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SPONSORSHIP: Getting the Betway brand in front of avid sports fans

TECHNO TECHNO TECHNO: The latest developments in the betting office environment

REPORTAGE: ESSA says that EU policy on sports betting could soon become clearer

BETTING NEWS 12

ESSENTIAL GUIDE 20

COMMENT 37

£5.20 (€8.30) • ISSUE:115 • APRIL 2014 • www.betting-business.co.uk

ACTION IMAGES / PAUL CHILDS

Rather than consult the industry, the Treasury has just decided to raise taxes on LBO gaming machines without warning.

New industry group to focus on responsible gambling SOCIAL RESPONSIBILITY

n a move that further demonstrates the importance of social responsibility to the UK gambling trade, the five main trade associations, ABB, BACTA, Bingo Association, National Casino Forum and Remote Gambling Association, have established the Industry Group For Responsible Gambling (IGRG). The new body formalises existing relationships on responsible gambling initiatives and provides a structure to better promote socially responsible gambling in the British gambling market. The IGRG’s first piece of work will be to undertake a stock-take exercise of responsible gambling initiatives. Various companies, industry groups and associations have been pro-active in this area and that work will be reviewed. This project will highlight what good practice could be shared across sectors and will inform any future decisions about work that the associations might undertake collaboratively through IGRG. Precedence will also be given to overseeing the review of the Gambling Industry Code for Socially Responsible Advertising following a request to do so from Maria Miller MP, the Secretary of State for Culture, Media & Sport. RGA chief executive Clive Hawkswood commented: “The trade associations have been working together constructively for some time, especially on consumer protection issues, and the establishment of IGRG is a natural evolution of that.” ABB chief executive Dirk Vennix said: “When we launched our new Code for Responsible Gambling and Player Protection in October 2013 we wanted to make a difference to customers who are at risk of problem gambling and we are confident we will. We hope this group will build on the learnings from the ABB’s Code and form a hub for ground-breaking cross-sector initiatives in the future.”

I GEORGE OSBORNE PUTS HIS BEST LISTENING FACE ON

Tax whammy for gaming machines TAXATION

he betting industry has been blindsided by Chancellor George Osborne’s decision to put up taxes on B2 gaming machines from 20 to 25 per cent in a move that will likely cost the industry £75m. Considering the industry had been fighting a rear-guard action over problem gambling on the machines, this sudden and unexpected tax hike, comes just 12 months after the introduction of MGD saw most tax bills increase despite a promise for a ‘fiscally neutral’ transition from AMLD. The Association of British Bookmakers was quick to condemn the change: “The impact of the new Machine Games Duty (MGD) which came into effect last year and cost the industry an extra £50m, already casts a shadow over

15,000 jobs and 3,000 betting shops across the country. Increasing the rate to 25 per cent, so soon after it was first introduced, makes a bad policy much worse. This could cost the industry an extra £75m. Thirty per cent of our shops, and many are small family run businesses, make less than £300 in profit a week. This knee jerk and ill-considered tax raid means their futures are now on the line.” The ABB pointed out that the increase in MGD on B2 machines, does absolutely nothing to address the concerns over problem gambling, and there is an argument to suggest that making the machines less profitable will see the resources available to prevent problem gambling diminish. The ABB added: “The licensed bookmaking industry is the only sector in the UK that

pays more in tax than it generates in profits. The government’s desire to continue to soak the industry undermines our ability to continue to support horse and greyhound racing. It will cost jobs and reduce the investment we can make in the research, education and training that’s needed to tackle problem gambling.” The budget saw the share price of William Hill and Ladbrokes take a severe nosedive. Ladbrokes corporate affairs director Ciaran O’Brien commented: “We will be pressing for an urgent review of a tax that seems to be based on the commercial success of a product not on any strategy or basic taxation principles of equity between competing sectors. “The pips are squeaking bookmaking is an overtaxed industry already and this increase adds £75m to the tax

bill of £1bn already paid by the industry.” Barney Horn, indirect tax partner in the Deloitte betting and gaming group, has said that the Treasury has made gambling taxation more complicated than ever despite a trend for simplification. He explained: “Overall, while there has been much talk of simplifying taxes, the position has become increasingly complex with rates for seemingly similar gambling experiences being taxed at different rates. As an example, once the changes have gone through, duty on roulette will be charged at 15 per cent if played online, 25 per cent if played on a FOBT and between 15 and 50 per cent if played in a casino depending on the gaming turnover of the casino.” GEORGEBET Comment 36

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ACTION IMAGES / ANDREW COULDRIDGE LIVEPIC

News

13 FAVOURITES WON IN ONE WEEKEND IN MARC

Bwin.party aims to build on annus horribilis

Consumption ta market share o

Bwin.party’s decision to focus on regulated and taxed markets has seen the firm suffer a big drop in revenues for 2013. REGULATION

win.party CEO Norbert Teufelberger has agreed with the description of 2013 being an ‘annus horribilis’, as the operator experienced a 19 per cent drop in revenues and a 25 per cent drop in EBITDA to 108m euro (£89.3m). “Well, looking at the numbers, it obviously seems to be that way,” Teufelberger said. “But it was also a year where we very proactively addressed a lot of the legacy issues of the merger. We proactively got out of 18 markets, so we stopped acquisition of new customers in those markets, and that’s obviously reflected in our numbers this year.” Teufelberger believes that Bwin.party also made a lot of progress during the year: “We are simplifying our business model. We have now much more focus on nationally regulated and nationally taxed markets. We have started to increase our presence in mobile and touch. Our growth rate is comparable now to the competitors’, actually a bit better, and we have successfully launched into New Jersey, which is obviously still only one state in the United States. It’s still business development in the works, but we’ve had a good start there. “So we actually built the foundation in this transition year for the next years. So whilst the numbers are not looking great, I’m quite confident that we will have a good future.” The operator’s switch from ‘volume to value’ markets now means that 56 per cent of group income is now derived from nationally regulated and/or taxed markets. Teufelberger explained: “We are deemphasising the dot-com business. So what we are doing currently is putting much more focus on the nationally regulated and taxed markets. You see that reflected in the numbers already. We expect by the end of 2015 to generate about 75 per cent of our

revenue from nationally regulated and taxed markets. We deemphasised 18 markets at the beginning of 2013 so obviously that’s reflected in our numbers, but this was a conscious decision we made together with our management team and we are following through on that.” The company justifies this strategy by pointing out that the shift towards regulation means that the previous ‘dotcom’ model of one product (sports, poker, casino & games or bingo), one channel (worldwide web) and one domain (dotcom), is no longer sustainable. With governments seeking to raise additional taxes, the transition to fragmented, nationally regulated digital gaming markets is described as ‘inevitable’, along with the increasing demands of the modern digital consumer. Bwin.party said that its strategy has been set to maximise the long-term potential of our business model in this fast changing and complex environment. Following the regulated markets took Bwin.party back to the US, where it became one of the bigger

BettingBusinessInteractive • APRIL 2014

gaming networks when the market opened at the end of 2013. Teufelberger said that competitors are now fighting to make up the ground: “There was big doubt whether we would even launch in New Jersey. There was doubt whether we as a company or a management are licensable. So we have obtained that license, we have launched into New Jersey. And what New Jersey has shown is that both our brand PartyPoker and especially the product proposition we have in place is very much cutting edge. We have captured more market share than we thought we would, and we have captured it on the basis of a very sustainable, reasonable approach. “Some of our competitors currently are running very, very aggressive sales promotions. We don’t think those are sustainable. If our market share dips a bit, a per cent or two in a month, we aren’t really worried about it. But retaining leading market share is our goal, and let’s not forget, New Jersey is just the first state where this is really happening now.”

William Hill is evaluating the UK market and how the new point of consumption tax could provide it with a ‘once in a lifetime opportunity’. NORBERT TEUFELBERGER: ‘PROACTIVELY ADDRESSED A LOT OF THE LEGACY ISSUES’

TAXATION

illiam Hill boss Ralph Topping has described the Point of Consumption Tax as a ‘big opportunity’ for his firm to increase its market share in the UK. With companies jostling for position as the new regulations are set to be implemented in December, William Hill is looking to offset some of the potential £75m cost of the new taxation with cost cutting of its own. Topping told investors: “The work of the last five years to expand our product range, improve our user experience, innovate with our mobile offering

and invest substantial sums in the williamhill.com brand have made us a formidable online competitor. That positions us very well ahead of the expected introduction of the Point of Consumption tax from December 2014. This has the potential to radically change the shape of the UK online gambling market and we are confident William Hill can, over time, take more market share as a result. In addition, we aim to mitigate some of the impact in 2015 by achieving £15-20m of cost savings against what we would otherwise have expected to spend in that year.”

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Football favourites cost industry £20m Just two months after bookmakers were taken to the cleaners after a spate of favourites won their matches, they have been hit for six again in the penultimate weekend in March which saw 13 winning favourites in the English and Scottish Premier Leagues. It is estimated the results will cost bookmakers another £20m. A man staked £5.20 on a 15-team accumulator at Ladbrokes in Barking, east London, with odds of around 17,000/1, and picked up £86,000 in winnings.

n tax provides e opportunity

RGA launches selfexclusion scheme with its members SOCIAL RESPONSIBILITY

he Remote Gambling Association (RGA), GamCare and the Gordon Moody Association has launched a project to provide assistance to people who may have a problem gambling and want to self-exclude from online gambling websites. The initiative, which was conceived at a meeting of the RGA’s social responsibility committee, will enable counsellors at GamCare and Gordon Moody to help their clients to self-exclude themselves simultaneously from the sites of all those RGA members that they have accounts with. For those most in need of assistance this will streamline the process and further improve the effectiveness of selfexclusion as a harm minimisation measure. Ruth Champion, director of therapy at the Gordon Moody Association, said: “Self-exclusion can be so problematic for people living within the chaos of a gambling addiction as it involves immersing themselves in the very thing they are trying to come away from in order to do it. To have all this information in one place that is easily accessible, will potentially be so valuable and is a great start to creating an effective preventative measure for people who find themselves in need of help.” Dirk Hansen, chief executive at GamCare, said: “GamCare welcomes and supports this initiative from the RGA and its members. This coordinated effort will aid the process for those who are seeking to use self-exclusion as a useful tool to address their gambling problem.” RGA CEO Clive Hawkswood commented: “This is an example of how the remote gambling industry takes very seriously its responsibilities to people who experience problems with their gambling. As part of a wider range of harm minimisation measures, self-exclusion plays an important role in the treatment and prevention of problem gambling. We will continue to seek new ways to improve its accessibility and effectiveness.” He also suggested that a totally effec-

WILLIAM HILL IS BETTING ON INCREASING ITS MARKET SHARE

Topping pointed out that there is still a long way to go until the new licensing measures are brought in and that it might take years for the market to settle back down. “At this point in time, I have no way of predicting how our competitors are going to react,” he said. “I’ve no way of knowing what our competitors are going to do at any point in time. What’s worse, I don’t think they know what they’re going to do at any point in time. So we have our view. We also have to be ready, and we’ve also got to be flexible. We don’t expect everything to change overnight. It could

take a year or two to shake out the weaker operators. So we’re going to invest and we’ll focus on costs. We’ve never been profligate in this business, but this is perhaps a time to take some tough decisions.” Topping said the firm’s success is built on the back of mix, product user experience and marketing, and promised to invest in all three, going forward. “We want to keep investing, because this is actually a once in a lifetime opportunity, when others are going to find it hard to invest.” Topping has also set a target for the company’s international business to

be contributing at least 35 to 40 per cent of revenues by the end of 2017/beginning of 2018, up from the 15 per cent today. He commented: “Now I truly recognise diversifying internationally isn’t easy. We’ve got to be careful, but we are doing it well. We’ve invested in building in a management team who are more than capable of managing internationally diverse businesses. We’ve also got an operating infrastructure that can allow us to support our international businesses effectively. For instance, by way of example, we’ve started the transfer of certain Aus-

tralian back office functions to a lower cost operation centre in Manila. And we’re structuring our technology solutions so they can be reused in different jurisdictions.” Topping anticipates a lot of this growth to come from the USA and Australian businesses, although he said that there are ‘some interesting opportunities’ in Europe as well. Given the huge taxation increase in the core UK market over a period of 12 months, it is perhaps a sensible aim to diversify and not have the bottom line affected by the whims of whoever is residing in 11 Downing Street.

tive cross-industry self-exclusion system would have to be overseen by a third party. “For individual remote operators, self-exclusion works well and is clearly one of the more effective harm minimisation measures. The challenge is that customers can then go and open an account somewhere else and carry on as if nothing had happened. It is extremely difficult to know how frequently this happens in reality, but it is an accusation that is thrown at the industry. We have collectively sought to improve measures whenever we can, but this is not a challenge that the industry can address alone and our position remains that a national self-exclusion system can only work properly if administered by a statutory authority such as a gambling regulator.”

DIRK HANSEN: ‘GAMCARE WELCOMES AND SUPPORTS THIS INITIATIVE’

ANALYSIS William Hill’s US business has already seen a turnaround in profitability in its first full year of operating. The bookmaker views the US as a ‘very exciting - if longer term - opportunity’ given New Jersey’s ongoing challenge to the federal ban on land-based sports betting and the moves to licence online gaming in a number of states. Ralph Topping commented that while the firm did not go into New Jersey because the economics didn’t stack up, he added: “In the meantime, we’re 100 per cent behind Governor Christie; not many people are at the moment. He’s challenged the federal sports betting ban. Because if that ever changes, there’s no-one better placed than William Hill in land-based sports betting in the US, given our presence in Nevada and Delaware.” BettingBusinessInteractive • APRIL 2014

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iGaming Online gaming ban law has Adelson fingerprints

Despite record results, 32Red has experienced a puzzling drop in share price after a disastrous budget for landbased bookmakers.

REGULATION

32Red catching a cold from other gambling stocks FINANCES

sharp fall in online gaming o p e r a t o r 32Red’s share price has prompted the firm to point out to investors that it has no exposure to the gaming machine market which is dragging down other listing gambling firms following the increase in Machine Games Duty. Given the operator has recently reported another year of record revenues, 32Red has suggested that it has suffered because other gambling firms have also seen their shares drop, but that was as a result of the UK Budget imposing greater taxes on retail betting rather than any sector that 32Red is involved in. In a trading update, the firm said: “The company can confirm that trading in recent weeks has strengthened further with Gross Gaming Revenues up 19 per cent in the first 24 days in March against the corresponding period, taking the cumulative year-to-date increase to 8 per cent as at 24 March 2014.

bill that would ban all online gaming in the US has been introduced by South Carolina Republican Senator Lindsey Graham and Representative Jason Chaffetz, a Republican from Utah. The ‘Restoration of America’s Wire Act’ would restore the long-standing interpretation of the Wire Act and reverses the Department of Justice’s December 2011 decision to expand online gaming. Chaffetz said: “The DOJ opened the door for massive change in policy without significant public input. These fundamental changes need to go through Congress. By restoring the original interpretation of the Wire Act, we are putting the genie back in the bottle and allowing for an open debate to take place.” South Carolina Governor Nikki Haley added: “Allowing internet gaming to invade the homes of every American family, and to be piped into our dens, living rooms, workplaces, and even our kids’ bedrooms and dorm rooms, is a major decision. We must carefully examine the short and long-term social and economic consequences before internet gambling spreads.” It is widely thought that Sheldon Adelson’s patronage of the Republican Party has helped see this bill introduced. The Las Vegas Sands chairman and chief executive is campaigning against online gaming and just happens to be one of the Republican Party’s biggest

“The UK government’s proposed introduction of a Point of Consumption Tax from the end of 2014 was again referenced in the Budget supplementary papers on Wednesday 19 March, although nothing new of substance was announced. The company continues to work with the Gibraltar Betting and Gaming Association to ensure that the industry concerns are voiced and understood by the UK government and other stakeholders. The new announcements in the Budget regarding increased Fixed Odds Betting Terminal duties and levy collection do not impact the company. The Board remains confident in the prospects for the business and in meeting its financial expectations for the year.” Earlier last month 32Red reported a fourth consecutive year of record revenues - up 21 per cent to £35.6m and underlying EBITDA up 46 per cent to £5.0m. Profit before tax was up 12 per cent to £2.3m. Chief executive officer Ed Ware said: “This is our

fourth consecutive year of delivering double digit growth in both sales and EBITDA underpinned by a step-up in marketing investment and our continued focus on providing a second to none customer service. With the momentum continuing into 2014 and our greater focus on driving returns from our increasing marketing spend I am confident in making further progress in the year ahead.” The number of active 32Red casino players was up 24 per cent to 71,266, although the casino player gross gaming yield was down slightly at £485, as was the number of new 32Red casino players down to 38,033 from 41,918. Mobile revenues were up 136 per cent on 2012, representing 21 per cent of total casino revenues - more than double the figure from the year before. Gross Gaming Revenue generated from 32Red.it totalled £1.3m in 2013 (2012: £0.0m) with the business from Italy continuing to grow steadily with revenues of £0.8m in the second half of the year, up

84 per cent on the first half of 2013 as customer awareness continues to grow. A deal to become the official casino partner of Italian Serie A football team Bologna FC saw both on and off-line co-branding activities, stadium branding and the launch of an affiliate programme to market the 32Red casino to Bologna fans via the club’s website. Ware explained: “We have supported the Bologna sponsorship with traditional online and offline marketing and are encouraged by new customer cost per acquisition rates which remain in line with those experienced by the underlying business in the UK. As expected, the yield per active player is significantly less than the more established underlying business, but is expected to grow naturally as the market in Italy develops and new products are approved by the Italian regulator. We also hope to see a benefit from unregulated operators withdrawing from the market during the year.”

ANALYSIS With things progressing in Italy now, 32Red is understandably excited about 2014 and said that it looks forward to building on the momentum and successful results experienced over the last four years. It recognises that there are regulatory challenges as well as opportunities this year but anticipates another strong year of growth in the core 32Red casino, supported by increased contributions from Italy, betting and other products. The firm said: “We remain committed to our strategy to increase investment in regulated markets, both in terms of marketing and personnel, to ensure that an unrivalled level of player support and service is maintained.”

JASON CHAFFETZ: ‘DOJ OPENED THE DOOR FOR MASSIVE CHANGE IN POLICY’

www.ingg.com

BettingBusinessInteractive • APRIL 2014

sales@ingg.com

contributors. With a new Election on the horizon, there are many politicians willing to listen to Adelson to receive his backing. Democrats have already opposed the bill, claiming it would have a ‘severe and disastrous impact on state government’ in a letter from the Democratic Governors Association. It added that it would cost state lotteries $20bn in revenue. New Jersey Senator Robert Menendez said: “Blanket prohibition of internet gaming will empower black market operators at the expense of responsible states like New Jersey which have invested in creating a secure internet gaming structure. This bill would have the perverse effect of putting millions of American poker players at risk while doing nothing to prevent minors from playing online, combat fraud or crack down on other illegal activities. Simply put, blanket prohibition of internet gaming is a futile attempt to apply an antiquated approach to a 21st century issue.” Caesars Entertainment’s Jan Jones commented: “It is unfortunate, when an industry undermines itself. This fight is tarnishing the entire industry. You just raise a whole spectre of negativity that I think is unfortunate and inappropriate, after we have spent the last three decades with a message that gaming is just entertainment enjoyed by responsible adults.”

AVAILABLE ON

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SEC looks at Bitcoin exchanges

iGaming

The US Securities and Exchange Commission is conducting a formal inquiry into the buyout of SatoshiDice.com, a Bitcoin operation which itself was bought out using Bitcoins from online exchange MPEx. The SEC is apparently ‘very focused’ on whether Bitcoin-denominated stock exchanges are illegal but MPEx owner Mircea Popescu was unrepentant as he said Bitcoin doesn’t fall under the legal definition of money. He added: “Somebody wants to propose I broke a law, they’re to come up with the law I broke.”

Grosvenor is trying a new approach to get its online customers into its casinos, and its casino customers logging on to its website.

