June 2018 Infinity Gaming Magazine

InfinityGaming www.gaming-awards.com | ISSUE97

CHEERS TO THE SUMMER

Exclusive Interview Dr. Laila Mintas

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

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32 BREXIT: WHAT IT MEANS FOR US

08 EXCLUSIVE INTERVIEW DR. LAILA MINTAS MR IN-BETWEEN Teresa Tunstall

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 Lana welcomes you to the latest edition of Infinity Gaming Magazine.

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

08 DR. LAILA MINTAS 14 WIG9 WINNERS

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All the photos

16 WIG9 IN PHOTOS

A LOOK AT INDIA’S POTENTIAL

27 US GETS GREEN LIGHT

Christina Thakor-Rankin

AFRICA FOR AFFILIATES?

33 OPENING Ocean Resort Prepares

Lee-Ann Johnstone

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34 AFFILIATE FEST Lee-Ann Johnstone

39 CASINO ATTACKED

40 NEWS & MORE NEWS from the gaming industry

INFINITY GAMING

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

Time to recharge & prepare for business

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

Lana Thompson - Editor

Welcome to the latest edition of the Infinity Gaming Magazine Welcome to the latest edition of the In-

Mintas the Deputy President at Sportra-

finity Gaming Magazine and Summer is

dar US, we have a doctor in the house!

now officially here! Firstly to all those supporting their football nations at the

Then of course our superb line up of

World Cup in Russia, the very best of

monthly writers covering topics such

luck to you.

as India, Africa and social responsibility from Teresa Tunstall, Lee-Ann John-

Summer is always a special time here

stone and Christina Thakor-Rankin.

at Clever Duck Media, it gives us a little rest time and time to plan for the

That’s not all we have a review of Brexit

coming months with our sponsors and

and what it will all mean for us in the

stakeholders.

Gaming Arena along with a look back at the King of Gambling Stanley Ho who

Indeed one of our best clients and really

has decided to retire from the business

friends, those wonderful people at The

and hand over all responsibilities to his

Ritz Club invited us to their Private Box

family. Have a wonderful retirement Dr

at Royal Ascot for Ladies Day, what a su-

Ho.

perb time it was and if you never been to Royal Ascot I strongly recommend go-

Enjoy the magazine and the summer.

ing at least once, so thank you all at the Ritz Club for the wonderful memories.

“To Infinity and Beyond!”

Hence the photo on the front cover.

Regards, Back to the magazine now and what a bumper edition we have for the summer, an exclusive interview with Dr.Laila

Lana The Editor

INFINITY GAMING

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

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

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

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

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

www.1710gaming.com

C

M

Y

Teresa Tunstall – Independent Gaming Consultant

CM

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

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

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

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

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CY

CMY

K

Lee-Ann Johnstone - CEO Best Odds Marketing With almost two decades of digital marketing and affiliate experience gained within retail, payments and blue chip iGaming brands, Lee-Ann has a wealth of expertise as an award winning digital marketing expert and business mentor. She is the creator of AffiliateFEST, founder of Best Odds Marketing a digital consultancy specialising in affiliate marketing and recently launched Affiliate Insider offering training, events and business development for the affiliate channel.

MY

www.affiliateinsider.com|www.bestoddsmarketing.com

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Contact us if you have an idea for a special event and let us make it happen for you.

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8

Interview with

Dr. Laila Mintas Deputy President at Sportradar US

Laila thank you for your time today and for our international readers can you explain your role with Sportradar US?

we have exclusive data partnerships

I really enjoy the time with my students.

with the NFL, NBA, NHL and NASCAR.

It is great to understand how they see things and we always have very fruitful

And of course, we’re offering betting

discussions. My strong academic back-

service and product portfolio to busi-

ground and my daily operational work

I am running the operations of Sportra-

nesses in the US as betting legislation

is something that enables me to always

dar US, which sits in the center of the

continues to advance.

find the right balance. Lecturing about

ecosystem of sports, data and tech.

sports law forces me to stay involved

What is Sportradar involved in the US, what partnerships?

Your background Laila is in Sports law, what attracted you to that sector?

Sportrdar is the trusted partner of more

I am a lawyer by trade and love sports,

than 1,000 companies in over 80 coun-

so that is the best combination of two

tries. In the US, we serve sports data and

things that I love.

in the legal discussions and keep challenging my brain to think creatively about solutions – that’s what I love to do.

digital products to media clients (Such as, Twitter, Facebook, Bleacher Report).

We partner globally with leagues and federations to help them unlock the full potential of their sports data. In the US,

INFINITY GAMING

From being a Professor in sports law to working with a major sports data company like Sportradar, was it a challenge to do both?

What is a normal day for Laila Mintas, what time do you go to work, what time you finish etc?

It is impossible to have a strong routine in my job. I travel heavily within the US, but also internationally. I have many internal meetings with the Sportradar

9

team, with 4 US locations and more

ropean Law. A year later, the European

a positive impact. Americans bet around

than 30 global locations. It is essential

Court confirmed that result. Having the

$200 bn USD every year in off-shore

to stay on top of the most important de-

opportunity now to experience the pro-

markets. It has put a blind eye to that

velopments of our industry. Externally, I

cess in the US is incredible. Generally

fact for too long. There is no transpar-

have regular meetings with our league

speaking, I have always seen my work as

ency and no consumer protection in a

partners but also with potential and

my hobby and a crucial part of my life. If

black market like this. It is very impor-

existing clients. Now, with the opening

you love what you are doing, it doesn’t

tant to regulate the market in a reason-

of the betting market in the US, our ex-

feel like work at all.

able way so potential revenues can be

pertise in the space makes for an even busier schedule; and it’s very exciting to be in the middle of this development.

