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BUSH MARKETING: Wood you believe it - Paddy Power’s latest stunt has everyone up in arms
LICENSING: Find out the latest developments on the new point of consumption regime
SUSTAINABLE APPROACH: Has Betfair’s short term pain subsided as it pursues only licensed markets?
ESSENTIAL GUIDE 18
BETTING NEWS 12
BUSINESS 42
£5.20 (€8.30) • ISSUE:118 • JULY 2014 • www.betting-business.co.uk
Would-be match fixers jailed
The controversial point of consumption licensing regime looks set for a thorough examination in the law courts, but it could well already be in place by then.
CRIME
T THE GBGA IS PUSHING FOR A JUDICIAL REVIEW OF THE NEW GAMBLING LICENSING LAWS (© LEWIS CLARKE)
LICENSING
GBGA makes good on Judicial Review threat he Gibraltar Betting and Gaming Association (GBGA) has finally made its move against the UK’s planned point of consumption licensing regime by starting a procedure that could lead to a Judicial Review. The GBGA has written to both the government and the Gambling Commission informing them of plans to claim for a judicial review, arguing that the new laws not only ‘threatens the safety of consumers online’ but is unlawful under European Law. It breaches Article 56 of the European Treaty by being a ‘disproportionate and unjustified interference on the free movement of services. There are four key areas of objection laid out: There is no evidence that the current regime fails to protect consumers; The new regime is not capable
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hree men suspected of trying to manipulate the scorelines of football matches have been found guilty of conspiracy to commit bribery and received sentences totalling in excess of 11 years in prison. The jury at Birmingham Crown Court found that Chann Sankaran, a Singapore national, and Krishna Ganeshan, a UK national originally from Sri Lanka, were the central conspirators in the match fixing plot, and had recruited Michael Boateng, a player from Conference South team Whitehawk FC, to help them. A fourth man, Hakeem Adelakun, was acquitted. There will be a retrial in respect of a fifth man, on whom the jury was unable to reach a verdict. The Gambling Commission’s Sports Betting Intelligence Unit (SBIU) and the Football Association supported the National Crime Agency (NCA) during the investigation. Commission director of regulation Nick Tofiluk said: “We welcome the work of the NCA and we continue to work in partnership with law enforcement agencies, sport and betting operators to ensure that match fixers, whatever the sport, are identified and dealt with.” NCA branch commander Richard Warner said: “This is not sport as a football-loving nation recognises it. It is corruption and bribery linked to serious organised crime, and the NCA is determined to stop criminals benefiting from it.” In an unrelated case, New Zealand cricketer Lou Vincent has been banned from the sport after admitting match fixing. He manipulated results in a Twenty20 match between Lancashire and Durham in June 2008 and two fixtures played at Hove in August 2011, namely a Sussex v Lancashire Twenty20 match and a Sussex v Kent CB40 match.
of providing consumer protection as it is largely unenforceable; It will have negative unintended consequences which will outweigh the benefits; The suggested less onerous ‘Passporting Proposal’ has been rejected without reason; GBGA chief executive Peter Howitt argues that this new law, combined with planned tax changes, will drive consumers to the unregulated or poorly regulated market, and so ensure that a significant proportion of UK consumers will be unprotected when they play and bet with foreign operators. He said: “This is bad for UK consumers, bad for the regulated industry, bad for Gibraltar and is in breach of European law, but fantastic news for operators who choose to avoid proper regulation. “We know of no precedent where any regulator in any industry will be granted the role of
licensing and regulating operators all over the world in this way, threatening to criminalise companies and people who fail to submit to its regime. This is plainly unworkable. The likely impact of this legislation will be to drive UK consumers towards unregulated or poorly regulated operators, leaving them exposed to unnecessary risks. “This Act allows operators from 165 new jurisdictions to gain licences to operate and advertise in the UK and the Gambling Commission is supposed to regulate this industry with no extra-territorial information gathering or enforcement powers. Clearly that spells a new danger for British consumers.” Olswang partner Dan Tench added: “The government announced that this law was introduced with the express intention of addressing concerns it said it had about the protection
of consumers. The measures introduced through this Act are neither reasonable nor proportionate to achieving that goal and are likely to have adverse consequences for consumers. All this Act achieves is a wholly unjustified, disproportionate and discriminatory interference with the right to free movement of services, a right enshrined in European Law. For these reasons the government must reconsider this law or we shall have no option but to ask the courts to review it for them.” With the new licensing regime now due for implementation on 1 October, time is running short for the GBGA, but it is hopeful that by making its concerns heard along with the threat of Judicial Review might at least delay the implementation of the law. PASSPORTING Essential Guide 21
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News Barking’s plans to block Paddy Power fail in High Court PLANNING
addy Power has finally got the green light to open a new betting shop in Barking after the High Court rejected the local council’s attempts to get a decision by the Planning Inspector overturned. London Borough of Barking and Dagenham had already provided the bookmaker a premises licence for the property at its Faircross Parade, but refused to let it make a slight change to its planning class which would have allowed it to open a betting shop. The council claimed that the government inspector which overturned the Council’s decision on appeal failed to take into account the borough’s development plan policy aimed at ensuring a vibrant economy and attractive town centres. The High Court’s Mrs Justice Lang disagreed. PlanningResource reported the judges decision: “The inspector assessed the current evidence in relation to Faircross Parade and concluded there was no reason to suppose an unrestricted use could be likely to have an adverse effect on the viability and vitality of the centre. In reaching this conclusion she made a valid planning judgment which was sufficiently supported by evidence.” Lang also said that Faircross Parade was ‘thriving’, economically healthy and successful and providing a ‘good mix of shops to meet
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the needs of the local community’. She also said that the Council’s grant of a licence to Paddy Power was a ‘material consideration’ and that the Inspector was well within rights to take it into account while making a judgement. The crux of the matter is the fact that the premises had gained planning permission far back in 1972 for use as an estate agency or mortgage brokers, but a condition prohibited any other A2 usage. Having been granted a lease of the premises by the council, Paddy Power sought permission for removal of the condition which would have allowed it to open up the LBO without needing recourse to further planning permission. However, the council twice refused to play ball leading Paddy Power to successfully appeal the decision the second time around. Given the recent battles that Paddy Power has had with local councils in Barking and in Newham, where the lengthy appeal process had to be invoked before the bookmaker could open up a new betting shop, it is little wonder that the firm strongly opposed the proposals to put LBOs in their own planning class. But the Irish firm had better get used to such lengthy processes as before the Gambling Act came in it wasn’t unusual for betting shops to take up to two years to get approved.
BettingBusinessInteractive • JULY 2014
ACTION IMAGES / PETER CZIBORRA LIVEPIC
PHILIP YEA
Commission takes B to task over money laundering controls REGULATION
The Gambling Commission has issued a quite detailed breakdown of Bet365’s failures in antimoney laundering procedure in an attempt to educate the industry.
he money laundering controls of online betting operator Bet365’s were discovered to be too lax after an investigation by the Gambling Commission. The bookmaker has also been censured for having underdeveloped social responsibility procedures. Following an investigation by West Yorkshire Police leading to the conviction of an individual for serious theft and money laundering offences, the Commission conducted its own investigation into potential weaknesses in anti-money laundering (AML) and social responsibility controls put in place by Bet365 and found several problems. Chief among these weaknesses was an over-reliance on AML processes in the banking system. Bet365 considered that it could take some comfort from the fact that virtually all of the payments made by or to the individual in this case was via his personal bank account at a regulated financial institution in the UK. The Commission said that operators still need to be vigilant as this is only one of several considerations that should be taken into account when assessing money laundering risk. Another mistake made by Bet365 was that it continued to trade with the individual even after making two suspicious activity reports (SARs), as it received no specific directions from the then Serious Organised
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Crime Agency. The Commission has now stressed to the industry that lodging SARs is only one aspect of the requirement to manage money laundering risk. The regulator also criticised Bet365’s responsible gambling policies, saying that they had not developed to take full account of established and developing good practice. For example, in relation to patterns of spends, contacts with customer services and use of multiple debit cards and other payment methods. Matthew Hill, director regulatory risk and analysis at the Gambling Commission, said: “This case demonstrates just how much work the gambling industry still has to do before it properly recognises customers at risk. But the investment of the significant funds given up by the operator into research, including into the development of predictive data analytics, to benefit customers and the industry as a whole, has the potential to deliver a positive outcome.” Among the other failures in Bet365’s procedures was the fact that the early interactions with the individual were inadequately recorded. Even though the operator’s own thresholds for enhanced due diligence were exceeded on many occasions, the operator kept no deployable records of additional due diligence undertaken with respect to the individual prior to the lodging of the first
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No break up story Bwin.party has been moved to make a statement to the stock market denying that the group is to be broken up after a raft of media speculation. Its activist investor SpringOwl suggested such a move would bring added value, but the company has since made its peace with the shareholder. The company said: “Since his appointment as chairman last month, Philip Yea has been working with the executive management team on ways in which the Group can increase shareholder value, however we can confirm that there are no plans to break-up or sell the company.”
STOKE CITY SPONSOR BET365 HAS BEEN CRITICISED FOR ITS MONEY LAUNDERING CONTROLS
AMAYA IS GOING TO BOLSTER THE FULL TILT POKER PLATFORM WITH ITS OWN PRODUCTS
Amaya takes PokerStars and Full Tilt with a $4.9bn pot Nearly £3bn in Amaya’s cash has been enough for the owners of PokerStars to cash in their chips. POKER
s Bet365 ey ls SAR and so was unable to adequately evidence its decision making. Bet limits were increased frequently, with insufficient challenge. It also did not use open sources of information or data held internally as actively as it could have. For example, it would have been relatively straightforward for the operator to determine from open source information that the individual was a bankrupt, which may have prompted earlier concern about the scale of his gambling. While the operator accepted the customer’s explanation for partial self-exclusion from its casino products at face value it failed to flag up the need to monitor other accounts, even though it was required by licence obligations to link them. The Commission concluded that if the AML systems put in place by the operator and the payment providers it used had worked effectively, it is highly likely that the operator’s relationship with the individual would have ceased much earlier than it did. Furthermore, the operator’s responsible gambling policies, which were built on passive reaction, rather than active interaction, lacked complete effectiveness. Bet365 has moved to rectify its shortcomings in this area and ‘provided considerable assistance in identifying lessons’ from which the whole industry could learn. The regulator said that Bet365 was not alone in having ineffective AML procedures at the time of the investigation and has highlighted this case in order to ensure that gambling operators are aware what is expected of them.
maya Gaming Group has laid its cards on the table with an impressive UD$4.9bn (£2.9bn) deal to buy The Rational Group, owner of the major online poker brands PokerStars and Full Tilt Poker. The acquisition will see the gambling software supplier Amaya become the world’s largest publiclytraded online gaming company given that PokerStars and Full Tilt Poker are collectively the world’s most popular and profitable online poker brands with more than 85m registered players on desktop and mobile devices. Amaya CEO David Baazov commented: “This is a transformative acquisition for Amaya, strengthening our core B2B operations with a consumer online powerhouse that creates a scalable global platform for growth. Mark Scheinberg pioneered the online poker industry, building a remarkable business and earning the trust of millions of poker players by delivering the industry’s best game experiences, customer service and online security. Working with the experienced executive team at Rational Group, Amaya will continue that tradition of excellence and accelerate growth into new markets and verticals.” Rational Group founder and CEO Mark Scheinberg added: “I am incredibly proud of the business Isai and I have built over the last
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14 years, creating the world’s biggest poker company and a leader in the iGaming space. Our achievements and this transaction are an affirmation of the hard work, expertise and dedication of our staff, which I am confident will continue to drive the company’s success. The values and integrity which have shaped this company are deeply ingrained in its DNA. David Baazov has a strong vision for the future of the Rational Group which will lead the company to new heights.” The transaction combines complementary businesses with minimal overlap: Isle of Man-headquartered Rational Group’s B2C poker business including PokerStars, Full Tilt Poker, live poker tours and events, and online and TV poker programming; and Montreal-headquartered Amaya’s B2B interactive and physical casino and lottery gaming solutions. Rational Group holds online poker licences in 10 jurisdictions - more than any other gaming company - including the major European markets of France, Italy and Spain. Rational Group is also the world’s largest producer of live poker events and poker programming for television and online audiences. It also employs more than 1,700 people globally. The Rational Group’s executive management team will also be retained and online poker services provided by PokerStars and
Full Tilt Poker will be unaffected by the transaction, with players continuing to enjoy uninterrupted access to their gaming experience. Amaya said that it intends to strongly support Rational Group’s growth initiatives in new gaming verticals, including casino, sportsbook and social gaming, and new geographies. Amaya will also provide an extensive selection of its online casino games to expand the nascent Full Tilt Poker casino platform. Interestingly, Amaya believes the acquisition will also unlock the door for the poker operator’s US ambitions as Amaya already holds a footprint in the market. While PokerStars has made tentative steps into the online gaming market in New Jersey by partnering Resorts Hotel & Casino, its licence application to the Department of Gambling Enforcement has been on hold since last December and its attempts to actually buy an Atlantic City Casino were also scuppered by concern over previous ‘bad actors’ - firms that had offered online gambling in the States when it was considered illegal. Given Amaya is already licensed in New Jersey, the PokerStars business could potentially come under that umbrella and the PokerStars brand could feasibly be up and running again in America by the autumn.
ANALYSIS In recent years, Amaya has experienced rapid growth, mainly through a long series of strategic acquisitions that have strengthened its core offering of B2B technologybased gaming solutions. Amaya has an expansive footprint in regulated markets in the USA, Canada and Europe through the provision of its online, land-based and lottery solutions to licensed commercial, tribal and charitable gaming operations as well as government lotteries and gaming control agencies. The unexpected addition of the B2C poker brands to the portfolio will also give it one of the strongest B2B poker offers in the world. Given the biggest poker market is slowly opening up to online poker, perhaps the acquisition is not such a gamble after all.
BIG FISH Comment 38 BettingBusinessInteractive • JULY 2014
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iGaming COSTA BINGO’S AD FEATURING MEL B RESULTED IN RECORD KPIS
Betfair working on turning gaming around RESULTS
xchange operator Betfair has revealed a 13 per cent drop in its gaming revenue to £66.2m for the 12 months to 30 April 2014, despite a 2 per cent increase for the group as a whole. The firm said that drop in performance was primarily due to the continued decline in poker and lower revenues in other markets following the decision to focus on sustainable jurisdictions, although this was partly offset by UK casino growth. The sustainable markets in which Betfair remains saw some growth as gaming revenue was up 2 per cent in the year. The firm explained: “We have taken significant steps to address two issues that have affected Betfair’s ability to compete in gaming: by closing product gaps and improving cross-sell from recreational sports customers. “The work undertaken falls broadly into two areas. Firstly, we have made product upgrades to our Casino so that it now hosts the top level of content offered by Playtech, launching popular new features such as Live Dealer and more recently a tailored site for VIPs, a key way of serving and driving revenues from this important customer group. “Accompanying this has been structural work designed to make our site easier for customers to use. Customers now get a more intuitive welcome experience, meaning a higher percentage of new sign ups now fund their accounts. We have launched a seamless wallet between sports and gaming products, meaning it is now easier for customers to use funds between Sports and Gaming. This, alongside more effective promotional activity, is increasing our cross-sell from Sports into Gaming. “ The firm said that it has ‘recognised the need’ to make a greater impact across all channels and has subsequently made significant investment in mobile gaming, recently launching new Bingo and Casino Mobile Apps. The number of active customers using mobile rose 155 per cent year on year, with mobile revenues up 235 per cent year on year.
E More consolidation as Intertain buys Mandalay Media The operator of the Costa Bingo brand is being acquired by InterCasino owner Intertain. All of which makes for a very ‘full house’. BINGO
nline gaming company Intertain has announced plans to buyout UK bingo provider Mandalay Media for an initial payment of £45m. The firm said it will provide a further £15m in cash contingent, dependent on future profit performance. Mandalay is being acquired on a debt-free basis, although the acquisition is subject to financing, with the company currently in discussions with various capital providers. Mandalay owns some of the United Kingdom’s primary online bingo websites, including Costa Bingo, Sing Bingo, City Bingo, Fancy Bingo and Rio Bingo, as well as leading affiliate sites Casino Choice and Ignite. The Bingo Business, which was founded in 2009, offers online bingo 24 hours a day with cash prizes, and experiences over 9,000 daily unique players. Since launching its first bingo offering, Mandalay has had 1.1m users register to its bingo sites and has collected approximately £120m in deposits. For the fiscal year ending August 2013, the Bingo Business generated approximately £16.1m in revenue and approximately
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£7.9m in net income. Management expects further growth in revenue and income as a result of a £3m marketing campaign featuring Scary Spice Mel B, undertaken in the last six months ending February 2014, versus approximately £1.1m spent for the entire fiscal year ending August 2013. The firm said that the campaign resulted in record key performance indicators, including first-time depositors, average funded players, average players who deposited, average deposits and average net cash for the first four months of 2014. The Bingo Business, other than Casino Choice and Ignite, operates off of the Dragonfish platform, among the leading bingo software services which are provided by 888 Holdings. John Kennedy FitzGerald, CEO of Intertain, said that the acquisition of Mandalay Media will add substantial free cash flow to the existing business: “As we have previously stated, bingo and sports betting are a key verticals missing from our current gaming platform supplied by Amaya Gaming Group Inc. This bingo acquisition will add a missing gaming vertical, a bingofocused marketing team,
diversify our current casino offering and is expected to be materially accretive to earnings per share and free cash flow. “In addition to these important milestones, our existing brand, InterBingo will now have a leading bingo platform to reside. The timing of this acquisition is also advantageous as we are acquiring the business at the end of Mandalay’s robust marketing campaign undertaken and paid for by the vendors, the benefits from which we believe have yet to be reflected in revenue and earnings. Over 98 per cent of the Bingo Business’ revenue is generated from the UK, which is consistent with our strategy of growing our customer base in regulated markets.” Stan Dunford, chairman of Intertain, added: “The acquisition of Mandalay in the Board’s view meets the acquisition criteria that management has defined. Mandalay’s bingo product and team are important additions to enhance our business. We are looking forward to leveraging the addition of bingo to our current offerings in order to enhance our customers’ experience while increasing shareholder value.”
ANALYSIS Mandalay’s portfolio of bingo sites is a perfect fit for Intertain to boost up its online gaming business. While the existing InterBingo site catered for existing customers, the new brands will really give some impetus to the group’s bingo business, especially in the UK where it has made little headway so far. With the UK market about to change with the introduction of the point of consumption tax, it could be argued that Intertain is taking a little bit of a gamble. However, there will be some untangling to do given that the UK bingo sites owned by an Isle of Man licensee, using software regulated in Gibraltar is now being acquired by a Maltese firm.
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BettingBusinessInteractive • JULY 2014
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Multiplayer Live Blackjack
iGaming
Bodog has developed a multi-player Live Blackjack product called Zone 21 which deals a single hand, which is shared amongst all players, until it reaches 21/6 cards/bust, with players given the opportunity to stick or twist before each card. This allows each ‘hand’ to have multiple outcomes at the same time. Bodog’s casino product director Bill Hu commented: “To us, Zone21 is the nearest we can make the product while allowing everybody, not just a select few, to play.”
888 ends Suarez association after teething problems He may have only had the briefest tenure as an 888poker ambassador, but Luis Suarez has provided more column inches for the operator than it could have anticipated. MARKETING
he summer is traditionally a slow period for online gaming, as people are more generally likely to be out of the house in the evening. Summers with World Cup tournaments also provide overpowering competition from sportsbooks, which tend to hoover up the recreational spend of the industry’s customer over the course of the competition. Despite this, the World Cup in Brazil has brought an unexpected profile boost to one of the biggest gaming operators - 888poker. Following the exceptional domestic season at Liverpool, 888 signed up Uruguayan striker Luis Suarez as an ambassador for the firm’s poker arm, but the association has only lasted a month. After Suarez bit the shoulder of Italian defender
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Giorgio Chiellini in the last group stage an international media storm hit the player and 888 found itself in the limelight through the association. The day after the incident, 888poker said that it would ‘seriously review’ the relationship with Suarez on the basis that it ‘will not tolerate any unsporting behaviour’. Within three days, the agreement had been terminated. A short statement read: “888poker signed Luis Suarez following a fantastic season for which his achievements were widely recognised. Regrettably, following his actions during Uruguay’s World Cup match against Italy on Tuesday, 888poker has decided to terminate its relationship with Luis Suarez with immediate effect.” Given that Suarez had also been banned twice for biting opponents since 2010 and
also picked up a lengthy ban for racially abusing Patrice Evra, the moral stance by 888 would have many a sceptic raising their eyebrows albeit, the moral code of the entire football profession, and indeed the media, in England could have raised those eyebrows so far that they would have touched the backside having voted Suarez player of the year. Ironically, at the time Suarez was announced as an ambassador for 888 it was said that he would be joining up with 888Live events ‘when his busy professional schedule allows’. Given that FIFA has handed him a four month ban from all football activities, he would have had plenty of time to work as a brand ambassador for the poker operator in the foreseeable future. However, from a publicity point of view, it is clear that
LUIS SUAREZ WAS AN 888POKER AMBASSADOR FOR ALL OF A MONTH
ANALYSIS 888 would have got more coverage from its association with Luis Suarez than it could ever have hoped for and it is unusual that a gambling company is generally lauded for taking a moral stance in the media. This is why it is important to have break clauses in partnership deals with well known personalities, not just to protect a brand against a suddenly toxic association, but also to maximise coverage with a well-timed announcement during a running story.
888 has played a great hand, with global coverage for the brand and its eventual decision to drop Suarez. Indeed, a Google News search for 888 and Suarez generated over 17,200 results. Indeed, given that this is the third biting transgression for Suarez, 888’s profile has been so heightened that it is the punchline behind one of the
many topical jokes (What’s Luis Suarez’s favourite poker brand? AteAteAtePoker). But other gaming firms have been even less shameless in attempts to cash in on the incident. In an uncharacteristic move, Betfair rebranded itself Bitefair for a whole weekend following the furore. Betfair changed the
desktop and mobile logos, twitter handle and name, onsite banners, CRM headings and print advertising with the Sun. It described the stunt as ‘a significant and reactive move to an act which has created much humour and consternation’. It also subverted its #ThisIsPlay motto to #ThisIsNotPlay.
