December 2017 Infinity Gaming Magazine

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InfinityGaming www.gaming-awards.com | ISSUE WINTER 2017

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GAMING + ARTICLES + BUSINESS+ GLOBAL + ONLINE + NEWS+ AWARDS + etc


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WINTER 2017

32 LOAN SHARKS Teresa Tunstall

38 BEGINING OF THE END Christina Thakor-Rankin

24 MENTORS Lee-Ann Johnstone

Opinion Disclaimer: The views and opinions expressed in all external articles are those of the authors and do not necessarily reflect the official policy or position of The Infinity Gaming Magazine Any content provided by our feature writers or authors are of their opinion, and are not intended to malign any religion, ethic group, club, organization, company, individual or anyone or anything.

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WINTER 2017

4 EDITOR NOTES Lana welcomes you to the June edition of Infinity Gaming Magazine.

6 OUR WRITERS Meet our feature writers, the superb writers on our rosta.

10 IGA11 FINALISTS See Who Made The List

16 ALEXANDER STEVENDAHL

10

CEO Videoslots Interview

24 MENTORS Lee-Ann Johnstone

IGA11 FINALISTS Have You Made The List?

32 LOAN SHARKS Teresa Tunstall

ALEXANDER STEVENDAHL Special Interview of CEO Videoslots

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38 BEGINING OF THE END? Christina Thakor-Rankin

45 DIRECTORS ARRESTED Latest News

49 NEWS & MORE NEWS from the gaming industry

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A note from the editor CONTACT US Clever Duck Media Centrix@Keys Keys Park Road Staffordshire WS12 2HA UK Tel: +44(0)1543 478 889

“Striving for success with-

PRODUCTION Clever Duck Media Centrix@Keys Keys Park Road Staffordshire WS12 2HA UK

out hard work is like trying to harvest where you haven’t planted”

PUBLISHING Infinity Gaming Magazine is operated by © Clever Duck Media Ltd ®

Lana Thompson - Editor

Welcome to the Winter edition of the Infinity Gaming Magazine

Welcome to the Winter edition of the

over the World for the online and land

Infinity Gaming Magazine and always

based gaming industry.

the winter months are a busy time for everyone not least here at Clever Duck

Finally and certainly not least is an ex-

Towers with the planning for the 11th

clusive interview with Alexander Stev-

International Gaming Awards well un-

endahl the CEO of Videoslots.

derway. Have a wonderful festive season and a This year we had a record amount of en-

superb New Year and will see you all in

tries and our judges said the evidence

2018.

this year was of the highest they have ever seen, so well done to you all for

I will let you get on with reading all the

taking part.

superb articles as always and till next time.

We have all the finalists on the website so go have a look at the superb list of

“To Infinity and Beyond!”

deserving finalists for this year. Regards, Back to the magazine and as always a wonderful writers Teresa Tunstall, Christina Thakor-Rankin and Lee-Ann Johnstone have given us some superb articles to keep us busy for a few hours along with the very latest news from all

INFINITY GAMING

Lana The Editor

Company Reg. No. 687 1018 (Registered in England) V.A.T reg. no 972 6372 91

Sponsorship Opportunities Colin@cleverduckmedia.com Business Partnerships Svetlana@gaming-awards.com Marketing & Advertising claire@cleverduckmedia.com Editorial Content & PR media@cleverduckmedia.com


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Infinity Gaming Magazine Contributing Writers A magazine is only as good as the content inside and with some of the leading specialists within the gaming industry. With specialised articles covering customer service, the gaming law, new prducts, technology and current affairs with the sector the Infinity Gaming Magazine is delighted to showcase our superb line-up of contributing writers.

Christina Thakor-Rankin Christina is Principal Consultant at 1710 Gaming Ltd, a specialist betting and gaming consultancy, delivering a range of services including licensing and compliance (incl. regulation, money laundering and social responsibility), business start-up, training and strategic reengineering, project management, research, business analysis and development, to start-ups and established multi-national operators and providers, gambling regu-

lators, law enforcement and government agencies, media, and specialist interest groups and associations within the sector, in both established and emerging markets across the world.

www.1710gaming.com

Teresa Tunstall – Independent Gaming Consultant After many years of working in casinos in the UK and on USA ships as a croupier and inspector, Teresa turned from ‘poacher to gamekeeper,’ spending 16 years with GamCare, who offer help and support to those who develop problems with their gambling.

Teresa now works independently consulting on all issues relating to Social Responsibility and Problem Gambling.

Working closely with the betting and gaming industry, She developed strong links delivering Social Responsibility and Problem Gambling training around the world, from Antigua to Moscow, and Auditing in the UK.

To contact Teresa regarding consulting please email: Teresatunstall1@gmail.com

Lee-Ann Johnstone - CEO Best Odds Marketing With almost two decades of digital marketing and affiliate experience gained within retail, payments and at blue chip iGaming brands, Lee-Ann Johnstone has a wealth of expertise as an award winning digital marketing expert and business mentor. In 2015 she founded AffiliateFEST (www.affiliatefest.co.uk) a learning academy for iGaming entreprenuers and has recently founded Best Odds Marketing (www.bestoddsmarketing.com) offering digital marketing services, training, event management and business coaching for iGaming

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businesses. https://www.affiliatefest.co.uk/


WINTER 2017

.com

ALEA.com is an award-winning casino operator founded in 2012 by Alexandre Tomic and Charles Gross, who have over ten years' industry experience ranging from affiliate network owner to casino operator. They are driven by innovation and dedicated to staying on the cutting edge of technology; with this in mind, ALEA’s product, SlotsMillion, is an online casino with over 1,300 slots and many inventive features. This includes the world’s first real money virtual reality casino, which is available to play in both VR and 3D and has received very positive reactions at conferences and from industry and mainstream publications. INFINITY GAMING

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Celebrating the Global Gaming Industry



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WINTER 2017

Interview with Alexander Stevendahl CEO of Videoslots

Thank you Alex for speaking to Infinity Gaming Magazine and to start for our readers who may not know what is Videoslots.com?

affiliate site called Rakebacklovers in

the EU to take on online gaming.

2006.

What jurisdictions does Videoslots work in?

Videoslots came to life in 2011 and has

You engage the customers a great deal using Social Media, how successful has that strategy been?

quickly established itself as the player’s

We currently operate with a licence in

choice casino. Videoslots is an award-

Malta and the United Kingdom. We are

Whether to communicate or get to know

winning casino that has been built from

preparing to obtain a licence in Den-

more about what is offered, nowadays

the roots up around the concept of in-

mark during next year.

people reach out to brands on social

novation, differentiation and high end customer service. At Videoslots every player is a VIP.

media. We have a team which is active

Does the company only offer slot games?

round the clock directing them to our live chats as unlike other industries, we cannot give full support on social me-

How long have you been CEO of the Company Alex? I have been active in Videoslots since

No, we offer all the casino games you

dia. Our followers have doubled and

can imagine. We have a selection of

this year we have split the channels in

2,300 games and the list is growing

two categories. We have accounts which

daily.

focus on the product and others which

2013.

How long have you been in the gaming industry Alex?

promote jobs and affiliation. Instagram

The company is based in Malta, what was the reason for headquartering there?

is a good example of this https://www. instagram.com/videoslots_family/ We are also very active on forums such

When I finished school, I had started

Well we opted for Malta because it is

as Casino Meister and we have been

to play Poker and was earning quite a

well adapted for iGaming companies as

nominated by the followers of Casino

comfortable living from it but once I had

compared to other countries in the EU.

Meister as Best Casino twice in a row.

a bad month and decided to launch an

Malta was one of the first countries in

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Alexander Stevendahl Focus Interview

What is the companies most important region as far as business?

we will be looking to fill in the coming

When I became active in the company,

months.

Videoslots actually had poker from a previous merger. We decided to close

This year UK will become our biggest market. However, we have a big player base in Scandinavia as well.

