Infinity Gaming Magazine April 2022

InfinityGaming www.gaming-awards.com | ISSUE136

BRAZIL GAMBLING BOOM

ISAI SCHEINBERG IGA AWARD 2022

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

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34 VIDEOSLOTS AFTER PARTY

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12 OUSTANDING RECIPIENT

21 IGA AWARDS WINNERS

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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4 EDITOR NOTES Editor welcomes you to the latest edition of Infinity Gaming Magazine.

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

36 RE-SHAPING GAMBLING 43 HOLLAND STRUGGLES 44 AUSSIE REGULATORY ISSUES BBIN CHAMPAGNE RECEPTION

49 MACAU HOPES 52 BRAZIL BETTING BOOM

UKRAINE SUPPORT +

NEWS & MORE NEWS from the gaming industry

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A note from the editor Then came the ceremony itself and congratulations to all the winners, we know what a trying time it has been over recent months and years, so very well done to you all. Indeed reaching the finals in so many competitive categories is recognition of your achievements.

This year we also recognised probably one of the best known names within the

What a Night!”

online gambling industry, he certainly made his mark within the sector and

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

doubt there are few people that would disagree that Isai Scheinberg deserves

Lana Thompson - Editor

the Outstanding Contribution Award. A man that very rarely is seen in public let alone gaming events, but this is the IGA Outstanding Contribution Award, the

Special Edition of the IGA 2022 Awards

highest accolade there is.

After Party and all who was there knows

Welcome to the latest edition of the

We want to thank all our wonderful

Infinity Gaming Magazine and also the

sponsors for making the IGA such an

special feature for the 2022 Interna-

amazing and special event.

tional Gaming Awards (IGA) that took place on Monday 11th April at the stun-

Enjoy this special edition of this maga-

ning Savoy Hotel in London.

zine.

What a very special day it was, to see

“To Infinity and Beyond!”

so many companies back attending and celebrating their achievements over the

Regards,

past year. It was also a time to recognise

Lana

having with their colleagues suffering in Ukraine and indeed we, with your help raised thousands on the evening in support of Save the Children in their work in the country, so thank you all.

Thank you to BBIN for hosting the Champagne Reception it was a truly glamorous affair and a superb start to the evening.

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Finally we had the superb Videoslots what happened there!

the difficulties many companies are

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

The Editor

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 products, technology and current affairs with the sector the Infinity Gaming Magazine is delighted to showcase our superb line-up of contributing

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 re-engineering, project management, research, business analysis and development, to start-ups and

established multi-national operators and providers, gambling regulators, law enforcement and government agencies, media, and specialist interest groups and associations within the sector, in both established and emerging markets across the world.

t

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.

Working closely with the betting and gaming industry, She developed strong links delivering Social Respon-

sibility and Problem Gambling training around the world, Teresa now works independently consulting on all issues relating to Social Responsibility and Problem Gambling.

To contact Teresa regarding consulting please email:

Andrew Cosgrove - Slots Guru Andrew Cosgrove is a seasoned slot operations veteran and certified project manager with over 24 years of hands on experience in Latin America and the Caribbean. Andrew has worked on both the operator and supplier side of casino slots and continues to help clients succeed and exceed customer expectations.

Andrew can be reached at andy.cosgrove@hemingwaycasinoconsulting.com or see http://hemingwaycasinoconsulting.com/

Lynn Pearce de Freitas Lynn has extensive senior management experience in online gaming. She is an experienced, data-driven, commercially focused, strategic marketing leader. She has over 15 years of proven success in gaming, from land-based casinos, to online gaming companies offering sports betting, poker and casino, live casino and Esports. Lynn has many start-ups under her belt

and is now co-founder and CEO of a start-up igaming company, Mobius Interactive Ltd, headquartered in Vancouver BC Canada.

Tim Cullimore From dealer to CEO in the U.K., Europe and North America, Tim has pretty much seen it all in Casino gaming. For over 40 years, from running slot rooms which needed to frisk for guns to the Ritz in Mayfair, arguably the most luxurious casino in the world, Tim has never stopped challenging what we think we know about casinos.

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Tim is a well-respected Consultant to the gaming industry, encompassing project management and operational analysis, as well as representing and advising some key manufacturers within the industry. Tim is a renowned conference speaker and also proud to be visiting lecturer at the University of West London College of Hospitality and Tourism.

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GAMING NEWS

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DAZN Teams Up With Pragmatic To Develop Sports Betting

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ports subscription service, DAZN, have struck a deal with Pragmatic Group, which involves both the ‘Pragmatic Solutions’ and ‘Pragmatic Play’ arms of the content producer’s subsidiary model, which will generate a completely new business entity, based in Gibraltar.

DAZN have been keen to respond to growing consumer demand for ‘recreational in-play’ betting, and the deal with Pragmatic will facilitate the creation of an integrated gambling product, allowing customers to bet as they simultaneously stream their live subscription content. Strategically, DAZN have positioned the initial launch of this service in alignment to

the start of the European soccer season in a few months’ time. The media group has influence in a number of soccer-mad territories, including Austria, Germany, Brazil, and Spain.

Peter Parmenter, DAZN’s Senior VP within its business development racket, said although this new betting product will run parallel to its subscription channel, there is a desire to consolidate all of DAZN’s offerings into an all-encompassing platform.

Furthermore, senior leadership teams made it clear that the sports subscription element would remain the core business focus, although they would continually look to develop new revenue streams. Nevertheless, Shay Se-

gev, DAZN’s Group CEO, emphasized that the agreement with Pragmatic Group would enable the company to be fit for the future, and offer customers an exciting new way to engage with sports content. ‘’The convergence of sports media and betting is the future’’ said Segev, adding, ‘’this historic partnership brings together the leading sports media company and a technology partner who is committed to developing innovative experiences for fans.

It underscores DAZN’s commitment to revitalise the sports viewing experience by offering a broader spectrum of digital entertainment for fans’’

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2022 INTER

GAMING

AT

SAVOY

11th April 2

S E C T I O N T I T L E

ERNATIONAL

G AWARDS AT T H E

OYHOTEL

pril 2022 London 1 1

Outstanding Contribution Award Isai Scheinberg

A Special Moment The IGA works closely with family and work colleagues to ensure the biggest and most important award is a special moment in the recipients life and this year was the same for Poker Stars founder Isai Scheinberg

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A Special Moment

Watching the award video

Thank You

To celebrate the outstanding achievement of our recipient, the IGA Team go through many images of the awardee given by family, friends and colleagues to make the presentation very special.

The IGA Team spend many long hours ensuring the evening Outstanding Award presentation is tailor made to the recipient to make it as personal as possible, our team this year once again succeeded.