Booming markets for social gaming LATIN AMERICA
esearch by market intelligence provider, Super Data, and gaming website Playspace, suggests that the Spanish and Latin American social casino markets are set to boom in 2014 and generate $95.8m (£56.2m). Interestingly, it was also discovered that within these markets only 9 per cent opt to play the games via smartphone, and just 6 per cent on a tablet. Of these, 83 per cent stick to an Android device with 8 per cent selecting iOS. The vast majority of players, meanwhile, are more likely to access
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BINGO IS THE MOST POPULAR SOCIAL GAME IN LATIN AMERICAN AND SPANISH MARKETS
BettingBusinessInteractive • JULY 2014
the games on a laptop or desktop device. The amount players spent on social games was also looked into. It was found that, on average, of the players who made in-game purchases, their spend per month was $34.50 (£20.24). In consideration of what this money was spent on, it was, not surprisingly, largely virtual currency to the tune of 70 per cent. Extra lives or energy accounted for 14 per cent whilst special items were worth 11 per cent. Furthermore, the majority of in-game purchases were made by gamers seeking to gain a competitive edge (36 per cent) or
alternatively those wishing to decrease game difficulty (30 per cent). Of these most were paid for using a credit or debit card at 47 per cent though PayPal also received 29 per cent of payments. The most popular games on the market were bingo (38 per cent), poker (22 per cent), lottery (10 per cent), roulette (9 per cent), slots (6 per cent) and blackjack (5 per cent). One particularly interesting find by the report was that, in the Latin American and Spanish markets, the number of female players of social casino games far outstrips their male counterparts at 70 per cent to 30 per cent
respectively. These players were also asked for their reasons for playing to which a total of 67 per cent stated it was to relieve stress. Other reasons included helping with mental stimulation (49 per cent), enjoying the competitive spirit of the games (16 per cent) whilst social interaction was the main reason given by 28 per cent of those surveyed. Finally, the report also determined the very specific average social casino player in these markets as a 34-year old who makes $19,000 (£11,149), has completed some college, plays via computer and has one child.
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BB118-p04-08-iGaming_09/10 03/07/2014 13:57 Page 3
Roberts becomes president
iGaming
Sportech chairman Roger Withers has welcomed the appointment of social mobile expert Rich Roberts as President of Digital for its US division. He commented: “Rich’s experience and business knowledge within the mobile, social and real money gaming markets will be of considerable benefit to the Group.” ROGER WITHERS
The ‘Betting on Digital’ report suggests that operators should keep pushing the efforts they provide into tackling problem gambling.
iGAMINGBRIEFS MASSIVE WIN AT BETSSON
SOCIAL RESPONSIBILITY
Brits more inclined to gamble with socially responsible firms early half of British adults who gamble online (45 per cent) have said that they’d be likely to place a bet with an online gambling website if they knew that the brand was contributing financially to the research, education and treatment of problem gambling. This is the key finding from the new ‘Betting on Digital’ report by digital marketing firm IgnitionOne and polling organisation ComRes. The report looks at the British public’s perception of online gambling, and whether the industry’s efforts to behave ethically improve its reputation. ComRes polled over 2,000 members of the British public and interviewed marketers across the sector. The commitment of online gambling brands to supporting initiatives aimed at problem gambling also
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resonates positively with the British public at large, including those who do not gamble. Three fifths of British adults say that financial contributions from the industry towards research, education and treatment of addicted gamblers would be likely to improve its reputation because of its association with ‘responsible gambling’. More generally, one in five British adults say they would be likely to place a bet with an online gambling company that they could see demonstrated corporate responsibility. This proportion increases to almost half specifically among those who currently gamble online. Tax was also tackled with 77 per cent wanting online gambling companies to pay tax in all the countries in which they operate, not only in the country in which
they are registered. Half (52 per cent) of those who have ever gambled online said that knowing this is an important factor in driving them to visit the site of an online gambling brand. Alongside charitable investments towards problem gambling, half of those who have ever gambled online also say that imposing limitations on spending is an important factor in driving them to use an online gambling website. This is almost as much of a factor as the name of the brand itself, which is important for 46 per cent of those who have ever gambled online. Simon Haynes, managing director of IgnitionOne, comments that online gambling brands could place a stronger focus on communicating their responsibility efforts in their marketing messages: “Our research
shows that consumers do in fact make a connection between the choices they make and the track record of the brands they spend money with. Our report shows that effectively communicating a responsible approach has more sway with the public than we think - and can have a direct impact on not just perception but consumer activity.” 23 per cent of the British public say they currently gamble online. While men are more likely than women to say that they currently gamble online - 28 per cent compared with 18 per cent women are more likely than men to be loyal to one online gaming website. Of those that have ever gambled online, 41 per cent of British women say they use or have used only one provider, compared with 30 per cent of British men saying the same.
ANALYSIS As interesting as the survey results are, it is unlikely that people’s responses actually translate to real life. Operators will not be rushing to transfer some of their marketing budget over to socially responsible projects at any rate. However, a heightened awareness of the activities that operators already carry out would be no bad thing indeed, 61 per cent of the British public think this would be likely to increase public awareness of problem gambling.
A 50-year-old Betsson customer has scooped 7.4m euros (£5.9m) - the second largest online jackpot ever in Sweden. The winner, who was playing Net Entertainment’s Hall of Gods slot, said: “I was winning smaller amounts here and there, so decided to continue playing. I couldn’t believe it when I saw the 7.4m euro come rushing into my account. Money is not everything, but this is absolutely wonderful for me. I haven’t been able to afford a car until now. I’m not going to splash out on a Porsche, it will have to be a Volvo. And then I want to buy a house! That has been a dream of mine for a long time.” ANTIGUA WANTS US MONIES
Delight at PokerStars’ commitment to Isle of Man
The online jurisdiction of Antigua & Barbuda is once again stepping up the pressure on the US to pay damages to the island after the WTO said it violated trade agreements in blocking online gaming. The US’ reluctance to pay up has seen Antigua granted the right to infringe US copyrights to the tune of US$21m (£12.3m) a year, but the island wants the cash. It said in a statement: “The facile excuses presented in the past are completely without merit, and the United States as well as every other members of this body knows it. We understand that this is all orchestrated to frustrate us to cause us to tire and slink away into oblivion.”
we were looking for and also represents a strong endorsement of the Isle of Man’s standing as a centre for eGaming excellence.” Telford stated in the letter: “I would like to reiterate that PokerStars chose the Isle of Man for its headquarters because we believe it represents the gold standard in e-Gaming regulation. Amongst those limited jurisdictions that offer e-Gaming licences, the island takes a leading role in the areas of customer protection, fraud prevention, tax transparency and anti-money laundering. “…The stated intention of Amaya is ‘business as usual’ and to leave things unchanged as much as pos-
Discussions in Poland over the gambling laws look set to open the door to EU operators for the first time, as long as they comply with Polish tax frameworks regarding gambling. Operators will have to supply documents in Polish, but for the first time it seems that they will not have to physically locate themselves in the country in order to offer gambling. It has been reported that Poland will fast track the online gambling legislation with a view to have the necessary framework for foreign operator licensing by the first quarter of 2015.
POLAND OPENS UP REGULATION
oker operator PokerStars has committed its future to the Isle of Man following its planned takeover by Amaya Gaming Group Inc, much to the delight of the jurisdiction’s Department of Economic Development. General Counsel to the Rational Group of Companies Paul Telford wrote an open letter to the Chief Minister reiterating the company’s commitment to the Isle of Man. Leonard Singer MHK, the Department Member with responsibility for e-Business, said: “The letter to the Chief Minister from Paul Telford offered the reassurance that
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LEONARD SINGER: ‘A STRONG ENDORSEMENT OF THE ISLE OF MAN’S STANDING’
BettingBusinessInteractive • JULY 2014
sible. I can therefore confirm there are no planned redundancies. On the contrary, the clear intention of the acquisition is to take PokerStars on to even greater heights with plans for launches of new products and expansion into new territories…such plans will likely lead to growth and job opportunities for the talent that exists in the local market…” Singer added: “I was delighted that the letter acknowledged the strength of our regulatory environment and their plans to expand the Isle of Man operation with the prospect of further job creation in the Isle of Man. I was also encouraged by their public
commitment to continue to their welcome support for local charitable causes and other community-based sponsorships.” CEO for e-Gaming Development with the Department of Economic Development, Peter Greenhill, said: “The fact that we have a number of major global brands in e-Gaming and e-Business headquartered in the Isle of Man is an influential factor when we seek to attract further business to the Isle of Man. We are confident that growth within e-Gaming and the broader e-Business sector will continue such that it will represent 23 per cent of our economy by 2020 and employ 2,400 people.”
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Betting Betting brands go to the pubs
New Jersey tries to get around sports betting ban
MARKETING
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CHRIS CHRISTIE: ‘THEY SAID NO, SO WE HAVE TO MOVE ON’
Having legalised online gaming, New Jersey is putting a lot of effort into introducing sportsbetting back into the state as well. USA
he State of New Jersey is readying itself to go headto-head with the Federal Government on its sports betting ban after failing in its three year battle to get the law overturned. New Jersey has spent a reported US$2.8m (£1.6m) challenging the Professional and Amateur Sports Protection Act, claiming it unconstitutionally infringes states’ rights to raise tax revenue and gives preferential treatment to four states that received exemptions. However, when presented with the opportunity to review the law last month, the US Supreme Court passed, leaving New Jersey with a commitment to go it alone. The Supreme Court issued a statement that New Jersey’s appeal was meritless and unworthy of a review, adding that the state’s Republican Governor Chris Christie couldn’t complain about discriminatory treatment because the 1992 law gave New Jersey a oneyear time window to allow legalised sports betting, an opportunity New Jersey had declined at the time. Christie commented: “It’s always a long shot to get certiorari [go ahead for a Judicial Review]
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from the United States Supreme Court. That’s the way it goes. They said no, so we have to move on.” The Republican has signed a bill allowing sports betting after New Jersey citizens voted overwhelmingly for its legalisation in 2011, however, a group of sporting bodies, including the National Collegiate Athletic Association, Major League Baseball, the National Basketball Association, the National Football League, and the National Hockey League, said this contravened the Professional and Amateur Sports Protection Act. This objection was upheld by two federal courts, leading to the failed NJ appeal at the Supreme Court last month. But, New Jersey is using the disappointment as a springboard with Democrat Senator Ray Lesniak acting as the standard bearer. The state has already passed legislation that could pave the way for change, bypassing the Federal ban by repealing old state laws prohibiting sports betting at casinos and horse tracks and allowing private companies to have sports wagering operations without state regulation. Assemblyman Al Caputo commented: “We are in desperate need of innovative
ideas to combat the continued downturn in New Jersey’s gaming industry in both Atlantic City and at our racetracks. This is an opportunity to kick-start this industry in a way that is unprecedented along the East Coast and generate substantial revenue for our state as a whole.” Lesniak argued said that he doesn’t believe the US Department of Justice will interfere with the loophole he claims to have found, adding: “The purpose is to get sports betting going at our casinos and racetracks as soon as possible without interference from the federal government or anyone else.” Lesniak has already said that he would make the first bet after the local New Jersey laws have been passed at the Monmouth racetrack, which has a deal in place with William Hill’s US subsidiary for the potential provision of sports betting. New Jersey State Senate President Stephen Sweeney said that the ‘economic impact that sports wagering can have on New Jersey is far too important to simply shrug our shoulders and move on’. He added: “New Jersey has been held hostage by this unfair law and the national sports associations long enough.”
oral launched an innovative promotion ahead of the World Cup in conjunction with pub operator Admiral Taverns. Running in almost 200 selected Admiral Taverns pubs, all of which are within a half-mile radius of a Coral betting shop, customers are given free bets during matches to redeem at Coral’s website. The business building initiative, which is designed to drive footfall to pubs, and awareness and engagement with live televised games in pubs, gives licensees a certain quota of free bets - for both them and their customers. Participating pubs have 200 £1 free bet coupons to offer customers to predict the outcome - win, lose or draw - of 15 matches from the World Cup group stages. Admiral commercial manager Simon Eyles said: “This is about maximising a once-in-four-year event for our licensees and their pubs. The World Cup is a fantastic trading opportunity for pubs all over the country, especially given Brazil’s pub-friendly timezone, and offers licensees a chance to engage with current customers and attract new ones. “Some in the industry might regard bookmakers as something of a competitive threat but we believe there are some great opportunities to build partnerships, and believe this initiative will serve as a great platform for further collaboration between Admiral and Coral.” Jack Chapman, head of retail sports marketing at Coral, said: “This is the first such promotion Coral has run in the pub sector, and we are delighted to be doing so exclusively with Admiral, who have many great sports pubs across the country. We look forward to seeing how customers and licensees engage with the promotion during England’s campaign in Brazil.” A similar promotion has been launched by BetVernons, the brand now owned by NetPlay TV, which has become the official betting partner of Walkabout bars. The partnership will last for an initial one-year period, with BetVernons having premium branding rights across Walkabout’s offline, digital and social media platforms. Simon Kaye, chief operating officer of Walkabout’s parent company Intertain, said: “We’re delighted to announce this partnership with BetVernons and we’re looking to having them as a key feature of our sports delivery for the next year.” Paul Filler of Magnify Marketing, the company responsible for the management of Intertain’s sport sector, added: “The fit is perfect for both companies and allows Walkabout to bring an even greater experience to enjoy sport in the venues. We have seen betting become our customers as it can add another dimension to watching the game.”
ANALYSIS One of the challenges still facing potential sports betting suppliers into New Jersey is the willingness for Governor Chris Christie to sign a another sports betting bill into law, especially with a Presidential Election looming and Christie still in the running for a nomination to take a run at the big chair. It might not be politically prudent for a potential Republican President to be endorsing a Democrat bill which worms its way around Federal laws, regardless of how much he might agree with it. Unusually for a US politician dealing with gambling, at least he knows he has the backing of the state’s electorate, who have already voted in favour for the legalisation of sports betting.
BETVERNONS IS THE BETTING PARTNER OF WALKABOUT BARS FOR THE NEXT YEAR
sales@ingg.com
www.ingg.com
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www.betconstruct.com
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Betting Paddy Power fools market with fake Amazon message
Watchand Wager gets a bite of the Big Apple POOL BETTING
W Paddy Power has traded on its notoriety by making people belive that it would chop down part of the Amazon for a marketing stunt.
MARKETING
ookmaker Paddy Power has been on a rich vein of World Cup form after attracting righteous indignation for chopping down trees in the Amazon in order to spell out the message: “C’mon England, PP” - only for the company to reveal it to be a hoax. The elaborate #Shavetherainforest stunt made it appear that thousands of trees had just been felled to garner support for the England squad. However, the mischievous bookie says although it was ‘a bit out of left field to raise awareness of deforestation by pretending to chop down the Amazon’, Greenpeace informed them that an area the size of 122 football pitches is axed every 90 minutes. A spokesperson said: “We knew we’d drop off a fair few Christmas card lists yesterday, but we couldn’t resist a bit of fake twitter mischief to highlight an important issue to football fans as our
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World Cup warm-up. At least it gave people something to get animated about during the England-Honduras bore fest.” The computerised gag took three weeks to pull off, but Paddy Power came under rapid fire from people who believed the hype. Several users threatened and swore at the company, while one said that if the feat was indeed genuine, they’d ‘wholeheartedly plan on emigrating’. The gambling and social marketing specialists finally came clean. Greenpeace’s forests campaigner Richard George said: “It’s very reassuring that people were outraged when they thought Paddy Power had destroyed tropical rainforest for advertising - but it’s just as outrageous to chop it down for garden decking or flooring. Efforts to help raise awareness of the crisis facing our rainforests are always welcome, and we hope that the World Cup bringing the eyes of the world to Brazil will lead to a
lot more attention being paid to this issue.” The Irish betting chain also revamped its Barrio Backstabio advert (in essence a re-skin of the Gregos Traitorelli ad criticised for being racist) and the recruitment of Paul Scholes, Joey Barton and Stephen Hawking has also been a major coup. The widely renowned theoretical physicist devised a winning formula on how to take the perfect spot kick. The author of The Grand Design found the conditions that suit the Three Lions by analysing 45 matches played since 1966 and 204 penalties. But it’s likely that his exploits will be in vain, as no side has ever progressed from the group stages with two defeats. In a blog for The Drum, the bookmaker said that it pursued Scholes as a contributor as it had asked ‘who would NEVER work for Paddy Power?’ And it has been a big success, with Scholes’ comments dominating the sports news
agenda and also performing well on social media. The bookmaker explained: “The results of this content deal have been exceptional. In terms of social media, our #AskScholes hashtag was trending organically for more than two hours with more than 30m potential impressions. These things normally get messy on Twitter (and they did with ludicrous questions) but we were confident Scholes’ clever answers would disarm any doubters.” In a further development, Paddy Power is tweeting ‘near-live’ World Cup football clips to its 354,000 followers, after securing a deal with UK broadcaster, ITV. The partnership will allow both parties to tweet up to 10 match highlights until after the final. Twitter Amplify believes highlight reels can kick start conversations and target diverse audiences. The current sports partners include the likes of the NBA, PGA Tour, and WWE.
ANALYSIS Paddy Power has played a blinder on social media and on the news agenda during June, although the lacklustre TV advertising campaign perhaps shows where the bookmaker’s marketing energies have been focussed. The firm has been using its Joey Barton partnership to try and kick start its hitherto disappointing Facebook app Paddy Power Social, and having the divisive footballer ‘laugh’ at some of the bets that people are placing as well as give users the chance to back or oppose some of his treble selections is an interesting way of using the platform in a social way.
Sportech expands US retail operations USA
portech has obtained regulatory approval to build and open a flagship sports bar, restaurant and betting venue in downtown Stamford, Connecticut. Stamford has a population of more than 120,000, is home to a thriving financial district and is situated close to the border with New York. The development will be the second of its type in the state of Connecticut following the successful opening earlier this year of Sportech’s US$4m (£2.3m), 10,000 square foot sports bar in Bradley where up to 370 customers can bet, play, dine and drink in the multi-use facility. The Stamford venue, which is a redevelopment of an existing building, is scheduled for completion in 2015 and will consist of a
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atchandWager.com, the US-based tote betting arm of Webis Holdings Plc, has signed a Simulcast Wagering Agreement with the New York Racing Association (NYRA) to allow wagering from WatchandWager customers on all the racetracks operated by NYRA. Headquartered in San Francisco, California, WatchandWager conducts US licensed advanced deposit pool wagering and racetrack operations. This contract was signed last month, and then in accordance with New York statute, was formally approved to go live by the New York State Gaming Commission, allowing live wagering to commence just in time for the Belmont Stakes, which featured the Triple Crown seeking California Chrome. The agreement is an annual contract and also covers the rights to video streaming of the races as well as pari-mutuel wagering rights. The contract includes three of the United States’ most prestigious tracks located in New York state, namely Arlington, Belmont and Saratoga. The company said that the contract is significant in that it ‘represents the final milestone in WatchandWagers’ content acquisition drive, which was a cornerstone of its US migration of its headoffice to the US and the focus on US compliance and domestic US licensing’. It said that WatchandWager now offers ‘arguably’ the widest range of content of any global advanced deposit wagering operation, including all the main US thoroughbred races, plus content from Australia, UK/Ireland, France, Sweden, Dubai and Hong Kong, and several other jurisdictions. Ed Comins, president of WatchandWager.com LLC, said: “Whilst California Chrome didn’t quite land that elusive Triple Crown, our new relationship with NYRA got off to an excellent start. Coverage of the Belmont was huge within the US and internationally with all sources handle 32 per cent up on previous years, and NBC reporting the highest sporting viewership figures since the Sochi Olympics. It was a welcome shot in the arm for US Racing, and we look forward to working with NYRA to continue this positive momentum.”
IAN PENROSE: ‘ANOTHER SIGNIFICANT STEP’
20,000 square foot facility, split between two floors. The ground floor will comprise a sports bar and restaurant, with giant television screens, while the upper
floor will have a separate bar area and spaces dedicated to the betting enthusiast. Like Bradley, Stamford will be operated in partnership with baseball legend Bobby Valentine, a resident of Stamford and restaurant entrepreneur. The Stamford sports bar, approved by Connecticut’s Board of Representatives, highlights Sportech’s progress in repositioning the traditional Off Track Betting proposition in the US and its commitment to delivering the next generation of gaming opportunities for customers. Ian Penrose, chief executive of Sportech PLC, said: “This decision is another significant step in the development of our business in Connecticut, following the successful opening of our innovative Bradley venue and launch of the State’s only legal online betting
site, Mywinners.com earlier this year. We are the only licensed operator of betting in Connecticut, and are confident Bradley and Stamford can fill a gap in the leisure market. “The new venue in Stamford demonstrates our commitment to customers and employees to develop an exclusive, innovative, thriving and multi-channel gaming and leisure business in the State. Following the opening of our Stamford venue, we expect our betting volumes in Connecticut alone to exceed $200m (£117m) per annum.” Sportech’s transformation from the operator of a declining football pools product to a key player in the US racing and betting industry has been one of the success stories of the past few years, and it appears that the firm is not letting up in its ambitions.
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Greenlight for investment Betit Holdings Limited, the joint venture company that GVC Holdings PLC has established with Betit Securities Limited, has been granted approval by the Lotteries & Gaming Association of Malta. Following LGA approval, GVC has now made its upfront commitment of 3.5m euro to Betit for its operations in the Scandinavian markets.
BetVIP makes debut as first bitcoin-only sportsbook With a number of bitcoin-enabled casinos on the market it was inevitable that someone should try their hand at a bitcoin sportsbook before too long. CURRENCY
he world’s first licensed bitcoin-only sportsbook BetVIP.com has gone live with the aim of adding transparency and legitimacy to the nascent currency. Bitcoin has caused controversy due to its lack of a central regulator and also how it can be used outside of conventional monetary controls, but its popularity is steadily increasing. BetVIP takes wagers and pays out winnings exclusively in bitcoin and only accepts bets in regulated markets. It has offices in Malta and South Africa and holds a gaming licence in Curacao. The technology that powers BetVIP is provided by gaming solutions supplier, BetTech. BetVIP is the brainchild of Cape Town-based digital entrepreneur Daniel
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Schwartzkopff, a South African business executive with a proven background in the start-up, technology and social networking sectors. “BetVIP is not a PR stunt it is a long-term business venture,” said BetVIP founder Schwartzkopff. “Our gaming licence and strict bet acceptance policy demonstrates our commitment to the longevity of the currency. There is a massive opportunity to provide both a secure and reliable platform for bitcoin holders and take on the traditional online sportsbooks.” Schwartzkopff previously founded FSMS, a telecoms start-up with more than 325,000 registered users and DataProphet, a unique consultancy specialising in solving prediction problems in the financial
industry. He launched BetVIP to allow bettors to benefit from the fast transactions and low costs of bitcoin exchange. “Given the embryonic status of bitcoin, we understand that it is surrounded by concern and confusion. At BetVIP we are determined to help the growing movement of people that want to normalise the currency and bring it into everyday use,” said Schwartzkopff. “We might trade in an anonymous currency but we are providing complete transparency and accountability in order to build trust with our players.” On a related note, the Isle of Man has just moved into the regulation of digital currencies, such as Bitcoin, in an attempt to provide an environment for high-
quality businesses in this rapidly emerging field who wish to operate there. The Department Economic Development director of e-business development Peter Greenhill stated: “The Isle of Man recognises both the risks and opportunities presented by digital and virtual currencies. We are conscious of issues that have surrounded these activities but also can identify serious and credible entrants to the market wishing to explore this innovative technology. Therefore, the government has instructed the relevant departments and statutory bodies to ensure there is a regime that promotes both business opportunities but also applies appropriate anti-money laundering requirements. “Our stance is intended
DANIEL SCHWARTZKOPFF: ‘WE ARE PROVIDING COMPLETE TRANSPARENCY’
to welcome those who can meet the necessary standards while also preserving the Island’s good reputation as a financial centre. We will work with the Isle of Man Financial Supervision Commission, Department of Home Affairs and industry
to ensure a fair and appropriate regime is implemented. This is not at this stage expected to embrace a full prudential suite of requirements, so consumers will need to be aware of this when making their decisions.”
