February 2016 Infinity Gaming Magazine

InfinityGaming www.gaming-awards.com | ISSUE FEBRUARY 2016

FRONT COVER - APP AWARDS EXCLUSIVE INTERVIEW - DAG HASCAL

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10 TOMORROWS WORLD Christina Thakor-Rankin

08 APP AWARDS Are back and categories announced

38 58 DAG HASCAL INTERVIEW Crocs Resort Costa Rica

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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FEBRUARY 2016

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

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

23 GENTING BOSS DEPARTS Peter Brooks leaves UK role

27 LADBROKES FOR TABCORP

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Bookmaker wanted Ausiie firm

37 GREECE NEW LICENSING Online gaming reform

APPS ARE GREAT Paul Swaddle

41 AMAYA APPEAL KENTUCKY Ruling

THE PLEASURE IS TO PLAY Liz Karter

42 UPDATE ON IRELAND Gaming Legislation

51 PROFESSOR NELSON ROSE What Should Daily Fantasy Sports Do Now?

+ ALL THE LATEST NEWS & Opinions

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FEBRUARY 2016

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

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Lana Thompson - Editor

Welcome to the February edition of the Infinity Gaming Magazine and what an exciting part of the year this is.

Welcome to the latest edition of Infin-

Finally we have a great interview with

ity Gaming Magazine and we are now in

Dag Hascal from Crocs Casino in Costa

the midst of the busiest part of the year

Rica, of course not just the articles but

for many with exhibitions and events,

all the latest news from around the

with the most important happening on

world.

the 1st February at the stunning Savoy Hotel, the 9th International Gaming

Enjoy the magazine.

Awards is just around the corner and time to celebrate a very competitive

So, “To Infinity and Beyond!”

year.

Regards, The event was sold out many weeks ago and tickets are now like gold dust,

Lana

so if you have one hold on to it you are one of a very lucky group.

In the magazine we have all our superb writers covering the world of gaming with Christina Thakor-Rankin looking into the future, Professor Nelson Rose talking about Fantasy Sports, Liz Karter again with a super gambling responsible article and JJ Woods discussing the current legal situation in Ireland.

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The Editor

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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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FEBRUARY 2016

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

Liz Karter – Psychotherapist specializing in women and problem gambling Liz Karter is a specialist in gambling and women and has worked as a therapist in gambling addiction since 2001. Liz is also author of the book “Women and Problem Gambling” published in March 2013.

In January 2010 having worked with all leading UK problem gambling treatment agencies, and having successfully established the first UK groups for women with gambling addiction, Liz launched Level Ground Therapy. A treatment service in the City of London, Level Ground specialises in meeting the individual needs of women with gambling addiction.

Throughout her career Liz has been regularly consulted by the media regarding her specialisation and has made frequent national TV and radio broadcasts including This Morning, Radio 4 You and Yours and Women’s Hour and given numerous national newspaper and magazine interviews.

Paul Swaddle - CEO Pocket App A self-confessed ‘gadget geek, Paul Swaddle has been working at the leading edge of mobile technology for the past 15 years. He co-founded Pocket App in 2011 to bring the creative and technical development elements of mobile technology together under one roof.

This unique approach continues to differentiate Pocket App in today’s increasingly competitive landscape.

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Working across a range of communications disciplines such as acquisition, loyalty, retention and customer development, Paul understands the importance of a strategic and coordinated marketing approach, particularly between on and off-line communications. In the past decade he has enabled brands as diverse as Kellogg’s Fruit Winders, Barclays and Loaded magazine to get the best out of mobile.

FEBRUARY 2016

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FEBRUARY 2016

Tomorrow’s World

By Christina Thakor-Rankin

I

f last year was about talking about technology, and its pivotal role in ensuring future market success, then this year has to be about understanding how we go about making that happen.

We ended 2015, (and leaving aside the potential red-herring that is ‘omni-channel’, in favour of its more practical and pragmatic cousin ‘multi-channel) with a number of landmark developments showing how seriously the industry is taking this, as well as some early examples of its impact within the land based sector.

The launch of William Hill technology R &D incubator unit WHLabs’ new accelerator programme, which saw the inaugural prize go to BetGame and their take on e-sports, to Coral’s ‘Connect’ concept continuing to show its rivals a clean pair of heels in the race for multi-channel in the UK. Elsewhere, Novomatic introduced the concept of continuous player experience to the land-based casino sector with the launch of its ground-breaking ‘Remote Play’ ‘machine to tablet’ gaming technology, and embrace biometric technology in a way that could

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revolutionise the way in which land based operators manage the whole customer experience in the future. For those not familiar with it, very simply, Novomatic uses fingerprint scanners to not only manage access and entry, but also employs the customer’s unique identifier as a virtual ticket or token to transfer cash and credits and activate game play – giving a complete log of the customer visit. The long-term operational cost savings and enhanced opportunities of customer profiling this potentially brings both within a single and even more so across a multi-channel brand should not be under-estimated.

This is all very exciting and forward thinking. It is however, only the tip of the technology iceberg.

Whilst land has been a very useful sandbox for multi-channel and biometric technologies, the real potential and power of both of these concepts has yet to be unleashed.

After several false starts, finally, 2016 looks set to be the breakthrough year for ‘Virtual Reality’ (VR). And this is not the old-school virtual reality of 3D graphics, or avatars living in a parallel com-

puter game universe – this is ‘proper grown-up’ virtual reality.

Technology that will take us quite literally from the world that we can see, hear, touch and feel, into another world that we can also see, hear, touch and feel – the only difference is that the first is physical reality, the second a computer generated virtual reality.

The closest example of what this new experience will be like and which most of us can relate to, is a dream that is so intense and so vivid, we are convinced it actually happened.

This is all very exciting and forward thinking.

It is however, only the tip of the technology iceberg. Whilst land has been a very useful sandbox for multichannel and biometric technologies

FEBRUARY 2016

Imagine being able to leave your im-

own home. Put on a headset, and sud-

fers a surprisingly impressive cardboard

mediate surroundings and lose yourself

denly they are in the lobby of the casino

VR viewer starting from around £15

in a completely different world at the

they most frequently visit – the exact

and which will readers to see for them-

flick of a switch. That is what the new

same layout, the exact same games and

selves what all the fuss is about: htt-

virtual reality promises. A fully immer-

the exact same experience from visit-

ps://www.google.com/get/cardboard/.

sive sensory experience that lets you

ing the cashier to playing the games by

explore other places, feel like you are

quite literally using hand gestures to hit

Turning to the world of biometrics and

at a concert, turn an exercise session on

‘spin’(– think Wii but with just hands).

one of the more interesting develop-

a tread-mill into a cross country run, or

ments - a concept and technology vari-

actually enter a video game using just

Add in voice technology (think voice ac-

ously referred to as ‘emotion detection’,

a smartphone, a headset and a pair of

tivated search on Google, Cortana, Siri,

‘sentiment analysis’ and ‘neuro-market-

headphones.

and those annoying telephone re-direc-

ing’ is already used in a number of sec-

tion applications which require you to

tors.

For the betting and gaming sector, to-

speak your request instead of pressing

day’s virtual reality could completely

a number for a service) and the applica-

In simple terms, this is next genera-

revolutionise the customer experience.

tion would enable the player to ‘speak’

tion facial recognition technology used

Imagine a future where bets, rewards

to the cashier and other members of

to track, analyse and gauge the user’s

and promotions are not limited to bo-

staff.

emotional reaction to an event or trig-

nuses, prizes and streaming but are

ger. Technology which started off by

supplemented with the prospect of

For those who think this sounds a lit-

mapping and recognising physical fea-

pitch side seats to any number of dif-

tle too fanciful, please note that con-

tures, has now developed into some-

ferent events, using technology which

cept of virtual reality is no longer the

thing which is able to decipher and

will make the player feel like they are

preserve of the little known company

identify expressions and ‘recognise’

actually there?