The company has grown not just their portfolio of games over recent times but grown the company’s workforce, how quickly is the company growing at present?

The most recent news from Videoslots is that the company has just acquired the PKR 3D Poker platform, is this is new and exciting time for the company?

that down quickly as we were not ready for it. Casino is our number one focus and will still be after we relaunch the PKR poker software. When we entered the casino market,

Expansion and diversification is always

there were several dominant factors to

positive in business and after the suc-

consider, but it didn’t stop us.

cessful few years we have had at Videoslots, we believe that we have the

You say there are two dominant poker

The growth has been very impressive

right knowledge and ingredients to also

rooms? Soon it will be three.

because when we launched in 2011

take PKR to the next level. It is an excit-

there were 5 employees, then the big-

ing time for everyone at Videoslots and

Joke aside - I would like to point out

gest boom came in 2015 when there

we cannot wait to get the ball rolling.

that our aim is not to become the big-

was the launch of Battle of Slots. The team grew to 35 and from that day, we have not looked back. Today Videoslots employs over 110 employees working out of its Malta Headquarters, and there are still quite a few positions that

gest poker room in the industry. Our aim

Videoslots has never offered online poker before, is this a gamble by the company given that there are two very dominant poker platforms already out there?

is to become the fishiest poker room in the industry. We want to make poker fun again, but not fun for the professional player, we

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WINTER 2017

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Alexander Stevendahl Focus Interview

want it to be more fun for the average player that just wants to be entertained.

where will Videoslots ensure that does not happen again?

makes Videoslots the success it is? That is a very big question, so of course

Can you tell us when you expect to have the poker site up and running?

We don’t aim to make money on poker. We will use it as an acquisition and retention tool for our casino players. That

We expect the poker to go live latest Q3

1. We listen to our players.

is the big difference from us to PKR.

2018. But, we hope to have it up earlier.

Will customers see anything different about the old PKR poker site, will Videoslots alter it in any way?

I have a huge answer. But in a nutshell:

2. We actively discuss players questions

Moving on from poker what can we look forward to with Videoslots in the near future?

openly with them directly on forums. 3. We make changes to our site based on players feedback.

Videoslots is currently in the process Our first aim is to recreate the old PKR

of application for licences in Romania,

4. Our target group is low-mid rollers

poker platform. The only thing that

Denmark, Spain, Italy and Portugal and

who don’t like to play with most of to-

will change is the PKR logo to the Vid-

expects it will need local bases to sup-

day’s bonuses.

eoslots logo. We also aim to launch a

port all these operations. We would

web based version on the go live day.

be looking to recruit an additional 60

5. Battle of Slots – First social casino

The big changes players will see, is

people to help us execute on this de-

with real money!

how the tournament setup will work

cision. Up until now I am happy with

and even cash games. Promotions

how my visions have worked out but

will also be different from before.

we are not talking about an overnight story here, everything takes time.

Why do you think PKR ultimately failed with their 3D poker and

Before we let you go Alex what

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GAMING NEWS

WINTER 2017

London Marathon call for runners to support Care International

D

o you fancy taking on the London marathon? Well our charity that we have supported for several year and raised hundred of thousands are asking if anyone from the gaming industry wants to take on the challenge. We have partnered with CARE International for the last seven years, raising over £121,750 for their work putting an end to poverty around the world and responding with lifesaving assistance in emergencies. We’re passionate about the difference supporting CARE makes, and we would like to invite you and even your colleagues to support CARE by running the London Marathon in 2018.

There is a total of five places available and would love to see runners from the gaming industry taking part to support CARE, allowing us to help more communities living in poverty together. A direct donation of £2,000 to CARE will cover one place in this unforgettable event for a member of your team.

zine will cover your support of the Marathon and CARE and ensure you and your colleagues get the recognition and praise such a challenge deserves.

If you’re interested in supporting CARE through the 2018 London Marathon, please get in touch with our contact Tony Jones at tjones@careinternational.org or on 020 7091 6049 to discuss this great opportunity for your staff. The Infinity Gaming Maga-

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GAMING NEWS

WINTER 2017

Dutch Gambling Firms Ready in Malta

D

utch online gambling expansion allowing for the end of monopoly state gambling in the country which Holland Casino currently enjoys has yet to reach a debate in the Parliament but that is not stopping several Dutch gambling firms readying themselves for when it does. According to reports out of the Netherlands following the leaked Paradise Papers it shows that several companies that operate amusement centres in the country have set up base in Malta preparing for the expansion of online gambling back home.

is JVH Gaming which has some 65 entertainment centres in the Netherlands. These companies are basing themselves in Malta to take advantage of the expertise and workforce there once the government back home passes legislation for the expansion of gambling. Some 6,200 people living in Malta work in the gambling industry bringing in some €1 billion a year to the local economy. The Dutch gambling market is said to be worth at least €750 million a year once legislation is passed.

One of the named firms in the papers is Kerkrade which operates 42 amusement arcades in the Netherlands, another

NYX Takes Out Law Suit Against William Hill On Sale To Scientific Games As William Hill was looking at blocking the acquisition of NYX Gaming by Scientific Games because the UK Bookmaker felt it would harm their current relationship and agreements with NYX. William Hill has over 6.8 million shares in NYX Gaming and the company are considering attempting to block the deal, however NYX Gaming has now filed a law suit in the US against William Hill for anti-competitive behavior. Scientific Games agreed the deal to acquire NYX Gaming for upwards of $600 million but William Hill are not happy but now NYX say the UK Bookmaker has “engaged in wrongful conduct in violation of the New Jersey Antitrust Act in attempting to block the acquisition”, in what NYX say would “bring great benefits to the nascent regulated sports betting industry”.

Should the deal go through William Hill would have a 31.9% share in NYX Gaming under the agreement, however William Hill believe the deal would harm their agreements in place with NYX Gaming and that the new owner Scientific Games would look to change those agreements. A deal which was expected to go through without any problems earlier in the year looks set for the courts and delays in the acquisition will go well into 2018. One Industry Consultant who did not want to be named said, “it is a very strange circumstance that a provider/ supplier and part owned by an operator is taking them to court, it must truly be a first and whatever the outcome will damage relations for all three companies.”

In the complaint by NYX it is seeking “injunctive relief, treble damages and attorney’s fees for violations of the New Jersey Antitrust Act”. The suit also alleged “tortious interference with economic advantage, and tortious interference with contract,” and sought punitive damages.

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WINTER 2017

Growing your Affiliate Business with the help of a Mentor By Lee-Ann Johnstone

R

unning an affiliate business is hard. The environment is fiercely competitive, regulation is constantly changing, large scale mergers and acquisitions are taking place at a rapid rate and the industry is maturing fast. If you are responsible for running an affiliate programme or indeed are an affiliate website you will be competing in a competitive landscape that is constantly changing. Keeping ahead of the curve is vital for your success. Finding an experienced business mentor to help you navigate the day to day challenges faced in the iGaming space, may be the last thing on your mind. In the current climate however, accessing expertise when you need it to grow hack your business and overcome strategic challenges is becoming essential to growth. All too often, you can find running

INFINITY GAMING

your business or your companies affiliate programme already demands all your attention, leaving little time for future planning or even the headspace to see what’s coming up ahead. Whilst focusing your efforts on what’s happening in your business today is imperative to keep a business operating efficiently, it doesn’t create a future proof strategy to plan effectively for times ahead. Changes that occur due to ongoing legal and advertising regulations and or programme closures can dramatically impact revenue overnight. As a digital and affiliate marketing mentor, I often find myself helping affiliate managers and website owners find time to plan effectively and innovate for future disruption. Taking time away from your business to get the headspace you need to get clarify and understand where your going, spot opportunities for growth and focus on commercial growth hacking,

can make all the difference in our competitive environment. Having access to someone with qualified experience mentoring others and who has a vast network of contacts you can tap into, can be of great assistance in helping you spot opportunities and improve your business efficiency not to mention fast track revenue growth. What to Look for in a Business Mentor So what makes a business mentor right for you and your business? Ideally they should have experience within the industry that you are working. As an iGaming specialist mentor, my years of experience working across a breadth and depth of verticals in this sector has given me the knowledge to quickly guide affiliates and affiliate managers towards the tools, techniques and