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BB118-p10-14-Betting_09/10 03/07/2014 14:31 Page 4
New-style Strand shop
Betting
Ladbrokes is trialling a new style of shop on The Strand in London, designed by agency FITCH, in order to differentiate Ladbrokes from the normal traditional format of the betting shop. According to MarketingWeek, a social hub at the centre of the store encourages visitors watch events together while it also lets them monitor social media traffic via tablet devices. Also available is Wi-Fi, phone charging plates and complimentary coffee.
BETTINGBRIEFS
Getting the Stakes right for new pools venture
GOALGAMING LICENCE SUSPENDED
Maltese regulator The Lotteries and Gaming Authority has suspended Goalgaming Limited’s remote gaming licences and told the operator to suspend all gaming operations, cease to register new players, not take any further deposits, not offer any games falling under the Authority’s licences, provide registered players access to their accounts, settle all players’ dues and to remove any reference to the Authority. It added: “The Authority notifies that no further information shall be released at this stage in order not to compromise any investigations that may need to be performed by the Authority and/or any other competent authority.”
Tristan McDonald, manager and founder of Stakes and Ladders, an innovative pools betting exchange, discusses the need and niche of social gaming, and the challenges facing start-up businesses. INTERVIEW
escribe Stakes and Ladders, how and why you got started? Stakes & Ladders was created by a group of poker players who saw a gap in the market for a form of gambling that is both social and strategic - and doesn’t rely on odds and bookies accepting your bets. Our games are set up more like poker tournaments: the prize-fund could be split between any number of players, it all depends on how many entries there are to the pool. We’re trying to redefine the old pools concept into a more modern betting medium - allowing players to bet on a number of factors, all at the same time, in just one bet. Now, we’re just having fun.
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betting. Betfair - as the inventor of the betting exchange - is our inspiration here. But Betfair is becoming more like a bookmaker every day. We would like to do for pools betting what Betfair has done for odds-betting. We also are introducing the concept of ‘social gaming’ to Stakes & Ladders. We have ‘All-Time’ and ‘Monthly Hall of Fame’ prizes to reward the best performing players as well as an internal loyalty scheme that allows players to increase their status on the site and earn more reward points. I would describe our business model as a mixture of Betfair, i-poker and the traditional pools we all know so well.
How has the forthcoming point of consumption tax altered your plans? How does the business We established our busimodel differ from online ness in the UK and are sportsbook operators? licensed by the UK GamFirstly, we offer betting bling Authority, so we have pools, not odds-based avoided all of these issues.
We are initially only accepting customers from the UK and the Republic of Ireland. We applaud the introduction of stricter regulation in the gambling industry, which generally has a poor reputation from a regulatory perspective. As the founder of this business, my background in the heavily regulated financial industry has helped us establish a business model for Stakes & Ladders that is designed for an industrywide future that is likely to come under more and more scrutiny. Where do you see the company’s future in the online pool game market? Our vision is to become the ‘Betfair’ of pools: a single online universe with all sports and pool-types available to all players, wherever and whenever they play. We want to achieve this as a B2B model of white-labelled gateways (we call them hosts) into our pools engine (i-pools). Stakes & Ladders is our first host.
Online pools sit comfortably in the space between betting and social gaming: we are seeing the edges of each become more and more blurred, as everincreasing access to real time data and an overall surge in transparency rapidly changes the playing field for sports punters, fantasy league players and general sports fans. I hope players will like the innovative forms of betting that the social pools platform allows: fantasy league betting, last longest pools and private pools on virtually anything. The sky’s the limit! Finally, how has the World Cup impacted on revenue and player subscriptions, plus any predictions?
We are really enjoying the World Cup and have benefited from the general noise surrounding it through sign ups and increased traffic. But the hardest thing for any start-up business in the gambling industry is spending marketing £££ effectively in the vast ocean of free bets, deposit bonuses, money back offers and everything else that the major players in the industry continually flood the market with. It’s obviously hard to get noticed. Our real marketing budget targets are affiliate partners and hosts (i.e. white labels) and we will be starting to roll this strategy out after the World Cup has finished - but hopefully ahead of the Premier League kick off!
Betting brands not shying away from short sponsorship MARKETING
espite the uncertainty surrounding the UK’s licensing regime, some betting brands are moving early in order to benefit from the heightened awareness in football for the domestic season. The biggest deal secured so far involves Asian facing brand Fun88, which has signed a deal to become shirt sponsor for newly promoted Burnley for the next two seasons. It is the second time Fun88 has sponsored Burnley FC, as the operator was the official betting partner for the Lancashire-based football club during its 2010 Premiership campaign. Burnley chief executive
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nurture such a strong relationship with an established and successful company on the other side of the world. “This is a great marker as to how far the club has actually come and we look forward to continuing our successful partnership.” Director of Fun88, Nathan Walker, said: “Our relationship with Burnley Football Club has grown so much through the years FUN88 HAS BECOME THE SHORT and we are delighted to be SPONSOR OF PREMIER LEAGUE working in tandem once TEAM BURNLEY again. This season, we are Lee Hoos said: “This deal absolutely sure that the with Fun88 represents the club will work wonders for biggest shirt sponsorship our brand.” deal in the club’s history Fun88 clearly believes and we are delighted to there is value in getting a
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UK licence to be able to advertise in the Premier League to its Asian clients, although not all operators have had the same view. Meanwhile Marathonbet, the Russian betting brand with a UK base in Brighton and a handful of LBOs in the UK, has followed up its shirt sponsorship of Fulham by also branding the shirt of Scottish side Hibernian. The ‘significant six-figure partnership deal’ will see the Marathonbet logo on Hibs’ shirts for the next two seasons, with an option for a third. Marathonbet CEO Graham Luke said: “We join the club at a time of
rebuilding that also sees the introduction of a new chief executive and head coach and these appointments underline the ambition of the club going forward. These ambitions echo our own as we look to grow and expand into new territories and this agreement is a key vehicle in broadening the awareness of our brand and helping us reach our strategic goals.” Marathonbet has also moved to retain a presence in the English Premier League following last season’s relegation of Fulham by becoming the new betting partner of West Ham United.
FUNDRAISING TREK
The Responsible Gambling Trust has challenged people working in the gambling industry to walk the length of the Great Wall of China to help raise money for the charity. The organisation is leading a fundraising expedition to China in April 2015 which seeks to raise a minimum of £50,000 towards research, education and treatment for problem gambling in the UK. Chief executive Marc Etches said: “The Responsible Gambling Trust is very grateful for the support it receives each year from gambling companies of all sizes but we need to raise more if we are to continue to provide first-class support to problem gamblers in the UK.” NEW ASSOCIATION
Hong Kong Jockey Club, Tabcorp Holdings (Australia), the Macau Jockey Club, South Africa’s Phumelela Gaming & Leisure, the Singapore Turf Club, the New Zealand Racing Board, Racing & Wagering Western Australia, and the Saigon Racing Club have all joined together to form the AsianAfrican Tote Association (AATA). Members are to work together to enhance common interests in such issues as technological advances in totalisator and wagering operations; commingling standards and the harmonisation of betting rules; the sustainable funding of the racing industry; providing responsible wagering services; combating illegal and unauthorised wagering operators; and customer and marketing initiatives.
www.digitote.com Ipink@digitote.co.im
BB118-p16-18-Politics_09/10 03/07/2014 14:40 Page 1
The falling field size per race has caused the BHA to have a good look at what it can do to reverse the decline.
BHA thinking less is more for race numbers
ACTION IMAGES / JULIAN HERBERT LIVEPIC
Politics
RACING
ritish Horseracing Authority (BHA) is undertaking an industry-wide formal consultation with an eye to cut more than 300 races from next year’s fixture list. While the consultation relates specifically to the 2015 Fixture List, the questions it raises are deemed critical to ensuring that British Racing is able to thrive in the long-term. The consultation focuses on the impact of the fairly recent and significant decline in field sizes and increased number of small fields across all codes - and the ensuing repercussions on the competitive nature of racing and therefore its attractiveness to the end consumer, including racegoers, viewers at home and in the betting shop, or overseas. Chief executive Paul Bittar said: “BHA’s objective of producing compelling
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THE BHA IS CONSULTING ON FIELD SIZES AS PART OF THE 2015 FIXTURE LIST
and attractive racing that is consistently amongst the best in the world is being threatened on account of a horse population relative to the size of the Fixture List that struggles to provide consistently competitive fields. While based on the IFHA World Thoroughbred Rankings a majority of the world’s best 15 Flat races are held in Britain, the situation with field sizes more generally is one that BHA firmly believes needs to be addressed to ensure a secure platform for developing the sport in the medium and long term. “Quite simply, British Racing has to address the issue of small fields. Unless this trend is reversed, we are in danger of continuing
to underperform against a number of key targets and losing our competiveness as a betting product, both in Britain and in international markets. An improvement of performance in field sizes to create value as a betting product will position the sport to optimise future returns from the principal revenue streams that drive prize money. Importantly, it should be recognised that improved performance in this area will help to sustain and enhance the performance of the betting industry; a key partner and contributor to the sport.” The average field size in British Racing has fallen from 11.0 in 2005 to 9.0 in 2013 and while in more recent years the number of
ESSA undergoes corporate rebrand
fixtures has not increased, the number of races run has. Although in 2008 there was virtually the same number of fixtures run as in 2013, there were 652 more races run with 10,146 races in 2013 compared to 9,494 in 2008. This increase in races has coincided with a significant decline in the horse population of well over 1,500 horses. BHA believes that race planning measures alone will not be sufficient to meet competitive targets, and so the prospect of a reduction in the number of races (from seven to six) at certain fixtures during specific times of the year is also being explored as part of a multilayered approach. Where appropriate and supported
by data, these reductions could be offset - in part - if an undersupply of races exists at specific times of the year. Bittar added: “The data collated clearly shows that the issue of declining field sizes and increased frequency of small fields affects all codes of racing, albeit at specific times in the year. Our research has identified these pinch-points during the year which require attention. We are advocating a targeted approach to address specific issues, in order to build a platform from which the sport can prosper and which would underpin the wider ranging strategies for growth that are currently under development.”
ANALYSIS The numbers are stark and racing finds itself in a difficult position as the BHA acknowledges that it has no idea if removing races with smaller fields to bump up the numbers in other races will have a positive or negative effect on betting turnover. The betting industry has played its own part in this, wanting both high quality racing and enough racing content around the clock to appeal to customers. However, with bookmakers now ever more adept at sourcing betting content of greater geographical reach and variety, the pressure on racing to churn out figures is not as strong as it once was, and the reliance on the Levy is less because of the media rights payments through Turf TV. So now is the time to try something out, before things start to get worse.
New Betting Bill awaiting EU approval IRELAND
SSA, the regulated betting industry’s integrity body, has launched a new corporate identity, designed to reflect the ‘evolving circumstances and issues that have changed the landscape in which it operates’, welcoming members beyond its European borders. Building on the foundations and reputation of its existing visual identity, the new logo maintains some recognisable components, whilst integrating a more dynamic ‘look and feel’. Moreover, the organisation saw it as an opportunity to shift the focus away from “security” and include a robust and pertinent strapline, which more accurately reflects ESSA’s core mission of driving and safeguarding ‘sports betting integrity’. The new global identity is intended to represent all of these developments and safeguard ESSA’s
he Irish Bookmakers Association is now playing the waiting game for new legislation as the Betting Bill is now with the Attorney General, ready to be enacted once EU approval is given. The group, which represents 70 per cent of bookmakers and independent providers, said that the retail betting sector is in severe decline, having witnessed the closure of 366 shops. This represents a 27 per cent drop in the total number of units since 2008, resulting in the loss of approximately 1,700 staff. It has continuously lobbied politicians and government, warning that 500 jobs were at risk because of delays implementing the legislation, which would extend opening hours and reform the taxation system. In a recent statement, the IBA added that the Department of Finance has made several changes over the last four months which will extend the term for online licences to two years, and give Revenue Commissioners powers to ensure betting tax is paid by online operators. The bill is due to go before the Finance, Public Expenditure and Reform Committee, and then needs to pass through the Senate, back to the Irish government and be signed by the President. “However, there is one final hurdle,
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reputation as a professional, purposeful, and modern association. Chairman Mike O’Kane said that the World Cup ensured that sports integrity and betting are again at the fore, bringing renewed international focus, adding: “This represents an important opportunity to bring attention to ESSA’s mandate.” ESSA has been working continuously on improving its reporting and early warning system, which is built on the principles of know your customer details and other important transactional data rather than merely assessing movements in betting markets which is a relevantly impre-
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cise and inconclusive approach prone to false results. This year the association unveiled a new monitoring platform that is even more efficient and accessible. Secretary general Khalid Ali said: “This a great step forward in ESSA’s long and well founded journey, and I am delighted to unveil a new ‘look and feel’ to ESSA, which fully captures our mission and vision going forward. The new identity will serve to bring more visibility to our organisation and help build on the increasingly global reputation we have established as a trusted partner and facilitator of sports integrity.”
and that is Europe,” the IBA’s report said. “We need EU approval before the bill can be enacted, and the department is expecting this before the end of the summer. The IBA met with the government chief whip, Paul Kehoe and is he acutely aware of the 500 job losses looming if shops have to close from 6.30pm after 1 September. Taxing online operators who have escaped the betting tax net for so long, and competing inside every betting shop in Ireland is also a huge driver for the government.” Chair of the Irish Bookmakers Association Sharon Byrne added: “Minister Kehoe, who approves all of the legislation that goes through to the Dail, has committed to ensuring that the bill will get through all of these stages immediately upon receiving EU approval. If we receive approval by end of summer and get the final stage completed before end of September, that means the 500 parttime staff that are anxiously waiting for this legislation to prevent them from receiving their P45s won’t have to worry any longer. It also means that for the first time, the tables are turning, and betting shops are better positioned to compete with online operators, as they can open after 6.30 from September to April each year, and online operators will have to pay betting tax.”
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Enfield praised
Politics
Gambling Commission director of regulatory operations Nick Tofiluk has hailed Enfield Council’s successful prosecution of a man for running a money laundering scheme in connection with the running of an illegal poker den. He said: “This is an excellent example of how a local authority with Gambling Commission support is dealing with illegal gambling in whatever guise it is presented.”
Staff a key part of social responsibility obligations
Figures suggest low crime figures for LBOs The Safebet Alliance has been revised in time to be met by statistics suggesting that betting shops are the magnet for crime that many people believe. CRIME PREVENTION
fficial figures from Britain’s police forces appear to show that the UK’s betting shops have among the lowest level of crime of all high street retailers. Statistics compiled by the Association of British Bookmakers (ABB) suggest that this puts the betting industry on a par with fast food outlets and with far fewer incidents of crime than food stores, clothes shops or pubs. The figures have been released to coincide with the launch of the revised ‘Safe Bet Alliance’ (SBA) which sets out a series of guidelines for high street betting shops to prevent and reduce crimes. The SBA bought together the high street betting shop operators with the Metropolitan Police, Institute of Conflict Management, Community Union and Crimestoppers. Sarah Simpson, MBE, chair of the Safe Bet Alliance, said: “Generally, betting shops offer customers and staff a safe and secure place to enjoy their
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leisure time or work. As with any other retail business, bookmakers can and do suffer from crime, including robberies and work-related violence. The Safe Bet Alliance was formed in 2010 to tackle collectively these sorts of crimes - both as an industry and with law enforcement and other partners, including the Metropolitan Police, Community Union (representing staff), Crimestoppers, local government and the Institute of Conflict Management. “Since its formation, the Alliance has achieved some real successes - the number of robberies for example fell in London by 60 per cent in two years, and won the prestigious Home Office Tilley Award. The SBA has now, as you will have seen, also been endorsed by the Association of Chief Police Officers.” Paul Darling QC, chairman of the ABB, said: “The Safe Bet Alliance has proven to be a success, dramatically reducing crime rates and keeping staff and customers safe. Their safety is our number
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one concern and I am glad to see the crime figures show how effective the measures have been and continue to be. It is also good that other retail sectors are looking at the SBA to develop their own industry-wide measures.” John Park, assistant general secretary, strategy and policy for Community Union, said: “Community is pleased to be given an opportunity to play a constructive role in the development of these safety guidelines for betting shops. These figures show that when industry and trade unions are prepared to work together in partnership that workplace safety improves significantly. We know that many betting shop workers are still concerned about their safety at work and that is why the ongoing work of the Safe Bet Alliance is central to sustaining and enhancing safety in the industry.” The SBA was recently endorsed by the Association of Chief Police Officers which said: “The Safe Bet Alliance has proved to
be not only an effective tool for reducing violent crime, but also a c l e a r example of best practice for partners h i p working. The collaboration of police, bookmakers and other key stakeholders has led to an initiative that has stood the test of time.” The figures compiled from Freedom of Information requests to UK police forces show the number of incidents of crime reported by the following retails sectors between 1st January 2013 and 31st December 2013. Over half of the forces responded with the information. REPORTED INCIDENTS OF CRIME IN 2013 Fast food outlets - 2,163 Betting Shops - 2,269 Clothes shops - 6,226 Pubs - 18, 989 Convenience/food stores 59,431
ANALYSIS While the number of incidents in betting shops is low compared to other retail outlets, the figures still suggest one in four have to report a crime over the course of a year. This also doesn’t take into account the low-level incidents that might not get reported. However low, the industry is still determined to reduce them even further and the current efforts at developing the Safebet standards with a widerange of stakeholders shows that the risks are being taken seriously.
EGBA wants action against Interstate Treaty GERMANY
he European Gaming and Betting Association (EGBA) has labelled Germany’s restrictive Interstate Treaty as a failure and called on the European Commission to move against the law. Following a judgement by the Court of Justice of the European Union (CJEU) that it is possible for the Treaty to co-exist with the gambling licensing regime of Schleswig Holstein under EU law, the EGBA has gone on the offensive. The association suggests the two year grace period given to Germany for making its Inter State Treaty work will expire on 1 July 2014 and that as not a single sports betting licence has been granted under the Inter State
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MAARTEN HAIJER: ‘WE CALL ON THE COMMISSION TO PROPERLY ENFORCE EU LAW’
perators need to ensure that staff are properly trained and able to engage players with responsible and problem gambling guidance according to the latest research from the Responsible Gambling Trust. Operators are also advised to offer self-exclusion mechanisms which are quick and simple to implement. ‘Operator-Based Approaches to Harm Minimisation in Gambling’ forms part of the Trust’s rolling Machines Research Programme and reviews the nature and effectiveness of harm minimisation in gambling and proposes areas where further understanding should be developed to enable effective harm minimisation measures to be introduced. Among the priorities recommended in the review is the need to explore employee awareness and understanding of their responsibilities with regards to interacting with players who may be experiencing harm. There are also several recommendations surrounding self-exclusion including a detailed consideration of the technical, operational and legal issues that will facilitate or constrain the range of solutions to the enforcement of self-exclusion, the need to investigate industry and player perspectives on more innovative approaches to self-exclusion and the identification and trial of technology to facilitate its enforcement. Trust chief executive Marc Etches said: “In order to design and implement measures which minimise harm to problem gamblers we first need to understand what form that harm takes and how it can be feasibly tackled. The Responsible Gambling Trust’s programme of research is on course to report to government in the autumn of 2014 but this report highlights the significant work that needs to be undertaken by operators and policy makers to prepare the ground so that gamblers get more effective support from staff, through machines and elsewhere to minimise gambling harm.” One of the report’s authors, Professor Alex Blaszczynski, said: “A particular harm minimisation approach may be theoretically appealing, however, if it is unworkable from a legal, operational or regulatory perspective, it becomes less relevant. Despite the numerous drivers for more prescriptive, up-to-date guidelines for minimising gambling-related harm, there exists a dearth of reliable evidence. The basic position must be one of careful and strategic consideration of effective options.”
Treaty during this period, then the Treaty’s lack of viability and Germany’s failure to achieve its own goals are ‘evident’. EGBA secretary general Maarten Haijer commented: “The Interstate Treaty has evidently been a failure for Germany. The Schleswig-Holstein model has demonstrated over the last years that it can offer a reliable and safe gambling regulation for both operators and consumers. Other Länder should follow the example of not only Schleswig-Holstein but also successful regulatory models of EU Member States like Denmark or Spain, as the Netherlands did.” He added: “The two year-deadline the Commission granted Germany to prove that the Inter State Treaty is
viable and in line with EU law expires this month. As no sports betting licence has been granted it is clear that this will not be possible and we call on the Commission to properly enforce EU law in Germany and open an infringement case for failure to comply with EU law.” The CJEU judgement on the Digibet and Albers case dealt with the question of whether the successful multi-licence regulation for online gambling operators in Schleswig-Holstein can exist side by side with the highly restrictive Inter State Treaty adopted jointly by the other Länder states. The CJEU has concluded that having two different licensing systems in a federal state is not necessarily against EU law.
alan@xb-net.com
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Essential guide to Inbound business Politicians want operators to be licensed locally for consumer protection reason, despite the white label model introduced by the 2005 Gambling Act being a perceived success.
Deadline looming
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36 BetConstruct brings live betting capabilities to Carat Casino in Minsk
The main opposition to the new licensing regime is that it is just a front for a tax grab from the Treasury. A Remote Gaming Tax of 15 per cent of gross profits will apply to UK operators.