We are in a position to shape the future of this market. I wrote my Ph.D. on sports betting in Europe and the legis-

used in a better way than feeding them

With the recent Supreme Court ruling in the US on sports betting, what do you think will be the positives and negatives related to the decision?

lation process in Germany and came to the conclusion that it conflicts with Eu-

into the off-shore markets. The challenge that I see is whether the regulations that are put in place will allow the market to develop and convert the current betting volumes into legal channels. If it’s done in the right way, we are

I strongly believe that this decision has

speaking about a multi-billion dollar

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Dr. Laila Mintas Special Interview

Laila Mintas with the Sportradar Team at the recent Women in Gaming Diversity Awards

industry that can further fuel the entire

consequence, the regulated operators

nipulation cases. The more you moni-

sports industry. Part of my job is to ad-

wouldn’t have an attractive odds offer

tor the more you see. Every sport that

vise all stakeholders on how such regu-

that they could provide to their custom-

is offered on the betting market is po-

lations should look and how they could

ers. People that have bet for decades in

tentially at risk for being manipulated.

best participate in that opportunity.

the off-shore markets would just contin-

Sportradar has systems in place for

ue doing so. That’s not good for anyone,

all the different stakeholders, such as

and therefore we keep educating the

leagues, regulators and operators, to

market to avoid this situation.

protect sports integrity. These integrity

Who are the winners in this decision, the customers or the gambling operators?

It all really depends on how the legislation and regulations are done at the end of the day. If there are too many restrictions for operators to enter the

services are offered on a non-profit ba-

Is there any way that sports betting in the US when more states open up that systems and processes will protect against possible integrity issues arising?

US market, such as high taxes and fees,

dar. It´s about protecting the integrity of the game and provide these services to more than 100 sports organizations around the globe, and in the US, for the NBA, NHL and MLS.

they might not be able to compete with

The rule is very simple, you have to

the off-shore markets where opera-

monitor the sport in order to evaluate

tors don’t have to pay these costs. As a

certain risks and potential match ma-

INFINITY GAMING

sis; it’s not a revenue stream for Sportra-

How do you see the future of sports betting now in the US Laila?

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If the regulation is done in a reasonable

tionships with all affected stakeholders

I have been given a lot of good advice

way, it will be a huge opportunity and

puts us in a very interesting position.

in my life and I am always open to hear

will benefit the entire sports industry.

Sportradar is established as a neutral

other opinions so that I can gain a dif-

Apart from additional revenue streams

thought leader when it comes to the

ferent perspective. However, I person-

through the betting business, sponsor-

regulation of the betting market. We

ally always follow my own instinct and

ship through bookmaker will be a huge

have seen so much good and bad prac-

make my own decision.

opportunity. A question the leagues will

tice around the globe. One good exam-

have to answer is if they will allow gam-

ple is Germany, where betting has not

ing businesses to have sponsorship on

been regulated properly until today.

jerseys, as it is very common in Europe and a large source of revenue.

What is the future you think for Sportradar in the US following the Supreme Court decision?

2. Advice you would give anyone?

Be authentic in what you are doing and

Before we let you go Laila, can we ask you three questions on words of wisdom from the recently named “Inspiration of the Year” at the 9th Women in Gaming Diversity Awards winner?

if you are convinced about something fight for it.

3. What you’d wish you had known?

The correct numbers in the lottery!

Sportradar is the global market leader when it comes to sports data, and especially sports betting data. Our rela-

1. Best Advice you was ever given?

INFINITY GAMING

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GAMING NEWS

13

Pennsylvania Not Enthusiastic About Online Gambling

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n October 2017, Pennsylvania Governor Tom Wolf signed off on a major gambling expansion proposal that also covered the legalization of online gambling. It’s been almost a year since then, and residents still do not have access to Internet gambling sites.

According to a spokesperson from the Pennsylvania Gambling Control Board (PGCB), there have been no applications received for interactive gaming. The state currently wants applicants to cough up around $10 million per application. This fee will permit applicants to operate table games and Internet slots.

Apart from the high application fee, operators will also be required to pay up around 14% of their revenue as tax for poker and table games. For interactive slots, the tax rate stands at 52%.

The gambling expansion bill was passed as a solution that would close the state budget funding gap.

Estimates indicated that the bill

would rake in around $200 million in annual revenues from 12 of the state’s satellite casinos, along with truck stop slots, airport slots, daily fantasy sports, sports betting, and online gambling.

Sports betting, a distant dream?

State lawmakers grouped in table games, slots, and poker together under the $10 million fee licensing category, hoping that casinos would respond favorably. Casinos would be able to get their hands on iGambling applications after the initial 90-day application period. However, they would have to cough up $4 million for each iGambling application.

The gambling expansion bill also called for the regulation of sports betting, provided the federal laws against it were amended. Interestingly enough, the Supreme Court overturned this law only last month.

The PASPA (Professional and Amateur Sports Protection Act) is no longer a roadblock.

tions soon after that. However, the specifics regarding the regulation of sports betting are still being discussed. Now, casino operators, although accepting of the $10 million licensing fee, are not too happy about the 34% tax on net revenue for sports gambling.

In comparison, NJ, which was behind the elimination of the PASPA, charges a mere 8.5% on in-person sports betting and 13% on online sports betting. Nevada charges around 6.75%.