Oculus Rift – the companies push-

emotions such as sadness, joy, surprise,

ing it hardest are Samsung, Microsoft,

disgust, distress, anger – in fact the very

Even more exciting, virtual reality has

HTC, Sony and Google – virtual reality

latest software claims to be able to tell

the potential to take the whole multi-

is about to go main-stream. And whilst

if a person is ‘smiling, but not with their

channel experience and completely flip

promoting the wares of one supplier

eyes’.

it on its head by allowing players to ‘vis-

over another is not normally advisable,

it’ a casino (or bingo hall, or racetrack, or

for those keen to understand the huge

even a bookies) from the comfort of their

potential of virtual reality, Google of-

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FEBRUARY 2016

Tomorrows world The software requires special cameras

play less, or even walk away completely.

lawyers trying out their final summing

that are capable seeing in multiple di-

If it can do this, then it should also be

up speech, to gauge the emotional im-

mensions similar to ‘a human eye’, and

able to present them with a message

pact and reactions of their target audi-

which can work with other software

that is most likely to resonate with their

ence. And rather like virtual reality, to

such as facial analysis and

take any new tech-

hand tracking, to support

nology from concept

a more intuitive and natu-

and niche market to

ral interactive experience.

mainstream requires a big technology brand

Just think how this tech-

to get behind it – and

nology could be used in

they don’t come much

the world of gaming. Im-

bigger than Intel.

agine a game that could monitor, track and as-

The

sess a player’s emotions,

alSense camera can

moods and reactions so

detect

well, that over time, it will

ment and has the 3D

be able to successfully

capability to support

predict a player’s reaction

facial analytics, and is

to different outcomes and

already available in the

pay-lines, and understand

latest

what might make that

laptops. If you bought

player play for longer or

a new Acer, ASUS, Lev-

higher stakes. Commer-

ono, (to name a few)

cially, this could be very

laptop recently, there

lucrative.

is a fair chance that

new

Intel

hand

Re-

move-

generation

of

you are now in possesConversely, if a game can

sion of a camera that

identify when a player is

supports facial analyt-

happy, and how to main-

ics.

tain that state, it can also in theory, identify when a

We are moving into a

player is angry, frustrated,

new world of technolo-

distressed or desperate,

gy that is very exciting,

and what might take the player away from that state. Implement-

but also potentially, emotional state at the right time. So,

ed appropriately, an application that is

very dangerous, and which has the potential to be for both good and bad, in

able to assess and react to a player’s

not a message at a set or given time to

equal measure. A world in which play-

mood and emotions during the gaming

say how long they have been playing,

ers are exposed to an experience and

experience, could prove to be the most

or when their losses reach a particular

level of engagement and excitement

effective responsible gambling tool

value, but rather at the time when the

we never thought possible; but also one

ever.

application assesses it is likely to have

in which it will be easier to lose sight

the greatest impact. If the application

of reality, and exert a degree of control

Instead of reacting after the event, ei-

senses anger or distress it could even

over players in a way which is less than

ther as a result of observation of the

pause play and enforce a break.

desirable.

gering an alert, an application which can

And again, if this sounds fanciful, bear

This is very powerful technology in-

predict what might make a player play

in mind that this technology is already

deed, and in rushing to embrace it, we

more, should in theory, also be able

in use in several industries; from film

should never forget that with power

to predict what might make the player

producers and advertising agencies to

comes responsibility.

player, or prompt from an algorithm trig-

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Macau junket boss to divorce costing hundreds of millions

H

Macau businessmen and master Junketeer Alvin Chau is divorcing his wife of 13 years following the announcement that his girlfriend is expecting their second child.

Heidi Chan said that she was divorcing her husband Alvin Chau following the news of the pending arrival from Hong Kong model & actress Mandy Lieu who has been dating Alvin for over a year and a half.

Mr Chau who rose rapidly to fame and fortune with his company Sun City Group which was setup in 2007, it has become a force to be reckoned with, as one of the big four junket operations in Macau. Suncity Group runs VIP clubs at 11 Macau venues along with a high roller operation at Paradise Walkerhill casino in South Korea, and has representative offices in Japan, Thailand and Taiwan.

The divorce from Heidi is expected to be heavily expensive for Alvin Chau as much if not all his wealth was earned after they were married, some observers estimate hundreds of millions of dollars could be a settlement in divorce courts.

Macau suffers over 34% fall in revenues for 2015 Macau revenues in Macau for December fell 21.2% making it the 19th consecutive month of falling revenues for the world’s largest gambling zone and at the same time condemning Macau to 2 years now of declining numbers.

For 2015 Macau suffered a fall of 34.3% to $28.92 billion said Macau’s Gaming Inspection and Coordination Bureau, in 2014 the gambling hub saw a fall of 2.6%. Both times the sliding revenues are the work of dwindling VIP numbers and also the crackdown on corruption on mainland China worrying gamblers and keeping them away from the gaming tables.

However bad those numbers for 2015 they are in line with many analyst predictions of a decline of 35% and many forecast a 16% fall in VIP numbers for the year ahead.

“Macau has been hit hard by China’s anti-corruption campaign which has deterred wealthy customers from visiting Macau,” Aaron Fischer, head of consumer and gaming research at CLSA, told AFP on Saturday.

“2016 is not likely to be a very good year. However, after a 34% decline in 2015, consensus expects revenues to be roughly flat, which is a big improvement,” Fischer added.

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GAMING NEWS

FEBRUARY 2016

Genting UK boss Peter Brooks steps down

P

eter Brooks the President of Genting UK has been replaced by Paul Willcock the current Managing Director of provincial casinos in the UK. In an announcement made to all management in Genting UK by CEO Dato’ Sri CY Lee it said that Brooks after 8 years with Genting will be stepping down from the 1st January but will make a transition with Willcock who along with becoming President will also assume the role of Chief Operating Officer of the UK division.

It is a big step for the man who joined Genting UK only five years ago from Mitchells & Butlers as Director of HR. The exact reason for Brooks departure is not mentioned but many will point to the criticism of the Resorts World Birmingham development. Taking 7 years to build and estimated to cost over £150 million Brooks was responsible for its growth but with the casino scheduled to open in 2008 was supposed to be a super casino that was ditched by the government at the time.

Following this Brooks was quoted as saying, he was very cautious over the development calling it an “experiment” and “an act of faith.” Indeed Mr Brooks said recently that the company would never had invested in the casino resort had they known in advance of the regulatory difficulties and planning delays they were to suffer.

who will replace Paul Willcock as head of provincial casinos, currently regional bosses Jason Kirsch and Graeme Fletcher would be favourites but it is known Genting prefer to hire from outside the sector for the high ranking roles.

Were those remarks to cost Brooks his job as President is not clear, however the rumour mill will churn again with

Ainsworth buys up smaller competitor Slot machine company Ainsworth Gaming Technologies has announced it is to acquire smaller competitor Nova Technologies based in South Carolina for $38 million in an attempt to increase the firms business within the Indian Gaming Market.

Company CEO Danny Gladstone said the acquisition would complement Ainsworth’s current operations and expand its presence within the Indian gaming market.

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GAMING NEWS

FEBRUARY 2016

Atlantic Club up for sale again

F

or many the closure of the Atlantic Club sparked the closure of more casinos in Atlantic City when the casino hotel shut up shop on the 13th January 2014, it was also the venue that PokerStars had agreed to partner with but eventually got swindled out of as many gaming observers believe, but now the location is again up for sale.

Florida-based development group TJM Properties who bought the property shortly after Atlantic Club closed are now placing it back on the market. The idea when TJM purchased it was to turn the venue into a new retail, hotel, conference and entertainment space that included an indoor and outdoor water park.

However the company charged with developing the resort and finding funds to do so have now given up on the project. Pennsylvania-based firm Endeavor LLC had looked at financial support from local and federal government to develop the resort but failed on both counts to get any

viable support.

“Endeavor made an exceptional effort to bring this project to fruition,” said TJM’s Terence McCarthy. “Unfortunately, Endeavor was not able to generate the additional deposit funds needed.”

