without the need for planning permission. The government has justified this measure as one designed to ‘cut red tape to make it easier to get redundant buildings in our town centres back into productive use and help increase footfall on high streets’. This relaxation only applies to sites with a maximum area of 150 m2 and there is a requirement to notify the council when the use commences. The use will revert to the previous lawful use at the end of the two year period, and councils are still able - theoretically, at least - to use the cumbersome, socalled Article 4 direction procedure to prevent uses outside class A2 premises becoming betting shops. Despite all the frothing at the mouth at local government level, some of which has been fuelled by misleading statistics on FOBTs at a local level, this government’s relaxation of planning laws has made life easier for the industry, in certain cases.
management achievement. For new ideas to be turned into cost-savings and new streams of profit, Betfair customer services needs to change to a profit-centre mindset. Only then will high return and low risk/low cost ideas be championed over strong internal blocks to change. And, paradoxically, it is this past failure that gives Betfair a chance to fight back against any new competition. Currently Betfair customer services insist on passing opportunities for change up the line to the department that generated the problem or failed to deliver optimal business opportunities in the first place. As ‘Turkeys do not vote for Christmas’, this means that the all too common attitudes of originating departments provide a great deal of resistance to external suggestions and the all too common attitudes of affable help desk personnel, who often are unable to distinguish between assertive and aggressive behaviour. As a result of a cost-centre mindset, there are many ideas generated from direct dialogue with customers that have never been fully exploited at Betfair, from suggestions on commission to colour coded indicators of a market’s steamers and drifters. External competition from Ladbrokes may just be the catalyst for Betfair to finally overcome selflimiting behaviours that others may perceive as complacency. When Betfair introduces such customer-pleasing and profit-enhancing ideas, a valuable by-product will be that the cost of entry for any new competitor to the exchange market will be that much greater. Hopefully the competition will spur on Betfair, but whatever happens it will be interesting to discover who has effective control of bet pricing at the end of this decade. HOW WILL BETFAIR RESPOND TO THE NEW CHALLENGE FROM LADBROKES?
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Business
Big boost in profits for Webis
corporate
appointments
An investment in live betting product and American horseracing has helped Webis Holdings to a bumper year.
ongoing strategy for rapid expansion and development. Atkinson has longed worked with betting operators in his previous roles at the Press Association Group and Satellite Information Services (SIS). He commented: “I’m very much looking forward to working with a company that is at the forefront of offering the betting market a new and innovative type of betting solution and one that also ties in social media, which is growing at a phenomenal rate. Social media is an area that bookmakers are constantly looking to utilise to its full potential and I believe the Tailorbet solution is the market leader in this respect.”
REPORT
ebis Holdings, the operator of Isle of Man licensed Betinternet, has reported an impressive 79 per cent increase in gross profit to £5.44m for the 52 week period ended 31 May 2013 from a 48.3 per cent increase in turnover to £168.6m. The performance has seen the company post a total comprehensive profit of £355,000 after three loss making years. Chairman Denham Eke commented: “We have consistently achieved good advances within both of our gaming subsidiaries: WatchandWager.com Limited and betinternet.com (IOM) Limited. This follows our continued enhancement of customer-facing website content and the recruitment of more experienced industry personnel.” The performance and profitability of the betinternet sportsbook improved over the course of the year, particularly in the second half, where turnover and margin levels increased significantly. Investment in live betting products, particularly for tennis, basketball and golf, as well as a number of favourable sports results, has boosted business with the fixedodds margin increasing by 1.03 per cent to 3.75 per cent; ahead of expectations. Eke commented: “For the full year, turnover on our ‘In Play’ content increased to 57 per cent (2012: 43%) of our total fixed odds turnover on single bets, with this percentage reaching over 80 per cent during some individual weeks towards the end of the period. This highlights the importance of the work that our in-house development team have undertaken on our ‘In Play’ product. We remain committed to further investing in this part of our business and have entered into long-term contracts with established data and pricing providers to assist with continued growth in this area.” Casino and games turnover also increased although the margin achieved was lower than expected due to some large
sports betting network and local eGaming Ptheeer-to-peer licensee, Tailorbet has recruited Dominic Atkinson to role of commercial director as part of the company’s
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DOMINIC ATKINSON
ACTION IMAGES / CARL RECINE LIVEPIC
nteractive gaming company NetPlayTV plc has promoted Ijoined Akshay Kumar to the role of group finance director. Kumar the company in 2011 as group financial controller
BETINTERNET’S IN-PLAY TENNIS PRODUCT HAS PROVED POPULAR
ANALYSIS Despite such a positive year, Webis is aware of future challenges, particularly in the shape of proposed regulatory changes within some of the jurisdictions it currently accepts customers. The firm said it will make decisions on a case-by-case basis as to where to operate or seek suitable licences, centred on an opportunity versus cost basis. Denham Eke said: “It is likely that we will see increases in licencing fees and betting taxes in forthcoming years, but the online gaming industry has proved strongly resilient to the multiple challenges that it has encountered since its inception.”
