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REBRAND: BoyleSports now boasts a capital new look and hashtag #BetonBoyle

RESEARCH: A look at some of the findings of the recent Responsible Gambling Trust studies

ICE TOTALLY GAMING: Find out more about the exhibitors at the world’s biggest gaming trade show

BETTING NEWS 14

REPORT 22

ESSENTIAL GUIDE 26

£5.20 (€8.30) • ISSUE:124 • JANUARY 2015 • www.betting-business.co.uk

ACTION IMAGES / ADAM HOLT LIVEPIC

£800m Sky Bet deal sees return of CVC Capital Partners

TAXATION

SKY BET IS THE SPONSOR OF THE FOOTBALL LEAGUE

ACQUISITION

work in partnership with CVC at Sky Bet, retaining an equity stake of approximately 20 per cent and having board representation. Most importantly for the bookmaker, it also said that Sky Bet will continue its strong partnership with Sky Sports. Flint commented: “Over the last seven years, Sky Bet has grown rapidly to become one of the UK’s leading online betting and gaming operators, achieved through the hard work of our employees and the valuable support of Sky and Sky Sports. Looking forward, we have exciting growth opportunities, both in the UK and internationally.” The deal incorporates sports betting business Sky Bet, Sky Vegas & Sky Casino, Sky Poker, Sky Bingo and Oddschecker, the UK’s leading odds comparison site is also

he Isle of Man has moved to meet the challenge posed by the UK’s Point of Consumption tax by giving operators based on the island a rebate. The Isle of Man Government is to allow IoM licensed-operators to claim ‘Double Duty Relief’, up to a monetary maximum equivalent to the amount of gambling duty which would have been paid to the Isle of Man Treasury on the same activity. These changes became effective from 1 December 2014. Peter Greenhill, CEO for e-gaming development with the Isle of Man Department of Economic Development, said: “We recognise the burden that the new UK tax will place on our licensed operators and, while we are not legally bound to offer this relief, we have decided that this is the best approach. “In addition, the Isle of Man’s positive relationship with the United Kingdom’s HM Revenue and Customs means that our operators will not have to appoint a fiscal representative in the United Kingdom, thereby saving them substantial costs.” The Isle of Man currently has 56 licensed operators and e-gaming represents a hefty 13 per cent of its economy. Greenhill added: “This decision provides reassurance to Isle of Man licence holders so that they can continue to run their operations from data centres on the Isle of Man and base their decision making capabilities here as well so as to protect against any future claims under Base Erosion and Profit Shifting (BEPS).” It is a clever manoeuvre for the jurisdiction given the fact than many operators are looking closely at how their organisations are licensed - only last month BoyleSports started moving its remote operations to Gibraltar. With this scheme, the Isle of Man is trying to underline its attractiveness as a remote gaming jurisdiction.

CVC Capital Partners, which once tried to buy Betfair for £1bn, has re-entered the betting market with a fascinating deal for a majority share in Sky Bet.

espite the clear synergy with its sports broadcasting business, Sky has agreed to sell off 80 per cent of its Sky Bet operation to venture capitalists CVC Capital Partners. It is somewhat of a coup for the investment firm, which has been trying to return to the UK gambling space for some time. The deal values the Sky Betting & Gaming business at £800m, a price that represents a multiple of approximately 15x EBITDA for the 12 months ended 30 June 2014. The Sky Bet management team, under the leadership of managing director Richard Flint, will remain with the business under the new ownership structure, as will all of Sky Bet’s employees. Sky said it would

Isle of Man operators get Double Duty Relief

part of the acquisition. Rob Lucas, managing partner of CVC, said: “We are delighted to have agreed to acquire a controlling stake in Sky Bet. Richard Flint and his team have built a fantastic business, which is a leader in the fast growing mobile and online, betting and gaming markets. The partnership between CVC and Sky will provide a strong platform to support SkyBet’s ongoing success at this exciting point in its development.” The sale will see Sky receive £600m in cash, with a further deferred consideration of up to £120m. It seems that as a Sky subsidiary, Sky Bet has grown too big for the group which wants to focus on its pay TV model. Jeremy Darroch, group chief executive of Sky, explained: “In

the last ten years, we have successfully grown Sky Bet from a start-up to one of the leading online betting and gaming companies in the UK. This transaction will allow us to focus further on the substantial growth opportunities in our core international pay TV business while realising significant value for our shareholders.” CVC has been involved in several successful gambling organisations in the past. It has invested in William Hill, IG Group, Malaysia’s Magnum, and payment processor Skrill. Two years ago it was also involved in a high profile pursuit of Betfair, with talks over a £1bn takeover of the exchange. However, Betfair CEO Breon Corcoran had only recently been installed and the two companies failed to agree on price and strategy.

sales@microgaming.co.uk

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News Report finds no evidence for further advertising restrictions Calls for more restrictions on gambling advertising ignores the evidence base, says CAP and BCAP. MARKETING

he latest review into gambling advertising has concluded that there is no evidence for any further restrictions as the current regime is working to plan. The review, by the Committees of Advertising Practice (CAP) and the Broadcast Committee of Advertising Practice (BCAP), said that the impact of gambling advertising on young people and problem gambling behaviour is limited. The report said: “It is also important to note that the Codes play an important part within a wider regulatory environment overseen by the Gambling Commission that combines regulation and industry responsibility initiatives to focus proportionately on gambling related harms. CAP and BCAP consider that calls for further, broad restrictions on advertising, like a 9pm watershed on TV, ignore both the evidence base and extensive framework of regulation already in place.” The report was launched in response to a request by the Department of Culture Media and Sport and forms part of a multi-agency process looking at how gambling is advertised. CAP’s work follows independent research findings published earlier this year by the ASA which showed that the ASA’s decisions on complaints around gambling ads ‘meets societal expectations’. Shahriar Coupal, director of CAP, said: “We know gambling can be a

contentious issue which is why there are strict rules in place to ensure it is advertised responsibly. While our Review shows that our regulation of gambling ads is effective, we’re staying vigilant and will act where evidence shows that children or vulnerable people might be at risk.” The report said that two key indicators of gambling-related harm problem gambling and underage participation - are at low levels and trends suggest they have been in decline since 2007 during a period of very significant growth in advertising volumes. It added that the academic literature points to gambling advertising having a potential impact but, in relation to problem gambling, the impact is found to be relatively small. CAP and BCAP said they are confident that the evidence does not present a case for tighter restrictions, such as broader prohibitions on advertising in certain media. The report added: “We also note the results of the recent ASA Review of its application of the Codes which found no instances of gaps in the rules that might hinder their capacity to take action where necessary to ensure that gambling advertising remains responsible. Indeed the majority of the ASA’s work on gambling relates to issues of general consumer protection rather than gambling-related harms.” The report did recognise that gambling advertising remains a sen-

sitive policy area permeated by what has been referred to as a ‘moral dimension’, but CAP and BCAP said that it was not their place to judge. It added: “On a more fundamental level, social concerns about the proper place of gambling in our society - including whether it should be promoted or encouraged - can only be addressed at a social and economic policy level; advertising regulation must take its cue from the framework envisaged under law and implement rules in an evidencebased and proportionate manner.” The report continued: “UK law allows gambling to be advertised as a legitimate leisure activity. Our responsibility as part of the UK advertising self-and co-regulatory system is to create proportionate and targeted rules that protect the public, young people and the vulnerable from potential harms, arrived at on the basis of the best available evidence. We are confident that the gambling rules in the Codes continue to meet this important objective. “Nonetheless, we will not be complacent. The limitations to the existing evidence base call for continuing vigilance by regulators including CAP and BCAP, and we are committed to working pro-actively to ensure the Codes continue to set the necessary level of restrictions to ensure gambling advertising remains responsible.”

Ladbrokes for Glynn’s

After a rocky five years, Richard Glynn believ better position to deliver sustainable growth. RECRUITMENT

ichard Glynn, the embattled boss at Ladbrokes, has announced he is to step down from the bookmaker after five years as CEO. In a rather muddled statement to the stock market, the listed betting firm announced that it is to start the process to find Glynn’s successor, and that he is willing to stay on in the role to ensure an orderly transition. Glynn’s tenure at the top of one of the country’s biggest gaming firms has been fraught with problems, which have only been magnified as its nearest rival William Hill experienced huge growth under the stewardship of Ralph Topping. It is probably for this reason that Ladbrokes’ statement started quite defensively: “Ladbrokes, under the leadership of Richard Glynn, has been

CAP AND BCAP SAID THERE WAS NO EVIDENCE FOR A 9PM WATERSHED FOR GAMBLING ADVERTS

BettingBusinessInteractive • JANUARY 2015

implementing a fundamental re-engineering of its business and operational and digital capabilities. As this year has progressed, it has become increasingly clear to the Board that the necessary organisational and operational changes have been implemented and the benefits of the transformation plan are beginning to come through. “Whilst the Board acknowledges that the recovery programme has taken longer to deliver than initially anticipated, in great part due to economic and regulatory headwinds, the Board believes that the changes made are now deeply embedded in the organisation and that increasing attention should now be focused on delivering sustainable growth from a much stronger operational and digital platform.” The bookmaker said that Glynn was appointed CEO

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Rate of gambling for 11-15 years olds steady The Gambling Commission has published the latest research figures for 11-15 year olds who say they played National Lottery games and other gambling products. These indicate that the claimed rate of gambling among 11-15s has remained relatively static over time, with no evidence of a rise in problem gambling levels. The Commission, which regulates gambling to ensure that children are protected, organises regular surveys to better understand potential underage play. This latest survey of nearly 3,000 children aged between 11 and 15 in England and Wales was conducted independently by Ipsos MORI.

RICHARD GLYNN: ‘IT HAS BEEN A PRIVILEGE TO LEAD LADBROKES’

SKS365 among the applicants for new Spanish sports betting licences SPAIN

ustrian bookmaker SKS365 Group, the owner of the international sports betting platform planetwin365, has confirmed recent reports about its application for betting and gaming licences in Spain. The expanding Austrian bookmaker, that operates online and land-based services with betting shops in Austria, Serbia and Belgium, is now seeking online licences in Spain. SKS365 Group has applied for general licences in the categories of betting and other games, as the company hopes to win over Spanish customers with its proprietary sportsbook. Thomas Smallwood, CEO of SKS365 Group, said of the company’s move into Spain: “Planetwin365 offers an extremely strong European sportsbook which will have great potential in the Spanish market. We can bring new value in sports betting to the Spanish customers through our innovative and highly competitive product, which has already proven very popular in other countries. We see Spain as a really attractive market and are hoping for a launch in the first half of 2015.” 12 new operators have applied to the Spanish regulator La Direccion General de Ordenacion del Juego (DGOJ) to enter the country’s online gaming market under a new licence tender. The process saw the 12 operators request a total of 20 licences, nine of which are for betting purposes and 11 are for other games, while a further 32 are specific product licences. Already licensed operators also submitted seven new applications, six of which were for betting and one is to cover other games. Other firms expected to have applied for a Spanish licence are Gala Corla, BetClic and Marathonbet. The new licence process was introduced after the DGOJ reviewed its policies and frameworks in May. At the time, the regulator confirmed that it would approve betting exchanges and slots to be serviced by licensed online gambling and betting operators, with existing licensees required to reapply in order to provide slots in their product inventory. The Spanish regulator had been under pressure from igaming operators, who have felt restricted by regulations concerning product inventory for the market. The DGOJ further stressed that it would need a six month window to implement changes to current Spanish provisions in order to monitor and regulate the market.

kes on the hunt nn’s replacement

lynn believes he will leave behind a Ladbrokes in a much ble growth.

of Ladbrokes in April 2010 with a ‘clear mandate’ to implement the recovery programme within a five year term, which suggests that the firm is hailing his tenure as a qualified success. Indeed, following ‘extensive and constructive discussions’, Glynn will complete his term and ‘continue in his role as CEO into 2015’, at least until Ladbrokes finds a replacement. Chairman Peter Erskine commented: “On behalf of the Board, I would like to thank Richard for his leadership of the company and his considerable achievements in delivering a new digital future for Ladbrokes. He has devoted enormous energy and dedication to securing the transformation of the company and the benefits of that work are beginning to be seen. I am pleased that he will both see through the

final steps of the implementation plan and be on hand to facilitate an orderly succession process. Ladbrokes has been transformed and is a far stronger company as a result of his work.” Glynn added: “Everyone at Ladbrokes has worked incredibly hard over the past, nearly five years, to deliver the transformation programme. We have faced significant operational challenges, as well as economic and regulatory headwinds. However, I am pleased that the business is fundamentally stronger than it was and now has the operational and digital capabilities to compete effectively. We have delivered against all of the recent milestones and increasingly shown real competitive momentum. “It has been a privilege to lead Ladbrokes over this crucial phase. I am

very proud of the resilience and professionalism the team has shown during this intense period of activity. It is the right time for Ladbrokes to identify my successor. I will continue to serve the company to help ensure a smooth succession I look forward to the company, the shareholders, our partners and in particular everyone in the team reaping the benefits, over the next few years, of all that has been sown.” The Board said that it will shortly start a process to identify Glynn’s successor, a search that will evaluate both internal and external candidates. Once an appointment has been made, Glynn has agreed to remain in post as required to ensure an orderly transition. APPOINTING A CEO COMMENT 53

ANALYSIS Richard Glynn was brought in from Sporting Index with ambitions to transform the online side of the business, but it has been the retail channel that has flourished during his tenure. Indeed, at times the performance of the betting shops has masked real problems for the remote side of the business and undoubtedly helped Glynn reach the end of his five-year term. Fortunately for any successor, Ladbrokes seems to have the building blocks in place for growth now (not least the still largely unrealised potential of the BETDAQ business) and the right appointment could see the firm making large strides to catch up with the currently distant William Hill.

THOMAS SMALLWOOD: ‘GREAT POTENTIAL IN THE SPANISH MARKET’

BettingBusinessInteractive • JANUARY 2015

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iGaming

Amaya offices probed over PokerStars deal

JAMES JORDAN HELPS GALA BINGO BREAK A WORLD RECORD

The amazing deal that saw Amaya take-over PokerStars and FullTilt is being looked at by some officials in Canada. INVESTIGATION

rading activities around last year’s biggest deal, which saw Canadian group Amaya take over the owners of the PokerStars and FullTilt operations, is being investigated by Quebec securities regulator AMF. Forbes reported that the Royal Canadian Mounted Police and AMF had raided the Montreal offices of Amaya, those of Canadian investment bank Canaccord Genuity, and a subsidiary of Canadian insurance company Manulife Financial. The news caused 18 per cent to be wiped off Amaya’s stock price and led the firm to issue a statement to the stock market, declaring innocence. It read: “To provide clarification on a media report, Amaya Inc. confirmed that the corporation and its officers are cooperating with the Autorité des marchés financiers, the securities regulatory authority in the Province of Quebec (the AMF), in an investigation with regards to trading activities in Amaya securities surrounding the corporation’s acquisition of Oldford Group in 2014. “To the corporation’s knowledge, this does not involve any allegations of wrongdoing by the corporation. Amaya will continue to cooperate, if and as requested, consistent with our practice to always cooperate with regulatory authorities. The corporation will continue to monitor the investigation if and as it proceeds. The investigation has had no impact on Amaya’s business operations, employees or companies.” AMF spokesman Sylvain Théberge told local press: “This search was part of a wider investigation on which we have no further comment.” Canaccord also took a big hit in its share price, leading chief executive officer Paul Reynolds to issue a memo to employees. It said: “I can assure you that Canaccord Genuity is not the subject of this investigation, nor is any member of our capital markets group. This is strictly a request for information related to individual trades in our client accounts.” Despite the dip, some analysts suggest that there will be little long

BettingBusinessInteractive • JANUARY 2015

DAVID BAAZOV: THE NEW ‘KING OF ONLINE GAMBLING’

Gala Coral breaks bingo record after charitable promotion BINGO

ala Bingo has celebrated raising over £6,000 for charity partner Royal Voluntary Service by breaking a world record for using the largest bingo card ever. A smattering of celebrities, including Strictly Come Dancing’s James Jordan, helped play a game of bingo using a 5 by 2 metre bingo card. The money will help fund Royal Voluntary Service volunteers to provide lunch clubs across Great Britain. Gala Interactive director of gaming Alison Digges explained: “We were keen to do something to support such a relevant and essential charity particularly in the run up to Christmas. Bingo is all about sociability as our busy chat rooms will testify! Many of our players are older people or have older people in their lives. We want to create awareness that older people can often be lonely and on their own but that needn’t be the case.” Kate Rooks, senior corporate development manager at the Royal Voluntary Service, added: “Our partnership with GalaBingo.com will help us raise awareness of the devastating impact of loneliness and raise vital funds to help our volunteers make a difference to someone’s Christmas. A simple chat with someone can lift the spirits and change someone’s day - or life.” Meanwhile, Gala Coral has signed a deal selling 47 bingo hall properties, with another

ANALYSIS Whilst 2014 has proved to be a successful year for Amaya Gaming and its corporate value, financial analysts have predicted that Baazov and his firm face a tough 2015, as the operator will have to justify its leveraged acquisition of PokerStars and FullTilt. Amaya will likely face a decline in revenues having withdrawn from Turkey, Russia and Germany. The igaming and sports betting industry will further await the highly anticipated launch of Amaya Gaming’s sports betting and casino product, as the firm looks to broaden its online gambling product inventory.

term disruption to the share price. One institutional investor told Toronto’s Globe and Mail: “With this type of company in this space, it’s not entirely unexpected. High-yield investors are aware that these things can come up from time to time. It doesn’t necessarily concern them at this point.” Only last month Forbes magazine profiled Amaya Gaming Group CEO David Baazov, declaring him to be the new ‘king of online gambling’ having pulled off the incredible coup of the acquisition of PokerStars.

The profile piece written by Forbes staff editor Nathan Vardi, recounts how Baazov had been eyeing the operations and governance for several months prior to making his move. It further details investment negotiations between Baazov and strategic investment fund Blackstone GSO who would invest $1bn in the acquisition deal, its biggest ever investment commitment. Forbes labelled the $4.9bn acquisition of the market leader in online poker as one of 2014’s most interesting tech buyouts.

five in the pipeline. The deal sees Gala continue to operate retail bingo in the properties, but as a tenant to the new owners M&G Investments, which has spent £173.4m on the deal. As part of this transaction, Gala Retail has entered into new 25 year leases with M&G and has also made a payment of c. £34m to reduce the rent on its bingo properties by approximately £9m to £15.5m per annum. Paul Bowtell, CFO of Gala Coral Group, said: “The announcement is good news for the Gala Coral Group as it further streamlines our financial structure. In addition, the move to current market rents on these clubs for Gala Bingo will enhance the profitability of the business.” The group has also donated £10,000 to Prostate Cancer UK, which raised the funds via its GOALvember challenge. Each week, the challenge asked punters to select a footballer from Coral’s list of players and each time they scored that week, they won a free bet. For every entry into GOALvember, Coral donated £1 to Prostate Cancer UK. Coral PR and broadcast director Simon Clare said: “We’re delighted to be presenting this cheque to Prostate Cancer UK. Punters took part in our GOALvember challenge in their thousands so it’s great to see their ‘free’ bets going to such a wonderful cause.”

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Unibet’s Spin City wins app award

iGaming

Swedish igaming operator Unibet has won the App of the Year award for its Spin City casino games app. Other winners at the inaugural App awards included supplier Playtech which took home the Best In-Play sports betting App while European sports betting operator Betsson won Best Sports Betting App.

Pawlo to step down as Mr Green CEO SWEDEN

ikael Pawlo is to step down as CEO of the AktieTorget-listed operator Mr Green & Co, with the firm’s nomination committee suggesting he should become a new member of the Board. The agreement means that Pawlo will continue serving as CEO until the end of June 2015. As one of the founding trio behind Mr Green, Pawlo has served as the CEO of the company, first in Malta and subsequently when it became a listed holding company. Pawlo explained: “It has been an incredible journey to be part of establishing Mr Green as a secure and entertaining alternative in the European gaming market. We have evolved from an idea in a Word document in autumn 2007 to today having a group with 145 employees and a game win for the third quarter of SEK 484.2m (£40m). The group is now entering a new phase and the foundation has been laid for continued, rapid profitable growth and it is time for someone else to take over.” Tommy Trollborg, board chairman of Mr Green & Co, added: “I cannot emphasise enough the importance of Mikael Pawlo to the success of Mr Green online casino. Under his leadership, we have created a casino experience that we believe is in a class of its own. For this reason, I am delighted that the company can be assured of Mikael Pawlo’s expertise through the proposal to elect him as a new Board member.”

M INTERTAIN LAUNCHED ON THE TORONTO STOCK EXCHANGE IN MARCH 2014

Intertain finishes acquisition of Vera&John thanks to management ‘bridging loan’ Intertain has completed its acquisition of Dumarca Holdings, but only after a £5.5m bridging loan was agreed. CONSOLIDATION

he Intertain Group Limited has completed its acquisition of the entire issued share capital of Dumarca Holdings PLC, the Malta-based parent company of the Vera&John group. As consideration for the Dumarca Shares, the company made an initial payment of 44.5m euro (£34.8m) in cash, exclusive of working capital adjustments, and approximately 5.0m common shares of Intertain. The initial payment was funded through cash on hand and an interim bridge loan of approximately CA$10.0m (£5.5m) provided by certain management of Intertain, on an ‘arm’s length basis’, to ensure that the company continues to have sufficient working capital to fund its growth. The bridge loan bears an interest rate per annum of the prime business rate (as reported by the Bank of Canada) and is due for repayment in five years. Intertain may repay the principal amount at any time prior to the

BettingBusinessInteractive • JANUARY 2015

maturity date. The bridge loan is subordinated to the company’s 8.5 per cent senior secured debentures issued pursuant to an indenture dated 10 July 2014. Intertain CEO John Kennedy FitzGerald commented: “We are very happy to close this transaction and look forward to grow the company both organically and from other potential acquisitions. “The cost of capital we are providing through this temporary bridge loan will be the lowest cost of capital within the company, and further demonstrates Intertain management’s commitment to our vision for the company.” Dumarca Holdings director Dan Anderson added: “Working together with Intertain enhances our expertise in existing markets as well as access to new. We have formed a great team within Vera&John, and look forward to leveraging our abilities to drive revenue synergies across the group and increase the value of our material share ownership.” Intertain may be required to make a further cash payment in

the event Vera&John generates earnings before interest, taxes, depreciation and amortisation over certain thresholds in 2015 and 2016. The cumulative Earn Out payment over 2015 and 2016 is subject to a cap of 8.1m euro (£6.3m). Vera&John provides Intertain with a fully-integrated global online casino, operating in 11 countries with three core brands: Vera&John, Vera&Juan and Vera&John Social. Vera&John generates approximately 75 per cent of its sales from the Nordic region, which will give Intertain access to a large and growing market. In November Intertain posted an adjusted EBITDA figure of CA$6,444,000 (£3.6m) for Q3, over $2m more than the preceding quarter. The group’s main brands, InterCasino and Mandalay Media, were also granted a continuation of licence from the UK Gambling Commission, thereby guaranteeing uninterrupted service for UK-based customers.

ANALYSIS While the board’s directors lending Intertain the money to ensure it has sufficient working capital may show a management that believes in the direction of the company, it suggests that external lenders weren’t as convinced. So it’s no wonder that Intertain is interested in Vera&John’s high cash flow conversion. Given favourable tax treatment, low maintenance CAPEX and negative working capital requirements, Vera&John has historically achieved an operating cash flow to EBITDA conversion rate of approximately 100 per cent.

MIKAEL PAWLO WILL CONTINUE SERVING AS CEO UNTIL THE END OF JUNE

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

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

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PLAY moves onto mobile

iGaming

PokerStars has made its Facebook app PokerStars PLAY available as a standalone app for mobile and tablet devices on both iOS and Android platforms. The PokerStars PLAY mobile app is free-to-play, with the option of in-app purchases to increase play money bankroll. It also uses innovative gesture-based controls, designed to simulate real poker play. Rather than clicking buttons to bet, raise or fold, players can now slide chips or cards into the middle of the table.