Pennsylvania’s sports betting proposal is being called ridiculous. Brett Smile, the founder of Sports Handle, stated that it would be shocking if casino operators were not working towards lowering the proposed tax rate.

As of now, none of the 12 casinos in Pennsylvania have submitted licensing applications for online gambling operations.

The PGCB started taking in applica-

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India: Behind the times or potential game-changer?

By Christina Thakor-Rankin

F

or many, when it comes to betting and gambling, India is

the times, or potential game-changer.

therefore legal, across most states in the country. Positioning the game as

It is not however the antiquity of its

skill has given it a level of legitimacy

laws that cause some to think India is

and social acceptance it would never

behind the times. Nor is it the moral,

have gained under the emotive ban-

social, religious and political opposi-

ner of gambling. Under skill however

tion to reform. Most countries are

its popularity has surged. It is used

forced to contend with these at some

by academics to teach competition

point, the best like for like example

strategy at the Institute of Manage-

technological and globalisation.

being the US which also shares the

ment; the President publicly honoured

same challenge of addressing conflict

India’s first professional female poker

There is however a glimmer of hope

between federal or central laws and

player, Muskan Sethi at a recent event

the rights of states against a cultural

celebrating the achievements of

backdrop of gambling being a hugely

women in the country; and mainstream

divisive issue. What makes India dif-

media publication Indian Express ran

ferent, and either ‘lagging behind’

a profile piece on Madan Kumar, office

or ‘ahead of the curve’ depending

worker turned pro player. This together

on personal perspective is not those

with events such as the Poker Sports

activities which are not allowed, but

League, due to be televised via a deal

those activities that are. Those activi-

with Discovery Sports, has ensured

ties which were previously excluded or

that poker is in the ascendency,

absent from older legislation such as

becoming increasingly popular both

poker and fantasy sport for whatever

as a leisure and professional pursuit

reason, but which have over the years

amongst the younger generation.

stuck in something of a time-

warp. Governed by a 19th century central law and a 20th century Constitution which ushered in a new federal system and made gambling a matter for the individual states, against the reality of a 21st century driven by

on the horizon that a country with a betting and gambling market guesstimated to be anywhere between $60 to $160 billion a year is about to take a critical step towards regulation, with the Law Commission rumoured to be close to disclosing its findings following a review into match-fixing and the regulation of betting. The word on the ground is that the findings are likely to come down on the side of regulation as the only realistic means of dealing with illegal betting and match-fixing.

Should this be the case, then the question of how India chooses to address the issue of regulation will be key to the discussion in hand: is India behind

INFINITY GAMING

been re-defined and assimilated into betting and gambling regulations.

Whilst the debate of poker as skill or chance has been rumbling on for

Firstly, there is poker which with

decades, the fact is that almost every

the notable exception of Gujarat, is

country or state which has moved to

deemed to be a game of skill and

regulation this century, has almost

15

without exception, positioned poker

way of gambling - India has gone the

the skill of the jockeys. This was reiter-

as gambling. India is the only country

way of skill, and whilst it would be easy

ated as recently as 1996 in a landmark

where poker sits under skill.

to say that like the US, DFS is bound

case (Dr. KR Lakshmanan v. State of Ta-

to be popular in a cricket-mad nation

mil Nadu) where the Supreme Court in

It is only one of a very small number of

where sports-betting per se is prohib-

considering the issue of horse-racing

places, if not the only place where pok-

ited but this is not necessarily the case.

and betting found that:

er is growing and attracting young play-

Fantasy sports in India is about volume

ers (otherwise known as millennials).

rather than value with average custom-

‘There is nothing illegal in horse rac-

er spend way below that of sports-bet-

ing: it is a lawful sport. There is noth-

Secondly there is fantasy sports, or

ting. Further, the younger generation

ing illegal in betting per se…we hold

daily fantasy sports, the latter consid-

(or millennials) appear to have turned

that the horse-racing is a game where

ered by many to be ‘sports-betting by

their back on India’s biggest betting

the winning depends substantially and

proxy’. Still a matter for each individual

opportunity, the IPL, considering it to

preponderantly on skill.’

state, but legally tested in the Punjab

be nothing more than a show where

and Haryana High Court last year, by a

matches are fixed.

lawsuit from a player against Dream11,

What is interesting is the juxtaposition of ‘horse-racing’, ‘lawful sport’ and

India’s biggest fantasy sports site and

Finally, there is the question of regu-

‘betting’, and begs the question if bet-

adjudged to be skill not gambling.

lated sports-betting - and this is where

ting on a horseracing (a lawful sport’) is

Granted, this is just one court in one

things could become really, really,

skill and therefore allowed, does this in

state looking at one variant, but a prec-

interesting, depending upon the rec-

theory apply to any lawful sport where

edent has been set which has seen the

ommendations of the Law Commis-

the outcome or ‘winning depends’ on

number of fantasy sports sites mush-

sion and how those recommendations

‘skill’ - which surely is the case with

room from 1 to over 40 in a little over

might be carried out.

most sports unless they are the subject

12 months.

of match-fixing or manipulation?