wins. Full-year Live Dealer Casino activity was also impacted following the sudden cessation of services from Betinternet’s Live Casino supplier CWC. Microgaming was quickly appointed in place, although the fall out meant that the live casino offering was offline for a six-week period. Eke added: “We have also increased our Customer Relationship Management (CRM) to help get the best return from our marketing expenditure, aimed particularly at casino and games customers who are more reactive to marketing offers than sports betting customers, who are generally event driven. Our mobile sportsbook has seen growth throughout the year and we plan to focus on enhance-
42 BettingBusinessInteractive • DECEMBER 2013
ments to our mobile offering for all channels in the forthcoming year.” Some of the most exciting developments in the year have come from the company’s WatchandWager business in the US where the firm is not only operating pool betting but also hosting US horseracing at the Cal Expo racetrack in Sacramento, California. Eke said: “Our investment in this activity is extremely important for the furtherance of our United States strategy, especially given the current momentum for state-by-state changes to gaming legislation.” Wa t c h a n d Wa g e r ’s Advanced Deposit Wagering (ADW) licence from the California Horse Racing Board (CHRB) is now operational and allows the firm
to take wagers from, and market to, Californian residents on certain content with the agreement of the Horsemen involved. Webis is hoping that this licence, together with its existing licence to operate harness racing at Cal Expo, will put the group in a better strategic position for any further changes to gaming legislation within the state of California. Eke added: “Our first season of harness racing at Cal Expo finished in May 2013 and it has proven to be an exciting period, with our ‘bricks and mortar’ presence providing us with some strong leverage, and greater recognition, throughout the US industry. This has assisted us in obtaining more racing content for international customers from the Churchill Downs and Monarch simulcast and media controlled racetracks and we are now able to accept wagers at some of the most prestigious race meetings in the US. We have also been granted access to the French PMU and the Swedish ATG betting pools, with the latter proving particularly popular with our client base.”
and has six years’ experience in the gaming industry including time as financial controller at Sporting Index Limited. He is an Associate of the Institute of Chartered Secretaries and Administrators (ACIS) and Institute of Chartered Accountants of England and Wales (ACA). NetPlay CEO Charles Butler said: “Having worked closely with Akshay since 2011 I can attest to him already having had considerable financial and strategic input into the business. I would like to welcome him to the board at this exciting time where we anticipate a period of growth for the company.” oseph Cuschieri has been appointed executive chairJMaltese man of the Lotteries and Gaming Authority (LGA), the online gambling regulator. Cuschieri has vast experience in economic regulation particularly in the electronic communications sector where he spent five years as chief operating officer at the Malta Communications Authority. In his new role at the LGA, Cuschieri will be focusing amongst other things on reforming the Authority to make it more efficient and agile, strengthening the relationships with all stakeholders, strategically grow the on-line gaming sector and promote Malta as a globally respected gaming jurisdiction. JOSEPH CUSCHIERI
oreena Ross has joined software provider OpenBet as D vice president of Human Resources. Ross has a wealth of experience in global Human Resources leadership within the technology and software sectors. She commented: “OpenBet is at the forefront of the industry, and its opportunities for growth and success will greatly help the company attract, recruit and retain key talent globally.” CEO Jeremy Thompson-Hill added: “The strategy of OpenBet is underpinned by a real dedication to equipping our staff to achieve their potential and to recruit the best, and the right, talent. Doreena comes with a wealth of knowledge and experience.” DOREENA ROSS
he board of Ladbrokes has recommended the appointTsubsidiaries ment of PwC as auditor of the Ladbrokes Group and its for the financial year ending 31 December 2014 in place of EY. The decision was taken following a rigorous tender process and recommendation from the Audit Committee. The tender process was initiated in September 2013 as part of an ongoing emphasis on good corporate governance and best practice. Following formal proposals and presentations from a number of firms, PwC was successful in this process. The appointment is subject to shareholder approval at the 2014 Annual General Meeting to be held on 7 May 2014.
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No AIM for MediaCorp Media Corporation, the company behind the failed Purple Lounge online casino and Intabet B2B gaming platform, has had its shares cancelled on AIM following its failure to publish its audited financial accounts for the period ended 30 September 2012. The company is continuing discussions, overseen by John Botros, with an interested party with a view to the injection of a new business.