EGBA pushing for more EU harmonisation for gambling

iGAMINGBRIEFS HOLLAND APPLICATION PROCESS OPENS

MAARTEN HAIJER: ‘CONSUMERS AND OPERATORS ALIKE BENEFIT FROM A MORE HARMONISED APPROACH’

Following the inclusion of the industry in the latest Anti-Money Laundering Directive, the EGBA wants the fragmentation of gambling laws to be addressed. EUROPE

he European Gaming & Betting Association (EGBA) has welcomed the inclusion of the online gambling industry in the Fourth AntiMoney Laundering Directive. EGBA secretary general Maarten Haijer believes that the industry’s inclusion in this new directive is a positive step towards more European harmonisation for the gambling sector. He said: “EGBA has actively engaged with the EU institutions to include online gambling in the directive. The new directive ensures that EU online gambling providers now have one rather than 28 sets of AML rules to comply with to provide their services in the EU. The risk-based assessment underpinning the directive will apply to all services, with the exception of land based casinos where there can be larger sums of cash money involved. “With only electronic payments, no cash and perfect

traceability on the internet, EGBA is confident that the directive will further add to the safe provision of EU regulated online gambling services.” The EGBA is now pushing for further harmonisation, in the hope that perhaps an online gaming directive will see the light of day and regulate the industry across the many jurisdictions which currently offer all manner of rules, restrictions and taxation hampering economies of scale across Europe. Haijer explained: “The inclusion of the online gambling sector in the new antimoney laundering directive adds to the growing number of European legislation applicable to the online gambling sector. Following this success, EGBA encourages the European Commission to come forward with additional EU initiatives to address the regulatory fragmentation that the sector is currently facing. Consumers and operators alike benefit from a more harmonised approach at the

European level.” Clive Hawkswood, chief executive of the Remote Gambling Association, is a bit more circumspect about the possibility that one set of money laundering rules will be applicable across Europe. He commented: “The fourth AMLD, like its predecessors, sets minimum standards for EU Member States to follow. However, it is important to remember that each of the Member States has a great deal of freedom to implement its measures, and any others that it feels are appropriate, on the basis of a national risk assessment that they must each undertake. One result of this is that although the benchmark will be the same across the EU, it is very likely that the exact requirements and regulations in each country will be different. “As a consequence of this, the finalisation of the fourth AMLD will for most gambling operators still mark the start of the process rather than the end while every EU Member State moves towards imple-

menting changes in two years’ time.” The fourth anti-money laundering directive (AMLD) will for the first time oblige EU member states to maintain central registers listing information on the ultimate beneficial owners of corporate and other legal entities, as well as trusts. These central registers were not envisaged in the European Commission’s initial proposal, but were included by MEPs during the negotiations. The aim is to enhance transparency, make dodgy deals harder to hide and fight money laundering and tax crime. MEP Krišjanis Karinš commented: “For years, criminals in Europe have used the anonymity of offshore companies and accounts to obscure their financial dealings. Creating registers of beneficial ownership will help to lift the veil of secrecy of offshore accounts and greatly aid the fight against money laundering and blatant tax evasion.”

ANALYSIS The RGA’s Clive Hawkwood doesn’t anticipate too many problems for the online sector because online casinos were already covered by the third AMLD, and most operators also applied similar rules to the rest of their business, so there is already a high level of expertise and a culture of compliance across the European online industry. He added: “This means the industry is well placed to work with governments and regulators to deliver detailed anti-money laundering regulations that will provide a proportionate response to the threat without placing unnecessary burdens on the sector. Unfortunately, in some jurisdictions that may be an uphill struggle.”

Funding for Indian social gaming start-up INVESTMENT

laySimple, an Indian mobile social gaming start-up, has raised an undisclosed amount of funding from venture capital firm IDG Ventures India in a round of fundraising that also included angel investor and former Zynga executive Yezdi Lashkari. The Bengaluru-based start-up will use the funds to build a portfolio of mobile

casual games targeting the global markets. Siddharth Jain, cofounder of PlaySimple, said: “Our vision is to build a world class mobile entertainment company out of India. We believe that there is a huge opportunity out there and now is a great time to go after it.” Jain co-founded the start-up this year along with

his Zynga colleagues Suraj Nalin and Preeti Reddy and software engineer Siddhanth Jain. PlaySimple has already released a game title, GuessUp. With this funding, the company is looking to release multiple games over the next few months early in the new year before they start raising their next round of capital.

Karthik Prabhakar, senior associate at IDG Ventures India Advisors, commented: “Globally, mobile gaming is a very large, growing market. Gaming is a hits business, but the ones that succeed do take off rapidly towards profitable growth in a short period of time. The team at PlaySimple is young and highly experienced in build-

ing, scaling mobile games for the global markets.” IDG is a global network of technology venture funds with over $6bn under management has already built a successful portfolio of gaming investments in the US and China. One such investment, Funzio, was acquired by Japanese gaming company GREE for $210m two years back.

Dutch gambling regulator Kansspelautoriteit has opened its online gambling application process. Operators interested in servicing legal online gambling services to Dutch consumers have been requested to apply via the Kansspelautoriteit website.The Dutch regulatory will begin to assess first applicants for a regulatory Dutch igaming market. All applicants will be kept informed of their process and any further legislative developments. FAS FINING GOOGLE OVER GAMBLING ADS

Russia’s Federal Antimonopoly Service (FAS) has said that Google is facing administrative penalties for featuring gambling ads in the country, following a complaint to the FAS filed by a user who came across a gambling ad in the search engine. Google explained the banned advertising by bots that can get around AdWords filters. “Unfortunately, in some cases questionable advertisers attempt to find holes in our filters by various means and sometimes they succeed. We are constantly improving our system and working on the reliability of our filters,” the FAS said, citing a Google statement. CAESARS HOPES MERGER SOLVES DEBT PROBLEMS

US casino group Caesars Entertainment Group (CEC) has entered into a definitive agreement to merge with equity investment firm Caesars Acquisition Company (CACQ) as it seeks to solve its US$18.4bn debt crisis. Under the terms of the merger deal, CEC shareholders will own about 62 per cent of the combined company, with CACQ shareholders taking the rest. The merged company will also own Caesars Interactive Entertainment, Harrah’s New Orleans, Harrah’s Atlantic City, Harrah’s Laughlin and CACQ’s current equity interest in Horseshoe Baltimore.

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Betting Bwin betting app contains ‘industryfirst’ game

Towcester hoping greyhound track with enhance business

MOBILE

NEW BAGS CHAIRMAN DOMINIC FORD

A promising start for Towcester Racecourse’s new greyhound racing endeavour might see the emergence of a new business model. RACING

he first new greyhound track to open in almost 20 years has got off to a promising start, with more than 4,000 people attending the first dog meeting. The new track has been developed alongside Towcester Racecourse and is the first dual-racing venue in the country. Owner Lord Hesketh told the BBC that the greyhound facilities will help the long term-future of the racecourse. He said: “If this place is going to survive and prosper, it’s going to have to operate for more than 17 days a year. There’s a lot of money been spent here - you’re looking north of £15m.” The greyhound circuit cost £1.8m to create, with the rest of the money spent since 2006 to redevelop facilities at the course. Racecourse chief executive Kevin Ackerman explained to the Racing Post that they are not

expecting to get everything right from the start. “Of course it’s a learning curve. We’ve also had constructive ideas and comments and will be both improving and fine-tuning things in the light of experience. Although there’s a crossover of customers for horseracing and greyhounds, there are differences and we’ll be assessing how best to meet expectations.” Other teething problems have stemmed from the betting ring as Towcester’s tote operation is offering a remarkably generous 18 per cent retention on the Tote win pool. Ackerman said: “Tote betting has almost fallen into disuse at some tracks, principally because it’s bad value, but that won’t be the case here.” He has pledged that the bookmaking betting market will ‘offer better value’, but it remains to be seen whether on-course bookies will be able to turn a profit if they

win has updated its mobile betting offer to provide what it describes as the first sports betting app to be truly designed around users’ fingertips, delivering an intuitive interface with innovative gesture-based controls. Available on both iOS and Android devices, the new app uses dynamic navigation to bring instant access to a wealth of sports, leagues and events, as well as multiple entry points for ‘quick dives’ into the odds that sports fans require. The new app also introduces ‘Slider Blackjack’, a unique and ‘industry-first’ mini-game which allows the player to seamlessly swipe, with the flick of a finger, between placing a bet and playing a hand or two of Blackjack. Meanwhile, a live scoreboard ensures they never lose track of their bets or the latest match action. As well as a slick interface, Bwin has packed the app with statistical content including quick view head-to-head data, team performance records, individual player stats and league tables, plus live video feeds of sporting events from around the globe. The pan-European release of native iOS and Android apps follows ‘outstanding’ customer feedback from a trial release launched in Spain earlier in the year, exclusively on the company’s bwin.es label. Sam Sadi, bwin’s director of sports labels, said: “We are very excited about the launch of the new Bwin sports app. Our customers demand the very best betting experience from us and with this update, that is exactly what we are delivering. But more than that, the app’s dynamic navigation, clean design and ground breaking features such as Slider Blackjack, mean that Bwin is once more at the leading edge of mobile development.”

have to compete on-course with a keen tote. Ackerman added: “We are still very much on a learning curve. We have taken a punt on greyhound racing in many ways with the investment here to make it a dual facility. But we have absolute faith in the industry and will look to flourish step by step.” Meanwhile, Towcester has been added to the BAGS roster, along with two other new tracks, Wimbledon and Doncaster. 53 meetings having been allocated to the Northamptonshire stadium on Friday and Saturday evenings, starting from 3 April. Incoming BAGS chairman Dominic Ford said: “I am taking over as chairman at BAGS just as it has announced its most extensive fixture list. This represents a major endorsement in the strength of British Greyhound racing and the value that BAGS brings to all of the tracks.”

ANALYSIS A new greyhound stadium is a welcome boost to a sport that has been massively suffering of late, with numerous racetracks closing down in the past ten years. With the future of Wimbledon undecided, it is currently going head to head against league football team AFC Wimbledon for planning permission, BAGS has been bold in providing the venue with 29 BAGS slots as the sport hopes to retain greyhound racing as a sport within the capital.

Senet Group launches responsible gambling messages ADVERTISING

embers of the Senet Group have now committed to carrying prominent new responsible gambling messages on all TV advertising and other forms of advertising online and in betting shops. The main message will be ‘When The Fun Stops, Stop’, which will appear on advertising carried by bookmakers in order to raise awareness of the potential risks of gambling and the

benefits of staying in control. Gambleaware.co.uk will also feature more prominently in the new straplines, as a source of advice for those who may have a

10 BettingBusinessInteractive • JANUARY 2015

bling standards and ensure that the marketing of gambling is socially responsible. All TV advertising by Senet Group member companies will carry the prominent new message about responsible gambling and it will appear in their shop windows, in press advertiseproblem with gambling. ments and other forms of The messages are part of advertising, making this the a campaign led by Senet, the most visible warning yet to independent body set up by be carried by the industry. William Hill, Ladbrokes, Later in January, the Coral and Paddy Power to Senet Group will be launchpromote responsible gaming a broader campaign to

promote responsible gambling, including a major TV and radio advertising campaign. Ron Finlay, interim chief executive of the Senet Group, said: “Gambling companies provide fun and entertainment for huge numbers of people. But if you’re spending more than you can afford, it can lead to stress, anger, guilt and other problems. When gambling stops feeling like fun, it’s time to call it quits.” Marc Etches, chief executive of the Responsible

Gambling Trust, said: “We commend the Senet Group for its campaign to help gamblers stay in control of their gambling. This initiative is a new and important step in the evolution of responsible behaviour among British-based gambling businesses. We are pleased that the campaign features GambleAware, an easy to remember website that offers help to all those who need confidential advice or support with problem gambling.”

BB124-p10-14-Betting_09/10 02/01/2015 10:27 Page 2

Forest wins Sky Bet cash

Betting

English Championship football club Nottingham Forest have won a Sky Bet £250,000 transfer fund to spend in the upcoming January transfer window, despite being subject to a Football League transfer embargo. Sky Bet ran the competition to celebrate its title sponsorship of the English Football Leagues. The betting operator had drawn a shortlist of 10 Football League fans from its customer base.

Some good half-year results from Betfair have provided it with some momentum into what looks like being a costly tax year.

MOBILE REVENUE NOW REPRESENTS 70 PER CENT OF SPORTSBOOK REVENUE FOR BETFAIR

Betfair counts the additional cost of point of consumption TAXATION

he point of consumption tax would have cost Betfair more than £40m had it been imposed for the full year, according to the exchange’s financial reports. For the six months ended 31 October, Betfair saw revenue up 26 per cent, driven by strong customer base growth and successful gaming crosssell, as well as the World Cup and ‘favourable sports results’. Even excluding the World Cup and unusually high gross win margins, revenue was up 12 per cent and the strong revenue growth resulted in EBITDA up 51 per cent to £73.9m. The first half result, coupled with recent trading performance, means Betfair now expects full year EBITDA of between £97m and £103m. This includes an estimated incremental cost of approximately £18m, following the introduction of the Point of

Consumption gaming tax in the UK from 1 December 2014. The firm said: “If this tax was in place for the full year, we estimate that the cost would be approximately £44m.” Betfair CEO Breon Corcoran said that the results demonstrate strong delivery against its strategy for achieving sustainable growth that we outlined two years ago. He said that Betfair has substantially strengthened its competitive position by investing in products that differentiate Betfair and by enhancing our marketing capabilities in a crowded market place. He explained: “Innovative products such as Cash Out, Cash Back Extra and Price Rush, coupled with a relentless focus on providing value through market leading promotions and odds, have allowed Betfair to acquire and retain more customers than ever before. Over one million customers bet with us in the first half of the year, a

50 per cent increase on last year. “Our focus on regulated jurisdictions is also paying off. Revenues from sustainable markets grew by 32 per cent in the first half of the year and now contribute more than 80 per cent of total revenues. Betfair has also delivered considerable operational gearing and, as a result, strong top line growth has led to substantial EBITDA margin expansion and strong cash generation. In the last 12 months, Betfair has generated underlying free cash flow of £114.1m and had £271.4m of corporate cash at 31 October.” The performance also means that the exchange has been able to announce a £200m return of capital to shareholders and an increase in our targeted dividend payout ratio - a welcome fillip to those who have seen Betfair’s share price dip sharply after its IPO and gradually make its way back up the hill.

Part of this is down to the long-term strategy of focusing investment in markets that have ‘sufficient regulatory visibility’ to lower the risk of ‘unfavourable regulatory outcomes’ which are not exactly unknown in online gambling. The exchange is now licensed in Italy and Bulgaria, and Betfair operates its sportsbook in Spain, sustainable markets are now defined as: UK, Australia, Bulgaria, Denmark, Gibraltar, Ireland, Italy, Malta, Spain and USA. These countries now contribute 81 per cent of Group revenues. Corcoran added: “We have recently commenced trials of a cross-market liquidity matching mechanism on the Exchange. The functionality will enable the liquidity on connected Exchange markets, such as Match Odds and Draw No Bet, to be interlinked. This will improve liquidity, and provide a better customer experience, in ancillary markets.”

ANALYSIS This must be the first set of Betfair figures to mention ‘favourable sporting results’ which shows the boost that the group’s sportsbook has given to revenues, at least this year. In the past, the exchange model didn’t discriminate between favourable and unfavourable results, as the firm always received the commission on the matched bets. Perhaps these results mark the point where Betfair, instead of being a pioneering betting exchange, became a regular bookmaker with some innovative products. It seems to be working for the bottom line though sports revenue was up 24 per cent to £166.6m, with £15.9m coming from the World Cup.

Betabet buy brings BetSid brand to Chorley INDEPENDENT

reston-based independent BetSid has extended its retail estate again with the acquisition of two shops in Chorley. BetSid has bought fellow independent Betabet and will be rebranding the shops early this year. The takeover secures seven of its Betabet’s employees and provides employment opportunities in the local area. BetSid has experienced rapid expansion since it began trading in June 2013 and is the exclusive betting partner of Preston North End FC. Paul Kirkby, operations manager for BetSid, told the local paper: “There was real opportunity in the expansion of BetSid into Chorley, the firm had an established presence on the high street and a secondary premises in the town. We are really pleased the current Betabet team are staying with us and the continued success of our business will provide more opportunity for local employment into a trusted and local booking firm. “There are not many independent bookmakers on the high streets of Britain any more but we are confident we have something to offer and things have been going brilliantly since the start.”

New Paddy Power CEO arranges his team APPOINTMENTS

addy Power’s new CEO Andy McCue has been getting his team ready for him hitting the ground running. Despite not officially taking up the role until 1 January, last month saw McCue arranging his ‘backroom staff’ at the Irish bookmaker. Peter O’Donovan has been appointed ‘chief product officer’, leading a newly created product function which brings together the technology and product development teams across

Paddy Power and Cayetano in Bulgaria. In addition, the technology department of Sportsbet, the group’s Australian business, will have a dotted reporting line into O’Donovan. Global product innovation will also be coordinated centrally under him. Johnny Hartnett has been appointed managing director, Paddy Power Online with responsibility for paddypower.com and paddypower.it, together with Dial-a-Bet and Customer Operations. Hart-

12 BettingBusinessInteractive • JANUARY 2015

nett is currently director of operations at Paddy Power and was previously COO in Sportsbet, and prior to that head of sports risk & trading in Paddy Power. Christian Woolfenden has been appointed managing director, retail (UK & Ireland). Woolfenden has been global marketing director at Paddy Power since 2011, having previously been global brand director for the Bacardi brand. Prior to joining Bacardi in 2008,

ANDY MCCUE HAS BEEN GETTING HIS TEAM IN PLACE

Woolfenden worked for eight years at Procter & Gamble in Switzerland and London in finance and marketing roles. A search process is underway to fill the role of marketing director. McCue commented: “These appointments reflect a strategic emphasis on customer and product. I am delighted to be filling these positions with high calibre individuals with a proven track record of success in the group.”

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Betsson goes Large

Betting

Betsson has become the first ‘pure internet’ company to be listed on the Nasdaq Stockholm Large Cap. Betsson qualified to be upgraded to the Large Cap list 1 January 2015 as its market cap has been greater than EUR 1bn over the past two years. CEO & president Magnus Silfverberg said: “The fact that Betsson is entering the Large Cap list demonstrates that we have a well-functioning business with talented employees and a clear strategy.”

Football pools with a fixed odds twist

A new way of dealing with self-exclusion is being trialled in Chatham thanks to the co-operation of a number of local stakeholders.

Self-exclusion trial launches in Medway

SOCIAL RESPONSIBILITY

he Association of British Bookmakers (ABB) and M e d w a y Council have launched Britain’s first scheme that will allow anyone developing a problem with their gambling to exclude themselves from every betting shop in Chatham. Existing schemes mean that while someone can exclude themselves from one specific operator, they would need to fill in separate exclusion forms for each betting brand. However, under this trial scheme, a customer only needs to fill out one form and submit two passport photos at one shop, and the details will be automatically be circulated to all shops participating in the pilot scheme. The customer will then be unable to place a bet in any of those shops. Launched at a Coral shop in Chatham town centre, the event was attended by Medway Councillors, and repre-

sentatives of betting shop operators, and follows the formation of the Medway Responsible Gambling Partnership which was signed by the Council, the ABB, Kent Police and the Safer Medway Partnership. Speaking at the launch, Councillor Peter Hicks, portfolio holder for community safety and customer contact, said this was an important initiative: “This is a real coup for Medway, with the only multi-operator selfexclusion scheme in the country. It puts the Council and our partners at the cutting edge of responsible gambling.” In the run up to the pilot, shop staff have been specially trained to help customers fill out the form and understand the agreement they are signing with the ten shops taking part in the scheme. Someone taking part will also be advised of all the other help available, including counselling sessions and group therapy which is funded

by the industry. This is in addition to other measures being introduced by the ABB member shop, including devoting 20 per cent of all window advertising to responsible gambling messages, increased prominence to gambling helplines within the shop and requiring gaming machine players to choose whether to set a limit on the amount of money they spend or time they play for. As part of the industry’s Responsible Gambling week planned for the end of January, shop staff will also be promoting the benefits of setting a limit when they play on gaming machines. Hilary Douglas from the ABB said: “We are pleased to have launched this ground-breaking pilot scheme. It is the result of building a strong relationship with Medway Council and local councilors, which will help customers in Chatham to bet safely and responsibly, which is

what we all want.” Councillor Vince Maple, the leader of the Labour Group, said “The issues of gambling on our high streets continues to be something which residents raise with me on a very regular basis. I believe solutions to the issues need a multi-level approach with change at both a local and national level. The Medway Responsible Gambling Partnership will be an important way to look at the issues here in Medway and seek to find positive solutions.” Meanwhile Councillor Geoff Juby, the leader of the Liberal Democrat Group, was less fraternal: “Whilst I welcome the code, I do not think it addresses the issue of the concentration of betting shops in deprived areas. If planning laws permitted local councils to limit the number of betting shops in any one area, this would do far more to cut down the use of these establishments by problem gamblers.”

ANALYSIS Working with councils on a local level is a very welcome development for the betting industry, especially given the key role they play in the planning process these days. While a lot of the posturing against betting shops by councils is more politically motivated, some councils still feel like they have been run roughshod by the betting industry’s move to the high street from off-high street locations. While this has been more of a mechanism of the planning process and the limitations placed on councils, it’s still the bookmakers who have received the brunt of the discontent, especially as in some cases their very presence in the constituency is a daily reminder of an antiLBO councillor’s failure.

Capital rebranding idea from BoyleSports BRANDING

rish bookmaker BoyleSports launched its new brand identity last month at its Grafton Street shop in Dublin. Owner John Boyle unveiled the new brand with the help of jockey Barry Geraghty, former GAA footballer Ciaran Whelan and soccer pundit Eamonn Dunphy. Commenting on the new brand launch, John Boyle, CEO of BoyleSports, said: “The new brand launch further signifies to customers that BoyleSports are serious about sport and that you can always Bet On Boyle to have you covered for any sporting event that you wish to bet on.” As part of the rebranding,

which has seen the firm capitalise the S in the middle of its name, the bookmaker has also introduced the social media tag #betonboyle to give it greater traction on Twitter and Facebook Boyle added: “We had over 16,000 In-Play events to bet on in November which was a massive 100 per cent increase on the 8,000 in November 2013. This further solidifies our efforts to ensure that BoyleSports’ customers can get the best betting experience possible here, there or anywhere through all of our betting channels.”

14 BettingBusinessInteractive • JANUARY 2015

EAMONN DUNPHY, JOHN BOYLE, BARRY GERAGHTY AND CIARAN WHELAN

POOL BETTING

he Football Pools has launched MatchXtra, a new punter-friendly pool betting opportunity with a fixedodds vibe. MatchXtra uses innovative pools technology from Longitude LLC, a New York-based technological solutions company, to offer exceptionally competitive odds on Premier League and other matches throughout the world. With MatchXtra, customers are able to bet on fixed odds-type markets, such as, home/draw/away, correct score and both teams to score, with a growing range of additional markets becoming available. These new pools-based bets offer popular betting options, unparalleled value and, importantly, the ability to bet without being knocked back or having your stakes restricted. MatchXtra soft launched in October on footballpools.com and the odds are already proving to be attractive to customers despite the ultra-competitive Premier League betting market. Conleth Byrne, managing director of The Football Pools, said: “The benefit to customers is that it’s a pool mechanism, not fixed odds and therefore the prices become market-driven at low betting margins. Working alongside Longitude to develop this new concept has been a really positive experience and an important step for The Football Pools.” Tom Ascher, CEO of Longitude, said: “The launch of MatchXtra is a significant milestone for Longitude as is the partnership we have created with The Football Pools. We are thrilled that our technology was selected by The Football Pools for this important expansion, and we look forward to ongoing collaboration and future enhancements to the MatchXtra offering.” The development of MatchXtra is a revolutionary step for the Liverpool-based operator and is intended to signal the start of more exciting developments to come. In the coming months MatchXtra will be expanded to cover a greater range of betting opportunities across a growing number of matches. New offerings will include ‘Price Match’ the ability for customers to choose the odds at which they want their bet placed, lay betting and multi-game betting, all powered by the globally patented Longitude technology.

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Coral extends Ayr partnership

Betting

Coral and Ayr Racecourse have agreed a new five-year deal for the bookmaker to continue its backing of the Scottish Grand National. Coral has sponsored the race since 2007 and will continue to do so until at least 2019. Simon Clare, Coral PR and broadcast director, said: “The Coral Scottish Grand National is now one of the most watched and most bet on horse races in Great Britain and the race continues to go from strength to strength.”

BETTINGBRIEFS TITANBET ON TALKSPORT

‘TAB of the future’ TattsBet is not only rolling out its new UBET brand this year, but a brand new concept in betting shops.

SCHMEICHEL SIGNS FOR TIPICO

AUSTRALIA

ustralia is about to see a new style betting shop from one of its biggest operators. TattsBet has revealed its concept for the ‘TAB of the future’ in time for the business’ rebrand as UBET. TattsBet chief operating officer Barrie Fletton said the new concept would be a best of breed experience for wagering customers globally. “Our environment hasn’t evolved a great deal over the years. We’ve refreshed a number of agencies across the network, but not stepped back and properly considered the concept as a whole. We think this will be a game-changer for wagering in Australia. “We appreciate some of the existing outlets are pretty outdated and not particularly inviting. This new concept will help attract a new, younger customer, while making our existing customers more comfortable. Both racing and sports punters will notice a dramatic improvement.”

The new shops feature video wall technology, focussed audio ‘sound canopies’, in-built headphone jacks, ‘a purpose built scent’, and a new interactive betting terminal. Also new is the UBET Live unit an innovative standalone unit dispensing tablet devices, with a dynamic app allowing punters to bet on a digital platform in the comfort of their seat, subject to regulatory approval. Design-wise, the local postcode will be integrated into the design features and is linked back to sport and racing through relevant statistics and facts using combinations of the numbers in the postcode. A dedicated space has been allocated for community messages, tipping competitions etc. Social media will be integrated into the entertainment hub. Fletton added: “In developing our new UBET brand, retail was top of mind. One of the key aspects we considered as part of the

rebranding process was the fact there was little alignment between our online and retail offerings. The rebrand, new retail concept and new website and mobile app will allow us to create a seamless, multi-channel experience. “We know punters aren’t channel exclusive. Someone who regularly uses a mobile app, for example, might prefer to bet in person when they’re at the pub with their mates. Likewise, some of our regular retail customers also bet over the phone or online. We’re working on ensuring all channels are delivering an exceptional experience and this new retail concept will do that.” Fletton said that while the wagering sector had experienced growth driven largely by the digital channels, retail would remain a priority under the UBET brand. “Retail still represents around 70 per cent of our business. What we’ll be aiming for under this new brand is growth across all channels as we invest in the

product and service offering.” Working with its branding and design agency and retail design studio, the team conducted an extensive immersion tour across retail outlets of all kinds, at different times in different locations, to fully understand the customer behaviour to apply to the new concept. Fletton added: “It’s exciting to look at all these wonderful innovations as concepts, but we need to test them in a live environment, listen to our customers and see what works and doesn’t. From there we can look at what the best options are for rolling out across the network. “The great thing about the model we’re developing is that it is modular and scalable and easily adaptable as we evolve and as technology develops. We’re not investing in something that will be outdated in twelve months when the next technological advancement is made.”