“Both our firms have invested substantial time and money in the planning process,” McCarthy said. “We felt that the project was good for Atlantic City. Endeavor has laid a foundation that has generated interest in government funding that may enhance the value of the property, and we are disappointed that they were unable to continue.”

The price for the resort has not been mentioned but many see the Atlantic Club as an example of failure in Atlantic City and think that a buyer for the resort will be difficult to find.

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FEBRUARY 2016

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GAMING NEWS

FEBRUARY 2016

Ladbrokes approached Tabcorp in joint venture in 2013 Djokovic calls for debate on gambling sponsors in tennis

A

Following widespread reports that world tennis has been corrupted by match fixing world number one Novak Djokovic also admitted that he was approached also to throw a match when he was starting out.

The move by Ladbrokes was in response to seeing its UK rival succeed in Australia and Ladbrokes apparently wanted to deal with Tabcorp to jump over William Hill, however Tabcorp’s chief executive David Attenborough is understood to have taken little time to reject the proposal given his company already held the position of Australia’s number one betting firm in Australia.

“I was not approached directly, I was approached through people that were with my team,” he said, after cruising through his opening match at the Australian Open against South Korean teenager Chung Hyeon.

ussie betting firm Tabcorp have said that it rejected a joint venture approach from UK bookmaker Ladbrokes back in 2013. It would have at the time created the biggest betting business in Australia.

But the deal may have been beneficial to Tabcorp as it has since seen its online gambling share drop from a high of 30% in 2013 to 25%. Ladbrokes holds a 7.5% share of the online market.

However since the approach by Ladbrokes to Tabcorp the UK bookmaker has now sealed a merger with Gala Coral worth £2.3 billion.

Currently the industry is seeing a huge amount of mergers and consolidations with Paddy Power and Betfair also joining forces.

It all goes to show that behind boardroom doors many companies are talking of deals to shore up and enforce their own positions within the gambling sector. Who and what will be next is any ones guess as many observers believe that 2016 will see more tie-ups with gambling firms.

“Of course, we threw it away right away. The guy that was trying to talk to me, he didn’t even get to me directly. There was nothing out of it.

“Unfortunately, there were some, in those times, those days, rumours, some talk, some people were going around. They were dealt with. In the last six, seven years, I haven’t heard anything similar.”

In 2007, Djokovic said an approach had been made offering him $200,000 to throw a match at the St Petersburg Open in Russia, a tournament he did not eventually play in.

However the big Serb serving master said that he felt there needed to be a discussion into gambling firms being seen to sponsor world tournament events even if there was no wrongdoing.

This year William Hill became the first official betting partner of the Australian Open, but many critics says it send out the wrong message on betting and tennis.

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JANUARY 2015

Apps are Great But Remember That Text Has Its Place

By Paul Swaddle - CEO Pocket App

Mobile has completely transformed the

As mobile technology improves at a near-

One of the first and most groundbreaking

way we communicate in recent years, and

daily rate and more businesses jump into

features of the mobile phone, SMS truly

there isn’t a single industry that hasn’t

the ring to take advantage of this technol-

revolutionised the way we communicate.

felt its effect in some way. In 2015, some

ogy, consumers are constantly exposed to

Still a cornerstone feature of every mobile

66% of adults and a staggering 90% of

new and innovative ways of connecting

on the market today, the use of the text

16-24 year olds in the UK owned a mobile

quickly, directly and conveniently with

message for social purposes has dimin-

phone, and businesses are scrambling

the companies they follow. Yet, despite

ished in recent years in favour of alterna-

to utilise this to improve their services,

the plethora of customer engagement

tives such as Whatsapp and the built-in

get a leg up on their competitors and ul-

options available to businesses today, it

instant messenger services on many

timately win customers, and the gaming

is important to remember that there still

industry is no different.

times when text is best.

of today’s social media offerings. Businesses are also searching for new ways to connect with their customers, increasingly opting to communicate with customers via bespoke mobile apps instead.

And as a mobile specialist and an app developer, I can certainly see the appeal of these alternatives. Businesses that create an app with which to engage their customers can make it unique in its design and operation, and can integrate innovative features that simply aren’t possible with a text.

However, if used cleverly, SMS performs just as well, if not better, in certain situations than app alternatives, and there are many businesses who do still recognise this. A recent report valued the application to person (A2P) SMS market at $55 billion, and predicted this to reach $70 billion by 2020.

To give an example of how business can take advantage of SMS in today’s mobile climate, at Pocket App we created an app that allows users to

JANUARY 2015

Paul Swaddle is CEO of Pocket App a leading design company in the App Construction world

donate via mobile to the Poppy Appeal campaign, however iOS doesn’t allow charitable donations to be made via an app. We therefore worked with our partner Veoo, a developer of mobile engagement, SMS and cloud solutions, to create an app that enables the user to make a donation via SMS. Read on for a few of our top examples of how the gaming industry in particular could benefit from the use of SMS.

Secure Payments As we’re talking about gaming, a particularly appealing feature of

SMS is the use of a text message to authorise online casino payments to place a bet. This is also applicable to various other markets that encourage a spontaneous and convenient mobile payment for a service or product, the process of premium billing allows users to authorise a payment via text message to be charged to your mobile phone bill. The majority of online casinos direct players to register their phone number online and will then receive a text asking to confirm their deposit. If the player does nothing, the text will expire and the user will have to register again. With no need to enter card details online, SMS can

prove a straightforward and secure way to pay for online gaming.

Two Factor-Authentication The security of our digital identities is increasingly becoming as fragile as it is important to guarantee, with online hackers seemingly making daily attempts to obtain the private and financial details of customers of numerous high profile organisations. Sony in particular seems to be locked in a constant battle with hackers attempting to infiltrate the PlayStation Network and online casinos must of course take measures to ensure that their customers’

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Apps are Great

financial details aren’t at risk. SMS can achieve this security through two-factor authentication, the theory behind which is that an identity is confirmed through the combination of two items or qualities that only an individual possesses, such as a debit card and a pin number.

This can be applied to SMS by sending a unique code or reference number to a confirmation link to the personal phone number of the intended recipient, and is a great method for gaming companies to securely verify their customers’ identity.

Your CRM activity at its’ best There’s something very personal about being contacted directly on your mobile that doesn’t come across in quite the same way on a laptop. Most of us spend entire days without ever letting our mobiles stray out of reach, using them to socialise, entertain ourselves and manage our time. The average text message response time is just

FEBRUARY 2016

text message response time is just 90 seconds, in comparison with 90 minutes on average to respond to emails, and from a business perspective, SMS marketing campaigns see a 20% higher click through rate (CTR) than their email counterparts. An impressive demonstration of how companies can leverage SMS to build not only a highly efficient, but also a personal relationship with their customers.

With a social activity such as gaming, engaging directly on this personal level is particularly important. Customers don’t want to spend their precious free time scrolling through emails to look for important updates, or to have an overly formal relationship with providers of their entertainment activities, and gaming companies can achieve a personal and convenient relationship via the instant connectivity that SMS allows.

Sony could alert customers to new software updates that are available to download on their console, or

online marketplace sites such as online games marketplace Steam might text regular customers to let them know about a “limited time only” sale.

To round off, it’s not uncommon to see mobile users today neglect the text message in favour of a modern and shiny app, and you won’t catch me denying that apps are the future of mobile. But does SMS still have its uses? Absolutely it does. For the purposes of mobile payments, mobile marketing and delivering instant alerts, SMS remains convenient, secure and useful. To learn more about how your business can make the best use of SMS, contact the Pocket App team on contact@pocketapp.co.uk or 02071 834 388

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GAMING NEWS

FEBRUARY 2016

Olympic Entertainment opening its largest casino in Malta The group’s all time largest casino with close to 3,000 sq metres – named Casino Malta by Olympic Casino – is located in Malta InterContinental Hotel. The casino features 285 slots, 2 electronic roulette tables and 29 casino and poker tables as well as a wide sports betting and bar area.

O

lympic Entertainment Group’s (OEG) subsidiary in Malta opened the group’s all time largest casino in the country’s most attractive tourism region.