THE NEW GROSVENOR PLAY POINTS PROMOTION

POKER

MARKETING

he demand for offline poker appears to show no quelling as the UK Gambling Commission has been moved to target illegal poker clubs across the country in a campaign on tackling unlawful gambling. In the latest round, three members’ clubs have been forced to stop providing poker as a result of investigations by local authorities with support from the Gambling Commission. An enlightening study in Nevada found that online poker actually drives interest in offline poker, belying the land-based casino industry’s previous opposition to online gaming, and a continuous level in demand by UK citizens to play poker face to face would suggest a similar trend given the lack of a poker playing tradition in the country. However, the demand currently appears to be running contrary to the current laws. The Fifth Street Card Club in Borehamwood had its Club Gaming Permit withdrawn as the club was unable to demonstrate it was being run in ‘good faith’ in accordance with the Licensing Act 2003, and the Royal Surrey Social Club in Morden, Surrey has stopped their poker activities after local council officials discovered poker was being played illegally in exceeding prescribed limits. A new application for the Palms of Enfield club was rejected by the local council on a number of grounds including concerns about illegal poker, but may be subject to an appeal. It brings the number of clubs to ten that have been forced to either close down or stop playing poker since Hackney Council rejected an appeal in July 2012 by the International Private Members Club against the removal of a club gaming permit and club premises certificate from a premises offering poker in Hackney. In other areas licensing authorities are starting to refuse gaming permits due to concerns that applicants were suspected of intending to run illegal poker clubs. Nick Tofiluk, the Commission’s director of regulatory operations, commented: “These ten cases show local authorities have the means and the determination to tackle concerns about illegal poker in whatever guise it is presented. “We are committed to working closely in support of local authorities in dealing with such matters. LAs now have considerable experience in this field and we will continue to promote good practice while dealing effectively with illegal poker clubs. The message is simple - if you offer poker in a club which falls outside the rules for exempt gaming, or offer commercial poker you are breaking the law.” Under the Gambling Act 2005, commercial highstakes poker is restricted to licensed casinos. Whilst poker can be played in members’ clubs, there are various restrictions depending on whether there is a club gaming permit in place, as well as conditions on participation fees and stake and prize limits. Further, the main purpose of the club cannot be gambling.

Grosvenor hopes loyalty plan will bridge gap between channels rosvenor Casinos has become the first casino operator to offer a multichannel rewards scheme following the launch of its popular Play Points programme across its online and mobile platforms. The announcement comes as the company continues to develop its multi-channel offering; giving yet another reason for customers to play with Grosvenor Casinos. James Dixon, head of customer relationship management at Grosvenor Casinos, commented: “There is already a very concerted plan of communications and incentives to drive awareness and engagement of our online products. We are of course very keen that customers who visit our casinos experience the thrill of gaming with Grosvenor Casinos wherever they want, this now gives our customers tangible rewards for making the choice to play online with us.” As a result of the extension of its Play Points scheme, Grosvenor Casino customers will now have one pot of points, regardless of where

Is online poker’s popularity driving illegal poker clubs?

they are earned, that can then be used on online and mobile platforms, as well as in the 33 participating casinos. Points are earned on the amount staked, so if a customer plays with £10 and wagers it 10 times, they’ll receive points on £100, not the original £10. Dixon explained: “Play Points and the launch to multichannel rewards is a vital part of building Grosvenor Casinos as a multi-channel brand. This is a major milestone for not only the business, but for the gaming industry as a whole as no other casino operator currently offers this. We always strive to be at the forefront of technological advances and as an industry first, this really showcases our commitment to providing a gaming experience for our customers that’s second to none, regardless of whether they choose to play online, on mobile or in one of the participating casinos.” The Play Points programme is currently available in 32 Grosvenor Casinos across the UK where customers can collect points every time they play, dine and drink in one of the participating casinos. They can then use their Play Points

BettingBusinessInteractive • APRIL 2014

towards extra gaming, part pay for food and drink or apply the points to one of 500 new gifts in Grosvenor Casino’ gift catalogue. The expansion to multichannel will be supported with a launch campaign which will include various POS elements in clubs and online. Dixon said that the project to integrate Play Points across all channels had been running for over 12 months before launch, with the main challenges being the integration of very complex data systems and records running in real time. He added: “Points can be earned online and on mobile or in any of the 32 casinos running Play Points. Points can be redeemed for gaming online or in one of the Play Points casinos for food and drink as well as gaming. We expect customers from the retail casinos to trial the online element of our business, using their Play Points to fund this trial. This is a change from the way Play Points are currently redeemed. We also hope and expect the same level of trial from customers that have only experienced the brand in the digital world.”

ANALYSIS The cross promotion between land-based and online operations makes sense in order to not only develop brand loyalty, but to raise awareness of the different gaming channels available to existing customers. Online casino users may have never stepped foot inside a real casino and viceversa so providing an incentive to at least try it out could prove to be a winner. Also given that parent group Rank has only recently bought casinos from erstwhile competitor Gala Group, then it is a good way to drive traffic at these new premises onto Grosvenor’s own online operations.

Don’t gamble with age verification When it comes to age verification, the stakes have never been higher for online gaming companies. Tough legislation means failure to prevent under 18s from registering can lead to heavy fines, loss of trade and irreparable brand damage. Thankfully, Callcredit Age Verification enables online gaming companies to check identity and date of birth quickly and accurately. So you can keep out age cheats and stay on the right side of the law.

To find out more www.callcredit.co.uk/products-and-services/fraud-and-verification/age-verification@callcredit gaming@callcreditgroup.com 0113 388 4300 www.callcredit.co.uk/gaming directsales@callcreditgroup

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Slots heading for Spain?

iGaming

It appears the Spanish government is getting ready to permit online gaming operators to offer slots and betting exchanges, as well as potentially opening up the market to new licensees. Draft laws have been leaked to the media which suggests that the regulator would be happy to see quite an extensive range of slot options, including progressive jackpots, autoplay and other advanced gameplay features.

888 celebrating ‘exceptionally rewarding’ year

BRIAN MATTINGLEY: ‘UNDOUBTEDLY APPETITE FOR FURTHER REGULATION ACROSS THE US’

Record revenues and a successful launch of its software in the US have marked a very successful 2013 for 888 Holdings. CASINO

88 CEO Brian Mattingley has hailed 2013 as a ‘very busy but also exceptionally rewarding year’ for the online gaming operator, as he announced record-breaking revenues and increased profitability. Revenue for the year increased 7 per cent to US$401m (£242m), with profit before tax up 30 per cent to $53m (£32m). At the end of 2013, 888 had 15.5m casino, poker and sport real money registered customer accounts, representing an increase of 19 per cent. Mattingley commented: “We delivered excellent progress in our core markets and built on momentum in Spain where we have quickly developed a market-leading position. Casino delivered another strong performance and we made further market share gains in Poker, advancing to number two in the PokerScout global rankings at the year end. We have also significantly strengthened our offering in sport, which is delivering positive results. All of this was achieved whilst devoting significant energy and resources on preparing

888 for our successful launch in the regulated US market.” He added: “I am delighted with 888’s achievements in 2013. We have started 2014 well, with average daily revenue up more than 8 per cent in the year to date, and look forward to the year ahead with continued confidence.” 888 Casino continued its growth in 2013, with record revenues of $190.4m (£114.8m) and a 2 per cent increase in active players. The firm said that the main drivers were the launch of its mobile platform; the offering of slot machines in Italy, and improving its efficiency of acquisition. The poker business also continued to grow, with record revenues of $93.6m (£56.4m) and a 21 per cent increase in active players compared to last year, reflecting further market share gains. Despite the poker market as a whole contracting, 888 was able to increase player numbers due to improvements made to its poker product, enhancing the effectiveness of our marketing and our strategic focus on obtaining high levels of liquidity.

Bingo B2C revenues declined by 16 per cent as a result of a highly competitive and mature market in the UK. However, following a strategic review the operator has seen encouraging recovery signs during the final quarter of 2013 with a 7 per cent revenue increase compared to the third quarter of 2013. Mattingley has a very firm plan for this year: “As we entered 2014 our US operations, although still in their very early stages, were starting to build momentum and we are focused on refining and developing our current business as well as working with our partners to explore new opportunities in regulated states. There is undoubtedly appetite for further regulation across the US with a number of states in advanced talks and throughout the course of the year we will be monitoring these potential markets closely for opportunities for 888. We firmly believe that through our strategy, growing experience and the investment we are making in the US market for the long term, we are best placed to take advantage as these opportunities come to bear.”

ANALYSIS Brian Mattingley sees some exciting areas for development across 888’s core business in 2014 now that the operator can re-direct a significant portion of its energies to further developing its core products and markets after a year’s focus on launching in the US. Mattingley believes that the growth in mobile has yet to slow down: “The surge in mobile gaming has proved to be an important growth engine during 2013. Whilst we have made good progress in developing our touch platforms to date, this market is still in its infancy and will offer much more to learn and leverage as it develops.”

GameAccount Network WSOP.com announces partnership signs with Net Entertainment Rangers deal

BettingBusinessInteractive • APRIL 2014

tinuing to grow our position in the regulated Italian gaming market.” Björn Krantz, chief of GMO and MD at Net Entertainment Malta Ltd, added: “Net Entertainment has been present in the Italian market since regulation began and today we are a major supplier of online, PC, and mobile casino games to many of the most reputable local Italian operators. We are delighted to partner with GameAccount Network, a partnership that will enable us to offer our best in class games portfolio to multiple local operators using one single platform interface. Italy is one of Net Entertainment’s core markets and we are positive that our portfolio offering will be well received by GameAccount Network and its major partners. The integration process with GameAccount Network will start immediately and the go live process with individual operators will take place gradually as a phased roll out approach.”

USA

he New York Rangers has become the latest US sporting organisation to associate itself with a gambling brand, with a deal that goes against the grain of US sports’ general antigambling stance. The ice hockey team has announced a new marketing partnership which sees Caesars Interactive Entertainment’s WSOP.com brand the exclusive online gaming partner of the Rangers. The deal follows the recent partnerships signed by Partypoker with the Philadelphia 76ers and the New Jersey Devils. A key element of the partnership is the ‘WSOP.com Rangers Homecoming Sweepstakes’, which offers fans the chance to have a Rangers alumnus visit their home to watch the last

GALA AIMS AT SWEDEN

Gala Interactive has entered the Scandinavian market with the soft launch of Gala.se, a Swedishfacing operation designed to take advantage of the country’s predicted opening of 2017. Operated from the company’s Gibraltar head office, Gala.se is catering for Swedish casino players with fully translated online inventory and native customer services. The Swedish government has been forced to relax its online regulations after being told by the European Commission that its monopoly could not be justified under the European Treaty, although the country has asked for extra time to fine tune its laws. Until then the door has been left slightly ajar for the likes of Gala to compete with the monopoly operator Svenska Spel for the first time. MOBILE INVESTMENT PAYING OFF

Paddy Power has attributed an 18 per cent growth in online gaming customers to its on-going investment in mobile. Mobile net revenue increased by 143 per cent in constant currency last year, with 42 per cent of eGaming customers transacting with the firm via mobile in February, generating an industryleading 35 per cent of total online gaming revenue. The firm’s in-house Bulgarianbased development team provided 70 of the 200 games released across desktop, mobile and tablet with revenue per new game higher than third party suppliers, driving their contribution to 20 per cent of total Games revenue by December. SOLE OWNERSHIP BRINGING FLEXIBILITY

ITALY

heGameAccount Network, a leading developer and supplier of enterprise-level Business to Business gaming software, has announced a partnership with Net Entertainment, which will strengthen its position in the regulated Italian market. As part of the partnership agreement, GameAccount Network will offer Net Entertainment’s best in class PC and mobile content to well-known and established operators such as Sisal, Snai and Eurobet. Dermot Smurfit, CEO at GameAccount Network PLC, commented: “We are delighted to be able to add Net Entertainment games to our extensive network of customers in the regulated Italian market. GameAccount Network prides itself on offering content from the world’s best games developers for our operator partners. This partnership with Net Entertainment strengthens our offering and we look forward to con-

iGAMINGBRIEFS

regular season game. In addition, special offers, co-branded communication and engaging viewing parties will be developed for Rangers fans who reside in the Garden State. Game experiences like pregame penalty box access, plus tickets on the new Chase Bridges at Maddison Square Gardens (MSG) are all part of the partnership and will be offered to fans as part of several unique and exciting online promotions at WSOP.com. New Jersey recently became the third state in the country to offer legal, licensed and regulated online casino games. Both visitors and residents of New Jersey are eligible to play within its borders, as long as they are of legal age - 21 - and pass responsible gaming screenings.

William Hill believes that the £424m it paid for Playtech’s 29 per cent shareholding in its online business has provided it will the ability to better capitalise on a number of international growth opportunities. The company said that having removed the cap on capital expenditure, it was able to increase investment in online driving an increase the rate of innovation in mobile gaming and implement developments that were previously de-prioritised. It added: “We are also able to share our capabilities more widely around the Group, such as bringing our insight in user experience and online marketing to support the development of William Hill Australia.”

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BB115-p10-14-Betting_09/10 03/04/2014 12:05 Page 1

Betting

An ‘unprecedented number’ of complaints has led the ASA to take the ‘unusual step’ of telling Paddy Power to pull a recent controversial advertising campaign. MARKETING

addy Power has once again been hauled over the coals for a near the knuckle marketing campaign. The UK’s Advertising Standards Authority (ASA) has ordered the bookmaker to withdraw a national press ad with immediate effect on the back of an unprecedented number of complaints. The advert promoted a novelty market on the outcome of the Oscar Pistorius trial, who is currently undergoing a murder trial in South Africa following the death of his girlfriend Reeva Steenkamp. Following a speedy investigation the advert was deemed ‘likely to cause serious or widespread offence’ and that it brought ‘advertising into disrepute’.

The ASA also warned Paddy Power to ensure its future ads did not fail in this way again. ASA chairman Lord Smith took the unusual step of directing the advertiser to withdraw the ad from circulation prior to investigation because there was concern that the ad may be seriously prejudicial to the general public on the ground of the likely further serious and/or widespread offence it may cause. It added: “We are also concerned that the good reputation of the advertising industry may be further damaged by continued publication of this ad.” The bookmaker defended itself, saying that while its marketing might push the boundaries on occasion, they did not intend to offend. Paddy Power said it is not unlawful to take bets on the

ANALYSIS It’s not the first time that Paddy Power has been admonished by the ASA, but it is the first time that it has managed to cause outrage across social media so quickly from one single press advertisement. In a way, the advert could be viewed as a major success for the bookmaker’s close to the knuckle marketing strategy, but the content of the promotion does appear to have been an error of judgement. This is especially true when bookmakers are short of sympathy in the media at the moment and at a time when a bill specifically tackling gambling advertising was passing through Parliament.

ACTION IMAGES / STEVEN PASTON LIVEPIC

Paddy Power warned on future adverts

a double amputee did not go so far as to cause serious or widespread offence but instead was a play on words. The ASA disagreed. It said: “We considered that by making reference to a high profile murder trial, the ad would be interpreted by readers as being inextricably related to the sensitive issues surrounding the trial, and to be making an implied reference to the person who had died. The CAP Code stated that references to anyone who was dead must be handled with particular care… We therefore considered the ad went further than simply being in poor taste and that it was likely to cause serious or widespread offence by trivialising the sensitive issues surrounding the murder trial.” While the ASA acknowledged that the ad made no visual reference to Pistorius’ disability and that the phrase “IF HE WALKS” could be related to the outcome of a criminal trial, it considered that readers would also see it as a clear reference to Pistorius’s disability. It added: “We again considered the ad went PADDY POWER’S OSCAR PISTORIUS further than simply being in MARKET HAS CAUSED OUTRAGE poor taste and we were concerned that using the pun ‘IF HE WALKS’ made light outcome of a legal trial and accepted that there was a of disability. The CAP Code that offering odds on the double meaning to its stated that particular care trial of Oscar Pistorius tagline “IF HE WALKS”, must be taken to avoid merely reflected the high such references were fre- causing offence on the level of international public quently used in association grounds of disability and interest in the story, as did with court cases and argued we considered that the ad the number of complaints. that the subtle reference to was likely to cause serious While the bookmaker the fact Oscar Pistorius was or widespread offence.”

Watchandwager.com gets access to HKJC pools POOL BETTING

S-based ADW operator WatchandWager.com has signed an agreement with the Hong Kong Jockey Club Horse Race Betting Limited to provide access to the HKJC pari-mutuel pools. Headquartered in San Francisco, California, WatchandWager conducts US licensed advanced deposit pool wagering and racetrack operations. WatchandWager.com is part of Webis Holdings plc, which also owns the Isle of Man-based Betinternet.com. The HKJC agreement is of particular significance as no other wagering operator in the world is currently

HKJC OPERATES THE HAPPY VALLEY RACECOURSE (© MINGHONG)

able to wager internationally into these betting pools. Connecting into the Hong Kong Jockey Club pools started for a select group of WatchandWager customers last month. WatchandWager accesses the Hong Kong betting pools via Typhoon Hub Ltd, the first tote company to integrate into the Hong Kong Jockey Club pools this season. Both parties have the option to renew the agreement for the racing Season 2014/15. Internationally, the HKJC offers the highest quality of racing and racing integrity and also provides significant pool liquidity across all its bet types. As a result, WatchandWager expects the positive impact on its handle

and gross margin to be substantial, especially should the agreement continue into a second season of racing in Hong Kong. Ed Comins, president of WatchandWager.com, said: “We are honoured to partner with an organisation as prestigious as the HKJC. The integrity of their international product and the huge pool liquidity are sure to be attractive to our players, especially with our high volume operators. As with many of our recent content license agreements that we have signed, it was our licensed online and racetrack operations in the US, and our contributions back into racing both in the US and worldwide, which won us this important contract.”

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10 BettingBusinessInteractive • APRIL 2014

BB115-p10-14-Betting_09/10 03/04/2014 12:08 Page 2

Desert foxes

Betting MARC ETCHES

Bob Dutnall, executive director at Betway, explains his company’s approach to sports sponsorship after recent deals with Matchroom Sport.

A team of 21 volunteers, half of them from bookmaking groups, have trekked 100km aqcross the Sahara desert to raise £45,000 for the Responsible Gambling Trust. Chief executive Marc Etches said: “The money we raise will help to build civil society’s knowledge of the harm caused by problem gambling and put in place the education and treatment services that minimise that harm.”

BETWAY IS SPONSORING THE FROCH V GROVES REMATCH

NORTHERN IRELAND

ne of the few areas in the British Isles where betting shops are retaining their value is in Northern Island, thanks to province’s own gambling laws being separate from the mainland’s 2005 Gambling Act. Because of this, the number of betting shops in Northern Ireland is more or less preserved in amber, making bookmakers very careful of protecting what market share they have and using all mechanisms at their disposal. This month saw a Belfast High Court judge rejecting all aspects of an appeal from Ladbrokes against a decision of the NI Planning Service to grant planning permission for the extension of two local independent bookmaker outlets in the city. Sean Graham’s and Toal’s bookmakers were granted planning approval to extend their outlets in Castle Street and High Street respectively. Ladbrokes’ parent company in NI, North West Bookmakers Ltd, appealed that decision last year. At that time the legal representative acting for Grahams said the appeal by Ladbrokes was not based on environmental concerns but was the act of a ‘disgruntled competitor.’ Judge Treacy rejected Ladbrokes’ arguments and last month published his written determination. The judgement states that the Planning Service had ‘formed a perfectly lawful and rational view about whether the developments will preserve or enhance the character of the area. The grant of permission is in accordance with applicable planning policies and the application (by Ladbrokes) is dismissed.’ Sean Graham’s general manager Chris Deery welcomed the decision: “It is our view, supported now by the legal judgement, that the appeal by Ladbrokes amounted to an attempt to disrupt our expansion plans. They were effectively using the legal system as a commercial tool.” The planning system and the Magistrates’ Courts were frequently used tools to delay the opening of new betting shops in Britain before the passing of the Gambling Act removed the demands test. It was not unusual for betting shops to take two years to open, meaning prospective bookmakers needed deep pockets for any new application.

O “Putting our brand in front of avid sports fans”

MARKETING

etway has just moved into sports sponsorship in the UK with darts and boxing - any other sports on the horizon? We will always look at opportunities, if they are presented to us in an exciting and creative way. These two major sporting event sponsorships are key parts of our strategic plan to develop and maintain a leading position for our sportsbook. As an online company, we are always looking to step into the live-event arena and experience the thrill, energy and excitement that goes with it. The Froch versus Groves rematch on 31 May is undoubtedly one of the biggest fights in British boxing history that has stirred the interest of sports fans around the world. With an estimated 65,000 fans expected to witness these two iconic fighters settle their rivalry live at ‘the Venue of Legends’ Wembley Stadium, this fight is expected to smash

Court throws out Ladbrokes’ independent complaints

UK boxing attendance records, with millions more watching via Sky Sports Box Office in the UK, and on television broadcast worldwide. It has a rivalry, strength, and focus that has not only captured the attention of avid boxing fans, but has stirred the interest of sports fans around the world. Anything is possible, and for us, it’s the thrill of the unexpected that will drive the excitement of this bout. This sponsorship is another step in our developing commitment to supporting world class sporting action and reinforces our position as one of the preeminent brands in online sports betting. We are delighted to be working alongside Matchroom Sport to help showcase this fantastic event. Darts is growing in popularity both in the UK and also abroad and this year will be the biggest ever Betway Premier League Darts season, with the best 10 players in the

Given that Betway is operating in several different European markets, is it not worthwhile partnering with a high profile international sporting organisation or is the ROI better for local events? We always take into consideration international elements. Both the boxing and the darts are televised internationally in some of our target markets. Media is global, and the UK plays host to a huge number of internationally admired sports so we don’t view our sponsorHow do you choose which ship in terms of domestic and sporting events to be associ- international, just in terms of ated with? what will fit in with our sports We see a lot of pitches, and are strategy and our client base. open to new ideas. We will sponsor events that we believe How difficult is it to be seen in will put our brand in front of a crowded market such as our potential customers - avid the UK? sports fans. Live events are It is certainly a crowded particularly worthwhile, given market, but with the right the broad international cover- blend of sponsorship, adverage they receive, but it is really tising and PR that appeals to up to the organisation making your target customers, you the pitch to convince us of the can undoubtedly develop a stand-out-value of their pro- strong profile in a short period of time. posal in a crowded market. world taking part. Both these sponsorships are steps forward in our developing commitment to supporting world class sporting action and reinforce our position as one of the pre-eminent brands in online sports betting. When other compelling opportunities arise, which enable us to raise the awareness of Betway among sports fans, who share our passion for great sporting action, we will certainly consider them.