The Outstanding recipient Isai Scheinberg makes his acceptance speech to a standing ovation at the Savoy Hotel Ballroom. A very rare moment for all in attendance to see and hear from the Poker Stars founder.

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14 MAG A Z I N E

The Champagne Reception Sponsored by BBIN

Above Our Champagne Reception sponsor BBIN organised an excellent start to the evening 1 4

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W

hen you have a chance to speak to some of the leading figures from the online and land based

gambling industry Clever Duck Media and our interviewer Lauren Morris did not miss the opportunity.

The team were on hand to turn on the lights and record some truly memorable moments from the Champagne Reception sponsored

by BBIN. The reception party was in full swing thanks to the superb music on offer.

With the champagne flowing for the first time in 18 months attendees were delighted to network at the first major event back in the gaming industry.

As always with the International Gaming Awards there were some glamorous dresses by the ladies and all the men dressesd to impress.

This is a night for the entire gambling industry to get together and celebrate theirs and others achievements.

The setting for the 2021 International Gaming Awards was the Savoy Hotel London and attendees were treated to the highest level of service only one of the most exclusive hotels in the World can deliver.

Everything was in place for what was going to be one of the best nights ever for the awards ceremony and all those in attendance.

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Above Photos Relaxing at the Champagne

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MAG A Z I N E

Right IGT

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S E C T I O N T I T L E

Above Netwroking at the Champagne Reception Left Celebrating being back to face to face events

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Above & Right Everywhere you looked great dresses and the men were well dressed too.

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S E C T I O N T I T L E

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And the winners are....

Left SA Gaming Winner Australia/Asia Focused Technology Supplier of the Year

Below Yolo Group Wins Best Customer Service Of The Year

Below Kindred Bingo Operator Of The Year Award

Below Casino Operator of the YearCasino de Monte Carlo

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Above Galaxy Entertainment wins Charitable Community Award (Operator) Left Microgaming wins Charitable Community Award (Supplier)

Below UltraPlay winner of eSports Betting Software of the Year

Top Right Game of the Year goes to Just For The Win with “Scarab Kingdom”

Right Betsson awarded Best Place to Work Award (Operator)

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MAG A Z I N E

Above Best Place to Work Supplier Award went to Raketech

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S E C T I O N T I T L E

Above Pilot Games wins Unique Gaming Company of the Year

Left Pragmatic Play scoops iGaming Software Supplier of the Year

Right Feedconstruct wins Innovator of the Year (Supplier)

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Winning an award You got to thank people MAG A Z I N E

Above Innovator of the Year (Operator) goes to Rootz Ltd Right Pragmatic Play wins one more award picking up Lice Casino of the Year

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Top Photo Coolbet wins Mobile Operator of the Year Above BBIN Awarded Lottery Product of the Year Left Checkd Group wins Mobile Sports Product

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28 MAG A Z I N E

Above Multi-Channel Provider of the Year goes to IGT

Above Winner Videoslots Online Casino Operator Right 888Poker wins Poker Operator of the Year

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29 S E C T I O N T I T L E

Above Online Gaming Operator of the Year - LeoVegas Below OnAir Entertainment - Rising Star of the Year

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And The Winners are The Stage Photos

Above Yggdrasil wins RNG Casino Supplier Right Videoslots wins Slots Operator of the Year

Above Safer Gambling Operator of the Year Betsson Below Scientific Games picks up Sustainable Business of the Year

MAG A Z I N E

Above Digitain wins Sports Betting Platform of the Year

Above Melco Resorts wins Sustainability Award Right OpenBet wins US Focussed Technology Award

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Above Scientific Games - US Gaming Company of the Year

Above Sports Betting Operator of the Year William Hill

Below Bragg wins Technology Provider/Supplier

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How Investment Groups Are Re-Shaping Gambling

L

ike so many sectors, the durability of the gambling industry has been rigorously tested over the past two years. As the pandemic ripped indiscriminately through global populations, the proverbial commercial goalposts have kept moving further and further away. An unprecedented raft of curbs on social freedoms, a seismic shift in customer behaviour, and a colossal downturn in consumer confidence, all served to present businesses with the toughest set of trading conditions since the Second World War. However, while some markets succumbed to the tangible pressures borne out of the coronavirus crisis, the gambling sector remained broadly resolute and steadfast in its operations. This is all the more impressive when you consider the traditional environments that this industry relies upon. The energy, atmosphere, and vigour generated by the casino floor was suddenly withdrawn, with venues subjected to a host of draconian measures. Establishing a feel-good gaming ambience whilst respecting restrictive social distancing rules, wearing masks and capping attendances is almost impossible. Clearly, temporary closures

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during rolling lockdowns left casino concessionaires with an even greater headache. Furthermore, the mass cancellation of sporting events left sportsbooks without fixtures and competitions to offer odds on. Bingo halls, national lotteries, and card schools also faced into the abyss.

So, how have casino and sports wagering operators pulled through this tumultuous period? A partial contributor is the way in which these companies seamlessly adapted to a radically changing landscape. With bricks-and-mortar buildings under lock and key, particularly in the early days of the pandemic, players sought alternative avenues to gamble. Those who had frequented casino facilities, or perhaps visited sports betting retail outlets, were suddenly presented with a dilemma. However, through a huge shift in focus towards the online arms of their respective businesses, operators were able to facilitate a sharp, sudden, and dramatic incline in app usage. Of course, online markets have presided over substantial growth for some time now, but no one could have pre-empted this spike in activity. In the context of a worldwide pandemic,

for customers, it quickly became the mobile phone screen, or nothing.

Nevertheless, there is a less well-documented factor which has enormously supported sector resilience in the last 24 months. Private equity firms, venture capitalists, and SPAC investment groups have continued to circle the industry for opportunities, and shown no hesitation in swooping down on potential prospects. Despite chaos reigning supreme across global economies and financial institutions, these investors have maintained a level of consistency in their approach, perhapsunseen elsewhere. In this way, an almost self-fulfilling prophecy has started to materialise.

As investment companies continue to demonstrate unshakeable confidence and belief in the future prosperity of gaming markets, the industry responds in kind, projecting the image of a calm, controlled and stable environment. These efforts have conspired to produce some major acquisition activity, providing the elusive funding which has escaped so many industries amidst the worse economic episode in a generation.