According to Madis Jääger, CEO of Olympic Entertainment Group, year-long preparations to expand the group’s operations to Malta have been successful. “After receiving Maltese gambling license we were able to open our first casino in Malta making it the eighth market where OEG operates,” Jääger said.

OEG’s first casino in Malta was established in cooperation with Maltese hotel and entertainment enterprise Eden Leisure Group. The casino will be operated by OEG under a management agreement.

With more than 3,000 employees, Olympic Entertainment Group is the largest provider of casino entertainment in its region. OEG is a full member of the European Casino Association (ECA). Today, the Group operates casinos in Estonia, Latvia, Lithuania, Poland, Slovakia, Belarus, Italy and Malta. OEG shares are traded on the main list of Tallinn Stock Exchange and Warsaw Stock Exchange. All casino operators of Olympic Entertainment Group are responsible enterprises that notify their clients of the dangers associated with gambling.

Macau entry refusal figures down for 2015

N

ew figures released by the Macau Gaming and Inspection Coordination Bureau show that casino operators in the gambling hub refused entry to 236,000 individuals who were 21 years of age or under during the last year.

The figure is much less than the 330,000 that were refused entry in 2014, following the introduction of the new rule that raised the age limit for people to enter the casinos from 18 years of age to 21 back in 2012. There is also a ban on people that work within the gambling industry in Macau from entering.

Fines for breaking the rule vary from $125 to over $1,200 to the individual and from $1,200 to $12,000 for the casino operator for breaking the rules of entry.

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FEBRUARY 2016

35

Dutch online gambling tax debated

D

utch coalition MPs are call-

operators to become legal in operating in

However, the government now have de-

ing for online gambling tax

the Netherlands with a lower rate of tax,

cided that after three years of operation

to be the same as land based

however the coalition party says that is

all online gambling companies can pay

gambling and set at 29% not what the

unfair and the rate should be the same as

25% tax. This is marks the way for online

government was planning at 20% for

other forms of gambling in the country.

gambling to possibly be legalised by the

online gambling.

summer of this year in the Netherlands, Holland Casino the government allowed

however many observers think that this

The government wanted the lower rate

monopoly within the country have to pay

timeline is unrealistic.

to encourage offshore online gambling

29% tax on the proceeds of gambling.

Bwin.party post Q4 rise in revenues prior to GVC takeover

B

win.party who are to be acquired by GVC Holdings shortly following a £1.1 billion takeover announced what will be their final independent results for the fourth quarter of 2015 with a rise in net revenues for the quarter of 5% compared to the same period in 2014.

The rise in revenues came mostly from their mobile division with casino games and sports betting the strongest performers. Indeed the online gambling firm said without the recent introduction of the UK POC tax the company would have seen an 8% rise in results.

More good news from bwin.party came from their payment division of Kalixa Payments which is due a £10 million payment through the sale of Visa Europe to Visa International which Kalixa is a main member of Visa Europe.

GVC Holdings are due to take control of bwin.party on the 1st February.”Based upon recent trading performance, the forthcoming Euro Championship in 2016 and the full year benefit of cost savings already achieved in 20156, the board believes that the group’s prospects are strong, and these will be enhanced yet further by the proposed combination with GVC Holdings”, Said a GVC statement.

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GAMING NEWS

Greece gears up for new online gambling license reform

FEBRUARY 2016

Packer departs Crown Resorts Board

James Packer has now stepped down from the Board of Crown Resorts, this follows his resignation back in August as Chairman of the casino company and the move has fueled rumours the Australian billionaire is about to make a move to take the company private again with a buyout.

G

reece will be reforming the current online gambling license application in 2016 following the current failure of the present system. The ruling Syriza government said that the present licensing system had contributed a paltry €60,000 to state coffers over the last three years where the new system the government believe will rake in some €500 million.

The Greek Deputy Finance Minister Tryfon Alexiadis said recently in parliament that the government will be reforming the current licensing act for overseas gambling operators who want to enter the Greek online market.

He said in his speech that, “the government want to forge a conclusive regulatory landscape for online gaming.”

Previous Finance Minister Yanis Varoufakis said in 2015 that new issued licenses would be valued at €3 million, with tax rates remaining the same for operators but they would have to use a payment system controlled by the Greek Central Bank.

With a controlling stake still of 53% in Crown Resorts the billionaire is not happy with the current performance of the firm that operates casinos in Australia and Las Vegas and with Lawrence Ho in Melco Crown Entertainment has resorts in Macau and Manila.

“I intend to devote my energies to a number of key development projects in Sydney, Melbourne and Las Vegas, as well as Crown’s online platforms,” Packer said in a statement announcing his departure from the board, “I remain incredibly passionate about Crown and its world-class integrated resort business. Crown is my biggest professional priority and represents the vast majority of my net wealth.”

Several reports say that Packer is discussing the possibility with equity investors to see if the move is possible, whether trying to take Crown back into private holding will happen and if Lawrence Ho would be involved in this is still speculation which will certainly continue into 2016.

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FEBRUARY 2016

The Pleasure is to Play

By Liz Karter To find out more about Liz Karter and her work visit these links: www.levelgroundtherapy.uk - www.lizkarter.com & Liz Karters Books

W

hat a sad start to January. We have lost two truly wonderful performers from within the world of music; Lemmy the fast living, pleasure loving, whisky soaked lead singer of the rock band Motorhead, and of course, everybody’s Starman; the enigmatic, extraordinary, master of changes, David Bowie.

When Lemmy and then Bowie died national news and social media was dominated by their demise. Each conversation seemed to start with an expression of sadness and shock at their passing and mature, rational adults from all walks of life confessed to crying as they would at the bereavement of a friend or family member. We are truly shaken at the loss, but are sometimes struggling to articulate exactly what it is that we feel we have lost.

In one sense, albeit subconsciously, I wonder if we feel we have lost a part of ourselves – the part of ourselves

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which we would love to be able to freely access and fully express, if only we dared to do so. Both of these artists were men who lived lives which they felt were true for them, even it meant taking the risk of the disproval of others. They were not only excellent entertainers but

essentially ground breakers and risk takers. They lived life loud and colourful. Ask anyone to name a Motorhead track and if I were a betting woman I would put my money on the fact that they would name the rocking and unashamedly reckless, “The Ace of Spades” the opening lyrics:

“If you like to gamble, I tell you I’m your man You win some, lose some, it’s all the same to me The pleasure is to play, makes no difference what you say” “It makes no difference what you say “– to live life by these words requires being truly courageous.

The song lyrics of course could been taken literally to be about gambling, but are also a reflection on living an authentic life, where we are open to risk and a full range of experience. We all secretly desire at times to take the risk of living life by our own rules, be it to take off to the countryside and go self- sufficient or start our own business.

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But for most of us the lives which we have been slotted into, or created for ourselves because we were told that was what life should look like for ‘normal’ people, mean that it matters very much indeed whether we “win some, lose some” because it’s not all the same to the bank manager whether we pay our mortgage this month.

We feel too, that what others within our peer group say does make a huge difference. Frequently, we find it safer to stay with the flock and stick to society’s idea of what is the right thing to do because of basic instincts. We are group animals and fear not only ridicule, financial failure and loss of status were we to take the gamble of living a life more true to ourselves, but on a deeper, unconscious, instinctive level we fear rejection and abandonment by our friends and family.

Taking the risks of breaking away from the social norms therefore goes against our animal instincts, which worryingly whisper to us that for our very survival we need the acceptance of the social group.

So, it feels safer to put on the suit and keep turning up at the office. No Ziggy Stardust style make up for us today then...

What happens though to the risk taking gambling man (or woman) inside of us? We live that part of ourselves through the likes of our heroes, such as Lemmy and Bowie. Through them we live out that risk taking part of ourselves which we packed away on leaving our teenage years and taking on responsibilities that meant we needed to limit risk. And, when our heroes die we feel the pain of loss not just of music legends but of a part of ourselves. The part of us that lived through them because we did not dare take the risk of rebellion feels like it died along with them.