SBOBET strengthens its Albion ties with donation CHARITY

sle of Man licensed bookmaker SBOBET has shown its charitable side with a donation to a football related charity. The Albion Foundation, affialited to Premier League club West Bromwich Albion, was delighted to receive a very generous donation from SBOBET for the organisation’s “Walk the Albion

SBOBET HAS DONATED £1,000 TO THE ALBION FOUNDATION

12 BettingBusinessInteractive • APRIL 2014

Way” challenge. The donation refers to the challenge that the Foundation’s blind football team undertook at the start of February, which saw them take on the task of walking from Anfield, Liverpool to the Hawthorns, West Bromwich; a journey spanning 86 miles over five days. Chairman of SBOBET Mr Wong presented the

cheque to Foundation director Rob Lake before the game against Manchester United, and said: “It is a special privilege to learn of the fantastic work by the Albion Foundation in the community. SBOBET as a company believes very much in engaging with and supporting the communities in which we operate across the world. “There can be no better

example of support in the community than the work carried out by the Albion Foundation in enabling young people from all parts of the society to fulfil their full potential. I fully endorse their motto of ‘Inspire to Achieve’. As a football club, I am sure you are very proud of the Albion Foundation and I would like to present a cheque for £1,000 towards its valuable work.”

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BB115-p10-14-Betting_09/10 03/04/2014 12:09 Page 3

Trial set for May

Betting BIRMINGHAM CROWN COURT

The match fixing trial for three former Conference South footballers and two other men will begin on 19 May. Michael Boateng, Hakeem Adelakun and Moses Swaibu all appeared at Birmingham Crown Court to plead not guilty to one count of bribery and another of plotting to commit bribery. Their alleged accomplices, Krishna Ganeshan and Chann Sankaran of Singapore, also entered not guilty pleas to three counts of bribery and one of conspiracy to commit bribery.

Call for machine code to become compulsory

BETTINGBRIEFS SPORTSBOOK IMPORTANT TO 888 CUSTOMERS

The government likes the ABB’s code on player protection so much it wants it written into the regulations. MACHINES

he new player protection measures on LBO gaming machines had not even been launched properly before the government was insisting that they are tightened up and enshrined in the regulations. Culture secretary Maria Miller was very bullish about the code, insisting it be adopted before it is even clear how effective it is. She commented: “We want a successful gambling industry but not at the price of public protection. Player protections must be made mandatory so that every bookmaker must abide by the new rules. “I have asked the Gambling Commission to make this happen. In the future, these rules will therefore form part of the operators’ licence conditions and bookmakers will have to accept them or not be able to trade.” Obviously, there has been a lot of political manoeuvring around the gaming machines and problem gambling, driven mainly by a huge lobbying campaign against the

product, and Miller’s stance no doubt been calculated to keep at bay the Labour Party’s opportunism over the gambling industry. She added: “I want player protection to be stronger and enforceable. So I am asking the Gambling Commission if the £250 limit before you see a pop-up message is too high and whether we should reduce it. Half an hour seems a long time to spend playing such a machine, so I am asking if we should shorten the time before an alert appears. We need to be tougher and insist players must preset the maximum amount of money they intend to spend or the time they intend to play for.” Miller’s comments have been widely welcomed in the betting industry, with William Hill CEO Ralph Topping commending the culture secretary. He also suggested that Labour’s position on the gambling industry might end up being more flexible if they form the next government. “I’m not being at all flippant on this, I defy anybody who says anything when

they’re opposition, to be invariable when they get into power. If they get into power, then they’re faced with the stark reality which is different from that which they face when they’re in opposition.” Topping said that some of the current dialogue is more about politics than the industry, although he accepted that there should be debates over planning and the clustering and even around advertising. He was keen to point out though, that there is almost a conspiracy of silence around a different high profile gambling product. He explained: “If you look at what the National Lottery in terms of the number of outlets, and the amount of training that the staff in those outlets get, the fact that 16 year olds go into those outlets and can begin gambling, the fact that there’s a recognised problem with scratch cards which is greater, in some respects, than machines, then there’s a need for a level playing field in terms of attention given to other businesses, other prod-

MARIA MILLER: ‘WE WANT A SUCCESSFUL GAMBLING INDUSTRY’

ucts and, especially, the National Lottery.” He added: “I don’t think it’s a good thing that 16 year olds go and learn how to gamble, and I don’t think it’s a good thing that money from 16 year olds gets ploughed into good causes. I think the National Lottery, in some ways, could be taken as a breeding ground for further gambling later on. And I think it’s very important that a timeout is taken, that rational people look at this sensibly and, if any decisions are going to be made, don’t genuflect about one sector but look across all sectors.”

ANALYSIS Problem gambling around machines is a tinderbox at the moment and the industry is hoping that it the government, well the DCMS at least, will keep to its word and make evidence-based decisions, even if the Treasury doesn’t appear to be doing so. As Ralph Topping commented: “This is a tough area to get your head around. There’s a lot of emotion; there’s inevitably a lot of politics; surprise, surprise, there’s a lot of people who don’t like bookmakers, but decisions have to come from ongoing research, an absolute, ongoing research, fact-based, data-led.”

Betfair gets aggressive with ‘Price Rush’ EXCHANGE

etfair is competing ‘more aggressively’ and is investing ‘heavily’ in customer marketing and product development, according to the exchange’s CEO Breon Corcoran. Speaking at the firm’s Interim Management Statement, Corcoran revealed that revenues were up 5 per cent driven by a 12 per cent increase in sustainable markets, mainly in the US. Corcoran commented: “In 2014, we will double our share of voice on television and are delighted to have recently signed a deal with ITV to become a Gold partner for its football coverage over the next 15 months, including the World Cup and Champions League. This complements our major presence on Sky

Exchange. We call this a ‘Price Rush’. As this is rolled out across more markets, Sportsbook customers will enjoy a better betting experience and Exchange liquidity will be further strengthened.” Betfair said that the jump in revenue to £95.4m was driven primarily by Sports and Betfair US. Compared with the prior period, there was a £1.8m impact from last year’s regulatory driven exits from Greece and Germany. The volume of bets on its ‘risk sports prodSports and recent return to market place. I am excited ucts’ doubled and Sports Channel 4 Racing. to report that we have now revenue was up 27 per cent “Since its launch, Betfair integrated our Exchange year on year, driven by the has stood for innovation and and Sportsbook, allowing launch of the new Sportswe believe that product dif- the odds on certain Sports- book in February 2013. ferentiation will be a major book bets to be boosted by Betfair US revenue was factor that determines leveraging the superior up 24 per cent, boosted by winners in a crowded value available on the the addition of horserace BETFAIR’S MOBILE REVENUE WAS UP 68 PER CENT

14 BettingBusinessInteractive • APRIL 2014

betting in New Jersey in March 2013 as well as the November launch of its online casino in the same state. Following continuing strong levels of customer acquisition, the number of active customers in sustainable markets was up 26 per cent to 424,000, driven primarily by the new Sportsbook. The number of actives in other markets was down 23 per cent at 137,000, reflecting the focus on regulated jurisdictions. The firm added: “The mobile channel continues to show strong progress, with revenue up 68 per cent. Growth continues to be led by Sports, with mobile now representing 60 per cent of revenue, while mobile Gaming revenue also trebled in the period.”

888 CEO Brian Mattingley has said that while its sportsbook is a relatively small part of his group’s business, it plays a key role with its users. He explained: “Sport market is important to our customers, especially around major sporting events, and also acts as an important acquisition tool enabling us to build our customer base and migrate players across products. We continue to recognise both the need to invest in our sport offering and the growth opportunity in this market.” An improved 888Sport offer was launched during the spring supported by a marketing campaign and has delivered positive results with both margin and revenue improvement. SINGLE-MANNING RETURNS TO HILLS

William Hill is to introduce the controversial practice of single-manning into its betting shops estate after what CEO Ralph Topping described as a ‘wellmanaged risk-based trial’. He explained that the bookmaker is no longer insisting that shops are dual manned in the evening, where the firm believe that it’s safe to do so. Topping explained: “This is not a blanket approach; it is not wholesale. It’s based on very strong risk assessment. There is, obviously, some savings in that, but we want to pass a lot of that savings on to the workforce as well.” POOLS PERFORMANCE

Sportech’s Football Pools business saw a slight decline in revenues for 2013 to £41.3m, driven primarily by a £1.6m decrease in the collector and overseas channels. EBITDA fell by £1.4m to £17.4m (2012: £18.8m) with cost efficiencies offset by increased marketing spend to drive recruitment that will add value into 2014 and beyond. Classic Pools average weekly customer spend has increased to £2.67 (2012: £2.58) driven by an increase in games to two games per week, every week. As at December 2013, total customer numbers were 360,000 compared to 397,000 in prior year. In the direct channel, customer numbers fell by 6 per cent to 248,000.

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BB115-p16-18-Politics_09/10 03/04/2014 10:51 Page 1

Politics Proposed tax burden not sustainable in the long term

GEORGE OSBORNE: UNMOVED ON THE ARGUMENTS FOR A 10 PER CENT REMOTE GAMING DUTY

It wasn’t just the retail bookmakers who have been left feeling shortchanged by the UK Chancellor’s Budget. TAXATION

espite hopes that the Treasury might use this Budget to revisit its desire to tax online operations at 15 per cent, the silence from George Osborne on the matter was deafening. It was a particular blow for the Remote Gambling Association (RGA) which has restated its view that a rate of 15 per cent for the new point of consumption tax is too high; and the regime still does not appear to make allowances for bonuses and incentives. The RGA says that this heightens the risk that British licensees will lose significant market share to black market operators and that this will undermine the regulatory objectives of DCMS and the Gambling Commission. The government is going ahead with its proposal to introduce a point of consumption tax

for remote gambling, with a prospective implementation date of December 2014. All of the economic analysis that has been undertaken indicates that if the tax burden is too high then there is a serious risk that this will lead to a reduction in value and choice for consumers. The RGA said that this could act as an incentive for them to seek out non-licensed companies who choose to operate outside of the British regulatory and tax regime. If that happens it would seriously undermine the objectives of the British licensing regime. Clive Hawkswood, chief executive of the RGA, said: “We have repeatedly said that the reason that the vast majority of wellknown British companies operate from other jurisdictions is that the UK tax burden is unreasonably heavy and makes it very difficult to compete in the

international market. This new regime has given the government the perfect opportunity to correct past mistakes and it is very worrying that despite all the evidence it has not done so. “Not only KPMG, but other respected experts at PwC and Deloitte, have all reached the same conclusion that any rate above 10 per cent GPT is not sustainable in the long term. We cannot make the case any more clearly. We will continue to engage with HM Treasury in pursuit of what we believe should be the common objective of establishing a viable long term UK market where licensed and tax-paying companies can not only survive but thrive.” The Culture, Media and Sport Committee’s pre-legislative scrutiny of the proposed regulatory reforms stated: ‘In setting a tax rate for remote gambling, the Treasury should bear in mind

that too high a rate would be liable to drive customers and companies into the unregulated, black market’.” The RGA said that the government does not appear to have taken account of their views. On top of the taxation, the Gambling (Licensing and Advertising) Bill currently going through Parliament has just had an amendment added that will see remote licence holders required to pay the Horserace Betting Levy as well as the Remote Gaming Duty. The Budget also warned of a sports right. Hawkswood said: “It was extremely disturbing that the Chancellor referred to the establishment of a ‘Racing Right for horseracing’. We understand that this is just one of the options that will be under consideration, but it is one that will inevitably be opposed.”

Darling to chair ABB APPOINTMENT

he Association of British Bookmakers (ABB) has appointed Paul Darling QC as the new chairman with effect from 1 May 2014. Darling, a barrister, was called to the Bar in 1983. His practice is focussed principally in the areas of construction, engineering and energy law. He was appointed Queen’s Counsel in 1999 and Head of Keating Chambers in 2010 and is also Chairman of the Sports Ground Safety Authority, which is a government appointment. Darling was a Non-Executive Director at the Tote (2006-2008) and became a Government Appointed Member of the Horserace Betting Levy Board (Levy Board) in 2008. Darling will step down from the Levy

PAUL DARLING QC

Board upon taking up his appointment at the ABB. Outgoing ABB chairman Neil Goulden said: “I am delighted that Paul has agreed to join the ABB Council as our new chairman. The Licensed Betting Office (LBO) sector, and its historic position as a positive part of local communities, has never been under

16 BettingBusinessInteractive • APRIL 2014

such intense scrutiny. Paul will bring independence and intellect to the challenges facing the ABB and its members. I have no doubt that he will both challenge our strategy and become an eloquent and positive advocate for the role that LBOs play in their local communities. He is also a strong supporter of British Racing and has a deep understanding of the symbiotic relationship between racing and betting. I wish him well in a role that I am sure he will find interesting, challenging and enormous fun.” Darling added: “I am very pleased to take up the appointment as chairman of the Association of British Bookmakers. Despite the undoubted difficulties which the bookmaking industry faces, I know that

this is an exciting time to be involved in it, and I relish the challenge. I very much hope to contribute to an analytical evidence-based approach to the issues. “From my time as a Director of the Tote (2006-08), I have been a long term supporter of betting offices as an important part of vibrant local communities. I am also a lifelong supporter of British Horseracing and I look forward to continuing the recent constructive dialogue between the bookmaking industry and racing. In the current (difficult) climate much can be achieved by racing and bookmaking working together and I look forward, as chairman of the ABB, to continuing to foster a more positive relationship between bookmakers and the sports that they support, most notably British Horseracing.”

ANALYSIS While the DCMS appears happy to take evidence when formulating its decisions, the Treasury is not in listening mode, which is disappointing considering the weight of information against its stance. KMPG warned that a 15 per cent rate could see firms unable to recover their costs and either go out of business or be forced to operate in the grey market. It also added that a very large number of UK customers may well switch to buying gambling products from offshore duty avoiding providers because they are able to offer lower priced, more attractive, products. It added: “If either of these come to pass, then it may be difficult to reverse these consequences with a subsequent reduction in the tax rate.”

Seminar to tackle advertising changes ADVERTISING

he Gambling Commission was one of the organisations attending at a specialist seminar on gambling advertising last month hosted by Committee of Advertising Practice (CAP) and Advertising Standards Authority (ASA). The event was intended to set out for advertisers the proposed changes in the Gambling (Licensing and Advertising) Bill. Under the proposed changes all gambling advertisers wishing to advertise to consumers in Great Britain will require a Gambling Commission licence. Last month saw the Bill progress through the House of Lords and enter the ‘ping pong’ stage before it was sent off for Royal Assent. The seminar provided an outline of the regulatory framework governing gambling advertising and advice on the various key areas covered by CAP and Broadcast Committee of Advertising Practice (BCAP) advertising codes in the light of a recently published Help Note. The Gambling Commission’s senior manager for remote gambling Paul Morris said: “The Commission works closely with CAP, BCAP and the ASA and sees this ‘Advice:am Gambling Advertising’ seminar as a first class opportunity to brief gambling advertisers on the changes ahead.” The ASA is considering whether further seminars might be useful so anyone wishing to attend a future seminar on gambling advertising should contact Zoë Kalu at the ASA.

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BB115-p16-18-Politics_09/10 03/04/2014 10:54 Page 2

Prize agreement

Politics ACTION IMAGES/JULIAN HERBERT LIVEPIC

The Horsemen’s Group and Arena Racing Company (ARC), and the British Horseracing Authority (BHA), have signed a Prize Money Agreement, bringing the number of British racecourses to have signed Prize Money Agreements to 53 from a total of 58. The signing of the agreement signifies a three-year contractual commitment from 2014-2016 between ARC’s 14 racecourses and the sport’s participants. Under the terms of the agreement the sport’s participants share in the betting-related revenues generated by racecourses.

Anti-money laundering directive provokes different reactions The European Parliament has been discussing money laundering again and its conclusions have pleased the EGBA while disappointing the RGA. EUROPE

he European Gaming and Betting Association (EGBA) has ‘saluted’ the European Parliament vote supporting a single set of rules throughout the EU designed to fight the risks of money laundering. Last month Parliament adopted by an overwhelming majority revised rules designed to fight the risks of money laundering. The updated rules subject for the first time all gambling services to EU-wide rules to prevent money laundering. With online gambling operators offering their services across Member States, the EGBA says the revised rules will bring greater legal security and consistency to the EU regulated industry. Maarten Haijer, Secretary General of EGBA, welcomed this fundamental legislation: “The EGBA would like to congratulate the European Parliament for its vote on these revised rules. It confirms that online gambling is an inherent cross-border service which, in line with the subsidiarity principle, is better governed by one set of rules at EU level, rather than by 28 different national laws. These rules will further add to the existing body of Internal Market legislation applicable to the gambling sector.”

MAARTEN HAIJER: ‘ONLINE GAMBLING IS AN INHERENT CROSSBORDER SERVICE’

ANALYSIS The revised rules were first presented by the European Commission in February 2013, and were intensely debated by two parliamentary committees until last month. As the Council and the European Parliament need to agree on the proposed revised rules, negotiations will resume after the European Parliament elections in May 2014. Maarten Haijer said: “We are confident that the European Parliament now has a good basis to come to an agreement with the Council. We hope that the final text will be approved by all institutions by the end of the year as it is vital that the directive is transposed at national level as soon as possible.”

The text as voted by the Parliament also says that Member States may be exceptionally entitled to exempt certain forms of gambling following approval by the European Commission. Haijer added: “If exemptions are to be granted, they will need to be risk-based and supported by clear evidence. The lack of cash money and the transparency and traceability of online gambling transactions in a regulated environment are great assets to mitigate potential risks of money laundering.” The Remote Gambling Association (RGA), however, was less impressed. While it ‘strongly supports’ the objectives of the 4th AntiMoney Laundering Directive, it was disappointed that online gambling has been singled out as the one form of gambling where due diligence measures might have to be applied to all customers as soon as a business relationship is established. The RGA argues that this runs completely counter to the riskbased approach that has always been a key principle of successive AMLDs. Following this vote, the European Parliament’s position would require online gambling operators

to conduct due diligence as of the establishment of the business relationship with their customers. This requirement conflicts with the spirit of the Commission’s proposal and the previous Directives. In practice it could well mean that the online gambling industry will be compelled to conduct due diligence on every one of its customers. RGA chief executive Clive Hawkswood said: “It is very difficult to see how an objective review of the facts, including the success of the Third AMLD in combatting money laundering, could have led Parliament to this conclusion. The licensed online gambling sector has highly developed tools for identifying possible threats and has an excellent record in preventing money laundering. As an industry we are never complacent, but quite simply there is no justification for singling out our sector for this kind of treatment. “We have consistently supported a risk-based approach, which we consider to be the most suitable manner to tackle any problems and, of course, individual Member States can introduce additional measures if there are specific issues within their jurisdictions.”

Levy to be extended to remote operators FUNDING

he British Horseracing industry received a boost during the report stage of the Gambling (Licensing and Advertising) Bill when it was announced that the government plans to change the current law to extend the horserace betting levy to overseas bookmakers. This is intended to create ‘a level playing field’ between on and offshore operators so that all will contribute to maintaining the quality of the racing product and also fund integrity, veterinary and breeding activities. The Horseracing Betting Levy is a statutory levy (under the Betting, Gaming and Lotteries Act 1963) on the gross profits of bets taken on British horseracing and is collected by the Horseracing Betting Levy Board. It is currently only collected from bookmakers whose opera-

18 BettingBusinessInteractive • APRIL 2014

tions are based in Britain because the current Levy regime predates remote gambling. Minister for Sport and Gambling Helen Grant said: “We want to see British horseracing, an industry that supports thousands of jobs across the country, continue to thrive and extending the Levy to offshore remote operators will help do exactly that. At the same time, we will continue to explore other options for wider Levy reform. We will be announcing next steps in due course.” The amendment made during the report stage of the House of Lords was also welcomed by the governing body for the sport, the British Horseracing Authority. Chief executive Paul Bittar said: “On behalf of the British Racing industry, I would like to thank the government for its

forthcoming Amendment to the Gambling (Licensing and Advertising) Bill, which will close a loophole that has significantly undermined the funding of our industry for a number of years.” It was always thought unlikely that the Levy Scheme would stand up to scrutiny in Europe over state aid claims, so the government is taking a risk here that the European Commission will not object and, by extension, order the removal of the Levy Scheme altogether before a replacement mechanism is found. However, the government has already raised the prospect of a ‘racing right’ being introduced, which should be enough of a stick to the betting industry to not raise any state aid objections to the Levy’s extension.