ANALYSIS Tattsbet has clearly been putting plenty of time and effort into its rebrand and the new possibilities available in the retail environment. The fact that a couple of the concepts are still subject to regulatory approval shows how far the firm is pushing the envelope. As Barrie Fletton said: “This is one of the most exciting times in our business’ 52year history. There’s been a huge amount of work going on in the background over the past 12 months and we’re excited to launch a number of initiatives, along with the new retail concept, in the new year.”

William Hill launches dedicated dart app DARTS

illiam Hill, the new sponsor of the PDC World Darts Championship, has launched a new darts in-play betting app. The William Hill Darts app, which is now live in the App Store, includes innovative features such as live match simulation from all major PDC and BDO events, player statistics and results. There will also be up to

Titanbet has continued its promotional push into the UK betting market by becoming a partner of national commercial radio station talkSPORT. The online sportsbook has joined forces with the station’s Kick-Off show, presented by Mark Saggers, and will receive a number of on-air mentions. Their brand ambassadors, including head of UK sportsbook Russell Yershon, will also take part in three interviews a week to discuss the latest odds and betting markets. Yershon said: “Having deals with offline, online and now broadcast outlets allows us to grow our brand even further and talkSPORT’s audience provides the perfect demographic for us to make the next step as a business.”

26 betting markets per match available on the app including; Leg Winner, Highest Checkout, Under/Over, Red/Green, Number of 180’s and Correct Score. Current William Hill account holders can use their existing log-in to access the action and new customers can select the quick and easy ‘Join Us’ button. “We’re really excited about the start of the

16 BettingBusinessInteractive • JANUARY 2015

William Hill World Darts Championship and the launch of our new darts app,” said Jamie Hart, director of innovation and customer experience at William Hill. “I think we’ve hit the bullseye with this app and believe it will be a massive hit with darts fans.” William Hill was predicting £10m of bets on the World Darts Championship for the first time ahead of the tournament.

Peter Schmeichel has joined legendary goalkeepers Oliver Kahn and Michael Konsel as an ambassador for German bookmaker Tipico. Jan Bolz, CEO of Tipico Ltd, is excited about the prominent new signing: “During his active career, Peter Schmeichel was not only incredibly successful, but he also enjoyed an untarnished reputation as a great sportsman. Schmeichel stands for success, sporting integrity and trust. These are values which the brand Tipico stands for as well. We are proud of our three brand ambassadors.” Schmeichel said: “I am proudly looking forward to work as an ambassador for a serious betting provider like Tipico. It will be fun to work with my old colleagues. Now we are no longer competitors, but will work together to promote the brand Tipico.” ALGERS JOINS BETWAY

Betway has appointed Alan Alger as sporting events & media relations manager. Alger was previously with City Index, SpreadEx, Sportingbet and then Blue Square in June 2007 where he was PR Manager for six years. Most recently Alger headed up Skrill’s sponsorship of the three Football Conference divisions. He said: “I’m thrilled to have joined such an ambitious and fastgrowing business and I am really excited about Betway’s plans for the coming months and beyond.” Betway CEO Richard Akitt added: “Alan’s experience in betting and public relations speaks for itself and makes him an outstanding addition to our expanding team. His vast knowledge will be a crucial asset as we continue to grow the Betway brand.”

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BB124-p16-Politics_09/10 02/01/2015 10:38 Page 1

Politics The Gambling Commission has been hauled back for overstepping the mark when it prevented a pub from applying for a bingo licence. Having lost in the courts, the Commission has decided to appeal the decision.

Bingo pub judgment leaves Gambling Commission in a quandary

LICENSING

oftware providers across the globe are being reminded that they must apply for a Gambling Commission licence if the businesses they supply are licensed by the Commission. From 31 March 2015 Commission licensed operators are required to only source gambling software from Commission licensed software businesses. Software providers are being advised to apply for the relevant licence at the earliest opportunity to avoid potential disruption to business. A Commission spokesperson said: “Licence applications normally take six weeks to process but can take longer if the application is incomplete or the Commission needs to investigate further. We are therefore advising software providers who need a licence to make their applications as soon as possible and preferably before 31 December 2014.” Further information on who needs a gambling software licence can be found on the Commission website. Gambling software is defined in the Gambling Act 2005 as computer software that is used in connection with remote gambling but does not include anything for use solely in connection with a gaming machine. An operator requires a gambling software licence if it manufactures, supplies, installs or adapts gambling software that is used in connection with remote gambling.

BINGO

he Gambling Commission has got a legal fight on its hands which could have huge implications for gambling legislation in the UK and the regulator’s control over it. Last month saw the FirstTier Tribunal quashing the Gambling Commission’s refusal to grant Greene King a bingo operating licence for one of its pubs in a move that could well see the regulator watch on helpless as the industry develops in a way unforeseen by the 2005 Gambling Act. The ruling threatens to undermine one of the key aims of the Gambling Act, which was to set up a regulator with flexible enough powers to react to developments in a dynamic market around a loose legislative framework.

Commission reminds providers of the need for a software licence

However, the First-Tier Tribunal seems to be firming up some of the regulatory requirements. A spokesperson for the Gambling Commission said: “We are seeking permission to appeal the decision of the First-Tier Tribunal requiring the Gambling Commission to allow [license] a pub chain to introduce commercial gambling with potentially large numbers of gaming machines into pubs. This ruling appears to handicap the Commission in doing what it was set up to do that is, react to new developments and protect the vulnerable. “We are clear, and this view is strongly supported by the government, that commercial betting, gaming and bingo and any associated high stakes and prize machines should be provided only in separate

premises licensed for that specific purpose - premises that adults make a deliberate choice to visit in order to gamble. A judgment from the Upper Tribunal should hopefully clarify what we can and can’t do by way of operating licence conditions. Meanwhile, we are working closely with the Department for Culture, Media and Sport to see how we can both use our various powers to keep commercial gambling in dedicated licensed premises and stop it spreading to pubs.” The Tribunal’s logic was that under the Gambling Act 2005 it is a licensing authority, rather than the Gambling Commission, that has the power to determine premises licence applications, and the Commission has no power to impose a condition on an

operating licence that the licensed activities are not provided ‘at a specified place or class of place’. The Decision Notice concludes with a finding that ‘it is not open to the Commission to use s159(3) of the Act to give them an effective right of veto on an application for a premises licence. Their role in respect of premises licences … is to give guidance; make representations; even appeal against the licensing authority’s decision – but not to usurp the role of decision maker’. Of course this opens wider questions on the Gambling Commission’s powers over premises licensing and whether its stance on things such as primary purpose and premises within premises will be able to withstand scrutiny under the eye of the law.

ANALYSIS While some have taken the First-Tier Tribunal’s ruling as meaning that pubcos can now apply for bingo licences carte blanche, it’s not quite the case. As David Clifton of Clifton Davies put it: “It may be thought that is rather overstating the effect of the decision in the sense that it merely enables Greene King to proceed with applications for bingo premises licences for its pubs. Whether or not to grant such licences (with their accompanying machine entitlements) will be a matter for the licensing authorities to which such applications are made. It will be of interest to the industry and lawyers alike to see how this develops further.”

New Zealand looking to tackle offshore operators NEW ZEALAND

lenda Hughes, chair of the New Zealand Racing Board, has welcomed the off-shore betting announcement made by Minister for Racing Nathan Guy at the organisation’s Annual General Meeting in Petone. Speaking from the AGM, Guy announced the creation of a working group to develop recommendations to combat the impact of offshore betting on racing and sport. He said: “Betting through overseas providers

deprives our local industry and sports of the funding they deserve.” It is estimated that New Zealanders bet up to NZ$300m (£148m) per year with overseas agencies. Hughes says this is concerning because overseas bookmakers are benefiting from New Zealand’s great racing and sports products without contributing to the industries. “Profits generated from the TAB are returned to the racing and sports industries

18 BettingBusinessInteractive • JANUARY 2015

which is the whole point of the model, but offshore betting is eroding this. Overseas bookmakers do not pay gambling levies, totalisator duty or GST, or have measures in place to manage problem gambling or corruption that meet New Zealand standards.” Ministerial officials are currently preparing membership options and the group’s terms of reference. The Minister says he currently expects to see recommenda-

NATHAN GUY: ‘OVERSEAS BOOKMAKERS DO NOT PAY GAMBLING LEVIES’

tions for change from the working group in late 2015. Hughes says the issue of offshore betting has been a longstanding one for the industry that has created an uneven playing field in an increasingly competitive market. “We welcome the Minister’s announcement and look forward to seeing the recommendations from the working group,” she said. The NZ Racing Board posted a Net Profit of

$137.0m for the financial year ending 31 July – a marginal increase on the 2012/13 financial year. The three racing codes - NZ Thoroughbred Racing, Harness Racing NZ and Greyhound Racing NZ received $134.1m (£66.4m) in distributions while National Sporting Organisations received $5.0m (£2.5m) and a record $2.3m (£1.1m) was paid or provided to other sporting bodies from gaming activities.

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BB124-p16-Politics_09/10 02/01/2015 10:43 Page 2

RGA repeats tax argument

Politics

Levy yield dip will see ‘significant reduction’ in 2016 expenditure

Levy top up to be used to develop field sizes

HORSERACING

FUNDING

he extra money provided to horseracing by the country’s four biggest retail bookmakers has been earmarked for staging a more competitive British racing product and generate growth in the Levy. The Additional Voluntary Contribution (AVC) Fund of £4.5m is supplied by William Hill, Ladbrokes, Coral and Betfred as part of the 53rd Levy Scheme and the decision to use the Fund in this manner has been agreed upon between BHA and its stakeholders of Racecourses and Horsemen, the four bookmakers and the HBLB. BHA chief executive Paul Bittar said: “It is essential for the long-term prosperity of the sport that the racing product which we deliver is attractive to both domestic and international customers. It is for this reason that we recently announced a series of race-

he Horserace Betting Levy Board’s allocation to prize money in calendar year 2015 is to be maintained at its 2014 levels along with that of other key items of expenditure. The Board’s budgeted expenditure in 2015 is £78.0m, up on the £77.5m budgeted in 2014. These figures exclude Additional Voluntary Contributions (AVCs) of £4.5m from the four largest retail bookmakers. However, the Levy Board is maintaining expenditure levels in 2015 ‘in the full knowledge’ that this is almost certain to incur a budget deficit in both the 2014/15 and 2015/16 Levy years, which run from April to March. The levy Board warned that ‘this is very likely to necessitate a significant reduction in expenditure in calendar year 2016’. Levy Board chairman Paul Lee commented: “The Board’s ability to maintain in 2015 our contribution to prize money and other areas is a reflection of operating prudently and having rebuilt reserves since 2011. “The Board had always anticipated running a small budget deficit in Levy year 2014/15. However, reports from the Bookmakers’ Committee of British horseracing’s trading performance, and resultant anticipated Levy yield, in the first two quarters of the 2014/15 Levy year have been worse than originally budgeted. The second quarter, covering July to September 2014, was particularly disappointing. “The Board is mindful of the disruption that would be caused by making changes now to its expenditure in calendar year 2015 and also we have the ability to incur deficits for a period of time. However, this cannot be done on an ongoing basis.” He added: “The Board is expecting to receive reports on the third quarter of 2014/15 at its meeting in late January 2015. From that point, the Board can begin to formulate a view as to the extent of an expenditure reduction that might be contemplated for 2016.”

T ACTION IMAGES / JULIAN HERBERT LIVEPIC

While the extra £4.5m provided by the industry’s big players is to mainly be used as prize money - it has been focussed to improve competitiveness in horseracing. The AVC Fund seems to be tackling some key industry issues.

The Remote Gambling Association (RGA) has continued to lobby for a lower tax rate following the implementation of point of consumption tax. Chief executive Clive Hawkswood said: “Any rate above 10 per cent GPT is not sustainable in what is a very mature market where consumers already know what level of value and choice to expect. However, it would be unrealistic to expect HM Treasury to review the rates until the new regime has had a chance to bed in properly.”

planning initiatives to tackle the issue of smallfield races, and why it was agreed from the outset between Racing and Betting that this was the correct use for the AVC Fund. We are thankful to the four firms for their commitment in this regard. “Racing and Betting are symbiotic industries, and at the heart of this agreement was the philosophy that we are better off aligning our efforts to make the racing product more compelling and competitive, year-round. We hope that this targeted investment ensures the contribution to this scheme by the four bookmakers generates returns to the Racing and Betting industry which outweigh the level of investment.” £4.2m will be used to extended the provision of prize money. Eligible Class 2 races in Britain will pay to 8th place and Class 3 to 6 races will pay to 6th

place. This applies for both Jumps and Flat. Horsemen representatives believe that the introduction of this enhanced prize money scheme - which, even for a horse finishing in 6th place, will assist with covering the cost of sending a runner to the racecourse should have a positive impact on field sizes. For some time it has been an area of concern for the industry that Sunday racing is not performing as well as would be hoped in terms of both quality and quantity of runners. To this end initiatives have been introduced such as Sunday prize money thresholds (implemented by HBLB in 2014) and the Sunday Bonus Scheme (trialled by BHA in 2013). The Sunday Bonus Scheme performed well in 2013 with runners up by an average of 30 per cent against corresponding 2012 races. As such it was

decided that the AVC Fund could be used to reintroduce and enhance this scheme, there having been no available pot of money in 2014 to extend the trial. To this end a number of Sunday Bonus Races will be introduced, taking the form of a series of enhanced prize money Sunday races, culminating in a Final towards the end of both the Flat and Jumps seasons. The added benefit of this scheme is that Sundays will also have a feature race to act as a focal point for the day’s racing. Once finalised, each Series will be designed to create interest in Sundays and where possible the Series will be aimed at generating additional runs per horse. £300,000 of the Fund will be dedicated to enhancing Sunday Racing in this manner, with an additional £500,000 being provided by the HBLB’s Racing and Betting Incentive Fund.

ANALYSIS The bookmakers have been wise to try and help allocate how their extra funding is used given that £4.5m could have easily been lost amongst the rest of the work of the Levy Board. The AVC Fund will be subject to a set of KPIs, both quantitative and qualitative, which will monitor performance of the initiatives throughout the year. There is scope to alter the manner in which the funds are used based on the performance of the initiatives. A statement on behalf of the four contributing bookmakers said: “The betting industry welcomes these new initiatives which are designed to improve the attractiveness of racing for the benefit of both parties.”

Greyhound consultation must not be rushed GREYHOUNDS

he government has revealed that it has already started work on its five year review of the Welfare of Racing Greyhounds Regulations 2010, which sets down the minimum conditions required for all greyhound tracks in England. DEFRA minister George Eustice said that although the review is due in April 2015, work on it has already begun, with the aim to go out to key stakeholders early in the new year, to collect the evidence that we need to assess the effectiveness of the

20 BettingBusinessInteractive • JANUARY 2015

GEORGE EUSTICE

regulations. He added: “Once we have independently collected and considered that evidence, DEFRA will go out to a wider public consultation, which will most likely commence after the election, given that we will quickly be at the end of March and into a purdah period. “Given the strength of views on these issues, it is important that we do not have a quick consultation that gets lost in the run-up to the general election. This is an impor-

tant issue, and we do not need to rush it. Provided we have started the engagement with stakeholders before the general election, we should allow plenty of time for people to respond to a public consultation after it.” The review will consider how effective the regulations have been, including how self-regulation is working, how injury statistics are collated and the traceability of greyhounds after they have left the sport.

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BB124-p22-24-Report_09/10 02/01/2015 11:16 Page 1

Half of machine players stop

Report

‘One player’s problematic play may differ widely from another’s’ David Excell of Featurespace answers some questions about the two reports he worked on regarding the analysis loyalty card data for gaming machines and the relationship on how problem gambling activity can be identified from certain behavioural markers. an you provide some examples of the behaviour that you have identified as being markers for problem gambling? The markers are subtle and complex to identify. A few of them were expected, such as frequency of play, variability in staking behaviour and levels of play engagement. From the research we found that there was no one specific marker that indicated problem gambling behaviour. One player’s problematic play may differ widely from another’s, and therefore it is combinations of markers and their values that need to be considered together. The overall result showed that it is easier to identify a problem gambler across multiple sessions of play; however, it is also possible to identify problem gamblers on FOBT machines without a unique identifier, although the predictions are less reliable.

ness, and the research was able to provide a 66 per cent improvement in the accuracy of detecting problem gamblers. The results of this model show we could correctly identify twice as many problem gamblers. Given this improvement, we have provided the industry with a method of measurement which identifies more problem gamblers and therefore helps more people. However, it’s worth noting that this isn’t a direct comparison, as we’re looking at averages over all sessions rather than limits on single sessions. In addition, we’ve been commissioned by the Responsible Gambling Trust to do a complete evaluation of the ABB code in collaboration with NatCen, to be published early next year.

Why did you use PGSI over DSM IV measures? The PGSI screen is an industry-accepted form of measurement which has previously been used in Britain for prevalence studies, and all stakeholders agreed to use this criteria as the most appropriate for the study being conducted. In addition, the PGSI offers some advantages - the screen has recognised thresholds of at risk whereas the DSM does not. The PGSI screen covers a greater range of harms (i.e., health problems as a result of gambling), whereas DSM mainly focuses on things that are intrinsic to the individual. Why should potential interventions with people who don’t have a gambling problem be a cause for concern? We have only just discovered that it is possible to identify many problem gamblers playing FOBT machines, with a 66 per cent improvement

over current methods, but this is definitely new territory in the field of social responsibility. Consequently, messages sent to an individual, no matter what their problem gambling score, must be carefully formulated. To date there have been no studies which examine the impact of inappropriate warnings on healthy players. From a social responsibility point of view, it seems preferable to send an unnecessary communication to a player at low or no risk of gambling harm. The majority of players will not receive messages they don’t need, and a machine learning approach to the problem will ensure that the models improve over time. Your report suggests that people lose around twice as much money when they mix their B2 gaming with their B3 gaming, with just B2 gaming alone. But isn’t it fair to say

22 BettingBusinessInteractive • JANUARY 2015

that this is because they play for twice as long when they mix up the gaming as they are entertained longer? Or is there something else underlying the data? There is something else underlying the data. The session lengths for mixed play (B2 and B3 gaming machines) are actually 3 to 4 times longer than B2 and B3 by themselves (12m:16s for B2 and B3, 3m:18s for B2, and 3m:57s for B3). For B3 content, the max stake is lower (£2), but the game cycle is shorter (2.5sec min). Therefore it doesn’t appear that players are entertained for longer, but rather that they are more engaged gamblers. Do your results question the efficacy of the ABB code of conduct on machine limits? Can any tweaks be done to it to make it more relevant? Our analysis used the ABB code of conduct as the baseline for measuring effective-

You were quite outspoken about £2 stake limits being of little use in isolation to tackle problem gambling. What has led you to this conclusion? The research shows that there is not one single marker of harm which, when addressed in isolation, will identify more problem gamblers. Rather, a combination of behavioural factors must be considered when developing accurate identification. This has been confirmed by all members of the research consortium. We know from the survey that these players are highly engaged in multiple forms of gambling and that addiction is prevalent at all stake sizes. If the maximum stake level is reduced, a highly engaged player who bets at £2 or more may move to another form of gambling to get the same level of excitement - which simply means shifting the channel of potential gambling harm, not addressing it responsibly. To identify problem gamblers on gaming machines, stake size is used as an input but only in combination with other markers to generate more accurate results to help more people.

‘It would be inadvisable to rush policies’ The Machines Research Oversight Panel, chaired by Alex Blaszczynski, has provided a level-headed round-up of the findings uncovered by the recent research. The RGT has taken undertaken a systematic programme of research that has attempted to determine if harmful patterns of play can be identified from industry data. It ought to be emphasised that the timeframe in which these studies were implemented was relatively short. As a consequence, given time and opportunities, more findings will emerge as further analyses of existing data is undertaken. The Reports are instrumental in providing evidence that there are patterns of play that can be used to identify problem gambling status. The next step is to determine the nature, severity and chronicity of harms that are associated with problem gambling. Identifying harms that have a serious health and social cost burden will result in more targeted campaigns directed toward high risk and vulnerable sub-populations. The accuracy of predictive models can be improved given that there is still a considerable amount of analyses that can be undertaken in refining combinations of variables, time permitting. These data are based on an unrepresentative group of players, that is, players electing to use loyalty cards during play. Approximately 10 per cent of bets are registered plays. The findings indicate loyalty card-holders are more involved players and have high rates of problem gambling and at-risk gamblers. It remains unknown whether unregistered players exhibit typical profiles. Accordingly, policy makers need to be cautious in implementing responsible gambling interventions on the basis of non-representative populations. Rather than providing clear findings that can definitively inform policies, the Reports attest to the complexities and difficulties in using existing data derived from non-representative samples. The combination of behavioural markers of harm, although able to predict problem gamblers to some extent, currently offers limited sensitivity and specificity to allow effective policies that target only problem gamblers. This means that decisions currently need to be made by regulators in policies that tradeoff capturing problem gamblers and minimising interference with recreational players. However, there is considerable opportunity to improve accuracy in future by examining more variables, improving methodological and statistical approaches and developing our understanding of what we are actually trying to predict (i.e., gambling-related harm). It is suggested that at this stage, it would be inadvisable to rush policies on the basis of these foundational studies. Rather, consideration needs to be given to the development of a strategic blueprint of evaluative studies that are applied in a logical and coherent manner over the next five to ten years. This is not to suggest a ‘do nothing’ approach in the meantime. The implication is that more will be achieved by a strategic approach compared to fragmented, disjointed and potentially costly policies that fail to achieve their objective.”

“

BB124-p22-24-Report_09/10 02/01/2015 11:17 Page 2

The study into player behaviour found that half of the people who previously played on gaming machines no longer do so. The figure is even higher for people who had previously only gambled on machines in a bookmaker, with 63 per cent no longer playing machines. Conversely, 4 per cent of people who had not previously played on gaming machines had played one in a betting shop, with 11 per cent now having played gaming machines in other venues.

Loyalty Card holders not representative of whole gambling public

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One of the lead researchers on the Responsible Gambling Trust’s investigations into problem gambling on machines has warned against applying its findings from loyalty cards to the whole machine gaming public. eather Wardle, research director at NatCen Social Research and one of the lead researchers on the Responsible Gambling Trust’s recent batch of research into gaming machine and problem gambling, has warned against assuming the recent analysis of loyalty card players can be applied across every player. The analysis of 7bn interactions with gaming machines came up with a surprising problem gambling rate of 23 per cent for loyalty card holders, but Wardle has said that the figure cannot be comfortably extrapolated to every machine player as the study had absolutely no visibility of the playing habits of nonloyalty card holders. She even warned against applying the problem gambling figure to the loyalty card population as the study purposely skewed its sample to capture the most frequent gamblers in order to ensure the research had a decent number of subjects suffering from problem gambling. Given previous prevalence studies had based a lot of conclusions on a very small number of actual problem gamblers surveyed, the research team wanted to ensure that they had the data from a larger sample to analyse, and as such targeted heavy machines users within the loyalty card population. Wardle even said that the skewing process might mean that the data isn’t even indicative of the whole loyalty card demographic. Indeed, the Prevalence Study has previously highlighted young men as a key risk group. However, with the richer data in this study, young men did not have problem gambling rates as high as other age groups but did have higher rates of being an at-risk gambler. Overall, 23 per cent of participants were categorised as problem gamblers, according to the PGSI scale. A further 24 per cent were moderate risk gamblers, 24 per cent were low risk gamblers and 29 per

cent were non-problem gamblers. It was also an eye-opener that part of Wardle’s research team found that problem gambling behaviour was evident at all stake sizes, with the proportion of problem gamblers barely increasing the higher the staking levels. The study found that although there is some variation in the proportion of problem gamblers at each staking level, the fact is that problem gamblers have a range of staking behaviour with a fifth of players with the lowest average stake per bet (53p) classified as problem gamblers Even at the highest level of stakes (representing an average stake of £13.40 per bet or more), nearly one in five people (18 per cent) were nonproblem gamblers. This means that not only would a £2 stake limit not prevent people developing gambling problems, it would also penalise higher staking players without any semblance of a problem. As the study put it: “Because of this overlap it is unlikely that stake size alone would sufficiently discriminate between problem and non-problem gamblers.” The report continued: “The main questions are whether policy makers, industry and regulators are willing to accept these trade-offs, and what level of error they are willing to accept for different policy approaches. The answers to these questions are likely to vary based on the type of intervention. If the intervention is non-intrusive, a pop-up message for example, then it may be acceptable that this is something experienced by both non-problem and problem gamblers alike. “If it is more intrusive, such as a mandatory break in play, then attempting to exclude as many non-problem gamblers as possible may be preferred whilst recognising that this means one is likely to miss some people with problems. Underpinning all of this should

be consideration of the impact of any intervention; ensuring that it does not have unintended consequences and that it is reaching the anticipated group of people.” Part of the unintended consequences could well be that if any screening process discovers too many false positives - ie an intervention with someone who wasn’t experience gambling problems then in the social environment of a betting shop it might lead a problem gambler to take any intervention they have experienced rather less seriously. The analysis also highlighted two new and interesting associations between problem gambling and machine problems: the relationship with number of current loyalty cards held and who the gambler lives with. The study explained: “Looking first to at-risk gambling and machine problems among men, living alone was associated with both behaviours. Living alone was also associated with female machine problems, with those who lived alone being more likely to experience problems. “The more loyalty cards held, the more likely male participants were to be at-risk gamblers, and both men and women to be problem gamblers. As problem gambling rates among machine players identified in nationally representative surveys like the Prevalence Study are lower than among Loyalty Card participants, it suggests that those who have a loyalty card may be more likely to be problem gamblers. Furthermore, among those who do have loyalty cards, there is some evidence of a relationship between a higher number of cards and some gambling problems.” One of the conclusions of the research was that bookmakers should be extra careful of the incentives and promotions that it offers through their loyalty cards, given that those that hold them seem more susceptible to developing a gambling problem.