The pleasure is indeed to play as Lemmy’s song thrashes and crash home to us. It is great to have a stable and secureframework for life, supportive partners and sound financial plans; all these things are essential to a life of contentment rather than chaos. But so too is having a little risk and spontaneity in life and having little air pockets where we feel we can be our authentic self.

It can make the difference between our existing and feeling truly alive.

I have found one of the biggest contributory factors to addiction of any kind is suppressing our true nature, which leads then to our feeling depressed, which leads to our engaging in reckless behaviour, such as drug, alcohol, sex and gambling addiction for the buzz, and as a compensation for our life feeling it is about all work and no play.

Identifying that within us lives on a little of the eccentricity and extraordinary personality style of Bowie, and the desire to rock life with the odd risk like Lemmy, is a good thing.

Being conscious of this means that we can get into action with making space and time to indulge this part of ourselves- after all those having fun at the casino or placing a bet are doing just that and for the majority a remains a healthy risk worth taking.

Having satisfied this natural need for risk we are content to go back to our more conventional lives restored, inspired and feeling alive, because, whatever form it may take for us, the pleasure really is to play.

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39

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FEBRUARY 2016

Shay Segev to join GVC Holdings well from his time at Playtech.

“Shay is recognised in the industry as one of the leading figures in online gaming. His knowledge & experience of integrating technology businesses across all product verticals, from casino to sportsbook products, will be central to the success of the enlarged GVC/bwin.party group which we expect to complete in early February 2016, Kenny Alexander , chief executive officer of GVC Holdings said.

I

ndustry professional Shay Segev will be joining GVC Holdings as Chief Operating Officer at the beginning of March 2016 and will be responsible for leading the integration of GVC and Bwin.Party’s respective technology platforms following the completion of the merger between the two, expected in February 2016.

Segev who was formerly COO of Playtech before departing to Gala Coral as Chief Strategy Officer, however with Gala and Ladbrokes in the midst of their own merger Segev has decided to take up the demanding role he knows

“Everyone at GVC & bwin.party are excited to be working with Shay & we are confident he will be a key player in the success of one the largest online gaming operators in the world following completion of the bwin.party acquisition.”

“I am looking forward to working with Kenny & his team to deliver world class services & products to an ever increasing audience. My experience at Playtech & Gala Coral is highly transferable & I am confident will deliver for the enlarged GVC & bwin.party group’s shareholders, Segev concluded.

Dutch online gambling could be worth 1 billion euros

A

new survey in Holland has found that some 1.5 million residents either have gambled or gamble regularly on the internet. Indeed the total gambled online each year using online gambling sites have topped 500 million euros.

The study carried out by Motivaction on seventeen thousand Dutch people which was commissioned by Holland Casino, the survey found that 15% or 1.5 million Dutch residents played online bingo, poker roulette and blackjack and of that number 800,000 played at least four times a year or more.

It also showed that Dutch residents spent on average 26 euros a month leading Motivaction to estimate the Dutch

INFINITY GAMING

market is worth a minimum of 500 million euros per year.

With online gambling currently illegal in the Netherlands, the treasury is losing out on about 100 million euros a year in taxes that could have been collected.

However Holland Casino who commissioned the survey thinks that Motivaction’s estimation is very conservative, pointing to Denmark, where online gambling is legal.

There Danish gamblers whose population is 5.6 million gamble on average 338 million euros online in the first 9 months of this year alone.

With Holland having nearly 17 million resident, the Dutch online gambling market could be worth over a billion euros say Holland Casino.

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FEBRUARY 2016

Update on Ireland’s Gaming Legislation Issue

By JJ Woods

O

ver the coming weeks Ireland will be heading to the polling stations to vote for their Candidate / Party and it really is a guessing game if the new government will enact an up to date Gaming Legislation. The Legislation that exists presently is an embarrassing 60 yrs of age! (1956).

It is also becoming increasing harder to get insight into how the Irish Government is thinking on the whole issue which has been going on since 2006. In broad terms the Irish Government have been researching the possibilities of a new gaming legislation for 10 years having waited 50 years before doing so.

The present legislation and existing Act’s are the Betting Act 1931 which applies to bookmaker shops and the Gaming and Lotteries Act 1956. The Act’s are archaic by any standards and they fall way behind one of the fastest growing industries in the world.

The Government and the country are the losers here as they have lost millions of euro in revenue from the

INFINITY GAMING

gaming industry over this period of research. Most Countries can roll out a new legislation within a 12 month period, Cyprus managed to do so.

Ireland has had 7 Justice Ministers since the gaming debate/ research started in 2006. The office is presently occupied by the Seventh which is Frances Fitzgerald who is one of the few females to occupy this role. This is the latest communication received from her regarding implementing a New Gaming Legislation on the 8th December 2015: ‘’The Gambling Control Bill will, when enacted, update all existing Lawson the regulation of gambling, including betting and gaming (but excluding the national Lottery). It will provide for the licensing of all forms of on-line gambling. The General Scheme of the gambling Control Bill was published in July 2013. The Joint Oireachtas Committee on Justice, Defence and Equality provided its report on hearings in relation to the General Scheme in November 2013.

The Gambling Control Bill that was released in 2013 was certainly an indication that the Irish Justice department have no understanding of the existing business on the ground and rather than attract investors which is what a 1st Bill is supposed to do , it pretty much told investors that Ireland was a no go area for Gaming Investments.

FEBRUARY 2016

The Gambling Control Bill will confer

progress will be made on this in 2016‘’

responsibility for all regulatory matters

that Ireland is ready to compete strongly in this market.

on the Minister for Justice and Equality.

The Gambling Control Bill that was re-

The Minister’s functions will include li-

leased in 2013 was certainly an indica-

Several other small countries have

censing, inspections, and prosecutions,

tion that the Irish Justice department

reaped the benefits of regulated gam-

and it is envisaged that these functions

have no understanding

of the exist-

ing markets, including Alderney, Isle of

will be carried out by a body located

ing business on the ground and rather

Man, Malta to name a few and like any

within my Department. The Scheme

than attract investors which is what

other market it is a competitive one and

provides for a dedicated inspectorate

a 1st Bill is supposed to do , it pretty

this should be taken into consideration

to ensure compliance by license hold-

much told investors that Ireland was

if Ireland is ever going to compete in the

ers with the terms of their licenses

a no go area for Gaming Investments.

Gaming Industry.

and with the new legislation generally.

I believe we need a new draft of the Gambling Bill and we need proper dis-

It is the intention to proceed with this

cussion on how this new Bill is formed.

legislation at the earliest feasible op-

It should send out positives to the In-

portunity and I expect that substantial

ternational Gaming world and also state

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44

FEBRUARY 2016

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GVC to sell payments arm and sale of Foxy Bingo rumours continue

G

VC has said that it will offload the online payments division it purchased as part of the acquisition of bwin.party for £1.1 billion.

Chief Executive of GVC Kenny Alexander said to the Telegraph recently that although Kalixa does most of its business with bwin.party it also has expanded to other online forms but GVC has already spoken to other payments companies in preliminary talks of a sale.

“We’ll probably look at maybe disposing of bits of that,” he said. “We’ve had very early discussions.”

Other interesting news from the interview was that GVC will start to look at new acquisitions within the online gaming industry quite soon once the bwin. party deal is fully completed.

Finally with rumours of GVC selling off another bwin.party asset of Foxy Bingo the Mr Alexander said those were unfounded and Foxy Bingo was “a cracking business”. However those rumours still continue with initial names mentioned being Simon Collins who owned Foxy Bingo before selling it to bwin.party for £95 million, however Simon Collins said that a deal to buy back Foxy Bingo was probably out of his range as GVC would want to make a substantial profit from the sale.

Other suitors would certainly be Gala Bingo and Mecca Bingo to help boost their own brands.their stakeholders and not just to their shareholders.