In 1957, the Supreme Court ruled that

Again, what is interesting is that the rest

betting on horse-racing was legal on

Given the current climate and the po-

of the world, when asked to make a call

the basis that the outcome of the races

litical, religious, moral, social, and legal

on (daily) fantasy sports has gone the

was determined not by chance, but by

furore surrounding the topic of betting

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By Christina Thakor-Rankin

and gambling in India it would be fool-

socially more acceptable. This brings

ish to try and put the theory to the test,

several advantages which go beyond

but is the recommendation of the Law

just addressing the issues of illegal bet-

risk mitigation by ensuring education

Commission were to be one of ‘regu-

ting and match-fixing.

and awareness at a far earlier stage -

lating’ or allowing sports-betting as a

well as allowing more effective

something which the All-India Gaming

means of tackling match-fixing and il-

Firstly, in the greater part of the world,

Federation a coalition of skill-based

legal betting, the Supreme Court has

these activities are classed as gam-

operators is currently actively seeking

potentially gifted India the perfect so-

bling, and carry the real risk of addic-

to do.

lution - simply extend the scope of the

tion and gambling problems. Re-defin-

1996 ruling beyond horse-racing to in-

ing them as ‘skill’ does not eradicate

On a pragmatic level ‘skill’ potentially

clude all ‘lawful sport’, the original rul-

that risk, but what it does do is make

carries a degree of built-in self-assess-

ing already discounting any outcome

for a wider more open and honest con-

ment and awareness, which games of

which is as a result of manipulation,

versation. Even in regulated territories

chance do not. Players who encounter

tampering or fixing and therefore not

players who encounter difficulties are

a losing streak are more likely to re-

based upon skill.

prevented from seeking help due to the

evaluate and reflect on their play to un-

shame and embarrassment because of

derstand what happened, why they lost

the word ‘gambling’.

and how to prevent future losses.

with its position on poker and fantasy,

Once something is deemed to be so-

There is of course the counter-argu-

under the banner of skill rather than

cially acceptable, people are gener-

ment that some will lose more than

gambling.

ally more comfortable engaging in an

they should under the guise of practis-

This would make India the first country to allow sports-betting but in keeping

open and constructive conversation

ing to get better, or writing-off losses as

Like poker and fantasy sports before it,

about both the positive and the nega-

bad luck, but awareness of these risks,

‘skill’ does not carry the same negativ-

tive aspects, making it easier for those

allows for better education, awareness

ity and stigma as ‘gambling’ making it

impacted to speak out and seek help, as

and promotion of responsibility in a

INFINITY GAMING

17

way which is relevant and effective.

the millennials and generation Z. The

in those who are under 30. Put simply

new generation of non-gamblers.

for the millennials, it’s seems to be less

Secondly, ‘skill’ allows for discussion in

about gambling and chance, and more

places that ‘gambling’ does not. Poker

Experience has shown that the younger

is already used to teach business strat-

generation (under 30s) do not have the

egy. If sports-betting were to fall under

same interest in betting and gambling

With that in mind, if the Law Commis-

skill India could engage in an education

as their parents, with ‘millennial’ sur-

sion did recommend legalising sports-

and awareness programme that starts

veys suggesting that more would rather

betting; and if India chose to do this by

at a much younger age and covers eth-

visit an art gallery than a casino.

broadening the scope of the 1996 rul-

ics, betting, match-fixing and integrity,

about gaming and skill.

ing to align sports-betting skill rather

ensuring that players are sufficiently

Having grown up in the age of commu-

than gambling, India may succeed in

prepared to be able to deal with any

nication their interests are increasingly

doing something no-one else has - re-

approach from match-fixers further

based upon social interaction, engage-

positioning betting and gambling in

down the line. For spectators the skill

ment and experience. They are also

such a way as to make it more relevant

element could be used to press the

more self-aware and socially respon-

to the next generation whilst simulta-

point that betting on the skill of play-

sible than previous generations - less

neously addressing the issues of ille-

ers on the pitch should be a secondary

inclined to drink, smoke, have sex or

gality, match-fixing and problem gam-

activity that enhances the spectator

‘gamble’. They are however interested

ing.

experience to be shared and enjoyed

in gaming as this allows them to show-

within a wider social context and not a

case their ability and judgement within

Far from being a step back, this could

primary activity.

an interactive and social setting, which

be a game-changer.

would help explain the rise in esports, Thirdly and finally, ‘skill’ could also be

fantasy sports, and social sports bet-

the answer to the sector’s single big-

ting and the decline of slots, traditional

gest challenge of the last few years –

casino games, bingo and even lottery

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BBIN Charity Music Event - TGBcharity

B

BIN is actively participating in a variety of international events. Due to the inseparable connection between music and games, in 2018, BBIN partnered up with the world’s leading electronic music magazine, DJ Mag, to host a charity event known as The Gaming Beat Charity (TGBcharity). Fedde Le Grand, one of the world’s top 100 DJs, was invited at the event. Three new tracks will be available for free download from May to July this year during the 2018 FIFA World Cup. From May 1, 2018, a track will be available for free download on the first day of each month on the official TGBcharity website. At the end of July, if the number of downloads reaches 1 million, BBIN will donate US$90,000 to the Top 100 DJs foundation in the hopes of arousing public attention to charitable events through the influence of well-known media and leading DJs. BBIN is the leading iGaming soft-

ware supplier in Asia. It dedicated to technology and product development and providing integrated platform services to more than 500 gaming platform operators in Asia.

BBIN’s product “BB Sports” offers a new tournament odds interface.

It has a simple system for classifying its functions, and supports live streaming. This year, the site of “2018 FIFA World Cup” is specially set up to allow players to watch the games at any time. BBIN will continue to diversify its development of entertainment services to achieve its ultimate purpose of satisfying customers’ needs, in order to establish itself in the international market.