INTERVIEW
Using deterrence, disruption, education and threat of prosecution Jenny Williams, CEO of the Gambling Commission, answers some questions on the forthcoming change in licensing regulations for online operators. ow many applications are you anticipating? Do you have a timescale for working through them? We are anticipating around 150. We have identified those operators who already provide gambling facilities into Great Britain (because they hold a licence or authorisation from an EEA or white listed jurisdiction) and many of them have been actively engaging with the Commission about the application process. The transitional arrangements set out in the Statutory Instrument enable operators who are currently able to provide facilities for gambling in Great Britain (because they hold a licence in an EEA or white listed jurisdiction) to continue to do so if their advance application for a Gambling Commission licence or licence variation has not been determined by 1 October 2014. Operators who meet this requirement must have submitted an advance application with the relevant application fee by midnight (Greenwich Mean Time) on 16 September 2014 to be eligible for a continuation licence. If the application has not been determined by 1 October 2014 the applicant will be issued with a continuation licence that will enable them to continue to operate until completion of the application process. The average time to process an application has been six weeks but may be longer if the operator’s business is complex or enquiries from overseas take time to resolve.
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Operators in white label or EU jurisdictions are advised to apply for a UK licence by 16 September in order to receive transitional rights to continue to offer gambling in the country.
What’s the deal for operators in Gibraltar? Operators in Gibraltar will need to obtain the same licences as any other operator wishing to provide services to customers in Britain. What happens to operators who don’t apply by the 16 September deadline?
They will not be entitled to continuation licences and will not be able to continue advertising or offering gambling facilities to those in Britain from 1 October, 2014. How do you plan on enforcing the POC licensing? Our main tools will be deterrence, disruption, education and threat of prosecution. Working with other regulators in the UK and overseas, and with key organisations such as advertising carriers and payments systems, we will use these tools to combat illegal activity and make it more attractive for operators to comply with our standards rather than try to compete in the black market. Specifically, the Commission will enforce the remote reforms introduced by the Gambling (Licensing and Advertising) Act in the following ways: First, the Commission can take, and has taken, action against illegal advertising, and has already successfully worked with Google and Ebay for example to disrupt illegal advertising activity, and with Facebook to ensure they have procedures to identify illegal advertising. This is important, as advertising is the lifeblood of so many operators. The amended Act will make it easier for advertisers to identify what can and what can’t be advertised into Great Britain - only lawful gambling may be advertised. Second, the Commission is working in partnership with organisations that share its determination to tackle illegal or harmful activity. For example the Commission has reached an agreement with major payment systems organisations, notably Mastercard, PayPal and Visa Europe, to work together to block financial transactions with unlicensed operators which seek to use these payment systems for illegal purposes. These three organisations will cover the vast majority of
relevant transactions, as other service providers also use the Visa or MasterCard networks to process transactions. [Maintaining brand reputation will also be an important driver.] Third, the Commission is taking steps to educate and empower consumers. The current system makes it impossible for the Gambling Commission to advise consumers to ‘buy from Commission licensed operators’ as operators from anywhere in the world, subject to a range of different regulatory regimes, can transact with consumers in Great Britain. Under the new regime, we will be able to make it clear to consumers, for example through the new kitemark, whether or not operators are licensed to transact with them. Fourth, the Gambling Commission has powers to prosecute. How will the Commission regulate firms that remain overseas? In much the same way as we regulate those based in the Great Britain - primarily based on information/intelligence and evidence of compliance with our licence conditions and codes. Gambling is not so different from other forms of ecommerce which are regulated without day to day physical access. The technology and data used for remote gambling also offers great scope for effective less costly oversight of licensees and means of ensuring compliance and detecting noncompliance. Unlike non remote gambling, there is a complete audit trail for all transactions between the operator and customers/suppliers.
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to ... UK Licensing LEVY
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Government consulting on overseas Levy liability Making changes to the Levy has always been an issue fraught with problems, but the coalition government is going to give it a go anyway. n unexpected and late addition to the Gambling (Licensing and Advertising) Act 2014 was the proposal to extend the Horseracing Betting Levy to online bookmakers located overseas. As such, the government has since launched a very late, two-month long consultation on the matter in order to catch up with itself, but changes to the Levy framework have historically been complicated and ultimately unsuccessful. Underlining that fact is the knowledge that the legislation necessary to abolish the Levy was actually passed 10 years ago, yet it remains as the best option for the betting industry to fund horseracing. The government’s justification of the latest changes is to ensure there is a ‘level playing field’ between British-based and offshore remote gambling operators who take bets on British horseracing in respect of their contribution to the Levy. The 2014 Act gives the Secretary of State power to make regulations to secure that the bookmakers liable to pay the Levy include bookmakers who are required to hold a remote operating licence from the Gambling Commission. This will include the offshore bookmakers who will be required to obtain a remote operating licence as a result of that Act. The power is apparently deliberately broad to ensure the Secretary of State is able to make all the changes that may be needed to extend the Levy compatible with the UK’s obligations under EU law. However, the consultation underlines the extent of changes it will have to make. First off is a redefinition of the term ‘bookmaker’ itself, with the government prepared to amend the 163 Act ‘for the purposes of clarity’. It added: “In practical terms this means liability to pay Levy will extend to all gambling operators that hold an operating licence from the Gambling Commission and take bets from British customers on British Horseracing.” Dan Tench of law firm Olswang suggested that this could be ‘problematic’. He explained: “The 2014 Act allows the government merely to secure that bookmakers under the 1963 Act ‘include bookmakers who are required to hold a remote operating licence’ (section 2(1)). That would not appear to allow a wholesale amendment to the definition of ‘bookmaker’, certainly beyond those already caught and holders of remote operating li-
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cences. If any government proposal sought to extend liability for Levy beyond such persons, it is likely to be ultra vires.” The current Levy requires online bookmakers based in the UK to pay 10.75 per cent of gross profits on British Horseracing, regardless of who is betting on it. The government wants this extended globally, so any overseas operators licensed in the UK will have to pay Levy on all their British horseracing business, regardless of where that custom originates. One of the major issues surrounding changes to the Levy has been the constant threat of ‘state aid’ challenges by bookmakers to the whole regime if they feel too much political emphasis has been placed on the demands of the sport. Given that successive governments have shied away from testing the Levy under European state aid rules, it would suggest that the mechanism would not have a leg to stand on under such scrutiny. However there has been some developments in this area which might mean the Levy is slightly more robust than previously thought. In June 2013, the European Commission ruled that the French decision to take a parafiscal levy from online horserace betting was an adequate measure to ensure fairness between gambling operators in contributing towards the costs of organising horseraces, to ensure the quality of the races, and the positive effects that flow to the breeding of horses and the wider horse and rural sector. It also found that it would not distort the European market for horseracing. The key to this European green light though is the perception that the funds will be used for ‘common interest’ and the government wants feedback from the industry on exactly how this would be defined. The truncated consultation timetable (usually three months are required) demonstrates the government’s rush to get this implemented in time for negotiations for the 55th Levy due in on 1 April 2015. Given that parliament will be dissolved on 30 March 2015 for the General Election, this timetable seems ambitious. Consultation responses are required by 21 August, so stakeholders are advised to get their voices heard now or face the possibility of missing the boat.
The drip drip drip of costs could drive you mad Andrew McCarron don’t envy the discussions being had in some online gaming boardrooms as they weigh up the cost of the point of consumption licensing and taxation. You can just envisage the consulting lawyer asking the directors to sit down before breaking the news. It’s the metaphorical equivalent of a mechanic looking at your car engine after you’ve driven it to the garage because of a slight rattle. *sucks teeth* “It’s going to cost ya.” And cost operators it will do. Aside from the huge drag of the 15 per cent remote gambling tax on profits, there are a host of other additional costs just waiting to eat at the bottom line. “Can I please direct you to the Gambling Commission’s licence fee table where you will find the regulator’s annual demands? Have I mentioned that all your software is about to increase in price as the new law is forcing the majority of your supply chain to go through the licensing process as well? “Do you take horseracing bets? You’ll need to give 10 per cent of those profits to horseracing via the Levy Board, please. Who is your nominated third party arbitration service? You don’t have one? I suggest you give IBAS a call and ask how much it is to sign up with them. While we’re here, can we see proof of your contribution to training, education and research around problem gambling? No? Here’s the Responsible Gambling Trust’s website. Don’t forget to ask for a receipt.” It is an odd situation, as the 15 per cent gross profits tax aside, these are all little payments which in isolation don’t add up to much. The government certainly seems to think so, if the following paragraphs from the Levy consultation have anything to go by: “Extending the Levy to offshore operators will reduce the total level of profitability that is seen in this sector. It is possible that betting operators might attempt to pass a share of the Levy to consumers through worse odds, with a knock-on impact on consumer demand and, potentially, Levy yield. In all likelihood, however, this sort of effect will be mitigated by the high degree of competition in the sector. “Given that the impact of the extended Levy is likely to be predominantly met by the betting industry rather than the consumer, the lower levels of total profitability in the sector could have an impact on reduced investor dividends and lower funds for investment. These effects are expected to be small in respect of the total size of the betting industry and the impact on viability and performance of the sector as a whole is likely to be limited.” Indeed, the Commission has the power to revoke licences if there is no social responsibility donation or if there is no third party arbitration. And it looks like the same will happen with the extension of the Levy. However, it seems that checking these details tends to be low down on the priority list for the regulator, judging by the complaints made from those with vested interests. But the liability is still there and is likely to go up in the future rather than down. Given the total lack of enthusiasm from the industry for the Gambling Commission’s view that it can effectively enforce the new licensing system, it’s incredible to think that staying offshore is actually a viable option for some operators, ie those with small margins. This is particularly true when you consider that the Treasury itself happily wrote off 20 per cent of the market to unregulated sites just so it could tax the other four fifths at 15 per cent. And they have the gall to suggest the changes are to improve consumer protection when not only will it criminalise some bookmakers but also reduce choice and value for the punter.
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Essential Guide to ... UK Licensing
World-class business is the name of the game on the Isle of Man In an advertorial for the Isle of Man, Ray Davies, head of operations: e-gaming at the Department of Economic Development, explains why online gaming operators are still basing themselves in the jurisdiction. he Isle of Man is increasingly becoming the jurisdiction of choice when it comes to the location and administration of both licensable eGaming companies and software companies (that generally do not require a licence to be based on the Island). The Island is home to some of the most influential operators in the industry and the number of e-gaming licence holders continues to grow at a pace. eGaming is a sub-sector of the eBusiness sector which currently enjoys around 14 per cent of the Islands economic activity (GDP) and is the fastest growing sector on the Island. According to the latest statistics there are over 1500 top quality jobs and continued growth is expected. The reasons for this interest are numerous: the Island is recognised as a well regulated jurisdiction, and offers businesses a zero rate of corporate tax with no capital gains tax and low betting and gaming duty. The Island also benefits from a highly resilient world-class telecoms infrastructure and being an Island it has natural security and enjoys a stable economic, political and geographical environment. It is self-sufficient when it comes to power infrastructure and is supported by sub-sea gas and electricity supplies again providing diversity and resilience. The Island has excellent professional service providers with expertise in eGaming and related services and provides valuable assistance when establishing a gaming company and ongoing support.
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3-licence structure The Island enjoys effective regulation offering a simple yet flexible 3-licence structure that can accommodate most models of business; whilst operational costs remain competitive. The Network Licence is of significant interest to the business-tobusiness model, where Isle of Man based operators can host players from other Isle of Man operators, foreign operators or directly through B2C provisions and white-labels. This all adds up to enhanced liquidity and flexibility within the safety of the Isle of Man’s gaming regulations. The Island has attracted a cluster of supporting specialists and big industry names such as software providers Microgaming and Playtech. Our world-class data centers have further strengthened the Isle of Man’s gambling credentials and helped achieve the overall goal of developing a long term sustainable sector. The Island is also at the fore-front of ensuring that provision is in place for foreign-based operators to continue trading should something happen
in their primary jurisdiction that may otherwise prevent normal operations. The Island’s Disaster Recovery provisions permit foreign-licensed operators use of the Islands technical platform for up to 90 days without the need for a licence. This is generally ample time for the primary jurisdiction or the operator themselves to restore normal service.
creditors. The level of protection is as strong as a trust but without the expense and gives the regulator the ability to repatriate money to players if required. Operators can take interest from the account, but cannot access the fund for operational purposes which mean that the customer is paid first and can therefore bet confidently.
Safeguarding player funds Close relationship Player protection is another very important element of the Island’s offering. Player protection has recently come into focus as an important requirement from players and for operators wishing to reassure their players that their monies are in safe hands. Player protection is the requirement that an operator puts in place mechanisms to enable them to protect their players’ funds whilst they are held by the operator. This extends to the protection of any player winnings but not, of course to losses which then become the operators’ funds to do with as the operation demands. Crucially this means that in the unlikely event that the company becomes unable to continue to trade, as the player funds are protected under legislation, they are not determined to be operational capital and are therefore not available to the liquidator. So player protection does exactly what it says, it protects player funds whilst those funds are under the temporary custody of an eGaming operator. If anything happens that prevents the operator from continuing to provide a service to its customers, they will be repaid all funds held in their name. Whilst this is clearly beneficial to players, who are secure in the knowledge that their money is safe. There is a significant incentive and benefit for operators that offer adequate player protection. In terms of their reputation, operators are able to make a valuable promise to their customers that they are operating in a safe and trust-worthy environment which in turn has a knock-on effect for brand-building in an increasingly competitive industry. When considering further fund raising, operating in a regulated environment is extremely valuable in attracting corporate and private investment, and regulation that includes tried and trusted levels of player protection is even more so. As long as the guarantee to safeguard players’ funds is met, the Isle of Man is open-minded with regard to the mechanism used. The most cost-effective and popular however is the ‘protected client account’. All player funds (including winnings) are held with an Isle of Man licensed bank in a separate and segregated client account clearly designated as player funds and protected under Manx law from the company itself as well as its
In the Isle of Man there is a close working relationship between business and Government, helping the Island to be in its 29th year of unbroken economic growth, with low unemployment and strong Government reserves. The Regulator recognises the important of ensuring ongoing communication with other regulators which naturally result in cooperative agreements that encourage consistent regulation for joint operators – essential for any thriving online industry. Cooperation is the future for open gambling markets and the Isle of Man’s approach underlines its commitment to the international community as well as the gambling sector. Looking forward, we are confident that we will see continued strong performance in the sector, though there will be various challenges for the Isle of Man to face going forward. As part of the revamped regulations, the white list is expected to disappear and operators who have been able to sell or advertise into the UK from overseas because they have been regulated in a white list jurisdiction will be required under the new regime to hold a UK licence. We are confident that the Isle of Man’s robust regulatory regime will be taken into account when the UK issues their licences and by working closely with them, transitional arrangements are in place to make the passage to a UK licence relatively smooth and pain-free for our operators. We believe that operators should strongly consider basing themselves in the jurisdiction where they would like to be when they are successful as transferring operations to the most appropriate jurisdiction when they have achieved success can be more difficult. In a global industry that is increasingly competitive and where consumers are demanding better services all the time, the Isle of Man offers an unbeatable combination: reputation, quality and business efficiency. FOR FURTHER INFORMATION PLEASE CONTACT: RAY DAVIES HEAD OF OPERATIONS: E-GAMING RAY.DAVIES@GOV.IM +44 (0)1624 686406
Profile: Ray Davies ay Davies heads up eR Gaming Development for the Isle of Man Government. Ray has been employed within the public sector for over 24 years. He specialises in the development and implementation of strategy for the eGaming sector in the Isle of Man. He makes a key contribution to the formulation of policy and legislation, designed to ensure that the Island remains at the forefront of this industry. Ray takes a keen interest in monitoring developments within the industry, understands the likely impact on the Island as a leading e-gaming jurisdiction and provides considered opinion, advice and guidance as required. Within this context, Ray is also responsible for liaison with the private sector, licence holders and relevant public sector organisations to address operational issues and in provides strategic support to potential new licence holders. Ray has significant experience of working within the public sector and prior to his appointment worked in marketing where he is qualified to Masters Degree level, with significant experience in public sector financial services marketing. He specialises in communications and PR, branding and identity, exhibition management, database development/management, online marketing and photography.
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Software suppliers need to be licensed too Nick Arron, lead partner in the Betting & Gaming Team at Poppleston Allen, explains how the supply chain will also be shaken up by the new licensing laws. he implementation of the Gambling (Licensing and Advertising) Act 2014 and its impact on remote operators has been widely reported. One lesser known effect is the change which relates to gambling software providers who supply to remote operators. Currently, the requirement to hold a gambling software licence applies to businesses based in Britain or based overseas but supplying to operators in Britain. The implementation of the new Act removes from primary legislation the requirement for gambling software businesses that supply Gambling Commission-licensed operators based outside of Britain to hold a gambling software licence. To repair this hole the Gambling Commission have made changes to their Licence Conditions and Codes of Practice, adding in a new licence condition requiring remote operators to source their gambling software from Gambling Commission-licensed gambling software businesses. Or, in other
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words, in the future all gambling software used by a remote licensee must have been supplied by the holder of a gambling software operating licence. This will provide assurance on the integrity of the product and minimise the risk of the unscrupulous profit from remote gambling or harm to the licensing objectives. The change presents difficulties within the supply change, particularly relating to whether software is gambling software. Gambling software supply chains can be long and complex. The Gambling Commission undertook a consultation workshop in January 2014 at which they agreed recognised these concerns and accepted that it would be difficult to ensure that all gambling software operators could comply with the proposed requirement if it were brought into effect during 2014. Therefore at present we expect the condition to come into force on the 30 January 2015. Gambling software is defined in Section
41 of the Gambling Act as computer software that is used in connection with remote gambling but it does not include anything used solely in connection with a gaming machine (clearly not related to online gambling). Clearly, an operator providing a random number generator, or the game platform, provides gambling software. The Commission position is that any software which is designed for use in connection with remote gambling, that is intended to be used or is used by a gambling operator, to be gambling software. This includes any gambling specific application such as software used in: Virtual event pages; Virtual event control; Bet capture/matching; Settlement; Gambling records, showing detailed results of games. The Commission do say that they do not believe licences are required for suppliers of software used by non-gambling businesses as well as gambling businesses, such as
general infrastructure or business applications. For example, Microsoft, Oracle or Apple applications. However, the position is far from clear. The difficulty is that there are currently many gambling software providers out there, who provide to foreign operators who will soon be licensed by the Gambling Commission under the Gambling (Licensing and Advertising) Act 2014. They have a limited time, until the 30 January 2015, to make applications and many will not yet understand whether they are actually supplying gambling software as defined by the Commission. The Commission have said that they will be updating their advice on the circumstances in which a gambling software licence is likely to be needed. This cannot come soon enough.
LICENSING / GAMBLING / REGULATORY
PASSPORTING
GBGA believes ‘passporting’ a viable alternative he Gibraltar Betting and Gaming Association (GBGA) has several objections regarding the new licensing regime and is trying to delay its implementation via Judicial Review. The GBGA argues that the new law is unnecessary, particularly given that Gibraltar has one of the most effective regulatory regimes in the world. It argues that a more effective means to promote consumer protection was rejected by the government without proper consideration or explanation. This proposal, called Passporting, would ensure that highly experienced and effective local regulators retain responsibility for licensing their domestic industry but work with and share information with the Gambling Commission on a formally structured basis. The GBGA argues that the financial services industry has demonstrated that the GBGA’s proposed form of ‘passporting’ in reliance on both UK and local regulators is both necessary and effective. In addition, such passporting allows for the imposition of any necessary relevant UK regulatory requirements (e.g. reporting of suspicious activities) irrespective of the local licensing jurisdiction for UK facing activities. In financial passporting these are commonly known as Conduct of Business requirements. The GBGA’s proposal includes that
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the UK Gambling Commission will be able to impose conditions on operators via their approved local regulator. According to the GBGA, the passporting solution will bring better protection for UK consumers: - who will only be supplied by operators licensed by the UK or in other suitable participating jurisdictions where the operator is based and can be effectively supervised; - effective conduct of business rules: all licensed operators, whether licensed in the UK or another mutually recognised jurisdiction, must comply with applicable UK conduct of business requirements on a wide range of issues including advertising, anti-money laundering and reporting of suspicious activity, protection of consumer funds, sports integrity and problem gambling; - that the UK’s international regulatory reputation will not be tarnished: our model removes the need to license operators who have no legal or physical nexus within the UK or even the EU whom the UK will not be able to effectively licence, regulate or enforce measures against; - that the UK will be able to meet its obligations under a wide range of EU laws including tax, data protection and antimoney laundering laws.
THE LEADING LICENSING PRACTICE IN THE UK Nottingham 37 Stoney Street • The Lace Market • Nottingham • NG1 1LS • Tel: 0115 953 8500 London 88 Kingsway • London • WC2B 6AA • Tel: 020 7936 5869 email: info@popall.co.uk
www.popall.co.uk
Venetian Macao 18-20 November 2014
By Asia
for the world
For more information and to book your place at Asia’s ‘must attend’ gaming exhibition contact enquiry@MacaoGamingShow.com, visit MacaoGamingShow.com or telephone www.macaogamingshow.com +853 6363 0080 or +852 6329 6008 PRC hotline: +86 180 6387 4408
www.macaogamingshow.com
MGS is back and even better!
Feature rich
Now’s the time to book your attendance at MGS 2014 18th – 20th November. MGS is the only show that is truly representative of the Asian gaming industry. And the only event to earn the title ‘by Asia, for the World’.
Visit the highly acclaimed Slot Experience Center. Gain invaluable knowledge at the Macao Gaming Summit. Promote your brands on MGSTV.
Come and see the entire gaming industry Gaming Equipment & Accessories. Gaming Promoters & VIP Clubs. Casino Fixtures & Fittings. Promotional Services & Memorabilia. Food & Beverage. Entertainment & Performance.
MGS means business Exhibiting at MGS makes fantastic business sense. Reach out to casinos, integrated resorts, regulators and gaming affiliated businesses. 83% of MGS visitors are either decision makers or have direct input to purchasing decisions. An overwhelming majority (99%) said they would be returning to MGS in 2014.
The best networking in Asia Invaluable business networking opportunities. Get to know potential business partners in a relaxed and casual atmosphere.
And we will even help pay your way! The Macao SAR Government is once again offering attractive subsidies to qualified buyers from air fares to hotel accommodation, making MGS the key annual meeting hub for casino procurement teams.
Event Organiser
Event Co-Organisers
Event Contractor
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Retail Media deal
Asian marketing
New ambassador
Arena Racing Company has extended its media rights agreement with At The Races. The five year deal will take the partnership between the two companies to June 2019, 15 years after the commencement of the joint venture in 2004.