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In 2021 alone, cash spent in takeover

four-fold on the twelve months prior.

catalyse even stronger investment ac-

deals tipped the scales at over $7bn,

Although there was a persistent drum-

tivity, perhaps best illustrated by Black-

which was approximately a $2bn uplift

beat of buy-outs throughout 2021,

stone’s landmark takeover of Crown

on the previous year. Clearly, given the

there were also some marquee ‘merg-

Resorts. The ailing Aussie operator is

ever-changing conditions at play, it’s

er’ moments. A serial investment op-

currently still reeling from the impacts

difficult to draw any like-for-like con-

portunist throughout last year was the

of a damning Royal Commission probe

clusions from these numbers. However,

Apollo Global Management firm, with

on its illicit financial exploits, but Black-

its arguable that the marketplace vola-

its takeover of the Great Canadian Gam-

stoneremained committed to a deal

tility experienced in 2021 was as bad,

ing companyproving to be a particularly

it had stalked for over a year. The New

if not worse, then that encountered in

lucrative deal. The Ontario-based outfit

York-headquartered company paid out

2020. Indeed, it must be remembered

were given $2.6bn in return for busi-

a record-breaking $6.2bn to add Crown

that in the first year of the pandemic,

ness ownership, with an overwhelming

to its investment portfolio, offering the

COVID-19’s grip on society only began

percentage of these funds allocated to

casino concessionaire an all-cash deal

to take a strangle-hold towards the end

the purchase of their hallmark property

worth 32% more than its share price

of March. Furthermore, as the virus be-

on the Las Vegas strip, ‘The Venetian’.

valuation.

gan to mutate, 2021 saw the navigation

Alex Van Hoek, a leading official from

of a series of variant scares, which put

the Apollo group, stated at the time that

However, evidence of large-scale ac-

intense pressure on governments to in-

its efforts to acquire the Nevada resort

quisitions is not just contained to the

crease the volume and intensity of so-

‘’underscores our (Apollo’s) conviction

gaming space. In the U.S, the Supreme

cial restrictions.

in a strong recovery for Las Vegas as

Court’s decision to overturn historic

vaccines usher in a reopening of lei-

sports wagering legislation has facilitat-

The vast majority of this investment

sure and travel in the United States and

ed meteoric sportsbook handles across

came thanks to the role of private equi-

across the world’’.

a large swathe of its native states. Now,

ty and SPAC enterprises, who ploughed

over thirty jurisdictions preside over

an eye-watering $6.3bn into acquisition

Fast-forward six months, and you can

some form of sports betting market,

endeavours last year. Venture capital-

see Van Hoek’s words coming to frui-

with seemingly relentless growth at-

ist stakeholders nearly contributed

tion. The gradual, further easing of COV-

tracting a range of investment suitors.

$1bn, extending their input by almost

ID limitations on society has helped to

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Investment Re-shapes Gambling

‘’The opportunity in sports betting is just getting started’’ claims Wayne Kimmel, founder of SeventySix Capital, a Philadelphia-based firm who specializes in investment opportunities within the sports gambling theatre. He believes that the American industry will see another eight to ten states join the party in 2022, with almost a full complement of local bodies establishing a sector within the next two years. Kimmel’s projections for the medium-term future are difficult to challenge. The number of states embracing sports wagering pursuits is accelerating exponentially, desperate to tap into an enterprisewhich is returning legislature’s massive amounts in revenue taxation. In January, New York’s online sportsbooks generated $124.1m in gross gaming revenue; 51% of this found its way back

into state coffers.

However, it’s not just operators that are getting a slice of the action. As the bourgeoning sector welcomes increasing levels of activity, it evolves to protect its assets and accentuate its performance. A range of consultancies, compliance experts, and software developers jockey for position in a market that accelerates at a rate of knots beyond anyone’s initial predictions.

Indeed, these newly-arrived players have a vital role in maintaining this trajectory, and ensuring that commercial and regulatory procedures stay relevant and advantageous. This is something that SeventySix Capital investment group have placed particular emphasis on, outlined through their recent buy-out of Odds-On Compliance, an

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organization dedicated exclusively to the preservation of gambling operator performance.

Nevertheless, takeover initiatives have not been limited to the American sphere of influence, with plenty of action occurring in other parts of the planet. One example of this is the considerable activity within the UK, whereby several well-publicized acquisition attempts have come to pass. Paul Breen, a senior advisor with real estate services provider, Savills, suggests that ‘’interest from private equity groups in the casino sector has certainly been increasing in recent months’’, adding ‘’the sector has been understandably been hit hard by the pandemic but there is a real sense of optimism that we have seen the worst of any disruption’’.

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Investment Re-shapes Gambling

There are examples of legislatures across Europe taking an equally tougher stance. The Dutch government has taken decisive action against unlicensed online gaming merchants, and the Swedes have been ruthless in capping bettor deposits and play time, as well as clamping down on the volume of bonus offers advertised to customers. Indeed, many state apparatus’ have intervened in their respective gambling sectors, conscious of the chastising economic impact the pandemic has had on its citizens.

However, perhaps the most telling sign of returning sector confidence comes in the shape of investment in the country’s retail units. Pursuing a stake in a land-based industry, ravaged by intermittent shutdowns during the height of the pandemic, demonstrates the level of strength in the market currently felt. When Caesar’s Entertainment resolved to sell itssuite of over 1,400 William Hill outlets throughout the UK, there was certainly no shortage of suitors. A fierce bidding war between prospective operators eventually ended when 888 Holding’s secured one of the UK’s biggest sportsbook brands for a cool £2.2bn. Later that year, Irish gambling giant Flutter Entertainment purchased Sisal, a leading sports wagering firm based in Italy’s industrial north. This deal was worth

just shy of £2bn.

Yet, free-spending investment behaviour, at least in a UK context, may soon be under threat. After a protracted review process, partially delayed due to the overriding government focus on the pandemic, Westminster could soon oversee a seismic re-calibration of gambling regulation. This is likely to involve measures which conspire to cut promotional initiatives, increase financial checks and balances, and place greater demand on operators to protect vulnerable players. Although some of the methods introduced will undoubtedly strengthen the integrity of the market, it could in theory serve to also detract potential investors, concerned with a saturation of commercial opportunities.

Yet, most industry stakeholders would agree that some increased regulation was favourable, if not essential. True, the emergence of extra measures seems to have been greeted as simply a new framework for commercial and social operations, rather than a mass infringement on trading freedoms. The sector remains optimistic that the huge level of outside investment will continue unabated, regardless of some additional precautions that operators across Europe (and beyond) may need to undertake.

Additional legal covenants and increasing social accountability will always generate some element of risk for prospective suitors, but surely not enough to derail recent investor interest from private equity groups and venture capitalists.

It would perhaps be naïve to state that the gambling industry has fully recovered from the punishing impacts of a merciless global pandemic, but a continuation of external funding can only aid progression toward complete normality in the coming months.

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GAMING NEWS

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iGaming Fails To Help Holland Casino

H

olland Casino has announced a significant annual fall-off in performance for the year of 2021. Compared 2020, a year which enjoyed two completely COVID free months in January and February, revenues dropped nearly nine percentage points.

countable for €152.4m of the overall €304.2m generated in gross gaming revenue last year, tracked at -18% on the previous year. Table game enterprises fared even worse, delivering just over €94.1m, over a quarter down on 2020 revenue.