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BettingBusinessInteractive • JANUARY 2015 23

BB124-p22-24-Report_09/10 02/01/2015 11:16 Page 3

Report

‘The first piece of a thousand piece puzzle’ One of the more publicised pieces of research from the Responsible Gambling Trust was ‘The Role of Stake Size in Loss of Control in Within-Session Gambling’, which was mainly conducted by the University of Lincoln. The headline finding from the research was that higher stakes impair decision making, which understandably actually did make headlines. Here, one of the lead researchers on the project, Dr Adrian Parke, answers some questions on its findings.

s well as arousal, your study measured reflection impulsivity and response inhibition. Why were these values chosen and how strong are they as indicators of problem gambling? Low reflection impulsivity and response inhibition are key components of self-regulation, in terms of the individual responding adaptively to various situations and stimuli. In other words, they are two of the processes that are important in helping the individual achieve their set-goals, while maximising benefit and minimising potential negative consequences. Essentially, having low reflection impulsivity and unimpaired response inhibition will be important when an individual is in the ‘action’ of gambling and they need to make sensible decisions about how much time and money they can afford to spend gambling within that session. Research clearly shows that individuals suffering with addictive disorders often have deficient response inhibition and high reflection impulsivity in comparison to ‘normal’ populations. Furthermore, the same limitations are clearly shown in problem gambling populations. The key question therefore becomes “is it a pre-existing vulnerability before the gambling pattern is established, or can the gambling product and gambling environment affect one’s vulnerability?”

does this suggest that game frequency is not as important an issue as previously thought? I wouldn’t draw that conclusion from the data. Essentially, the impact of event frequency on self-control was not observed in this experiment, however, the vast majority of literature identifies event frequency as fundamental in selfcontrol and gambling behaviour. In fact, I would hypothesise that event frequency is at least as important as stake, and if pushed, possibly argue that it may even more important that stake size.

Are there any other real world environments where these two measures may have acted in a similar way? Low reflection impulsivity and response inhibition will be inherent in any goaldirected behaviour, as the individual must constantly be making evaluations about what is the most appropriate goal to move towards as contexts and circumstances change. Reflection impulsivity is about the individual taking an appropriate amount of time to deliberate on the information they have or can obtain, and subsequently making accurate judgements. Response inhibition is about being able to respond appropriately to triggers that stimulate a specific behavioural response, rather than acting reflexively. We are designed to repeatedly engage in behaviour that is rewarding, such as sexual

24 BettingBusinessInteractive • JANUARY 2015

THE EXPERIMENTAL GAMBLING INTERFACE

behaviour, eating and even the pleasure and excitement of taking risks. Of course, depending on the circumstance, sometimes these behaviours may have negative consequences as well as being rewarding. Response inhibition, in this context, is about withholding the urge to engage in a behaviour that may be rewarding in the shortterm but ultimately is outweighed by the probable negative consequences. Reflection impulsivity, working alongside response inhibition, is the mental act of weighing up all the information available to enable the individual to respond in a way that has most utility, rather than being heavily swayed by short-term rash thinking. If you are looking for an example where both will be at the forefront of behavioural outcomes, I’d lead towards something like motorway driving, where the situation and context are changing rapidly (traffic, conditions, speed cameras) and such information is important to weight and respond to, and furthermore there will be periods where it is adaptive to almost switch-off (long straight, empty roads) but also be ready to change this approach if a hazard appears unexpectedly (e.g. an animal in the road).

£500 regardless of stake. This is certainly a limitation of the experiment, and as you’ve rightly identified, it is very difficult to dissect stake and potential win without substantially altering the nature of the task. Ultimately, the research team thought it was more important to control the ‘volatility’ of the gambling task, in terms of chances of winning, rather than controlling for potential prize size. Essentially, we aimed to make the task as authentic as possible, and as we needed to control the probability of winning (an even money chance), therefore we thought it was important to match prizes with the stake size risked.

Your research was conducted using just 32 participants. Is that the standard for a study such as this? The reason that survey studies, or independent measures experiments, require vast samples is because there is a need to try to minimise the effect of individual differences i.e. demographics, personality, experience etc. Rather than comparing different sets of individuals in different conditions, this experiment compares the same individuals in different conditions and therefore controlling for the effect of individual differences on the outcome variable. So in Rather than the stake repeated measures experibeing the trigger for any ments it is the norm to have behaviour changes, could relatively small samples, and it actually be the size of the 32 participants is a perfectly prize causing the changes adequate sample for a study in the decision making with this level of experimenprocess? Obviously the tal control. two go hand in hand to some degree, but not nec- The study measures essarily on FOBTs where impaired decision making the top prize is capped at at £20 stakes, but also

around £2 stakes? What was the difference around staking levels? The general trend observed was that the quality of decisions after the higher staking level (£20 per bet) was poorer than after the lower staking level (£2 per bet). However, the quality of decisions being made after the £2 per bet condition was poorer than after the control condition where participants risked no money. In short, even after gambling at lower stakes the quality of decision making was impaired. In terms of the size and nature of the impairment, it is important to be clear that participants didn’t suddenly make absurd decisions after gambling at the higher stake level. Ultimately, in their predictions and judgements, participants were more likely to be correct than incorrect at both low stake and higher stake levels. However, there was a statistically significant deterioration in probability of their predictions being correct as stake size increased. Statistically speaking, the size of effect could conservatively be observed as low. However, it is also important to acknowledge that the gambling task used is rather ‘sterile’ i.e. participants were playing with ‘house money’ and they could only bet once every 5-6 minutes. It is possible that the size of effect may increase (or indeed decrease) when using real gambling products in real gambling environments. The study suggested that players made decisions in roughly the same time no matter what the condition -

Your research is being highlighted by some as proof for the need to restrict stakes to £2. Is it safe to extrapolate the findings in this way in your view? To conclude that this experiment provides evidence that reducing maximum stake size to £2, as a way of reducing problem gambling, is overtly naïve and massively premature. This study is the first piece of a thousand piece puzzle in trying to understand the role that specific structural characteristics play in creating gambling-related harm. Fundamentally, the next step is to see how the effect of stake size interacts with other features of gambling products such as event frequency and prize structure, as well as the interaction with the physical and social gambling environment. The real value of this research is that it clearly demonstrates that structural characteristics, such as stake size, can affect processes integral to self-control, over a short space of time. We are a long way from having definitive statements about the relationship between stake size and loss of control within a gambling session but we have made the first, and in our opinion the most important step. The exciting proposition for the team at the University of Lincoln is that if processes integral to controlled gambling, such as reflection impulsivity, can be negatively affected by game characteristics, equally there must also be scope to enhance selfcontrol in gambling by manipulating game features. Research is already underway exploring the potential to improve processes such as response inhibition and reflection impulsivity by manipulating existing and adding in new structural characteristics in various gambling formats.

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`BettingBusinessInteractive • JANUARY 2015

Betting Business Interactive Edition

2 B

January 2015

Essential guide to ... Improving trend

Appy talk

Conference call

ICE is on course to eclipse the 2014 success story when an independently audited 23,506 attendees from a record 156 nations travelled to London to see the 515 exhibitors who chose it as their international shop window.

A new dedicated ICE app is available for free on Android and iOS devices. It allows visitors to access the full event schedule, browse the latest product launches, receive information on all of the speakers taking part in the ICE Conferences.

Alongside the show, the 2015 ICE Conferences programme comprises a voyage through eight high-level, targeted events which cover all of gaming’s vertical markets. These include the International Casino Conference, World Regulatory Briefing and Betmarkets.

EXHIBITOR

VIEWPOINT

Bright Group travels 17,000 km to exhibit at ICE

Even bigger, even better

ICE’s furthest travelled exhibitor, The Bright Group, believes that attending ICE sends out the right signals to the European industry. irst time ICE exhibitor, The Bright Group, based in Silverwater, New South Wales, Australia is preparing to embark on its own international ‘voyage of discovery’ as it transports its people, products and presentation some 17,000 km (10,563mi) across 11 time zones to exhibit at February’s ICE show taking place at the ExCeL Centre, London. Officially the furthest travelled exhibitor on gaming’s busiest show floor, The Bright Group is taking a stand presence at ICE in order to further its ambitious international expansion strategy. Raif Oymen, The Bright Group’s director, responsible for global engineering, explained: “Having previously been to ICE as visitors, we recognise and understand fully the show’s importance to the global gaming industry. As we continue our international expansion outside of our already established Australasian and North American regions, we believe attending ICE sends out the right signals that we are ready and that we are extremely serious about the markets that exist in Europe. “Preparations for the show have long been underway and our R&D and production departments are working round the clock to get all of our products ready. We look forward to showing the global industry gathered in London our range of exclusively developed products and technologies, which includes representative pieces demonstrating our design capability, attraction features for machine toppers and top boxes, as well as two new centrepiece products; the Magnum topper range and the Sound Chair.” He added: “Attending ICE is important to The Bright Group, not just for display-

Betradar is to roll out its Live Channel products in Nigeria with bookmaker 1960Bet

44 Innovative pool betting operator Colossus Bets has doubled the prize on its new 15 match accumulator product

46 Italian operators using the GameAccount Network now have access to some of NetEnt’s best slot games

48 Income Access has teamed up with US-facing online horseracing wagering brand DerbyJackpot

t gets to the point where you can run out of superlatives for something that has gone from strength to strength in recent years. ICE is now so big and so successful that you wonder where it can go next, but the organisers have strived to keep the show pushing forward. Certainly the move to ExCeL has done wonders for the betting industry’s representation at ICE. While still at Earl’s Court, the betting suppliers were fragmented across the show floor, with not one real focal area for bookmakers to investigate the latest equipment. It wouldn’t be so wrong to say that the betting sector felt like an interloper at a gaming exhibition. The switch to East London, though, allowed ICE to rip up the rule book and start again and as a result the betting element of the exhibition has been given a total shot in the arm and is feeling more like a welcome part of the community again. The return of the betting-focused Betmarkets conference after many years in the wilderness also reflects on the size and importance of bookmaking across the gambling industry. Given that 2015 will see the first full year of the point of consumption taxation, as well as further safeguards added to B2 gaming machines, the industry could be forgiven for being cautious with any expenditure. But there is also the counter argument that now is the time to invest and make that breakthrough into the next layer of competition. Whether you are from Camp A and are looking for cost cutting technology or Camp B on the hunt for the next killer product, rest assured it will be available in ExCeL next month.

Andrew McCarron

RAIF OYMEN: ‘WE BELIEVE ATTENDING ICE SENDS OUT THE RIGHT SIGNALS’

ing our latest developments but also to find out where the market is moving. It will be a very hectic week, but we are looking forward to seeing what London has to offer.” ICE marketing director Jo Mayer commented: “ICE has been described as the world’s favourite gaming exhibition and the experience of The Bright Group endorses and reflects that billing. Our campaign theme for 2015 is Discover and there’s no doubt that ICE with its community of international exhibitors drawn from in excess of 50 nations provides visitors with a unique opportunity to discover and explore the latest gaming innovations from every corner of the world in a way which no other exhibition can. This is a great testament both to the power of exhibitions and to the status enjoyed by the ICE brand on the international stage.”

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BettingBusinessInteractive • JANUARY 2015

Ice Totally Gaming BETMARKETS Bookmakers will have another reason to attend ICE Totally Gaming next month thanks to the welcome return of Betmarkets.

Return of Betmarkets sees more emphasis on sports betting ne of the interesting draws across ICE week is the Betmarkets event, a popular conference on the first two days of the show focused exclusively on sportsbetting, which has returned to complement the growing sportsbetting section of the ICE showfloor. The event will present top quality educational content for sportsbetting executives driving their companies’ strategies in innovating and expanding the in-play proposition, mobile and multi-screen sportsbetting, social gaming, sports integrity and emphasis on New Jersey and Asia. Key speakers include director of football governance and regulation at The FA, Darren Bailey, Betclic Everest Group sportsbook product manager Olivier Kaplan, Sun International’s general manager sports betting Daniel Kustelski, Betfred head of sportsbook Harrison Bani, Nederlandse Staatsloterij’s sports betting manager Steen Madsen, Betfair sportsbook product director Alex

Deacon, ESSA’s Mike O’Kane and Betfred sportsbook development manager Joe Ellis. Also running as part of the Betmarkets conference are two sportsbetting tours of the ICE Totally Gaming Expo floor in partnership with Sports Betting Community. At 10.30 on the Tuesday and Wednesday of the exhibition, SBC will be leading a tour around some of the key suppliers to the betting industry. ICE organisers have announced that many of gaming’s most influential trade associations and representative bodies have confirmed their attendance at next month’s exhibition. Kate Chambers, portfolio director responsible for ICE, said: “Whilst the primary function of an international event such as ICE is based around the commercial exchange of new products and services, the exchange of knowledge, information and ideas have become increasingly important. It has been

well documented that most, if not all of gaming’s transformational products have been launched at ICE. “But as well as being the commercial centre for world gaming, ICE is increasingly the industry’s political hub and the landmark event at which policy is debated and decided by many of the industry’s most influential trade bodies. We are committed to work in partnership with our trade association partners to ensure that ICE remains at the centre of all things gaming and in the process delivers on behalf of all of its community of stakeholders.” The 26 strong list of organisations heading for London in February comprises; AGEM, American Gaming Association, Association of British Bookmakers, Bingo Association, eCogra, European Association for the Study of Gambling, European Casino Association, European Gaming and Betting Association, European Sports Security Association,

MIKE O’KANE OF ESSA WILL BE SPEAKING AT BETMARKETS

Gambling Commission, Gambling Portal Web Masters Association, Gambling Therapy, GamCare, Gaming Regulators European Forum, Gaming Standards Association, Gibraltar Betting & Gaming Association, International Association of Gaming Advisors (IAGA), Interactive Gaming Council, International Association of Gaming Regulators, International Masters of Gaming Law, International Social Games Association, National Casino Forum, National Gaming Academy, Remote Gambling Association, The Responsible Gambling Trust, and the World Lottery Association.

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BettingBusinessInteractive • JANUARY 2015

Essential Guide to ... ICE Totally Gaming EVENTS

GW GAMES

GamCrowd helping Clarion be Pitch perfect GamCrowd.com and Clarion Events have agreed a content partnership designed to take visitors on a journey of learning and discovery at ICE Totally Gaming 2015. series of events have been programmed during this year’s ICE, which have been curated to help maximise the experience. Programmed by GamCrowd, these events have been particularly designed to benefit entrepreneurs and investors from the start-up community, as well as first time visitors, but aims to deliver value to all stakeholders at the world’s largest business-to-business gaming event. Over the three days of ICE 2015, Pitch ICE will provide the platform for entrepreneurs to pitch live and direct to attendees. An initial selection process before the show will lead to a shortlist of entrants that will have 15 minutes to sell their business or concept on the show floor. All slots will be filmed and shown online where a public vote over the two weeks following ICE 2015 will determine the best pre- and post-funding propositions. The winner from each of the two categories will gain free access to GamCrowd’s incubator skills and expertise. Led by GamCrowd CEO Chris North, chairman Ian Hogg, and financial director Andrew Bowen, the gambling industry’s first crowdfunding and crowdsourcing platform will also host a full day of workshops and seminars on Tuesday February 3, which will cover every aspect of the start-up process, including funding, licensing, regulation and corporate finance. In addition, GamCrowd are to hold networking and one-to-one mentorship sessions for start-ups and venture capitalists from their network throughout the show. North will also conduct 45-minute guided tours of the exhibition hall daily, passing on the benefit of 15 years’ industry experience. He will give an insider’s guide to the expo as well as the companies present, of-

GAMCROWD CHAIR IAN HOGG

fering tips for getting the most from the show, with the party calling in at a regulatory body, as well as platform and payment providers. The partnership builds on GamCrowd and Clarion’s joint venture at EiG 2014 where they ran the Start-up Zone and a series of interactive talks and events that culminated in the LaunchPad competition. “ICE challenges conventional thinking and wisdom, while offering the chance to discover new opportunities for businesses and individuals, which also neatly sums up what GamCrowd aims to achieve,” said North. “The betting and gaming industry start-up community is a burgeoning one and we hope that our partnership with Clarion Events - and particularly the creation of Pitch ICE - will help to nurture innovation and entrepreneurship to even higher levels.” Next year’s event is the 20th anniversary of ICE becoming a standalone event. According to Clarion Events’ portfolio director, Kate Chambers, who is responsible for ICE as well as EiG (Berlin, October) and GiGse (San Francisco, April), the content partnership with GamCrowd encapsulates what ICE is about. She explained: “Throughout its existence ICE has consistently worked in partnership with the gaming industry and, as a consequence, has become widely recognised as being the cockpit of gaming innovation. “Most, if not all, the transformational products and services in gaming over the last two decades have been launched at ICE, which is what makes this partnership with GamCrowd so fitting and so exciting. We look forward to recognising those stand out credentials through the content programme and in the process providing a vision of our industry’s future.”

ANDREW HENSON

Launching the new brand GW Games February’s ICE Totally Gaming event at ExCel in London will see the formal unveiling of a new crossplatform content development brand, GW Games. W Games is an expanding studio which is already active on a number of online, mobile and landbased platforms and with a number of high profile operators. Commercial director Andrew Henson is excited by the launch of a new identity, effectively marking the birth of a new business: “A strong brand unquestionably influences awareness and, as such, can positively impact upon product choice and loyalty. Equally important is the part that the brand value can play in attracting, motivating and retaining talent.” GW Games arrives on the scene with a significant amount of brand equity already in the bank, having been created to stand alongside sister developer Games Warehouse, skill games specialist and all-time market leader in the SWP (skill with prize) multigame terminal sector. These UK based business units also share owners with US based AMI Entertainment Network, global providers of music solutions. “This heritage assures both business partners and players of our commitment to the quality and integrity of the GW Games content,” confirmed Henson, adding that “the move into online and mobile gaming, alongside land-based content, is a logical step to take, as the strength of a proven brand lays the founda-

tions for the ongoing introduction of further new, exciting and different options.” GW Games has laid ‘extremely firm’ foundations as it moves forwards with its commitment to total corporate regeneration. Over the past two years, solid relationships have been cemented with major platforms, with games now live on both OpenBet and Microgaming Quickfire and imminent further releases due on GTS/VF, Leander, Odobo and GECO. Henson and his growing and diverse team of cross-platform content developers now have half a dozen games across an igaming operator base that includes Betfair, Bet365, Ladbrokes, Paddy Power, Sky Vegas and William Hill. In addition, land based (terminal) customers include Ladbrokes, William Hill, Paddy Power, Betfred, Gala Bingo, Playnation and Inspired Gaming. By the end of Q1 2015, the live GW Games portfolio will total 10 ‘exciting and highly distinctive games’ with a range of themes across the spectrum from traditional to comical, radical and even musical. “The vision for this business is to be brave and to explore boundaries,” explained Henson. “GW Games will demonstrate many qualities over the coming months and years, but dull, conventional and predictable will not be amongst them.”

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BettingBusinessInteractive • JANUARY 2015

ISLE OF MAN

Building on a successful year Peter Greenhill, Head of e-gaming at the Isle of Man’s Department of Economic Development, reflects on 2014 and makes some predictions for the new year. 014 was a very strong year for the e-gaming sector on the Isle of Man. Our three key performance measures of jobs, government revenue from duty/license fees and license holders all grew in excess of 10 per cent. E-gaming now represents over 13.5 per cent of our GDP, and we’re predicting this figure will rise to 18 per cent by 2020. So how do we build on this success next year? Strategies should never be cast in stone; they always need to evolve as market conditions change. 2014 saw a seismic change in those conditions with the introduction of the new UK legislation and the POC tax. The Isle of Man recognises that the effects of this change will be seen in an increasing number of M&As both with operators and supporting software and service companies. The threshold for a successful new entrant to the market has also been raised along with the requirements of investors in start- up businesses. Our strategy is therefore evolving to take

these changes into account and to recognise that, in future, successful operators will need to be licenced in a number of jurisdictions not just one. We have a healthy mix of world leading brands, high growth emerging future stars and start-ups supported by our excellent local corporate service providers and our strategy involves supporting each of these areas and helping them to grow. We also expect continued diversification of the sector on the Island. We have always attracted and supported all aspects of the industry on the Island. We are the home to world leading gaming operators, platform and software providers, game developers, data centres and hosting companies, corporate service providers as well as lawyers, accountants and consultants who specialise in the industry. This diversification has developed over time following on from our being at the forefront in creating the legislation for egaming. This clustering effect is heathy for both the industry and for our Island’s econo-

my - 30 years of continuous growth is almost unheard of elsewhere in the world. A further testimony to this diversification is the first mover advantage that we have created in the digital currency market, one that will be embraced fully by the gaming industry as it will substantially lower the cost of payment processing and remove charge backs. We expect that 2015 will see the introduction of digital currencies into mainstream gaming operators. Another focus for the Isle of Man next year will be with Asian facing operators, with whom we already have an excellent reputation given our attractive tax structure, our world class power supply and telecoms infrastructure, and open minded government. Now that the UK POC and legislation has been finally settled we are seeing an increased interest from the region. We also see South America and parts of Africa ready to open up for e-gaming and these are areas where our expertise will be of great interest in the near future. Non licensed businesses will also be of in-

terest to us in 2015. This has always been part of our strategy and will continue to be so. Those businesses that have already established themselves on the Island and have grown dramatically are testament to the benefits that we have to offer. This creates substantial numbers of new jobs on the Isle of Man and supports the growth in our economy. In summary, 2015 will be an exciting year for the Isle of Man and the industry as a whole, and we remain optimistic about the times ahead. The pace of change in e-gaming never seems to wane, and so no doubt there will be new issues that see the light of day to fill the panel sessions and late night bar discussions at our conferences. One constant that really can be bet on is the Isle of Man’s firm and fair stance on regulation and gold standard in measures to protect players and their funds. We are extremely well placed and prepared to navigate the changing industry landscape that lies ahead.

Stand N5-320

ISLE OF MAN. WHERE YOU CAN FIND A WINNING BASE FOR YOUR E-GAMING BUSINESS The Isle of Man is home to many of the world’s leading gaming brands and software developers, which is no surprise when you consider that the Island offers: Ŕ Government support and commitment to the gaming sector Ŕ 100% player protection Ŕ No hidden costs Ŕ Fast licensing process Ŕ Low duty based on Gross Retained Proﬁt Ŕ Low-cost operating base Ŕ World-class resilient IT infrastructure Ŕ $PNQFUJUJWF 5BY 1BDLBHF Ŕ Skilled staff Ray Davies, e-Gaming Development Manager Tel: + 44 (0)1624 682365 Email: ray.davies@gov.im

www.whereyoucan.im/egaming

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BettingBusinessInteractive • JANUARY 2015

Essential Guide to ... ICE Totally Gaming BETCONSTRUCT

OPTIMA IS

666Bet signs up with BetConstruct

Optima signs 30 clients to new platform in six months

BetConstruct has signed major new deal for its sports betting platform whilst also boosting its poker games portfolio. etConstruct has announced that Alderney Licenced 666Bet has joined its comprehensive sports betting platform. 666Bet will now offer its customers BetConstruct’s full sports betting portfolio, including pre-match betting and BetConstruct’s market leading live betting suite. The live betting suite will allow 666Bet to offer its customers over 19,000 live events per month spanning over 50 sports, and this selection will be available on desktop and mobile platforms. As part of the agreement, 666Bet will offer UK and Irish racing, with a full suite of horse racing over the coming months. BetConstruct CEO Suren Khachatryan said: “This is a major coup for us, at the end of what has been a spectacular year. Earlier this year 666Bet arrived on the UK gambling scene with an unprecedented explosion and has already proven itself to be disruptive and capable of challenging the established players.” BetConstruct’s UK-based commercial director George Voyatzis commented that the collaboration came to fruition quickly, demonstrating the ‘ease with which the two companies work together and their matching desire to shake up the UK betting landscape with agility, daring and innovative products, that provide the marketplace with much-needed fresh content’.

to offer ‘best in class’ digital streaming. SIS Stream is a multi-platform solution which gives bookmakers a different way of attracting and retaining punters. Its ‘open streaming’ service allows punters to view content free of charge before placing bets. The SIS Stream platform can deliver an unlimited amount of compelling content, so that customers can bet wherever and however they want. Operators are charged a flat fee per customer who watches a stream during a pre-defined session, usually lasting 24 hours. Current content on offer includes thoroughbred racing from Dubai and Latin America. Further new content is about to be unveiled and SIS product and account managers will be on hand at ICE to demonstrate the latest in SIS innovation and discuss future developments for 2015, including oncourse initiatives which have been trialled at tracks across the UK.

ome of the biggest retail and online names in the business have opted to use OptimaMGS, powered by MarginMaker, with details of the new improved platform to be revealed at ICE at ExCeL in February. OptimaMGS is a multichannel platform which includes an integration framework allowing multiple casino brands and a superclass sports book powered by MarginMaker2 to be promoted worldwide. It also integrates the worldwide horse and greyhounds racing ITSP V6 Tote network for retail and online, permitting 24x7 betting with live streaming from all the race courses which offer off-track betting through the network. Unibet, BetPack, BTC, JenningsBet and StanJames are amongst the clients benefitting from the platform. Optima’s Certified Partner Network is also being unveiled at the show. The network includes a myriad of third party payment, e-gaming and sports betting product integrations out of the box such as Worldpay, Paypoint, Paypal, PaysafeCard, Skrill, Neteller, Retail2Web, Betradar, Betgenius, Inspired, Realistic Games, Net Entertainment, Microgaming, Amaya, Ezugi and Evolution Games. Optima CEO Jacob Curciel commented: “We have invested heavily to expand our software and services catalog for the e-gaming industry by acquiring MarginMaker2 platform rights and business from GTech. MM2 has now been improved in different areas such as security, reporting and integration. “A key change in the MM2 retail platform for UK bookmakers is the introduction of the shop serverless architecture which simplifies and reduces costs and overheads to the operation.” The iSHOP betting system for the retail channel - which will be demonstrated live on the Optima stand at ICE - is being rolled out to hundreds of shops in the UK in the next few months. Optima will run a continuous presentation schedule each day in the ICE show where new products and the technology roadmap from Optima will be showcased. New products from the Optima MGS Certified Partner Network will also be announced. Curciel added: “Optima’s mission is to provide, maintain and support the most stable, scalable, fast, secure, efficient and modern modular e-gaming software suite in the market for new and existing commercial public and private bookmakers worldwide.”