BetConstruct CEO Suren Khachatryan has described the G2E Expo in Macau as a ‘phenomenal success’. He added: “A large number of existing Asian operators, as well as new entrants to the market, are very keen to examine our product portfolio further and then take the product live later this year.”
Racing UK has signed a sponsorship deal with upcoming jockey Harry Bentley. He said: “I am delighted to be joining Racing UK and linking up with a racing partner who supports and invests in the industry.”
B2B Retail Listings
B2B content R et ai l
www.sis.tv info@sis.tv
gaming B 2 machines B R et ai l
NIAGS / JULIAN HERBERT LIVEPIC
DATA
www.inspiredgaminggroup.com sales@ingg.com
www.tab.at
SIS secures pre-race data In a deal full of initials, SIS has now signed up for PRD from RDC, after previously sourcing the official data from REL or the BHA, for LBOs. atellite Information Services, the provider of end-to-end products and services to the betting and broadcast industries, has extended its agreement as Official Pre-Race Data Distributors of British horse racing. SIS has formed a new agreement with PRD licence holder Racecourse Data Company to continue to supply the data to its retail and online customers until the end of 2018. SIS has had an arrangement with the British Horseracing Authority and subsequently its commercial arm Racing Enterprises Ltd (REL) since 1993 for the supply of Official PRD for use in its services. However, RDC, a joint-venture comprised of 57 of the 58 British racecourses, was assigned the PRD licence from REL with effect from 1 January. PRD is generated by Weatherbys and is the key component of information required to take a bet. It includes information on a racecard, such as final fields, owners, trainers, jockeys, weight, colours, draw and ratings.
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SIS’s production and distribution of racecards and data feeds will serve 10,450 betting shops in Britain and Ireland, including the retail estates of William Hill, Ladbrokes, Coral and Betfred. The agreement sanctions the distribution of PRD - both domestically and overseas - to newspapers, websites, TV and media businesses, mobile platforms, Pari-Mutuel operators, bookmakers, online betting companies, racing authorities and racecourses. Additionally, there will be no extra charge to existing SIS customers who will be able to use the data for all purposes reasonably ancillary to their bookmaking operations, including the creation of own-brand text services and TV channels and use on betting websites and mobile platforms, but not passing on to third parties. For on-sellers and distributors, a charge will be payable depending on what customers are doing with the data. George Irvine, managing director, SIS Betting, said: “Our over-riding aim in discussions with RDC was to protect our customers’ interests. Our customers’ prefer-
ence is for us to supply Official data wherever possible, but at an acceptable price. The advantage of taking data from official rather than unofficial sources lies in its integrity. It is also a fact that the law and technology are developing at such a rate that sources of unofficial data can be ever more easily tracked and closed down by rights owners, which makes reliance on unofficial data unsustainable for most businesses.” Rachel Coulson, head of business data, SIS Betting, said: “We are confident that this agreement is the best for our customers in both the retail and digital markets.” Richard FitzGerald, chief executive of Racecourse Media Group, and Tony Kelly, managing director of Arena Racing Company, both RDC directors, said: “This contract provides customers with the confidence of a long-term deal for what is a very significant piece of data. We will endeavour to work closely with our partners to showcase and expand interest in British horseracing by enhancing the way in which it is presented through existing and potential new data streams.”
Better games through innovation
B2B marketing R et ai l
B2B signage systems R et ai l
www.mrgsystems.co.uk sales@mrgsystems.co.uk
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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:
VIRTUAL 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
Inspired brokers Columbia deal nspired Gaming Group has signed its first virtual sports customer in Colombia; Gentec (the Betancur Group). The imminent change in legislation in Colombia (expected later in the year) will allow virtual sports betting in the country and Inspired will be the first to enter a new market. Inspired will provideGentec with its extensive range of Virtual Sports, and its bet management system and EPOS solution called BetBOX via its local distributor Algazara S.A. The products are expected to go live before November 2014 and eventually be rolled out to over 150 Gentec venues around the country. BetBOX enables any type of gaming, casino or lottery operator - including those without sportbooks - to broadcast a new virtual sports event every three minutes and take bets over-the-counter or on terminals. Players can also view all the upcoming events
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CONTENT Third US fixture on Turf TV urf TV is adding a third US fixture from the Stronach group to its existing package, which will be regularly scheduled from September. Each additional fixture will be similarly backed up with a full fixed-odds pricing service from the outset. Adrian Ford, MD of Turf TV, said: “The
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and odds, and compile their bets via Inspired’s new BetBuilder kiosks. David Betancur, general manager of Gentec, commented: “We are very excited about the launch of this world-leading product, which has a proven track record of quality and income performance with many companies around the world. I believe this is the perfect moment to introduce Inspired’s Virtual Sports to Colombia due to the Football World Cup this summer.” Steve Rogers, SVP of Virtual Sports and Mobile at Inspired, added: “We are extremely pleased to have partnered with Gentec as our first client in a country that is going from strength to strength. We have proven that Inspired’s Virtual Sports typically add 10-15% to sportbook revenues and, as players become more accustomed with sports betting in Colombia, we are confident of success in this market.”
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
addition of US racing last year has proved very popular, enabling our customers to expand their evening offer with high quality US racing presented specifically for a UK market. Following this success we are therefore delighted to announce the addition of a third regular fixture. We will continue to look for ways to provide new and innovative content, helping to ensure that quality horse racing remains at the heart of the British LBO.”
Coral takes Live Channel etradar has successfully launched its Live Channel for retail betting shops with Coral. The UK-based operator has already implemented the live sports channel in over 100 shops across the country with the intention to rollout 1,000 shops within 12 months. Betradar’s Live Channel, launched in summer 2013, is the first product ever to combine live odds, live statistics and most importantly live pictures from sporting events around the globe on one single screen. Olly Raeburn, Coral’s marketing director, said: “We’re always looking at ways of giving our customers more choice and we believe that the breadth and depth of additional content that Betradar’s Live Channel brings will add some genuine value to our product mix.”
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kevin@eagoco.com.tw
www.eagoco.com.tw
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Sportsbook
“” Virtual Betting is an extremely popular and growing product for online operators and their player base.
Martin Prantner CEO, Finnplay
Finnplay, the Finnishbased gaming platform provider, has signed a deal to integrate Betradar’s Virtual Horse Racing solutions. The first Finnplay customer to take the Betradar product is Belgium’s Supergame.be.
POOLS BETTING
olossus Bets, operator of The £10,000,000 Colossus, and the world’s biggest football and sports jackpots, has signed up with Betfair to launch Betfair Pools. Currently available at Pools.Betfair.com, Betfair Pools will offer unique Jackpot and Pools for the World Cup and into the regular football season. The service offers a partial ‘Cash Out’ option as successful tickets progress. Bernard Marantelli, founder and CEO of Colossus Bets, said: “We are delighted to be able to launch with Betfair, an operator who we have had a close association with for a significant period of time. We are looking forward to working with Betfair to bring a world class pool betting system to customers of football and other sports in the near future.” Mark Brooker, COO of Betfair, added: “We are excited to launch Betfair Pools,
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Colossal deals for Betfair and BETDAQ
With a jackpot of £10m every week, it’s little wonder that the two eminent betting exchanges have moved to integrate Colossus Bets into their offer. which enables us to tap into the significant scale of pool betting available on Colossus, whilst supporting the market leading position we have built in ‘Cash Out’ betting, and building upon that position with partial cash out betting in the pools product.” Betfair Pools, which can be also be accessed via Betfair.com, is available on both Desktop/Web as well as a customised smartphone and tablet experience on Mobile Web. The Betfair integration was hot on the heels of a similar deal with another betting exchange. Betdaq added the Colossus Bets product just ahead of the World Cup, with the Irish based sports betting ex-
change becoming the first live UK B2B partner of Colossus Bets. Betdaq users have the ability to bet on the Colossus without leaving the BETDAQ site. Colossus Bets gives customers the opportunity to win up to £10,000,000 by giving the correct scores in seven selected matches offered weekly. There are several other options to choose with ‘Pick 6’ and ‘Pick 3’ categories all with varying amounts on offer. Lewis Findlay, managing director of Betdaq, said: “With the £10,000,000 Colossus on offer every few days of the World Cup, we are greatly looking forward to providing our betting exchange customers with this proposition which is truly unique
and ground-breaking for this World Cup and into next season’s Premier league.” Marantelli added: “I’m delighted that one of world’s leading betting exchanges, BETDAQ, has become our first UK B2B partner. With our products, BETDAQ has the ability to offer their exchange customers, unprecedented lottery-sized football jackpots and our patented Fractional Cash-In feature, a world first in betting. “Fractional Cash-In allows players to bank profits on part of a ‘live’ ticket whilst retaining the remaining part of the ticket to play for a corresponding share of the jackpot prize and should become industry standard given the ever increasing popularity of multiples and in-play betting.”
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PLATFORM Kambi can for Casino Iveria ambi Groupis to deliver its multi-channel, fully managed sportsbook solution to Iveriabet, which is part of Casino Iveria, the Georgian land-based casino group. Sebastian Molina, board member of Iveriabet, said: “Iveriabet aims to be in the forefront of the online and mobile gaming experience. Partnering with Kambi, the market leading B2B sportsbook provider, enable us to offer a first-class product and bring a new quality in sports betting to our players.” Kristian Nylén, CEO of Kambi Sports Solutions, added: “I am delighted that Iveriabet has chosen to partner with Kambi. This agreement is strategically important as it provides an entry point into a newly regulated geographic market.”
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Sportnco sets up Zeturf rench betting platform supplier Sportncois now powering over half the operators in the French betting market after getting Zeturfup and running with a new sportsbetting facility for its French customers. Out of the 11 sportsbetting operators in France, six are now provided by Sportnco: NetBet, Genybet, Zeturf, France-Pari, Feelingbet and the casino group JO. Sportnco has also set-up a betting platform for the horserace betting operator’s international business and has also got the PMU’s Belgian subsidiary Eurotierceup and running. Each of these platforms is provided in three languages: French, Dutch and English for Eurotierce, French, English and Spanish for Zeturf.
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DATA EveryMatrix adds Sporting feeds veryMatrixhas entered into a partnership with software and data services provider Sporting Solutions, which will see the latter’s data feeds adding boxing, cricket, darts, snooker, Gaelic games and Australian Rules football to the OddsMatrix service. It will also increase the number of markets on popular sports like football, basketball and tennis. Ronnie Whelan, business development director of Sporting Solutions, said: “We have successfully entered into partnerships with a number of other leading suppliers in the industry and I’m sure this relationship with EveryMatrix will be very beneficial for both parties. They have some big clients and want to improve the product they offer them, so our rich heritage in modelling, pricing and trading means we are the perfect partner to help them achieve that.”
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SOCIAL
B2B Sportsbook Listings
Greek media firms launch Tipmaster.gr
B2B betting platform S po rt sb
significant multi-media partnership between satellite TV broadcaster Novasports.gr, radio owner NovaSport-FM 94,6, sports newspaper SportDay and social betting platform provider Oddslife will see sports fans able to engage and compete against each other on an international level. The four organisations have joined forces to launch Tipmaster.gr - a social prediction game hosted on Oddslife’s social sports betting platform – which offers sports fans interactive entertainment around a wide range of sport, including Greek and European football, basketball and volleyball. The Oddslife platform engages sports fans using a free-to-play social betting game, allowing them to challenge friends and fellow countrymen, win virtual rewards, compete in live betting tournaments and interact socially within the community; all in a socially branded world, created and operated by local trusted sports media brands. George Koutsotheodoros, director at Novasports, commented: “Tipmaster.gr is
going to revolutionise the way people interact with sports in Greece and we are very pleased to be able to offer the game free of any charge to our customers. While we will all be following Greece this summer, Tipmaster will make all the other games at the tournament as vital to follow.” Yiannis Tsiachristas from NovaSport-FM commented: “We’ve been a big fan of the Oddslife platform for some time and are excited to bring it to Greece. We are especially excited about the global competition where our Greek fans will be able to challenge sports fans from other media partners across the Oddslife global network.” Oddslife CEO and founder Rasmus Sojmark added: “The passion for sport in Greece means that Tipmaster.gr has found a good home and we couldn’t have chosen better partners given their expertise and audience. We will provide them with a market leading platform, consultancy and local country support and in return they provide us with marketing budgets and local operational expertise which are invaluable to any local partnership of this size.”
Finnish and Slovakian partnerships
manufacturers, advertisers and betting companies, but it’s important that they respond to increasing demand for digital content.”
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portradar has signed a data partnership deal with the Finnish Football League Association (FFLA) to become the ‘Official Data Partner of FFLA/ Veikkausliiga’. It has also signed a multi-year deal with Slovak League Clubs Union (ÚLK) and its exclusive marketing representative UFA Sports Slovakia to become the Official Data Partner of the two top level leagues in Slovak club football. Sportradar have acquired the worldwide and exclusive right to collect, archive and distribute sports data of all matches of the Veikkausliiga and top two levels of the Slovakian leagues and distribute such sports data as “Official Data” to the media and betting industry.
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Digital demand up nline has overtaken print media for the consumption of sports content, according to a report from Perform, Kantar Media and SportBusiness Group. Second only to TV, this OLIVER SLIPPER marks the first time online has overtaken print in all markets surveyed. Oliver Slipper, JointCEO, Perform, said: “The results of the 2014 Know The Fan report reflect the rapidly evolving media landscape, with sports fans continually looking to digest content on the move and as it happens. This provides a number of opportunities to all stakeholders in the digital sports media industry, from rights holders and sports associations to devices
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IN-RUNNING Fast mover advantage BTechhas launched its fast markets betting product, which offers players fastpaced betting options with outcomes settled in only one or five minutes. Fast markets give players an enhanced betting experience that allows them to predict whether a specific event such as a goal, corner, free kick, throw in or a card will take place during the next one or five minutes and see the outcome settled immediately. 10Bethead of player affairs Daniel Caswell commented: “The product was deployed on our platform a few days before the start of the 2014 World Cup and so far, we’ve noticed that fast markets have generated a considerable amount of soccer bets while increasing average turnover per player and attracting casual players looking for a faster betting experience.”
news & B2B analysis S po rt sb
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Sportsbook PRICING Mobile will focus on main markets ichard Hogg, CMO at Betting Promotion, believes his firm is in a good position as the market goes mobile. He explained: “It is going to be interesting in the future as mobile takes over desktop. Our main markets are very successful, and this is where we see the future in having accurate pricing. Good luck trying to display hundreds of markets in front of someone looking to place a bet on current live action!” The firm has recently focused on its own trading where improved processes have led to an increase in revenues. “We have been working hard improving our proprietary trading, which has helped our bookmaker clients see further improved margins. Only last year we highlighted how we were matching the established groups with 11 per cent margins. Now we are seeing many clients achieving over 16 per cent.” Betting Promotion has added 14 new clients to its platform since ICE and now provides companies in Nigeria, Asia, Bulgaria and Turkey, with a group running hotels and cruise liners the next to be launched. Hogg added: “We have proven time and time again that our unique pricing and risk management systems benefit our clients. We pride ourselves on quality rather than quantity. That said, the team is currently in the process of developing substantially more markets for basketball and tennis as these are two growth areas, but it is important we get the pricing structure right before we go live.”
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PLATFORM
Bit8 adds FSB betting solution to system
ANGELO DALLI: ‘A REAL DEMAND FOR A FULLYMANAGED SPORTS BETTING SERVICE’
The Bit8 platform is going from strength to strength with the addition of the FSB sports betting product. latform provider Bit8 is to integrate FSB Technology’s fullymanaged sports betting solution allowing its clients to benefit from in-play and pre-game betting opportunities across more than 20 sports. With the comprehensive sports betting service tightly integrated into the Bit8 platform, FSB will become Bit8’s preferred sports betting platform partner. Angelo Dalli, CEO Bit8, said: “We have seen a real demand for a fully-managed sports betting service from our licensees. When we met the FSB team it was immediately obvious that their modern sports betting technology would work well on our product agnostic platform. FSB are in line with our thinking that the industry is ready to migrate away from legacy platforms. This partnership makes great commercial sense, it strengthens our position as a plat-
form supplier and improves FSB’s distribution opportunities.” The sports betting platform includes an automation layer to manage raw data feeds, proprietary live price models, bet acceptance and risk management software and customisable CRM and marketing campaign tools. The sports betting platform is operated as a fully-managed service and greatly reduces the cost and labour required to participate in the regulated sports betting market. Bit8’s technology agnostic gaming platform has also been making waves in the industry with the Malta-based company signing a raft of new customers in the last few months. The Bit8 platform offers an advanced bonus system that works across multiple product verticals and seamless wallet integration. The data mining and player segmentation, coupled with an artifi-
cial intelligence rule engine and CRM addons give a cutting-edge to operators while maximising retention and the overall player lifetime value. David McDowell, co-founder and CEO of FSB Tech, said: “FSB and Bit8 share the same philosophy - we both offer disruptive, innovative technology to an industry that is reliant on legacy platforms. “We’ve developed the industry’s most technically advanced sportsbook platform in the market today, while Bit8 has developed a modern, product agnostic platform complete with highly advanced CRM tools. Combining our strengths will allow Bit8 licensees to offer comprehensive sports betting service with the industry’s best campaign management tools. Creating a single view of the customer’s activity across sports and casino is an unbeatable combination.”
use of the existing live sports data by combining this data with fast-paced casino game concepts. The result is an innovative series of four live sports betting games, which will be extended in the near future, providing punters a new, immersive and fun betting experience. Betradar’s managing director of sales, Erik Lorenz, commented: “With In-Play Minigames, we are taking the next step in the gamification of live betting. Customers demand new entertainment products and services from betting operators and this is exactly what we provide with In-Play Minigames. With a new betting cycle starting every 3 minutes in average, we convert any live event to a
thrilling gaming experience.” In-Play Minigames are available as web widgets, placed into the bookmaker’s website sidebar and as full screen web apps for mobile. The integration into any existing or new bookmaking infrastructure is facilitated with an eWallet integration using Betradar’s new Remote Game Server (RGS), launched beginning of this year. Furthermore, NextUp: Soccer is a new football live betting game based on the concept of predicting the next match incident in a live soccer match and was also launched with this product update. Up to 30 spins and payouts per soccer match with betting markets continuously open throughout the match allow NextUp: Soccer to be the perfect second-screen betting solution.
its content in Belgium’s newly-regulated online market via NV Chip Amusement. Players of the Antwerp-based operator’s new site www.belgium123.be will now have the opportunity to watch scheduled action unfold via live video streaming. Steven Spartinos, co-CEO of Kiron, said he was delighted to sign a multi-year licensing deal in a vibrant, emerging market at such a crucial time. He added: “Kicking things off during the World Cup with an established operator is great news and we’re confident both Chip Amusement and its customers will enjoy our content. Having complementary products like virtual sports available during a spike in activity will offer both choice and improved performance when they need it most.” Belgian players will benefit from a recent upgrade to Kiron’s virtual games that includes better graphics and a popular new trotting product. Chip CEO Pieter Coremans described the Kiron content as ‘an extremely advanced and exciting key component of the new gaming site’. He added: “Players will identify with this action due to the fact horseracing has been a popular choice with players in Chip’s arcade over the past 26 years.”
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IN-PLAY Minigames launched with 500.com etradar has launched its new In-Play Minigames product, which offers a variety of real-sports game concepts with fast-paced betting cycles. With Asian sports lottery 500.com, Betradar’s first customer has already successfully launched Betradar’s latest gaming innovation. Betradar betting solutions are currently supplying in-play data for more than 50,000 soccer and tennis matches annually with live odds for over 100 different bet types. With In-Play Minigames, Betradar makes
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VIRTUAL Kiron moves into Belgium
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irtual games specialist Kiron Interactive has agreed a deal to distribute
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iGaming Keno launch
New master
Realistic Games’ Andy Harris has said that they created their own mobile Keno game because of a lack of choice on the market: “We’re confident it will be popular with players in a wide number of markets who enjoy the format and want to play on the move.”
Net Entertainment chief product officer Simon Hammon is pleased at his firm’s latest slot: “The Wish Master builds on our portfolio of cutting-edge video slots. The graphics are stunning, the gameplay is secondto-none and we’re confident our customers and their players will enjoy the game play experience.”
Pots of fun Betdigital’s popular offline Super Pots Bar-X game has been selected by Ladbrokes to be part of its online catalogue. Ladbrokes Richard Poole said: “Super Pots Bar-X is an exclusive multi-channel title and we are really pleased with the initial performance.
Portfolio addition GameAccount Network CEO Dermot Smurfit has commented on his firm’s game distribution deal with Novomatic’s Greentube: “Novomatic is a hugely important addition to our portfolio and it is an honour to be able to work alongside an organisation widely regarded as a pioneer in the international gaming industry.”
MOBILE
A bespoke service from a white label supplier
hy the change of direction from B2C to B2B? Jack Gold has been a real success and will run as normal. But we wanted to leverage its market-leading platform to harness the team’s expertise. Our technology was always designed to launch additional brands with short lead times and little fuss. Once the basics are done there’s not much required for partners to launch their own brands. They also benefit from the economies of scale being able to run current and additional services under one service provider.
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Will your background in operating help you as a supplier? Without a doubt, and not just our experience here. Everyone has worked with a leading operator before and appreciates the challenges and the needs of the end customer. As a business we also understand how important it is for operators to take a single view of the customer. When we integrate with businesses that already have a database of customers, therefore, we need to be aware of activity on other products.
Ed Andrewes, CEO of Locus Gaming, explains the shift in his company’s philosophy and what he hopes to bring to the white label market. It’s a competitive space with lots of big suppliers already. What’s different about your offering and how will you be successful? We’re one of the few white label suppliers offering a bespoke service with products spanning licencing, hosting, platform, IT support - and even marketing support where required. We’re not constrained by the products we offer like many casino software suppliers. We use the NYX platform and offer any games we want, having already integrated with eight suppliers and are talking to four more. Similarly, the small, pure white label suppliers offer no flexibility to operators at all it is merely a re-skin of the existing service. Above all, we offer partners the best service across all platforms to their customers. Who will benefit from partnering with Locus? There are a number of potential partners,
including: Companies with access to large synergistic databases and brands in the UK currently not in the gaming sector Existing sports betting operators without a casino service Companies targeting markets outside the UK. The companies who don’t have the time or wherewithal to get a licence will be able to operate under the Locus Gaming Isle of Man licence Our challenge will be securing partners who can recruit customers at an effective cost through strength of brand, access to specific markets or existing databases. What type of deals do you have in the pipeline and you focused on any particular markets? We’ve signed two white labels deals already: one has access to a particular target
group in the UK; the other is an existing brand which will complement Jack Gold. We also have an exciting deal with a US operator who require licencing elements of our services. We’re focusing on white labels operating in regulated markets with our licence or one they hold. Since the start you’ve concentrated on mobile. Will that prevail? Our promotional effort with Jack Gold was focused on new devices. Our intention was to showcase an innovative capability to users getting a poor mobile offering elsewhere. We took that decision to acquire users, but made sure we also offered a marketleading service on desktop. We don’t expect every partner to share the same focus and wouldn’t restrict them to mobile only as a result.