DJ Mag was established in 1991.

When electronic music first emerged in the United Kingdom, DJ Mag printed and distributed local magazines. Today, the brand has expanded to 17 countries, spanning offline and online digital content and reaching more than 24 million fans monthly worldwide. It has become

an international multimedia brand.

Fedde Le Grand, one of the world’s premier DJs, has long been regarded as one of the most iconic and influential figures in electro house music. Having won numerous awards, Fedde Le Grand has been hailed as one of the top DJs in the last decade. Fedde Le Grand has also worked with well-known pop artists from Coldplay, Madonna, Will.i.am, Robbie Williams, Everything But the Girl, Fatboy Slim, and Michael Jackson, to Shakira, Rihanna, and Mariah Carey.

The 2018 TGBcharity has officially kicked off on May 1. BBIN invites you to join us in downloading as well as supporting this charitable cause.

For free music download: www. bbinevent.com/TGBcharity; or search for TGBcharity online

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GAMING NEWS

21

Norway Hires New Gaming Regulatory Chief

A

new gaming regulatory chief has been appointed in Norway, at a time when the country is prepping to battle illegal online gambling sites. Gunn Merete Paulset was appointed as Chief last week by the Lotteri-og Stiftelsestilsynet, which is the Norwegian Gaming Authority.

Paulset comes with eight years of experience in the NGA. Though she left the organization in 2015, the NGA hired her back as a replacement to Atle Hamar, who is now working with the Ministry of Climate & Environment. Paulset possesses a degree in Law, which is expected to help her in the current situation; a situation that will be extremely challenging from a legal perspective.

A ban on block payments The Norwegian government is seeking to implement new rules that will ban local financial entities from accepting block payments made in favor of internationally licensed gambling sites. The illegal sites are seen as a major hindrance to the local state-owned operators, Norsk

Tikstoto and Norsk Tipping.

The government submitted the “regulations concerning the prohibition of the processing of payments for gambling without a Norwegian license� to the European Commission for approval earlier this month.

The current standstill issued by the EC is valid till the 5th of September.

Norway is looking to launch the new regulations by January 1st of 2019.

Current regulations Banks in Norway are already barred from processing payments for international gambling sites. However, the new rules offer more clarity and ban all payment transaction from and to companies that handle transactions for foreign gambling companies.

Last year, the NGA blacklisted seven companies, claiming that they processed over $200 million of online gambling payment for international gambling firms. It was later found that two of the seven companies, Entercash and Trustly, continued offering their services in Norway

by simply shifting to new account numbers.

As a response to such issues, the NGA wants greater powers to enforce more stringent rules against the processing of block payments based on company names. As of now, the NGA can only block individual transactions, which means companies can continue operating by simply acquiring new account numbers.

Additionally, the NGA also wants to be able to access suspicious transaction data, which it believes is necessary for conducting further investigations. However, the issue of data privacy currently stands in its way.

The NGA, last year, managed to get approval for a measure that bans international operators from advertising to local punters. The measure achieves this via DNS blocking.

The NGS swears that all its efforts are in the best interests of the citizens and not a way to support the state-owned gambling operators.

INFINITY GAMING

22

Don’t mess with Mr In-between

By Teresa Tunstall

O

ut of interest and mainly because it almost seems every other month an Operator trips over themselves bites the dust then stuffs their mouths full of humble pie, except that is the Barclays boss who was more interested in catching the whistle blower than addressing the real issues caused. However, I procrastinate as I was looking at the many different but similar issue’s gambling companies were dealing with caused by their own mistakes or indifferences to handle situations of problem gambling and money laundering.

However, I was genuine upset and sad to realise that in my time of 16 years helping problem gamblers and the subject of money laundering, that I had at some point trained staff in all the companies who were ‘fined’.

Recently, a person who shall remain anonymous but is however totally entrenched in problem gamblers, approached me at a ‘Reception,’ he vaguely introduced himself and continued, “Tell me why did you never ‘fail,’ an operator?” I was taken aback although I agreed he had a point but in those day’s my organisation was expected to partly bring in our own funds the rest was up to the gambling and betting Operators

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to support us financially on problem gambling issues or not, some gave generously, as long as we didn’t overstep the mark for the money we requested and desperately needed……. so different from now!

I have tried to analyse what had changed in these companies who for many years requested our training and auditing on problem gamblers those who carried our endorsement year after year? I remember training a large Operator, who’s Chief Executive announced his departure whilst I was there waiting to deliver Problem Gambling Training to his staff at his Head Office.

The impact of what many staff considered to be bad news, the affect his departure had on his staff particularly those I was about to train that evening was enormous although, I didn’t realised at the time.

There were some staff who seriously considered this could be their last week at work. Staff wandered in casually and late with no explanation, it wasn’t long before they started criticising why problem gamblers received all the help and support they could wish for yet gaming staff might lose their jobs so why should

they worry about problem gamblers when they had themselves and families to worry about? Let’s be honest they had a case and I was in sympathy with them, it was a tough training programme which in retrospect the departure of their Chief Executive was obviously handled badly with many staff believing they would lose their jobs in what was already an impoverish area of the UK. It was also true of betting industry where I would conduct an audit often with only one member of staff on duty struggling to answer questions and deal with gamblers at the same time. To listen and talk with both gambling and betting staff was an invaluable experience that I could never have obtained sitting at a desk in the office. However, my best learning curve was sixteen years of working, listening and dealing with callers on the Helpline, I miss that enormously but I’m now going into to my final year to qualify as a therapist this thought keeps me going and I hope to continue supporting them in the future!