However, given the draconian limitations on bricks-and-mortar play, declining returns are perhaps an understandable output of a COVIDravaged year. In 2021, casino venues were closed for almost half of the full calendar year, and, even when they were open, they were still subjected to considerable curbs and restrictions.

Attendance caps, social distancing and mask-wearing all conspired to undermine the ambience of the casino floor.

However, there were some green shoots in the performance landscape.

Holland Casinos new iGaming platform, despite not having enough momentum to eat up the 9% bandwidth between 2021 and 2020 returns, still recorded impressive numbers. Netherlands’ nascent online gaming industry launched in autumn last year, with ten licenses granted to local concessionaires. Holland Casino’s successful gaming application contributed a fifth of total marketplace revenue.

The slot vertical, which was ac-

The firm also used a quieter 2021 to

re-align its costs efforts, and managed to tighten its belt quite substantially.

Total operating losses came to €60.9m, a staggering 22.5% improvement on 2020. In his summary of the results, Chief Financial Officer, Ruud Bergervoet, championed this profitability work, and also thanked the government for their input during the chaos of the last 24 months. ‘’Despite the negative figures, we are in good financial shape at the core.

This is partly thanks to the agility of Holland Casino and to the government support, which enable us to retain a large proportion of the jobs in our company’’ said Bergervoet adding, ‘’we also looked at how we could manage the organisation as a whole more efficiently and effectively’’.

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How Bad Is Australia’s Current Regulatory Crisis?

I

n recent months, Australia’s native casino industry has presided over somewhat of a regulatory crisis.

Although the number of culprits in this unfortunate episode are limited, the depth of their disregard for the rules has caused significant alarm across the sector. Indeed, it raises the fundamental question of whether these acts of serious contravention were isolated to a select group of rogue operators, or if their practices are characteristic of approaches amongst other gaming companies. Furthermore, and perhaps of greater concern, is the fact that these disparaging revelations have also exposed inefficiencies within local regulatory and governmental procedures, and even raised question marks with regards to their own integrity.

Crown Resorts, for so long the lynchpin of the Aussie gaming landscape, has emerged bruised and battered from a series of ongoing criminal investigations. Numerous weeks of probes and reviews, alongside a considerable amount of soul-searching, has left the casino operator with an extensive to-do list. A set of actions that it must

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address both swiftly and effectively; if it wants to keep its ahead above water.

Indeed, the latest enquiry, the third of its type in an extremely short period, seems to have delivered the final ultimatum to Crown. The ailing firm must now get it’s your house in order, or face total closure. The recent analysis of Crown Perth’s fiscal operations returned equally grave results as the investigations conducted into it’s Melbourne and Sydney venues prior.

The Western Australia site, based at the Burswood Complex in central Perth, was subjected to an eye-watering 59 recommendations following a brutal dressing down by the Royal Commission. The in-depth study highlighted a disturbing array of financial practices.

This included a malfunctioning detection system for unearthing instances where money laundering has occured, links to criminal junket networks, and complete failures in their social responsibility towards vulnerable groups.

The Royal Commission used the rather euphemistic description of ‘numerous deficiencies’ to summarize their findings.

Now, due to earlier issues cited at casinos in Melbourne and Sydney, the under-pressure concessionaire finds itself ultimately on a two-year probation period. Indeed, the Royal Commission has determined that the staggered terms of its remediation programme must be met throughout the 24-month period, or the group will be permanently revoked of its gaming license.

Crown are already walking a tightrope at its Melbourne facility, located on the banks of the city’s Yarra River. AUSTRAC, the Australian Transaction Reports & Analysis Centre, has initiated legal proceedings against the group, after a dual investigation into Crown Melbourne and Crown Perth, with the latter site reviewed prior to the Royal Commission’s involvement. Both outlets were judged to have fell well short of industryapproved anti-money laundering and counter-terrorism financing measures, and also failed to establish robust compliance around customer registration and wagering behaviour. Unfortunately for Crown, these developments served to add further scrutiny on its fledgling Sydney site, situated within the

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Barangaroo area of the city’s com-

Against a backdrop of compelling alle-

Yet, the drama hasn’t just been reserved

mercial district. Since its creation, the

gations in other provinces, the GWC’s

for Crown, the largest casino heavy-

luxurious resort has been used in a

excuse for inactivity seems, at best,

weight in the land down under. This dis-

non-gaming capacity, given the gradu-

extremely weak. Western Australia’s

astrous chapter in Australia’s regulatory

ally increasing focus on the company’s

government officials were slightly more

history has been further accentuated by

alleged illicit activities. A gambling li-

candid in their response, accepting full

fresh allegations leveraged towards a

cense has been provisionally allocated,

accountability for their role in Crown

different concessionaire; the Star Enter-

but the jury is well and truly out on how

Perth’s demise. Toni Buti, the territory’s

tainment Group. Indeed, full details are

long this seemingly brief stay of execu-

Racing and Gaming minister, expressed

yet to be uncovered, but it seems the

tion will last.

his regret at the legislature’s apparent

Brisbane-based entity have followed in

lack of control over its gaming space,

the footsteps of their much-maligned

However, as referenced, Crown didn’t

and promised to heap further pressure

competitor, by engaging in several ille-

materialise as the only losers amidst

on the region’s regulatory organization.

gal financial acts. A public hearing has

this debacle. The Royal Commission,

been set-up in response to recent con-

whilst drawing its conclusions on

‘’It is clear that over decades, standards

cerning reports, however, it seems now

events at Burswood, also discovered

have eroded, integrity has been lost,

that initial flags raised in October last

serious inadequacies in the efforts

and the transparency of Western Aus-

year were built on legitimate claims of

undertaken by the Western Australia

tralia’s casino operators has diminished.

wrongdoing. It’s understood that Star’s

regulator, and also that of local govern-

In many cases, Crown has demonstrated

New South Wales venue, again located

ment ministers. The Gaming and Wager-

poor corporate citizenship’’ said minis-

in Sydney, conspired with organized

ing Commission were reprimanded for

ter Buti, in the wake of the Royal Com-

criminal syndicates, facilitated fraud

their inability, despite overwhelming

mission’s report. He went onto add, ‘’it is

on an unprecedented scale, and suc-

evidence, to address Crown Resorts’, to

a privilege to hold a gambling license in

cumbed to unregulated foreign interfer-

put it mildly,undesirable enterprises.

Western Australia, and the Royal Com-

ence within its operations. Furthermore,

Rather feebly, the regulator identified

mission has shown that Crown has, at

an examination into Star Sydney’s lam-

an internal company stakeholder as be-

times, abused that privilege. Crown

entable approach, conducted by a small

ing particularly ‘persuasive’, suggesting

needs to do better but the state’s regu-

band of local media outlets,

that their evaluation of transactions was

lator also needs to do better’’.

largely influenced by this individual.