WINTER 2017

tactics I’ve taken years to perfect. Having sector specific expertise and contacts that can be shared helps to fast track challenges from problems into opportunities. You should also find a mentor that you have a good personal connection with. Working chemistry is just as important as tapping into knowledge share - so make sure that your mentor really understands your business and the competitive environment you are working in and that you feel comfortable and get uplifted after being in their company even for a short while. Personality clashes happen easily, but business chemistry is vital if you are going to work together to make your business grow. Having an in-depth understanding of the sector, business challenges, and how the partners you work with operate, makes all the difference when overcoming challenging situations

that you may be facing. How to make the most of your Mentor The first and most important step to getting the best out of your chosen business mentor is to be one hundred percent honest. They can’t help you or assess where your company is going if you don’t give them the full story. Your time with a mentor is considered as no judgement time, in which you can speak freely about your business , programme and the challenges you are facing to grow. While they may hold you accountable to homework tasks or implementing innovative new ideas, they’re not there to judge you, your performance, or make the decisions needed to grow your business. They are there to help you look at your business objectively , find ways to maximise your resources and help you to grow your revenue. Preparing for your mentoring session

is key. Come prepared and have an agenda - you will then be able to get more from this one on one time too as you can brainstorm any ideas that you want to chat through with them efficiently and not get sidetracked from your goals. Some mentors will want to stick to set times to meet in person, whereas others will happily communicate electronically whenever needed. Find out which your mentor prefers and decide if that will also work for you. The objective of having a mentor - is to overcome hurdles with an experienced business person at your side who can guide or point out pitfalls in a non judgemental setting. The more information you share, and the more time you spend together working through and talking around these challenges the better the result. The stats behind mentoring and why it really works

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By Lee-Ann Johnstone

WINTER 2017

When you work with a business mentor,

out purely because they’re not certain

speaking, mentors give you an added

you can see instant results almost over-

of which changes are coming into force

advantage. The advantages of working

night. Not only do you feel less stressed

and what they should be doing about

with an experienced mentor become

as you share the challenges you face,

them. This type of planning and reactive

much more apparent when you look at

but with a tangible plan in place, and

strategy can feel like a lot of noise, es-

the numbers.

someone to hold you accountable to

pecially when you can only speculate as

deliver it, you can visualise where your

to what the end result will be. A mentor

business can be in the next month,

can steady the ship and point out which

within their first five years, with 30%

quarter or year. Strategic planning,

regulatory changes and restrictions will

failing in the first 2 years. These are

helps you to navigate a clear direction

have the most impact on what you do,

tough stats to overcome.

for your business and understand which

taking most of the second guessing out

50% of all businesses will fail

elements you should be

By comparison, busi-

prioritising first. This kind

nesses that seek the help

of insight means you can

and advice of a mentor have

make clearer and more

a success rate of 70% over 5

profitable decisions.

years. It simply makes sense to give your business this

As an affiliate, your time

added advantage, especially

may often be taken up by

in the current economic cli-

negotiating deals, traffic

mate.

reports and all sorts of Make 2018 your best Year

other operational procedures. This can mean that when it comes to growth

Each year, we look back on

strategy, you’re not re-

past trials, tribulations and

ally sure which brands

the bottom line in business.

to emphasise or which

If you’re finding that you’re

portals are the most ef-

anticipating the same lack-

fective. Working with a mentor can help

of the equation.

you take time away from every day op-

lustre results each year, then why not change things up in 2018 with the help

erations and work on the business as a

We’re also seeing the opportunities for

of an experienced business mentor.

whole. Many mid to high level affiliates

growth becoming a lot smaller within

Nothing ventured, nothing gained – and

have grown their businesses seemingly

the affiliate market, as super affiliates

you could really realise a lot of success

overnight learning the business skills

make more acquisitions. This could

with an experienced business mentor

they need to succeed on the way. Do-

make relevant opportunities feel scarce

on your side.

ing one thing well will only get you so

for those that want to grow their exist-

far, before you hit a ceiling and require

ing businesses. A mentor will help you

It’s safe to say that the affiliate mar-

strategic input to ensure your business

assess opportunities and even look at

keting sector won’t be getting any less

grows. Having access to an experienced

existing ones in a new way.

competitive in the future and with a

mentor means you can effectively ac-

bevy of regulatory changes having an

cess an experienced second set of eyes

If you compare yourself to the most suc-

experienced mentor to talk to will only

and ears before making costly decisions

cessful affiliates or affiliate programmes

become more valuable. Finding the

for business growth.

out there, they’ll likely have two main

right mentor is an essential step on the

advantages: more expertise and a larger

way to success , the numbers relating to

network of useful contacts or bigger

success using this method of support

budgets. Working with a mentor gives

shows it’s clear that by working with a

It’s only getting more difficult for those

you access to experience and contacts

mentor you’ll almost certainly be able

of us in the iGaming sphere, as regula-

that you wouldn’t otherwise have on

to bootstrap your affiliate business.

tory bodies are coming down hard in

your side. Introductions to the right

a bid to control the content which is

people and a nudge in the right direc-

** Mentoring stats taken from: https://

displayed to consumers. Oftentimes, af-

tion can both be provided by a men-

www.sba.gov/blogs/why-mentor-key-

filiates or affiliate managers get caught

tor to uplift your business. Statistically

small-business-growth-and-survival-0

The Importance of Planning

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TAILORED CLOUD, CONNECTIVITY, AND COLOCATION SOLUTIONS. www.datacenter.eu


addedvalue.lu

GAMING NEWS

WINTER 2017

Sky Bet Boss Warns Against POC Tax increase

S

ky Bet which is majority owned by CVC Capital Partners has asked the UK Chancellor to not raise the point of consumption (POC) tax at the next Budget or it could harm the companies investment plan for the UK. Richard Flint the Chief Executive of Sky Bet the online gaming operator said it was creating another 200 jobs in its Yorkshire Headquarters this year in addition to the current 1,300 strong workforce. But any further plans on job creating and investment could be put at risk warns Flint if the Chancellor looks at raising more money from the gambling industry by raising the

POC Tax. Flint said the company had written to the Chancellor on this matter and although no mention of a raise has been announced the gambling industry seems to be an easy target at present. “We are prepared to have the penalty [of higher taxes] versus being based offshore but it could become unsustainable if taxes are increased too much,” he said. Sky Bet says Flint paid £153 million in taxes this year which represents 30% of the companies revenues, paying VAT on the companies marketing channels is not something offshore operators pay for and feels another rise in POC tax could stifle investment further in the UK by Sky Bet.

Crown Resorts considers selling its sportsbetting business Crown Resort the Australian casino operator which also has a 62% stake in online sports betting company CrownBet has stated that they are reviewing the situation of its stake in the business in relation to its investment. Following recent local media speculation the operator made it clear that it is potentially looking at offloading the remaining stake in CrownBet. It also stated in a press release that it is in early talks with William Hill but not as a merger but a sale of Crown Resorts assets in CrownBet. The move by Crown Resorts to move away from the online gambling sector is seen because of the future merger of its two major rivals in Australia, Tabcorp and Tatts which was recently given the green light to proceed from the Australian Competition Tribunal that the merger would not adversely affect the country’s wagering sector. Crown had argued that the merger would damage their business and this stance has now seen to prompt the review of CrownBet. According to analyst’s CrownBet is the second largest online sportsbetting company behind what will be the merger of Tabcorp and Tatts with around 10% of the Australian market share.