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BettingBusinessInteractive • JULY 2014
MOBILE Inspired deal for William Hill nspired Gaming Group has signed a deal with William Hill to supply premium HTML5 games to their mobile gaming platform. The first HTML5 game launched under the new partnership is White Knight, with more games such as Goddess of the Amazon due to be released during the course of 2014. Luke Alvarez, CEO of Inspired, said: “Cross channel convergence is a key philosophy of Inspired’s global expansion strategy and White Knight is the first of many exciting HTML5 Inspired games to be released to William Hill’s mobile gaming platform in the coming year. Inspired’s mobile games currently support iOS and Android devices and will be available on Windows devices soon.�
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Eurobet integrates live dealer games volution Gaming has launched a Mobile Live Casino service on behalf of Italian operator Eurobet.it. Initially, Eurobet will offer players on leading smartphones and tablets direct access to Evolution’s selection of Mobile Roulette, Blackjack and Baccarat live tables. Evolution Live Casino for desktop will not be added yet to Eurobet’s existing line-up of Casino slots and table games, though the option remains open to do so. Eurobet Italy’s managing director Paolo Bazzocchi said: “We have a strong strategic focus on the Mobile opportunity - it’s a fast-growing channel and we must give our players the best selection of live tables for mobile play, which is represented by the Evolution Mobile Live Casino offering.�
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SLOTS Leander content integrated into CasinoEngine veryMatrix has partnered with casino content developer and aggregator Leander Games, allowing EveryMatrix’s CasinoEngine to continue to deliver more content from third party game development houses via Leander’s gaming server. EveryMatrix chief executive Ebbe Groes commented: “Having Leander as part of our CasinoEngine will cement us even further as the largest casino content aggregator on the market. Already now, several of our clients have lined up to get Leander games added to their offering.� Leander Games CEO Steven Matsell added: “We
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SLOTS
B2B iGaming Listings
Bwin.party signs up IGT portfolio
B2B casino iG am in
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LEIGH NISSIM
lobal gaming entertainment giant International Game Technology (IGT) has partnered with bwin.party digital entertainment to launch many of IGT’s top-performing interactive games on the bwin platform. IGT is supplying its content to bwin.party, which has recently launched online poker and casino offerings in New Jersey under the licence of Borgata Hotel Casino and Spa (a long-term IGT land-based casino customer), for distribution in New Jersey at nj.partypoker.com and internationally at partypoker.com, bwin.com, as well as at other bwin.party brands in nationally regulated European markets. The bwin.party site gains access to IGT’s complete game library via a one-time, simple integration to the IGT rgs (remote game server) solution.
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Golan Shaked, director of games at bwin.party, said: “From the casino floor to online and mobile devices, IGT games are worldwide player favourites. Adding IGT’s portfolio of instantly recognisable, marketattuned content to our brands including bwin, partypoker and PartyCasino will provide great, additional fun and entertainment for our players.� Leigh Nissim, IGT commercial director of interactive, added: “This agreement is a key milestone in our journey across regulated markets - it significantly extends the presence of IGT games in key markets around the world. Bwin.party is one of the biggest igaming operators on the planet and our partnership confirms that as a supplier of premium casino content in regulated markets, IGT is a standout choice.�
Cross-platform Casino Solutions www.greentube.com N O V O M AT I C - W I N N I N G T E C H N O L O G Y Marilyn Monroe Photos ŠRenaissance Road Inc. 7+( +2)) ‹ +RIIZRUOG //& ‡ 7+( +2)) DQG '$9,' +$66(/+2)) DUH WUDGHPDUNV RI +RIIZRUOG //& DQG DUH UHJLVWHUHG LQ WKH 8QLWHG 6WDWHV DQG RWKHU IRUHLJQ QDWLRQDOV 8VHG XQGHU OLFHQFH IURP 0; 'LJLWDO //& $OO ULJKWV UHVHUYHG
B2B publications iG am in
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making sense of the gaming industry are incredibly proud that EveryMatrix has recognised Leander as a strategic partner to increase the portfolio of games partners making their games available via the EveryMatrix software.�
B2B software iG am in
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iLottery for Portugal eoGames has been awarded a new contract to expand its iLottery offering at Santa Casa da MisericĂłrdia de Lisboa, the Portuguese Lottery. “We’ve developed a very close working relationship with JSC, the gaming division of SCMLâ€? said Ilan Rosen, CEO of NeoGames. “The growth of Instant Ticket sales experienced by SCML in recent years is a reflection of the Lottery’s hard work and dedication to providing a rich and exciting gaming experience in a secure and responsible manner for the people of Portugal. We are committed to building on the success of this partnership and will continue to explore with the lottery new and innovative products and marketing strategies.â€?
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Coral takes Williams titles online illiams Interactive, part of the Scientific Games Group, has launched games from its vast content library with the online casino brands run by Gala Coral Group, including Coral.co.uk. Mark Kemp, e-gaming director for Gala Coral Group, commented: “We’re excited to be live with the Williams Interactive Game Server, which builds upon our successful relationship with SG Gaming to provide our players access to their favourite SG Gaming slot games in our shops, online and on their mobile devices. Players can additionally deposit and collect funds from their Coral Connect multi-
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channel single wallet anytime, anywhere to play their favourite games. We’ve worked with Williams Interactive to provide regular top multi-channel game releases in 2014 to keep delivering our customers’ favourite games in every shop, online or on mobile.�
www.inspiredgaminggroup.com sales@ingg.com
Party time from Microgaming icrogaming has unveiled two new online slots for July; Fish Party and RoboJack. Head of casino games Mike Hebden explained: “Fish Party and RoboJack are both light-hearted, entertaining games which will appeal to a wide-ranging audience. Furthermore, both slots have a rich feature set with ample winning opportunities. We know that players want engaging bonus rounds and features so we expect these games to be very popular.� Fish Party is a five reel game featuring sea creatures, while RoboJack includes electric free spin features, where a robot and its associated bonus are randomly selected for the player.
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MIKE HEBDEN
sales@microgaming.com www.microgaming.com
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BettingBusinessInteractive • JULY 2014
iGaming CONTENT
USA
Double century from GameAccount ameAccount Network has confirmed that it is now providing operators with a choice of over 200 different slots from the world’s leading games creators including IGT, Bally, SHFL, Ainsworth, Aristocrat, Incredible Technologies, Konami, MultiMedia Games, Gamomat, Reel Time Gaming, NetEnt, Slot Symphony, High Flyer Games, Barcrest/SG Gaming and most recently, Novomatic, underscoring the gaming maxim ‘Content is King’. Daniel Lindsay, commercial director at GAN, said: “In a commitment to exceed the expectations of our customers we have developed a portfolio of slots which no other provider can surpass for either breadth or depth. The standout features of the
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Resorts turns to Sportech and NYX JV SNG Interactive, the joint venture between NYX Gaming Group Limited and Sportech, has entered into an agreement to provide a new online gaming platform to the Atlantic City-based Resorts Casino Hotel. This follows the November 2013 decision by the State of New Jersey to legalise online gaming. The iconic Resorts was the first casino in Atlantic City when it was converted in 1978 and was also the first casino outside of Nevada in the US. Sportech and NYX will each invest up to US$2m in the joint venture for this project and it is anticipated that the gaming platform will launch by January 2015. Once live, players will be able to play a full range of on-
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DANIEL LINDSAY
GameAccount Network slot portfolio relate to the use of an open invitation platform and its content agnostic status. What this means in practice is that anyone can integrate the system, an operational feature which delivers complete and total flexibility to the customer, in the process enhancing player choice and variety.” He added: “For land based operators looking to diversify and profit online, GAN can effectively ‘lift’ their entire land based slot floor and place it into the online space. Content is King, and in this respect, by supplying the games that people love to play, GAN is driving success for its operating partners.”
line casino games provided by SNG, including roulette, blackjack and slots. SNG will also provide turnkey operational support which will include customer support and other services. This agreement is the first initiative in Sportech’s strategic aim to add an iGaming business division to its extensive retail, telephone and online betting activities in the US, and follows the establishment of SNG late last year with the Las Vegas-based NYX. Resorts is the trading name of DGMB Casino LLC, an organisation that is controlled by the family interests of the New York based property developer, Morris Bailey, with a minority shareholding held by Mohegan Sun, the Connecticut-based casino
operator. Mohegan Sun also own a racecourse and casino in Pennsylvania and are an important existing customer of Sportech through both their casino based racebook and racecourse betting activities. Ian Penrose, chief executive of Sportech, said: “We are delighted to have reached this agreement with such a well-known Atlantic City venue. The establishment of online gaming activities in New Jersey represents an important next step in the development of our US business and we are well positioned for future growth across the US as regulation permits. We have worked closely with Resorts and NYX for a number of months now, and look forward to the planned launch.”
part of their business. The deal will allow Net Entertainment to maximise its distribution reach through William Hill’s major channels which includes retail, online and mobile.”
berg, CEO at Quickspin. Richard Poole, head of product at Ladbrokes, commented: “Ladbrokes are committed to providing our customers with the best and most engaging content, we achieve this by working with best of breed suppliers and Quickspin fits perfectly into this strategy. Adding their content to our Vegas tab will further strengthen our position online and enable us to attract and maintain players.” Lindberg concluded: “Adding Ladbrokes to our list of renowned operators will further strengthen our footprint in the UK market, which has been one of our strategic initiatives for 2014.”
SLOTS GAMING MACHINES
Quickspin rushes to Ladbrokes
Net Entertainment to hit Hill’s LBOs lots developer Net Entertainment has signed its very first gaming machine deal with UK bookmaker William Hill. This agreement complements the existing online partnership with William Hill and Net Entertainment games will soon be available in William Hill’s licensed betting offices (LBOs). Björn Krantz, chief of GMO and MD at Net Entertainment Malta Ltd, said: “This is a big step and a milestone. Net Entertain-
uickspin has entered into a partnership with one of the world’s leading betting and gaming enterprises, Ladbrokes. Under the terms of the agreement Quickspin will provide Ladbrokes with its full suite of games, including titles such as Sinbad, to be launched under the Ladbrokes Vegas tab. “I am extremely pleased that Ladbrokes has chosen Quickspin as supplier of best of breed content. Ladbrokes is one of the most reputable operators in the UK and we’re very proud to see our games form a part of their offering” says Daniel Lind-
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ment is one of Europe’s largest suppliers of online casino games and we are very excited to have been given the trust, and confidence to extend our delivery commitment to William Hill now also covering the retail
Dedicated to servicing the needs of the international betting and iGaming industry, Betting Business interactive is your partner of choice if you’re searching for the very best journalism, the widest distribution and inventive advertising opportunities. For more information, simply contact John Sullivan at jsullivan@gbmedia.eu or call us on +44 (0) 1204 396 397.
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BettingBusinessInteractive • JULY 2014
Back office Rosy future
B2B Back Office Listings
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B2B events
Sponsorship deal Gambling law firm Harris Hagan is again sponsoring the US Online Gaming Conference, which this year will take place at Caesar’s Palace, Las Vegas on 18 and 19 September.
Callcredit Information Group CEO John McAndrew is looking ahead after an impressive 2013: “I see the next five years as a very exciting time for us as a business and for our people under the ownership of GTCR, our new investors.”
ffi ce B ac k O
The Bookmakers’ Trade Fair 2014
GiGse partnership Payment solutions firm Optimal Payments has announced it will be a VIP sponsors at the 14th annual Global iGaming Summit & Expo (GiGse) from July 14 to 16, 2014 at the Hyatt Regency in San Francisco.
SPORTSBETTING
October 9th 2014 at Wolverhampton Racecourse organised by
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THE CASINO CARAT IN MINSK, BELARUS
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BetConstruct brings live betting capabilities to Minsk casino The Carat Casino in Belarus can now offer its customers a wide range of betting opportunities, including comprehensive live betting options, thanks to its partnership with BetConstruct.
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,ĞůƉŝŶŐ ďŽƚŚ ŽŶůŝŶĞ ĂŶĚ ƐŚŽƉͲďĂƐĞĚ ďƵƐŝŶĞƐƐĞƐ ƚŽ͗ x ŵĞĞƚ ƌĞŐƵůĂƚŽƌLJ ĂŶĚ ŵŽŶĞLJ ůĂƵŶĚĞƌŝŶŐ ƌĞƋƵŝƌĞŵĞŶƚƐ x ŝŵƉƌŽǀĞ ŽŶͲďŽĂƌĚŝŶŐ ĂŶĚ ƌĞƚĞŶƚŝŽŶ ƐƚƌĂƚĞŐŝĞƐ x ŝŵƉƌŽǀĞ ƚŚĞŝƌ ƉůĂLJĞƌ ĂĐƋƵŝƐŝƚŝŽŶ x ĨŝŶĚ ƚŚĞ ŵŽƐƚ ƉƌŽĨŝƚĂďůĞ ƉůĂLJĞƌƐ x ŐĞƚ ŝŶƚŽ ƚŚĞ ŵŝŶĚƐĞƚ ŽĨ ƚŚĞ ƉůĂLJĞƌ͕ x ƚĂƌŐĞƚ ƚŚĞŵ ŵŽƌĞ ĞĨĨĞĐƚŝǀĞůLJ͘ Ăůů ƵƐ ŽŶ Ϭϭϭϯ ϯϴϴ ϰϯϬϬ Žƌ ĞŵĂŝů ŝŶĨŽΛĐĂůůĐƌĞĚŝƚŵĂƌŬĞƚŝŶŐ͘ĐŽŵ ǁǁǁ͘ĐĂůůĐƌĞĚŝƚ͘ĐŽ͘ƵŬ
echnology supplier BetConstruct has helped a new Belarusian casino offer sportsbetting to its clientele by providing a whole betting system. Casino Carat, one of the largest and most attractive casinos in Belarus, is situated in one of the central squares of Minsk and is considered to be a very respectable leisure and entertainment venue. The interior of the casino is decorated in a luxurious combination of neo-oriental and neo-classical styles.The casino offers a large number of game tables, state-of-theart slots, a betting office and a restaurant. Moreover, there are daily Texas poker club
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tournaments. The gaming venue opened at the beginning of spring in 2014 and is already a fixture on the Belarusian gambling business circuit. BetConstruct has now helped the casino operator get its betting facilities up and running to provide its clientele with a different type of gambling. The betting office of Casino Carat works on BetConstruct software. Complete integration with the monitoring centre and SCCS was performed by BetConstruct’s technical department, which has helped streamline processes. It now only takes seconds to place a bet, work up all the information and print a receipt for the customer.
Owing to co-operation with BetConstruct the betting office of Casino Carat provides its clients with more than 15,000 Livematches per month with a large choice of bets variants. Moreover, players can stake on Pre-match games that are held all over the world in more than 50 sports. Besides there are three live monitor versions that help to comply with every player’s needs. The newest flash monitor with very simple and friendly interface gives a player the opportunity to watch the development of the game, statistics and the odds change, even if there is no Live-streaming. In the conditions of 0.30.24 technical and informational support is provided.
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BettingBusinessInteractive • JULY 2014 Editor: Andrew McCarron Email: am@sjc.co.uk Tel: +44 (0) 1457 867 683 Managing editor: Ken Scott Email: ks@sjc.co.uk Tel: +44 (0) 1273 699 900
Advertising sales: Neil Judson, Email: njudson@gbmedia.eu Tel: +44 (0) 1204 396 397 Fax: +44 (0) 1204 392 748 Ad Production: Dave Roderick Email: gdk@sjc.co.uk
Contributors: John Samuels, James Walker, Alex Lee
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
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.
ACCOUNT
IT
Winners gets new wallet
OPAP signs IT for four years ntralot has signed a new four year IT contract with OPAP which will see it undertake the implementation of the new Data Centers, provide hardware and system software, as well as services for the operation, maintenance, technical support and system evolution. Intralot Group CEO Constantinos Antonopoulos, stated: “We are glad to continue offering to our longest client our state-of-the-art technology. Our aim is to support the new management of OPAP in their endeavour to continue to modernise the Greek gaming market and offer to the players the most entertaining gaming experiences. Intralot’s cutting-edge solutions guarantee that OPAP enters a new era with the most trusted and secure technology in the lottery sector.”
Opinions expressed in this publication should not be regarded as the official view of GB Media Corporation Ltd, except where stated. Views, opinions and recommendations contained in this publication are put forward for consideration only. No action should be taken in reliance upon any such views, opinions or recommendations. Neither GB Media Corporation Ltd nor contributors accept any responsibility for any loss occasioned to any person howsoever caused or arising as a result of or in consequence of action taken or refrained from in realiance on the contents of this publication.
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MARINA WONG
organised and managed trade fairs and conferences in Macau since 2006 and opened a dedicated Macau office earlier this year to further invest in the region. Marina Wong, general manager and event director at MGS said: “Koelnmesse will provide a range of services with their focus on conference management, exhibitor services, onsite management as well as advice on the overall event concept and structure. This appointment is another indication of our support for and investment in the long term prosperity and development of Macao Gaming Show.”
PAYMENTS Move to mobile onsumers are ditching their desktops and turning to their tablets and mobiles when betting online during the World Cup, according to new research from payment management firm Secure Trading. The firm questioned UK consumers during England’s goalless draw with Costa Rica, and found that of those who had placed an online bet, 70 per cent did so on a mobile device. Jens Bader, commercial director at Secure Trading, said: “We’ve seen a huge surge in mobile gaming during the World Cup. Heavy advertising campaigns coupled with the rise of ‘second screening’ has led to a massive boost for operators. These major events offer a significant mobile opportunity for operators, but they must be equipped for the scenario. Keeping users engaged while making the player journey a smooth one is paramount.”
C CONSTANTINOS ANTONOPOULOS
ASIA MGS appoints Koelnmesse rade fair organiser Koelnmesse Pte Ltd, Singapore, has been appointed by the organisers of November’s Macao Gaming Show (MGS). Koelnmesse has
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laytech, developer and licensor of gambling software and services, has announced the successful migration of Winner to Playtech’s new Multi-Balance wallet as part of Playtech’s Information Management System, IMS. Eliminating the use of multiple accounts for the various products, the new single wallet enables playersto enjoy a borderless multi-product experience across all products they are playing - including Casino, Bingo, Sports and Poker. Operators can track the gaming activity through a single backend - Playtech’s IMS, making the financial data and gaming history of each player clearer across the entire player lifecycle. Exclusive to Winner’s wallet model is the
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ability to transfer funds across balances within games and products, allowing for intuitive cross-sell opportunities such as game-specific bonuses and free-spin bonuses. These targeted marketing activities will allow Winner to reap the benefits of the holistic financial view the new wallet offers, to increase their revenue through cross-promotion of games and products. Tony Khatskevich, VP Cross Products, commented: “We are very proud to launch the new wallet with Winner. It provides operators with a holistic view which allows them to execute more targeted marketing efforts and an avenue to cross-sell across products and games. I am sure Winner will benefit from this wallet in maximising their player value.”
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ACTION IMAGES / JASON CAIRNDUFF
Comment
MAN UNITED V CHESLEA? MAKE THE SHOP PRICES AVAILABLE ON THE EXCHANGE
Can Ladbrokes grasp the betting exchange opportunity
Time fo fish to
In his series of articles discussing best practice among bookmakers, retired business consultant Ric Ingram believes that Ladbrokes doesn’t realise the unique opportunity it has in its hands. t is now about a year since Ladbrokes acquired Betdaq. Six months after the transaction, Ladbrokes unveiled -with some fanfare - its own version of the Betdaq exchange with the exact same liquidity as Betdaq with 5 per cent commission. It was described in some circles as a ‘chocolate teapot’. But it is an impressive basis for transforming the profitability of the Ladbrokes bookmaking operation. The question I find myself asking is why have Ladbrokes not taken the business opportunity by the scruff of the neck and fully leveraged its purchase and development of their betting exchange? The way I see it is that there is plenty of opportunity. If Ladbrokes are prepared to lay Man. United to win at Old Trafford against Chelsea at evens in their
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shops and on the telephone, why not make a lay offer for backers at 2.0 on their exchange? To do so would enable Ladbrokes to lay at less than evens allowing for their commission earnings, have lower distribution costs than for other channels, make a risk free profit if an exchange participant makes an offer to enable Ladbrokes to back at say 2.1 while simultaneously releasing Ladbrokes capital for further laying at evens on the exchange or using other distribution channels. It would also be able to find out where the smart punters think the value is and change pricing and/or book bias accordingly, and effectively lay much lower than evens by backing both Chelsea and the draw at higher than a 50 per cent book when possible. The most common explanation for a business
38 BettingBusinessInteractive • JULY 2014
not taking up such a valuable business opportunity is usually the influence of powerful vested interests in the existing (sports bookmaking) business. I think there is a way forward. Twenty-five years ago a major insurance company launched a new subsidiary with near identical products using a then ‘novel’ distribution channel - the telephone. It was a great success. It began saving on distribution costs (10 per cent brokerage fees), allowing a new streamlined production process to be employed (bypassing internal vested interests), facilitating more up-selling such as legal cover, slightly improving renewal rates as there was no broker involved and improved claims ratios as more customer data became available. The approach was much copied in the insurance and other industries
over the next decade. But what are the implications for Ladbrokes? Well Ladbrokes could set up a new subsidiary to offer some of its capacity on the Betdaq/Ladbrokes exchanges. When Ladbrokes fully encompasses this business opportunity it will discover that many of the internal vested interests who were previously vetoing/suppressing the opportunity are surplus to requirements. This will yield savings in existing overheads. Given time, one of Ladbrokes larger bookmaking competitors will eventually seize the moment, buy Matchbook or WBX or Smarkets or similar, and do what Ladbrokes directors have so far failed to do with their far-sighted acquisition of Betdaq - that is to fully grasp the opportunity. So my advice to Ladbrokes is ‘use it or lose it’.
andrew mccarron viewpoint Consolidation has been the watchword on the igaming industry for several years now and it seems that after years of the medium fish snapping up the small fish, the big fish have now honed into view and are greedily licking their lips. PokerStars is obviously the big one, having already bought up its main (albeit very troubled) rival Full Tilt a few years earlier. It is now on the menu for Amaya, which has shown an unflinchingly voracious appetite in recent years. After snacking on the likes
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“My name is Lou Vincent and I am a cheat.” Former New Zealand batsman Lou Vincent who has been banned from cricket worldwide for life after admitting match-fixing
Clear betting slips reduce confusion John Samuels of IBAS believes that shop staff need to be vigilant when taking bets to make sure none are taken in error.
of Cryptologic, Chartwell and OnGame, Amaya is clearly ready for the main course and it is a deal which will possibly see the return of PokerStars and Full Tilt brands to the US market in a big way. Equally seismic in the supply chain is the proposal by GTech to pick up IGT, a blue-chip firm in the land-based casino industry which has been steadily chipping away at the igaming sector thanks to its huge catalogue of slot content and expertise. The scale of consolidation in the UK online marketplace will also likely increase once the new point of consumption tax sinks its teeth into the bottom lines of operators unsure how to make ends meet while staying competitive. Expect some big brands to weigh up their options by the end of next year. The big deals have been mainly done in the retail betting space. William Hill’s unexpected acquisition of the original Stanley Racing LBO estate and the eventual sale of the Tote to
Betfred have been the only major deals in the UK space for the past decade, not taking into account the blockbuster merger between the Gala Group and Coral Eurobet in 2005 which the company has been spending the last few years trying to deconstruct again. Mainly because the competition considerations now for ‘the big four’ mean it is impossible for them to acquire in any scale, there are fewer acquisitions now. There is also the point that the value of the betting shop plummeted once the demands test was removed from the planning process in the 2005 Gambling Act. The reintroduction of a brake in planning by giving betting shops a suis generis category will make the LBO a more valuable asset once again, but it is far too late for smaller operators now, most of whom have sold out while they can or been driven out of business by bigger bookmakers with deeper pockets suddenly being able to open next door with little fuss.