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Australia’s Regulatory Crisis cal brand makeover, and flush out misguided policies and procedures.

Crown’s outgoing board of directors may also attest to an about turn in approach, with nearly all of the firm’s senior leadership team having left as a result of the chaos.

However, they’re not the only casualties of this regrettable affair.

Matt Bekier, former head of Star Entertainment, is the latest to exit stage right. The much-criticized leader stepped down at the end of March, with an internal spokesperson announcing that ‘‘Bekier said the right thing to do was for him to take responsibility’’ However, interestingly, an official departure date for the exiting CEO is yet to be confirmed. identified a policy of targeting ‘high-roller’ players with criminal connections, in order to generate additional funds from its illegal channels. Only last month, Star declared that it had accidentally underpaid its employees by a colossal A$13m ($9.78m) after a routine six-year payroll review. Given the company’s chronic administrative failures, this hardly came as a surprise. Visibility of any pending punishments are yet to surface; nevertheless, it’s hoped that sanctions will be proportionate to the scale of the operators’ transgressions.

However, has the shame, public embarrassment, and potential of further penalties been enough to warn off Crown Resorts, Star Entertainment, and any other suitors from engaging in this sort of activity? Perhaps.

The two organizations have certainly made the right noises. Crown has already stated its intention to become ‘a leader in the industry’ when it comes to compliance and

social responsibility. This rhetoric will surely be taken with a pinch of salt amongst Australia’s gambling ranks, nevertheless, the under-fire group have started to put their money with their mouth is. The firm’s rather over-worked attorney, Kanaga Dharman and a, has stated that improvement measures to address issues have been delivered at ‘’great financial cost’’. Steve McCann, the Melbourne-based operators chief executive, was also quick to highlight the level of investment, stressing that funds have already been directed towards the development of its ‘people, systems, processes, culture’ and that there is renewed ‘focus on responsible gaming and the prevention of financial crime’.

Moreover, investment firm Blackstone Group, headquartered in New York, looks to have finally struck a deal to acquire the Aussie operator. The company had flirted with a takeover last Spring, but are now just awaiting regulatory and shareholder approval of a revised bid placed in February this year. This could pre-empt a radi-

It’s hoped that this continuing soap story will provide a warning shot to the sectors other gaming powerhouses, and echo around the rest of Australia’s gambling battlegrounds. True, Nicole Rose, the CEO of AUSTRAC, whose organization so ruthlessly pulled apart Crown’s Western Australia and Victoria enterprises, delivered strong words of caution. In the wake of her team’s findings, she stated, ‘’this is an important reminder to all casinos in Australia that they must have a strong anti-money laundering programme in place to protect their business and community from serious and organized crime’’.

Whether Rose’s chastising comments will be enough to deter Aussie’s casino concessionaires from veering towards illicit financial endeavours remains to be seen. However, the next misguided operator may not be afforded the same level of patience as the industry’s recentregulatory rule-breakers.

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GAMING NEWS

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Macau Hopes Rise As Guangdong Restrictions Ease

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hina’s tough COVID curbs have continued to undermine the commercial performance of Macau’s six casino operators in recent months. As many native governments ease long-held restrictions, a surge in Chinese cases has led Beijing to intensify controls on travel and social freedoms.

However, casino concessionaires in the semi-autonomous region have received a modest shot to the arm this week, as travel stipulations into Macau from nearby Guangdong begin to very slowly relax. Visitation from the Chinese province is often perceived as the lifeblood of the city-states gambling sector, with colossal numbers regularly pouring over the border before the pandemic.

Macau’s Novel Coronavirus Response and Co-ordination Centre announced yesterday that as of this morning, persons entering the territory from Guangdong would only have to produce a negative COVID-19 test result within 48 hours, as opposed to the24hours timeframe installed in midMarch. The change may seem slight, but for a state starved of footfall, any loosening of limitations will feel like a significant boost. Indeed, the Macau Government Tourist Office has already announced that it now expects daily visits to eclipse 20,000 during the May Golden Week celebrations next month.

ited said yesterday that Macau’s April’s gross gaming revenue will ‘continue to be weak’, a trend they assume could well carry on until May. Vitaly Umansky, a researcher based at the firm, also emphasized the increasing restrictions on other regions, ‘’The city’s arrivalquarantine requirement has extended to travellers from over 40 cities in 23 provinces- approximately two-thirds of all Chinese provinces’’ Any persons travelling into Macau from outside China are still subjected to strict quarantine rules. Indeed, the mainland is the only territory whereby visitors need not engage in an isolation period.

Nevertheless, the overriding feeling still seems to be one of caution and unease. Industry analysts Berstein Lim-

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GAMING NEWS

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Massachusetts Sports Betting Moves Closer

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assachusetts protracted journey towards establishing a native sports betting industry has received a huge shot in the arm this week, after a specialist Senate Committee advanced House Bill 3933 to the next legislative stage.

Gambling stakeholders in the Bay State have had to endure a prolonged period of inactivity, with lawmakers in the Senate Ways and Means Committee, the body charged with processing the proposal, hesitant to progress the bill without presiding over a lengthy due diligence campaign. As of last

Friday, this has now been satisfactorily completed.

House Bill 3933, which details a provision for three commercial casinos to be constructed within the state, was originally forwarded through the House of Representatives last summer. The proposal gained unilateral support in the House, with 156 out of 159 members voting in favour of the provisional legislation.

Nevertheless, the bill has sustained some changes as a by-product of Senate readings, and therefore looks a little different to the original plan

passed by the House of Representatives in July 2021. The directive permitting bets on local collegiate teams has been stripped out, and taxation rates have been subjected to a considerable increase. In the initial draft of HB 3933, and operator was set to be taxed at a rate of 12.5% of retail revenue, and 20% of online GGR, this has now been adjusted to 15% and 35% respectively.

The bill will now be officially debated in the Senate chamber, with discussions commencing this Thursday, 28th April.

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BRAZIL SET FOR BETTING BOOM

F

or almost a century, Brazil’s colossal population has been subjected to restrictive gambling rules, limiting gaming activity to a handful of modest pursuits. Native players could only engage in state-operated lottery draws, low-value scratch cards, and the odd horse racing wager at approved venues. However, since

2018, a new era of gambling liberalisation has been slowly ushered in.

Indeed, the Brazilian government’s landmark decision to overturn decades-old prohibitive sports betting legislation has catalysed this movement. Four years later, the Samba nation stands on the precipice of introducing further verticals to its suite of gambling options, including the establishment of casino games at licensed locations. Nevertheless, it’s the sports wagering sector that seems set for another huge shot in the arm.