Good signs for ‘strategically effective’ Betsson SWEDEN
etsson president and CEO Magnus Silfverberg has declared the operator as the ‘most strategically effective company in the industry’ following the third quarter results. Group revenue amounted to SEK603.4m, with gross profits increasing by SEK63.8m to SEK502.5m with the operating margin up to 25.2 per cent from 22.7 per cent. Silfverberg commented: “An organic growth of 14 percent and the highest operating margin amongst comparable companies shows that Betsson is, still, the most strategically effective company in the industry. This applies to both the capacity to acquire companies and to utilise operational opportunities based on among others Betsson’s multibrand strategy. “Betsson sees continued good possibilities, in both the short and long term, for both local and internationally regulated markets. At the same time, the operational subsidiaries are optimising their operations through investments in individual real time communication with customers, digital marketing and world class mobile offerings. All together, this will contribute to our continued growth.” Betsson’s multi-brand strategy allows for brand-specific development in different customer segments while creating
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Greater exposure for SeanieMac DEAL
favourable conditions for acquisitions. Through this strategy an even larger portion of the players’ total activity can be captured as they tend to use several different brands. In an effort to optimise this strategy, Casinoeuro.dk recently changed its name to the newly acquired domain, Casino.dk. The next step is to migrate Danmarksautomaten.dk to the same domain. Casino.dk is considered to have substantial potential in Denmark and the initial effect of the name change has been positive. The Danish market remains stable, with growth in line with Betsson’s overall growth. The firm added: “The high level of growth in the use of Smartphones contributes to a strong demand for mobile gaming solutions. Betsson has developed and provides, today, one of the market’s broadest and most advanced gaming solutions for Smartphones. Mobile revenues comprised, during the third quarter, 12 per cent of all revenues, which is an increase from 9 per cent in the previous quarter. “Furthermore, the mobile share of Sportsbook’s gross revenue amounted to 22 per cent. The strong growth in the third quarter is explained mainly by a strong growth in Betsson.com, as a result of the brand launching a new mobile solution.”
rish bookmaking site SeanieMac is to partner with Donedeal.ie and Attheraces.co.uk, two of the biggest websites in Ireland and the UK. Donedeal.ie has a global Alexa ranking of 5,717 and is ranked the 10th largest website in Ireland. SeanieMac is now the exclusive betting partner of Done Deal beating a host of competitors to what it hopes will prove to be a very lucrative partnership. SeanieMac dynamic banners with special offers will be displayed on the Done Deal website from November 2014. AttheRaces.co.uk, Britain and Ireland’s largest TV channel for horseracing and the number one website for horseracing with millions of unique monthly visitors, will display SeanieMac’s banners as well as adding SeanieMac’s live odds feed to their odds comparison grid. SeanieMac will be featured on ATR from November 2014. Sean McEniff CEO of Seaniemac.com said “[I’m] delighted to welcome Done Deal and ATR as official partners of SeanieMac.com. By partnering with these very successful businesses and leaders in their respected industries we will get SeanieMac in front of millions of potential customers every month and will give our brand great exposure and will add to our already strong customer base. This announcement is further evidence of the growing strength of the SeanieMac brand.”