HELEN GRANT: ‘WE WILL CONTINUE TO EXPLORE OTHER OPTIONS’

POLITICSBRIEFS DISPUTE RESOLUTION CONSULTATION

The Department for Business, Innovation and Skills (BIS) has published a consultation on implementing the EC Directive on Alternative Dispute Resolution (ADR) which requires government to make ADR available for disputes concerning contractual obligations between a consumer and a business. Under the Directive, ADR entities handling disputes related to gambling will have to be approved by a UK competent authority and meet certain requirements relating to independence, experience and provision of information. BIS is now seeking views on the implementation proposals, and calling for evidence to help it consider a broader simplification of the ADR landscape. The consultation runs until 3 June 2014. BUDGET’S BINGO BOOST

The Rank Group has welcomed the halving in bingo duty in last month’s Budget, saying that it would immediately open three new bingo halls. Rank, which currently operates 97 Mecca Bingo clubs across Great Britain, revealed that as a result of the duty change it was now able to invest in the modernisation of the bingo industry. The company said: “The new clubs will be used as a base for innovation, testing new concepts and new technologies to reposition its bingo clubs for the future. Rank’s hope is that this process of innovation, research and development will trigger successive rounds of reinvestment nationwide.” SPOT THE BALL REFUND

This month will see whether HMRC will have to pay out nearly £100m to Football Pools operator Sportech. The VAT repayment claim, in respect of the ‘Spot the Ball’ game, was successfully determined in Sportech’s favour by the First-tier Tax Tribunal in March 2013. HMRC has been given leave to appeal this decision to the Upper Tribunal and the appeal hearing will be held on 29 and 30 April 2014. The claim is for approximately £95m including simple interest. Sportech commented: “We are pleased with our success to date and remain confident in our arguments and a successful outcome of the appeal.”

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BB115-p20-27-Essential_Layout 1 03/04/2014 13:19 Page 1

BettingBusinessInteractive • APRIL 2014

Betting Business Interactive Edition

B 2 B

28 Why gaming machine restrictions shouldn’t be limited to LBOs

Essential guide to ...

GPS system is helping bookmakers locate new football punters

VIRTUAL RACING

32 Microgaming has big plans this year for its slot portfolio

34 Paysafecard on the secure way to take payments online

April 2014

HIVE MIND Net Entertainment on developing a game based on a major horror film Essential Guide 33

Virtual sanity to diversify from horseracing Stan James director Euan McCormick, who heads up nearly 100 shops for the bookmaker, discusses how the 2001 foot-and-mouth outbreak challenged traders’ overreliance on live racing, creating demand for virtual products. ow did virtual racing first come onto your radar? Virtual racing was initially presented to me as an online product that was designed to offer a racing like product available 24/7 online, but as I remember it, there wasn’t a huge initial uptake on it and it was pretty low key. The product started to take off as it was used as a filler product in the shops for when weather affected racing, or to provide a live product for customers to watch and bet on during increased trading hours when evening racing and Sunday racing were introduced. SIS and Turf TV started to bolster their live racing service offering and it’s now an established part of our business, which sees normal staking patterns and is treated in almost the same way as live racing.

virtual gaming and racing, but how do punters react, and what are the drawbacks? The strengths of the virtual product include the reliability and precise nature of the scheduling as previously mentioned, which is perfect for a business that needs to offer regular betting opportunities to promote turnover. It is also a much more reliable profit margin than traditional racing, which is dependent on the performance of favourites, etc. The weaknesses of the product include the perception that it’s somehow controlled by the bookmakers (all the virtual products are driven by a Random Number Generator, which is endorsed by the Gambling Commission to ensure fairness). Virtual racing is also much less engaging as it doesn’t feature the real jockeys and horses that people can study and gain knowledge of.

It really established itself during the 2001 FMD outbreak, which saw Cheltenham and other high-profile race meetings cancelled. How did the industry suffer? Foot and mouth was disastrous for our business as it happened before the retail bookmakers had alternative products to offer in place of live racing, and it resulted in bookmakers effectively losing their main product for a prolonged period. I believe this contributed to the accelerated development of virtual products and the subsequent move away from live racing as the sole product on offer.

What does the future hold for virtual racing and gaming, given that Stan James’ virtual sports include horse-racing, greyhounds, football and motor racing? Technology is advancing so quickly it’s hard to know - I’m pretty sure the technology is around to be able to develop bespoke online virtual events such as boxing matches between boxers from different eras or football teams that couldn't have met in history and then to offer odds on them. I’m also sure that self-service betting terminals that have on demand events for customers will grow in coming years and virtual products will be a core part of that.

You’ve mentioned some of the strengths of

BB115-p20-27-Essential_Layout 1 03/04/2014 11:13 Page 2

B2B

BettingBusinessInteractive • APRIL 2014

LBO Technology VIEWPOINT

SG GAMING

Laws needn’t put off shop investment

Corbett signs up with SG Gaming until 2018 One of the country’s biggest independent chains, Corbettsports, has extended its deal with gaming machine supplier SG Gaming.

echnology has the great potential to lower costs and increase revenues, but there is so much technology needed now to run a betting shop you need a hefty wallet in the first place to make sure you’re up to speed. The fact that a fully kitted out new betting shop can cost something in the region of £250,000, it is not surprising that it is firms with big pockets opening most of the new shops. If the Demands Test were in place then at least it would give firms with less capital outlay the confidence to make that kind of investment, as they could be relatively sure that a premises would retain that value. But under the market forces approach of the Gambling Act (possibly the only market forces aspect of a law which was based on recommendations by economist Sir Alan Budd), investing in a new LBO is more of a gamble than before given that a bigger competitor could open next door. With more planning restrictions mooted on a regular basis, perhaps this will soon be changed, posing fewer threats to LBO ROI. Of course, the only thing that bookmakers are increasing their investment in at the moment is Her Majesty’s Government, with very little return on investment. With technology developments pushing down prices, it won’t be very long before betting shops can provide personal in-shop interfaces for all their customers and hopefully by then the current chancellor will have found another industry to soak.

aming, a division of Scientific Games Corporation, has announced a four-year contract extension with independent betting shop operator Corbett Bookmakers. The new contract extends the existing partnership until 2018. SG Gaming’s strong content offering and operational support were the key reasons behind Corbett’s decision to extend the contract. Since the partnership began in 2010, SG Gaming’s content titles have helped drive significant cash box revenue across the Corbett estate. Under the new deal, SG Gaming will supply Corbett with its Vision and Infinity cabinets. The cabinets will be rolled out to all 61 of the Corbettsports-branded shops over the course of this year.

Commenting on the announcement, Phil Horne, group managing director of SG Gaming UK, said: “We are thrilled Corbett has decided to extend their deal with us and we look forward to working with Michael Corbett and his team for another four years. SG Gaming’s combined offer of content and operational support has been instrumental to the success of the partnership.” Corbett Bookmakers were founded in 1947 by William Thomas Corbett as Telephone Credit Bookmakers with a starting capital of £1,000. The family owned company has grown to 61 betting offices, situated between Aberystwyth and York, and a host of prominent betting pitches on Racecourses throughout the UK including the

prestige meetings at ‘Royal Ascot and Cheltenham’. On the decision to extend the deal, Michael Corbett, MD of Corbett Bookmakers, added: “SG Gaming’s service and support has been exceptional over the last few years. Their content offering is the strongest in the industry, and they provide independents like us with all the support we need, particularly with training and marketing. Such support is an invaluable addition. We look forward to another four years of working in close partnership.” The deal with Corbett Bookmakers builds upon SG Gaming’s recent contract extension with Ladbrokes, and the rollout of Infinity cabinets to the Gala Coral estate last year.

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BB115-p20-27-Essential_Layout 1 03/04/2014 11:19 Page 3

B2B

BettingBusinessInteractive •APRIL 2014

Essential Guide to ... LBO Technology BETCONSTRUCT

BGT

Solutions that suit the UK market

Bringing inplay into the betting shop DAVID WEBB

David Webb, now head of UK Retail at BetConstruct after years the Tote, Victor Chandler and Samvo, discusses the challenges of developing technology for the betting shop environment. I have spent the best part of 28 years working in the LBO industry and I know how important it is for independent operators to partner with the very best technology suppliers in order to give their punters the best experience. The majority of my time so far has been working with the development team in order to make the existing BetConstruct EPoS solution compatible with the UK market. This has included tailoring the back office and introducing slip capture and mark sense processing systems. The role is a challenging one, but I am relishing it, mainly because I am very impressed by the BetConstruct solution and framework. The current EPoS system operates extremely effectively throughout Eastern Europe and Central Asia, providing our partners with a sys-

“

tem that can cater for more than 14,000 in-play games a month. Overseas operators process “over the counter” in-play bets on football and other sports with the minimum of fuss in land-based environments, but this is an area many UK operators struggle with. There is a huge market for in-play betting in UK LBOs as the current increase in retail Self Service Betting Terminals (SSBT) clearly indicates. I have seen multiple betting shops in the UK, who previously had only one SSBT, triple this to meet demand. The issue for most independents is both space and the cost of the hardware. The UK’s traditional way of processing bets is for customers to write their own slips, however, this is not ideally suited to in-play which is more volatile and with precious seconds wasted while, for ex-

ample, customers write down their selections, instructions and stake. So, why don’t we introduce a system here that caters for verbal instructions similar to those adopted abroad? Personally, I think it is the lack of a solution that allows a customer to confirm his/her own stake instructions, similar to the way that a betting terminal does. The challenge for suppliers is to develop a solution that suits the uniqueness of the UK market and one that UK operators are comfortable with - a challenge that we are working hard to address and will update the industry with later this year. If this technology was in place, then small and medium sized independent operators could enjoy an in-play betting solution that encourages interaction between LBO customers and staff - a priceless offering in a World Cup year.”

SIS

Social deal will help provide customer insight There’s so much information on people available via social media that SIS is trying to filter it in a way that is useful for bookmakers. IS is moving into the social media space by partnering with digital intelligence experts iris Concise to develop innovative monitoring products for use by bookmakers, their traders and punters. SIS will work with iris Concise, the consulting arm of the creative innovation network iris, to develop sophisticated search tools with the capability to listen in to social comment on leading networks, such as Twitter, Facebook and Instagram. This will then be filtered by date, sport, territory, betting trends, bet-types and markets, and a range of other topics, enabling SIS to produce a wealth of data around a given event whether it is football, horse racing or tennis, or a major event such as the World Cup. It can then turn that into useful applications to help all sides of the betting industry. A leading provider of end-to-end products and services to the betting and broadcast industries, SIS’s partnership with iris Concise, experts in social intelli-

gence, is the latest strand in its digital strategy to grow and diversify its range of services, shaping and developing groundbreaking solutions aimed at the betting industry, and roll out those products into the digital market place. Paul Baker, SIS’s director of strategic development, said: “People usually discuss their plans before acting on them, and that’s clearly reflected in their social network activity. We can listen in to that social chatter and by filtering it, we can gather an enormous amount of data and in turn de-

velop a range of products to help our customers and their customers. “This is at the cutting edge of social media and we are excited about the prospect of bringing new ideas to the market place. Our partner iris Concise are experts at handling that data and understanding how best to shape it and we are delighted to be working with them.” Benjamin Chilcott, managing director at iris Concise, said: “This is an exciting new partnership that allows us to leverage our 10-plus years’ of experience in the leisure and gaming industry, and our deep digital innovation expertise, to help SIS deliver social listening products. Moreover, as part of the global iris network, iris Concise can bring to bear all of this expertise and experience in helping brands shape the innovation agenda in their markets, to help SIS deliver extraordinary digital services for bookmakers, their traders and punters.”

BGT has been making the inplay revolution work in an LBO environment for a number of years now. ost sports enthusiasts are bombarded by televised betting adverts offering more and more wagers on the unfolding sporting action. Indeed, watching a major sports event at home heralds more in-play betting offers than most UK bookmakers on a Saturday afternoon. Well at least in an audio sense, as the emergence of over 5,000 sports betting terminals in the UK from BGT does deliver in play betting across all sports to punters. BGT launched its new software last year with more content and is already seeing business spread across an ever widening selection of bet types, sports and countries. CCO William Weir commented: “Depth of content is critical to the retention of customers and by working with Sporting Solutions, Betradar, Betgenius, SIS and the Racing Post; the SSBTS are able to provide the breadth and depth of content the customers demand. Our customers want everything.” BGT will embark on its first shop trials of its wall mounted solution in the UK, bringing yet another bet entry point to your local bookie. Weir added: “Electronic Bet Entry Points in a shop intuitively make sense for both the customer and the staff. Price finders are helpful, but allowing one to actually bet is best. The wall mounted solutions will support the SSBTs as further bet entry points in shops, while also providing a solution for shops where space is a constraint. We are keen to trial them before the World Cup and are very interested to see the punter’s reaction to them.” The key challenge for BGT will be the funding process as the units are not going to have the note or coin acceptors found in their terminals. If supporting existing terminals, BGT can use the terminals to accept cash and print vouchers for the wall mounted solution. Punters can also fund the solution over the counter and perhaps in the future through customer cards. In-play betting accounts for between 30 to 40 per cent of the turnover at BGT and will be boosted further with BGT implementing the Cash Your Bet Out early feature in time for the World Cup. “The Cash Out early feature is ideally suited to our clients as they mostly place accumulators. This development will ensure we can offer over 90 per cent of all cash out possibilities to punters giving them the chance to lock in their profits both pre match and in play.” said Weir. BGT has transformed the in play betting opportunities on the High Street and the BGT Cash Out Feature may prove to be very popular with the Operators. After all punters spending more time in their betting shop to check their potential cash out value from their bets potentially spend more funds on other products. The other good news, according to BGT, is that sports bets still attract GPT at 15 per cent and not 25 per cent like those other terminals found in betting shops.

BB115-p20-27-Essential_Layout 1 03/04/2014 11:26 Page 4

B2B

BettingBusinessInteractive • APRIL 2014

Essential Guide to ... LBO Technology MRG SYSTEMS

GREYHOUND RACING

Information at a manager’s fingertips

Greyhounds still an important part of the mix

The LBO manager needs to have the relevant information readily available, which is no mean feat given the wealth of data necessary for running a shop these days. This is where MRG Systems plans to step in. RG Systems believes that its Interactive Manager’s Monitor can make a real difference in the betting shop environment. The manager’s monitor comprises an interactive 21” Slate from HP and selected templates from MRG’s automated screen services. Building on ice cool looks, it provides an elegant route for the speedy access of key information by busy counter staff. Fully featured, the manager’s monitor is simple and fast to use. Large colour coded buttons and simple menus access the information instantly on a beautifully laid out big screen. Menus have been arranged to assist users to access information as rapidly as possible. The home page offers selections for the day’s racing, Cashiers pages, Settlers pages and links to all sports betting markets. The source of the information is the same as the gantry screen displays providing exact and accurate data at all times. Essential, routine information for non-runners, early prices and shows is maintained under the Index button at the top of the screen. With fast access to prices for any event, popular or infre-

quent it only takes a couple of touches to locate the information. For customers enquiring about other markets not on the main screens the monitor incorporates a full set of data using the multiple feeds which populate your system. Lightweight and slim the high definition screen can easily be turned toward the customer to double as a temporary customer information terminal when required. No more keypads to collect dust and dirt MRG’s interactive managers monitor introduce a cleaner, simpler and better way to work. Consistent with all products from MRG Systems any specific branding, design and layout requirements can be incorporated to provide the unique experience a customer wishes to present. MRG’s manager’s monitor comes equipped with features designed to assist counter staff with providing exceptional support to customers. It rationalises services at the front desk providing a single point of entry. MRG comments: “The manager’s monitor is reliable, providing important continuity, accuracy and consistency to counter staff in the shops.”

INVESTMENT

Boylesports introduces free wi-fi in shops SHARON BYRNE

Sharon Byrne, chair of the Irish Bookmakers Association (IBA), and Boylesports’ commercial manager, explains how retail betting technology is making ground on mobile and online gaming services, after an arduous struggle to survive. t the click of a mouse or the press of a button, punters can wage small or large stakes on everything from American football to UFC and winter sports. The anytime and anywhere nature is in stark contrast to limited opening hours and often reduced live sport within betting shops. Virtual racing, poker, lotto, YouTube, betting blogs and news have become mainstays on bookmaker sites, such as, Paddy Power, Ladbrokes, and William Hill. So what can retailers do to secure a fair share of the profits and counteract these challenges? Boylesports’ commercial manager Sharon Byrne believes that traders can replicate online advances to stay ahead of the game. “All Boylesports betting shops are kitted out with 26 TVs, six showing live or virtual racing events, and 20 showing the betting,”

explained Byrne. “Screen technology has evolved, with online technology replacing teletext, more information and content coming from foreign sources, not just Irish and UK anymore.” Self-service terminals are also now finding wallspace alongside the more traditional newspapers and it is through offering this type of development hat Boylesports hopes to keep pace with societal developments as it marks its silver anniversary this year. Byrne commented: “Boylesports strive to be ahead, an example being the introduction of free WI-FI across our shops two weeks ago.” Head of retail operations Jenna Boyle said such innovative approaches are aimed at improving customer relations: “This means instant access to all sites including Boylesports’ online offerings

which include live streaming, numerous inplay markets, results, information for all related sports and novelty markets with no limits on usage.” Today, Ireland’s largest independent bookmaker runs 192 shops, but in her role as head of the Irish Bookmakers Association, which represents nearly 70 percent of betting outlets, Byrne admits it would be naive to say brokers aren’t suffering under the weight of the financial crisis, especially smaller bookmaker chains. She repeated calls for ‘justice legislation to be implemented sooner rather than later’. She says retail units must be able to operate on the same level as online services, and both must be captured in the tax net, generating more revenue for the Irish Government and creating more sustainable jobs in both retail and online betting sectors.

A recent report intended to raise the discussion about the funding of the UK’s greyhound racing industry has highlighted the important role it still plays for bookmakers. recent report by Deloitte for the Greyhound Board of Great Britain has shed some light on the role that the sport plays in the betting shop sector. While it has been recently overtaken by football in terms of importance, it still plays a key role in over the counter transactions. In Britain’s 8,700 LBOs over £1.3bn a year is bet on British greyhounds, and a large proportion of British greyhound racing has been specifically developed to cater for the needs of the betting industry - notably the c.2,300 BAGS fixtures - which provide over 25,000 races for shop bettors to bet on and are timed to provide continuous product. In 2012/13 the gross win of £237m on the greyhounds provided an estimated margin of 18 per cent. This margin is significantly higher, and is subject to much less volatility, than for many other sports in LBOs, which is a key attraction of greyhound racing for the betting industry. The ability to deliver such healthy, consistent margins is dependent to a large degree on BAGS racecourses scheduling competitive graded races. The £237m gross win represented 16 per cent of over the counter betting, equating to just over one third of the total horseracing gross win. Greyhound racing was the third biggest OTC product in 2012/13, after horseracing and football (which overtook greyhound racing). The gross win from greyhound racing has declined markedly since 2008/09 when it was over £300m, in common with the betting patterns on horseracing. However, the decline has slowed since 2011 and there is some evidence that levels will be similar or marginally higher in 2013/14. The televising of many of the top races in LBOs through Sky coverage is thought to have been a contributory factor to this rebound. The report added that innovation might provide another bounce: “The type of bets offered on greyhound racing have remained relatively unchanged for some time, but recently some product innovation has occurred which is essential in today’s ultracompetitive market. New types of pool bet are being introduced, notably more exotic bets with a low probability of winning but potentially very large returns, which should help bring in new customers as well as appealing to existing greyhound bettors.”

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BB115-p20-27-Essential_Layout 1 03/04/2014 11:38 Page 5

B2B

BettingBusinessInteractive •APRIL 2014

Essential Guide to ... LBO Technology INSPIRED GAMING GROUP

Phase one of the player protection roadmap Jim O’Halleran, SVP UK and Ireland at the Inspired Gaming Group, discusses the new code which has seen innovative new player protection measures on gaming machines.

ow has the initial roll out of the measures gone? Since the launch of the ABB Code in September, the development and installation of the new on-machine measures has gone well and we’re pleased we could use our leading SBG/VLT technology to meet the tight deadline. The changes were remotely downloaded to our machines via our Open SBG Core network. Download to analogue machines would have taken considerably longer to achieve a manual enablement. The measures are now live on 15,000 Inspired B2/B3 gaming machines in bookmakers, with a small control group of 400 machines that will provide valuable comparison data. This is just phase one of what is an on-going player protection roadmap - we’re already working hard on researching and testing technology solutions to offer even more protection on our machines for those who are vulnerable to harm. We genuinely do not want problem gamblers playing on our machines and will continue to focus on providing entertainment to the majority who play within their means, whilst empowering those at risk to take control of their player behavior and seek help when needed.