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GAMING NEWS

WINTER 2017

Belgium’s Gambling Industry Proposed to be Optimized by the Government

G

ambling in Belgium dates back to 1999, a year when the country’s government legalized a range of games of chance by enacting the Betting and Gaming Act. This paved the way for a new industry to emerge and benefit from people’s high degree of interest. The industry contributed towards the revenue in the form of taxes on games operating in venues across Belgium. Besides, the new industry opened the doors for foreign companies to enter the market and explore various opportunities. Overall, the regulations have been highly favorable for the industry, which is currently experiencing good rates after improvements were introduced. Now the country’s government is proposing measures that are expected to change the industry’s regulations in a significant way. Transformation of online advertising Recently, Belgium’s government

announced that it would change the regulations and conduct of online advertising. This decision is going to affect online gambling affiliates directly since the Parliamentary Chamber of Representatives and the authorities are proposing to ban all types of gambling promotion during live sports broadcasts. The fivepoint mandate is going to limit the promotion of gambling activities and betting when live events are broadcasted on television. The new regulation will also restrict licensed gambling operators to promote their products only through email newsletters and proprietary websites. Raising online gambling’s minimum age About a year ago, Belgium’s finance ministry decided to tax various gambling services under VAT laws. The Christian Democratic and Flemish Party proposed a bill that is expected to raise the minimum age for online gambling from 18 years to 21 years. The aim is to transform

the online gambling industry and ensure that the participants decide more considerably, without being influenced by wrong reasons. As online gambling can prove highly addictive for young people, the government wants to step up measures to prevent them from falling prey to it. The government’s move to optimize Belgium’s flourishing gambling industry seems very logical, given the social concerns surrounding the activity. As the number of underage players hiked in the recent years, these measures look favorable to the country’s bigger objective of making online gambling socially healthy. The country is toiling to improve the state of affairs when it comes to gambling activities. It hopes to create stricter regulations that will benefit the community and the government. But it is still too early for drawing conclusions about the effectiveness of these measures.

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Loan Sharks……. better beware Jaws! By Teresa Tunstall

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s money gets tighter, interest rates rise higher and credit cards are maxed up to the hilt…it makes money too tight to mention! It is at a time like this that Loan Sharks sharpen their teeth, ready to take on those who can’t access money in any other way except through these illegal money lenders. I was asked by local radio to share an interview on problem gambling with three members from the Chinese community. I love radio interviews you can dress-up in your Bunny outfit, dye your hair green and nobody knows! However, we did none of it; instead we all went off for coffee to share our tales and experiences. That was when our story telling began. The most interesting yet frightening came from one of those members who worked in the Care side for Chinese Community. He recounted the story he’d heard of a private game within their commu-

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nity where the players by speaking in their own tongue were at ease and felt safe. One player ran out of money and desperately needed to double his funds on .his cards him to continue.

father to get on his knees in front of him; he instantly obeyed. Fearing the worst he pleaded and begged for time to repay the debt, though both knew he never could.

Almost instantly someone tapped him on his shoulder offering him the hard cash to double up and win back his money. He lost and was devastated when he realised just how much he’d borrowed to continue chasing his money.

‘Big Boss,’ turned to the 10 year old and told him never to forget seeing his father like this as a result of gambling. “This time only” he said “I am going to dismiss the debt your father owes. However, if ever I see him in a gambling den again I will break his knee caps!” The father cried out that he would never gamble again which ‘ Boss’ ignored and still looking at the son told him to take his father home and tell his mother, family and everyone exactly what happened. This was a cold lesson illustrating the consequences of excessive gambling and the debt that ensues.

Soon in the cold light of day his debt was called in by the money lender gang. Terrified, penniless and fearsome of the outcome, he arranged to meet them and took with him his 10 year old son. The ‘Big Boss,’ angrily and unsympathetically listened to his story of gambling losses which, of course, he’d heard many times before. He glanced at the 10 year old who tearfully was gazing at his Dad being forcefully manhandled. The Boss ordered the

At this point I should mention that just about every nationality while working abroad often gravitate to their own community….birds of a feather flock together so-to-speak. In


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the last few weeks I have attended two conferences on the same subject, money and Financial Capability Strategy for the UK. Apparently there are, they, say 8 million people in the UK in serious debt; one charity said that 30% of calls mentioned gambling. It seems there is little or no financial education in schools which is where the key seems to lay. Without educating children at school level, by the time they hit adulthood the damage is done. Worth pointing out are some of those who attended one of the conferences were Government Cabinet Office, Department of Works & Pensions, Financial Conduct Authority, Lloyds, Nat West and Royal Bank of Scotland and University of

Birmingham to name but a few. Finally, a brief but excellent presentation from TV’s Money Programme, Martin Lewis, told us in no uncertain terms that unless we do something soon UK’s debt level will have a serious knock on effect to all of us in some way or another. Also, he is personally financing the printing of 1000 school books for children to learn how to control their finances. What an excellent man! I’d like to finish on the subject of electronic currency or crypto-currencies; all 35 of them. Some are platforms and another one, PotCoin, does just as the label says, Pot! It doesn’t help when people like singer Bjork invites

you to pay by BitCoin for her new record album having teamed up with four types of digital currencies… you can take you your choice. These currencies are Virtual, meaning you never feel real cash in your hand and as a consequence there exists a dark side. For example the troubles in Spain - when Catalan looked for independence- were worsened by eastern European masters encouraging them to create a Blockchain currency, a means of stifling and become. untouchable by the Madrid Government. Many Online gambling companies accept electronic currency from their player’s. The Gambling Commission has already issued a guidance paper

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Teresa Tunstall article

for Operators and Users, to ensure that any Operator using electronic currency is UK Licensed thereby protecting players. What could come in the near future is the narrowing of relationship between players and banks meaning the number of banks could diminish if Virtual money becomes key. Whatever the future it’s recognised that money laundering includes electronic currency which is easier to hide and is the currency of choice used in illicit internet-based transactions. It is difficult for law enforcement agencies to seize due to its encrypted nature hidden except to the villains of

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the Virtual world we choose to live in. To close: nurses, social workers and the police are now being trained to identify victims of human trafficking and modern slavery. There can be few worse crimes than those akin to slavery; something we thought had finished in the 1800’s in Queen Victoria’s reign or before. Front line staff from all walks of life particularly casino staff, have already received training to recognise clues. I was fortunate enough to sit through one of these training classes and was shocked at how obvious some pointers are, yet we miss or don’t recognise them.

Picture the scene at a casino where customers are playing the tables. Frequently left standing behind them for long periods is a female who possibly speaks no English, looking pale, tired, and lost. She is never invited to sit down beside the players as she is not seen as being equal…surely an indication of trafficking or modern day slavery.

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GAMING NEWS

WINTER 2017

Japanese Firm Mulls Over Redevelopment of Casino Resort in Hokkaido

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privately owned tour operator in Japan, Kamori Kanko Co Ltd, along with the property developer NISADE or Niseko Alpine Developments Co Ltd, recently unveiled their plans to collaborate and enter into a Japanese Partnership for the purpose of developing a leisure resort located in Hokkaido. The companies have decided to offer a whopping US$200 million as an initial funding for the revival of the resort. As revealed by the NISADE chairmen, Jonathan Martin in a press release by the companies, they plan to create a strong platform for developing one of the first of its kind integrated casino resorts in the whole of Japan. According to the report, the leisure resort in question, the Rusutsu Resort is currently owned by the Kamori Kanko Co Ltd. The Kamori Kanko president, Kimihito Kamori further added that

the company fully owns the Rusutsu Resort property, including the resort premises, the theme park, the golf courses and the ski lifts as well. The report further revealed that the initial funding worth US$200 million will support the first phase of development and be used for the establishment of luxury amenities including spa facilities, hot springs as well as a luxury hotel named The Vale Rusutsu. The subsequent phases will comprise of the development of other hotel facilities including a new entertainment venue and shopping mall worth an estimated US$500 million. As of now, the Japanese government is having a serious discussion over the legalization of the casino and gambling industry in the country. That being said, the IR or Integrated Resort Implementation Bill is a fresh

piece of legislation that has been frequently discussed in the recent times and is likely to be taken up as a major agenda for discussion at the next regular session of the parliament in 2018. In addition to this, a new piece of legislation dealing with the issue of problem gambling has already been enforced for the purpose of strengthening the country’s casino and gambling industry. As per the industry reports, the government of Japan is likely to issue a massive number of casino licenses to the large-scale facilities in the initial phase, with special regional licenses to islands such as Hokkaido. A northern island in Japan, Hokkaido is a strong contender for the regional licensing given the fact that it is a hotspot for the Alpine Sports tourism and also hosted the Winter Olympics in the past.