This brings me back to what on earth happened to have so many Operators being ‘fined’ millions of pounds however it’s the staff I’m more

Don’t mess with Mr In-between

23

concerned about. One company based in

stricted by the 1000’s miles difference be-

and what’s left scattered at the feet of

the Caribbean who I went out to deliver

tween each island and of the staff situation

the Operator one of whose job now is to

training to, told me of the terrible abuse

where one worker’s are based in UK while

trace, track and leave no stone unturned

they suffered Online because they weren’t

the other is in the Caribbean.

if they’re suspicious of problem gambling or money laundering happening

based in the UK, let me explain and put clarity over the issue. Every midnight the

Dealing with distraught staff who were

in their own backyard. So in exchange

UK based staff switched over to the Carib-

also expected to deal with problem

for bearing their soul to the Regulator

bean staff to take over answering calls for

gamblers should they arise was a lot to

being a Spook and grassing up on their

what was UK midnight but was 4pm in the

ask. After all Social Responsibility train-

players Operators have to create a bal-

Caribbean. Online Operator staff in the

ing seems to have lapsed so badly and

ance where they stand checking every

Caribbean told me some callers could start

overworked staff are expected to bring

incident.

with, “Ah no isn’t there a white person I

in the bread and money which requires

can talk to there?” The staff member could

a soft, delicate balance on the tight-

Sadly, the forgotten ones, the customers

rightfully have refused to reply or have just

rope of work.

Without support and

those who feed and keep Operators and

hung-up but showing greater resilience

encouragement from Management and

Regulators going, I’m not up to criticis-

and intellect simply answered, “I’m afraid

the higher achy upwards to helplines at

ing either side but let’s never forget the

not but I’m here to help you if you want to

the bottom working together without

true meaning of gambling and betting is

continue?” It’s outrageous, unbelievable

the tremendously tough targets staffs

the players who without them none of

and unthinkable that human beings can

are expected to achieve is becoming

us would exist. What’s left at the end of

react so disgustingly towards another hu-

everyone’s nightmare.

the day let’s never forget let’s always remember; don’t mess with Mr Inbetween.

man being they’ve never met or seen. I fed this back to their Training Manager who,

The same goes for Operators sweating

as sympatric as he was there was little he

over deals with Regulators where the

could do much as he wanted to he was re-

responsibility has been pushed, shoved

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GAMING NEWS

25

Peter Done Comes Under Fire

B

etfred the UK based betting retail company that has some 1,600 betting retail outlets has come under fire from UK national tabloids after one of its cofounders Fred Done took just over £10 million in dividends from the company although in its most recent financial reports it took a loss of £18.1 million.

The privately owned company which was founded back in 1967 by Fred and Peter Done expanded rapidly especially as Fixed Odds Betting Terminals (FOBTs) become popular on the high street.

However with the recent government announcement that FOBTs were to have their stakes slashed from £100 to £2 the Done family are rumoured to be considering asking for a judicial review to try and overturn the governments decision.

ber one with UK tabloids pushing hard for the reduction in FOBT stakes.

Now with the betting firm struggling with last year showing a profit of £32.4 million and this year losing £18.1 million and Done taking a healthy dividend the knives are out for the man.

Betfred boss Mark Stebbings has said that the company might have to close as many as 600 of their retail shops because of the FOBT decision.

This would be a major blow to Betfred as it acquired some 322 shops to add to its portfolio from Ladbrokes Coral back in October 2016 when Ladbrokes Coral had to sell a chunk of its retail to get their merging agreed by the competitions regulator.

This in a nutshell has made the Done family enemy num-

12th International Gaming Awards Announce Venue Clever Duck Media Ltd the hosts and organisers of the Charity focused International Gaming Awards has announced the location for the 12th edition of the ceremony that is recognised as the “Oscars” of the gaming industry.

The 12th International Gaming Awards annual chic event is taking place in London’s Savoy Hotel, on the 4 February 2019. The IGA will unite industry professionals from across the world and allow them to network with talented insiders from across the industry.

categories.

There is no fee to take part; all we ask is that your entry be accompanied by a donation to our chosen charities.

We should take a moment to think of those less fortunate than ourselves.

Please donate generously.

The 12th International Gaming Awards will provide first opportunity to showcase your product to the receptive audience of industry connoisseurs and as always will welcome the most successful operators from around the globe, outstanding leaders and charity supporters.

The International Gaming Awards the most memorable evening of the year with its main focus to support truly deserving charities: Care International, Children with Cancer and Responsible Gaming Trust. More about our charities.

Nominations will open this month and will include new

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26

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GAMING NEWS

27

32Red Faces £2 Million Penalty

O

nline gaming operator 32Red has been slapped with a £2 million penalty by the UKGC (United Kingdom Gambling Commission) for failing to prevent a gambling addict from participating in its offerings and for aiding money laundering.

The Commission also determined that around 22 incidents were recorded indicating that the gambler was a problem case. Among the incidents was the gambler’s own admission to the staff that he/she had suffered losses and was looking to recover money.

under the VIP category.

According to the UKGC’s investigation, the casino had dealings with the said customer from November 2014 to April 2017. The investigations also pointed out that the gambler and the company had established a business partnership since 2011. The gambler was also offered VIP status in 2013.

But, instead of checking whether the gambler required help, the casino continued to entertain the customer with bonuses. They also failed to determine if the gambler could afford to spend on the services.