When the new planning laws are introduced, it will be the final nail in the coffin for the free market approach advocated by Sir Alan Budd in his Gambling Review Report in 2001. His recommendation for market forces to decide the number of casinos in the country ended up encapsulating into one resort casino, which made it to the statute books, but not past Gordon Brown who needed to rubber stamp the location. Given the destruction that the free market approach has had on the independent bookmaker, it is shame that this was one of the only Budd recommendations that actually made it through the Parliamentary process unscathed. And now it is being removed anyway. For all the complaints that the extra expense of the Gambling Commission and racing media rights has pushed the independent bookmaker out of business, it was Budd’s recommendation to ditch the demands test which was the real killer.
his summer sees many sporting titles and cups up for grabs in major tournaments. Football World Cup, Golf, Tennis, Cricket, F1 Racing, and touring Rugby teams to name but a few. So, plenty of sporting action, betting opportunities and also unfortunately plenty of opportunities for errors to be made when shop bets are presented and accepted. A main area of confusion concerns which event the bet is actually for. For instance, if a cricket bet is placed that simply says: ‘England to win’ or ‘Cook to be top batsman’ or ‘Anderson to be top bowler’, it will always be open to interpretation what market the bet refers to i.e. is it for the game, or first or second innings of the game that is about to be played, or for the Test that is about to be played, maybe even the whole series. Or is it even for one of the one day tournaments taking place at a later date? It may therefore be prudent if retail operators circulated some timely reminders to front line staff. When bets such as those mentioned above are offered, the customer should be asked to write and head the bet with the market required. Another possible area for confusion relates to that old acorn of related contingency. For instance a bet on Cook to be top match batsman and England to win the Test is all well and good for single bets, but the single prices will not be allowed in doubles or other multiples. There often seems to be some staff who are unaware of this and other similar restrictions. Further, for staff who do go that extra mile in the area of customer service, it may be useful to remind them that trying to circumvent company and general betting rules is not a good idea. A recent case that came to the notice of IBAS may be a good example of what I mean. It involved a customer who had been told that he could not place a multiple bet on Bayern Munich to win at Full-time and
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Half-time (the company were laying a special price on this) and Robben to score at any time (the company were offering a single price on this). The customer wanted to place a double, but as Bayern to win and Robben to score was clearly related, and the staff recognised this, the double bet was refused. But then a member of staff popped up and told the customer that he could have the Bayern Half-time/Full-time bet and then combine this with an ‘Any-to-come all on to win’ with Robben to score. The bet was written out and accepted! Forgive me but sometimes the mind boggles! The bet won but once head office got to hear of the any-to-come bet the payment was denied, and the bet was settled as split stakes singles, in line with the operator’s related contingency rules. ACTION IMAGES / ED SYKES LIVEPIC
e for the big to move in
STANDARDS
COOK TO BE TOP SCORER AND ENGLAND TO WIN? RELATED CONTINGENCIES ARE STILL CAUSING STRIFE
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Business Gala Coral is once again going to revisit a sale of its retail bingo business after the Chancellor’s halving of bingo tax.
BUSINESS BRIEFS HIGH DIVIDEND RATIO FROM FORTUNA
European betting operator Fortuna Entertainment Group is paying a dividend of 0.22 euro per share in accordance with the long-term dividend policy where the dividend payout ratio is 70-100 per cent of the consolidated Net Profit. The dividend pay-out represents approximately 73.5 per cent of consolidated Net Income of the Group. The total sum allocated for the dividend amounts to 11.44m euro which, based on a total number of shares 52,000,000, equals to 22 cents per share.
Gala Coral aiming for £300m auction of bingo halls
VAT CLAIM WAIT DIVESTMENT
ala Coral continues to play the odds, with the E u r o p e a n betting and gaming giant looking to offload its bingo division for a reported £300m. An article published in the Financial Times said the UK’s biggest bingo operator, which runs 135 clubs across the country and employs more than 4,800 people, could tempt potential buyers with an online partnership agreement. The gambling giant has been trying to ship out its bingo division ever since it sold off its casino portfolio to the Rank Group just over a year ago, although no one seemed interested in investing £250m in a struggling bingo market with a punitive tax regime compared to other sectors of the gambling industry. In a further development, the business recently launched Gala Flutter, a
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sports and entertainment betting option for its online bingo customers, with the aim to target casual betting from the operator’s player base. The product will focus on popular betting markets such as football and horse racing, with the site hoping to educate bingo players and first time bettors on sports betting markets. “But people with knowledge of its plans say chief executive Carl Leaver has dusted down its sale strategy after the chancellor halved bingo duty, and now believes he can get a better price through an auction involving trade and private equity buyers,” said the business and finance newspaper. The group completed the sale of its Gibraltar casino to Gryphon AG last December. The Gibraltar casino was Gala Coral’s remaining land-based casino asset after 19 establishments
were sold to the Rank Group in May 2013, and the remaining four UK casinos were sold to Double Diamond Gaming Limited seven months later. The sale of Aberdeen, Bristol, Cardiff and Teeside casinos, and a cold casino licence in Dundee were excluded from the Rank Group sale, following a Competition Commission ruling. Commenting at the time, Gala Coral said: “The transaction is another successful step towards streamlining our retail business and is a continuation of our strategy to focus on growing our core operations.” Gala Coral is privately owned and has four major divisions, Coral retail betting shops, Eurobet retail in Italy, online products and brands, and Gala retail bingo. In the financial year ending September 2013, the company had revenues of £1,184m. Financial results from April
reported a three per cent rise in like for like admissions, despite a £1.5m drop in gross profits. Chief executive Carl Leaver reflected on the performance of the three core elements, negating to mention the bingo division. “The Group delivered strong underlying growth for the second quarter in a row, with underlying year to date EBITDA (preexceptionals) ahead in all divisions and 16 per cent overall. Online growth momentum is very encouraging with Coral.co.uk now coming through strongly. The combination of a single online wallet, improved content and simplified customer journeys is driving both actives and spend per head significantly ahead of expectations. The take-up on mobile is particularly pleasing with over 66 per cent of sportsbook actives now using our mobile platform.”
ANALYSIS While Coral is looking to divest its land-based bingo business, it plans to hold very tight to its online bingo operation given the strong synergies and operational expertise it provides to Coral’s other online gambling endeavours. While the huge merger deal that saw betting shops, casinos and bingo halls under the same powerful roof was considered the structure of the future under the new Gambling Act, things have turned out very differently. In fact, LBOs, which were seen as the poor relation in the mix at the time, have been the group’s saviour as it has struggled with the debt pile from the merger. Soon the betting shops may well be the last thing standing.
Ladbrokes wins with £100m bond offer FINANCIAL
adbrokes has extended its existing bank facilities following an oversubscribed £100m retail bond offer. The 5.125 per cent retail bond has an 8.25 year maturity and closed early on strong demand. The bookmaking group said that, having completed its balance sheet re-financing, it has successfully extended the maturity of £250m of its previous £540m bank facilities, due to expire in 2016, until June 2019. It has also cancelled a surplus £135m of the previous facilities. Ladbrokes said its total debt financing now stands at
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40 BettingBusinessInteractive • JULY 2014
£730m with an extended maturity profile. Ian Bull, chief financial officer of Ladbrokes, said: “We are delighted to announce the completion of our refinancing work well ahead of our existing facilities maturing. With constructive and strong support from our bank and debt investors, we were able to use both the bank and bond market to
enhance the flexibility and length of our debt profile and further strengthen the Ladbrokes’ balance sheet.” Bull had earlier said that the bookmaker hoped to raise between £50m-£100m with the bond, so to have reached the high threshold early because of oversubscripIAN BULL: ‘WE WERE ABLE TO USE BOTH THE BANK AND BOND MARKET’
tion, the offer was pitched at an attractive level for the market. The clamour was despite credit ratings agencies Fitch and S&P both rating the bond in the ‘BB’ category, warning that they are prone to economic changes in the long run. The minimum investment in the bond was £2,000, across eight years and as a ‘retail bond’ it will be traded on the London Stock Exchange, so investors are therefore not locked in until it matures in 2022. Income will be paid out twice a year, in September and March.
Sportech has said that it is still awaiting the outcome of the appeal case relating to the VAT repayment claim on the ‘Spot the Ball’ game held at the Upper Tribunal’s Tax and Chancery Chamber at the end of April 2014. Sportech had previously announced that the claim including simple interest was for £95m, but, with the passing of time, the total value of the claim is now anticipated to be closer to £96m. HRMC has already paid Sportech £93m but if its appeal to the Upper Tribunal is successful, these monies together with any related interest would need to be repaid. IMPORTANCE OF MALTESE INDUSTRY REINFORCED
Malta’s Lotteries & Gaming Authority (LGA) generated 52.7m euro (£42.1m) during the 2013 financial year, the same as 2012. Executive chairman Joseph Cuschieri said: “These results continue to sustain the importance and value creation ability of the gaming industry for the Maltese economy. The Authority is currently undergoing a major restructuring, investment and capacity building programme in order to strengthen the LGA’s operational structures and define a new future proof strategy for the Authority and for the gaming industry itself. This will have the benefit of driving growth for the industry and reposition Malta as the top gaming jurisdiction globally.”
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Four targets Intralot Group’s strategy will focus on four main targets; innovation and competitiveness, maintaining its leading position in the global market, organic growth and further improvement of its financial results, according to CEO Constantinos Antonopoulos at his firm’s AGM. In 2013 Intralot Group’s Revenues increased by 12 per cent reaching 1,539m euro (£122.8m) an increase of 17.9 per cent year on year. The firm’s EBITDA increased 9.7 per cent reaching 194.8m euro (£155m).
GTech positions itself for IGT purchase IGT’s position in the land-based casino sector makes it an appealing target for the GTech Group. M&A
talian gaming giant GTech has set tongues wagging by publicly revealing that it has hired advisers to buy the Las Vegas-based slot specialist International Game Technology (IGT). The firm is in preliminary talks to buy in a cash and shares deal that would make it a significant player in the casino slot machine business. IGT itself has been looking for a buyer following generally weak demand in the global land-based casino industry. “This transaction could potentially involve the use of a mix of cash and equity,” GTech said, adding it would not need to sell new shares to raise the cash for the deal. GTech is roughly 60
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percent owned by Italy’s De Agostini Group, which expanded its Lottomatica empire in 2006 with the acquisition of US gaming company GTech. Despite having a market capitalisation of around £2.7bn, some analysts believe that GTech might be overstretching itself given IGT’s market cap is around £2.3bn. An Italian analyst commented: “IGT is a very large prey for GTech. This means it would take years to integrate the new company.” However, GTech is not the only firm in the running. Other companies linked to an offer for IGT include Ron Perelman’s MacAndrews & Forbes Holdings, private equity firm Apollo Global
Management LLC and buyout firm Carlyle Group LP. The Perelman link is particularly strong given that he is a major shareholder in Scientific Games Corporation and as such has a keen interest in developments. IGT itself has played a very straight bat during all the developments, suggesting that the clamour to acquire it is just part of its normal business proceedings. A statement from the slots developer read: “IGT regularly considers, and on occasion explores, a broad range of strategic alternatives, including but not limited to business combinations, changes to our capital structure and adjustments to our portfolio of businesses, with
IGT ALSO HAS A RICH BACK CATALOGUE OF SLOTS CONTENT
the goal of maximising shareholder value. “The IGT Board of Directors and senior management are currently engaged in such an exploration, but no decisions have been made by the Board regarding any particular alternative available to the company and there can be no assurances that any transaction or other strategic change will be entered into as a result of the current exploration of alternatives.
“IGT does not intend to discuss or disclose developments with respect to this general subject unless and until the Board has approved a definitive course of action.” As well as having a large footprint in the land-based casino machine gaming sector, IGT also has a strong presence in the social gaming sphere after its $500m acquisition of DoubleDown Casino a two years ago. Available on Facebook
and for mobile devices, DoubleDown Casino offers authentic Vegas style games, including top-performing land-based games, like Cleopatra, Wolf Run and Monopoly Plus. And more than six million people worldwide play on DoubleDown Casino every month, making the social gaming operation a prize in itself and undoubtedly pushing the price for the group northwards.
info@locusgaming.co.uk
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Kobrin joins Ultimate Gaming
Business
US operator Ultimate Gaming has recruited Todd Kobrin as chief marketing officer. Recently serving as Vice President at 888 for its US and Asia Pacific regions, Kobrin was the marketing point person for all responsibilities associated with the launch of 888 in Nevada, New Jersey, and potential future US jurisdictions. He brings more than 18 years of online gaming and sports marketing experience to Ultimate Gaming.
appointments
odog has hired a raft of top-notch IT specialists with Bdirector industry experience including Tom Hamilton as global of architecture, Simon Tarling as program delivery
Focus on sustainable markets bearing fruit for Betfair With a new sportsbook product given a fresh impetus to Betfair, revenues for the last financial year are far healthier than their predecessors. ANNUAL RESULST
etfair chief executive officer Breon Corcoran has claimed his firm’s switch to ‘sustainable markets’ is working after the betting exchange posted a 60 per cent increase in underlying profit for the year of £51.0m. Revenue increased by 2 per cent to £393.6m with strong growth in Sportsbook and Betfair US partly offset by a weak faming performance. Revenue included significant adverse impacts from market exits (£13.3m revenue impact from Greece, Germany, Cyprus and Spain) and the absence of a major international football tournament (Euro 2012 generated £7.8m revenue). “Our strategy is working,” Corcoran proclaimed. “The emphasis on sustainable revenues and our product and marketing investments are paying off, resulting in record revenues and profits. “The focus in FY14 was on creating a competitive Sportsbook and we are now entering an exciting phase of product development to leverage both our Exchange and Sportsbook to stand out in a crowded marketplace. Betfair has always been a unique betting company and our innovative sports betting
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products such as Cash Out and Price Rush are redefining the ways customers bet.” Corcoran said that the introduction of the sportsbook, increased television advertising spend and the strengthening of the firm’s online marketing capability have broadened the company’s customer reach and led to a 54 per cent increase in the number of customers acquired in the UK and Ireland. This has led to three consecutive quarters of double digit revenue growth in sustainable markets. He added: “We believe the differentiation of our products and uniqueness of our model give us a real competitive advantage. Our strong trading has continued into the new financial year and we look forward to building on this positive momentum during the World Cup and which will be an excellent showcase for our market leading products.” Betfair’s switch to only operating in sustainable markets caused a great deal of pain to the balance sheet - the firm actually lost over £45m in the previous fiscal year - but it appears that the hard yards are over. As a result the business faces substantially less regulatory risk and the sus-
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tainable markets (defined as the UK, Ireland, Denmark, Malta, Gibraltar and US) now contribute 78 per cent of Group revenues and produced a 9 per cent increase in revenues, with growth across all products. This contrasts markedly with revenue from other markets, which was down 18 per cent. The £87.5m revenue in other markets comprises over 100 countries, with only five contributing more than 1 per cent and none contributing more than 3 per cent. Underlying EBITDA was up 24 per cent to £91.1m with the improvement in profitability driven primarily by cost savings, which were in excess of the firm’s £30m target. Corcoran added: “We believe that the key to winning in our target markets is to create differentiated products that give Betfair customers unique advantages over those using other brands. Betfair is now in a position to do this through integrating its Exchange and Sportsbook, both of which possess functionality that, when put together, can create a truly unique sports betting platform. We are now making significant investment to develop products that enable every customer to access the full range of both platforms.”
ANALYSIS While focusing on ‘sustainable markets’ relaxes shareholders, some of these markets are still unstable in their own way. The new regulatory regimes in the UK and in Ireland in the pipeline means that revenues from these markets would take a huge hit. In fact, Betafir predicted that if both the proposed UK and Irish taxation changes had been in place for the whole of FY14 along with the gaming taxes the firm is now incurring in Italy, the cost to the business would have been approximately £36m. With overall profits of £51m, the phrase sustainable market might mean something else in time.
manager and Clive Hibberd as head of product development, sports. Stefan Matthews, CTO for Bodog Asia, commented: “The enormity of this summer has been well-documented but the key to making this season a real success is holding on to those players longterm. To that end we wanted to bolster our team for the near and far terms and I am confident these guys will help us do just that.” CLIVE HIBBERD, SIMON TARLING AND TOM HAMILTON
ameAccount Network has underlined its ambitious G growth plans by installing a new commercial team which combines a strong academic background with experience gained from both within and outside the gaming sector. Led by commercial director Daniel Lindsay, who joined GameAccount in September 2013 and has over 19 years gaming experience, the new team comprises; Sara Di Finizio ,Country Manager Italy, alongside Commercial Managers Federica Faggiano and Camilla Folkeson. Underlining the strength of the team, Lindsay said: “We have recruited from a variety of backgounds in order to achieve a complementary balance of experience and skill sets. Sara Di Finizio, our Country Manager Italy has a background in technology and marketing and is a graduate in marketing communications working from Rome. “Federica is responsible for managing existing regulated .com accounts and ensuring our operating partners can deploy the very latest range of content from the extensive list of slot providers in the GameAccount portfolio. “Camilla is responsible for driving overall business development outside of North America including the roll out of GameAccount’s unique Simulated Gaming products to land based operators.” He added: “I’m delighted with the team which will uphold the GameAccount Network principles of listening to our customers, delivering exceptional service and in the process driving new business across the region.” ocial sports betting platform Oddslife has announced the Sdirector make up of its new advisory board. Former Ladbrokes Ben Dale comes on board as business advisor, former Samvo general manager Yan Tang is Asian market & advisor, Bettor Group co-founder Simon Burrell is on board as digital media & gambling advisor, while Betsson co-founder Chris Duncan is CCO. Consultant David Knight is the global network advisor, Denis Larsen of Bold.dk is media strategy advisor, while chartered accountant Charles Marsh is the CFO. Other advisors and shareholders include David Duncan, a European institutional director, and bettingexpert operator BEN DALE Better Collective. acecourse operator ARC has appointed At The Races’ R Kevin Robertson as the new chief financial officer. Robertson, who will join the board of ARC, said: “After over ten fantastic years of being part of the At The Races team I feel the time is now right to further develop my involvement in the racing industry and ARC offers the perfect opportunity. I am very much looking forward to joining the largest and most successful commercial racecourse group in the UK and contributing to the important role ARC has to play within British Racing.” KEVIN ROBERTSON
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.
HOW CAN WE HELP YOU? Are you dizzied by the array of software choices and need an expert’s eye? Does your website require engaging content to keep customers on-site? Do you need help identifying and targeting your market? We can help with these problems and more.
GET IN TOUCH Andy McCarron | +44 (0) 1457 867 683 | andy@sbcnews.co.uk | www.sbcnews.co.uk
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Agenda AGENDABRIEFS
ACTION IMAGES / PETE GODING LIVEPIC
BINARY PROMOTION FOR FOOTBALL
Ante Post: What the bookies say egardless of make-up the World Cup final we’re confident that it will break betting records for us, with a Brazil-Argentina clash set to be particularly tantalising. It’s been an encouraging World Cup to date with mobile turnover particularly brisk and the key will be retaining those customers for when the Premier League returns. In terms of keeping customers interested for the rest of July we enter a busy period in the racing calendar with the highlight being Glorious Goodwood while on the sporting front the EnglandIndia tests looks set to be blockbusters for cricket fans too. While the Commonwealth Games won’t hit the heights (as far as athletics is concerned anyway) of London 2012 it will benefit from widespread terrestrial coverage which will ensure interest levels remain high and the emergence of any
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The World Cup is nearly over… but there is still plenty to be getting on with ahead of the domestic season. British medal prospects will look to bounce back after always trigger a patriotic their disappointing performance against Sri Lanka. Can punt or two. Alistair Cook turn it around ALEX DONOHUE and defy his critics? They’re PR favourites to start things off Ladbrokes with a win. This summer’s racing proAs the World Cup comes to gramme continues apace a head in mid-July and with high quality cards from punters strap on their boots Newmarket, York, for all things pre-football Newbury, Ascot, and of season, we’re looking course to top the month, forward to a summer of Glorious Goodwood. With betting opportunities, the first piece of Premierregardless of the outcome ship action kicking off on in Rio. the 16 August, there’s plenty There’s some belting golf to get stuck into and banish both sides of the pond with the World Cup withthe John Deere Classic drawals… teeing off on the 10th, quickly followed by the un- DENIS KELLY missable British Open one CEO week later, where Phil Mick- Stan James leson is out to prove last year’s victory was no fluke. The World Cup reaches its July also sees the start of climax in Brazil this month the England v India test and it has already proved to match series where England be the biggest event in Sky
Bet’s history, but it’s events closer to home that are whetting the appetite of punters in our summer of sport with cricket, golf and horse racing all taking centre-stage. England are Sky Bet’s favourites to end their miserable run in Test matches when they take on India. Alistair Cook’s men go into the five-match series as 11/8 favourites despite having failed to win any of their last seven Test matches and also suffering a first series defeat on home soil to Sri Lanka. There is some hope for England as the last time the sides met in 2011 the hosts ran out 4-0 victors - it’s 20/1 for a repeat this time around. Meanwhile, Royal Liverpool hosts the Open Championship with 25/1 shot Phil Mickelson defending his crown, but it’s the fit-again Tiger Woods who is certain
to attract plenty of interest from punters after his impressive win the last time the event was staged at Hoylake back in 2006. Glorious Goodwood’s showpiece is the much anticipated clash between Kingman and Toronado in the Sussex Stakes. The Duel On The Downs III sees two of stars of Royal Ascot go head-tohead over a mile. With stakes on horse racing up a massive 60 per cent this year this showdown is certain to maintain that upward trend. There’s also a host of other major sporting events taking place including the Tour de France and the Commonwealth Games ahead of the return of the new Sky Bet Football League season which kicks off on Friday 8 August. STEVE BRAMLEY Sky Bet
US igamers interested in land-based promotions RESEARCH
report from Commercial Intelligence has found that promotions tied into land-based casinos are the most effective incentive for online players in New Jersey, which effectively demonstrates how different the newly regulated US iGaming market is from its European counterpart. “This is the most important finding of this survey,” said Jim Ryan, a member of the Consumer Insight Group, assembled for
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44 BettingBusinessInteractive • JULY 2014
JIM RYAN
GiGse San Francisco to interpret the survey’s findings. “The typical online consumer has always been more interested in cash promos.” Fellow CIG member, Fred Buro, ex-CMO for MTR Group, who is currently launching a social gaming start-up, commented: “Considering the high customer acquisition cost for online gamers, utilising softer cost promotions such as non-performing assets like hotel
rooms, especially in winter months, fosters conversions of online gamers who never visited a casino to try one.” Alex Czajkowski, most recently CMO of Gala Interactive, an online arm of a major UK casino, added that “Looking at promotional incentives, I’d say land-based have huge advantages with combinations with room offers, loyalty points etc. to be redeemed in club (…) US casino operators can take
comfort that online won’t cannibalise offline”. Jim Ryan, Fred Buro and Alex Czajkowski are all part of the Consumer Insight Group invited to interpret the NJ Players’ Survey conducted amongst 506 New Jersey online gamblers to understand better the players’ profiles, attitudes, motivations, games they play, migration from un-licensed to licensed sites and impact of promotions.