Since the end of the last decade, potential suitors have been reluctant to become part of Brazil’s sports betting

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landscape. Given the lack of control and due diligence surrounding the marketplace’s compliance procedures, operators have steered clear, fearful of the legal risks that attach themselves to any unvetted environment. Nevertheless, many of the industry’s biggest players have descended on Latin America in recent times; and Brazil is no different. Flutter and Entain both enjoy huge commercial returns from their respective Brazilian enterprises.

In 2021, Entain reported that it had nearly doubled its revenue return on the previous year, and was the chief contributor to funds generated outside its traditional markets of Europe, Australia and the UK. Peter Jackson, the CEO of Irish-based gaming giant Flutter, has recently declared Brazil as ‘a very significant opportunity’, and hopes to continue the firm’s current

53 run rate in this locality.

When officials in Brasilia finally do carve out the new legislation, it’s likely that a long list of prospective operators will be keen on entering the market. Indeed Entain, buoyed by its early performance in the region, has already declared its intention to apply for a sportsbook license.True, Martin Lycka,Vice-President of Entain’s Americas operations, has already gone on record to state that the company will look to acquire a license ‘as soon as it is available’. Current noises indicate that the regulation will impose a 19% GGR taxation rate on operators, which will facilitate a substantial volume of capital heading back to the state purse; a revenue source that presently eludes the government in the absence of proper market control. Yet, in this context, everyone’s a winner. European legislatures tend to position tax levies north of a fifth of adjusted gross revenue, and therefore Brazil’s initial taxation plan offers a more lenient platform to conduct operations. Therefore, operators will have the capability to not only boost commercial returns, but also protect profitability in the process.

If lawmakers can compose the new regulations prior to the original deadline set by the legislation pioneered in 2018, then stakeholders could be set for an eye-watering windfall. In arguably the most football-mad nation on the planet, the 2022 World Cup, scheduled for the end of this year, symbolizes a huge financial opportunity. If this target is hit, come December, a large swathe of Brazil’s 214m-strong population could be placing bets on its footballing superstars becoming world champions in Qatar. Moreover, H2 Gambling Capital, a leading gaming data and intelligence consultancy firm, in a recently conducted a study to illustrate the potential size of the Brazilian market in years to come. Based on the assumption that governmental officials sign-off industry control measures this year, H2 projects that

sports wagering gross gaming revenue will register at an enormous R$3.7bn ($733m) by 2023, increasing to R$5.5bn ($1.16bn) three years later. Furthermore, the recent coronavirus pandemic has ironically served to further strengthen convictions in the chances of success.

The accessibility of online gambling applications has been accentuated by the closure of retail and casino outlets amidst rolling lockdowns and social distancing protocols. However, in most cases, online handle figures outweigh the combined sum of deflected takings from land-based venues, and wagers placed through online sportsbook and gaming platforms. In essence therefore, a revitalized, Brazilian sports betting industry would join a global gambling marketplace currently subjected to a halo effect from a very unlikely source.

However, it remains to be seen whether ‘games of chance’ will augment the country’s overall gambling perfor-

mance. Indeed, the legalization of slot machines, card tables, and bingo halls hangs in the balance. Despite the positivity surrounding its sportsbook vertical, efforts to emancipate casino-based gaming has struggled to gain political traction. State President Jair Bolsonaro has certainly not helped its cause, with the leader of the far-right Liberal Party not shy in expressing his condemnation of recently proposed gaming bills. There has also been opposition mounted by a powerful lobbying group of Evangelical Christians, who flag concerns in relation to problem gambling and addiction. Nevertheless, the lower chamber of the national congress has already voted to approve some form of gaming legislation. Should a successful bill come to fruition, there’s very little that Bolsonaro, in spite of his inevitable posturing and protestations, can do about it.

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Brazil - Betting Boom

The concerns of Evangelical Christians, along with groups representing the dominant Catholic faith, have long held central importance to a deeply religious native population. Nevertheless, secularism has risen significantly since the onset of the twentieth century, as part of a general wave of more relaxed attitudes to societal change and modernization. Mass migration from rural areas into densely populated urban centres over the last fifty years has pre-empted a receptiveness to more progressive approaches. Gender rights are as advanced as anywhere across the Latin American theatre, with Brazil’s LGBT community now enjoying equal marriage rights. In a gambling context, if the general public’s engagement in sports wagering wasn’t enough of an indicator, we also see the vast majority of Brazil’s elite football clubs partnering with betting brands. All but one of last season’s Campeonato Brasileiro’s participants had some sort of sponsorship deal with a gambling operator, with six of these having sportsbook logos emblazoned across the front of their jerseys. Indeed, the winds of modernity have been blowing here for quite some

55

time.

So, what does the immediate future hold? Well, this may rest on how the government intends to proceed with its licensing framework. It may favour a more‘carte blanche’stance, allowing an unrestricted number of operators to be validated for a gaming license, providing they of course suitably navigate any legal or regulatory checks. Conversely, a more selective process may be implemented, with rival concessionaires and platforms competing for a fixed number of accreditation slots. This decision will undoubtedly divide opinion across the marketplace, but one could be forgiven for assuming, at least from a commercial perspective, bigger will be better. One expert, Neil Montgomery, of the Montgomery & Associados legal group headquartered Sao Paulo, the financial capital of Brazil, has endorsed this view. ‘’The best thing for government is to work on scale and regularise as many operators as possible. I think that will generate more (tax) revenues’ said Montgomery, adding that embracing

an open system of licensing governance would ‘be a big catalyst for growth’. Regardless of their decision, Brazil’s regulatory builders will most likely be formualting a set of rules that will help drive a phase of unprecedented growth. This is something in high demand amidst an economic crisis catalysed by an unyielding pandemic that has so far tragically claimed the lives of over 659,000 Brazilians.

Indeed, there may be an air of fragility around the country’s precarious financial status, but the possibility of a circa R$4bn injection of revenue into a bourgeoning local industry over the next twelve months will surely restore some confidence. As interested operators stand poised on the side lines, Brazil’s residents look forward to embracing a safer, fairer, and more transparent sportsbook sector.

Who knows?They may even get the chance to sit at a roulette table in the not-too-distant future……

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56

How’s the Gambling Industry Responnded to The Ukraine Crisis

By Ryan Murray

P

resident Putin’s illegal invasion of Ukraine has attracted widespread condemnation across most of the global community.

Indeed, it did not take long before anger and dismay were converted into tangible, responsive action. Within hours of tanks rolling over Ukraine’s eastern border, a raft of economic sanctions against the Russian statewas put in motion. Governments rushed to stifle its powerful network of oilrich oligarchs, and big businesses withdrew their presence, goods, and services. Western financial support has also been fast-tracked to the front line, with armed forces personnel, and a substantial number of citizens, receiving military kit and weaponry.