Stand S1-140

Stand N1-480

S BetConstruct has also made Open Face Chinese Poker (OFC) immediately available to all its clients. The game consists of two to four players, each of whom receive five cards, face down, which they place on a board consisting of three levels - back (5), middle (5) and front (3). Cards are subsequently dealt, one at a time, until each player has 13 cards which they have arranged on their individual board. To be considered a legal and viable, each player’s three hands must be of sequential strength, in decreasing order, from back to front. Failure to achieve this causes fouls and receives penalties. Rather than betting prior to each round, the game is played out in full, following which points and bonuses (which have an agreed pre-assigned financial value) are scored for winning hands and particular card combinations. Levon Gyulzadyan, product manager for OFC at BetConstruct, commented: “The game is only a few years old, yet is has already attracted millions of players as it offers a type of tactical play that is not present in other versions of poker. Since opponents can see each other’s cards, there is no bluffing, but the depth of the strategic nuances make OFC captivating and unique.”

Stand S1-350

SIS

Supplying the digital market SIS’s appearance at ICE this year will showcase a real focus in the development of its offer, as a leading provider of content and services to the betting industry. IS has had a regular presence at the global gaming expo, but this time the focus will be on the rollout of a suite of new products aimed at the digital market. Renowned as a major supplier of content to the retail industry, SIS has significantly broadened its offering in the last 12 months. Exciting premium content has been added to its comprehensive, high-quality horse racing, greyhound racing and virtual products. This season SIS became the Liga de Futbol Profesional’s first official, exclusive partner for collection and distribution of live data from more than 2,500 Spanish league and cup matches per season, and has launched dynamic, innovative data products from one of the top leagues in the world. Using proprietary gathering tools, SIS is providing a range of high-quality, pre-match, in-running and post-match data feeds, and products tailored to bookmakers’ needs, with further developments to come. This super-fast data includes Alert and Danger messages direct to the trading room by feed,

interface client or console. SIS commercial director Paul Witten commented: “We’ve always been known as a trusted supplier of official data, providing relevant products tailored to betting, and the La Liga portfolio is our latest high quality offering.” As one of the world’s leading providers of broadcast solutions, SIS is now offering a new slant on streaming for bookmakers’ digital offering. It has invested in a dedicated infrastructure, as well as developing key partnerships with the leading suppliers in order

info@kironinteractive.com www.kironinteractive.com

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BettingBusinessInteractive • JANUARY 2015

Essential Guide to ... ICE Totally Gaming GAMEACCOUNT NETWORK

XB NET

‘Faster, Higher, Stronger’ is the Olympian theme adopted by GameAccount Network to promote its presence at ICE 2015.

XB Net caps strong year with Ladbrokes agreement

DANIEL LINDSAY

Buoyant GameAccount Network brings Simulated Gaming to ICE 2B gaming software and online gaming content provider GameAccount will be using ICE to showcase the huge strategic and commercial benefits of its unique Simulated Gaming offering to an international audience of key opinion-formers. Explaining how Simulated Gaming can be deployed by landbased casinos, GAN commercial director Daniel Lindsay said: “We developed Simulated Gaming as an off-Facebook social gaming product to enable land-based casino operators to offer a fully immersive gaming proposition for their customers when not on site. “The trust and integrity of the land-based brands are brought online and the same games - tables and slots - are available. In essence, it’s a mirror image of the land-based environment where virtual credits purchased allow continuous play and, where regulations allow, cash back incentives, using land-based loyalty cards and Casino Management Systems.” Highlighting the commercial benefits he said: “Casinos benefit in a number of ways. Not only does Simulated Gaming serve to generate significant incremental revenue courtesy of a new channel of entertainment, but it also reactivates lapsed players and drives renewed casino visitation where spend is up on gaming as well as on other verticals within the property.” He added: “In general, social gaming monetises players - registration to deposit - at around 2 per cent. The very best social casinos manage somewhere around 5 per cent, whilst our Simulated Gaming product is currently monetising above 15 per cent of registered players through to deposit and play. The feedback we are re-

ceiving from land-based casino operators is that it presents the perfect opportunity to engage with their current, lapsed and future patrons as well as allowing them to prepare for real money online gaming in a pre-regulated environment. For players, it’s a positive experience which allows them to earn rewards - where regulations allow - whilst playing their favourite slot games and using brand names they trust.” Following its successful showing at October’s G2E in Las Vegas, GameAccount Network has confirmed that five US operators will be live with its Simulated Gaming offering by the first half of 2015 along with a group of operators in the Australian gaming market. Enabling bricks and mortar casinos in the United States to move online is a core element of the company’s mission statement and to this end GAN has partnered with Betfair plc to provide its internet Gaming System following the introduction of regulated realmoney online gaming in New Jersey in November 2013. The company has also built an established business in Europe, licensing gaming content across the regulated .com market. In the regulated Italian market, GameAccount Network provides content delivery to over 65 per cent of the existing operators with a further three new operators joining the network in 2015. In the regulated Spanish market, GameAccount provides platform services and content and will be providing a range of proven performing games ahead of new regulations coming into force in 2015 allowing slot games.

Stand N2-310

MRG SYSTEMS

Betting, gambling and casino screen solutions Ian Hunter of MRG Systems details how the firm has been helping betting shops run their businesses for over two decades. RG Systems has more than 2,600 information screen systems installed in betting shops throughout the UK and Europe. That amounts to over 40,000 screens being managed every day. Paddy Power, Coral Racing, the New Zealand Racing Board and two bureau services in Ireland use our solutions. Our track record for providing information screen systems in the UK is exceptional and this year we have set ourselves the challenge to attract new business from other territories around the world. ICE 2015 provides one of the best opportunities for us to meet new customers seeking innovative new screen solutions. The UK betting industry is possibly the most mature betting market in the world. MRG is an important contributor to the drive for higher performance, customer focused products designed to enhance the customer experience. Twenty years ago we commenced writing the Bookmakers Infor-

which are processed and sent automatically to the local servers. The display and switching of video sources from various feeds is also managed from the centre by the studio. Using mation HTML templates the system is easy to supDisplay System (BIDS) with help from port and maintain by staff. It is highly flexiPaddy Power who remain customers to this ble; making it an easy fit for different betday. The most recent version BIDS5 exting and gambling models used elsewhere ploits the latest agile development techaround the world. niques to achieve optimum outcome for Also on the stand this year will be the our clients. DailyForm touchscreen form guide, ManBIDS5 is capable of automating most of agers Monitor, All in One screen and the the routine functions undertaken by staff in AVS500 amplifier. Each one of these is dethe studio. A full day’s events will run with signed to enhance the customer experilittle or no intervention from the operator. ence, reduce operating costs and help to inThat leaves the studio free to generate mul- crease profitability. Our aim is to provide tiple eye-catching offers and promotions as products which take the pressure off the day’s events develop. BIDS5 can transcounter staff, reduce studio operating form your business. Always relevant, these costs and boost revenues by managing tarreal-time interventions will increase sales geted advertising more efficiently. and enhance your brand. Stand S1-226 BIDS5 accepts multiple data sources

B Net, a member of The Stronach Group, which owns and operates premier racetracks, breeding and training facilities and technology companies in North America, wrapped up its first full year of delivering North American racing to UK punters by finalising a deal with Ladbrokes. Along with partner TurfTV, XB Net made an immediate splash in the market by providing North American racing to William Hill and Paddy Power shops for the duration of 2014, and will deliver more than 1,000 fixtures into the UK in 2015. In their venture, XB Net secures track content rights, live streaming video and past performance data for TurfTV to produce and distribute a hosted program of North American racing, complete with expert analysis, interviews and selections, to UK betting shops. Tracks offered by XB Net and TurfTV include many of the top tracks in the United States and Canada, including Gulfstream Park, Saratoga, Belmont Park, Keeneland, Monmouth Park, Woodbine, Laurel Park and Pimlico Race Track, the home of the legendary Preakness Stakes. “It is the goal of The Stronach Group and XB Net to deliver high-quality, exciting US racing to the rest of the world,” said René Schneider, vice president of business development for XB Net. “We’re excited to continue working with TurfTV, Ladbrokes, William Hill and Paddy Power to ensure millions of punters and racing fans in the UK can watch, wager and enjoy the best North American tracks and events.” In addition to making strong progress in the UK, XB Net recently launched a venture with Spanish gaming giant, Codere, to showcase North American racing in its bet shops in Mexico and Spain. Bettors can wager on top tracks using terminals manufactured and serviced by the Austrian firm, Best Gaming Technology (BGT). Additionally, XB Net continues to supply US racing to more than 2,000 off-track betting locations operated by the Turkish Jockey Club. XB Net recently introduced a state of the art white label, pari-mutuel racebook that can be quickly integrated into the platform of established online gaming companies. These racebooks provide hassle-free live wagering on horse and greyhound races with a projectable revenue model. Furthermore, XB Net continues to offer pari-mutuel wagering to nearly a dozen partners via its proprietary EasyGate interface, which serves as an international wagering hub and provides wagering pathways, live video and past performance data

www.betconstruct.com

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BettingBusinessInteractive • JANUARY 2015

Essential Guide to ... ICE Totally Gaming BIT8 ANGELO DALLI

Maximise player lifetime value in online gaming operations Angelo Dalli, co-founder and CEO at Bit8, explains how the firm is using Artificial Intelligence to make a difference in extending lifetime values. he increased competition and regulation of the online gaming industry requires operators to focus on cost efficiency while ensuring that player lifetime value is maximised as much as possible, while offering an exciting player experience within a responsible gaming framework. At Bit8, we have developed disruptive Artificial Intelligence technology that allows operators to offer sophisticated marketing campaigns based on tailored bonuses and promotions. Engagement and retention tools such as advanced bonuses, targeted promotions and tournaments, experience points, achievements and customer journeys are all needed in combination to achieve the best rates of return for the operator. Rather than taking a one size fits all approach, the player database is intelligently segmented into specific targeted segments that change dynamically as the player behaviour changes. The AI system learns more about each player’s behaviour, giving better results

that fit what the player wants to do, while simultaneously taking into consideration other player behaviour to offer new items that the player may not have found on their own unprompted. When new players sign up and are acquired, the initial offers and recommendations and the loyalty points aid operators to convert new players into loyal players. The campaign and bonus monitoring tools enable operators to minimise churn and loss and the inbuilt business intelligence reports identify those players that need to be actioned either by sending a timely communication by email, SMS, or some other channel or by creating a customised tailored promotion that keeps the players on the site. The use of AI technology and sophisticated rules allow operators to provide VIP levels of player experience at a lower cost, since manual labour can be minimised and decreased to a minimum. The AI technology enables real-

E-GAMING

he firm E-gaming has specialised in the field of server-based gaming (SBG) since 2005, and is today active in more than 10 countries worldwide. The Czech Republic-based company operates - either directly or through its local partners - more than 20,000 terminals, and these numbers are increasing constantly due to the fact that e-gaming is looking for new territories and jurisdictions. “Many countries are currently looking to have increased control and better monitoring of their land-based gaming operations,” said the company’s Pavel Michalcio. “In such territories we are actively looking for longterm and secure partnerships.” In Europe, e-gaming recently passed the certification process in Macedonia and Spain, with initial results proving successful. The company is also ready to enter new markets in the region, once the gaming legislation in those territories has been updated and approved. “In addition to these new markets, we always rank among our priorities the domestic markets of the Czech Republic and Slovakia,

Stand N6-220

MICROGAMING

Planning for a more spectacular 2015

E-gaming targets new markets As gaming jurisdictions around the world are realising the benefits of server-based gaming, e-gaming is looking ahead to a busy 2015.

time decisions to be made that a human customer support and account management team cannot ever manage to do in the same timeframe, especially when dealing with large number of players. Promotions and tournaments can be set-up flexibly across multiple game suppliers and verticals, using a shared common wallet that can be optionally setup with sub-wallets for each vertical if needed. The Bit8 system supports casino slots and scratch-cards together with traditional casino games, fantasy games and casual games, live casino, sportsbook and live sports betting, and poker. Bit8 gives operators the right innovative advanced tools that allow them to free up internal resources to focus on marketing, player experience and using our technology in an almost infinite number of combinations to achieve that disruptive edge that will be hard to match with existing traditional solutions.

Neill Whyte, head of product channels at Microgaming, explains what his firm has in store this year. t Microgaming, we’re busy gearing up for the largest gaming show of the year. 2014 was a pretty roarsome event, but we’re confident that 2015 will be just as spectacular, if not even a little bit better! Located at the entrance of N5, Microgaming is at the heart of the ExCeL. The two-tiered stand will be home to a plethora of the latest devices, showcasing our hottest gaming content across online, mobile and land-based platforms. This includes 2014’s blockbuster games, Avalon II, Terminator 2, Jurassic Park and Game of Thrones, as well as previews of what lies ahead in 2015. In addition, our most recent product developments for Casino, Multiplayer, Poker, Bingo and Live Dealer will be on show, and available for demo by our product gurus. Adjacent to our stand is the long-standing tradition of the Microgaming Bar, the social networking hub of the event. But this year we’re upping the heat with a Quickfireinspired Bar. Our Quickfire platform has grown exponentially over the last few years and it’s time to bring this to the fore. This year alone we’ve signed over 45 operators, taking our total nearer to 200, and we’ve evolved our product to become all-encompassing - Casino, Poker, Bingo, Multiplayer and Live Dealer. With over 23,000 attendees at the show, ICE is the perfect opportunity for us to set the tone for the year ahead. And what would ICE be with-

where we achieve excellent results despite of the strong competition and a difficult period in terms of pending legislative changes,” Michalcio said. “We started to expand into South America a couple of years ago, and now we have a good quantity of machines installed in some famous casinos in Mexico. Mexican players really like our games, and as such will send more units in the near future as other companies are now interested in working with us.” Elsewhere in South America, e-gaming has machines installed in Panama, and the company is currently in discussions with two as-yet-unnamed countries in this key region. “As a young, innovative and very flexible company in the field of SBG, we are constantly looking for new challenges,” said Michalcio. “We closed some deals with some European companies for delivery of game content for online platforms, and are looking to expand in this field, too. “During the ICE show in London in February, we will present our latest games and innovations, new online casino platform and also our new cabinet. We are looking forward to welcoming visitors from around the world to our stand.”

Stand N1-450

out some exciting, new announcements? Last year we delivered a bundle of exciting messages, and even brought a seven metre long dinosaur to the show! So the question everyone is asking is ‘what has Microgaming got in store this year’? Well we can’t give too much away, but rest assured, we always look to excite attendees, and our announcements will include a new brand licensing agreement, an extensive roadmap of content, and a flurry of exciting deals! Finally, moving on from last year, where we amazed attendees with our vision of the future, we’ll once again be showing a glimpse of what we think lies ahead for our industry. On the Microgaming stand, we’ll delve into the fascinating world of wearable technology and show how virtual reality could become reality in the near future. Want to know more? Step into our world at the Microgaming Stand and Quickfire Bar.

Stand N5–220

Our systems manage over 40,000 screens seven days a week

3-5 Feb 2015 See us on stand

S1-226

Thrilling displays and a first class performance A central studio screen management system which organises multiple data sources, marketing images and live video for display on thousands of screens in real-time. MRG deliver digital display systems for the top brand bookmakers. Long-standing customers include Paddy Power, Coral, New Zealand Tote and Irish bureau services.

Contact MRG today for the latest information screen systems. Call 01453 820 840 or email sales@mrgsystems.co.uk

MRG Systems Limited The Mill, Upper Mills Estate, Bristol Road Stonehouse, GL10 2BJ

T +44 (0)1453 820840 F +44 (0)1453 820860

E sales@mrgsystems.co.uk W www.mrgsystems.co.uk

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Essential Guide to ... ICE Totally Gaming TAB AUSTRIA

YGGDRASIL GAMING

TAB Austria is set to launch the widest, most diverse and innovative range of new gaming, betting and amusement products at this year’s ICE.

Gamification the big thing for Yggdrasil

AB Austria is a manufacturer of coin-operated gaming, betting and entertainment machines. Today, it carries one of the largest and most prolific product ranges in the whole industry. The demands of changing to new technology combined with the demands of increasingly competitive approved hardware are just some of the issues that operators are facing globally. To overcome these challenges TAB designs and develops individual and highspecification solutions to complete today’s gaming and betting offer. TAB Austria’s game portfolio for the Golden Island Gaming Platform has again expanded and it will launch a host of new games, including more features and high performing content. Operators will also see the latest version of the platform that is designed to meet all the demands of street and casino gaming. TAB provides five different and reliably engineered cabinets and an ever growing selection of high definition games with state-of-the-art animations. Each terminal from TAB Austria is a piece of ‘genuine Austrian quality’. The Golden Island platform is available as VLT, AWP and as a progressive Jackpot version

A customisable experience and includes several technologies that meet the requirement of the current market. Hardware and software are perfectly intertwined and thus work seamlessly and intelligently together. The innovative and intuitive design of the user interface provides the very best overview to have everything in view. TAB says that the new Go4Platinum betting cabinet is extremely well designed and equipped with the latest and best components. The terminals will be finished in customers’ corporate colours and will enhance the end user’s betting experience. The new Go4Platinum cabinet is characterised by its ultra-slim body and the clear and futuristic lines. It has been designed to deliver convenience and player comfort in betting shops. It includes carefully considered screen positioning, an easy-to-reach button panel and plenty

space for leg clearance. It is supplemented by eye-catching LED-light strips, which run alongside the cabinet and are adjustable according to customer’s individual preferences. The firm pays particular attention to our customer’s needs and requirements to make the player experience more exciting and let the terminal work faster when players get busy. The firm said its aim is to create unique machines that maximise clients’ profits and identity. TAB Austria offers a wide range of turnkey terminal solutions that provide a unique player experience and refer to almost all the top operators in the industry. The y can be customised via colour, equipment, screen size – and hardware devices like card reader, hoppers, recycler or NFC, whatever is desired by operators.

Stand S2-330

KIRON INTERACTIVE

Come and see the improved BetMan CE 2015 is an opportunity for Kiron Interactive to showcase a host of new content and services, after a rapid expansion to its portfolio in 2014. The company is one of the main providers of virtual sports games to the land-based and online gaming industries. Its flexible and advanced gaming platforms are helping to power the rapid growth of virtual sports around the globe, as players bet online, on the move and in gaming venues. Among the latest developments are an upgraded bet management system, BetMan, and its new Vision Platform, which provides a cost-effective screen solution for casinos and betting shops. The improved BetMan product will be on show for land-based operators, alongside a brand new version suitable for those concerned with online. Land-based companies, such as betting shops and casinos, can also benefit from demonstrations of new hardware. These include compact devices designed to replace bulkier PCs, and Kiron’s proprietary

Vision Screen solution, which enhances the in-venue experience for players. The RaceKings product, powered by multi-station betting terminals, has brought the excitement of horse racing to the casino floor and is helping operators attract a new generation of customers. A second version of this product will be available at ICE in 2015, this time with a newly-designed and improved, more userfriendly betting interface. The expanding content portfolio is now one of the most comprehensive available.

As well as an upgraded suite of horseracing, dog and football products, it includes harness racing and a new motor-racing game. Kiron will also be showcasing its new digitised horse and dog tracks, following the success of a number of implementations with existing clients. These allow players to watch the action unfold in familiar settings in order to make the games richer and more immersive. This supports Kiron’s philosophy of always tailoring content for local audiences, wherever they are in the world. Following the success of its virtual sports games the company is developing a portfolio of complementary numbers games. The first of these, Keno, will be demonstrated at its stand at ICE. It will be joined in 2015 by other popular numbers games. These will integrate seamlessly into BetMan, allowing an operator to tailor its daily schedule to its choice of virtual sports and numbers games.

Stand S1-132

Fredrik Elmqvist, CEO and founder of Yggdrasil Gaming, explains what the firm’s plans are for 2015. t has been something of a rollercoaster ride over these past 12 months. We went into ICE 2014 feeling confident that it was going to be a big year ahead for Yggdrasil and that turned out to be very much the case. With just two operators signed up last February we are now live with 14 operators, six of which went live in Q4 alone: Portomaso, L&L Casino, ENET, JV Bet, ComeOn and Offside Gaming. We also have a number of deals in the pipeline which we hope to announce pre-ICE. In addition to this we only had two slot games at ICE 2014 and we can now offer all our partners nine top class slots. We have had tremendous industry feedback on our games and we will be growing our content portfolio throughout the year. Lotto7, our daily draw progressive jackpot, is scheduled to launch in Q2 after a few delays. However, we have all the certifications in place now and we are really excited about the opportunities to offer a unique daily lottery draw to all of our partners. There are a number of things I’m looking forward to this year, but gamification is at the top of the pile. It is going to play a crucial role in our strategy moving forward and online businesses simply cannot ignore it in today’s environment. The challenge for operators is to make their websites and mobile apps sticky so that the customers are engaged and don’t feel the need to go somewhere else. User engagement is now the key battleground and by offering something a little different, be it a unique player promotion or customer loyalty scheme, you can take customers on a journey they never want to leave. Yggdrasil’s Infinite API for gamification allows operators to boost their customer engagement and we look forward to helping them achieve their goals in 2015. Mobile, as ever, is going to be a key focus for the majority of the industry this year and we will be announcing some exciting developments in this sphere ahead of ICE. This will coincide with the launch of a particularly innovative new game, so make sure you come and see us at the ExCeL.

Stand N2-140

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CALLCREDIT

Understanding the customer Rob Meakin, market development manager at Callcredit Information Group, discusses the importance of in-depth CRM. aming operators as standard procedure already have a number of automated checks in place to quickly and efficiently check a customer’s name, address and date of birth, as well as being able to confirm that the payment method being used by the customer is owned by that individual - all of which can help to prevent identity fraud, payment fraud, unauthorised withdrawals, account takeover and money laundering. However, as gaming becomes an increasingly accepted social activity, there is now a requirement for operators to have a more detailed view of their customers after a number of high profile cases reported in the media have found individuals to be gambling well outside of their means, utilising funds from sources such as stolen goods. As such over the coming months the industry will see a number of new regula-

tions coming into play which will challenge operators to not only take into consideration the affordability of a customer but also to obtain a more in-depth view of things such as income risk, investments, property details, length of residency and employment in order to try and prevent potential fraud and money-laundering, not only at the inception stage but throughout the whole customer lifecycle. Currently, the majority of these additional checks involve a series of manual investigations, which can be a lengthy process. Subsequently, we’re seeing more operators seeking further insight and data which they can stream-line into their existing processes. By using databases such as our customer segmentation tool CAMEO and consumer database Define it is possible to better understand their customer’s lifestyle, their demographics, their behaviours online and

offline, as well as confirming any significant life events; all of which can be used alongside modelling techniques to identify risk behaviour patterns which may be indicative of financial crime. By using additional data in this way it’s possible to identify if an individual’s gaming behaviour suddenly changes or falls outside of the expected behaviours, which could flag with the operator that there could be a problem and further investigation can be undertaken. Using data in this way has been highly successful in other sectors with perhaps the most relevant example being the alternative finance sector, which similarly to the gaming industry, has seen an increase in regulations and the need for deeper customer insight to make more informed decisions to diminish risk. The growing pressures of the regulatory environment mean that operators will need

to be more proactive in identifying and managing potential risk going forwards and should therefore make use of all the data that is available to them. By incorporating customer insight datasets alongside existing fraud and risk strategies operators will have a more granular view of their customers, with increased automation and efficiency, which is of critical importance to the gaming industry.