Kindred accepts penalty Kindred, a Swedish company that took over 32Red last year, has agreed to the penalty. The parent company also highlighted the initiatives undertaken to curb problem gambling, such as behavior monitoring systems. However, the company accepted that more work had to be done; and that it is committed to creating a safe gambling environment for all its customers.

The UKGC stated that it only licensed 32Red from November 2014, which brings it under the commission’s jurisdiction. During this period, around £758,000 was deposited without any form of social responsibility, and the company had also handled money laundering checks.

Willful neglect

According to Richard Watson, the UKGC’s Executive Director, Red32 failed to check on the customer’s welfare, despite signs of a gambling problem being apparent. Instead, the casino encouraged the customer to gamble further, which is a clear violation of regulations.

Casinos are required by the UKGC to take action if and when problem signs are spotted. They must conduct a review of all their customers, especially those that are placed

Watson added that the UKGC’s duty was to ensure that customers were protected from any gambling-related harm and any casino failing to adhere to the rules would be dealt with sternly.

The fine comes after the UK government announced its plan to reduce the maximum betting amount to £2 for fixed-odds betting terminals. The UKGC also spoke of plans to beef up online protections.

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28

Africa - No Longer Emerging It IS a Growth Accelerated Market for Affiliates to Consider

By Lee-Ann Johnstone

A

frica has been cited as an

using popular sports to your advantage is

claim. They’re getting into the iGaming

emerging market for affiliates

a winning strategy.

market so it’s not quite as complex as the markets that are available or the

for a number of years now,

however the time has come for this to

Responsive transparent methods are

various bet types that have been created

be dubbed a growth accelerated market.

thriving here too, with an emphasis on

over time within the UK at the moment.

The market is ripe for affiliates to get

mobile payments. This growth comes

For example ACCA and Luckys will be

involved with, but how exactly will you

from the fact that people here seem to

harder to explain and sell when all these

break into the sector and claim market

want an additional degree of security.

customers are looking for is simplified

share is questionable? There are a few

This has the potential to give an affiliate

Bet and Get offers.

of the key area’s you need to consider

that is aware of this trend a serious edge.

before leaping in.

In terms of player habits, many prefer to

Viral competitions, contextual ads and

wager on their mobile, so site optimisa-

social media are all essential ways to

Take time to understand the Culture

tion is key as is local , trusted payment

drive your brand to success but be sure

and Demographics

processing partners which facilitate

to understand which channels work best.

While you may know the UK market like

money flow in and out of sportsbook plat-

At the recent Affiliate Insider Boot-

the back of your hand, Africa is a totally

forms. Africans now have more access to

camp our panel of experts detailed the

different ball game. It’s important to

data and improved infrastructure around

fact that in South Africa nobody uses

remember that this massive continent

mobile coverage, making this vertical a

Facebook - everyone uses WhatsApp - so

is made up of 54 countries, each with

serious contender for new sources traffic.

setting up a tipping chat service may

their own unique language and cultural

We all know Google is going forward with

work better here than a private facebook

differences. What works in one country

mobile first, but in Africa having a design

community. With these simple ideas

won’t work in another, so geographical

that is both mobile optimise and easy to

executed well, you’ll be able to reach a

localisation is key.

use on small devices will really help set

much wider market for your products

affiliates or operators apart with their

and encourage customers to refer others

audiences.

to your brand (quickly building consum-

Language, cultural norms and popular sports all need to be taken into account

er trust) as well.

for affiliates brands to thrive. In terms

Marketing your Product

of football, many of the leagues are the

The African market is still a bit behind

The key point to take away from this is to

same as their European counterparts,

what we’re accustomed to in the UK,

Keep It Simple Stupid! Keep this in mind

which can give brands and affiliates a

think back around 10 years within the UK

when you create promotions, content

good enough base starting point for

affiliate market. The marketing content

and more. By creating straightforward

content development. Many similar

and mix should be kept simple, as this

promotions and sharing information,

sports are played across both of these

market is blossoming with players becom-

you’ll see a much larger uplift. Create

continents, so being aware of this and

ing accustomed to the offers they can

content that revolves around life

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29 changing bets, as this is what these users really want to see. While the UK market may be screaming out for complex content around accumulators, spread bets and odds, the African market seeks straightforward content.

Channelling this new traffic through specialised pages and creating optimised lead funnels to convert is key.

You need to have an understanding of what these players are looking for and then show them simply which operators can support their needs.

Community marketing and brand trust will also bring you greater returns in this area. Localise what you’re offering and don’t be afraid to go for old school, tried and trusted marketing techniques. You may also need to consider building brand awareness offline in local areas - for example South Africa still relies heavily on billboard traffic for brand Influence, simply because everyone drives to work, traffic is horrendous and you are able to repeat message people when they are in a confined space with not much else to take their attention. Working with local media companies who are experienced in marketing brands into Africa can also provide additional credibility, build customer awareness and help players convert first time on site.

You’ll find that the costs of many of these advertising techniques and charges are far reduced than what you’re accustomed to paying within the EU. From there, you’re able to use this additional revenue to plough back into your business and get an even better ROI. Key Points to Take Away about Africa If you’re thinking about entering this market, then there are a few key takeaways that you’ll want to consider.

• The first is that the opportunity is

very much there for affiliates that want to thrive in this market. Early adoption is still available and if you build a brand that is locally sensitive there is a lot of value to be had due to lack of competition and volume of consumers primed and ready for the taking.