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As Russian missile activity intensified and proliferated into more Ukrainian towns and cities, attention quickly cast to an unfolding humanitarian crisis of epic proportions, with an estimated 3.4 million Ukrainians being displaced to date. With shelled out homes and no guarantee of food or shelter, a growing contingent of refugee’s flood into neighbouring countries.

However, one thing more powerful than Putin’s onslaught has been the resolve of those subjected to the impacts of his murderous campaign. Regardless of being vastly outnumbered and facing an enemy hell bent on destruction, the Ukrainian people have been resolute in the defence of their territory.

This has been supported in the West,

if indirectly, by copious messages of goodwill, defiant demonstrations of solidarity, and substantial charitable donation.

As referenced, many sectors have rightly adopted an anti-Russian stance, removing their assets from a country whose leader may yet be found guilty of breaching the Geneva Convention.

But how has the gambling industry responded to the escalating conflict in Ukraine? This article intends to probe into how operators, stakeholders and punters, both inside and outside the immediate theatres of conflict, have reacted to Putin’s advance. Furthermore, whilst respecting the fact that the commercial consequences of war are always of secondary importance,

Ryan Murray Article

we briefly speculate on what this may mean for eastern Europe’s gaming markets moving forward.

The gambling industry is often maligned for its lack of compassion and commitment to social responsibility, and therefore its key stakeholders are often consigned to starting on the back foot.

Regardless, few could criticize efforts leveraged towards this particular crisis to date.Through charitable endeavours, evacuation of employee personnel, and immense fundraising activity, the sector has demonstrated its ability to act with integrity, be empathetic, and prioritize welfare over wagering.

This activity may not come as a surprise to many in and around the industry.

However, to superficial spectators and ill-informed bystanders, this feels like a significant step change. In fairness, the

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global gambling space has presided over some unsavoury events in recent months. Authorities in the semi-autonomous region of Macau, famed for its bustling strip of high-turnover casino’s, has had to contend with increasingly suspect Junket operations, a rise in money laundering cases, and illicit cross-border activity. The UK has seen several of its largest operators slapped with heavy fines in the last month, owing to the exploitation of punters during the height of the pandemic, and sending promotional messages to problem gamblers who had opted out of marketing channels. Furthermore, Australia is currently experiencing challenges in its casino sector, with fresh accusations consistently emerging in relation to its concessionaires’ compliance practices.

Therefore, somewhat ironically, the conflict has provided an opportunity for the sector to showcase how it can support

citizens, communities, and be a force for good.

In this regard, there’s certainly no shortage of examples. Perhaps the most inspirational actor in this space is Parimatch, a firm that was founded in Ukraine in 1994, but now resides in its Cypriot headquarters in Limassol. However, given the speed and sincerity of their actions, you would be forgiven for thinking they had never left their Kyivbased home. Unsurprisingly, the company still have a number of buildings on Ukrainian soil, including its main development centre located in the capital.

Parimatch originally pledged funds of UAH 30m ($1.03m) to support the Ukrainian Armed Forces, however, given the scale of monetary donations received to date, this target was -

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Ukraine Gambling Response

S

ummarily doubled. Indeed, the operator has already spent UAH39m ($1.33m) on ammunition supplies and UAH3m ($102,500) on medical provisions. When generated, the additional income will be spent on essentials such as military radio sets, thermal imagers, binoculars, and first aid kits. Financial resource will also be channelled towards the evacuation process, with the introduction of meals for refugees and workers serviced by 24-hour kitchen facilities.

However, the sportsbook operator’s relief efforts have helped more than just those at the coalface. For those who want to leave the war-torn country, Parimatch has initiated several re-location programmes. Over 15% of Ukrainian-based colleagues have been allocated Head Office roles in Cyprus, and many have descended upon the company’s new office in Lviv, a major city in the safer, western end of the occupied state. However, support doesn’t stop there. The firm have also completely de-prioritized its normal commercial operations, and facilitated employees to take as much time away from the office as they need. This includes spending time on internally composed volunteer schemes, or even signing-up for combat.

Nevertheless, Parimatch are not the

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only one taking steps to aid Ukraine. A vast number of operators have piggybacked on the economic curbs leveraged by political leaders, and ceased trading in Russia. For some, this is a temporary suspension of operations, for others, it’s a wholesale withdrawal from the local market. To press, LeoVegas, bwin, bet365, DraftKings, and of course Parimatch, have all completely absconded, with many more no longer offering odds on Russian leagues and events. Less coverage, spectator interest, and sponsorship opportunity can only serve to help undermine Russia’s financial might, and distance the country even further from the global economic system.

However, perhaps the final word should be on the industry’s impressive contribution to the ‘Choose Love’ charity, which has been the collaborative focal point for many gambling companies throughout their respective campaigns. The organization has efficient communication channels with support groups on the ground, and can swiftly direct funds into the right hands. Throughout the conflict to date, Choose Love have connected to 23 official NGO’s and suppliers of aid, and has pledged $1.4m in support packages. Such has been the overwhelming response from the gaming community, organizers of the sector’s

combined endeavours have extended the duration of their GoFundMe page.

Indeed, the original target of £250,000 was chased down extremely quickly, leaving many to speculate on how far this charitable drive can go.

Despite a turbulent twenty-four months in more ways than one, the gaming sector hasn’t hesitated to throw itself into the sharp end of the current unfolding conflict. Many may often look on from a position of cynicism, but for those with insider knowledge, the true charitable credentials of the industry have never been in doubt.

As donations continue to roll in from far and wide, with punters and platforms alike putting hands in pockets, operators maintain their absence from Russian markets. In an atmosphere of human suffering and despair, the sector has shown a quality that many of its harshest critics assumed nonexistent. That is, the inclination to prioritize people over profit, and relief over revenue.

Putin’s demise may currently hang in the balance, but there is one safe bet available; the continuation of financial and emotional support to Ukraine’s battle-weary population.

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Will the Golden State see sports betting

I

t’s perhaps an under-statement to suggest that the U. S’s fledgling sports wagering industry has been a solid success since its launch four short years ago. In 2018, a landmark order from the Supreme Court struck down archaic legislation, and sanctioned local state authorities to embrace sports betting verticals.

Most didn’t have to be asked twice.

Now, a colossal thirty-four jurisdictions (including the Washington D.C prefecture), have installed some format of legal sportsbook activity. The results have been staggering. Eight states have now surpassed a wagering handle threshold of $500m in a

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single month, and New York’s operators have generated over $4.5bn since its market’s inauguration on January 8th of this year.

However, potentially, thelargest heavyweight may be yet to enter the fray.