How have you been helping your customers promote the new player protection features? The LBO industry as a whole - the ABB, operators and suppliers - has been working closely together to develop and implement the Code. It’s very much been a united effort. The ABB Code is about more than on-machine

measures - it also includes improved staff training to help identify problem gamblers, and to offer advice and support. Our customers have put in place a considerable amount of staff training about the new measures and on-going player protection, and they have also supported this with window and in-shop posters promoting the new on-machine responsible gambling tools. The William Hill responsible gambling window posters have been particularly prevalent on the high street and I would be extremely surprised if any players had not noticed them. The staff initiatives are an important part of an on-going requirement, not just the launch, and will be refreshed on a regular basis. Going forward, all posters and in-shop advertising will always devote 20 per cent to responsible gambling messages. How big an undertaking was it to get everything prepared for 1 March? It was a fairly big project and a tight timeframe, so many of our developers and operations staff were living and breathing this project over Christmas and into the New Year, to meet the 1 March go-live deadline. Obviously everything has to be thoroughly tested before it goes live, so the real deadline is much earlier. Saying that, everyone in the company recognises that we have a responsibility to use our technology expertise to help protect those players who are at risk. Our employees want to work for a company that’s leading in player protection, so everyone’s been focused on the positive aspects of the extra workload.

TAB AUSTRIA

Platinum deal from TAB The company behind the successful Nevada terminals, TAB Austria, has developed its successor in the shape of Go4Platinum. AB Austria unveiled its latest state of the art betting cabinet solution at this year’s ICE show - the new Go4Platinum terminal. Some of the most successful sports betting companies in the world use the flexible betting products from TAB Austria, and the company believes that its next generation cabinet delivers a whole new player experience. The ultra slim body and the futuristic lines of the Go4Platinum terminal are supplemented by LED-light strips and the two perfectly placed LED screens offer was TAB describes as ‘unparalleled visual impacts’. Every detail down to the material and finishes has been carefully chosen and precisely executed to set a whole new technical and design standard. The firm’s reliable hardware ensures fastest possible ROI and leads to maximum turnover. With well-proven backend tools all devices such as banknote reader, ticket readers, printers, USP or NFC devices are therefore easy to use. TAB Austria builds betting terminals with any

kevin@eagoco.com.tw

www.eagoco.com.tw

technical options that are required. Even the colour can be adapted to the customer’s corporate design. The new cabinet is the follow up of the world wide operated Nevada line that is well known by global players like William Hill, Codere, Paddy Power, Gala Coral, BGT, Wettpunkt and Betfred. TAB’s Siegfried Dattl commented: “The most successful sports betting companies in the world rely on the advantages of our flexible betting products. Our reliable hardware guarantees maximum turnover and fastest possible ROI. “For many years sports betting companies have worked with these terminals very successfully. All our terminals are available with one or two high-definition touch screens and can be equipped with bank-note reader, coin validator, barcode reader, card reader and printer, as you need it for your special application. Our commitment to product quality and reliability as well as after sales parts and service is unparalleled. Our huge success in the field of sports betting empowers us to innovate beyond the current market.”

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BETRADAR Betradar has enhanced its virtual sports portfolio with the addition of a simulation of another grand old betting product - greyhound racing.

Virtual Dog Racing provides betting opportunities 24/7/365 etradar, supplier of sports and betting related data, has released its new virtual sports betting product Virtual Dog Racing. After the recent success of ‘Virtual Horse Classics’, Betradar is proud to present yet another innovative virtual sports betting solution that celebrates the world of dog racing - a multi-platform virtual sport that will prove the perfect addition to any product portfolio. The new virtual product provides real money 24/7/365 betting on virtual dog races with outstanding 3D graphics and unique race simulations, guaranteeing a state-of-the-art and fun betting experience. With the launch of the new Virtual Dog

Racing, Betradar is further extending its virtual sports betting portfolio and is thereby on its way to providing a diversified virtual sports betting channel for the betting industry. Furthermore, the latest product launch coincides with the launch of Betradar’s new Remote Gaming Server (RGS) which allows a seamless integration of the product in any gaming platform. The hosted front-end and fully customisable Virtual Dog Racing solution incorporates the latest in Motion Capture technology coupled with magnificent looking new tracks. Each of the races in Betradar’s latest racing concept features a series of dog specifications and performance parameters that are inspired by real dog character-

The Complete Sports Betting Experience

istics and behaviour. In a similar way to ‘Virtual Horse Classics’, this new concept also offers multi ‘channels’ running in parallel, where each ‘meeting’ (race-day) contains a vast amount of races and various race distances. Each race day has an average total duration of 45 minutes with a fixed number of 6 participating dogs and a turnaround time of 2 minutes per race on average. As found across Betradar’s virtual portfolio, Virtual Dog Racing will also offer broad levels of statistical coverage for each race so that punters can assess their chances ahead of any race and enjoy virtual racing as if it were a real experience. Best of all, Virtual Dog Racing is not just available as an online solution - its unique simulation

and visualisation technology have also been optimised for retail operations and are suitable for betting shops. The product is available for terminals or as a flat screen solution (full HD resolution), including all online features. “We all know that Virtual Sports Betting has become an integral part of modern bookmaking. With Virtual Dog Racing, we extend our virtual sports betting portfolio with an entertaining and revenue-driving solution for all bookmaking operators. The fast-paced betting approach perfectly meets today’s market needs and punters will enjoy the impulsive nature of virtual dog racing,” explained Erik Lorenz, managing director sales of Sportradar.

Best Gaming Technology is the European leader in providing turnkey Sports Betting Terminal solutions and far beyond. Major operators relying on the leading technology and expertise from BGT include Gala Coral, Ladbrokes, William Hill, Paddy Power, Betfred, Jennings, Admiral, Wettpunkt, Tote and many more …

Our unique beneﬁts include: + Betting in 25+ languages + 100,000+ markets available every week + 75%+ of bets placed are accumulators + 30%+ of all bets are in-play with all sports covered + 25%+ margin to the operator + Live scores, live stats and in depth stats on all sports + Bespoke Coupons

Further information: sales@best-gaming.com

www.best-gaming.com

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Retail B2B Retail Listings

B2B content R et ai l

www.sis.tv info@sis.tv

gaming B2B machines R et ai l

“ ” Money app A new app is available from The Bank of England to build awareness of the security features in Bank of England banknotes. The app aims to make Bank of England educational material more accessible to retailers, businesses and members of the public. Through its touch-screen guide, it allows users to learn about the security features on all current Bank of England banknotes.

GAMING MACHINES

www.inspiredgaminggroup.com sales@ingg.com

www.tab.at

Machine developers want new measures across all categories

Better games through innovation

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Inspired and SG Gaming have raised the point that other sectors operate gaming machines and therefore should adopt the player protection measures as well. nspired Gaming and SG Gaming, the main suppliers of gaming technology and machines in the UK, have welcomed the launch of the first phase of responsible gambling measures on Category B2/B3 gaming machines in bookmakers, and have called for the mandatory introduction of these measures across all categories of UK gambling. Luke Alvarez, CEO and Founder of Inspired Gaming, said: “We do not want problem gamblers playing on any of our machines and the new measures are a positive first step in our long-term development roadmap to better protect the 0.5 per cent of problem gamblers in the UK and to minimise the risks to all gamblers. “However, it makes no sense to target bookmakers’ machines specifically those vulnerable to addiction will still be at risk with other venues, products and channels and we urge the government and regulator to work with stakeholders

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www.mrgsystems.co.uk sales@mrgsystems.co.uk

on how it can develop the concepts and learnings from the ABB Code for Responsible Gambling and Player Protection (ABB Code) across all UK land-based and online products.” Steve Frater, chairman of SG Gaming, said: “We are committed to providing a fun leisure experience for those who enjoy playing on machines, whilst developing new ways to protect those who are at risk of harm. We have been able to develop and deploy new player protection measures in under five months since the publication of the ABB Code in September but see this as only the first step in achieving world leading player protection software through continuing research and development.” Inspired Gaming and SG Gaming supply technology and machines to UK bookmakers including William Hill, Ladbrokes, Coral, Betfred, Paddy Power and hundreds of Independent bookmakers. Working closely with the Association of British

Bookmakers (ABB), problem gambling academics, and bookmakers, Inspired Gaming and SG Gaming have designed on-machine technology solutions to achieve the objectives of the ABB Code. Key points about the new Responsible Gambling measures in bookmakers: Introduces enforced breaks for customers on gaming machines with automatic on-screen alerts about the money and time spent Players can self-set customisable time and/or spend limits at the start of their session and will receive an on-screen alert about the money and time spent once limits are reached Staff are notified via the cashier system when any limits are reached, allowing for human intervention, and staff will be receiving comprehensive responsible gambling training Described by academic experts as ‘world-leading harm minimisation measures’, the Code came into effect March 1.

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VIRTUAL

CONTENT

Show debut from SENEJEUX enejeux Sarl , a niche focused virtual sports and live betting solutions provider, has made its debut appearance at the Association of African Lotteries Conference in Dakar, showcasing virtual Horse, Greyhound and Football betting solutions. Abel SY, marketing director of Senejeux, commented: “We have the intimate experience and know-how in the marketplace because we are from here, and already have successful commercial operations up and running in close partnership with LONASE. We intended to expand into the other seven West African French speaking countries we are targeting and to replicate the success we are having Sénégal.”

SIS reveals Good Friday plans IShas announced its Easter schedule times - and is set to break new ground on Good Friday 18 April. SIS is delivering an evening service for the first time on the main FACTS service and SIS+. Content will include BAGS greyhound racing with 12-race cards from Nottingham and Sheffield, while there will be horse racing from French track Toulouse. That follows an afternoon card from Marseille Borely. The UK will also see horse racing for the first time that day in the shape of the All-Weather

10m monthly Italian bets ince going live with its Virtual Sports products in Italy at the end of 2013, Inspired is reporting 10m bets per month on the products across retail, online and mobile channels. Inspired’s Virtual Sports are currently available in 6,000 venues with Italy’s five leading concessionaires, but will soon be rolled out to all 10,000 contracted venues - increasing the reach and popularity of the products. In time for the World Cup, Inspired will launch a brand new upgraded version of its world leading Virtual Football product for Italian players in June with enhanced graphics and extra bet markets. Virtual Basketball, launched at ICE 2014, will also be coming soon to Italy.

whose clients range from Coral and Betfair to support some of the country’s foremost racecourses, to deliver contracts more quickly by printing directly on to sign boards without the need for time-consuming vinyl overlay. Wingate Signs’ managing director Dawn Saunders said: “Academy Leasing’s flexibility meant they were able to recognise the strength of our service delivery, business model and the significance of this move in giving us a vital competitive edge.”

TREATMENT MARKETING

GamCare expands treatment reach

Flatbed racing

ingate Signs has introduced a Flatbed UV Printer into extended floor space at its Prestwich premises with the help of a £42,000 funding injection from asset finance specialist Academy Leasing. The investment will enable Wingate,

THE WINGATE SIGNS TEAM INSTALLING SIGNAGE FOR THE JOCKEY CLUB AT THE CHELTENHAM FESTIVAL

amCare has announced further service expansion with treatment partner Krysallis, this time into Scunthorpe, Barnsley and Grimsby. The GamCare network of treatment partners provides treatment across Great Britain for those who need sustained help to deal with their gambling problems. Krysallis provides face-toface counselling services for anyone experiencing gambling problems. Patrick Lund, Director, Krysallis said: “Our qualified and experienced counsellors have had the additional benefit of GamCare’s specialised training to help them better understand the particular issues faced by problem gamblers and their families. I’m delighted that together we’re making this specialist service available.”

Championships finals, when a £1m prize fund will be up for grabs at Lingfield. The action will be beamed live into shops by SIS and will be the culmination of more than 200 fixtures through the winter and around 1,500 Flat races at Lingfield, Kempton Park, Southwell and Wolverhampton. During the daytime programme, there will also be BAGS greyhound racing from Kinsley and Hove in the morning, plus Swindon and Monmore later in the day, as well as a full programme across the whole Easter weekend.

On Easter Saturday, Sunday and Monday (19-21 April) there will be horse racing from the UK, Ireland and overseas; 49s and virtual product; and the football videprinter service running across the Easter period with matches in all the major UK leagues. Service times are as follows. 49s and virtual content as normal. All times subject to alteration: Good Friday will see an SIS Main service from 10:00 to 21:30, with the first BAGS race on at 11.03 and the last at 21:19.

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

“” GTech is delighted to be awarded the opportunity to provide OPAP with our fully integrated Sports Betting gaming solution.”

Walter Bugno CEO, GTECH International

GTech has been selected by OPAP, one of Europe’s largest listed betting companies, as its strategic partner for OPAP’s operations in online betting in Greece. GTech’s proposal to OPAP, awarded as part of a tender procedure, includes the provision of GTech’s Sports Betting and GTech Player Account Management system.

ODDS

ACTION IMAGES / MATTHEW CHILDS LIVEPIC

GPS helps to locate football punters

Super Soccer Oddsfeed’s Jeevan Jeyaratnam explains how the Goalscorer Prices & Settlement System (GPS), developed in conjunction with data provider Abelson Info, is helping bookmakers get an edge with their football product.

hat’s the benefit to Super Soccer of having real-time goalscorer markets settled? Goalscorer markets are notoriously time-consuming to settle due to the number of variables (e.g. did the player come off the bench before the first goal was scored, did he play at all etc.) that must be taken into account before a result can be entered. Most firms are still having to dedicate precious manual resource to this task as there isn’t a shortcut without a specialised feed like GPS. Match day squads need to be whittled down into voids, winners and losers in what can be a highly laborious task. On a busy Saturday firms won’t complete settlement until long after some of the games have finished. GPS uses a live data feed to provide full settlement for all the major leagues around Europe within minutes of a goal going in. Not only that but it also plucks out all the voids before the

game starts when the final squads are announced. It is this speedy recycling of punters’ money that helps set this system apart. First Goalscorer can be a contentious market- where do you get the data from and how accurate can it be? As with anything there is an element of subjectivity when pricing first goalscorer markets but our experienced compilers rely on meticulously kept player statistics and in depth study of match reports. We are currently working on a new algorithm which will provide a plethora of derivative markets. For resulting, Abelson collate official match data to provide settlement, mapped to the goalscorer selections from the Super Soccer price stream. This is available for integration into the clients’ back-end system via a JSON API. Abelson are well established and trusted suppliers and their data feed is highly accurate.

Why should bookmakers outsource odds compilation and what makes it so specialised? Outsourcing is becoming the norm throughout the industry. This is, in part, due to the vast swathes of markets now offered by online bookmakers. It is cost effective to let the traders concentrate on moving the markets without accruing the labour costs involved with producing the original prices. GPS is so popular because of the extensive league coverage and the huge labour savings it provides. It makes clear sense to let our trusted team, dedicated solely to goalscorer compilation, handle the market. We ensure that the latest transfer, injury and suspension news are worked into the price feed. Added to that expertise, the GPS gives a full settlement service and so offers a great Goalscorer Product for any Sportsbook.

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CONTENT Profit drop for Perform liver Slipper, joint chief executive officer of Perform Group, has described 2013 as disappointing for the group as it experienced a 75 per cent drop in statutory profit before tax to £4.1m. The firm attracted six more Watch&Bet licensees to reach 46 and streamed 16,543 events - a 12 per cent increase. Slipper added: “Notwithstanding strong growth in revenues our financial performance in 2013 was disappointing. However, we made good OLIVER SLIPPER progress on executing against our strategy notably with the acquisition of Opta, which significantly enhances our existing sports data offering, and the launch of Perform Sporting News, a top seven US digital sports media property.”

12Xgaming on the NYX OGS YX Interactive has announced the launch of Virtual Sports betting within the NYX OGS portfolio following a recent agreement with 1X2gaming. With the launch of nine Virtual Sports titles within its OGS product including such titles as Virtual World Cup, Virtual Champions and Virtual Legends, 1X2gaming gains access to the growing number of OGS operators across the globe. Kevin Reid, chief marketing officer for 1X2gaming, said “We are pleased to be partnering with NYX in what is an exciting proposition. By making our content available to a wider range of operators, we will continue to demonstrate that there is a clear niche in the market for our data driven Virtual Sports.”

SOCIAL

B2B Sportsbook Listings

Impressive start for Marca’s Oddslife partnership he social betting network set up by Spanish media giant Marca has exceeded expectations from its soft launch in February, with it’s website users engaging with the product. Maca El Guru, which has been launched in partnership with social sports gaming technology provider Oddslife, allows users to engage and compete with each other using their knowledge of sports. Given that it was a soft launch, the product had a soft launch in February and received impressive traction from the off. During the first four weeks it experienced 5,000 user registrations, who spent an average of nine minutes during first visit, and 9.5 minutes during second visit. This was combined with a low bounce rate of 27 per cent. Over the period there were +5,000 bets placed on some of the top matches, and a total of 280,000 bets.

B2B betting platform S po rt sb

Marca director Carlos Gonzalez said: “We have been very pleased at the reception received from our users after just six weeks and we are already planning to take our engagement to the next level with the creation of apps for iPhone and Facebook. We are very excited about the World Cup version which we believe will attract many more users.” Oddslife CEO and founder Rasmus Sojmark praised the partnership: “Marca El Guru really shows off the capabilities of our platform. Working with Marca is a great coup for our team, as their brand and loyal following make them the ideal partner. “We’re now searching for more media brands in other countries who want to get involved with the thrill of sports betting without having to invest the time and the expense involved in getting a full betting licence or developing their own social games.”

oo k

Complete Gaming Platform

BetFlag up for Inspired talian operator BetFlag is to offer Inspired Gaming’s virtual sports portfolio to customers. Vitaliano Casalone, president of Inspired Gaming Italy, commented: “We are delighted to provide our premium VITALIANO CASALONE virtual sports content to such a pioneer in the online and mobile betting market in Italy. BetFlag’s Italian customers can now bet via mobile and online on eight different virtual sports and a comprehensive selection of all popular bet markets. Inspired’s Virtual Sports have been live in Italy since December 2013 and are already very popular with the Italian players. Our products are proven to generate twice as much more daily income than competing products in competitive trials - we look forward to years of success with BetFlag customers too.”

MOBILE Oddset gets Mkodo solution obile solutions provider Mkodo has successfully launched it mobile app with Danish operator Danske Spil, through OpenMARK GIBSON Bet’s sportsbook platform. It is the first product in a long-term roadmap that has been agreed between Mkodo and Danske Spil for its Oddset brand. The app provides Danske Spil’s customers with the ability to view all Oddset’s betting opportunities on their mobile or tablet device and supports the full range of live-betting events and markets. Mark Gibson, Mkodo’s Business development director, commented: “The performance and customer uptake has already exceeded expectations and we’re really looking forward to continuing its development and innovation.”

Intralot keeps it in -house ntralot’s Italian subsidiary, Intralot Italia, has enriched its interactive gaming portfolio with the launch of SportsMobile, its new mobile and tablet sports betting proposition. The new product enables mobile users to enjoy the excitement of prematch and live sports betting, using the lat-

est technology on mobile and tablet devices. SportsMobile utilises HTML5 technological innovations by Intralot Interactive and enables the player with a feature rich experience of GEORGE ZENZEFILIS sports betting. Group chief product & services officer George Zenzefilis said: “SpotsMobile, one of our group’s series of innovative mobile-first products, capitalises on our extensive sports betting global footprint and combines the latest of technological trends based on HTML5 framework.”

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making sense of the gaming industry

FOOTBALL Digital revamp for Football Pools ootball Pools operator Sportech PLC is aiming to arrest the decline of its pool betting business by transforming how the product is offered through its digital channels. The company explained: “To progress our digital offering, we have entered into an agreement with NYX to develop a new footballpools.com site with greater content, flexibility and functionality. The full site is planned to launch in mid2014 with mobile and tablet applications of Classic Pools, Premier 10, Jackpot 12 and Lucky Clover being launched during the first half of 2014.”

B2B trading services S po rt sb

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iGaming

“” By moving to Playtech product we are giving customers popular and market leading games as well as enhancing our ability to have a single view of their playing habits and a cross product view of player activity. Jim Mullen Managing director, digital Ladbrokes

Ladbrokes has successfully re-launched its casino offer with the introduction of Playtech’s full range of products across its Digital platform. The switch to Playtech products continues the migration to Playtech software and games that began with the launch of the Vegas tab and has continued with the recent Poker, Live Dealer and Bingo launches.