I
BETSSON PRESIDENT AND CEO MAGNUS SILFVERBERG
ISLE OF MAN. WHERE YOU CAN FIND A WINNING BASE FOR YOUR E-GAMING BUSINESS The Isle of Man is home to many of the world’s leading gaming brands and software developers, which is no surprise when you consider that the Island offers: Ŕ Government support and commitment to the gaming sector Ŕ 100% player protection Ŕ No hidden costs Ŕ Fast licensing process Ŕ Low SBUFT PG duty based on Qrofit Ŕ Low-cost operating base Ŕ World-class resilient IT infrastructure Ŕ $PNQFUJUJWF UBY QBDLBHF Ŕ Skilled staff Ray Davies, e-Gaming Development Manager Tel: + 44 (0)1624 682365 Email: ray.davies@gov.im
www.whereyoucan.im/egaming
BettingBusinessInteractive • DECEMBER 2013 43
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Agenda ACTION IMAGES / JASON O’BRIEN LIVEPIC
LISTINGS MONTHLY BRIEFING
DECEMBER 1–4 The Second Asia Pacific Conference on Gambling & Commercial Gaming Research (APCG2013), Kaohsiung, Taiwan 9-12 40th annual Global Symposium on Racing & Gaming, Westin La Paloma, Tucson 11 Responsible Gambling Trust Conference, King’s Fund, London 11 Pentasia Anti-Money Laundering Course, Malta 25 Christmas Day
Ante Post: What the bookies say Christmas is coming, but the sporting calendar isn’t one for slowing down. In fact, it’s a boom time for many high profile events. he Christmas period is always an extremely busy time for us a t Freebets.com. The festive sporting programme is absolutely packed and, as ever, we’ll be bringing customers the best bookmaker offers and promotions. The Premier League is the main focus on the football front. We’ve seen in recent months nearly all bookmakers are ramping up the scale of their moneyback offers in what is turning into an increasingly competitive niche. Boxing Day has almost become a byword for football with seemingly everyone but the players getting time off to enjoy the left-
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over turkey! We’ll be bringing Premier League legend Matt Le Tissier’s exclusive views and tips throughout the holidays. I love my racing and the Boxing Day meeting at Kempton looks set to be a cracker with the likes of two-time champion Long Run and impressive Betfair Chase winner Cue Card set to line up in the feature, the King George. And don’t forget the PDC World Darts at Lakeside, forever popular with punters and fans alike. I wonder which bookies will be out to get 16-time champion Phil Taylor. DAVID ARCHER Owner Freebets.com
The Ashes mean a very busy month for our staff, with a team working 24 hours a day to manage the live markets for this ever popular betting event. It appears to be all up for grabs, and December will give us the perfect run up to the final test in January where new heroes will emerge. The growth in interest in cricket betting has been very interesting to observe from a LBO and online point of view. Early December will also see the balls drawn out of the pot for the 2014 World Cup in Brazil. England on the back of indifferent home form are priced at 22/1 with us, but a good draw despite being unseeded could see a flow
of money for Roy’s boys. We obviously make Brazil home favourites, but punters have seen some early value on France at 25/1 and Portugal at 33/1. MICHAEL CORBETT Managing director Corbett Sports
Weather permitting this period will provide National Hunt fans with plenty to get stuck into. The peerless Sprinter Sacre will be long odds-on to continue his winning run in Sandown’s Tingle Creek Chase, a week later sees the Champion Hurdle contenders go on trial in the International Hurdle at Cheltenham, DAVE STEVENS while Christmas dinner will Head of PR be put on hold for those Coral Racing
My Diary: Dinesh Choudree Co-founder and CEO of technology provider Genii, Dinesh Choudree, reveals what December has in store for him. hings are really stacking up in the diary and it’s going to be an extremely busy time for myself and the Genii team as a whole over the next month. I’m based in Durban, South Africa, but unfortunately I’m not going to have much time to enjoy the lovely weather we have at the moment. Firstly, I’m flying out to Malta to meet with the chairman of the Lotteries and Gaming Association, while I’ll also be finalising Genii’s licence submission. I also have a number of other
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meetings out there so it will be a fairly hectic few days as we really kick Genii into action. Genii is a gaming technology provider focused on building the next generation online gaming platform. Our offering and approach is vastly different from the other casino suppliers in the market and we will be meeting with a number of UK and European operators over the next few months. Meetings really are the theme across the whole of December. Mobile is an increasingly important
44 BettingBusinessInteractive • DECEMBER 2013
avenue for any online gaming operator now and I’m catching up with some carrier billing people later in the month to see how we can get even more of an edge on mobile. It’s then over to Oxford for some sessions with our development team. We are constantly rolling out new products and are also in the early stages of assisting an operator roll out a ‘mobile first’ casino. In between, I’ll be linking up with our agents to look at potential client targets and I’m also meeting with a pos-
jockeys riding in the King George and Coral Welsh National. And if the weather does turn against the turf racing, ARC’s fantastic All Weather Championship series will hopefully keep the show on the road. Elsewhere, sports fans have the contrasting joys of an Ashes series Down Under and the PDC World Championship darts at Ally Pally to get them through the dark nights, and finally, we have those traditional festive flutters on a White Christmas and Christmas number one to look forward to. Merry Christmas and a happy and prosperous 2014 everyone!
sible non-executive director. I’ll then be sitting down with our payments partner as we set out our long-term strategy and meeting up with our PR team in London to discuss our plan of attack for 2014. ICE is going to be massive for us this year and we’ve already arranged some really interesting meetings over the three days. Before that I’m giving myself a few days off before Christmas to spend with the family and I’ll be glued to the box when South Africa play India in the traditional Boxing Day Test.