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45

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FEBRUARY 2016

Amaya to Appeal Ruling by Kentucky Trial Court

A

maya to Appeal Ruling by Kentucky Trial Court in Rare and Controversial Suit Brought Under Arcane 200-Year-Old Commonwealth Law.

Amaya today announced it will appeal a judgment issued yesterday by a state judge in the Commonwealth of Kentucky and will avail itself of any and all remedies available to it. The litigation was filed by the Commonwealth of Kentucky in 2010 and sought recovery of alleged losses

by Kentucky residents who played real-money poker on PokerStars’ website during a period between 2006 and 2011.In the decision, the judge imposed an approximately US$290 million award, which he trebled to approximately US$870 million excluding interest and applicable costs, in favor of the Commonwealth. The latest ruling is in stark contrast to the same trial court’s decision just last month when it determined that damages should be based on the net losses of players. Yesterday’s order applies a methodology that is not grounded in applicable law as it calculates damages based on gross losses of players without any reduction for winnings, bonuses or free play. “This is a frivolous and egregious misuse of an antiquated state statute to enrich the contingent-fee plaintiff’s attorneys hired by the Commonwealth and not the people of Kentucky,” said Marlon Goldstein, Executive Vice President, Corporate Development and General Counsel of Amaya. “Given that PokerStars only generated gross revenues of approximately US$18 million from Kentucky customers during the five years at issue, a damages award in excess of US$800 million is notable only for its absurdity.”To bring the action, Kentucky relied on a centuries old statute that was intended to allow individu-

INFINITY GAMING

als who incurred gaming losses to sue their opponents; it was never intended to authorize the Commonwealth to sue and collect such losses for its own benefit. In fact, no other state in the union has brought an action under this type of antiquated statute to recover alleged gaming losses in the name of a state. Amaya intends to post a bond to stay the enforcement of the order and to appeal in early January.

The appeal will, among other arguments,raise factual and legal errors (including violations of the state and federal constitutions) that include, but are not limited to, the trial court’s ruling permitting the Commonwealth to assert standing, its failure to find facts that give rise to the violation of the statute, it’s clearly erroneous decisions of law, and its failure to properly apply the law to the facts.

Amaya will also vigorously challenge the trial court’s calculation of alleged gaming losses, which was based on an improper reading of a 100-year-old leading appellate decision. Regardless of the dollar amount, to the extent the PokerStars entities may be ultimately obligated to pay any amounts following exhaustion of all appeals and other legal remedies, Amaya intends to seek recovery against the former owners of the PokerStars business.

Amaya has been a leader in promoting the regulation of online gaming in the United States. Earlier this year, following an extensive review, Amaya received approval to begin operating its PokerStars brand in the regulated market of New Jersey, which it plans to launch in the first half of 2016.

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47

GAMING NEWS

FEBRUARY 2016

Former sports betting operator appears in court

In 2006, Ware told ESPN it was “tough” not being able to return the country he was born in, to see his family and friends.

“It’s not fun to have any country, whether it’s the most powerful country in the world or any country, deem you to be a criminal,” he said.

F

or many online gamblers and

voluntarily turned himself in to

supporters of internet gam-

U.S. authorities after flying in from

bling one of the front runners

Antigua on Wednesday night. James

of this was World Sports Exchange

Henderson, his lawyer, told reporters

which was established in 1995. It

his client “came back to resolve this.”

took hundreds of millions in wagers by mostly US citizens but was finally

“Who wants to be an international

closed down in 2013 citing a lack of

fugitive when you’re a U.S. citizen?”

funds.

Henderson said.

However the long story of those

“Who wants to be an international

founders has finally come to an end

fugitive when you’re a U.S. citizen?”

with the plea in a New York court

Henderson said.

room of Haden Ware one of the founders of World Sports Exchange.

He was released on $150,000 bond and allowed to leave New York to

Haden Ware was on the run since

travel to California and Massachu-

2002 when he was indicted for his

setts to see his parents, who Hender-

part in World Sports Exchange and

son said he had not seen in 20 years.

In 2013, World Sports Exchange ceased operations, citing inadequate capital resources. Schillinger died days later from a gunshot wound to the head, the victim of what Antiguan media described at the time as an apparent act of suicide.

For many the story of World Sports Exchange inspired them to follow in their footsteps and more online sports betting companies bloomed over those years, but it also a cautionary tail that in the end running and hiding can only be done for so long.

wanted under the federal Wire Wager Act. Jay Cohen another of the founders was charged by the US Justice Department along with 22 other people of violating the wire act and sentenced to 21 months in prison. But Haden Ware and the third founder of the sports betting company Steve Schillinger hid out in Antigua where the company was based.

But some 13 years later Haden Ware

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49

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GAMING NEWS

FEBRUARY 2016

Malaysia to tighten laws on internet gambling

I

t seems the Malaysian government want to get tough on illegal online gambling within their country after the country’s deputy home minister said that the current legislation prevents the police from prosecuting operators and needs changes.

“The police are facing constraints in prosecuting those responsible. They have proposed amendments to the laws on gambling to allow them to better deal with the problem,” Mr Nur Jazlan said at the country’s House of Representatives.

At present the only piece of legislation that covers

gambling was constructed in 1953 and although has received several amendments since then none have covered online gambling. The legislation makes it illegal for all forms of unlicensed gambling but contains no mention of “online” or “internet” or even “remote gambling” so makes no power for police to arrest those running gambling online illegal at present.

However plans are now being considered to make amendments to the Communications and Multimedia Act, Lotteries Act, Common Gaming House Act, as well as the Betting Act to ensure online gambling will be

Betfair surprise analyst’s with H1 results Betfair surprised many analyst’s with exceeding expectations for the first half year results with a 15% increase in revenues. The betting exchange firm chief executive Breon Corcoran said: Betfair traded strongly in its key markets throughout the first half of FY16.

“These results, which came against a tough comparative period featuring last year’s football World Cup, are ahead of our original expectations and demonstrate the Group’s continued strong momentum.

“Our strategy of focusing investment in markets with good regulatory visibility continues to pay off.

Betfair’s relatively low exposure to unregulated jurisdictions meant that even though revenue decline in these markets accelerated, primarily due to the impact of suspending operations in Portugal, it was more than offset by growth in sustainable markets.”

Total revenues for H1 ending October 31 stood at £274.4 million compared to £237.6 million in 2014.

Profits were up 9% from £67.2 million last year to £80.5 million in 2015.

Betfair and Paddy Power who have agreed a merger of the two companies which is still Subject to shareholder and regulatory approval expect the deal to go through in the first quarter of 2016.

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FEBRUARY 2016

What Should Daily Fantasy Sports Do Now? © Copyright 2015, all rights reserved worldwide. Gambling and the Law® is a registered trademark of Professor I Nelson Rose, www.GAMBLINGANDTHELAW.com. Published in Gaming Law Review and Economics, Vol. 19, No. 10 at p. ___ (December 2015).

Professor I. Nelson Rose

The two big Daily Fantasy Sports (“DFS”)

operators, FanDuel and DraftKings, and

DFS, fed in part by unprecedented mas-

The explosion of interest in

they stopped taking players from Ne-

their backers, are, in the immortal words

sive television advertising campaigns,

of former President George H.W. Bush,

was bound to raise challenges. Draft-

The scandal could have been easily

in “deep-doodoo.” But lawyers with le-

Kings and FanDuel are more than just

avoided. A manager of DraftKings ac-

gal shovels can probably dig them out.

important advertisers for ESPN.