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The beginning of the end of the Great British betting boom By Christina Thakor-Rankin

F

or the UK betting and gambling sector, Halloween turned out to be more trick than treat, and then some, as Tracy Crouch, the Parliamentary Under Secretary of State at the Department for Digital, Culture, Media and Sport, formally launched the Department of Culture, Media and Sport’s consultation paper on ‘Changes to Gaming Machines and Social Responsibility Measures’. The consultation published on 31st October 2017 is intended to do exactly as it says and contains proposals which if implemented could have far-reaching long-term implications. Whilst the discussion regarding gaming machines and in the form of the long-running debate around FOBTs (Fixed Odds Betting Terminals) in betting shops comes as no surprise, what is clear is that the full scope of the government’s triennial review goes far beyond just the FOBTs and betting shops, encompassing the whole of the UK betting and gambling sector, across all products and all channels.

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As the description of the consultation on the government website indicates, the proposals cover: • Maximum stakes and prizes for all categories of gaming machines permitted under the Gambling Act 2005; and • Social responsibility measures for the industry as a whole to minimise the risk of gambling-related harm, including on gambling advertising, online gambling, gaming machines and research, education and treatment (RET). The full details can be found here https://www.gov.uk/government/ consultations/consultation-onproposals-for-changes-to-gamingmachines-and-social-responsibility-measures. The consultation document stresses that the intention is to find the optimal balance ‘between a sustainable sector which contributes to the economy whilst ensuring that the sector is doing all it can to protect customers and communities’ and those considered to be more vulnerable, economically or

otherwise. Unfortunately, as experience has shown time and again, revenue and risk are never happy bed-fellows and the application of one will almost always be to the dilution or detriment of the other. In proposing the changes that it does, the document is effectively looking to reverse or roll-back some of the legislative and regulatory changes made by previous governments since September 2007 when the Gambling Act (2005) came into force. The aim of the Act was to deregulate the sector in a bid to boost earnings and revenue by opening the way for amongst other things: betting shops to install FOBTs; betting and gambling products to be freely and openly advertised and marketed (including radio, TV and brand sponsorship deals); a reduction or removal of the powers of local authorities to manage the number of gambling premises in their locale; and regulation which supports one of the most open and permissive online gambling markets in the world. These have all been key contribu-


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Jeff Sessions

-tory factors in ensuring the UK’s posi-

negative public perception of the in-

tion as one of the most successful and

dustry and a call for government to act.

profitable betting and gambling markets

dress risks as they have been identified. And not for a second is anyone sug-

in the world, and attested to by the num-

And it is entirely right and proper that

gesting that this work is complete.

ber of operators and affiliates posting re-

in the face of such public concerns,

The reverse in fact. Constantly devel-

cord Q3 performance figures, and which

the government should take a position

oping technology, new products and

saw bet365 revenues break through

which seeks to investigate and then ad-

changes in customer behaviour, mean

the £2 billion barrier for the first time.

dress the negative impacts of gambling,

that managing and mitigating risk is

ensuring that it is conducted in a manner

and will continue to be a non-nego-

which is ethical and socially responsible.

tiable aspect of operating in the gam-

Over the last few years a combination of heart-rending personal stories from

bling industry anywhere in the world.

those who have fallen victim to gam-

This is especially so given that the allow-

bling addiction, supported by statistics,

ances made by previous governments

The gambling sector’s big concern is not

lobbyists and campaign groups drawing

were done so without full understand-

protecting players, it is that policy will be

parallels with betting shops and drug

ing of the future risks, whether that be

made based upon emotion and excep-

dealers, skin-betting scandals linked

the FOBTs, advertising or the ubiquity of

tional cases, rather than hard evidence.

to the targeting of young people and

online. Over time and experience how-

children, reports of terrorists visiting

ever the shape and form of the dangers

The review into the FOBTs earlier in the

casinos and disclosures and comments

of some forms of gambling have become

year was somewhat discredited when

from public figures who have an opin-

clearer, and both regulator and industry

it transpired that one of the main con-

ion or see gambling as an easy political

have made iterative changes in their

tributors represented ‘interests’ hostile

win, have all contributed to the growing

social responsibility practices to ad-

to the betting shops, and who would be

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WINTER 2017

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WINTER 2017

By Christina Thakor-Rankin

41

the immediate commercial beneficiar-

which have highlighted serious sys-

measures are linked to some of the big-

ies of any restriction to FOBTs in the

temic failures in the social responsibil-

gest names in the industry, questions

betting shops.

ity processes and procedures of some

and scepticism is inevitable.

of the biggest names in the industry, Whilst it is the case that statistics can

including bet365, Paddy Power Betfair,

The industry and other interested par-

be selective, and lobbyists, campaign-

Bet Fred, Rank, 888 and most recently

ties now have a window of 12 weeks in

ers or those who simply dislike the in-

Gala Interactive (pat of the Ladbrokes

which to respond to the proposals, but

dustry or what it stands for can be prone

Coral Group).

if the industry is looking to the govern-

to embellishment, exaggeration and the

ment to make decisions based upon

selective use of information to best

These incidents whether they made

evidence it has a lot of work to do, and

promote their cause, the fact remains

the evening news or not will certainly

it may already be too late, signalling the

that gambling has resulted in significant

have rung very loud alarm bells with

end of 10 years of the Great British bet-

and unimaginable harm - causing some

the regulator and raised questions as to

ting boom.

to turn to crime to fund their addiction,

whether there is a real disconnect be-

and in the saddest and worst cases, tak-

tween what the industry preaches pub-

ing their own life.

licly, and what it practices privately. ABOUT Christina Thakor-Rankin:

And this is where the industry starts to

Based upon the information available

run the risk of become its own worst en-

within the public statements issued by

Christina is Principal Consultant at

emy.

the Gambling Commission, in the case

1710 Gaming Ltd, a specialist betting

of Paddy Power, that the concerns of

and gaming consultancy, delivering a

Whilst the sector has provided evi-

shop staff relating to a customer get-

range of services including licensing

dence as to what the impact of a reduc-

ting into serious financial and personal

and compliance (incl. regulation, money

tion in a stake on FOBTs would have

difficulties due to an escalating gam-

laundering and social responsibility),

on betting shops, jobs and revenue,

bling addiction were acted upon as they

business start-up, training and strategic

and has continued to take the posi-

should have been by senior staff, in the

re-engineering, project management,

tion as elucidated by Breon Corcoran,

case of Gala Interactive that ‘a failure to

research, business analysis and devel-

departing CEO of Paddy Power Bet-

oversee problem gambling behaviour’

opment, to start-ups and established

fair that the industry is ‘not aware of

resulted in two players stealing a total

multi-national operators and providers,

any evidence which links stake size to

of £1.3 million to fund their gambling

gambling regulators, law enforcement

problem gambling’. In failing to posi-

addiction, and this coming on the back

and government agencies, media, and

tively identify what the causes might

of an earlier commitment to the regula-

specialist interest groups and associa-

be, the industry not only fails to present

tor to address failures and deficiencies

tions within the sector, in both estab-

a case for why stakes should not be

identified previously in the same area,

lished and emerging markets across the

reduced it invites further scrutiny into

and in the case of 888 a failure to im-

world.

the question, if not stakes then what?

plement something as basic as effective customer self-exclusion resulting in

But this is not the sector’s biggest con-

around 8,000 customer accounts con-

cern. The decision to reduce bet stakes

tinuing to be accessible despite those

on FOBTS is a foregone conclusion – the

customers requesting a ban. The seri-

only open point being whether the re-

ousness of this failing was reflected in

duction will see the stake reduced to

the record fine of just under £8 million

£50 or £2.

imposed on 888.