Stand N7-152

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BettingBusinessInteractive • JANUARY 2015

Essential Guide to ... ICE Totally Gaming NET ENTERTAINMENT

IGT INTERACTIVE

‘Plenty of fantastic developments’

Blueprint for the year ahead

Simon Hammon, chief product officer at Net Entertainment, discusses what 2015 has in store for the company. Do you think the growth of mobile will continue at the same rate in 2015? Mobile has continued to grow at a superb rate throughout the year and we expect the same trend in 2015. It’s the fastest growing channel in the online casino market and that presents great potential for product development.

What is Net Ent’s strategy for gaming content this year? There are already plenty of fantastic developments in full swing for 2015. Our focus will always be on creating top quality content with exciting and unique features without jeopardising value. We are the market leaders in our field and have risen to the summit by producing best-in-breed content for desktop and mobile. That mission will remain exactly the same as we expand our diverse portfolio of graphical styles, mechanics, brands and much more. Where do tablets fit in with the gaming experience?

Tablets play a significant role in online casino. The costs have come down considerably since they first launched and more and more people own them today. The introduction of the ‘phablet’ is one to watch as these have been launched to combine the functions of a smartphone and tablet. Inevitably, further developments and customisations will be required for tablets to keep them as enjoyable to play as other formats. Has Net Ent’s licensing strategy worked with games based on classic films? A lot of research and time goes into our licensing agreements. The hard work has paid off as the results have been excellent in terms of game performance and customer perception. We have a range of games that include Aliens, Scarface and South Park that feature differing graphical intricacies and complexities which showcase NetEnt’s mission to push the creative boundaries. Branded games provide a different dimension to our portfolio and they comple-

ment our in-house content perfectly. We are proud to offer branded content from some of the world’s most recognisable names. What are you most looking forward to at ICE? ICE is the perfect opportunity to showcase what NetEnt can offer its customers and also to reflect on the achievements of the past year. The movers and shakers of the industry all descend on London for the three-day event and it’s a chance to meet with the market and catch-up with customers to discuss the latest trends. The conference allows companies to unveil their latest games and technology on the biggest stage. Over the years we have made some huge announcements at ICE and this year will be no different, so watch this space!

Stand N5-330

BETRADAR

Built for betting Betradar is offering bookmakers the chance to speed up bet cycles, enable quick stake recycling and increase their revenues. ith its Virtual Sports Portfolio, Betradar is stirring up the sports betting and gaming industry worldwide. Betradar’s Virtual Sports deliver fast-paced real money betting all day long across retail, mobile and online. With millions of bets placed every week, Virtual Sports are proven to appeal to a wide variety of bettors. The launch of Virtual Football 2011 gave the starting signal with a powerful combination of artificial intelligence, 3D animations and most importantly, an extensive soccer league betting offering. This most realistic virtual soccer product is currently incorporated by over 50 bookmakers worldwide, this has prepared the ground for the next sport, Virtual Tennis. Launched in 2014, the solution can be seen as the most realistic and revenue-driving tennis product on the market. In ad-

dition, Betradar will release the latest addition to its virtual sports portfolio in 2015, Virtual Basketball. Together with two racing solutions, Virtual Horses and Virtual Dogs, Betradar provides a portfolio of five entertaining and revenue-driving solutions. The success of Virtual Sports is primarily based on the company’s focus to provide dedicated solutions built for betting, that are attractive to multiple target groups. A fast-paced gameplay with new betting cycles every few minutes and all main sports betting markets available with realistic odds provides punters a permanent betting offer. Multiple events running simultaneously in league and tournament mode with events based on realmatch statistics, lets customers even place multiple bets intuitively, the revenue-driver for betting businesses. In ad-

dition, the company’s new Sports Betting Games are a unique offering, featuring real betting markets based on Betradar’s live betting data, and are opening up turnover potentials with always-on fast bet cycles. All users, from casino gamblers to traditional sports bettors, should immediately feel comfortable with the intuitive game play of Betradar’s Gaming Solutions. Virtual Sports and Sports Betting Games have formed an integral part of Betradar’s business, complementary to its betting, content and streaming solutions. This portfolio allows Betradar to exceed current market demands and position itself as the unique ‘one-stop-shop’ provider for betting and gaming operators worldwide.

Stand S1-150

A big year for IGT is bolstered by the big licensed names available on its stand at ICE. t ICE 2015, IGT Interactive will outline its commitment to quality with its blueprint for the year ahead that will add value and help its partners grow their online and mobile revenues. With the worldwide igaming marketplace constantly changing, IGT is perfectly placed to adapt to updating regulation. Find out about IGT Interactive’s ongoing plans to maximise opportunities in Newly Regulated Markets. The division will demonstrate its development of innovative Marketing Yield Features across its games, a number of meta-game, revenue-enhancing features, such as competitions and free spins, which are to be deployed on its remote game server (rgs) to drive marketing and player engagement. Show-goers will also be able to learn about two exciting, brand new MegaJackpots Games - which are set to create a storm thanks to a mammoth launch campaign – as well as IGT’s strengthening of its extensive Licensed Portfolio. New titles to be unveiled include Wheel of Fortune, Sherlock Holmes and Family Guy, as they combine with the likes of Ghostbusters, Transformers, Battleships and Star Trek. Joining a roster of superior branded content is IGT’s unbeatable selection of player-favourite games. Prowling Panther, a title that has achieved resounding landbased success globally, will take centre stage ahead of its imminent Triple Channel Simultaneous Release in the UK across land, mobile and online. The game’s gripping graphics, impressive audio package, and high-volatility gameplay have proven to be a winning formula with players.

Stand N2-240

More More than than just just aa leading publisher

Consulting Consulting Corporate Identity Creative Marketing Crisis Management Design Events Exhibition Marketing

GB Media Marketing Services provides a complete communications service. With a management team boasting decades of international industry experience, GB Media is the only company of its type in the gambling space, employing teams of designers, marketers, journalists and business development executives.

For more information please call John Sullivan +44 (0) 1204 396 397 or email jsullivan@gbmedia.eu

Market Research Public Relations Publishing Social Media Video gbmedia.eu

Twenty Thousand Leagues Under the Sea

ICE is where it happens

A key date in our events calendar

DISCOVER AT www.icetotallygaming.com ICETOTALLYGAMING.COM EXCEL, LONDON 3RD - 5TH FEB 2015

@TOTALLYGAMINGHQ #ICEGAMING

We would never miss the ICE show

The most important international show of the year

AFFILIATE PROGRAMMES, ASSOCIATIONS, AWPS, BETTING EXCHANGES, BINGO EQUIPMENT, CASH HANDLING, CASINO MANAGEMENT, CCTV, CHIPS, COMPONENTS, CONSULTANTS, CRM, EPOS, FOBTS, FRAUD, LOTTERY, MEDIA, MOBILE, ONLINE, PAYMENT, POKER, RECRUITMENT, REGULATORS, ROULETTE, SECURITY, SLOTS, SOCIAL GAMING, SOCIAL RESPONSIBILITY, SPARES, SPORTS BETTING, TABLE GAMES, VIDEO, WIRELESS

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BettingBusinessInteractive • JANUARY 2015

Retail Dedicated dogs man at SIS SIS has underlined its commitment to promoting greyhound racing with the appointment of Gary Baiden as greyhound executive. Baiden, former manager of Oxford Greyhounds, has spent more than 26 years in the industry and SIS plans to tap into his vast experience to liaise more closely with tracks around the country and develop SIS’s greyhound products and services. NIGERIA

1960Bet takes up the Live Channel portfolio Impressive Nigerian bookmaker 1960Bet has invested in Betradar’s Live Channel products. etradar, supplier of sports and betting related data, is to roll out its Live Channel products in Nigeria. Bookmaker 1960Bet will roll out Live Channel Retail across 5,000 stores by using a local satellite distribution provider and will implement the Live Channel Online into its sports betting website 1960bet.ng. In addition, 1960Bet has also signed up for Betradar’s Managed Trading Services, a new business concept that allows sports betting operators to externalise their labour intensive risk and liability management to Betradar’s proven industry expertise. Combined with the live streaming services Live Channel Retail and Live Channel Online, 1960Bet is strengthening its live betting offering significantly in retail outlets and on their website, to provide their clients with a new level of entertainment and bet stimulation. 1960Bet CEO Dotun Ajegbile stated: “We at 1960Bet have had a strong and trusting relationship with Betradar since

we launched in 2012, and the quality of their services have gone a long way in driving the growth of 1960Bet. We now look forward to taking advantage of the growing interest in live betting by rolling out the Betradar Live Channel in 5,000 of our 1960Bet shops and agents. Together with this, we have entrusted our day to day riskmanagement to the Betradar Managed Trading Service, and we are confident this is a great step forward in securing our future growth in the market.” Sportradar’s sales director for the African region Gregory Parsons added: “We are very pleased to see the Betradar Live Channel make its first entry into the Nigerian market with 1960Bet. We expect live betting to begin to gather significantly more traction in Africa in the very near future, particularly in Nigeria. 1960Bet will be looking to capitalise on this great opportunity by leveraging local satellite distribution technology to make rapid and significant in-roads into the market. Through the Betradar Managed Trading

Services, we will now offer even more of a comprehensive range of meaningful, and growth-driving, services to 1960Bet and together we are very excited about what the future holds.” Sportradar has also launched a new brand which sees all of the market-leading sports data services that Sportradar has previously provided to the media industry under the brand Scoreradar will now be aggregated under the new brand ‘Sportradar Media Services’. Launched in 2007, the Scoreradar suite of services and products has grown to the point where today, the brand is a key and recognised player in the sports media landscape. These services and products have included pre, live and post event data feed deliveries, as well as hosted content solutions such as live sports applications, statistics centres and live score products. By constantly evaluating all aspects of the business and garnering valuable client feedback, Sportradar was guided towards the conclusion that the name of the Scor-

eradar brand did not do justice to its full range of content. Speaking about the re-brand, Sportradar CEO Carsten Koerl said: “The Sportradar brand is a powerful one that stands for proven quality and reliability to over 600 clients worldwide. With all the recent developments that we had implemented in our media-facing services, it felt like the right time to bring all those services together under a new Sportradar brand, sharing in the whole organisation’s momentum and high regard. “But this is not a cosmetic change. The data feeds and applications we are providing across multiple channels such as web, mobile, TV and print are best in class and continue to grow in number and quality. ‘Sportradar Media Services’ reflect our ongoing investment and focus on the technologies and innovations that will drive our client-focused solutions and will propel us as we strive to enhance sports coverage in a progressive and cost effective manner.”

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BettingBusinessInteractive • JANUARY 2015

DATA

B2B Retail Listings

MACHINES

B2B content R et ai l

etConstruct has signed a deal with Latvian gaming equipment manufacturer DLV which will enable it to offer a sports book alongside its suite of gaming and slots products. DLV is gaming software and gaming machine cabinet manufacturer with third party clients in more than 30 countries. DLV also has its own land-based operations across Europe, Latin America and Asia. The result of this landmark deal means that customers of all of these proprietary and third party operations will now have access to BetConstruct’s comprehensive sports betting product, which offers 18,000 live events per month across 50+ sports. Suren Khachatryan, CEO of BetConstruct, said “Partnering with DLV and allowing customers to place sports bets on their cabinets, allows BetConstruct to start another exciting chapter in our global development. The two companies are looking forward to working together and extending their relationship even further as new opportunities arise.”

SUREN KHACHATRYAN

ACTION IMAGES / JULIAN HERBERT LIVEPIC

BetConstruct passes DLV test

Racing Post now licensed to sell on Pre-Race Data acecourse Data Company(RDC) has appointedRacing Postas an official distributor of British horseracing Pre-Race Data (PRD) up to the end of 2018. The partnership was announced soon after it was revealed that the six month stand-off between the publication and the sport’s new data handling company had come to an end after Racing Post reached an agreement with RDC to use official PRD in all of its print and digital products. The extended deal will see the publisher licensed to sell such data to other customers alongside its own editorial, tipping and analysis of British racing. The agreement with Racing Post means that nearly all those customers who received ‘official and reliable’ PRD via the previous licensor, Racing Enterprises Limited(REL), will continue to do so under RDC’s licensing. RDC directors Richard FitzGerald and Tony Kelly said: “We are delighted to come to an agreement with Racing Post. Racing Post’s contract provides customers with the peace of mind and assurance that the most crucial element of data that facilitates the placing of a bet is official, reliable and accurate. “It is essential for the sport that racecards are distributed from a licensed source and these deals protect British horseracing’s data and realise value from a significant

piece of data.” Racing Post chief executive Alan Byrne said: “We are pleased to have reached an agreement with RDC. We look forward to selling official British racing data along with our own unique content to a range of customers in the domestic and overseas markets who appreciate the value that Racing Post expertise can bring to their businesses.” RDC was assigned the PRD licence from Racing Enterprises Limited (REL), with effect from January 1, 2014 to 31 December 2018. Income received by REL will be wholly invested in British horseracing, via Great British Racing, and the staging of events such as the £4m Qipco British Champions Day. During this summer the Racing Post did not have official racing data via RDC because it balked at paying an additional £500,000 fee on top of its previous £150,000 deal. But the RDC was adamant that the paper had been paying below the odds, claiming that licensing is applied via a transparent rate-card, which has industry backing and is utilised across all customers. RDC says it has aligned its licensing principles with FRAND (Fair, Reasonable and non-discriminatory), which is widely used by standards-setting organisations and in licensing. There has been no indication of how much this new deal is worth.

Terminal trial in Spain ediatech Solutions, provider of independent real money gaming platform and provisions, has partnered with ASE (Basque Gaming Arcades Association) in the Basque Country Spain for a pilot program of its new Candy powered gaming terminals and platform. 20 next generation terminals, offering slots content provided by NYX Gaming Group, will initially be distributed throughout the ASE’s arcades during the trial with the view to continue to refine and grow the offering based on real time data from the players and operators. Mediatech’s founder and CEO Jessica Ordovas said: “We are privileged to have ASE as a partner on this pilot program. They have been progressive and supportive of the development of this system, which we hope will fundamentally change the way retail is delivered and supported for both operators and consumers from a product and economic point of view.”

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Lottery deal remier Lotteries Ireland (PLI) has officially become the new operator of the National Lottery in Ireland following payment of the final instalment of the li-

RACING New boss at NZ racing ew Zealand Ministry of Foreign Affairs & Trade CEO John Allen has been appointed chief executive of the New Zealand Racing Board. Allen will join the Racing Board as its chief executive in March, after end his five-and-a-half years heading the government department in January, MFAT said in a statement. He will take over from Stewart McRobie, who has acted in the role since July when Chris Bayliss stepped down. “It’s going to be fun,” said Allen in a Racing Board statement announcing his appointment. “The NZ Racing Board is a NZ$2bn business that plays a vital role in the New Zealand economy by supporting the racing and sport industries. It is also the owner and operator of the TAB which is an exciting commercial enterprise and an iconic New Zealand brand.”

making sense of the gaming industry

N cence fee and a successful transition process. The company, whose shareholders are Ontario Teachers’ Pension Plan (OTPP), An Post and An Post pension funds, will operate the Irish Lotto, a popular LBO bet in the UK, for the next 20 years having won a tender process with a bid of 405m euro. “I am delighted that following a great deal of detailed preparatory work by all involved, the operation of the National Lottery has successfully passed from An Post National Lottery Company to Premier Lotteries Ireland,” said Minister for Public Expenditure and Reform Brendan Howlin.

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BettingBusinessInteractive • JANUARY 2015

Sportsbook

“” I am thoroughly impressed with Favourit’s ambition, drive and genuine enthusiasm to change the user experience.

Ebbe Groes Chief executive EveryMatrix

Getting Social EveryMatrix has launched social sports betting platform Favourit, which has been integrated into the EveryMatrix platform. Favourit gives users a global community of betting experts, real time betting data and analytics, competitive real money betting odds as well as a free virtual balance to test out their strategies. The Favourit platform is available in multiple languages and is available on web, mobile (HTML5 & iOS) and tablet.

ACTION IMAGES / CARL RECINE LIVEPIC

POOL BETTING

One of the more innovative operators to enter the UK market in recent times has doubled the prize on its new 15 match accumulator product. ootball pool betting specialist Colossus Bets has doubled the minimum guaranteed prize on its HDA15 football jackpot to £2,000,000. The firm, which also offers the innovative fractional Cash-In, said that its growing B2B network has made it feasible to quickly up the top prize on its new bet. Founder and CEO Bernard Marantelli said: “With our B2B distribution and customer

base continuing to grow, as promised we will push the envelope and give our clients and partners the world’s biggest sports jackpots that when combined with our unique Fractional Cash-In feature, gives them the world’s biggest and most engaging sports jackpots. “We would love to see a Betdaq, Betfair or Boylesports client win £2,000,000 - and in 2015 we will continue to add sports and increase jackpots, until we pay out tens of millions every week.” The £2,000,000 HDA15 is a weekly 15-leg pool bet with a Home-Draw-Away format comprising a minimum £1m win fund and a minimum £1m bonus - both numbers net of deductions. Any winners of the win fund will now have a free pick on the correct score of one further football match the following week, to try and land the bonus. A full unit costs players just £2, but like all Colossus pools, the HDA15 can be played for as little as 20p (which buys a 0.1 unit and plays for a proportional £200,000).

Colossus Bets doubles HDA15 jackpot to £2m Since its introduction at the start of the football season, the HDA15 has already been won in October 2014 as a £1m prize, and in September 2014 the £1m HDA15 saw the biggest Colossus Bets Fractional Cash-In offer to date, a £320,000 offer for a player going into the last leg who had correctly forecast the first 14 results. Marantelli said that the move to £2m as a minimum prize rewards the public embracing this bet. Alongside the HDA15, the operator’s major bet is the headline grabbing £10m Colossus - a seven leg correct score accumulator, which is available across all of Colossus Bets’ B2B partner sites, including Betdaq, Betfair, and Boylesports. Founder and CEO Marantelli is a professional gambler with expertise in pool betting who decided jackpot pools were not run optimally. After failing to convince incumbent operators to improve their product offering to generate bigger pools, he set up Colossus

Bets to provide lottery-sized jackpot pools on a weekly basis. Last year he was also involved in one of three syndicates to share a world record £5.4m Scoop6 bonus, after sharing a £10m pool eight ways the previous week. Since launch Colossus Bets has processed 2.5m bets, attracted 42,000+ Twitter followers, services 25,000+ active players, has contracted 14 B2B partners contracted of which four are currently live. Alongside its five technology patents, Colossus Bets is also currently developing multi-million pounds games for several other sports, including NFL, NBA, horseracing, greyhounds, AFL and ARL. Through its unique technology, Colossus Bets allows players to Cash-In all or part of their multi-leg bets at virtually any stage of a game. This enables players to bank profits from their ticket whilst retaining part of it and playing for a corresponding share of the jackpot prize.

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BettingBusinessInteractive • JANUARY 2015

SPORTS RIGHTS 10 year tennis deal for Perform he Women’s Tennis Association (WTA) has signed a ground-breaking 10 year media agreement of more than US$525m with incumbent partner Perform. This extended partnership is the largest live media rights and production venture in the history of the WTA and in women’s sports. Perform joint-CEO Simon Denyer said: “We are thrilled to expand on our highly successful partnership with the WTA. We are strong believers in the exceptional sport entertainment value of the WTA and are committed to driving the value for all WTA members and partners. This deal also delivers SIMON maximum exposure to the DENYER WTA’s global fans on multiple platforms. This is a ground-breaking and innovative partnership with the WTA and is also a major first step in a significant 10 year growth plan for Perform.”

PLATFORM

B2B Sportsbook Listings

Cherry to offer betting through SBTech SBTech has announced a new partnership that will provide its innovative turnkey sports-betting solution to Cherry, which specialises in online casinos and lotteries. The deal will allow Cherry’s brands - CherryCasino.com, EuroSlots.com, SpilleAutomater.com, NorgesSpill.com and NordicSlots.com - to offer a sportsbook tailored specifically for the Scandinavian, Nordic and European markets in which they operate. The sportsbook solution will include live betting on more than 18,000 monthly events, access to innovative new bet types such as the newly developed Fast Markets (allowing bettors to predict what will happen in the next 1 or 5 minutes of a live match, for fast betting and settling), and all across web, mobile and the latest tablet-specific platform, SBTech Touch. This will enable Cherry to penetrate further into their markets, using its existing success to broaden its reach to include sportsbetting enthusiasts. Costs are also kept low

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thanks to the professional risk management and trading services offered as part of SBTech’s service. Cherry Malta’s managing director Marius Andersen is thrilled at the new partnership: “As a trusted public company we have conducted an intensive period of due diligence on different providers. SBTech have built a solid reputation in their field, positioning themselves at the forefront of the industry and consistently releasing new and innovative solutions to keep the punters happy. So they were an obvious choice for us as we look to increase our reach into our current markets and we’re excited to see the results.” SBTech CEO Itai Zak is equally pleased: “We’re delighted to have Cherry on board. They are hugely successful in online gaming in their markets and we’re confident that we can lead them to even greater success with our innovative sports-betting solution.”

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VIRTUALS Award for Vermantia aming supplier Vermantiahas won the Gold Award in the category ‘Extroversion & Competitiveness in International Markets’ at the E-volution Awards ceremony, organised by, among others, the Laboratory of Electronic Commerce and Athens University of Economics and Business. Vagelis Tsaras, corporate development director at Vermantia, stated: “Vermantia since 2007, is the only Greek company that managed globally and in a highly competitive environment to offer gaming content at lottery and gaming operators. Key facilitators of this effort are the people of Vermantia that with the same vision and goals, managed to consolidate Vermantia abroad.”

DISPUTES Resolution bodies need Commission approval he UK’s Gambling Commissionhas been named as the competent authority for Alternative Dispute Resolution Entities who handle disputes relating to gambling under Europe’s Alternative Dispute Resolution (ADR) Directive which will be implemented by July 2015. This means that all ADR entities that handle, or wish to handle, gambling disputes will have to demonstrate to the Commission that they meet the requirements of the Directive such as those relating to independence, gain

approval from the Commission to handle gambling disputes, and meet the information requirements of the Directive, such as having a separate website and providing information to their competent authority (the Commission). Gambling operators will have to ensure that they use ADR entities approved by the Commission.

EXCHANGE Betfair keen on B2B model etfairCEO Breon Corcoran has suggested that the company is to take a more B2B role when entering new markets after its abandoned attempt to operate directly in Australia. Last August Betfair sold its 50 per cent share in Betfair Australia to partner Crownand changed its approach in the country to follow a more B2B route. In its latest results, the firm said: “We also believe the deal represents a new and profitable operating model for the Exchange.” In the smaller markets, it now appears that Betfair will follow the B2B model and provide a platform and support for partners, who will then be expected to market the brand in the territory.

DATA CG deal for Betradar

etradaris to provide CG Analytics, the data analytics subsidiary of CG Tech-

nology, with access to a comprehensive package of pre-game and live odds data for the firm’s live betting portfolio. “We are pleased to partner with Betradar, the largest sports data provider in the world, and to boost the strength of our In-Running wagering offering,” said Lee LEE AMAITIS Amaitis, president and CEO of CG Technology. He continued: “Through this agreement we will build on our successes in In-Running wagering and create a comprehensive, interactive data package that combines speed, accuracy and increased In-Running props, offering our customers a product that is unprecedented in the marketplace.”

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AFFILIATES New Palcon for XLMedia LMedia, provider of digital performance marketing services, has launched Palcon, a proprietary content management system which enables improved day to day maintenance of the company’s network of over 2,000 specialist content websites. Palcon is expected to enhance both mobile and social penetration rates across the group’s ‘web estate’ with improved user experience for users through mobile devices. Mobile conversion has become a significant growth driver for the online gambling industry, with an estimated 44 per cent share of the global interactive gambling market by 2018.

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making sense of the gaming industry

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iGaming

“” We revealed our licensing agreement for the Game of Thrones series in February, and anticipation for the game’s launch has been building ever since.

Roger Raatgever CEO Microgaming

Iron clad hit Microgaming has launched its hotly-anticipated Game of Thrones slot online and on mobile. Based on the international TV hit, Game of Thrones is a 5x3 reel game available in both 243 ways-to-win and 15 lines. The game has gone live to both Microgaming and Quickfire operators.