Binary.com has teamed up with Lee Sandford, an ex-professional footballer turned trader, to support grass roots football in Portsmouth, Stoke City and Sheffield. For every new account opened with Sandford’s The Trading College and traded on to September 2014, 10 per cent of the earnings with Binary.com will go to grass roots youth football teams, in Portsmouth, Stoke and Sheffield in a bid to get more young people into the sport. Sandford said: “I was lucky to play for some wonderful clubs in my professional career as a footballer and this is my way of giving something back. So when Binary.com approached me about this collaboration I jumped at the chance.” SUCCESSFUL START
BlingCity casino players have won over 2.3m euros in the first month since the online operator launched. Daniel Sahlin, CEO of BlingCity Casino, commented: “I’m very happy for our players, our intention for the players is to have fun at the tables and win, looks they have managed to achieve both … I would like to congratulate our players and hope that players joining us on a daily basis will enjoy our new features and win big.” FRAUD WHITEPAPER
Jumio has released a new white paper: “The Fraudsters Playbook: Five tricks that fraudsters use to target eGaming operators”. This paper includes details and insider knowledge from exfraudsters and law enforcement officials who know first-hand how fraudsters are targeting online gaming, with advice specific to the industry. The research uncovered includes how fraudsters stack the deck in their favour by infecting other players’ devices with malware so they can see what hands their opponents are playing and how fraudsters will try to cover their tracks on eGaming sites when using fraudulently obtained card details by using prepaid cards.
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Vegas prize for AGE attendees Visitors who register and attend the 2014 Australasian Gaming Expo are eligible to win a trip for two to Las Vegas and visit the Global Gaming Expo. The trip includes airfares from Sydney and five nights at the luxurious Palazzo Venetian Resort and Casino.
LISTINGS
GiGse offers attendees a range of first time speakers This year’s GiGse show has a range of speakers who are appearing on the conference circuit for the first time this year.
EWA BAKUN: GIGSE ‘A UNIQUE OPPORTUNITY’
he organiser of July’s GiGse has confirmed that an unprecedented 45 expert industry speakers will be appearing exclusively at the 14th annual iGaming event, taking place across 14-16 July, 2014 at the Hyatt Regency in San Francisco. The exclusive line-up of thought leaders – which includes representatives from Pennsylvania House of Representatives, Atari, Morongo Band of Mission Indians, Nevada Senate, GSN Digital, National Council of Legislators from Gaming States and Partypoker - will debate key industry issues including the domino effect in relation to state by state regulation of iGaming, a re-evaluation of the business model based on eight months data and experience in NJ and how social casino can be integrated as part of an RMG strategy. Ewa Bakun, head of content, Gaming, Clarion Events, said: “We have addressed the very real issue of speaker fatigue by hand-picking a line-up of thought leaders who have chosen to make their first iGaming appearance of the year and to share their knowledge at GiGse. For attendees this means that the content is fresh, the thinking original and the insights they will deliver both powerful and valuable.
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Industry professionals attend events to learn from original thinking delivered by experts, which is exactly what they will experience at GiGse 2014. “I am delighted to welcome such an ‘A list’ of speakers including Norbert Teufelberger, Governor Ed Rendell, Governor Robert Miller, Susan Hensel and Representative Jim Waldman who have chosen to make their first iGaming appearance of 2014 at GiGse; I believe their decision to use GiGse as their platform of choice speaks volumes for the integrity and the reputation enjoyed by the brand as North America’s market leading event.” She added: “GiGse is a powerful and business focussed coming together of influencers and doers in North American iGaming. It provides a unique opportunity to shake hands and build strategic partnerships with a wide spectrum of stakeholders including regulators, legislators, bricks and mortar casinos, online operators, technology suppliers, social gaming developers, tribes and start-ups, in the process delivering invaluable, competitive and consumer insights to this hugely important market.” Meanwhile, solutions that leverage iBeacons, bitcoin, innovative slot content, artificial intelli-
gence in poker and minigames in social gaming are to be showcased during GiGse’s start-up competition which will see five companies pitching for the vote of the investors and of the 700-plus social and realmoney gaming industry executives. Start-Up LaunchPad is part of the 14th Global iGaming Summit & Expo (GiGse), taking place in the Hyatt Regency at the Embarcadero Center in San Francisco, CA. GiGse is North America’s largest and most established event fully focused on regulated iGaming. With iGaming now live in three states, this year’s GiGse will be pivotal in analysing the future of legal online gambling in the country in the context of the results of the recent launches, in particular those in New Jersey. Slow opening of the US market to iGaming, coupled with the rise in social casino gaming, have given boost to the emergence of new business models, new products and new companies that GiGse, and the co-located Social Casino Summit, has been embracing for the last three years with its StartUp LaunchPad and the Start-Up Zone on the Expofloor. This year’s start-ups include NEFRF Corp., that uses user profiling and posi-
MONTHLY BRIEFING
tioning to serve up relevant content to casino visitors, InAppFuel, that allows mobile developers to create minigames in no time, TouchSpin Gaming, with its innovative take on social multiplayer slot games, Neo Poker App, that uses Aritificial Intelligence to teach how to play poker at a very high level and Sportplayz, a bitcoin-powered sportsbook. The start-ups will be quizzed by a panel of investors that includes Craig Abraham, Chief Financial Officer of Caesars Interactive Entertainment, and Gavin Teo, investors at Comcast Ventures and Sunny Dhillon, Principal at Signia Venture Partners, but the final say in selecting the winner will be given to the event’s audience. “I look forward to seeing the innovative solutions that the 2014 GiGse start-ups will showcase. The intersection of real-money and social gaming is an area that has seen lots of interesting developments in the last two years, so it is no surprise that new ideas and new business models keep springing up.”, said Gavin Teo from Comcast, one of the LaunchPad judges. GIGSE 14-16 July Hyatt Regency San Francisco
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director at MGS said: “The marketing campaign, which is significantly bigger than in 2013, plus the appointment of world class partner organisations represents another sign of our commitment to establish Macao Gaming Show as the most important exhibition in Asia. We are supporting the Macao Gaming Show with an unprecedented level of investment in marketing and advertising in order to build on the success achieved in our debut year. Our aim is to ensure that every buyer who has an interest in the Asian gaming sector knows about the show, and has all the necessary tools and information to be able to attend.” She added: “The registration data that we have processed since registration opened confirms a very high
proportion of repeat visitors. Our aim is to grow the attendance by adding new first-time visitors to this very healthy base while maintaining a similar if not higher level of seniority as in 2013 when 83 percent of visitors were either decisionmakers or had direct input to purchasing decisions. “Not only does MGS provide a comprehensive window on the
entire gaming industry, it is also the only show that is truly representative of the Asian gaming industry. I am delighted that so many industry decision-makers, purchasers and influencers will be joining us at the Venetian Macao in November.” MACAO GAMING SHOW 18-20 November Venetian Macao
AUGUST 5 Annual Tribal Gaming & Compliance Update, Reno, NV, USA 11-13 OIGA Conference and Trade Show 2014, Cox Centre, Oklahoma City, OK, USA 12-14 Australasian Gaming Expo 2014, Sydney Exhibition Centre, Glebe Island, Australia SEPTEMBER 8-9 eGR Mobile Power Summit, South Lodge Hotel, West Sussex, UK 9-12 10th European Conference on Gambling Studies and Policy Issues, Helsinki, Finland 10 BiG Sports Dinner, The Dorchester, London 16-17 eGR US Power Summit 2014, The Montage, Laguna Beach, California, USA 30-2 Responsible Gaming Seminar, Florence, Italy OCTOBER 6-8 2nd Annual BiG Africa Summit 2014, Emperors Palace, Johannesburg, South Africa 9 Bookmakers’ Trade Fair, Wolverhampton 21 – 23 EIG Expo, Berlin 21-22 Balkan Entertainment and Gaming Expo 2014, Inter Expo Centre, Sofia, Bulgaria
Macao Gaming Show invests in multi-media marketing campaign he team behind November’s Macao Gaming Show is investing in a multi-media marketing campaign to take it’s ‘By Asia for the world’ campaign to an international audience of gaming influencers. As part of the dual Chinese and English language drive, over 100 MGS print and online adverts will be appearing across 25 gaming media channels from now until November. This is being supplemented by MGS Macau taxi advertising, MGS TV ad slots, and visits by the senior marketing team to major international gaming exhibitions such as GTi Taiwan Expo and conferences including Japan Gaming Congress (JGC) in Tokyo. Discussing the campaign, Marina Wong, general manager and event
JULY 8-10 World Gaming Executive Summit, W Hotel, Barcelona, Spain 14-16 GiGse 2014, Hyatt Regency, San Francisco, USA 14-16 Social Casino Summit at GiGse 2014, Hyatt Regency, San Francisco, USA 15-17 Casino Marketing Conference, Paris, Las Vegas, USA
NOVEMBER 5-7 Arizona Indian Gaming Association Expo 2014, For McDowell Casino, AZ, USA 6 ad:tech New York, Javits Centre, New York, USA 11 6th Annual Malta iGaming Seminar 2014, Malta 18-20 Macao Gaming Show, Venetian Macao 24 eGR Operator Awards 2014, Roundhouse, Camden, London DECEMBER 2 Tribal Gaming Regulatory Update, New Mexico, USA
BettingBusinessInteractive • JULY 2014 45
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Analysis ACTION IMAGES / CARL RECINE LIVEPIC
Money surge i Freebets.com explains some of the detail behind the affiliate website’s charts and how Paddy Power has learned to dominate the money back market. he total number of Bookmaker Offers available in May 2014 showed an increase on the previous, up from 684 to 715. This is well above the average number of offers (653) and the fourth highest since monitoring began in May 2013. Paddy Power provided the most offers with 144, bol-
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TOP TEN GLOBAL POOLS 1 2 3 4 5 6 7 8 9 10
GBR – Colossus Bets – The £10,000,000 Colossus – E12,569,100 SWE – V75 –Bergsaker– E8,244,338 USA – Gulfstream Rainbow Pick 6 - E4,890,837 GBR – Classic Pools – E3,770,730 GBR – Colossus Bets – World Cup Pick6 – E2,513,820 SWE – V86 – Solvalla – E1,788,302 ESP – La Quinella – E1,725,383 GBR – GBR – Goal Millions – E1,256,910 SWE – V64 – Orebro – E980,500 Marathon Toto – E445,691
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 June
1 2 3 4 5 6 7 8 9 10
European Football – Real Madrid v Atl Madrid Domestic Football – Arsenal v Hull Domestic Football – C Palace v Liverpool Domestic Football – Everton v Man City Domestic Football – Man City v Aston Villa Domestic Football – Derby v QPR Domestic Football – Chelsea v Norwich Domestic Football – QPR v Wigan International Cricket – England v Sri Lanka European Football – Sevilla v Benfica
Chart supplied by: Spreadex. Calculated on volume of bets. Data for AMay
Horseracing - QIPCO 2,000 Guineas, Newmarket Horseracing - QIPCO 1,000 Guineas, Newmarket Domestic Football – Arsenal v Hull City, FA Cup Final European Football – Real Madrid v Atletico Madrid, Champions League Final Tennis - The French Open, Roland Garros, Paris Golf - The Players’ Championship, Sawgrass, Florida Horseracing - £7.5 Million Totescoop6 Victoria Cup, Ascot Domestic Football – Derby v QPR, Championship Play-off Final Golf - BMW PGA Championship, Wentworth Rugby Union - Northampton v Saracens, Aviva Premiership Final
Chart supplied by: Betfred. Data for May
TOP TEN SPORTS SPREAD MARKETS 1 2 3 4 5 6 7 8 9 10
TOP TEN UK HORSERACE POOLS
TOP TEN RETAIL BETTING EVENTS 1 2 3 4 5 6 7 8 9 10
Chart supplied by: Totepool. Data for May
TOP TEN ONLINE BETTING MARKETS
TOP TEN FINANCIAL SPREAD MARKETS 1 2 3 4 5 6 7 8 9 10
Germany 30, Daily Wall Street, Daily UK 100, Daily Spot, EUR/USD Spot, GBP/USD Spot, AUD/USD Germany 30, Jun SPX 500, Jun UK 100, Jun Wall Street, Jun
Chart supplied by: Spreadex. Calculated on volume of bets. Data for May
Newmarket – QIPCO 2,000 Guineas Haydock Park – Silver Bowl Stakes Newbury – £10m Scoop6 Today Handicap York – BetBright Trophy Ascot – Victoria Cup York – Ralph Raper Memorial Stakes York– Fillies’ Stakes York –Racing at York (Handicap) Haydock Park – Handicap Hurdle York – Yorkshire Cup
1 2 3 4 5 6 7 8 9 10
European Football – Real Madrid v Atletico Madrid Domestic Football – Arsenal v Hull City Boxing – Carl Froch v George Groves Domestic Football – Crystal Palace v Liverpool European Football – Seville v Benfica Horseracing – 2000 Guineas Domestic Football – Everton v Manchester City Domestic Football – Manchester City v Aston Villa Domestic Football – Derby County v QPR Horseracing – Victoria Cup
Chart supplied by: BetVictor. Data for May
THE £10,000,000 COLOSSUS
ALL OTHER BETS ARE LOWER LEAGUE 46 BettingBusinessInteractive • JULY 2014
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BB118-p46-47-Analysis_09/10 04/07/2014 11:25 Page 2
TOP TEN MOST SELECTED BET TYPES (ENG)
SPONSORED BY COLOSSUSBETS 1 2 3 4 5 6 7 8 9 10
ney back seeing ge in popularity TOP TEN MONEYBACK OFFERS BY CHANCE 1 2 3 4 5 6 7 8 9 10
Ladbrokes – Football: Moneyback if Ronaldo scores in CL final Boylesports – Tennis: If Serena Williams wins French Open Betfair – Boxing: If Froch v Groves is won on points Paddy Power – Rugby: Moneyback if any forward scores first in Heineken Cup Paddy Power – Rugby: Moneyback if George North Scores a Try Premiership Final Paddy Power – Football: Moneyback if Bale scores in CL Final Paddy Power – Football: Moneyback if Lukaku scores v Man City Boylesports – Tennis: If Rafael Nadal wins French Open Betfair – Darts: PL Darts if match is won in final leg Paddy Power – Football: Moneyback if a draw in Play Off Finals
Chart supplied by: Freebets.com Data for May
stered by three offers running for significant periods during May. Its ‘money back if your horse finishes 2nd or 3rd’ applies to one race every day. Paddy also provided money back on every stage of the Giro d’Italia if an Italian won the stage. The Indian Premier League was in full swing throughout the month and cricket punters received money back on any T20
match decided on the final ball. Betfair continue to embrace money back offers since setting up its fixed odds sportsbook and ranked second for the total offers with 100. Customers receive acca insurance on Both Teams To Score and football Win/Draw/Win coupons every day and Betfair’s unrivalled Cashback Extra was available on
televised football and rugby games. Cashback Extra is unique in it allows customers to choose their own cashback triggers from up to five different options. The table of Top Ten Money Back Offers for value shows a shift from the football offers we’ve been accustomed to over the winter months and money back specials on Rugby Union’s club showpiece events took the top two slots. The top rated offer was money back if a forward scored the first try in the Heineken Cup final. This was a generous offer applying to seven tryscorer markets and punters had both forward packs to provide insurance. Refunds were made in cash up to a maximum of £100. The money back offer of the month is determined by the maximum refund value and the likelihood of the refund criteria occurring.
1 2 3 4 5 6 7 8 9 10
Domestic Football – Barclays Premier League Winner 2013/14 Indian Cricket – Bangalore v Rajasthan; Match Odds Indian Cricket – Delhi v Punjab; Match Odds Indian Cricket – Bangalore v Delhi; Match Odds Indian Cricket – Mumbai v Bangalore; Match Odds Indian Cricket – Punjab v Rajasthan; Match Odds Indian Cricket – Hyderabad v Punjab; Match Odds Indian Cricket – Delhi v Chennai; Match Odds Indian Cricket – Bangalore v Punjab; Match Odds Indian Cricket – Hyderabad v Mumbai; Match Odds
Chart supplied by: BetVictor. Data for May
(1) Pinnacle (2) Bet365 (3) William Hill (4) BetVictor (6) Ladbrokes 5dimes (8) Betway (-) Nordicbet (-) 12bet (7) Bwin (10) Coral
Chart supplied by: bettingexpert Based on data from 13,412 tips in English language section Data from May
Bet on our easy-to-play weekly pick 7 football game.
This loads the ranking in favour of bookmakers offering high maximum refunds. Most money back offers have a ceiling of £25 and £50 which is an appropriate amount for the recreational punter who will be interested in the following table showing money back offers ranked by the likelihood the trigger will occur. That is why the featured chart here of Top Ten Money Back Offers for chance is of interest and we see Ladbrokes, Boylesports and Betfair take the top three slots and featured offers for seven different sports. Overall Paddy Power ranked May 2014 Bookmaker of the Month ahead of bet365 in second place and William Hill in third. Paddy Power has won the Bookmaker of the Month accolade eight times, bet365 has won it four times and Ladbrokes once since monitoring began in May 2013.
TOP TEN MOST SELECTED BET TYPES (GLOBAL) 1 2 3 4 5 6 7 8 9 10
1 2 3 4 5 6 7 8 9 10
(1) Bet365 – 0.61 (2) Jenningsbet – 1.26 (4) Betfair Sports – 1.29 (3) BetVictor – 1.57 (-) Ladbrokes – 1.76 (6) Totesport – 1.81 (8) Sky Bet – 1.92 (7) Betclic– 2.10 (9) Betfred – 2.39 (10) Bwin – 2.47
Chart supplied by: Gomez. Data for May
TOP TEN MOST SELECTED BOOKMAKERS (GLOBAL) 1 2 3 4 5 6 7 8 9 10
(1) Pinnacle (2) Bet365 (3) Unibet (5) William Hill (4) Bwin (8) Ladbrokes (6) BetVictor (10) Betway (-) 12Bet (-) Mybet
Chart supplied by: bettingexpert Based on data from 40,000 tips in English language section Data from May
Cash-In profits in full
(1) Over/Under (2) 1X2 (4) 12 (3) Asian Handicap (5) Correct Score (6) Both Teams to Score 9) European Handicap (10) HT:FT (8) Draw No Bet (7) Double Chance
Chart supplied by: Based on data from 40,000 tips. Data from May
TOP TEN FOOTBALL BETTING WEBSITES 1 2 3 4 5 6 7 8 9 10
(1) Betfair Exchange (2) Bet365 (3) BetVictor (4) Paddy Power (5) William Hill (6) Coral (9) Ladbrokes (7) Sky Bet (8) Stan James (10) Betfred
Chart supplied by: Oddschecker. Calculated on market share of betslip clicks from Oddschecker.com Data for May
TOP TEN MONEYBACK OFFERS BY VALUE
RESPONSE TIME (SECS)
TOP TEN MOST SELECTED BOOKMAKERS (ENG) 1 2 3 4 5 6 7 8 9 10
Chart supplied by: Based on data from 13,412 tips in English language section Data from May
TOP TEN ONLINE SPORTSBOOK PERFORMANCE
TOP TEN BETTING EXCHANGE MARKETS
(1) Over/Under (2) 1x2 (4) Asian Handicap (3) 12 (5) Correct Score (8) European Handicap (7) Both to Score (7) Draw no bet (10) Halftime/fulltime (-) Goalscorer
1 2 3 4 5 6 7 8 9 10
Paddy Power – Rugby: Moneyback if any forward scores first in Heineken Cup Paddy Power – Rugby: Moneyback if George North Scores a Try Premiership Final Paddy Power – Football: Moneyback if Bales scores in CL Final Paddy Power – Football: Moneyback if Lukaku scores v Man City bet365 – Greyhounds: Sky dogs 2/1 Paddy Power – Rugby: Moneyback if Tommy Bowe Scores a Try v Leinster Paddy Power – Football: Moneyback if a draw in Play Off Finals Stan James – Football: Moneyback if CL Final goes to extra time Paddy Power – Football: Moneyback if Gerrard scores v Peru Paddy Power – Football: Moneyback if Suarez scores last v Palace
Chart supplied by: Freebets.com . Data for May
TOP TEN BOOKMAKERS FOR MONEYBACK OFFERS (WEB & MOBILE) 1 2 3 4 5 6 7 8 9 10
(1) Paddy Power (2) bet365 (3) William Hill (6) Betfair (4) Stan James (5) Winner (7) BetVictor (8) Betfred (9) Betway (10) Ladbrokes
Chart supplied by: Freebets.com. Data for May
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or in part as matches progress. by holding your nerve to the end.
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