“In

cidentally released confidential infor-

vada and New York.

fact, some 59% of the media advertis-

mation about which real-world athletes

As recently as last year, the DFS indus-

ing revenue growth in the last quarter

DFS players were selecting, and then,

try’s problems were relatively insignifi-

($134 million) came from the fantasy

perhaps coincidentally, the same man-

cant. As in the early days of Internet

sites.” But a scandal at the end of Sep-

ager won $350,000 playing fantasy

poker, operators were making so much

tember 2015 brought operators atten-

football at rival FanDuel. This, of course,

money that they could afford to brush

tion they did not want, including threats

looked like the DraftKings employee

off the few scattered questions about

from government officials that the DFS

used inside information to give himself

the games’ legality.

operators would be arrested unless

an advantage in choosing which players

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FEBRUARY 2016

The scandal could have been easily avoided. A manager of DraftKings accidentally released confidential information about which real-world athletes DFS players were selecting

to put on his FanDuel fantasy team.

more than, say, $1,000 playing DFS in

ads would also be guilty of that crime.

violation of his employment contract to forfeit all the money he won to his

Making an agreement and running

employer. Liquidated damages are in-

advertisements for an illegal activity

cluded in contracts when the parties

would constitute the separate crime of

know it would be difficult to measure or

conspiracy. And if the crime is illegal

prove the actual damages that would be

gambling, there are special statutes, like

caused by a breach. Given the poten-

the federal Illegal Gambling Businesses

tial harm to the operators’ reputations

Act, that make it a felony, if certain other

by an insider winning a large amount,

requirements are met, to participate in

Online fantasy sports, like all new

it is probable that the liquidated dam-

the business.

games, were created and staffed by

ages clause would have been upheld. It

people who like to play those same

would have at least warned employees

It is unlikely that federal prosecutors

games. Anyone with experience with

that playing DFS for big money was not

will go after media companies, due to

legal gaming, especially Internet gam-

worth the risk.

First Amendment concerns.

bling, and most especially a lawyer,

Investors

and profession sports teams have less

would have warned the operators to bar

The dangers were not limited to DFS

protection, but also would not be at-

their employees from participating in

operators. Investors, media companies

tractive targets, at least for U.S. attor-

high-stakes DFS games.

and real-world sports teams can also be

neys. State attorneys general and dis-

dragged into the legal morass.

trict attorneys are slightly more likely

It appears that both FanDuel and Draft-

to like the publicity that indicting a big

Kings did prohibit their staff members

The worst possible direct penalties

money investor or well-known team

from participating in their own real-

come from the criminal laws, especially

might bring; but only if the prosecutors

money games. But since there are only

the state and federal statutes passed to

thought they would win.

two large operators, employees of each

fight organized crime. If DFS is indeed

company should not have been allowed

illegal, then companies like ESPN could

A greater concern for DFS partners are

to play on the other company’s site. At

be criminally liable merely for running

the inevitable civil suits. Class actions

the very least, individuals with inside

the operators’ commercials.

have already been filed.

information should have had contracts

One of the

most extensive was filed in Florida in

warning them that they would have

Helping someone else to commit a

late November by two DFS patrons. The

been fired if they were found to have

crime, usually called aiding and abet-

suit named approximately 50 individu-

participated in any high-stakes real-

ting, makes the accomplice guilty of that

als and organizations as defendants.

money DFS game.

crime. So, if DFS operators are violating

These include four pro sports leagues,

the federal Wire Act, which makes it a

the MBA, MLB, NHL, MLS;

I would have also recommended inclu-

crime to send information useful in the

sion of a liquidated damages clause,

placing of bets on sports events across

requiring any employee who won

state lines, then companies running DFS

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54

FEBRUARY 2016

large media companies, including NBC

for DFS. Even before the current con-

Sports Comcast and Fox Sports Interac-

troversy, casino companies like MGM

tive Media; Visa, MasterCard and Ameri-

looked at DFS and concluded that it

can Express; J.P. Morgan and other big

just wasn’t worth their getting into the

banks; and, PayPal and other payment

game.

processors.

Conspicuous by its ab-

sence is the National Football League.

More importantly, it is far from clear that

The NFL has never openly endorsed

DFS is gambling under Nevada state

DFS. But three owners of professional

law. On October 15, 2015, A.G. Burnett,

sports teams, including the owner of

Chairman of the Nevada Gaming Con-

the New England Patriots, who invested

trol Board, issued a formal Notice to “All

in DFS operators, are named as defend-

Licensees and Interested Parties,” on

ants.

the “Legality of Offering Daily Fantasy Sports in Nevada.”

Chairman Burnett

It is unlikely that federal prosecutors will go after media companies, due to First Amendment concerns.

Investors and profes-

It is probably not surprising that so

asked the Board’s staff and the Nevada

many large and wealthy institutions

Attorney General’s Gaming Division to

did not do more to protect themselves.

evaluate DFS. Burnett’s Notice reads:

sion sports teams

non-money games, are not treated seri-

Based on these analyses, I, along with

have less protection,

ously by most people. Although com-

Board staff, have concluded that DFS

panies will have their lawyers look over

constitutes gambling under Nevada

the contracts, they, and their lawyers,

law. More specifically, DFS meets the

will enter into multi-million-dollar deals

definition of a game or gambling game

without having even asking whether the

pursuant to Chapter 463 of the Nevada

underlying business is legal. It is not

Revised Statutes.

even clear whether the media, credit

DFS involves wagering on the collective

card companies and other partners put

performance of individuals participat-

in protections, such as requiring the DFS

ing in sporting events, under current

operators to indemnify them against le-

law, regulation and approvals, in order

gal actions.

to lawfully expose DFS for play within

Gaming, including both gambling and

Moreover, because

the State of Nevada, a person must posThis does not mean that the DFS opera-

sess a license to operate a sports pool

tors and their partners are going to lose

issued by the Nevada Gaming Commis-

their legal fights. In fact, the actual legal

sion. Further, a licensed operator who

situation is not nearly as bad as a quick

offers DFS must comply with all laws

reading of headlines would indicate.

and regulations that apply to licensed

but also would not be attractive targets, at least for U.S. attorneys. State attorneys general and district attorneys are slightly more likely to like the publicity that indicting a big money investor or well-known team

sports pools.

might bring; but only

tant state actions that have been thrown

State-licensed sports books are allowed

up against DFS operators. In Nevada,

to take bets on sports events and run

if the prosecutors

the Chair of the Nevada Gaming Control

sports pools.

Board issued a letter stating that DFS is

it clear that the DFS would have to be

gambling and thus cannot operate with-

run by those state-licensed bookies,

out a state gaming license. In New York,

and that they would have to be careful

the Attorney General has also declared

about associating with outside com-

DFS illegal and has sent a cease and de-

panies that might be violating other

sist letter, which has now been followed

states’ anti-gambling laws.

Take, for example, the two most impor-

But the Notice makes

by civil suits.

The Notice raises interesting proceis the most important state for legal

dural issues. Nevada regulators have

gambling. But in terms of paying pa-

no direct power over DFS operators like

trons, it simply is not a very big market

FanDuel and DraftKing that are not li-

INFINITY GAMING

thought they would win.

FEBRUARY 2016

have no direct power over DFS operators like FanDuel and DraftKing that are

a hearing on the facts and laws. And,

5) Player participation changes the re-

not licensed by the state.

sult.

Gambling

because they are not subject to licens-

regulators can declare non-licensed

ing, they do not have an opportunity

individuals and companies as being un-

to contest the Chairman’s conclusion

suitable. And they can decide what is

through the normal regulatory process.

allowed in state licensed gaming facili-

A criminal prosecution allows a defend-

7) The opinion of the community.

ties. But it is doubtful whether Nevada

ant to challenge the charges. In this

gaming regulators have the power to

case, the only way DFS operators can

declare activities as being gambling if

challenge this Notice is to file suit for

In Las Vegas Hacienda v. Gibson the Ne-

they are not conducted on the grounds

a declaratory judgment and perhaps an

vada Supreme Court declared, in dicta,

of a casino or similar facility. Even the

injunction to get their day in court.

that it is up to the trial court to decide

power to declare a company as being

6) Skill can be learned from reading.

whether an activity is predominantly

unsuitable is not of much legal value if

And the DFS operators might win. If

skill or chance. The facts of the case of-

that company is not associated in any

DFS is predominantly a game of skill, it

fers strong support for DFS operators,

way with a Nevada licensee.

would not be gambling or a sports pool

because it involved a reward of $5,000

under Nevada law.

for a 50 cent entry fee for a hole-in-one

Putting it more bluntly, it is not up to the

on a golf course. The trial court found

Chairman of the Nevada Gaming Con-

It is up to each state to decide whether

that the shooting of a hole-in-one was

trol Board to decide whether an activ-

an activity has enough skill to be con-

a feat of skill. Even though it was not

ity like DFS is or is not gambling, if that

sidered as a contest of skill rather than

necessary for its decision, the Nevada

activity has nothing to do with any of

gambling. Courts have laid down many

Supreme Court went out of its way to

the state’s licensees. Regulators of le-

different tests for determining whether

declare:

gal gambling are not public prosecutors.

a game is predominantly a game of skill.