JANUARY 21-23 EAG International, ExCeL London 23-24 Mobile Games Forum (MGF), Dexter House, London, 23-24 Social Gambling Workshop, Dexter House, London, 23-24 Social Games & Virtual Goods Forum
DEXTER HOUSE SEES SOME ACTION IN JANUARY
2013 FEBRUARY 3 7th International Gaming Awards (IGA), Savoy Hotel 3 The 6th International Casino Conference, ExCeL 4-6 ICE 2014, ExCeL London 4 World Regulatory Briefing, ExCeL 4 CRM, Loyalty & Retention Conference, ExCeL 4 Mobile Gaming, ExCeL 4 SBC’s London Baby, Hippodrome Casino 5 Cybercrime, Security & Regulatory Compliance in Gaming, ExCeL 5 Monetising Social Gaming, ExCeL 5 Game Design & Development, ExCeL 5 Next Generation Lotteries, ExCeL 5 Fire & Ice by Lyceum Media, Troxy 7-10 The London Affiliate Conference (LAC) 2014, Earls Court Exhibition Centre MARCH 4-6 iGaming Asia Congress 2014, Macao 19-21 iGaming North America 2014, Planet Hollywood Resort & Casino, Las Vegas
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Successful summit KPMG’s director responsible for eGaming Russell Kelly has praised the success of this year’s Isle of Man eGaming Summit, despite the late move after a fire at the original venue. Kelly said: “It simply would not have been possible without the support of our sponsors, speakers, delegates, the Isle of Man Government and, as was especially apparent this year, the Island’s business community as a whole.”
Racing Post gets ready for ICE The Racing Post is preparing itself for Febuary’s ‘showcase for gaming and betting innovation’ at the ExCeL centre. he Racing Post will once again be taking a prominent position at ICE Totally Gaming, with Richard Thorp, Racing Post’s head of B2B operations describing it as ‘the one event the Racing Post has to be at’. The high profile position will feature the Racing Post Café which will once again be the main hub at which the betting industry gathers to consider ideas and new concepts over a coffee. Located in the central area of the betting hall, Racing Post staff will be on hand to discuss the paper, the web, tablet and mobile platforms as well as its complete B2B offering. Looking ahead to February’s showpiece event at London ExCeL, a stone’s throw from the Racing Post offices in Canary Wharf, Thorp added: “It (ICE) is the showcase for gaming and betting innovation and the place operators and suppliers attend to discuss and understand current
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and future technology. Racing Post will be demonstrating new products aimed at the LBO, online and mobile operators built off the back of our unrivalled racing database. “By simply attending ICE every year it has helped the Racing Post understand how to adapt our product set to keep pace with industry change, and also to look at options that otherwise would not have been scrutinised. “ICE offers priceless information and motivation. Our advice to visitors is to give yourself as much time as possible, pre-plan your meetings, avoid rushing and enjoy being inspired at what is the world’s largest and most influential gaming event!” Meanwhile, the organiser of ICE Totally Gaming has unveiled the creative at the heart of the marketing campaign promoting February’s event, which, for the second year, will be held at London’s ExCeL Exhibition Centre. ICE
THE NEW TOTALLY GAMING ICE CREATIVE
Sensational, a truly experiential campaign aimed at delivering ICE messages across all the senses, will appear throughout international gaming media, as well as an extensive print and digital direct marketing campaign using the ICE cleansed database of international gaming professionals based in 120+ countries and innovative social media promotions. Kate Chambers, portfolio director responsible for ICE Totally Gaming, said: “2013 was a huge year for ICE which took residence at its new home at ExCeL,
London’s award winning and largest exhibition space. The 2013 campaign succeeded in helping to attract a total of 22,247 unique attendees, a 4.3 per cent increase on 2012, 8.6 per cent up on 2011 and a massive 24.1 per cent uplift on 2010. Further analysis of the attendance data show that the number of visitor days (the average amount of time visitors spent at the event) increased from 1.51 days (2012) to 1.81 (2013) taking the total number of visitor days spent at February’s event to 40,267.