California, the state with the highest population and most lucrative economy in the entirety of the United States, has flattered to deceive in its push for a piece of the sports betting pie.

The Golden State finds itself wrapped up in a protracted battle between a vast array of stakeholders, as horse tacks, casinos, card rooms, sportsbook operators, and tribal gaming entities

wrestle for superiority in a high-stakes, policy-making race. Given the potential earnings opportunity, it’s easy to see why rival groups are so intensely jockeying for position. According to a government-funded study conducted in collaboration with the American Gaming Association, Californian residents splurged $18.7bn through illegal, off-shore betting providers in 2016.

This amount alone would be enough to give the Empire State a literal run for its money. Furthermore, highly experienced sports wagering lawyer, Daniel Wallach, of Wallach Legal LLC, has described California as the ‘’holy grail’’ of the sector. In referencing the lobby-

61

-ying campaigns initiated by prospective suitors, Wallach added, ‘’this is going to be a half-a-billion-dollar battle for control of the most lucrative betting market in the world.’’

The battle lines, it seems, were drawn two years ago. Californian lawmakers were on the cusp of introducing a wagering bill into the state in 2020, until internal feuds destabilized the process so substantially that the proposed legislation was thrown out. The contemporary conflict is being fought out by two major players, with a supporting cast constantly adding further fuel to the fire.

The complexities of tribal gaming in the U.S regularly provide legal wrangling and dispute, as state legislature’s struggle to balance the sovereignty of native territory with the market forces of commercial gaming expansion. This is no different within the Californian landscape. A number of sports betting proposals have been tabled to date, with tribal groups particularly resolute in protecting their own bid. Having seen the hegemonic presence of sportsbook operators in neighbouring states, native gambling leaders are extremely concerned about the potentiality oflosing their monopoly on local markets. Clearly,

now that the gambling theatre has also moved online, the scale of the financial opportunity has increased exponentially, and therefore so has the intensity of feeling. Indeed, three senior figures within California’s tribal community recently penned a call to arms, stating that a campaign loss ‘’would accelerate the legalization of online gaming by non-tribal interests, threatening the existence of Indian gaming as we know it’’. Since the passing of a 1998 amendment in the Californian House, tribes have enjoyed almost unfettered supremacy in the local gambling industry.

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The Golden State & Sports Betting who have found it difficult to facilitate consistent housing solutions for the most vulnerable during the COVID-19 pandemic. Nathan Click, a leading spokesperson for the plan, recently stated that, ‘’our initiative is the only one that would raise hundreds of millions of dollars each year in solutions to homelessness’’. Moreover, it’s wellknown that Californians give housing significant credence when considering their voting intentions.

They argue that recent developments have put the constitutional essence of this law under threat.

Nevertheless, native stakeholders have reason to be optimistic. To press, only their proposal has gained enough traction to qualify for a pending November public vote on sports wagering legalization. Their interests have found a way to the ballot box via a gargantuan effort of advertising, canvassing, and, most importantly, a strong enough signature acquisition campaign. The irony is that any successful bids endorsed by commercial sports betting companies, a rival horse in the race, would require a portion of revenue to be siphoned off to tribal gaming enterprises. However, this would present a fairly measly, yet still relatively lucrative, cut of overall takings. ‘’The main fight for us is to ensure we keep the corporations out of state

from coming in. That’s the best thing for all tribes here in California’’ said Jesus Tarango, who heads up gaming operations at the Wilton Rancheria tribal nation. In referencing the potential size of the prize if a ‘corporation’ deal was to take place, he stated that native groups ‘’may get a piece of it, but it would not be the same piece as if it was controlled by us and ran by us.’’

Indeed, the main challenge to tribal interests comes from a proposal formulatedby a large cross-section of North American gaming giants. This bill would not only factor in the above referenced re-direction of funds to native groups, but also provide a much-needed boost to state coffers.

Operators have included a directive in their plan which promises to pledge a percentage of revenue to local housing and anti-homelessness efforts. This has resonated particularly well with city Mayors and politicians,

Local cardroom operators have also sought to undermine tribal efforts, not least due to a concern over anticipated restrictions on their own gaming freedoms. Despite being very much a periphery figure in the debate, cardroom campaigners have still thrown an impressive $24m behind a counter-offensive, which could yet land a few punches. In addition to their nervousness of being subjected to further legal scrutiny sanctioned by native industry stakeholders, senior cardroom leaders also suggest that tribal exploitation of the ‘Private Attorney’s General Act’ may compromise the spending power of state authorities.

Regardless of who gets their proposal to the impending resident vote in November, there is no guarantee that the Californian electorate will approve any of the respective bills. Despite earlier statistics demonstrating a tangible local appetite for gambling, some surveys have determined that support for a state-wide sports wagering market is far from overwhelming. Indeed, a recent study found that 45% of its participants were in favour of introducing a sportsbook vertical, a little over a third were undecided, and 22% were against the concept altogether. Given the tally’s calculated by the AGA when reflecting on the state’s scale of illegal activity, it could be that California presides over comparatively

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The Golden State & Sports Betting

fewer players than other jurisdictions, but has a higher spend volume per head.

Nevertheless, it’s difficult to argue against the likelihood of a nascent sports wagering sector being established. The key question doesn’t seem to be so much about ‘if or when’, but more about what typeof market will emerge. Furthermore, given the sheer scope of financial opportunity, and the long-standing tensions between rival groups, one should not under-estimate the impact Californian legalization may have on states so far reluctant to jump on the sports betting bandwagon. Most analysts believe that the creation of a Californian marketwould pre-empt a domino effect, compelling the remaining sixteen states to swiftly embrace

some format of sportsbook industry.

Professor John Holden of Oklahoma University, held in high-esteem by analysts due to his contribution to the support given in the implementation of various states’ gambling legislation, has endorsed this notion. ‘’A lot of people basically think the rest of the country will legalize if California does’’ said Holden. He also suggested that sportsbook operators may well have the upper hand in the ongoing scrap for power, stating that ‘’they spend a ton of money lobbying in virtually every state, and they are significant market players too. Even in states where we do have exclusively tribal operations, a lot of those tribes are contracting with DraftKings or FanDuel to run their sportsbooks.’’ This closing remark isn’t something being currently explored by tribes indig-

enous to California, but there’s still a relatively long pathway ahead.

There are even some fears that come November, voters may end up with too many accredited options to consider, which may lead to some individuals reneging on a decision altogether. Commentators assert that this scenario would lead to further delays, as a lack of suitable support for any proposal would consign the process to the next election term – a conclusion that doesn’t really suit anyone.

Nevertheless, although California may be famous for its Hollywood films, Bel Air mansions, and celebrity residents, it’s latest blockbuster release may well be reserved for a fledgling gambling sector.

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