SLOTS

‘Significant opportunity’ from powerful tablets Neill Whyte, head of product channels at Microgaming, discusses his firm’s plans for the year.

ou’ve recently announced Jurassic Park, Terminator 2 and Game of Thrones - big licences what do these help you achieve? Branded content games are a key part of a Casino games offering and are the perfect accompaniment to our proprietary titles such as Thunderstruck and Avalon II. It’s no secret that big brands form an ideal acquisition tool for operators to attract players to their Casinos; they lend themselves perfectly to big marketing campaigns. Both Terminator 2 and Jurassic Park are legendary films and will resonate with many online players, and Game of Thrones is one of the most talked about current TV shows. However, it’s important to note that it’s not just about the brand. We take these highly recognisable brands and combine them with an appropriate maths engine and game mechanic to complement the theme and ensure that the slot will not only acquire players, but more importantly retain them. This concept can be seen in The Dark Knight Rises for example, where we’ve combined one of the most successful films in motion picture history with an innovative slot engine.

You’ve just done a sequel to Avalon as well. Is this an obvious route to take given the popularity of the original game or is it something you had to consider very carefully? Avalon was released back in 2006 and to our delight it was an instant hit with players.

Moreover, the slot has retained its popularity ever since its launch eight years ago and has been a top-performing game in terms of traffic, number of spins and net win. There were always discussions about a sequel, but we didn’t feel the need to rush this considering the first was performing so well. Once we felt it was time, we were determined to create a sequel that set a new standard in game development. We wanted to enhance the offering and embrace new technologies. And that’s exactly what we did. We pushed the boundaries for every facet of the game; characters are brought to life with fully realised 3D graphics, alongside film-quality animations and fantastic voice-acting. In addition, the Grail Bonus introduces brand new, patent-pending features to gameplay. We are very proud of what we have achieved with Avalon II. Microgaming has been a bit of a pioneer for online tournament slots - what’s the next development in this area? Our multi-player offering is continually growing - in fact, we’ve been adding a new tournament slot on a monthly basis. These tournament slots have been used for some mega network tournaments in recent months. Our Festive Frenzy event in December was very popular and we recognised that player’s love attention-grabbing prize pools. And so we repeated this in March with our March to Riches 100,000 euro network tournament. Thanks to the

popularity of the multi-player platform we expect to be hosting plenty more jaw-dropping tournaments over the coming months. As well as content releases and bigger jackpots, we will also be launching our tournament offering onto a number of additional platforms in the coming months, which will provide greater product availability. Given the increased real estate with the larger screen sizes - can you do more with tablets than mobiles in the development of new games? With tablets having a larger screen than mobile devices, this undoubtedly gives way to a world of new graphical options. If you’re looking to recreate the experience of Casino gaming on a mobile device, a tablet offers a dynamic way to do it. Tablets can offer better graphics and sounds to help make the whole gaming session feel more real. Higher screen resolution, powerful hard-

ware, and faster processing speeds help to deliver high definition, 3D, and visually gratifying games to users like never before. Furthermore, as tablets become more powerful, this presents a significant opportunity for us to produce bigger, more intricate and more immersive games - and this is where tablet-specific product development comes into play. We’ve been developing tablet-specific content for some time now. Back in January 2013 we released European Roulette Gold specifically designed for use on tablet devices. The game utilises the full tablet screen real estate, to deliver a stunning, high quality audio-visual gaming experience to players. In addition, a host of new features have been added to the game, including a Racetrack and a number history board, to ensure that a player’s roulette gaming experience on a tablet device, mirrors that of playing on a PC.

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DAVID JOHNSON

SLOTS Five new branded games from MX Digital S games developer MX Digital has announced the addition of The Blues Brothers and five new branded games for 2014, expanding its online portfolio and betting properties. The Los Angeles based developer teams up with Blues Brothers Approved Ventures for the use of the names and likeness of Jake and Elwood Blues, with promotional support from Dan Aykroyd. Acting sensations James Dean and Chuck Norris, sports greats ‘Smokin’ Joe Frazier and Dennis Rodman will feature in the company’s latest releases. This comes on the back of MX Digital raising an additional $1.2m in investment funding from Diamond Investments. Commenting on recent developments, MX Digital’s chief financial officer Ted Lanes, said: “The company is now uniquely positioned to expand its offerings through innovative games with great partnerships within the distribution side of our business model.”

Robotnik grows Yggdrasil portfolio ottery and slots developer Yggdrasil Gaming has unveiled the launch of Robotnik, a high variance video slot game based on Stanley Kubrick’s film ‘2001: A Space Odyssey’. The game centres on the 3D character that suddenly appears onscreen to unleash ‘wilds’ and a host of features. It follows the release of Jokerizer and Winterberries, titles in Yggdrasil’s casino range, and has been heavily promoted in the Nordic market. Commenting on its release, CEO Fredrik Elmqvist, said: “Our casino portfolio is growing rapidly and we intend to step up the pace even more between now and the end of the year. The appetite for Jokerizer, Winterberries and now Robotnik has been phenomenal and we’re very grateful to our partners for embracing and promoting them.”

director David Johnson. ”I expect our mutual partnership investment will provide significant returns for both businesses as a wider product range over all verticals is released, including some exciting exclusive titles developed in close collaboration which won’t be found elsewhere.”

MOBILE AbZorba gets Tangoed obile social games publisher AbZorba Games has expanded its partnership with entertainment giants, Tango. The messaging platform, which has more than 190m users, will now add poker to its portfolio, having incorporated AbZorba’s multiplayer games on Android and iOS, as well as roulette, slots and blackjack. Blackjack Live for Tango hit number one in the US iTunes App Store for casino games last year, while roulette was placed fourth. Andrew Hughes, CEO and co-founder of AbZorba games, expects similar success: “The addition of Poker for Tango completes a ‘Full House’ of co-branded game titles from us and demonstrates Tango’s faith in the strength of AbZorba’s game technology and knowhow.”

LIVE DEALER

FREDRIK ELMQVIST

VueTec to boost EveryMatrix oftware suppliers and iGaming analysts EveryMatrix has announced a new partnership with live dealer casino, VueTec. The move will expand and accelerate EveryMatrix’s CasinoEngine solution, a casino lobby which offers players access to more than 1500 games, into Ireland and the Isle of Man. Both firms praised and welcomed the venture, saying it would open up the market to more customers and potential users. Ebbe Groes, chief executive officer of EveryMatrix, said: “We are thrilled to have VueTec as part of our CasinoEngine product offering. With VueTec’s expertise in real time land based live dealer casino we can offer something unique, in demand and of high quality to our operators.”

NextGen on William Hill’s Vegas illiam Hill’s Vegas tab now features titles Foxin’ Wins and Irish Eyes 2 in both HTML5 and Flash. Developed by NextGen Gaming, the Sydney-based slots studio of NYX Gaming Group, the two games signal the start of partnership covering licensing of both mobile and desktop games from both the NextGen Gaming and Aristocrat catalogue. NextGen’s sales

EBBE GROES

LICENCING

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‘A shift in our typical game design’ www.greentube.com

Net Entertainment’s Simon Hammon explains the genesis behind the firm’s latest branded slot offering - Aliens. his is the latest major licence from Net Entertainment- what are the key factors needed to work alongside world renowned brands? The Aliens franchise has the perfect combination of suspense, science-fiction and action, making it a great brand to work with for online casino gaming. A good film or brand needs to be in touch with the core player demographic or target audience. Aliens, like our previous branded content, is instantly recognisable. The more iconic the title, the stronger the fan base and, with that, the ability to acquire players. We previously have launched Creature from the Black Lagoon, South Park, Scarface and Frankenstein - each of these have a significant resonance with fans and have increased player numbers for operators.

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How much input did Fox Studioshave in the game design? Fox Studios have been very supportive in the development process and also share Net Entertainment’s vision for game design. As with any branded partner we treat the project as a collaborative approach working closely together to achieve the best possible product. Fox Studios has a huge amount of experience in working with game projects and were the perfect partner throughout the collaboration. There was a constant dialogue between the two parties during the design and execution phase of the project. The fact that Fox and Net Entertainment share a passion for innovation and quality made the project a joy to work on. Audio played a big part in the Alien film series how have you looked to replicate that throughout the game? Sound and audio is an integral part of brand representation and the success of a game. Audio from the Alien film series is based on anticipation and suspense - a key ingredient in making a successful gaming product. The Aliens soundtrack provided the audio team the perfect platform to compose our own version to enhance the win anticipation on the reels. Replicating the feeling and emotion that viewers go through when watching the film needs to be reflected in the game. The final product is an amalgamation of sounds unique to the film and Net Entertainment’s own creativity.

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Back Office

“” Italy is one of Net Entertainment’s core markets and we are positive that our portfolio offering will be well received by GameAccount Network and its major partners.

Walter Bugno CEO, GTECH International

GameAccount Network, developer and supplier of enterprise-level Business to Business gaming software, is to offer Net Entertainment’s best in class PC and mobile content to well-known and established Italian operators such as Sisal, Snai and Eurobet.

PAYMENTS

Paysafecard can now top up Skrill Digital Wallets The hugely popular pre-pay card system Paysafecard can now be used with Skrill wallets and has been successfully adapted for the mobile platform.

aysafecard can now be used to top up Skrill Digital Wallets. This integration, which follows Skrill Group’s acquisition of Paysafecard in early 2013, enables Skrill Digital Wallet users to add funds to their wallets quickly, easily, and safely, without the use of a credit card or bank account, adding a new option for loading money to the Skrill Digital Wallet. Since its launch in 2000, Paysafecard has become a huge international success. The prepaid solution was the first product of its kind for purchasing digital goods online without any link to a bank account. Paysafecard is highly popular with consumers and companies in 37 countries worldwide. It works in a similar way to mobile prepaid cards. Customers can purchase their Paysafecard vouchers in denominations of 10, 25, 50, 75, and 100 GBP (or similar denominations in other currencies) from one of 450,000 physical retail outlets world-

wide. To make a payment, the user simply selects Paysafecard as the payment option at one of Paysafecard group’s official partner websites before entering the unique 16 digit PIN that comes with each Paysafecard. A wide range of online merchants use Paysafecard to increase their revenue by reaching out to new target groups. With this prepaid solution, companies such as gaming operators are also completely protected against chargebacks. “When it comes to paying online, many consumers have safety concerns,” commented Michael Mueller, CEO of Paysafecard group. “With Paysafecard, we offer a cash-based payment product which helps companies to address and attract new customer segments such as consumers who don’t have a credit card or don’t feel safe using it online.” With the solution being now fully customised for mobile devices, Paysafecard has seen a remarkable growth in the usage

of its product over the past few years. The Paysafecard app for Android and iOS is one of the first apps that uses Augmented Reality. Finding the nearest outlet is therefore easier than ever before. The app also allows its users to rate sales outlets right away, thereby letting other users know where purchasing a Paysafecard is particularly easy and convenient. The app also supports several languages and features a QR scan function as well as a news and promotions section. Paysafecard is popular throughout Europe as well as in Latin and North America. At the end of last year, the product was also launched in Australia. In 2012, the group won the Paybefore Award for being the ‘Best Digital Currency’ and the Paybefore Award Europe for ‘Most Innovative Prepaid Solution’. 2013 brought victory in the category of ‘Best Consumer Value’. Topping up a Skrill account with ‘my paysafecard’ is currently available for resi-

dents of Austria, Belgium, Cyprus, Czech Republic, Denmark, Finland, France, Greece, Ireland, Italy, Luxemburg, Latvia, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Sweden, Switzerland, Spain and the United Kingdom. Once funds are uploaded through paysafecard, customers can use them with any merchant that accepts Skrill payments, or to transfer money to other Skrill Digital Wallet holders. Users can enjoy the advantages of advanced security and control of their money, as there is no need to enter credit card or bank account information at any point in the process. Stuart Gregory, VP of Digital Wallet at Skrill, commented: “In a world where digital transactions continue to grow, the Skrill and Paysafecard integration provides a level playing field that enables those without bank accounts to still benefit from being able to make payments via the internet.”

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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, Joe Ewens

RESPONSIBLE GAMING Responsible Gaming award ntralot Peru, the leading lottery and sports betting company in Peru, has been granted Level 3 Responsible Gaming Certification by the World Lottery Association (WLA), becoming one of the first lotteries in the Latin American region to achieve such accreditation. Belkis Diaz, legal and corporate affairs manager of Intralot Peru, said: “We are very proud of this achievement and the effort and commitment of all our partners and stakeholders, as without them this would not have been possible. We will continue working towards the BELKIS DIAZ advancement of responsible gaming as it furthers both issues of compliance and sustainability through the creation of shared value for our customers and society.”

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.

MARKETING

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, 2014 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.

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Editor: Andrew McCarron Email: am@sjc.co.uk Tel: +44 (0) 1457 867 683

UK greyhound racing promoted in Azerbaijan and Poland

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PUNTER PENS 17,280

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atellite Information Services(SIS) has joined with international operator Intralotto help promote greyhound racing to punters in Eastern Europe. The companies have a longterm relationship with SIS supplying live and virtual dog racing whichIntralot localises, distributes and operates in a range of territories. Retail operators from two of those countries Azerbaijan and Poland - are being given the opportunity to come to London and witness top class BAGS action close up, while the races will be promoted back home to a live audience in betting shops. Intralot, via its local subsidiary Azerinteltek, operates in more than 500 outlets in Azerbaijan. In a new scheme to help promote the sport and incentivise retail operators, the leading ten will earn the chance to take a trip

to London, see the sights and experience racing at Romford greyhound stadium. Five of the races will be sponsored and carry names familiar to Azerbaijan punters; the racecard will carry promotional information; and the winners will, in pairs, present prizes to the winning connections in each of the five races. A similar scheme is running in Poland where Intralot supplies SIS services to around 300 shops via its local subsidiary Totolotek. Yiannis Gangas, Intralot’s director of racing, stated: “This initiative is part of our efforts to promote betting on premium greyhound racing to new international markets. We are more than happy that, with the support of SIS, we have the opportunity to reward our top performing retailers and increase awareness on BAGS greyhound racing in the markets we operate.”

FOR

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The Bookmakers’ Trade Fair 2014 October 9th 2014 at Wolverhampton Racecourse organised by

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Realistic embeds casino games rish bookmaker Paddy Power and Realistic Games have saddled up to create embedded iPad blackjack and roulette, ahead of the Aintree Grand National. The products will allow users of the latest version of the app to switch between their betting slip and the table games without having to transfer money or leave the sportsbook. Andy Harris, commercial director at Realistic Games, hopes the development will help customers betting through different channels: “We’ve felt for a while that embedding games in iPad sportsbooks, and ANDY HARRIS blackjack and roulette in particular because of their resonance with sports customers, was an idea with great potential. We knew that some of those customers are not always keen to migrate between betting and gaming sites and are often put off by having to move their money to other wallets. This solution negates both issues.”

STRUCTURE Americas restructure for GTech Tech S.p.A. has reorganised its Americas management team to meet its customers’ growing needs for an integrated offering across multiple gaming channels, including lottery, VLT, commercial casino,

and interactive gaming. It has also created a new Lottery Management Services structure to meet lotteries’ increasing needs for greater efficiency and reliable profits through private or outsourced management services provided by GTech.

PAYMENTS 30 per cent increase for Cheltenham ata from payment service providers saw a 30 per cent increase in transactions during this year’s Cheltenham Festival compared to 2013, up 123 per cent since 2010. In total, over £74.6m was spent in 2.77m transactions during the four day period across all currencies, including £63.8m in GBP alone, representing 85 per cent of the total. The busiest day for transactions was the fourth day totalling £20.3m across all currencies, showing a 35 per cent increase over the same day last year. However, the most money was spent on the first day of the meeting, totalling £21.9m across all currencies. The largest value of a single transaction in GBP was £98,000 while the average amount customers topped up their betting ‘wallet’ was £36 over all currencies.

GeoComply finds new deal

ottoInteractive, the next generation mobile lottery games platform for the reg-

ulated market, has selected GeoComply USAas its geolocation solution provider. Brian Ward, CEO of LottoInteractive, said: “We are very pleased to be the first Lottery platform to have secured the services of GeoComply in the development of an integrated solution to ensure both compliance and the commercial success of our customers.” Anna Sainsbury, CEO of GeoComply USA, added: “We are really excited that LottoInteractive chose us after a very thorough selection process. We look forward to working with them across all targeted jurisdictions in the coming months and years.”

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MARKETING Big names on TipTV ff-beat finance and sports on-line tipping show - www.tiptv.co.uk- is not only finding a niche audience of traders and punters but is also appealing to some big name guests too. Founder and presenter Nick ‘The Moose’ Batsford’s relaxed style has quickly created a cult following of City fans tuning in. Batsford commented: “Things are going better than we could’ve imagined - Kenny Sansom’s been in, Peter Reid is becoming a regular and on the City side David Buik and Zak Mir offer a real depth of knowledge to our core audience: those at the trading coalface.”

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TIPTV PRESENTER JEMMA KEYS WITH GUEST IAN WRIGHT

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BB115-p38-38-Comment_09/10 03/04/2014 12:50 Page 1

“We are going to book a holiday somewhere nice and I am going to buy Kath a new hoover.”

Comment

Paddy Power customer Dave Parsons after scooping £47,000 on a Lucky 31 on the last day of Cheltenham.

Engaged front line staff will help reduce disputes John Samuels of IBAS explains some of the pitfalls that bookmakers may face during this summer’s World Cup. he ongoing battle for the leisure pound between betting organisations is fought in the fields of marketing, customer service, concessions and competitive odds. With the modern day betting feast that the FIFA World Cup has become, not only tournament custom will be at stake but also up for grabs will be the capture of potential future customers who may want to bet on all manner of other markets. ‘Have the customer at the heart of all that we do, give them a good friendly service, provide them with an exciting experience, in a clean and comfortable environment and, especially for those who have a successful bet, the joy of trying to repeat the thrilling sensation of winning will be difficult to resist’, goes the mantra of senior executives and the marketing men from the leading bookmakers. In reality a vital component of executives’ enthusiastic approach will be the hope that their operational and front line ‘coal face’ staff, website data inputters

and telephone operators will dial into this culture and not just pay it lip service. I have no need to view or go into deep analysis of the IBAS disputes database to report that, even including horseracing, football betting is the cause of the highest area for dispute. Football betting, particularly with novice punters at large, is prone to errors that can lead to settling problems and every major event in football is followed by a flurry of phone calls and letters to the IBAS office asking for help and clarification. Football betting disputes generally fall into a few main categories as follows: The 90 minute rule (where bets are normally settled with extra time and penalties etc. not counting) Related Contingency (for example, a double on Rooney to score and England to win 1-0, where the single price for each event has been erroneously laid in a double etc) Goal-scorer or other match fact, such as bookings or corner counts (where the first announce-

ment of organisations such as the PA or Opta is used rather than any subsequent judgement by the news media or football organisation) Unclear match bet instructions (see example below). And international tournaments now bring a further dispute category, that of Golden Boot and Top Goalscorer confusion. Focusing first on unclear match instructions, picture the scene when the 18 year old or the ubiquitous novice punter, in trying to place their first ever bet, goes into the betting office, tells the manager that they ‘think England will go through to the next round and want to place £20 on the game that evening’ or similar words are used. The slip is written for the customer by the manager which reads “England £20 @3/1”. The price for England to win the game that evening was 3/1, and to go through to the next round was 6/4. Now imagine the scene at the counter the next day, after England have been successful and the excited customer wants paying his £80!

The manager, having allowed himself to leave the customer’s intention unclear on the slip, is left trying to explain that the bet is not a winner, it is still running, and settlement has to wait until it is seen if England do in fact proceed to the next round. Given the same scenario, in another branch, the manager will be trying to explain to the customer that he only has £50 to come as the bet is settled on England to qualify but the price was 6/4 not 3/1 as quoted. Whilst this commotion is going on, some other first time customers enter the shop, witness the argument, and no doubt walk promptly out again, never to return. So, the whole (completely avoidable) episode can leave some customers with a bad experience, and others wondering what sort of world they have entered into, determined not to return for more of the same. As ever, the secret to avoiding disputes is a combination of how the market is advertised and then operated in practice, and how clued up and efficient front line staff are.