The sectors biggest concern and one

It seems inconceivable that companies

which seriously undermines the in-

of this stature would deliberately seek

dustry’s claims that it does take social

to hood-wink the regulator, or play fast

responsibility, licence obligations and

and loose with their reputation by not

its duty of care to customers seriously,

implementing the right policies and

are the investigations and public state-

procedures, but when some of the worst

ments from the Gambling Commission

failings in social responsibility meas-

www.1710gaming.com

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GAMING NEWS

WINTER 2017

MGM Plans to Focus on Strip Remodels Rather Than New US Casinos

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s reported by the local media, the CEO of MGM Resorts International recently announced that the company is no longer going to spend its investment dollars on building new casinos across the United States. Instead, the company plans to take its cue from the Monte Carlo remodel and invest the money on revamping its existing properties along the Strip. Jim Murren, the CEO at MGM resorts revealed in a press conference that the company is already done with building new casino resorts around the US, although the firm might establish a new integrated casino resort in Japan. Talking of the latest casino establishments developed by MGM, Murren said that their newest offering in Macau, the Cotai is slated to be inaugurated sometime in January next year. In addition to this, the Springfield Mass casino resort that

is currently being built in the United States and slated to open in September will essentially be the company’s last new venture in the country. Murren further added that if indeed there are plans for any new largescale projects, they will essentially be developed in the region that they dominate, that is Las Vegas. The remodel and rebranding of these Las Vegas casino projects will be majorly inspired by the one carried out in Monte Carlo. Last year in June, the company had unveiled its plans to remodel Monte Carlo and also invest a staggering $450 million to develop two luxury hotels in the Park MGM building. The plans included the development of the Park which would be a luxury hotel comprising of 2700 rooms and inspired by the outdoor theme of the MGM and the 292 room hotel called

NoMad with its own set of restaurants, cafes, casino, lobby, and swimming pool. While a majority of the new establishments are already functional, the others are likely to be winded up only by 2018. Expressing his excitement over the success of their new establishments, Murren remarked that whenever the company has been involved with the development of a new project, it has always turned out be incredibly successful and has been well received by the customers. He further added that the return on their investment for the Monte Carlo remodel has been extraordinarily high and the best that they have seen in quite some time now. Speculations are ripe that one of the first properties to be remodeled by MGM would probably include its oldest, the Circus Circus.

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WINTER 2017

GAMING NEWS

Online Gambling Directors Arrested

T

wo Directors from MedialIve Limited a Malta licensed company that operates live casino gambling have been arrested in connection to an illegal multi million euro gambling racket linked in Italy. According to reports in Italy and Malta Massimiliano Fullin and Fabio Veglianetti the only directors of MedialIve and who are both Italian nationals are now in custody following months of investigations by police in Italy called Operation Doppio Jack. The investigation and arrests centre around gambling parlours in six regions in Italy that illegal gambling

online was taking place and no record of taxation was recorded. It is said the illegal activities were taking around €10 million each month. It is also said by the prosecutor in the case that the illegal gambling used the legal online gaming system Qormi Company as cover to connect into the MediaLive live casino gambling. It is believed all money wagered was taken remotely back in Malta using several different accounts. At present the Italian authorities are unable to seize the accounts of MediaLive but are now going through the legal process to do this to ascertain the

amounts gambled. Currently the Maltese Gambling Authority is awaiting evidence in relation to MediaLive before allowing access to its accounts and servers to help Italian prosecutors strengthen their case. The Malteses Gambling Authority said to reporters, “It is yet unclear whether there is a direct nexus between the MGA licence and the accusations being made by the Italian authorities against this company, given their [the company’s] global links with other gaming jurisdictions.”

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GAMING NEWS

WINTER 2017

Stars Group looking at M&A with new funding of $2.5 billion

T

he Stars Group who owns online poker giant PokerStars are looking to raise some $2.5 billion from new investors to go on a possible Merger and Acquisition (M&A) hunt to help expand and strengthen the company. Rafael Ashkenazi the Chief Executive of The Stars Group said in an interview recently that the company were out there looking for investors to support the companies ambition on M&A. Ashkenazi became the boss of the company last year and oversaw the change of name from Amaya which had links to former chief David Baazov who goes on trial later this month on charges of insider trading.

However with a new Chief Executive and a new name that better reflects the companies core business Ashkenazi said that his company is looking for maybe one large company or three to maximum five smaller companies. No targets were of course named in the interview, with William Hill the last big target for The Stars Group turning down their advances, could the company go again for William Hill or maybe even Ladbrokes Coral who are said to be a target for GVC? Although The Stars Group carries some long term debt from the acquisition of Amaya of $2.5 billion the company does have cash reserves of $255 million and is reducing the long

term debt with a payment last year of $515 million. One gambling consultant told the iGaming Post if it is a large target for The Stars Group then it is either Ladbrokes Coral or William Hill. In other related news PokerStars say they are looking to partner up in Pennsylvania with a land based operator in order to offer online poker in the state next year when it goes live. There are 12 casinos in Pennsylvania and with PokerStars the biggest poker brand the company will likely not have too many problems finding a partner.

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GAMING NEWS

WINTER 2017

How UK Online Gambling Maybe be Affected by the New Gambling Laws in the US

H

ow is the UK Gambling market today?

Sports betting and online casinos sites are becoming a phenomenon in the UK. The country has always believed in taking a relaxed approach towards gambling. The favorable gambling laws have drawn a number of players to casinos and sports betting hubs, resulting in the creation of an accountable and open gaming market that’s easier to access. This ethos of the country has made it a major hub of online casinos. There are a number of television ads and sponsorship arrangements that showcase the casinos to enter the marketplace. This has also led a number of casino operators in the online space to provide generous goodies and bonuses to new gamblers. This is certainly a good news for the gamblers in the UK. People from all across Europe join these online casinos, giving a major drive to the country’s industry. As such, a potential agreement with the USA gambling community would certainly create a win-win situation for both the countries. What’s the scenario in the US? Compared with their British counterparts, Americans share a complicated and fraught relationship with online gambling. Most of the country’s states either prohibit all types of casinos and gambling activities or become the hub for casino and gambling enthusiasts. But the landscape is certainly changing for the UK gamblers. Some US gamblers are already seen

logging on to the gambling sites based in the UK so that they get more freedom when it comes to gambling rules. The new initiative to legalize gambling in the state of New Jersey is likely to increase it even more significantly. Ever since online gambling was allowed four years ago, the revenue of the state has exceeded $200 million a year. New Jersey is keen on strengthening connections with other regions, and there are great plans to launch player pooling in the UK market. What can the UK expect? Perhaps the answer is simple- more number of players, greater choices, and bigger prizes. Currently, there

are over two million gamblers playing online in the UK, which is about three percent of the country’s population. If nine million gamblers from New Jersey happens to join them, it will represent an increase of about ten percent in the number of players. A greater number of players indicate bigger prizes and richer game choices, which would benefit gamblers of both countries. It would also mean an increase in revenue of casinos. Last month, Pennsylvania became the fourth state to legalize online casinos. If these casinos partner with the UK market, the future is sure to be even more lucrative and exciting.