ITALY

NetEnt available in Italy via GameAccount

GAMEACCOUNT’S DERMOT SMURFIT

Italian operators using the GameAccount Network now have access to some of NetEnt’s best slot games.

et Entertainment can now offer his content to Italian operators after signing a deal with GameAccount Network plc, the developer and supplier of enterprise-level B2B gaming software and online gaming content. The partnership will see the NetEnt games integrated into GameAccount’s platform, meaning a selection of its games are now live and available to Eurobet’s player base in Italy. Björn Krantz, chief of GMO and MD at NetEnt Malta, said: “I am very pleased that we now have our integration completed with GameAccount Network, and it has been a great team effort from both organisations. I am very excited that Eurobet is now going live with a wide selection of our best-in-class games, and I am confident that Eurobet and its players will now be able to enjoy the very best player experience that exists on the market today. As we have previously announced, SNAI and SISAL are also waiting to go live with NetEnt’s games over the GameAccount Network platform, and their commercial launch will be announced separately.” Dermot Smurfit, CEO of GameAccount Network, added: “We are delighted that our integration with NetEnt will allow Eurobet and our other operating partners in Italy to realise the benefits of an even stronger portfolio of content delivered by GameAccount Network. We often talk

about the importance of delivering great games that people enjoy playing; this commitment and strategy is clearly demonstrated here. “The GAN team looks forward to demonstrating the full breadth and capabilities of our gaming software and online content to an international gathering of gaming professionals at February’s ICE exhibition taking place at London’s ExCeL Centre.” Game Account has also signed a deal with Reno-based Spin Games LLC to integrate Spin’s remote gaming server (RGS) and launch its HTML5 games portfolio for Simulated Gaming nationwide in the United States and real money internet gaming in selected regulated markets. The Spin Games RGS will be integrated into the GameSTACK Internet Gaming System relied upon by leading casinos for the operation of Simulated Gaming nationwide in the United States including Foxwoods Resort Casino in Connecticut, Empire City Casino in New York and Parx Casino in Pennsylvania. Simulated Gaming is the innovative internet gaming service designed by GameAccount Network PLC specifically for land-based casinos in advance of prospective regulation. Simulated Gaming offers a gaming-as-entertainment website enabled with unique and patented monetisation features and a compelling internet gaming content portfolio of over 100 casino slot, table and skill-based games in-

cluding poker, backgammon, gin rummy, poker dice and blackjack tournaments. Launched in the US by GameAccount Network in January 2014, Simulated Gaming has been developed to monetise internet traffic to existing websites operated by land-based US casinos with average revenue per daily active user (ARPDAU) of $2.75, as against an original estimate of $0.60. Dermot Smurfit, CEO of GameAccount Network, commented: “Spin Games has developed a strong mobile-first portfolio of HTML5 games content including a wide range of video poker, slots and keno likely

to appeal to casino patrons online. As our first RGS integration for Simulated Gaming in the United States, we’re delighted to distribute Spin Games’ gaming content across our growing network of major US casino operators engaged in offering Simulated Gaming to their casino patrons.” Kent Young, CEO of Spin Games, added: “GameAccount has deployed its internet gaming system for various major casinos in the United States, into diverse regulated real money internet gaming markets including New Jersey, and represents a compelling distribution opportunity for Spin Games’ HTML5 gaming content.”

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BettingBusinessInteractive â&#x20AC;˘ JANUARY 2015

LIVE DEALER

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Ezugi enters the Dragon zugiâ&#x20AC;&#x2122;s live casino studio is being launched with one of Cambodiaâ&#x20AC;&#x2122;s largest groups, the Dai Long Company, owners and operators of the Grand Dragon Resorts casino. The agreement sees Ezugi using its casino streaming technology to broadcast live and direct from the gaming floor, which shall include baccarat tables and VIP tables along with proxy/telebetting. Darren Heng, chief executive officer of Dai Long Company, commented: â&#x20AC;&#x153;I am delighted to make this agreement with Ezugi. They are one of the most established and successful live casino platform providers in the world. This fits extremely well with Grand Dragon Resortâ&#x20AC;&#x2122;s brand strategy, to offer a superb live casino gaming experience and I look forward to growing this exciting new partnership.â&#x20AC;?

Kironâ&#x20AC;&#x2122;s keno in Cambodian casinos irtual games specialist Kiron Interactivehas partnered with IPG Internationalto supply its new Keno game to one of Asiaâ&#x20AC;&#x2122;s leading casinos. The deal with the Naga World Hotel and Casinoin Phnom Penh, Cambodia is part of a strategy of supplying its top-performing products across the region. Kiron and IPG signed a multi-year agreement in September 2014 to provide players with an enterprise-class gaming platform, customised to conform to Naga Worldâ&#x20AC;&#x2122;s local requirements and deliver a secure, reliable and feature-complete solution. It will be offered to the casino in a purpose built area that includes a state of the art audio visual system in order maximise its appeal to customers.

Steven Spartinos, co-CEO of Kiron Interactive, said: â&#x20AC;&#x153;Our new Keno solution has benefitted from our long standing experience in the virtual games industry and a detailed review of operator needs and existing Keno systems available in the market. We are excited to join forces with IPG and provide our solution to Naga World, a leading regional casino.â&#x20AC;? William Redshaw, CEO at IPG International, said: â&#x20AC;&#x153;The strategic alliance with Kiron Interactive to provide Keno to Naga World Casino is another example of IPGâ&#x20AC;&#x2122;s continued commitment to providing cutting-edge gaming solutions, options and alternatives to meet the gaming requirements of leading casinos in the Asia Pacific Region today and in the future.â&#x20AC;?

Evolution gets Skill deal oftware supplier SkillOnNet has penned a deal to join forces with Evolution Gaming which will see Evolutionâ&#x20AC;&#x2122;s live dealer games be the featured titles in an extended live casino roster on SkillOnNetâ&#x20AC;&#x2122;s popular web and soon-to-be-released mobile versions of casinos including SlotsMagic, MegaCasino, and EUcasino. The companyâ&#x20AC;&#x2122;s Andy Andrew said that the partnership with Evolution would now give SkillOnNet the most comprehensive portfolio of live games anywhere in the betting and gaming world. He added: â&#x20AC;&#x153;Unlike some casino operators and providers we really value live content and are determined to provide the best that is available not only to our own players, but to the increasing number who are coming to us via our white label partners.â&#x20AC;?

Prolexic protects EveryMatrix customers veryMatrixis to deliver services with experts in DDOS and Mitigation services Prolexic. This service is intended to not only benefit the EveryMatrix network but enhance the protection of all clients and operators that use the EveryMatrix product portfolio. Prolexic Technologies is one of the worldâ&#x20AC;&#x2122;s largest, most trusted distributed denial of service (DDoS) protection and mitigation provider. Able to absorb the largest and most complex DDoS attacks ever launched, Prolexic protects and restores mission-critical, internet-facing infrastructures for global enterprises and government agencies within minutes. EveryMatrix CEO Ebbe Groes said: â&#x20AC;&#x153;Adding Prolexic as part of our day to day service offering gives reassurance to our operators and partners that they are now fully protected from harmful DDOS attacks.â&#x20AC;?

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SECURITY

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PLAFORM Leander in a Spin latform provider Leander Games has signed a deal to supply content to online gaming site Spin Genie, operated by Bear Group Limited. Leander will integrate its own proprietary games and those from third party developers, via its remote gaming server platform, LeGa. The deal follows an existing partnership between Leander and Bear Group Limitedâ&#x20AC;&#x2122;s owners, Gaming Realms, with which it supplied social games for its Bejig and 5 Stars Slots sites on Facebook. Paul Gielbert, managing director of Bear Group, said: â&#x20AC;&#x153;Signing this agreement with Leander is consistent with our strategy of selecting the best and most unique content in the market for our players.â&#x20AC;? PAUL GIELBERT

Finnplay finds new Tribe innish-based gaming platform provider Finnplay has provided the gaming platform solution for a newly launched social lottery operator called TribeLotto. TribeLotto.com offers players the possibility to play the lottery with hundreds, even thousands of lottery lines for the price of one line. It also shifts lottery from being traditionally a solitude game as most people know it, to a social game played together in â&#x20AC;&#x2DC;tribesâ&#x20AC;&#x2122; with the aim of winning together. TribeLotto is the only Lotto where you can affect the probability of Win without paying anything

extra. Tomas Toro, director of brand and marketing for TribeLotto, said: â&#x20AC;&#x153;We selected Finnplay Oy and the Billfold publishing platform over several other technology vendors because the business has known expertise and delivers a good return of investment.â&#x20AC;?

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SLOTS making sense of the gaming industry

Invisible launch etEnt has delivered the classic Universal Pictures film The Invisible Man as a new branded slot game using HTML5 technology. Based on the 1933 movie, in which a mysterious doctor discovers a serum that makes him invisible and slowly drives him to commit acts of unspeakable terror, The Invisible Man Branded Slot is a five-reel, three-row, 20line (fixed) win-both-ways video slot that will also be added to NetEntâ&#x20AC;&#x2122;s Touch portfolio. Simon Hammon, chief product officer of NetEnt, commented: â&#x20AC;&#x153;The Invisible Man showcases a great player and gaming experience of a very popular title and story. NetEntâ&#x20AC;&#x2122;s use of HTML5 for both desktop and mobile on this fantastic production continues to showcase our abilities, and our innovation in driving the casino market forward.â&#x20AC;?

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BettingBusinessInteractive • JANUARY 2015

Back office

“” Our rigorous licensing and verification process is widely seen as the de facto standard for companies in the gambling industry, and we are delighted to welcome BetConstruct to our world class licensee community.

Robin Le Prevost Director of ecommerce development States of Alderney

AGCC licence for BetConstruct BetConstruct has been approved for a Category 2 licence, issued by the Alderney Gambling Control Commission, which will enable BetConstruct to offer its betting solutions to all gambling operators licensed by the AGCC. CEO Suren Khachatryan said: “Alderney has, for a long time, been a seal of approval of the highest order in the industry, and we are proud to be a part of this important jurisdiction.”

MOBILE

App-tracking can now follow mobile players The move to mobile for a lot of gamblers has caused problems for many affiliates aiming to keep track of their players.

ffiliate management system Income Access has announced that the company’s mobile apptracking solution is now being actively used to track player acquisitions for the apps of a leading UK-based online casino and bingo operator. The integration follows months of beta testing and the recent news that Apple’s App Store will now host affiliates’ in-app betting apps. On 25 November 2014, Apple announced that it would allow iGaming affiliates’ apps featuring in-app betting to return to the App Store. Earlier in 2014, the California-based technology giant informed affiliates that their in-app betting apps would only be hosted in the App Store if affiliates held an operating gambling licence in the jurisdiction targeted by the app. Developed to respond to the growth in player acquisition via the mobile channel, Income Access’ mobile app-tracking addon for its platform allows operators to comprehensively track player acquisition for their mobile gaming apps. Players’ complete mobile journeys can now be tracked from their first click on a banner or PPC ad promoting an app to app downloads, installs, registrations, deposits and device information. Developed and beta-tested over the course of Q3 and Q4 of 2014, Income Access’ mobile app-tracking is now being actively used to track player acquisitions for

the online casino and online bingo apps in the UK. The launch of the app-tracking software allows operators to track their entire acquisition portfolio on a single platform. Now that the Income Access software is equipped with app-tracking functionality, acquisition managers are for the first time able to monitor how all their acquisition channels are performing in tandem. As a result, they can maximise their ROI by optimising the conversion funnel and marketing spend. “In Q1 of 2014 we saw player acquisition via the mobile channel hit 40 per cent and it’s continued to rise over the rest of the year, suggesting that cross-channel acquisition is the industry’s future,” said Nicky Senyard, founder and CEO of Income Access. “Responding to the mobile trend, we’ve transformed our platform into an integrated acquisition-tracking technology capable of streamlining each and every channel - with Income Access, the acquisition whole is now greater than the sum of its parts.” Income Access has also teamed up with DerbyJackpot, the US-facing online horseracing wagering brand developed and operated by the New York City-based game development studio GiddyApps. Under the partnership, DerbyJackpot’s new affiliate program will integrate with the Income Access acquisition-tracking platform and will be managed by the company’s in-house team. Launched by GiddyApps in 2013, Derby-

Jackpot offers online wagering on live horse-racing events at more than 50 US racetracks. Residents of 37 US states, including California, Illinois, New York and Pennsylvania, can engage in real-money pari-mutuel wagering via the website of the brand, which is approved and regulated by the Oregon Racing Commission. DerbyJackpot features a strong social media element and allows players to engage in group-chat and compete against their friends. Ryan Wesely, vice president of marketing at DerbyJackpot, commented: “Income Access has a very strong reputation in driving player acquisitions for real-money gaming clients throughout Europe, so they were our first choice when it came to choosing a technology partner for our affiliate program here in the US. In addition to their platform’s capabilities, Income Access offers program management expertise to assist in our launch and help accelerate the growth of our affiliate marketing program.” GIDDYAPPS HAS PARTNERED WITH INCOME ACCESS FOR DERBYJACKPOT

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B2B

BettingBusinessInteractive • JANUARY 2015 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, CHris Webster, Steve Turner

TESTING

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

INTEGRITY

NMI to test William Hill casino games illiam Hillhas engaged compliance expert NMifor testing its full suite of online casino games to the requirements of the UK Gambling Commission, following introduction of the Gambling (Licensing and Advertising) Act. NMi has a long history of working with William Hill, having tested the majority of the bookmaker’s Category B fixed odds betting terminals and games. Shane Kelly, head of QA and test for William Hill, said: “We NMI HAS appointed NMi based on the ALREADY high level of professionalism TESTED and the in depth compliance WILLIAM knowledge that they were able HILL’S FOBTS to demonstrate. As a high profile organisation, we value partnerships with innovative organisations that can both complement and facilitate our business goals. This is a significant development and we look forward to a long standing relationship.”

CONAJZAR approves BMM Testlabs aming testing laboratory BMM Testlabshas received approval and test lab registration from CONAJZAR, Paraguay. The registration covers devices and systems for gaming and lottery. Travis Foley, EVP operations - BMM Americas, commented: “We are very pleased to confirm that BMM is now accredited in Paraguay through this recent approval from CONAJZAR. BMM will continue to support the regulators and operators in the South American market and we are looking forward to expanding our services into Paraguay. “We are pleased CONAJZAR has chosen to work with BMM and we would like to thank Attorney Javier Balbuena Estigarriba, CONAJZAR President, and his team for their diligence and attention during BMM’s registration process.”

SYSTEMS Royal visit for Continent 8 ontinent 8 Technologieshas had another brush with royalty after HRH Prince Michael of Kent visited its data centre in Gibraltar. The location is housed within the decommissioned Operations Centre which was designed for secure and resilient operations providing an ideal location for use by General Dwight D. Eisenhower during World War II, now a modern Data Centre facility. It was from here that General Eisenhower supervised Operation Torch, the Allied invasion of north Africa, in November 1942. More recently, the underground complex was also a key control site for NATO operations in the Falklands and the Gulf. HRH

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.

Sportradar to monitor ice hockey tournaments he International Ice Hockey Federation (IIHF) has announced a landmark three-year partnership with integrity specialists Sportradar. Under the partnership, Sportradar will monitor a total of three flagship tournaments per year from 2015 to 2017 and will deliver a total of 12 educational workshops, which will be targeted at participating players, officials, administrators and coaches. Sportradar’s Fraud Detection System will monitor the world’s betting markets on the IIHF Ice Hockey World Championship, IIHF World Junior Championship and IIHF Ice Hockey U18 World Championship each year, ensuring that any suspicious odds movements or patterns are flagged, analysed and promptly forwarded to the IIHF. Furthermore

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, 2015 All rights strictly reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means without the prior written permission given, full acknowledgement of author, publisher and source must be given.

B2B Back Office Listings Sportradar will send experts to the host cities to provide all relevant participants with valuable insight and understanding of the global markets on ice hockey and the dangers posed by fixers. IIHF president René Fasel said: “Very few sports excite and engage fans like ice hockey does. And we want to keep it that way. The integrity of our World Championships and our sport are central to that.” “What this partnership does is send a powerful message. It sends a powerful message to our fans that we will not compromise when it comes to protecting the honesty of the game we all love. By including the U20 and U18 competitions, we send a message that we are doing all we can to safeguard our sport for today and tomorrow. By partnering with a professional organisation like Sportradar, we send a message to the fixers that we are watching them. Zero compromise; zero tolerance.” Sportradar managing director Andreas Krannich added: “Hearing president Fasel’s words is reassuring to me and should be reassuring to all those that love ice hockey. By asking us to monitor 126 ice hockey games and deliver 12 workshops over three years, the IIHF has shown a keen awareness of this vitally important issue. We have worked hard to develop the ice hockey Fraud Detection System and we have honed it to the needs and sensitivities of the sport.”

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Bet365 adopts Riak asho, the creator and developer of distributed NoSQL database Riak, has rolled out its flagship product to major bookmaker Bet365. Martin Davies, CEO Technology at Bet365, said: “Our decision to implement Riak was purely strategic. After a stringent evaluation process we decided that Basho’s flexible, scalable database was best-suited to our needs. Given the huge amount of data we process on a daily basis from customer details to betting odds - it was imperative that we had a platform to support this. We selected Riak, and have not been disappointed with the results.”

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PAYMENTS CreditGuard made Safe for $8m dvanced payment firm SafeCharge has acquired rival payment processor CreditGuardLtd for an initial cash consideration of US$8m and deferred consideration capped at US$0.4m. The acquisition of CreditGuard marks a further milestone in the execution of SafeCharge’s strategic plan aimed at entering new and rapidly growing markets and sectors bringing with it a portfolio of clients from sectors including travel, insurance, telecoms and government. SafeCharge chief executive David Avgi said: “CreditGuard is highly regarded within the payments industry, with a solid portfolio of clients across multiple market sectors and a vast knowledge and expertise in Enterprise IT infrastructures, networks and security. This enables us to fast-track our entry into new verticals and take a strong position in the exciting Israeli market.”

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BB124-p52-54-Comment_09/10 02/01/2015 12:23 Page 1

Comment

Legality of online betting in Russia is open to interpretation How true is it that the Federal law No. 244-FZ and its amendments legalises online betting in Russia? Leonid Oboznyy, president of the First Gaming company (Rub90), explains that all is not what it seems. oday it’s hard to speak about clear legalisation of online betting, which was stated at the level of law regulation, because the model elected by the Russian legislator significantly differs from the classical one, e.g. British model of online betting. According to the Federal law No. 244-FZ it is forbidden to accept bets on the internet. In the document it is stated that gambling institutions act as a place for betting, namely betting shops. So, in the law it is all about an ‘interactive bet’, which is a mean for betting, but it doesn’t say that the bet can be made on the site. 244-FZ doesn’t forbid making payments, which is a condition of participation in gambling. However, they’re not talking about the site in this law. It means that the essence of the site itself as a place of bet reception isn’t stated in the law. Therefore, in my opinion, it is incorrect to say that 244-FZ legalises betting

52 BettingBusinessInteractive • JANUARY 2015

on the internet. The law establishes a ban on the organisation and carrying out gambling activities with the use of information and telecommunication networks, including the internet networks, and also means of communication, except for the cases provided by the same law. But those ‘exceptions’ aren’t clarified in the law. Anyway, this process is characterised by high dynamics of development. In any case law-enforcement practice and market laws will introduce corrections to the standard regulation. The situation will change, and we will monitor it attentively. At this moment there are a number of factors which prevent players making interactive bets. The conditions which form those factors depend not only on government bodies, but also on participants of the market and players themselves. All betting market participants need clear and transparent rules stated in

the law, according to which they will work. However, as we know, the Russian legislation as regards gambling, unfortunately, is not exactly stable. At this point in time, the system and the taxation order of the bookies for accepting interactive bets aren’t yet defined. Without this factor it is extremely difficult for a businessman to make a decision to begin operation on the market. There is also the very real question about activity of the Center for the Accounting of the Translations of Interactive Bets, which remains open. Data about players via CATIB can be potentially available to competitors - other participants in the market. All bookies are worried by questions about guarantees of information and economic security, as all are interested in that business processes were safe and interests are reliably protected. Necessity to pay the income tax is another limiting factor, but from the players’ side. Thus, according to the law the bookie is obliged to hold 13 per cent of the interactive bet’s win as a tax on the income of natural persons. Herewith, players (despite of the efforts of the acting SRO, Roskomnadzor and FTS who block access to the gambling and betting sites on the internet), have a lot of alternative highquality betting services, where it isn’t necessary to pay income tax. The player simply ‘saves’ 13 per cent of his win. In my opinion, the Russian betting market has to become more attractive, more reliable and prestigious for our players, so that the doubtful economy in 13 per cent charge isn’t a decisive factor in a choice of betting provider. Therefore, for the organisation of online betting in its classical understanding, it is necessary first and foremost to make changes to the legislation. It is necessary to begin with the law No. 244-FZ, the basic one for bookies, which should be altered so that it no longer establishes a ban on organisation and carrying out gambling with the usage of information and telecommunication networks, including the internet networks. There are existing opinions that the acting regulations have already settled all necessary business aspects but these are the product of free interpretation of the law and, in particular, of the interpretation of the concept of an interactive bet.

Research opportunit t already feels like a big year ahead for the gambling industry; frustratingly though it’s more for external reasons than anything that can be directly addressed. The absolute key date for the sector though is 7 May election day. Gambling has been hoofed up and down Parliament like a delinquent with a hedgehog over the last couple of years and the hustings ahead of this general election will undoubtedly prove fertile ground for those wanting to score cheap political points, regardless of their accuracy. Of course it is even more dangerous when you add into the mix a moneyed and motivated lobby group. We will see just how much dirt has stuck to the industry during the campaigning process - and how many promises are made in the run up to polling day. In these days of coalition governments, manifestos are more easily pushed aside than ever before (just ask Lib Dem voting university students), but adding restrictions to gambling may well be one of the few issues to garner cross-party support. Anti-industry campaign-

andrew mccarron viewpoint

BB124-p52-54-Comment_09/10 02/01/2015 12:24 Page 2

“The government will consult on the introduction of a racing right in early 2015 and will announce a decision after consultation.” Chancellor George Osborne announces a third consultation on the future of the Levy in less than a year during his Autumn Statement

arch provides an tunity to work together ers have been bemoaning the fact that the Responsible Gambling Trust research hasn’t provided a simple ‘whole truth’ about B2 gaming machines, but this is far more inconvenient for the industry than the campaigners. If the research was the best in the world and identified where FOBTs were causing harm, then that that area could have been quickly dealt with, cauterised if you will, and everyone could have been satisfied at effective action taken. And a different debate, less informed by smoke and mirrors, could entertain us ahead of election day. Strangely enough, this research actually IS the best in the world, as there have been no studies like it and able to deal with quite so much data. Of course to some it’s almost worthless, despite being world-leading, as it doesn’t conform to their own belief structure, or because it is funded by the industry (even though the direction of research is informed by the RGSB of which two members of the 11 strong board are former gambling CEOs).

But neither is it perfect. In fairness, no-one is claiming it is. And the key here is to build on what has been discovered, and use the findings directly to help increase the effectiveness of current harm prevention strategies. Again, this is where no effective ‘black and white’ scenario is actually quite harmful for the industry. Politicians (or at least their advisors) skim reading the studies will see there is no obvious way of effective decisive action against problem gambling. Given that nature abhors a vacuum, they will then create decisive action of their own - the odds being that all machine gaming must be account-based. Some bookmakers might be happy to take that to keep what is essentially vital revenue and be safe in the knowledge that the small percentage of their customers who are in danger of developing a problem will be more easily identified. There are a lot of important words in that sentence, but the phrase that keeps getting overlooked is ‘small percentage’. As hard as it is

for some to accept, most of the people who play B2/B3 gaming machines do so for entertainment purposes and do not develop any issues. Problem gambling is a complicated and, as is frequently shown in studies, is a multi-product issue. The simple solutions that are all too often mooted will not deal with the problem, but shift them, potentially to areas where they are less likely to be identified. If this research could have done something, it is to get all those invested in problem gambling and gaming machines to work together and identify some really effective ways to prevent harm without having huge implications for the rest of the gambling population. If people can find some room for manoeuvre in their (up until now) ingrained positions, with all crusades, reluctance to threaten the bottom line or political grandstanding put to one side, then perhaps this research and co-operation can benefit the people who really need the help; the problem gamblers.

ACTION IMAGES / SCOTT HEAVEY

Fairness in Tatters - Time for a new rule for Rule 4?

IF A HORSE IS WITHDRAWN, JOHN SAMUELS BELIEVES THAT THE RULE 4 DEDUCTION SHOULD BE IMPOSED AT THE TIME OF THE BET RATHER THAN THE WITHDRAWAL

John Samuels of IBAS believes that the industry is now in the position of offering bespoke rule 4 judgements depending on when the bet was struck. he betting industry prides itself on being at the cutting edge of innovation and technology and, more often than not, it is justified to do so. There is one part of the industry however that seems to be lagging back into the 19th Century. I refer to the application in some quarters of the Industry of Tattersalls Rule 4(c), better known as the Rule 4 deduction. The 19th Century culture and question being this: On what basis should the Rule 4 deduction be made? Should the Rule 4 deduction on the winner be made on the basis of the odds available in the market when the nonrunner was officially announced, as the 1886 wording (revised in 2005) has it? Rightly or wrongly, this is more commonly interpreted as the time of

withdrawal. Or should the deduction be made, on the winner, on the basis of the market position of the non-runner at the time when the bet was actually struck? One can understand the original (and current) Tattersall’s wording, still applied by some operators today. When Tattersalls rules were first compiled, it would have been difficult at best to determine what the full market position was, back at the precise time that the winning bet was struck. But surely there are now adequate and comprehensive records available to determine what the price of the withdrawn horse was at the time of each affected bet. And would this not be the more logical basis on which to make the deduction? After all, given the purpose of the original rule, should it not

be the odds and resultant over-round percentage of the market at the time that the bet was struck that should be altered, and not the market position when the announcement of the withdrawn horse is made? If Tattersalls Rules were being written today, in the knowledge of modern technical standards, it would be hard to justify any other approach. The principle of Tattersalls Rule 4(c) is far from showing its age and is applied now not only to horse racing markets but used by many operators to settle many other sporting markets where a ‘day of race’ treatment is more appropriate than the use of ante-post rules. It would be a positive for the industry to see it used consistently and always in the spirit of making a fair adjustment to an agreed bet.

BettingBusinessInteractive • JANUARY 2015 53

BB124-p52-54-Comment_09/10 02/01/2015 12:27 Page 3

“Every time you tear a leaf off a calendar, you present a new place for new ideas and progress.”