The interpretation and enforcement of

In brief, they will look for the following:

the state’s anti-gambling laws for activi-

The test of the character of a game is not whether it contains an element of

ties conducted over the Internet direct-

1) A skillful player will win more than an

chance or an element of skill, but which

ly into people’s homes is a matter re-

unskillful one.

is the dominating element. People ex

served for law enforcement, the state’s

rel. Ellison v. Lavin, 179 N.Y. 164, 71 N.E.

district attorneys and Attorney General,

2) Skill can be learned from experience,

753, 66 L.R.A. 601. It was within the

not gaming regulators.

from real or mock play.

province of the trial court to determine this question. Brown v. Board of Police

There are also due process concerns.

3) Skill games require a knowledge of

Commissioners, 58 Cal. App. 2d 473,

Chairman Burnett has declared DFS op-

mathematics.

136 P.2d 617.

bling laws. But the DFS operators were

4)

If a hole-in-one is predominantly skill,

not given their day in court. In fact, they

skill.

erators as violating Nevada’s anti-gamSkill games require psychological

then surely DFS is also not gambling.

were not even given the chance to have

INFINITY GAMING

55

FEBRUARY 2016

The DFS operators had no choice but to file suit. If they had continued to take real-money players from New York without court permission they risked being arrested. FanDuel’s headquarters is in New York City. But even DraftKing, with corporate offices in Boston, would easily be extradited.

Being charged with a crime is always

The last is most significant: It means that

It is always dangerous to make predic-

bad. But there are several legal consid-

the courts should allow the DFS opera-

tions in writing. By the time you read

erations that would make the situation

tors to keep taking New York patrons

this, the first hearing in New York will

even worse for these DFS operators.

until a full trial can be held.

have already occurred. But I will go on

Under both state and federal case law,

record as predicting that the court will

once a state criminal action has been

A preliminary injunction is an extraor-

not close down either DraftKings or Fan-

filed, the defendant cannot then ask a

dinary remedy. Courts are required to

Duel with a preliminary injunction.

civil court to hear the case. State civil

balance the hardships of the plaintiff

courts simply will not hear any claim

and defendant and also take into ac-

It is much more difficult to predict which

that the criminal statute is unconstitu-

count the public interest. In this case,

side will win a full trial for a permanent

tional or that the prosecutors are mis-

if the A.G. wins, two thriving businesses

injunction. But I have another predic-

interpreting state law: These and any

would be shut down, throwing dozens

tion: If the DFS operators are allowed

similar complaint can be raised as a

if not hundreds of people out of work,

to stay open in 2015 that trial will never

defense in the pending criminal action.

even if the DFS operators eventually

take place.

Federal courts do have the power to in-

won at trial.

their rich and powerful media allies will

DraftKings, FanDuel and

use their enormous political influence

tervene, but the U.S. Supreme Court has told lower federal courts to abstain; that

And what would be the hardship to the

to get the New York Legislature to pass

it would undermine “Our Federalism” to

state of New York if the DFS operators

a law making most of their operations

prevent a state criminal trial from going

were allowed to continue? DraftKings

legal.

forward, even if federal constitutional

was founded in January 2011; FanDuel

issues are at stake.

is even older, started in 2009. Attorney

They may have to give up daily games

General Schneiderman is going to have

and be limited to real athletic events

So, the DFS operators had to file for a

a tough time convincing a judge that

that take place on at least two days.

temporary restraining order to prevent

the state will suffer some irreparable

events that take place on at least two

being arrested while they prepared for

harm if the companies were allowed

days.

a preliminary injunction hearing with

to continue in business until a full trial

quired to be regulated.

expert testimony. In an interesting de-

can be held. What’s the emergency? If

velopment, New York Attorney General

daily fantasy sports is such a clear and

But there is too much money at stake to

Eric T. Schneiderman agreed to let them

present danger why did the state let it

see daily fantasy sports disappear any

keep taking players from his state, at

continue unmolested for half a decade?

time soon.

least until the court could conduct a

If DraftKings and FanDuel were a public

more thorough hearing. He also filed

nuisance they could have been closed

his own complaints to shut them down,

down with injunctions years ago. And

using the civil rather than criminal jus-

if they were so clearly breaking the law,

tice system.

they could have been arrested.

And they will certainly be re-

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58

FEBRUARY 2016

Interview with Dag Hascal CEO & Owner Croc’s Casino Resort Costa Rica

Dag thank you for speaking to us today, you are the owner and CEO of Croc’s Casino Resort in Costa Rica, can you start by telling us about the resort and when it opened?

So it is a family affair the new venture, how much input and creative control will you have Dag?

equipment at very competitive pricing.

The entire process was seamless from start to finish of our project, their quality of service is second to none in their

I like to offer my creative input and

industry.

empower the Team to utilize that information appropriately based upon their Croc’s is our best expression of community

culture,

customer

own expertise.

service,

class and superb construction. Our Grad Opening was February 12, 2015.

Would this be the first of many or will

The resort opened back in February 2015, how has it been received since you opened?

Croc’s Casino Resort be a one off?

For all our international readers what is the situation in Cost Rica, are local players allowed to gamble and is there much competition in the way of casinos there?

All players worldwide are allowed to gamble in our casino. The legal age to

We have been recognize both domesti-

gamble in Costa Rica is 18 years old.

We have no current plans for physical

cally and internationally by many Media

There are others Casinos in Costa Rica

Expansion, but our Brand has a Life of

and Business Institutions, and com-

however at Crocs’ Casino Resort we are

its own.

bined with our 5 star International rat-

proud to say we have the number one

ing. We are the Hottest Destination in

Casino in all of Costa Rica. Our poli-

Costa Rica!!!

cies and the newest technology in the

The day to day operations will be run

by Rory Hascall, can you tell us about

games set us apart from all competitors.

TCSJohnHuxley supplied the equipment for the casino, how pleased are you with their service and quality?

Where did you manage to find the casino staff and dealers, are they from Cost Rica?

ing. He has a long experience in Las

TCSJohnHuxley is a highly professional

Our entire Casino staff are Costa Rican

Vegas Casino.

gaming equipment manufactures. They

residences, we personally trained our

were selected for our project because

dealers to provide the ultimate guest

they provide the highest quality gaming

experience in the gaming industry of

Rory please?

Rory is a brilliant and Determined Leader who pushed the opening of this project in 18 months which was Astound-

INFINITY GAMING

FEBRUARY 2016

Costa Rica and worldwide.

guest services.

When was the idea for the resort first thought of?

The resort offers more than just gambling with the sale of condominiums, what does this offer potential buyers?

Five years ago Rory and I had a Fun reunion evolving Crocodiles, and the vi-

My hope is that Crocs provides wonderful experiences and memories for our guest that they will want to share with

sion cast at that time is what you see

Croc’s Casino Resort is one of a kind

today.

unique development in Costa Rica. Our

The management for the casino are they from the US?

Finally Dag what is your hopes for the resort in the future, what type of customer are you looking for?

everyone.

44 private owner’s turnkey condo resi-

We are booking for Costumers both

dence, with our 152 Hotel rooms, with

domestic and International that expect

so many more additional amenities is

and appreciate our Las Vegas style Ca-

why after only been open six months

sino and awards winning 5 Star service.

The entire Casino management team

we were award the number one Luxury

are Costa Rican residence and have the

Resort in all of Costa Rica.

highest level of integrity, ethics and

INFINITY GAMING

59

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