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GAMING NEWS

WINTER 2017

Gambling Tech Companies Jockeying Already Despite Sports Betting’s Illegal Status

T

he legality of gambling and sports betting has always been an intricate issue for the United States of America. The picture is always going to be vague until disagreements on what the law says get cleared up. Some of the gambling tech giants in New Jersey have already started jockeying for position, although the U.S Supreme Court hasn’t legalized sports betting in the state. NYX Gaming Group vs William Hill The lawsuit filed by NYX Gaming Group Limited throws ample light on the issue. NYX Gaming filed a suit against William Hill, a London-based company, over the acquisition of NYX by Scientific Games, a Las Vegas-based company. William Hill owns shares in NYX Gaming and is threatening to its voting rights to stop the acquisition unless certain assurances about the scope of the merged company come from Scientific Games.

NYX Gaming, in its lawsuit, terms the requests anticompetitive and “extortionate”. On the other hand, William Hill feels the requests are “perfectly reasonable”. The gambling tech companies are jockeying as the Supreme Court prepares to give its ruling on a case filed by New Jersey to legalize sports betting in the state. New Jersey is aiming at a 1992 law that criminalizes state-authorized sports betting in four American states that met a deadline to legalize it in 1991. The four states where sports betting enjoys a legal status are Montana, Delaware, Oregon, and Nevada. What’s the scramble all about? Industry players think that it is only a matter of time before sports betting opens up to the public in the state. Director of the Center for Gaming Research at the University of Nevada, David Schwartz, says that it is impor-

tant for companies to set up a position now, as operators and states will be selecting partners soon. Gaming companies have been led by promises of gambling expansion for thirty years. In the past, this meant that a larger number of states opened themselves to casino gaming. But sports betting could certainly be the final frontier for them. The acquisition of NYX Gaming by Scientific Games would make a large variety of products for casinos and lotteries. But the deal is under the threat of William Hill, who fears tough competition in the domain. The industry desires to gather market share much ahead of the Supreme Court ruling to legalize sports betting. Eilers & Krejcik Gaming LLC, in its report last month, predicted that 32 states could be offered legal sports betting in the next five years if the ruling comes in favor of the state.

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GAMING NEWS

WINTER 2017

Macau Lawmakers to Introduce Stricter Rules for Hiring of Non-Resident Casino Employees

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ccording to a recent media report, the government in Macau is contemplating a legislation revision and the introduction of stricter rules for the process of recruitment by the casino operators in the city with regard to the non-resident employees. As stated by Fernando Chui San On, the Chief Executive in Macau, the rules will be targeted especially towards the hiring of foreign workers to the senior and middle management profiles in the local casinos. Fernando further added that the government will now carry out a strict assessment of the applications submitted for the purpose of importing foreign workers on the basis of a series of factors including the current economic circumstances in the city. The aforementioned step is being taken in a bid to encourage the local casino operators, especially

the large-scale enterprises to recruit more number of local citizens to the important managerial positions. That being said, the government in Macau is striving to promote the recruitment of local workers to the mid-level and senior-level management profiles in the gambling sector to a minimum of 85% by 2020. As revealed by a report published by the government in mid-2016, the mid-term review for the gaming industry in the city highlights the fact that the share of local Macau employees in the mid-level and senior-level management positions in the local casinos stood at 82% by the end of 2014. The discussion came up when the Chief Executive was having a question and answer session with the members of the city’s legislative assembly while addressing the

government policies for 2018. While presenting the government’s policy slated to be introduced next year, Fernando expressed his views on enhancing the oversight associated with the casino industry in the city. The Chief Executive further added that the recruitment of non-resident employees must be carried out only as a contingency measure to compensate for any local labor shortfall. He reiterated the fact that the Macau government is striving to devise policies to ensure that the non-resident workers quit the domestic labor market at the completion of their contracts and that the local residents can have more varied employment options in the industry. At the end of the second phase of the large-scale casino projects in Macau, the government will also review the prevailing ratio of foreign to local employees in the local casino industry.

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GAMING NEWS

WINTER 2017

Could William Hill Scupper the NYX/Scientific Games deal?

C

ould William Hill scupper the deal by Scientific Games to acquire NYX in a deal worth upwards of $600 million? The UK bookmaker has said in a statement it will be looking into the deal by Scientific Games as William Hill has 6.8 million shares in NYX and has several supply agreements with them that according to reports the UK bookmaker is concerned about

following the acquisition by Scientific Games. In a statement the company said, “no decision has been made at this time” and, despite reports, “refutes in the strongest terms that any anticompetitive measure have been requested or is being demanded”. “William Hill does not wish to make any further comment on those

proceedings at this time, other to confirm that it will continue to act in the best interests of its shareholders.” NYX purchased Openbet which William Hill approved of as it seemed in the best interests of the company but it seems the bookmaker has concerns over contractual agreements with NYX supply should Scientific Games acquires the company.

Australian gambling firms bracing for huge changes

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here are tough times ahead with the introduction of new point of consumption taxes and advertising rules,” says Cormac Barry, chief executive of Sportsbet, which is Australia’s largest betting company. “This is an earthquake — a seismic event for the industry.” Australia and gambling companies are bracing themselves for sweeping changes in the country including Point of Consumption taxes, reducing stakes bet on pokies (poker video machines) and a possible ban on radio and television betting

adverts during sporting events. Australia is the biggest betting nations in the western world with an annual spend of $17.7 billion and on average Australians spend $911 a year on gambling. Sportsbet which is part of Paddy Power Betfair is by far the biggest betting firm in the country with profits last year at A$175m which is about $134 million. Others such as Bet365, Ladbrokes Coral and William Hill have struggled to turn a profit and with the potential of bigger taxes and restrictions on advertis-

ing the likely hood of mergers and acquisitions is a real possibility. With calls from anti-pokie campaigners to reduce the bet to $1 similar to the call in the UK on FOBT machines to £2 this would hugely impact on that industry which generates some $1 billion a year. So times will be a changing down under for gambling firms, who will survive and who will fall only time will tell but the winds of change are coming.

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GAMING NEWS

WINTER 2017

Casino Likely in the Works for London, Canada

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oliticians in London, Ontario are set to attend a secretive meeting that will likely discuss the possibility of a casino in the city. Gateway Casinos & Entertainment plans to develop London’s first full-fledged casino that will house slots, table games, restaurants, and a hotel. The corporate services committee will be meeting early next week to preside over the matter of a lease agreement between the Western Fair Association and the City of London. Gateway, the biggest casino operator in Canada, gained control of slot operations from Western Fair in early 2017. Currently, the operator is looking to either take over the land or sign a new lease. The current lease, which sets Gateway back by $6 million/year, is set to expire in 2020. Rob Mitchell, the company’s Director of Communications, told the media

that Gateway was looking for a lease agreement that was more equitable. He added that there was also a plan to purchase the land itself. The meeting, which is being conducted behind closed doors, is allowed by the Ontario Municipal Act. The act states that municipal governments have the right to meet behind closed doors to discuss certain matters, especially ones that are financial, legal or personnel-related in nature. The first choice The Western Fair location is Gateway’s number one option, but the company is said to be considering other options as well. Mitchell stated that the company would very much like to continue at Western Fairground, but will move if necessary. However, when asked about other locations in mind, the Director of Communications refused to comment or answer, but made it clear

that it would be somewhere in London. Gateway’s property in London will be considered its signature property and representative of the brand. Expenditure Gateway estimates the expenditure to be around $140 million for the London-based casino. The company mentioned that the new venture will open up about 700 job positions. As of now, it already employs around 300 people in the city. If it manages to retain its position at the Western Fairgrounds, Gateway will have to acquire more land. As of now, the company intends to build the casino in the parking lot while continuing its slot operations. However, if this were to happen, the Annual Western Fair would have to be shifted to a new location. If all goes well, the Gateway Casino in London will open sometime in 2020.