Comment

Charles Kettering, American inventor (1876 - 1958)

A business model based on humility could reap an extra 30 per cent

David Loveday, principle consultant at Regulus Partners, identifies the qualities needed for a gaming CEO.

Retired consultant Ric Ingram posits the fact that bookmakers are turning away expertise with information that could actually make them money if they were only to use it.

Five important issues that new gaming CEOs must tackle very time a chief executive role becomes vacant in the gambling industry the rumour mill cranks up and even new betting markets are released by competitor firms with a list of possible names ranging from the plausible to the outright fanciful. (My name appeared in the runners and riders for the Ladbrokes job in the first list compiled by Paddy Power - I will leave you all the speculate where my odds of 11/1 place me on that spectrum). Given the nature of the gambling industry, it should perhaps be no surprise that this type of high-profile speculation is an important element of the make-up of the sector, and it may even be one of the contributing factors behind the lack of talented individuals entering the sector from the outside. But there are other reasons that can be identified behind this lack of supply of new blood. First, expectations on the part of stakeholders in gambling companies tend to be sky-high and they generally eclipse the reality of what is actually possible and achievable (partly due to the growthdriven nature of small-cap; partly the lure of attractive cash flow and partly due to an over-simplification of regulatory and technology issues). Second, this is a sector which fairly neatly divides between companies which cut their teeth in unregulated markets (with an extremely ‘entrepreneurial’ culture and risk profile) and those from heavily regulated backgrounds (with the equally challenging opposite culture akin to government or police). This has led to a disconnect: while the balance between unregulated and regulated is now changing markedly, the expectations of stakeholders

have yet to catch up. The job of the modern gambling chief executive is therefore to manage this tectonic shift, from whichever part of the scale the company is on. The sheer complexity of the task relative to the size of the companies might be another reason for the reluctance of big hitters to join the fray from the outside. Given this backdrop there are, I believe, a number of attributes which contribute to the suitability and success of a chief executive in this sector. Different chief executives will suit different companies at various stages of their evolution. Businesses need to pick the right people with the right profile. Would you put an entrepreneurial/start-up guy in charge of a major PLC? Has promotion from within worked? Are left-field candidates ever given the time and support to get to grips with the sector’s idiosyncrasies and complete the job? A large part of the equation is understanding what the new chief executive will have to deal with once they have taken up the role and what it will take to handle the multi-faceted and rapidly changing issues that will inevitably arise. Here’s my brief rundown of what I think these issues are: Management skills - Any new boss needs to be able to assess their inherited team then make sensible judgement calls. Bringing in an army of staff from a previous role is tricky and they have to deliver very quickly to be deemed successful. Harnessing the talent within is critical, as is getting this balance right. This point dovetails nicely with culture do you break it, modify it or add to it? In an industry where a lot of companies are very similar (but are often convinced they are very different) you have to carry the troops and the senior management team along with you. Destruction or modification of a culture just for the sake of it is potentially dangerous

54 BettingBusinessInteractive • JANUARY 2015

and damaging. Technology - Any CEO has to grasp the technology required and really understand how it can be a help rather than a hindrance, whether landbased, remote or, increasingly, multi-channel. Technology in this sector must be understood from the start. From a transactional point of view, the modern gambling company can be (and increasingly should be) hugely advanced and highly complex and so, therefore, is the supply chain. The old adage of ‘leave it to the techies’ simply won’t cut it any longer. Regulation - The impact of regulation on gambling can never be under-estimated. Regulation has to be understood, the CEO has to have a sure grasp of the issues, and all decisions in this regard need to be well thought through. I believe that here relationship building (rather than grandstanding, mudslinging or simply ignoring) is of vital importance; this sector can get political very quickly, so the ability to handle key governmental stakeholders is extremely important. This is a key difference between gambling companies and other tech-driven consumer businesses; it is hugely dangerous to get wrong and often thankless to get right (keeping gambling off the public agenda is often the best outcome!). Owners, board members and investors - Given the nature of the market all of these important factors are liable to huge change. They need to be understood and managed by the CEO as they evolve. Communication is key - to the staff, to the customers and of course to the owners. Strong communications can build confidence, especially if expectations are set at realistic levels and risks are properly articulated. The CEO needs to embrace this factor and lead this battle. Their profile and the perception of who they are in the

outside world must be positive and accessible but also frank, grounded and carrying gravitas. The competition - Competition is always fierce. The chief executive needs to know how to fight, defend, co-operate, destroy, merge or acquire the competition. To survive, every CEO has to be adept at this kind of combat and has to lead from the front in addition to being a player in the wider industry. All CEOs have read the art of war; in this sector as with any other the CEO must avoid fighting battles that cannot be won. They need to fully understand both their own and their company’s weaknesses as much as those of their opponents ranged against them. It all sounds like the CEO needs to be something of a Clark Kent and it is true that they will need to deploy extensive powers. For anybody who has never been a CEO, I can tell you now it is a lonely role. When things go well you get little credit (it would have all happened anyway!) and when things go badly it is entirely your fault. Anybody who takes on the role of chief executive at any company will soon find out that there are consequences to having ultimate decisionmaking authority. But what really makes it a lonely job are the questions that can keep you awake at night, such as who is spinning you a line, who can you ultimately trust, and who among your staff are telling you things they simply think you want to hear. The gambling market can be a brutal and unforgiving place, and reputations can be shredded if decisions go awry. As Napoleon well knew, every leader needs a bit of luck to carry them along, but it is my belief that a chief executive job at a major firm can be rewarding, and not just financially.

apoleon Hill’s ‘Think and Grow Rich’ is a classic book well worth reading even if you are not in business. For those seeking a paradigm shift to enjoy substantially higher profits at lower risk it could be considered essential reading. I used to take a short cut that shaved 10 miles off a monthly journey, but it was through mainly derelict land, partly used for mushroom farming. I stopped using it because it smelt of rotting mushrooms and my windscreen was plastered with large and multicoloured insects. Some 12 years later I took the route once again. I thought I had taken a wrong road - there were manicured lawns, gated communities of large houses, expensive looking restaurants, Audi and Jaguar concessions and a very swish shopping mall. Where I had smelt bad odours and experienced clouds of insects, someone with more vision than I could muster had seen cheap land and potential for property development. For bookmakers with the vision and prepared to make a paradigm shift in their business model a dramatic increase in gross profits awaits while: enjoying lower volatility of profits with significantly lower operating costs This all adds ups up to an order of magnitude increase in net profits and a shareholder pleasing growth in value. Many bookies, including larger firms, shut themselves off the very information that permits the paradigm shift to be enjoyed. As I did, they only smell mushroom farms and see insect clouds rather than the potential for swanky property developments. Most bookies have had ‘sharp punters’ that make over 130 per cent of stakes month after month. The past tense applies here because these punters got

severely limited of banned by the bookies price-setters. If the bookie had followed the superior knowledge possessed by these ‘sharp’ punters, appropriating it for their own business decisions, they too would be making similar profits of 130 per cent. If ‘sharp’ punters are making 130 per cent of stakes, it follows that the prices of the selections taken by the ‘sharps’ are at about 30 per cent too high. So if a bookie aims to unbalance his book by: reducing the prices of the selections taken by the ‘sharps’ by 30 per cent - e.g. from evens to say 7/10 reducing the tranches of liability accepted for the ‘sharps’ selections before reducing the price even further under-lays these same selections increases the prices of the selections not selected by the ‘sharps’ to attract more business to these bets then the bookie will also make similar profit percentages that the ‘sharp’ punters are enjoying. It is a business model based on humility, the sharp punters are clearly better than our expensive pricesetters, so it is best to follow the lead of our ‘sharps’ and laugh all the way to the bank. Some of the liability controllers and price-setters will not be open to education into the new business model, but there will be plenty of other naive bookmaking competitors who will be pleased to snap up their price-setting ‘talent’.

Dedicated to servicing the needs of the international betting and iGaming industry, Betting Business interactive is your partner of choice if youâ&#x20AC;&#x2122;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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BB124-p56-58-Business_09/10 02/01/2015 12:26 Page 1

Growth helps to stem losses at Gaming Realms A busy six months has seen Gaming Realms develop its own platform, buy Blueburra Holdings and still cut down on its losses. RESULTS

aming Realms, the creator and developer of interactive next-generation online gaming applications, has seen a mixed six months with a 421 per cent increase in revenue to £4.6m not being able to stop a loss before taxation of £3.1m. Given that the Gaming Realms balance sheet includes marketing spend of £3.6m, costs for the Alderney Licence, costs related to the acquisition of Blueburra Holdings, as well as continued costs associated with building a new gaming platform, there are plenty of reasons why the firm is speculating to accumulate relatively early in its lifecycle. Indeed the firm can also boast a strong balance sheet with £3.8m cash and cash equivalents. During the last six months, Gaming Realms saw daily active players up 14 per cent to 5,205, acquired of Blueburra Holdings Limited for approximately £10.5m to increase affiliate size and bingo database, and obtained licenses from the Alderney Gambling Control Commission and the UK Gambling Commission. It also delivered a new inhouse scalable platform with the launch of Spin Genie brand which includes a feature set to enhance conversion, retention and monetisation of real money

gambling players. The company also agreed an exclusive UK Licence with RealNetworks for the provision of Slingo, (one of the world’s most popular bingo formats) for use on its real money gambling platform. Gaming Realms said that this provides strong crossselling opportunities for slots players via social gaming which had 50m monthly active users at its peak. Chief executive Patrick Southon said: “We are pleased to report the completion and launch of our platform which is showing good initial growth. We believe the acquisitions of QuickThink Media and Blueburra Holdings, coupled with the monetisation ability of our exciting new ‘feature led’ gambling platform, will enable us to grow revenues even more quickly in 2015.” Since the acquisition of Blueburra Holdings, the group has expanded its existing White Label business with Diva Bingo, Butterfly Bingo and Total Gold, with plans to launch two more gaming brands in Q1 2015. Revenue through the White Label Business decreased 6 per cent during the period to £1.6m as a result of a refocus of efforts and marketing budgets on the group’s own platform and products. The board said it is confident

that the acquisition will generate positive cash flow and a large consumer database for future growth. Gaming Realms has also been working to mitigate the effects of Point Of Consumption tax by developing its own proprietary platform to aid efficiencies as well as building features to aid retention. Utilising QTM and the affiliate data in BBH will enable the Group to acquire players at a lower cost. The Board said that it remains confident that the group is well positioned to maintain its strong growth trajectory and continued player acquisition. The strategy remains to engage users on new mobile devices through a soft gaming proposition, while maintaining its focus on reducing CPA. It added: “The group is now better placed to deliver a more ‘tailored’ and unique experience for players with development in its analytics and player behaviour tools. The group expects to see improved retention and player values through this focus. “The launch of Spin Genie, delivery of the proprietary platform; and exciting licence deals such as Slingo, gives the Board confidence there are significant market opportunities ahead to achieve further progress in 2015 and beyond.” ANALYSIS

GAMING REALMS IS HOPING THAT A DEAL WITH SLINGO WILL HELP ATTRACT CUSTOMERS

56 BettingBusinessInteractive • JANUARY 2015

Gaming Realms launched its new platform through its subsidiary Bear Group Limited to help it fulfil its strategy of delivering unique content to the real money gambling market. It will also bring enhanced cash flow, running at more efficient margins, thereby offsetting the effect of the introduction of Point Of Consumption tax. According to the firm, the first brand to have launched on this platform, Spin Genie, has shown very promising results with low cost of acquisition and good initial player values and retention.

ACTION IMAGES / HENRY BROWNE

Business OPTIMAL PAYMENT’S NETELLER BRAND SPONSORS CRYSTAL PALACE

Optimal expects to meet expectations despite weak share price With a new CFO in place, Optimal Payments is hoping a recent statement will firm up its share price. STATEMENT

ayment processor Optimal Payments has felt compelled to make a statement to the stock market after a ‘recent weakness’ in its share price in order to redress the balance. The company confirmed that trading in the year to date has been strong and expects Optimal Payments’ financial results for 2014 to be ‘at least in line’ with market expectations. The Neteller and Netbanx businesses are both expected to deliver good revenue growth and profitability in the year to 31 December 2014 and the integration of the US businesses, acquired in July, is progressing well. Optimal Payments added that it continues to deliver on its stated strategic objectives and remains confident in the outlook for organic and accretive inorganic growth and has just appointed Brian McArthurMuscroft to succeed Keith Butcher as chief financial officer and director of the company with effect from 1 January 2015. McArthur-Muscroft has over 25 years’ experience of dealing with financial strategy, with the last 20 years specialising in the technology sector. Butcher has agreed to remain with the Optimal Payments until 31 March 2015 to oversee an orderly transition and assist in the preparation of the year-end Report and Accounts, before taking up a new role. Dennis Jones, non-executive chairman of Optimal Payments, said: “I’m delighted we have selected Brian McArthur-Muscroft as our new CFO, after an extensive and rigorous search process. With a clear mind to the future, the Board wanted a strong candidate with a proven track record of contributing to the growth of large companies who could assist us with our own

ambitious growth strategy.” McArthur-Muscroft was previously group finance director at Telecity Group Plc where he led the IPO of the business in 2007 and raised £400m in senior debt facilities with major UK institutions to support the rapid growth of the business. He was chosen as the ICAEW’s FTSE 250 Finance Director of the Year in 2012 and Business Week’s Finance Director of the Year in 2013. McArthur-Muscroft currently serves as a non-executive director on the Board of Robert Walters Plc and is a governor of Hockerill Anglo European College, a secondary school in Hertfordshire and a trustee of Touraid, an international rugby charity which organises tournaments to bring disadvantaged children from all over the world to the UK through the creation of longterm links with UK schools and clubs. President and chief executive officer Joel Leonoff commented: “On behalf of the Board of directors and the entire company, I want to thank Keith for his dedication and contribution over the past four and a half years as CFO of Optimal Payments. Since joining the company in May 2010, Keith has been a key member of the Board and executive management team that has overseen a substantial turnaround in the business, which started with the acquisition of Optimal Payments Inc. in February 2011. “Keith’s contribution was recognised earlier this year when he was awarded Finance Director of the Year 2014 at the Quoted Company Awards. I wish Keith continued success in his future endeavours and I am also grateful to him for agreeing to oversee the seamless transition to Brian’s tenure as the company’s CFO.”

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appointments

GVC confident heading into 2015 Despite the commencement of the UK point of consumption tax and the fact that it’s a fallow year for major sporting tournaments, the board of GVC Holdings seems pretty happy. PERFORMANCE

GVC Holdings has announced a sixth successive quarter of revenue growth. The operator announced that Net Gaming Revenue (NGR) for Q4-2014 to 14 December 2014 averaged 660,000 euro (£518,000) per day, up 26 per cent on the Q4-2013. The firm also revealed a 150 per cent increase in Mobile Gross Gaming Revenue (GGR), which reached 168,000 euro (£132,000) per day. There was also a sixth successive quarter of growth in deposit values, with Q4-2014 being 20 per cent higher than Q4-2013. The firm said that trading is strong across all major territories and brands, ‘reflecting the success of the company’s focus on achieving a World Cup legacy through its brand-build-

ing and marketing initiatives over the last year’. Sports margin for the fourth quarter to date was 9.0 per cent, around 10 per cent lower than the rest of the year, but still higher than Q4 2013’s figure of 8.4 per cent. The GVC board said it has been delighted by the performance of the Group during 2014 and believes this strength of trading provides an excellent foundation for continued growth in 2015. It added that the investments already made in both marketing and mobile development have borne fruit during 2014 and the Group will be continuing these initiatives in 2015. The board noted that NGR, from 1 January to 14 December, has amounted to over 217m euro (£170m), already

higher than full-year consensus figures, with another 17 days of the year left to run. The Board said that it remained confident of ‘at least’ matching the recently raised market expectations for the full 2014 year. The company said in a statement: “It is the board’s intention to capitalise on its recent successes by maintaining its quarterly dividend policy whilst continuing to invest in product and business development. This positive outlook is set against a background that includes the commencement of the UK Point of Consumption tax and the fact that 2015 does not include a major sporting event on the scale of the football World Cup. The board views the future with confidence.”

has BtheetVictor announced appointment

European bookmaker from outgoing CEO Tim Parker.

of Anton Bell as chief marketing officer. Bell has been consulting the betting operator on marketing issues for Gaming Edge ANTON BELL Consultancy. During the consultancy period, Bell played a key role in the development of new BetVictor TV advertising campaign ‘Inside Track’ featuring former England national football team manager Sven Goran Ericsson.

has appointed Hilary Pman.laytech Stewart-Jones as deputy-chairAlan Jackson, non-executive

pain’s Grupo Codere has announced the senior managerial appointments of Alejandro Pascual as European chief operations officer and Jose Antonio Gonzalez Lainez as chief of spanish operations. Pascual will lead Codere European operations, having previously served as chief operating officer of Codere Italia. He has held senior managerial positions at Codere since 2000 when he joined the gambling group a Director of Administration. Gonzalez Lainez has been promoted from his position as Commercial Director for Codere Espana. The senior appointments will play a key role in the Spanish gambling operator’s future growth strategy, as the operator sets to turn around its declining financial performance. Grupo Codere had reports eight straight consecutive losses and has suffered from failing casino investments in its Latin American business division.

Chairman of Playtech, commented: “Since her appointment, Hilary has made a significant contribution to the company’s board through her extensive knowledge of the gambling industry.”

HILARY STEWART-JONES

he British Horseracing AssociaTappointment tion (BHA) has announced the of six new non-executive directors to its board, with a view to help the associations governance and future racing growth strategy. The new non-executive directors, who have been appointed for three-year terms from 1 December, are: Atholl Duncan, an experienced non-executive director in sports organisations, Julie Harrington, who spent eight years with Northern Racing, Noel Harwerth, former breeder and former member of the Tote Board, Joe Saumarez Smith, CEO of Sports Gaming Ltd, Laura Whyte, former HR director for John Lewis and Eamonn Wilmott, founder & MD of Horses First Racing. Chairman Steve Harman said “This is the start of a new chapter for the BHA Board and the next step in its evolution as a governing and regulatory body.”

ustrian sports betting operator er Afrell, a non-executive director A P GoldBet Entertainment Ltd has of Bwin,party, has stepped down appointed Michele Sprovieri as its as a member of the Company’s Audit new chief executive officer. Sprovieri, who was previsouly chief technical officer, takes over leadership of the

& Risk Committee. He remains a member of the company’s Remuneration and Nominations Committees.

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BettingBusinessInteractive • JANUARY 2015 57

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Packer buys into BetEasy

Business

Australian billionaire James Packer has secured control of new betting operator BetEasy through his Crown Resorts leisure enterprise. Crown Resorts now owns two thirds of the BetEasy enterprise giving the gaming operator quick access into the AUS$13bn online betting market. Packer stated that after reviewing the current Australian online betting market, Crown Resorts viewed BetEasy as providing ‘significant benefits and opportunities to our existing and future customers’.

Williams joins 500.com

Access ownership sees Perform delist from stock exchange

CHINA

C PERFORM’S JOINT CEOS OLIVER SLIPPER AND SIMON DENYER

Sports streaming specialists Perform Group is no longer a listed firm after Access Industries followed up with its aim of taking the company private. LISTING

ports data and media rights o p e r a t o r Perform Group has delisted its shares from the London Stock Exchange following the acquisition of a majority shareholding by Access Industries, which now holds, or has been offered, a total of 87 per cent of Perform Group shares. Perform will continue to execute its growth strategy through increasing its international presence, further strengthening its content and rights portfolio, and developing and launching new products and services to meet the demands of its evolving sports media marketplace. Since reporting half-year results on 29 August, Perform Group has traded in line with expectations and remains in a strong financial

position. For the full year, Perform Group remains on track to achieve revenue and adjusted EBITDA in line with the Board’s expectations. Simon Denyer, joint-CEO at Perform, commented: “For Perform Group and our staff and business partners it is business as usual and now that we have certainty in place around the ownership of the company we look forward to progressing with a number of plans to expand further into new areas.” Lincoln Benet, CEO of Access Industries, added: “Access Industries has been a supporter of Perform Group from the start and we continue to be excited by the company’s future potential. We look forward to working with the Perform Group management as the company delivers its growth strategy.” Since delisting, it has been

business as usual for Perform, which has announced a two-year renewal of its partnership with Fédération Equestre Internationale (FEI), the world governing body for equestrian sport. The new agreement sees Perform deliver extended product management and marketing of FEI TV, the FEI’s official video website and digital home of live and on-demand content from the world of equestrian sports. The renewal follows the successful streaming of the FEI’s flagship event, the Alltech FEI World Equestrian Games 2014 in Normandy (FRA) this summer. The FEI platform delivered more than 250 hours of live and on-demand coverage in just two weeks during the Games, resulting in a significant increase in subscriptions to FEI TV, which is now

one of the biggest and most successful services in Perform’s extensive portfolio of sports offerings. “Since we launched FEI TV, we have been delighted with the results,” Christian Osterode, head of broadcast and media rights for the FEI commented. “The platform enables us to offer very comprehensive and high quality coverage from all our Olympic and non-Olympic disciplines to global online and mobile communities. “We have massively expanded our reach and are now in a position to engage directly with more fans in more countries than ever before. The massive traffic since the launch clearly demonstrates that FEI TV is a fantastic tool to showcase our sport, communicate our values and convert users into true equestrian enthusiasts. Perform has enabled

FEI to monetise these digital assets. We are pleased to extend this partnership and look forward to continue providing equestrian fans with all the action from around the world.” Warren Palk, managing director, Northern Europe & MENA at Perform, added: “FEI TV continues to be the leading online destination for equestrian fans. The growth in subscriber numbers over the last five years is testament to the quality of the platform and the marketing the partners have invested in. We are delighted to have extended our relationship once again with FEI TV and look forward to bringing more high quality content and events to a growing fan base over the coming years as the platform continues to extend its reach across the globe.”

High profile appointees to Scientific board RECRUITMENT

he restructuring around Scientific Games after its acquisition of Bally continues with the election of two new members to the board of directors. Richard Haddrill, former CEO of Bally Technologies, Inc, was elected as executive vice chairman of the board last month while Judge Gabrielle McDonald has also been elected as a director. Gavin Isaacs, Scientific Games president and chief executive officer, commented: “Scientific Games is pleased to welcome two extremely accomplished, talented, and highly qualified leaders to our board. Richard is an extraordinary executive who led Bally to record profits and revenues and has a deep background in growing high-performing companies. Gabrielle has an internationally renowned record for integrity and fairness, as well as a deep background in law, compliance and international business. Richard

58 BettingBusinessInteractive • JANUARY 2015

hinese online sports lottery service provider 500.com has appointed Jeffrey Williams as a new independent director. He will also serve as a member of the Audit committee of the Board of Directors. 500.com is listed on the NASDAQ and offers a comprehensive and integrated suite of online lottery services, information, user tools and virtual community venues to its users. 500.com was among the first companies to provide online lottery services in China, and is one of two entities that have been approved by the Ministry of Finance to provide online lottery sales services on behalf of the China Sports Lottery Administration Center, which is the government authority that is in charge of the issuance and sale of sports lottery products in China. Williams currently serves as president of Shenzhen Development Bank and was the first person of a non-Chinese nationality to lead a Chinese bank since the founding of the Peoples Republic of China. In a separate development, Yu Wei has appointed as a member of the Strategy Committee and Honghui Deng as a member of the Nominating and Corporate Governance Committee of the Board of Directors. In addition, current directors Jiepin Fu, Min Fan and Jinping Ma have stepped down from the Board of Directors of the company following the expiration of their oneyear terms. Man San Law, chairman and chief executive officer of 500.com said: “On behalf of the Board of Directors, I would like to express our sincerest gratitude to Mr Fu, Mr Fan and Mr Ma for their outstanding contributions to the company over the past year. We wish them success in their future endeavours. I would also like to extend my warmest welcome to Mr Williams whose extensive experience and expertise in corporate matters will surely benefit the company over the long-term.”

RICHARD HADDRILL: EXECUTIVE VICE CHAIRMAN OF SCIENTIFIC GAMES

and Gabrielle are strong additions to our already outstanding Board.” In his role as executive vice chairman, Haddrill will focus on assisting the company in realising its business and financial objectives in connection with the integration of Bally, which the company acquired in November 2014. Haddrill will also focus on new business development,

as well as providing general strategic guidance to Scientific Games’ management. Prior to joining the Board, Haddrill served as Bally’s CEO from 2004 to 2012 and from May 2014 until the company’s acquisition. He served on Bally’s board of directors from 2003 until the acquisition, including serving as chairman of the Board from 2012 to 2014. Prior to becoming Bally’s CEO, Haddrill served as CEO and as a member of the board of directors of Manhattan Associates, a software solutions to the supply-chain industry. Prior to that, he served as president and chief executive officer of Powerhouse Technologies, a technology and gaming company involved in the video lottery industry and online lottery and pari-mutuel wagering systems. Haddrill is chairman of the board of directors of Corrective Education

Company, a company involved in providing training and education alternatives to judicial prosecution. In addition, he is a director of the American Gaming Association and The Smith Center for the Performing Arts in Las Vegas. Judge McDonald is a former U.S. District Court judge and since 1999 has served as Special Counsel on Human Rights to FreeportMcMoRan, an international resources company. From 2001 until 2013, Judge McDonald also served as a judge on the Iran-United States Claims Tribunal in The Hague. Prior to that, she served six years as a judge on the International Criminal Tribunal for the former Yugoslavia in The Hague, and was president of the Tribunal from 1997 until 1999. Judge McDonald is a member of the board of directors of the American Arbitration Association.

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