“2013 was a ‘sensational’ edition of ICE, and the commitment we are making to our stakeholders is to build on that success with a far reaching and truly ‘sensational’ multi-media campaign which connects with the 100+ nationalities who we welcome to London each year. Our message for all of our stakeholders is, if you think 2013 was big - think bigger in 2014.” ICE TOTALLY GAMING 4-6 February 2014 ExCeL London
Research shows betting more attractive than alcohol A study by Loughborough and Staffordshire Universities suggests that gambling as a leisure pursuit has overtaken the national pastime of drinking.
lmost one in four people would rather place a bet than go to the pub, according to a new study on sports gambling from Loughborough and Staffordshire Universities. Dr Jamie Cleland (Loughborough University) and Professor Ellis Cashmore (Staffordshire University) surveyed 2,500 people online between June and August 2013 to understand individuals’ motivations for gambling. Their findings paint a picture of gamblers as
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rational decision makers who understand the odds and the technicalities of betting, rather than addicts unable to control their compulsions. Eight out of 10 people surveyed describe themselves as ‘people who like a bet’, rather than the 16 per cent who think of themselves as gamblers. The majority of bettors (60 per cent) wager just 2 per cent or less of their net income. 71 per cent of respondents regarded their gambling as recreational, and
motives were split across the thrill of anticipation (34 per cent), the thrill of winning (27.5 per cent), and to make money (27.5 per cent). Dr Cleland, a lecturer in Loughborough University’s Department of Social Sciences, said: “This study challenges the myth of the gambling addict promoted by the medical profession, and identifies sports gamblers as rational decision makers. “70 per cent of the gamblers surveyed believe they
have lost money over the last 12 months, suggesting a rationality rarely attributed to the group; they gamble in the knowledge they are likely to lose money, but they do so in the exchange for the gratification it provides. They’re not driven by compulsions or forces beyond their control, but by the same motives as someone who pays for a cinema ticket or a monthly television subscription.” The study also showed online sports gambling has now overtaken gambling in
the bookmakers on popularity, with 48 per cent of gamblers betting in private compared to 40 per cent who use the bookies. Of those surveyed, 17 per cent place at least one bet per day, 19 per cent bet three times per week, and 20 per cent gamble on sports once or twice per week. The researchers expect sports gambling to further increase in light of the economic upturn. Cashmore added: “News of an economic recovery, however modest, will buoy bettors who will gamble with more abandon as the nation moves further from a period of austerity. While pubs are closing on an almost daily basis, betting shops are on the increase, which is tied to the fact almost a quarter of gamblers surveyed prefer placing a bet to a pint at the pub.” The researchers are hoping to attract funding for the next stage of the project that looks more in-depth at gambling today.
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Analysis
2020 vi betting hilst our 20p pools are not going to immediately leap into the Top 10 list of monthly pools by pool size, they are a nice entry point for some of the novice players we quickly found that we were recruiting, via social media in particular, after our August launch. Many of these are football fans first and punters second – some of them have never previously placed a bet online. We decided that to maximise the player lifetime of at least some of these new recruits, the cost of betting should be as cheap (and the process as simple) as we could reasonably make it. In other words, whilst the standard £2 per line stake on our pools might work for existing punters, a lower pricing point might be appropriate for some of our pools. Some pools operators allow fractional staking. In
ACTION IMAGES / JED LEICESTER
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TOP TEN UK HORSERACE POOLS
TOP TEN RETAIL BETTING (UK) EVENTS 1 2 3 4 5 6 7 8 9 10
Horseracing – Champion Stakes, Ascot Horseracing – Prix De L’Arc De Triomphe, Longchamp International Football – England v Poland, World Cup Qualifier Horseracing – Betfred Cesarewitch, Newmarket International Football – England v Montenegro, World Cup Qualifier Rugby League – Warrington Wolves v Wigan Warriors, Grand Final Rugby League – Australia v England, Rugby League World Cup Horseracing – Racing Post Trophy, Doncaster Domestic Football – Chelsea v Man City, Premier League Golf – CIMB Classic, Kuala Lumpur
Chart supplied by: Betfred. Data for October
1 2 3 4 5 6 7 8 9 10
Chart supplied by: Totepool. Data for October
TOP TEN FINANCIAL SPREAD MARKETS 1 2 3 4 5 6 7 8 9 10