We all work for GeorgeBet no his month has seen an age old brand get a reinvigoration as it aims to increase its revenues and extract more money from gambling as it ever has done before. The old style Treasury Turf Accountants has had a total rejig and is now known as GeorgeBet money generation for the rich and powerful. GeorgeBet has actually had a successful business model for some time and already brings in £1bn a year - which would no doubt be a tidy sum for most organisations, but GeorgeBet has the vision to extract even more. GeorgeBet has a plan to

andrew mccarron viewpoint

36 BettingBusinessInteractive • APRIL 2014

extract another 20 per cent out of the gaming machines under its remit. Normally this would send the media into paroxysms of fury, but it seems that this particular announcement has been warmly welcomed in some areas, despite the fact that GeorgeBet has hitherto been totally oblivious to the problem gambling prevention measures that the industry as a whole has been introducing to machine gaming. In fact, it could be argued that this uplift might just yet undermine the effectiveness of the new measures. But GeorgeBet has form in this area as its online

growth strategy is also taking an indelicate approach to social responsibility. After a long period, GeorgeBet appears to have pushed through a tweak to its terms and conditions which will enable it to exponentially increase its online revenues, at great disruption to the industry. However, these tweaks will also fundamentally destabilise the market and could be the catalyst for a thriving black market. Estimates suggest that the black market could grow from less than 1 per cent as it is now to a potential 30 per cent of the market. This would obviously expose vul-

nerable players to operators with far less stringent protection measures than is currently the case. And it’s not as if GeorgeBet disagrees with the figures or the theory - most of the figures come from its own number crunchers. At most other organisations, the Board would have vetoed such a move as irresponsible. But the current management appears to have full confidence in GeorgeBet’s strategy and is happier to see bulging coffers than an upturn in problem gambling, which the rest of the industry would have to pay for in the long run anyway, as

somehow GeorgeBet is exempt from donating to the Responsible Gambling Trust. But the beauty about GeorgeBet’s model is that there is no risk, at least for the management. The only gamble GeorgeBet takes is with other people’s jobs, other firms’ prospects and the protection of the vulnerable. In fact, GeorgeBet doesn’t even use the traditional betting model. It’s more of a super-affiliate in the same bracket as Oddschecker and bettingexpert. In exchange for letting operators take bets from UK citizens, GeorgeBet has created a deal which sees it

ACTION IMAGES / JOHN SIBLEY LIVEPIC

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Forthcoming studies may steer EU policy on sports betting ESSA secretary general Khalid Ali warns the industry to keep an eye on the events unfolding in Europe. he European Commission’s position on sports betting may become clearer over the coming months as a number of studies, conducted on behalf of the institution, are completed and the Commission importantly determines its next steps. Betting policy is an issue where Member States, as with wider gambling policy, are particularly protective of national law and the principle of subsidiarity. However, the Commission has been increasingly drawn into this issue, notably in relation to the impact on the sports sector; the Treaty of Lisbon extended the Commission’s remit to cover the integrity of sportspeople, thereby incorporating betting related match-fixing, and as far back as the organisation’s White Paper on Sport in 2007 it outlined concerns regarding future income for sport from gambling related activities in an ever changing legal and technological environment. That position, and the need to ensure the sustainable funding of sport with gambling highlighted as a key area, was reiterated in the Commission’s Communication entitled ‘Developing the European Dimension in Sport’ adopted in January 2011. The organisation subsequently tendered for a study on sports organisers’ rights in the EU that will “analyse the nature and scope of sports organisers’ rights” and “examine the possibility of establishing licensing practices beyond the media field, notably in the area of gambling and betting”. The report was expected last year but has been beset by problems and there was even a suggestion that it might not be published. However, it is currently undergoing

WHEN IS AN ENGLAND WIN NOT AN ENGLAND WIN?

interdepartmental consideration at the Commission before publication in the very near future. Given the pressure from sports bodies over the last decade or so, and the sports betting right adopted by the French, there will be much interest in the study’s conclusions and recommendations, and any subsequent actions by the Commission or Member States. There are clearly both potential dangers and benefits for our sector depending on the results of that study - it could make or break the sports betting right argument, or take us nowhere new given the EU case law that already exists favouring our

sector. However, it appears to be part of a growing trend for the Commission to engage in this area and bookmakers should be aware that the institution has also recently tendered for two other betting related studies as well as expanding its positive investment in preventative activities around match-fixing. The two new studies relate to the Commission’s plan to adopt a Recommendation on best practices in the prevention and combatting of betting-related matchfixing in 2014, which should facilitate cross-border and cross-sector cooperation between sport bodies, betting operators and regulators. The studies consequently focus on: 1) the sharing of information and reporting of suspicious betting activity across the relevant stakeholders; and 2) risk assessment and management of conflict of interest provisions. ESSA, as the regulated betting industry’s integrity body, has been actively engaging with the contractors that are leading these two new studies on behalf of the Commission and the feedback from those meetings has so far been encouraging. We also hosted the researchers first study trip to demonstrate how our members sophisticated integrity systems work. An associated questionnaire has gone out to some ESSA members to further assist in the completion of their report. At this stage, we remain positive regarding the studies’ findings expected later this year, but as with the forthcoming sports’ right study, the outcome of these deliberations could potentially have an important impact on operators’ betting businesses and future working practices within the framework of the European Union.

et now take over 50 per cent of all profits. In a way, everyone in the gambling industry now works for GeorgeBet. We should get cards made up. Of course there is the state aid question. With a monopoly in its field, GeorgeBet’s actions could be viewed negatively by the European Parliament, especially with its online strategy of using point of consumption licensing to raise revenues rather than ensuring the highest player protection standards. But the government’s position is as long as the gambling industry is providing state with aid, anything else doesn’t matter. BettingBusinessInteractive • APRIL 2014 37

BB115-p38-38-Comment_09/10 03/04/2014 12:47 Page 3

Comment

“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” Noble prize winning American economist Paul Samuelson (1915-2009)

Keep a clear head and keep betting out of pubs The Gambling Commission’s head of regional compliance and enforcement, Mike Williams, says bookmakers must avoid being drawn into unlawful pub betting. CHRIS CHRISTIE’S ESTIMATE OF A US$1BN ONLINE GAMING MARKET IN NEW JERSEY IS CURRENTLY WAY OFF THE MARK

March Madness opens the eyes to betting potential Marc Pedersen, sales director at affiliate bettingexpert, discusses the insights of the developing American gaming market provided by a trip to the iGaming North America show in Las Vegas last month. osting the iGaming North America show during March Madness was a very smart move. The sheer enthusiasm for basketball during this period really opens the eyes from a European-perspective. There is a huge sports betting potential during this period which seems largely untapped. William Hill is the only European operator who appears to be making a move in tapping into the Nevada potential with its acquisitions of Brandywine, AWI and Cal Neva Sports Book Division way back in 2011. The fact that it now has a 40 per cent market share of the state’s sportsbetting market means it is supremely positioned if online sportsbooks are ever permitted. New Jersey Governor Chris Christie will need his state to be able to offer online betting if the market is ever to reach the US$1bn level he predicted when initially regulated online gaming. Currently the market looks to be around $125m in size, way below Christie’s estimates, but there is still time in what is a fledgling service. It doesn’t help that there are still such severe issues with payments currently only 20-25 per cent of visa transactions are approved in New Jersey which is a huge disincentive

38 BettingBusinessInteractive • APRIL 2014

to any potential gaming customer. It is a surprise that the operators have managed to make as much as they have. However, I suspect than when people realise that it is now legal to gamble online and the payment and geolocation issues that have plagued the opening of the market are sorted - then we might see the market reach around $400-500m market. Add in sports betting and you might actually reach Christie’s magic billion. There are other advantages to the online sector as well. Igaming Capital’s Melissa Blau suggested that online casino does not canibalise the land-based casinos, but instead seems to have a very positive effect as a reactivation platform for idle offline casino visitors. Certainly the Tropicana is of that feeling and has seen an uplift in numbers. There could also be a virtuous circle using social gaming, as there is huge potential for conversion of players to online gaming, and then, by extension, to land-based gaming. Cost Per Acquisition for social gaming players is only around $2-3 and the estimates are that 10 per cent are convertible to real money gaming. Perhaps the big US casino operators will be kicking themselves

for not opening up to the opportunity of online gaming sooner. Maybe, just maybe, it might be enough to persuade Las Vegas Sands’ Sheldon Adleson to stop bankrolling an anti-online gaming lobbying campaign. Despite Adelson’s opposition, there is lots of media coverage about which will be the next state to allow online gaming. However, most of the talk seems to be surrounding just one product - online poker. Obviously most of the country isn’t yet at the position to have a progressive debate on the merits of online sportsbooks, given the extensive ban on betting across many states via the Wire Act, but I don’t think believe that many realise the revenue potential in casino. Many states are only focusing on poker - which raises a couple of issues. First up is that despite what most states think, they won’t be able to go it alone for liquidity (although cross-border agreements are starting to emerge), which makes casino an obvious alternative. Secondly, they haven’t really taken any notice of how poker has developed in Europe. While poker is very much an American heritage game, it seems a little foolish to ignore the problems that the product might come up against.

he Commission has worked consistently with licensing authorities and the police to warn bookmakers, publicans and club officials that commercial betting is not allowed in pubs and clubs. Many calls alleging illegal pub betting come via the Commission’s confidential intelligence reporting line (0121) 230 6655. Once a report is received the Commission has a tried and tested approach to addressing rogue operators with the support of local licensing authorities. Licensed bookmakers are often well placed to identify a problem and should not hesitate to pass details to the Commission or their local authority. In most cases, once landlords are reminded of the law by their local licensing authority they quickly intervene to take commercial betting off their premises. In more than a hundred cases this proportionate approach has quickly and cost-effectively put things right. If a problem persists then the Commission supports that local work by taking regulatory action against any licensed operator involved and on occasion a criminal case has been brought. Last year a licensed bookmaker operating in West Wales was fined £8,000 by the Commission and in Worcester three men were fined by magistrates following a multiagency investigation.

Every licensed bookmaker should understand the basics on pub betting. Help is at hand in an easy to read quick guide to the law called ‘Facilitating betting in pubs and clubs is illegal’. This can be downloaded in a printer-friendly format from the www.gamblingcommission.gov.uk website. Some of the key points it makes are: No commercial betting no commercial betting at all, regardless of the level of stakes, is allowed in pubs and clubs. Those who provide commercial pub betting, whether bookmakers, publicans, or club officials – risk being found guilty of providing illegal facilities for gambling. No agents in pubs - bookmakers cannot legally place an agent in the pub or club to take bets through what have been referred to locally as ‘pub accounts’ or ‘club accounts’ where a single contact facilitates the betting with the bookmaker by collecting stakes and paying out of any returns. Be vigilant in policing ‘pub accounts’ - telephone bets to bookmakers from pubs are only permitted where each individual customer has an individual account. Where a bookmaker suspects an individual account is in reality being used to route bets for a number of pub customers they should close the account and inform the Commission.

PRESENTS…

WHO ARE WE? The Sports Betting Community (SBC) is a news, events and consultancy organisation which boasts a network of almost 5,000 sports betting professionals through four years of international networking events.

WHAT DO WE DO? We provide news and resources at SBCnews.co.uk and industry events in Europe and Asia, such as the Betting on Football Conference on 8 May at Stamford Bridge. We also provide consultancy services to ﬁrms targeting the sports betting industry.

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BB115-p40-43-Business_09/10 03/04/2014 12:38 Page 1

Business Sportech’s transatlantic focus paying off

BUSINESSBRIEFS DEBT DEALING

Gala Coral looks to be shaping up to change its organisation, probably through the divestment of its Gala bingo halls although other options have been left open, but needs a little wriggle room on the balance sheet before it is able to carry anything through. A statement from the firm, released last month, read: “Following consultation with key lenders, Gala Coral Group is seeking formal approval for certain amendments under its Senior Facilities Agreement, with consent expected by early April. The proposed amendments will provide additional flexibility for the business to facilitate a range of potential future sale and other strategic options.”

With so much growth for its US operations, it is hardly surprisingly that Sportech’s business is taking on an American accent. RACING

portech has undergone another transformational year, with the company’s US-based businesses now accounting for 60 per cent of group revenues. While group revenue and EBITDA was largely flat at £110.3m and £26.0m respectively, Sportech Racing and Digital saw a 40 per cent increase in earnings compared to a 7 per cent drop for the Football Pools. Chief executive Ian Penrose said: “The group has delivered a good set of results in a transformational year. We have strengthened the management team and Board, invested cash of £22m in the Group and completed a number of corporate transactions to increase our focus and operational capabilities.” Penrose was particularly pleased with the strong profit growth in the US, driven primarily by the technological investment in the core Racing and Digital business. He explained: “Since the turn of the year, we have launched Connecticut’s only legal website for betting on horseracing and augmented our retail estate by opening a 10,000 sq ft innovative sports bar and betting venue in Connecticut. The first in a chain of similar venues is to be opened in California later this year. “We remain well positioned for future growth in the US market and, with the strong cash flows from our Football Pools business, we have entered 2014 with confidence.”

The group said that its focus continues to be building a ‘multi-platform (retail, telephone and online) dynamic gaming business in the US’. Initially focusing on the legal and highly regulated gaming operations of horseracing and greyhounds, Sportech will seek to take advantage of organic business development opportunities and plans to use this ‘strong and expanding platform’ to position the Group for broader-based gaming opportunities as regulation evolves over the coming years. During 2013, Sportech continued to invest in its operations in order to leverage what Penrose called its ‘unique exclusive licensing position’ in Connecticut, with the betting website and sports bar. Penrose added: “The investment is aimed at increasing the distribution of racing, and widening the exposure and thrill of betting on horseracing to a sport-based audience.” The group has also obtained a licence in California to develop a chain of branded betting venues, restaurants and sports bars. The first venue will open in Norco, near Los Angeles, in the summer of 2014. During the year, the company signed joint ventures with NYX Gaming and Picklive US to focus on the emerging iGaming and significant fantasy sports markets and also acquired Data Tote for an initial consideration of £3.1m in

IAN PENROSE: ‘WE REMAIN WELL POSITIONED FOR FUTURE GROWTH IN THE US’

IG GROUP SPREADING

order to strengthen its European tote betting operations. The Group has also made a number of organisational changes, establishing three key divisions. Sportech Racing and Digital, managed by Andrew Gaughan, which combines the former Sportech Racing, Sportech Interactive Products and Services and eBet, in order to create one cohesive, larger division to provide all terrestrial, online and mobile betting technology products to customers. The Sportech Venues business, operating Connecticut’s exclusive betting operations in retail venues is led by Ted Taylor, with the UK Football Pools business led by Conleth Byrne. As a consequence of the increase in the group’s activities overseas and the reduction of activity in the UK following the sale of the lossmaking e-Gaming activity, Ian Hogg has decided to leave the group by the end of the year as he does not wish to increase his duties overseas.

ANALYSIS Sportech has hardly been letting the grass grow underneath it in the US so far this year, especially with the new development in Connecticut. But it’s not all been plain sailing. Ian Penrose explained: “We continue to make progress in California, and our new technology developments are being well received by customers. However, the severe snow storms and extreme cold weather across the east coast of the US have resulted in the closure of our retail venues on several days this year, and there have been 170 race cancellations to date in 2014 compared to 54 in 2013. Whilst this has impacted on the performance of our US operations, the Board remains confident in the group’s prospects for the full year ahead.”

GamCrowd secures access to £5m fund INVESTMENT

amCrowd, the crowdfunding and crowdsourcing company which focuses on the gambling industry, has signed an agreement with Centurion Solutions to invest a fund of up to £5m into startups on the GamCrowd platform. Centurion represents some of the world’s largest professional sports and racing trading firms and this fund will be made up from funds provided by both Centurion and its clients. Centurion will take advantage of the crowdsourcing platform that GamCrowd has built to assist with ‘in country’ software and product testing as it helps its clients expand into new markets. Centurion has also negotiated

40 BettingBusinessInteractive • APRIL 2014

ups that are looking for funding and CEO Chris North was delighted to have signed his first investment fund. “I am very pleased to be working with Centurion again; they bring massive expertise as well as capital. That is what crowdfunding is all about; they would add great value as shareholders of any of our start-ups, particularly if they need CENTURION PREVIOUSLY WORKED WITH technical or betting expertise.” CHRIS NORTH’S FOX POKER CLUB Dennis Verrios of Centurion explained the rationale for the certain rights to take an invest- fund: “We are keen to help our ment in GamCrowd as and when clients take advantage of the the company seeks an initial current wave of innovation that fundraising. the gambling industry is experiGamCrowd has recently encing. We had previously invested announced that it has over 25 start- in Fox Poker Club which Chris

founded and ran, and we were delighted with the returns from that investment. “We are keen to invest in GamCrowd if and when the company is looking for money, but we are also excited to invest in some of the most innovative start-ups in the gambling industry. We intend to build a portfolio which will hopefully include a few winners.” GamCrowd was launched earlier this year by experienced gambling industry entrepreneurs that have a successful track record with various start-ups and who understand the challenges involved with starting a business in the gambling industry.

Spread betting firm IG Group said that, following another good quarter and assuming that financial market conditions continue to be supportive in the fourth quarter, it is on track to deliver revenue ahead of the prior year and in line with full year expectations for FY14. IG’s longterm aim is to become the default choice for active traders to access the financial markets, so the company is investing over the next few years in a range of initiatives to broaden the business offering, extend its technology lead, and to expand further geographically. The group continues to make good progress on these initiatives, which it believes will generate long-term sustainable growth. GROWTH FOR FORTUNA

Radim Haluza, CEO of European bookmaker Fortuna Entertainment Group, has said he is ‘very pleased’ with Fortuna’s sales performance driven by a strong growth in online sports betting in all markets. He commented: “Fortuna delivered top line turnover of over 567m euro (£469m), which is 21.2 per cent ahead of the last year and EBITDA of 26.7m euro (£22.1m), 20.8 per cent more than in 2012. Our key strategy to focus on internet and mobile betting and offer broad LIVE content to our clients has paid off. We hope that we will be able to take advantage of this year s major sporting events such as the Winter Olympics and World Cup in Brazil in order to retain a strong momentum also in 2014.”

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Business PATRICK KENNEDY: ‘INVESTMENT IN MOBILE WILL CONTINUE’

Although it has big taxation changes coming in its major markets, Paddy Power is confident about the future.

appointments

he Rational Group has appointed Tdirector Dominic Mansour as managing of Full Tilt Poker, responsible

Paddy Power brushes off sports results for record profits IRELAND

for the day-to-day operations of the Full Tilt brand and business. Mansour has experience as CEO of the Health Lottery and has held senior positions at GTech G2, NetPlay TV and Globalcom/WMC UK. “Dominic’s experience aligns very well with our plans for Full Tilt,” said Rational Group chief operating officer Rafi Ashkenazi. “He has strong commercial experience, a great marketing background, and first-class product knowledge across poker, casino and sportsbook. We’re very happy to have him onboard.” “Rational Group has big plans for Full Tilt and I’m excited to lead the charge,” said Mansour. DOMINIC MANSOUR

addy Power chief executive Patrick Kennedy has hailed 2013 as ‘another good year’ with the bookmaker experiencing growth in every division and particularly strong growth in online which now delivers over three quarters of Group profits. Net revenues of 745m euro (£616m) were up 17 per cent and a record profit before tax figure of 141m euro (£117m) was also up by 5 per cent, despite ‘significantly adverse’ sports results in the second half of last year. Kennedy said: “We continue to build out our industry leading penetration in mobile sports betting and eGaming: mobile net revenue powered ahead by 73 per cent in 2013 and now accounts for over half of total online revenue. Investment in mobile will continue to be significant in order to take advantage of our market leading position and avail of its exceptional growth potential.” Chairman Nigel Northridge commented: “Profit growth in 2013 was achieved notwithstanding a 10m euro (£8.3m) headwind from new product fees and taxes, currency depreciation and the first full year of investment in Italy. The second half of 2013 also saw an excep-

tional run of punter-friendly sports results. The impact of these results prevented us achieving double-digit earnings growth last year and resulted in a sportsbook gross win percentage of 9.7 per cent. This compares to a rate of over 10 per cent attained in the first half of 2013, and also anticipated in the second half, given the more attractive product and customer mix we have achieved since 2012.” Paddy Power grew online profits by 10 per cent, in constant currency, to 108m euro (£89.3m) last year, despite the impact of adverse sports results and the first full year of investment in its Italian business. The scale of the online operation continues to increase significantly, all via organic growth and driven from legal, regulated markets. Last year, net revenue grew by 21 per cent in constant currency to 473m euro (£391m) and active customers increased by 19 per cent to 1.9m, all off a much increased base. Over the last three years, annual growth has averaged 25 per cent for net revenue in constant currency and 33 per cent for active customers. In Ireland and the UK, the new online licence and tax regimes on a ‘point of consumption’ basis have been well flagged and Paddy Power

expects it to increase costs from later this year. However Northridge wants to get value for money: “We continue to urge the authorities in both jurisdictions to implement as wide a range of enforcement mechanisms as possible, so that their player protection and tax collection objectives are not frustrated and jobs put at risk by the emergence of non-compliant competing operators.” Last year, the average EBITDA per shop for the 139 mature units the bookmaker opened between 2008 and 2011 was 175,000 euro (£145,000) as compared to a cost per unit of 324,000 euro (£268,000). The firm also accelerated its rate of investment with a record 67 new shops opened (and a further 15 new units already trading this year). The firm expressed a desire to open at least 40 shops annually in the UK, although this aim was stated before the FOBT tax increase, and Northridge is keen for no obstacles to be placed in the bookmaker’s way: “There has also been debate in the UK regarding the ‘clustering’ of betting shops. We believe related proposals to change planning or licensing legislation to be anticompetitive and could be subject to legal challenge.”