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GAMING NEWS

WINTER 2017

Possible Investigation on New Upstate NY Casinos

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he New York officials had quite a rosy revenue predictions for the three upstate “Vegas-style” casinos in the city. To materialize the establishments, New York officials openly tried to elude the State Constitution to expand operations beyond the Native American land. However, the three casinos, which were much of an anticipation before, have fallen short of revenues during their first year of operation. The impending state’s investigation As the three casinos are failing to meet revenue estimates, state Comptroller Thomas DiNapoli is under pressure to conduct a thorough analysis of the situation. According to the USA Today’s Albany Bureau, the three casinos may end their first year of operation with approximately $220 million less than what was projected. Assemblyman Gary Pretlow, who is also a Democrat from Westchester County, expressed his concern that the new casinos in Finger Lakes, Albany area, and

Southern Tier may have to seek the assistance of the state to improve their earnings.

February and estimated $263 million in revenues. It’s about $100 million shy of projections.

An investigation into the matter is expected to determine whether the revenue decline is an indication of a grave economic problem or evidence of the rosy projections to get casino licenses. The three upscale casinos were authorized to open in 2014 and 2015. All three casinos are non-Indian, full-service casinos with table games, slots, and poker. They are licensed to operate in areas where gaming compacts with Indians are not covered. There were various bidders competing for the license. But only the bidder per region was authorized to open casinos.

Rivers Casino & Resort in Schenectady started in February and estimated $222 million in revenues, but is short of revenues by $80 million.

How are the casinos measuring up to their projections? The following figures show that the three casinos are evidently falling short of revenues: Del Lago Resort & Casino in Tyre, Seneca County started operations in

Tioga Downs, based in Nichols, after its conversion to a full-service casino in December 2016, projected $103 million but is short by $30 million. Given the state of the casinos, the New York Gaming Commission and casino operators feel that it’s too early to jump to conclusions. But economically, these casinos are certainly an advantage because they employ about 1,500 people and contribute substantially towards the state’s overall gambling revenue. Despite the shortfall of revenues, officials believe that they are moving in the right direction. But nothing much can be said unless a detailed report of the investigation comes out.

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GAMING NEWS

WINTER 2017

3rd Casino Rejected by Voters in Maine

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oters in Maine decided to prevent the construction of a 3rd casino said to be backed by an out-of-state entrepreneur. The state of Maine has been considering the idea of another casino for quite some time. Proponents of the idea justified it by stating that the new venue would help create jobs and fund education while also bringing in aid for seniors and veterans. But, the arguments were not wellreceived by the opposition, who labeled the new casino deal as being “questionable”. They also put forward the argument that the only intention behind the new casino was to benefit Shawn Scott, the outof-state entrepreneur behind the project. Opponents raised an issue with the referendum as well, claiming that it was worded in such a way that only Scott and his company would have full control of the proposed casino. Despite his efforts to convince the state and its residents, voters rejected the construction of the casino earlier this week. The response When questioned about the outcome, Scott replied by stating that he still believed in the project and its benefits, but, was accepting of things not going in his favor. Bill Hansberger, one of the project’s critics, berated Scott’s expenditure of several million dollars in hopes of

seeing the project go through. He also posted an insulting tweet suggesting that Scott crawl back under a rock. The entrepreneur had managed to finance a referendum that led to the establishment of the state’s first casino in 2003. However, he sold the casino to Penn National gaming after an investigation was launched into his

posed to provide an accurate representation of the entities funding the recent campaign for the new casino. According to Governor Paul LeP age, the plan for a new casino was solely motivated by greed. He also remarked that a state with just over a million people wouldn’t be able to support another gambling venue. He called Scott’s plan just another scam involving big money and outof-state interests.

questionable financial dealings. More controversy There was controversy surrounding the recent proposal as well. The Maine Ethics Commission’s conducted an investigation in June that led to the fining of 4 pro-casino committees. The committees were blamed for ignoring the deadline for filing disclosures that were sup-

The campaign for the new casino is said to have cost around $9 million. The campaign was run by the same consulting firm responsible for pushing Brexit. The opposing campaign was funded by the Oxford Casino, which saw the new casino as a close competitor.

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GAMING NEWS

WINTER 2017

AMLC Issues Fresh Casino Rules to Curb Money Laundering in the Philippines

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n a bid to strengthen the economy of the country and get rid of all the ‘dirty money’ that is constantly being funneled in, the AMLC or Anti Money Laundering Council in the Philippines recently issued a set of fresh casino rules targeted especially to the brick and mortar facilities in the country.

sound risk management policies and be vigilant against the inflow and outflow of illicitly obtained cash. The new legislation also requires the casino operators to ask the visiting gamblers to produce a valid identification card before the former opens an account for them or redeems their chips into cold hard cash.

The AMLC has issued a 23-page long draft for implementing rules and regulations that it had created in collaboration with the Aurora Pacific Economic Zone, the Cagayan Economic Zone Authority and the Philippine Amusement and Gaming Corp, while the Freeport has been attributed with laying out the do’s and don’ts to be followed by the casino operators across the country. To put it in simpler words, the new Implementing Rules and Regulations command the local casino operators in the country to establish

According to the new casino rules, the local operators are required to secure their customers’ personal details including name, place and date of birth, current address, permanent address, contact information, phone number, nationality, identification proof and number, name of employer, nature of work, nature of self employment or business, source of funds and so on. In addition to this, the IRR also states that in the event that an individual opens an account or makes

a casino transaction on the behalf of another individual, the casino operator is obligated to establish a record of the identity and existence of both the actual account holder and the person who has transacted on his/her behalf. The AMLC also prohibits the local casinos in the Philippines from either accepting any cash whose origin cannot be ascertained within a week or allowing any cash conversion that has not been used for the purpose of gaming. The new casino rules also require the casino operators to notify the AMLC of any covered or suspicious transactions within a period of five working days. However, if there is any transaction that is both covered as well as suspicious, it should automatically be reported as a suspicious transaction.

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GAMING NEWS

WINTER 2017

Vietnamese Locals can Finally Gamble at Local Casinos Starting December

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ccording to a new government decree quoted by the local media reports, the local residents in Vietnam will now be permitted to pursue gambling at a few selected domestic casinos starting December 1, 2017. According to the new legislation, all Vietnamese citizens above the age of 21 who have a monthly income of at least VND10 million or US$440 will now be allowed to enter casino premises and gamble there, as reported by the Vietnamese news daily Viet Nam News. In addition to this, the Ministry of Finance in Vietnam has also issued a decree according to which a few selected domestic casinos will be provided with a January Legal Diploma that will permit them to accept gambling bets from the local citizens of Vietnam as well. The Legal diploma that came into effect on March 15 earlier this year

will be applicable for a trial period of up to three years. As mentioned in the previous media reports, only those casino operators will be allowed to permit Vietnamese gamblers to place their bets that have a total capital investment of a minimum amount of US$2 billion with both gaming as well as non-gaming facilities featured on the resort property. In addition to that, the local gamblers who wish to play at these selected casino resorts will be required to submit either VND 1 million for procuring a 24-hour casino pass or VND 25 million for a month-long version of it. The media report also stated that no such casino resorts have been selected so far for the scheme by the government authorities in Vietnam.

ther open books or incorporate the electronic card system to monitor the people who are allowed to enter and gamble on the casino premises. In addition to that, the new casino rule also requires the casino operators to hold the identity information of the local gamblers for a period of at least five years. The media outlet in the country, VietnamNet Bridge, also reported that the Vietnamese gamblers willing to try their luck at the local casinos will be required to produce a proof of their income to establish their eligibility under the scheme. The report further stated that the family members of the local gamblers had a legal right to lodge an official request for barring the individual from entering or gambling at the casino premises.

The new casino decree also requires the casino resort operators to ei-

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