Wall Street, Daily UK 100, Daily Germany 30, Daily Spot, EUR/USD Spot, GBP/USD Gold, Daily Dec Spot, USD/JPY UK 100, Dec Spot, AUD/USD Gold, Dec
1 2 3 4 5 6 7 8 9 10
(1) Paddy Power (2) Bet365 (3) William Hill (4) Betfair (5) Betfred (6) Winner (8) Stan James (7) Ladbrokes (9) Betway (10) BetVictor
Chart supplied by: Freebets.com. Data for October
International Cricket – Pakistan v South Africa 2nd Test International Football – England v Poland International Cricket – Pakistan v South Africa 1st Test International Football – England v Montenegro Domestic Football – C Palace v Fulham Domestic Football – Aston Villa v Tottenham International Cricket – India v Australia 3rd ODI Domestic Football – Sunderland v Man Utd International Cricket – India v Australia 2nd ODI Domestic Football – West Brom v Arsenal
Chart supplied by: Spreadex. Calculated on volume of bets. Data for October
TOP TEN BOOKMAKERS FOR MONEYBACK OFFERS 1 2 3 4 5 6 7 8 9 10
Chart supplied by: Spreadex. Calculated on volume of bets. Data for October
Ascot – Champion Stakes Ascot – Queen Elizabeth II Stakes Doncaster –Racing Post Trophy Newmarket – Rockfel Stakes Chepstow – Persian War Novices Hurdle Newmarket – Middle Park Stakes Kempton Park – Maiden Stakes Wolverhampton – Nursery Handicap Kempton Park – BCFTN Handicap Ayr – Coral Sprint Trophy
TOP TEN SPORTS SPREAD MARKETS
TOP TEN MONEYBACK OFFERS 1 2 3 4 5 6 7 8 9 10
Bet365 – Greyhounds: Sky dogs 2/1 Betway – Football: Messi v Ronaldo if one player scores more than the other Paddy Power – Football: Money Back if Celtic score first Paddy Power – Rugby: Money Back if last conversion missed Paddy Power – Football: Money Back if Neymar scores last Paddy Power – Football: Money Back if Gerrard scores Paddy Power – Football: Money Back if Robinho scores last Paddy Power – Football: Money Back if Palacio scores last Paddy Power – Football: Money Back if Ozil scores Boylesports – Darts: Cashback if Michael van Gerwen wins World Grand Prix
Chart supplied by: Freebets.com . Data for October
THE £10,000,000 COLOSSUS
ALL OTHER BETS ARE LOWER LEAGUE 46 BettingBusinessInteractive • DECEMBER 2013
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TOP TEN ONLINE SPORTSBOOK PERFORMANCE
SPONSORED BY COLOSSUSBETS
RESPONSE TIME (SECS)
0 vision opens pool ng to new customers
1 2 3 4 5 6 7 8 9 10
(1) Bet365 – 0.72 (3) BetVictor – 1.24 (2) Boylesports – 1.45 (6) Jenningsbet – 1.46 (4) Totesport – 1.60 (5) Betfair Sports – 1.62 (7) Ladbrokes – 1.92 (8) Sporting Index – 2.61 (-) Sky Bet – 2.81 (-) Betfred – 2.90
Chart supplied by: Gomez. Data for October
David O’Reilly, chief operating officer at Colossus Bets, talks about the firm’s new 20p pools and how the idea that a life changing win could be yours for the cost of what amounts to some loose change. other words, although the unit stake in a pool might be £1 or £2, the player can buy a line in the pool which is a fraction of this unit stake. For example, the UK Tote’s Placepot bet allows players to buy 10p lines, providing the minimum total spend per ticket is £1. We decided that whilst fractional staking addressed the ‘affordability’ point we were considering, the concept of the right to a ‘fraction’ of the winning dividend and the requirement for a minimum total ticket spend which is different to the minimum spend per line, didn’t address our ‘simplicity’ point. Thus our 20p pools, where players can play a single 20p line, were born. We have found that plenty of players
throughout. The top prize for our 20p pools is currently a guaranteed £200,000 minimum for 1 GBR – Colossus Bets – The £10,000,000 Colossus – E11,951,700 a correct score Pick 6 pool, 2 SWE – V75 – Halmstad – E8,760,053 but we are looking at intro3 ESP – La Quinella – E6,902,778 ducing a 20p pool with a £1m 4 USA – Breeders Cup Pick 5 – E4,706,588 guaranteed prize. We know 5 SWE/RUS – Stryktipset/Soccer13 – E4,012,783 that online slots allow 6 GBR – Classic Pools – E3,585,510 players to shoot for huge 7 AUS – VIC TAB Melbourne Cup Quaddie - E3,252,108 prizes with very small stakes. We think the sports 8 GBR – Colossus Bets – Premier League Pick6 – E2,390,340 bettor, who wants to back 9 SWE – V86 – Solvalla – E2,271,416 his opinion on a game of 10 GBR – Bodugi Big Game – E1,195,170 skill which can play out over Chart supplied by: Colossus Bets Calculated by biggest pools/guarantees a weekend, should also over a week’s period during the month. One entry per bet type. Data for 1/11 – 27/11 have a shot at the same lifechanging dream, and our are happy to play a single pools as an opportunity play experience to date suggests line for 20p – in many cases multiple lines in a total ticket that player retention dipping a toe in the water of spend of £10 or more, amongst a customer our product suite and increasing their chance of segment which is new to making their initial deposit surviving far into the pool online betting, has been with us last as long as possi- and experiencing our frac- improved by the introducble. Other players see 20p tional cash-in opportunities tion of our low cost pools.