ANALYSIS Despite all the self-inflicted travails caused by its marketing campaigns, operationally Paddy Power looks in fine fettle at the start of 2014 - and there is the bumper customer acquisition bonanza this summer of the World Cup. Patrick Kennedy commented: “This year has started well from a turnover point of view with sportsbook stakes up 16 per cent, although sports results have been mixed. We’re strongly positioned to benefit from the growth ‘hot spots’ in our markets and are investing accordingly. As a consequence, we look forward to 2014 and beyond with confidence.” 42 BettingBusinessInteractive • APRIL 2014

he Gambling Commission has Tfigures recruited two senior industry ahead of the implementation of the changes proposed in the Gambling (Licensing and Advertising) Bill. Ladbrokes customer services director Sue Harley and Roger Parkes, former director of group compliance at Betfair, will both work with the Commission in coming months and will provide expertise and insight to support the Commission’s work in regulating remote gambling operators based offshore. Sue Harley joins the Commission in early April on a fixed term contract. As an executive director, she will take on responsibility for a broad policy and management portfolio. Roger Parkes is already working with the Commission, providing additional experience and input into the Commission’s preparations for implementation of the Bill. These arrangements supplement the expertise in the Commission’s existing cross-functional teams in areas such as enforcement, legal, intelligence gathering and player protection. amCrowd, the crowdfunding and G crowdsourcing company, has appointed former Ladbrokes and Scientific Games veteran Andrew Bowen as its CFO. Bowen was the first finance director of Ladbrokes eGaming, starting there in 1995 before moving to Global Draw in 2008, and being promoted to group finance director of SG Gaming until 2012. Since then Bowen has been involved as an investor and finance executive in a number of startups. He commented: “My experience with some leading edge start-ups ANDREW BOWEN has shown me

that there is a massive need for a crowdfunding platform for our industry and I can’t wait to start making an impact.” ritish slots and table games Bmoved provider Realistic Games has to strengthen its commercial team with the appointment of Abid Riaz. The former Ladbrokes and Betsson Head of VIP will manage the expanding supplier’s operation in Gibraltar after they were granted a B2B Remote Gambling Licence. Commercial director Andy Harris said: “The new office with Abid in charge will be a major factor in attracting new clients with our aim, as ever, to acquire the very best. He is commercially-astute as well as being customer-focussed, and brings with him some great contacts and experience from around the world. I’ve no doubt he is a great addition.” ob Gorle has joined social casino R games provider Plumbee as its new finance director, where he will be primarily responsible for leading Plumbee’s commercial strategy as the company continues to experience rapid growth within the social casino space, across games and platforms. Gorle is a Yahoo! Veteran of seven years and was most recently CFO and board member of mobile and social games group Zattikka. This appointment allows Gerald Tan, one of the Plumbee co-founders to step into the Chief Product Officer role, with a renewed focus on the company’s products and roadmap. Gorle commented: “I’m very excited to join the Plumbee leadership team. After the recent $14m Series B round led by Endemol, the company is well positioned to challenge the current market leaders.” ROB GORLE

ffiliate Republik has appointed A Hannes Eriksson to play a key role within the acquisition team. Eriksson has more than four years’ experience within online marketing and is tasked with managing and implementing a successful digital marketing strategy as well as optimising the company’s various performance channels. Eriksson has previously worked for Malta based online operator RedBet, managing affiliate partners and paid media. Adnan Maslo, program director at Affiliate Republik, commented: “Hannes has impressively established his presence and reputation in the affiliate marketing circles and has the analytical ability to manage and improve ongoing campaign performance. Hannes matches our team’s spirit and attitude and will undoubtedly help strengthen our relationships with our Scandinavian partners.”

BB115-p40-43-Business_09/10 03/04/2014 12:40 Page 3

Social $7bn Candy Crush Saga developer King has raised US$500m on the New York Stock Exchange via a flotation which values the company at over $7bn. King said that it now plans to use the money raised for working capital and other general corporate purposes, which ‘may include’ acquisitions.

Retail the ‘cornerstone’ of William Hill’s business While most people get excited by the opportunities provided by online markets, William Hill CEO Ralph Topping still has an eye for the betting shop. RETAIL

illiam Hill’s retail business provided 60 per cent of the company’s £1.49bn net revenues in 2013, with retail net revenue 10 per cent higher, and 58 per cent of the firm’s £335m operating profit, although the £196.3m delivered by retail was £13.9m down on the prior year. The overall performance of retail has pleased CEO Ralph Topping, who said: “Retail and online are complementary businesses and retail has held up well when the rise of the internet and mobile has been huge. And we’ve done that against the backdrop of a very challenging economic period.” OTC net revenue was up 2 per cent, benefiting from

a strong gross win margin of 19.4 per cent (compared to 2012’s figure of 18.3 per cent). The main driver of margin growth was improved results from UK horseracing and football. However, amounts wagered was 3 per cent lower with the first half saw the brunt of weatherrelated fixture cancellations in Q1 and a weaker football calendar in Q2. Ironically, the excellent weather in July also impacted business in the third quarter. Gaming machine net revenue increased by 20 per cent in the period, which actually translates to an increase of 1 per cent after factoring in the effect of the new Machine Games

Duty (MGD) introduced in 2013. The performance was driven by a combination of a circa 2 per cent decline in gross win per machine per week from £914 to £897 and an increase in the average number of gaming machines by 3 per cent to 9,431, comprising a 2 per cent increase in machine density to 3.93 per shop and a 1 per cent increase in the average number of shops. The firm explained: “We continue to invest in expanding and enhancing the estate. We increased the Retail estate by a net 40 shops to 2,432, opening 59 new licences and closing 19 during the period. Our target continues to be to increase the number of

shops in the estate by a net c1 per cent per annum. A further 14 shops were resited. There was an average of 2,401 shops in the period, around 1 per cent higher than the prior year.” Cost of sales and operating costs were 51 per cent and 6 per cent higher, respectively. Both of these were impacted by the change to MGD from VAT and Amusement Machine

Licence Duty in February. Operating costs included c£3.5m of additional repair and maintenance costs, higher content costs and higher staff costs from increased shop opening hours and the introduction of pension auto-enrolment. This was partially mitigated by savings in Retail and Group staff incentives. Topping added: “Retail is the cornerstone of our busi-

ness. It’s a more complex business than many believe, and I think my management team don’t always get the credit they deserve. We’re still expanding; we’ve still got new licenses; we’ve got 59 openers in 2013. More importantly, we continue to exceed our anticipated return hurdles on our new opening portfolio. So we know we’re making the right decisions.”

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BettingBusinessInteractive • APRIL 2014 43

BB115-p44-45-Agenda_09/10 03/04/2014 12:31 Page 1

Agenda LISTINGS MONTHLY BRIEFING

APRIL 8-9 Igaming Forum, Grand Hotel, Stockholm 23-25 IMGL 2014 Spring Conference, Manchester Grand Hyatt, San Diego, California 24-25 The Next Web Conference Europe, Amsterdam

ACTION IMAGES / CARL RECINE

Ante Post: What the bookies say

April has a huge number of key sporting events that bookmakers will be hoping drives custom to their doors, call centres, websites and mobile apps. ootball’s Champions League is one of the main attractions of a busy April of sport. Holders Bayern Munich have already retained their Bundesliga title and they’ll be hoping to book their place in May’s final in Lisbon. There’s plenty of domestic interest too with Manchester City, Chelsea and Liverpool battling it out in England’s Premier League, and Barcelona, Atletico Madrid and Real Madrid vying for top spot in Spain. Golf’s first major of 2014 gets underway on 10 April with Adam Scott defending his Masters crown at Augusta. Horse racing’s Grand National takes place at Aintree on April 5th with the bookies hoping for another long-priced winner after 66-1 shot Auroras Encore’s success last year. King of Clay, Rafa Nadal, will bid to reclaim his Monte

Carlo Masters title from Novak Djokovic this month. And Ronnie O’Sullivan starts the defence of his world snooker title in Sheffield on April 19th. RORY JIWANI Head of PR Stan James

The month of April can only mean one thing and it doesn’t take much detective work to establish that the Grand National will be the key event. The National remains the biggest single one day betting event for us and it comes as the highlight of the year (providing we get a result!) for many of our staff - the buzz in the head office and retail estate is always second to none. The status of the race as the general public’s annual flutter doesn’t seem to be showing any sign of weakening at all and it could well one of

our busiest races to date in terms of turnover and slip count. Teaforthree, On His Own and Long Run have been the popular horses ante-post and we expect Teaforthree to be the big public horse on the day. ALEX DONOHUE Public Relations Ladbrokes

complement a comprehensive fixed odds service including accumulators, multiples and forecast and tricast betting. Already we’ve seen plenty of punters playing on our Grand National spread specials, which include; Number of Finishers 16.5 18, Winning Distance 5.75 - 6.75, 2nd to 3rd Distance 7.5 - 9, 1st to Last Distance 140 – 150, SP of Winner 20 - 22 and 1st Fence Casualties x 10 15 – 18 to name but a few. As always the concept with the spreads is simple; buy if you think the eventual outcome will be higher than our traders’ spread or sell if you think it will be lower. But remember, get it wrong and you could end up losing more than your initial stake!

April is a huge month for spread betters and fixed odds betters with the Grand National topping the list, but also with the Champions League quarter-finals and semifinals, the Masters from Augusta and the ongoing T20 Cricket World Cup. The Grand National takes centre stage at Aintree and when it comes to betting on horse racing, ANDY MACKENZIE Spreadex takes some beating Marketing communications manager thanks to a huge array of spreads to Spreadex

Tokyo goes on red alert for Japan Gaming Congress larion Events, organisers of the first Japan Gaming Congress, which takes place in Tokyo 14-16 May, has described the line-up of speakers as representing the most influential gathering of experts ever assembled to discuss the development of gaming in Japan. Support for the inaugural Japan Gaming Congress continues to gather pace with Clarion confirming that so far a total of 30

speakers drawn from the worlds of gaming, academia, social policy, the law and finance will be providing their unique insight on gaming in Japan. Clarion’s Rory Credland, senior producer responsible for Japan Gaming Congress, said: “Based on our experience gained delivering world class gaming events such as ICE, GiGse, EiG and the Brasilian Gaming Congress, which we launched in 2013, we

44 BettingBusinessInteractive • APRIL 2014

are extremely confident and excited at how the first Japan Gaming Congress is taking shape. “Our speakers are all experts in their respective fields and qualified to deliver unique perspectives across all of the issues and from every angle; major blue chip companies form a portfolio of elite commercial sponsors supporting Japan Gaming Congress and the response from paying del-

egates has been immense with representatives from the UK, Australia, Taiwan, Macau, Europe, the US and of course Japan already booked. All of this is set against the most opportune timing possible coinciding with the DIET vote on the bill. As one of the Congress sponsors, Tom Nieman, vice president of global marketing at JCM said: “It’s going to be an exciting time in May and Clarion’s timing for the

Congress could be perfect!” The Congress will focus on key issues such as the implementation of the IR model in Japan, local and international collaboration, the political landscape and legislative process, licensing procedures for gaming manufacturers and the potential impact from other emerging jurisdictions on the viability and sustainability of IRs in Japan.

MAY 8 Betting on Football Conference, Stamford Bridge 8 Betting on Football Awards, Fulham 14-16 Japan Gaming Congress, Tokyo 15 mGaming Summit 2014, Dexter House, London 15-16 Online Bingo Summit, Park Plaza Victoria, London 15 3rd Annual mGaming Awards, Dickens Inn, St Katherine Dock, London 20-22 G2E Asia, The Venetian Macao 20 ‘Next steps for gambling policy: regulation, taxation and new opportunities’, Central London JUNE 4-5 Russian Gaming Week, Sokolniki, Moscow 12-13 Social Casino Summit USA, Bellagio, Las Vegas 12-13 Online Gambling Summit USA, Bellagio, Las Vegas 22-25 Sports Betting Seminar, Blue Tree Premium Fortaleza, Brazil 23-25 Canadian Gaming Summit, Vancouver Convention Centre

THE CANADIAN GAMING SUMMIT IS AT THE VANCOUVER CONVENTION CENTRE

24-27 Igaming SuperShow, Amsterdam RAI JULY 8-10 World Gaming Executive Summit, The W Hotel, Barcelona 14-16 GiGse 2014, Hyatt Regency, San Francisco 14-16 Social Casino Summit at GiGse 2014, Hyatt Regency, San Francisco AUGUST 12-14 Australasian Gaming Expo 2014, Sydney Exhibition Centre, Glebe Island 31- 5 September European Lottery University, European Lotteries Association

BB115-p44-45-Agenda_09/10 03/04/2014 12:32 Page 2

GameAccount to debut at G2E Asia GameAccount Network, the internet gaming pioneer, will be taking its success story to Asia when it makes its first appearance at May’s G2E event in Macau. The company will be using its’ first appearance at the show to introduce its enterprise-level B2B gaming software and online gaming content to what is a key regional market. Commercial director Daniel Lindsay said: “We are making our first appearance at G2E Asia after a highly suc-

cessful showing at ICE in February where we met with a significant number of operators from the region. They were particularly interested in our partnership with Foxwoods Resort Casino with whom we launched the first ever Simulated Gaming online casino experience in the United States. Asia offers massive potential and we look forward to extending the GameAccount Network footprint into this important market.”

Nominations open for Betting on Football Awards

THE BETTING ON FOOTBALL AWARDS IS BEING HELD AT THE OCTOBERFEST PUB ON FULHAM BROADWAY

The unusual awards evening being held to complement the inaugural Betting on Football conference at Stamford Bridge is looking for nominations. EVENT

ominations are now open for the Betting on Football Awards, the unique awards ceremony complementing the one-day Betting on Football conference at Stamford Bridge on 8 May. The awards evening is being held at the Octoberfest Pub on Fulham Broadway and offers a different perspective to the regular types of awards nights. Only four awards will be up for grabs, meaning the rest of the evening can be spent sampling the extensive German beer selection and enjoying the German brass band. Four football betting awards are up for grabs at the event, Best Football Marketing Campaign (spon-

sored by bettingexpert), Best Football Innovation, Best Football Affiliate (sponsored by Matchbook) and Best Football Bookmaker (sponsored by BetConstruct). Nominations are being taken at www.sbcnews.co.uk/bettingonfootball/awards Delegates attending The Betting on Football conference earlier in the day will get free entry to the awards evening. Event organiser Andrew McCarron commented: “We’ve had a great response to our aims of putting on an event specific to the betting industry and the continuing growth of football betting meant that the sport was an obvious focus – especially with the

World Cup coming up this summer. Anyone with any interest in betting around football should find the Betting on Football Conference useful for their business, as it will provide insight at several different levels. Among the topics discussed will be: • How the new point of consumption licensing laws will affect advertising & promotions • The latest trends around ‘cashing out’ • The best use of social media around football • How to attract football traffic • Brand protection and what to be wary of • Data analysis

• Protecting against corruption David Clifton of Clifton Davies will open the conference discussing how the new licensing laws will affect sponsorship in the UK. Other speakers include Sports Bureau director Honor Hancock, consultant Aideen Shortt, McBookie co-founder Paul Petrie, chief product Officer at Tipico Jesper Ramskov Jenson, Camberton Communications founder Mark Davies, Sport for Business CEO Rob Hartnett, Bettorlogic CEO Andrew Dagnall, Gaming Economics CEO Lee Richardson, Colossus Bets CEO Bernard Marantelli, Thomas Høgenhaven, chief

info@bit8.com

strategy officer at Bettingexpert and ESSA chairman Mike O’Kane. One session of particular interest to retail bookmakers will be the presentation by Rufus retail anthropology expert Ian Wright, who will be discussing how you can make a betting shop more football friendly and football stadia more betting friendly. Betting on Football and the Betting on Football Awards are being organised by SBC Events, the events arm of Sports Betting Community, which boasts one of the largest online networks of industry sports betting professionals. Sponsors of the

event include BetConstruct, Colossus Bets, Matchroom, Bettingexpert, Super Soccer Oddsfeed and Abelson Info. Tickets for the conference are £295 +VAT, but Betting Business interactive users can use the code BBi during checkout to receive a 1/3 off if they register and pay before 17 April. Register for the event at www.sbcnews.co.uk/ bettingonfootball BETTING ON FOOTBALL CONFERENCE 8 May Stamford Bridge London www.sbcnews.co.uk/ bettingonfootball

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BettingBusinessInteractive • APRIL 2014 45

BB115-p46-47-Analysis_09/10 03/04/2014 15:37 Page 1

Analysis

Downturn i of money b

ACTION IMAGES / JOHN SIBLEY LIVEPIC

The see-saw battle between Paddy Power and Bet365 to be viewed as the best value bookmaker for money-back offers is continuing.

TOP TEN GLOBAL POOLS 1 2 3 4 5 6 7 8 9 10

GBR - Colossus Bets - The £10,000,000 Colossus - E11,958,900 SWE - V75 -Kalmar- E11,420,215 ESP - La Quinella - E8,810,137 SWE/RUS - Stryktipset/Soccer13 - E3,670,551 GBR - Classic Pools - E3,587,670 GBR - Colossus Bets - Premier League Pick6 - E2,391,780 IRE - BetFred Jackpot Navan - E2,322,552 SWE - V86 - Solvalla - E2,276,751 GBR - Scoop6 - E1,624,227 GBR - BetFred Placepot Cheltenham - E1,549,832

Chart supplied by: Colossus Bets Calculated by biggest pools/guarantees over a week’s period during the month. One entry per bet type. Data for March

TOP TEN MONEYBACK OFFERS BY VALUE 1 2 3 4 5 6 7 8 9 10

Chart supplied by: Freebets.com . Data for February

TOP TEN FINANCIAL SPREAD MARKETS

TOP TEN SPORTS SPREAD MARKETS 1 2 3 4 5 6 7 8 9 10

International Cricket - New Zealand v India 2nd Test International Cricket - South Africa v Australia 2nd Test International Cricket - South Africa v Australia 1st Test International Cricket - New Zealand v India 1st Test Domestic Football - Man City v Chelsea (League) European Football - Man City v Barcelona Domestic Football - Man Utd v Fulham European Football - Arsenal v B Munich Domestic Football - Arsenal v Liverpool Domestic Football - Man City v Chelsea (FA Cup)

Chart supplied by: Spreadex. Calculated on volume of bets. Data for February

Paddy Power - Football: Moneyback if Hazard scores anytime Chelsea v Everton bet365 - Greyhounds: Sky Dogs 2/1 Paddy Power - Football: Moneyback if Rooney scores anytime Olymp v Man U Paddy Power - Football: Money Back if Eto'o scores anytime Man C v Chelsea Stan James - Football: Red Card Refund Arsenal v Man U Paddy Power - Golf: Player fails to win after leading thru 12 WGC Matchplay Stan James - Football: If Penalty Scored Arsenal v Liverpool Paddy Power - Football: Money Back if Suarez scores last Liverpool v Arsenal Paddy Power - Football: MoneyBack if Suarez scores first Arsenal v Liverpool Paddy Power - Darts: If any Premier League match ends as a draw

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 Spot, AUD/USD UK 100, Mar Gold, Daily Apr Spot, USD/JPY SPX 500, Mar

Chart supplied by: Spreadex. Calculated on volume of bets. Data for February

TOP TEN MONEYBACK OFFERS BY CHANCE 1 2 3 4 5 6 7 8 9 10

Coral - NFL: Money back if Broncos win Super Bowl Paddy Power - Football: Money back if Hazard scores anytime Chelsea v Everton Boylesports - Rugby: If Six Nations team leads at half time but fails to win Betfair - Football: Premier League no lose acca Stan James - Football: 2/1 Mobile Special Champions League bet365 - Greyhounds: Sky Dogs 2/1 Paddy Power - Football: Money back if Rooney scores anytime Olymp v Man U Betfair - Football: Cashback Extra Olymp v Man U Paddy Power - Football: Money Back if Eto’o scores anytime Man C v Chelsea Stan James - Football: Red Card Refund Arsenal v Man U

Chart supplied by: Freebets.com . Data for February

TOP TEN BOOKMAKERS FOR MONEYBACK OFFERS (WEB ONLY) 1 2 3 4 5 6 7 8 9 10

bet365 William Hill Paddy Power Stan James Betfair Betfred Winner Betvictor Ladbrokes 888sport

Chart supplied by: Freebets.com. Data for February

THE £10,000,000 COLOSSUS

ALL OTHER BETS ARE LOWER LEAGUE 46 BettingBusinessInteractive • APRIL 2014

et365 regained its mantle of Bookmaker of the Month in February’s analysis of Money Back offers on Freebets.com. The ongoing battle for Freebets.com’s Bookmaker of the Month continued to see-saw between the Stoke-based online betting site and Paddy Power, the winner of last month’s (Jan14) accolade. The two internet sportsbooks have shared the title for the last nine months with Paddy Power slightly ahead having taken the award on five occasions to Bet365’s four. The Bookmaker of the Month is determined by an algorithm which gives a cumulative rating for 19 participating bookmakers. February saw a sizeable downturn in the number of

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TOP TEN ONLINE SPORTSBOOK PERFORMANCE