TOP TEN GLOBAL POOLS
TOP TEN ONLINE BETTING MARKETS 1 2 3 4 5 6 7 8 9 10
International Football – England v Poland International Football – England v Montengro Domestic Football – Chelsea v Man City Horseracing – Cesarewitch Horseracing – Arc de Triomphe Spanish Football – Barcelona v Real Madrid Domestic Football – Aston Villa v Tottenham Domestic Football – Sunderland v Newcastle European Football – Arsenal v Dortmund Domestic Football – Sunderland v Man Utd
Chart supplied by: BetVictor. Data for October
1 2 3 4 5 6 7 8 9 10
Chart supplied by: Gomez. Data for October
Bet on our easy-to-play weekly pick 7 football game.
ITV - EURO 2012 ENG V UKR (14.8m) ITV - EURO 2012 FRA V ENG (11.2m) ITV - EURO 2012 ENG V UKR POST MATCH (8.8m) ITV - EURO 2012 SPA V FRA (8.2m) ITV - EURO 2012 POR V NED (7.7m) ITV - EURO 2012 GER V GRE (7.6m) CH4 - PARALYMPICS 2012: OPENING CEREMONY (7.3m) TV - EURO 2012 IRL V CRO (7.2m) ITV - EURO 2012 SPA V IRE (7.1m) ITV - CHAMPIONS LEAGUE Chelsea v Barcelona (6.9m)
Chart calculated by: www.Hitwise.com. Ranked by visits. Data for September
TOP TEN BINGO SITES 1 2 3 4 5 6 7 8 9 10
(1) tombola (2) Jackpotjoy (3) Gala Bingo (4) Mecca Bingo (5) Sun Bingo (7) Costa Bingo (6) Foxybingo.com (8) Wink Bingo (9) Paddy Power Bingo (-) RobinHood Bingo
Chart calculated by: www.Hitwise.com. Ranked by visits. Data for September
TOP TEN CASINO SITES 1 2 3 4 5 6 7 8 9 10
TOP TEN ONLINE CASINO PERFORMANCE
(1) 888Casino (4) Sky Vegas (5) William Hill Vegas (3) 32Red Casino (7) All Slots Casino (6) Ladbrokes.com Casino (8) Bet365 Casino (-) 32Red touch (9) Supercasino (10) Paddy Power Casino
TOP TEN POKER SITES
RESPONSE TIME (SECS)
1 2 3 4 5 6 7 8 9 10
(1) Bet365 (2) Betfair (3) William Hill (5) Ladbrokes (4) Betfred (6) Paddy Power (8) At the Races (7) Sky Bet (9) Oddschecker (10) Coral
Chart calculated by: www.Hitwise.com. Ranked by visits. Data for September
Chart supplied by: Ofcom
RESPONSE TIME (SECS)
(2) 888 – 0.52 (1) Jenningsbet Poker – 0.59 (4) PokerStars – 1.121 (3) Bet365 – 1.21 (6) Bet Victor Poker – 1.36 (-) Partypoker – 1.51 (5) Paddy Power – 1.74 (-) William Hill – 1.83 (-) Betclic – 1.93 (-) Betfred – 1.94
1 2 3 4 5 6 7 8 9 10
TOP TEN MOST WATCHED SPORT ON TV IN 2012
TOP TEN ONLINE POKER PERFORMANCE 1 2 3 4 5 6 7 8 9 10
TOP TEN SPORTSBETTING SITES
(1) Jenningsbet Casino – 1.11 (2) 888Casino – 1.26 (5) 32Red – 1.62 (4) Totesport– 1.67 (3) Bet365 – 1.72 (7) Betfred Casino – 1.89 (6) William Hill – 1.89 (9) BetVictor – 2.21 (8) PartyGaming – 2.38 (-) Sky Vegas – 2.78
Chart supplied by: Gomez. Data for October
Cash-In profits in full
1 2 3 4 5 6 7 8 9 10
(1) Sky Poker (3) Pokerstars.com (2) 888Poker (4) Global Poker Index (6) Poker Tube (7) Bet365 Poker (8) PKR (10) Paddy Power Poker (-) PocketFives.com (9) SharkScope
Chart supplied by: www.Hitwise.com. Ranked by visits. Data for September
Win your share of the pool
or in part as matches progress. by holding your nerve to the end.
Start playing at colossusbets.com www.colossusbets.com @ColossusBets
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BettingBusinessInteractive • DECEMBER 2013 47
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