• Your reach in this market is important too, start with localised campaigns that work well and then you can replicate this success further afield. Keeping it simple is essential, as this market is still in the early stages of growth.

• Finally, as ever, understand the local culture, and focus on innovation. If you want to succeed then you have to tailor your strategy. Don’t just replicate your actions within the UK elsewhere, as the market is still

untapped. Innovate and create a brand that users recognise as an expert.

Accessing the African affiliate market could be a goldmine for your brand, so don’t waste precious time waiting to dive in. Take these key elements into account for a successful launch into this market and work with experts who are savvy on local expansion and strategy to help you get a foot in the door.

For more information about Africa and expansion you can follow our video series from the recent Affiliate Insider : Affiliate Bootcamp (March 2018) on our social media channel.

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GIRLS JUST WANNA HAVE Even odds. No one wants special treatment. But until equal treatment is universal, congratulations are in order.

We’re proud to be part of a company that celebrates diversity in the workplace.

We do it every day, but instead of calling it a celebration, we call it business as usual.

Congratulations, women in gaming.

GAMING NEWS

31

Police in Thailand Unable to Curb Illegal Online Gambling

T

he Football World Cup brings it with it a sense of excitement and pure energy.

Unfortunately, it also brings with it the problem of illegal gambling and law enforcement in Bangkok, Thailand are on the verge of giving up.

After initiating a campaign to curb illegal football gambling, the police are now facing an uphill battle to put an end to the practice. The Deputy Commissioner of the Metropolitan Police Bureau, Phanurat Lakboon, has admitted that it was almost impossible to end illegal online gambling. The officer is the one currently leading the campaign.

Lakboon stated that it was possible to crack down on gambling dens and other physical forms of the practice. However, he added, it was extremely difficult to track down online football gambling rings.

The commissioner referred to the operators of such rings as “masterminds�. He also pointed out that the

issue of borders and jurisdictions made things worse. Many of the illegal football gambling rings were run by foreigners and operated outside the borders of the country. Some of these rings were also run by locals.

For instance, some rings operated out of Cambodia, where gambling is legal. As a result, Thai authorities have no say in the matter. The foreign rings simply hire nominees in Thailand to open bank accounts.

The operations continue to run even if the local nominees are arrested.

It is always possible to find new nominees.

The problem of leniency Thai gambling laws are lenient, which is another roadblock that law enforcement has to deal with. Most locals do not mind paying a fine of 1000 baht or even going to jail for a year.

Currently, Lakboon and his team are working out a strategy that will bring gamblers under the Anti-Mon-

ey Laundering Act. This will allow Lakboon to confiscate or freeze the assets belonging to the offenders.

Around 300 illegal online gambling sites are being monitored by the authorities. The sites are operated from various locations across the globe.

A request has been made to the National Broadcasting and Telecommunication Commission, seeking to block these sites.

Other than this, the names of the offenders and their bank account details will be retrieved from the system and used to track them down.

The authorities will also be taking legal action against the parents of young children who are involved in these activities under the Child Protection Act. As of now, only 722 suspects have been taken into custody, which, the authorities say, is like a drop in the ocean.

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32

Brexit What it all means for the gambling industry

F

ollowing the decision of the United Kingdom to depart from the European Union, the uncertainty of the various economies involved has been mounting for quite some time now.

Apart from already having major impacts on countless businesses within Europe, the Brexit is likely to go on disrupting the countries’ economy in the future as well.

What it means for the gambling industry The legislation for online gambling is fairly complicated and constantly under scrutiny for the major economic and social concerns it poses. In a bid to safeguard the interests of both the people who indulge in online gambling and those that provide them with the legitimate channels to do so, the legislators around the world are constantly devising strategies that could help streamline the industry. That being said, the gambling industry is not immune to major political changes that occur in the most highly developed economies of the world.

As such, it is only natural for people across the globe to be concerned about how exactly the departure of the United Kingdom

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from the European Union will impact the online gambling industry in the country and abroad. While the United Kingdom might not be the largest or most prosperous economy in the world, it is home to a large number of popular online casinos that continue to make major contributions to the country’s economy.

Some of the most prominent names in the online gambling industry, including the Coral, Paddy Power, and William Hill, largely operate from their headquarters in Britain. Needless to say, the British online gaming industry has continued to lure avid gamers and players from all around the world, rendering it one of the highest grossing and most successful businesses in the country. And the experts and analysts are extremely concerned that the existing profitability of the online gaming industry in the country might plummet once Britain exits the European Union.

Offshore businesses The biggest concern with respect to Brexit’s impact on the online gaming industry is in terms of the online casinos that currently operate on foreign lands. A Brit-

ish overseas territory, Gibraltar is one of the most profitable online gambling regions in Europe. A whopping 25% of the territory’s Gross Domestic Product comes directly from the revenues generated through online gambling.

In addition to this, the online gambling industry in Gibraltar has created a staggering number of 3,500 jobs, with a majority of the workers employed in Spain. Now, the problem is that if the border that connects Gibraltar to Spain is closed down or fortified with a series of complicated legal procedures post-Brexit, the move could essentially have a catastrophic effect on the territory’s online gaming industry.

Given the relatively low corporate taxes in the territory, Gibraltar has long been an attractive prospect for international gambling and casino companies to establish their operations here. However, one of the inevitable economic changes that are likely to occur post-Breixt is a possible revision in the country’s taxation policies.

The existing taxation regulations in the United Kingdom are regarded as some of the most stringent by

33

international standards. As such, a lot

In a recent news report released by The

only by the best and most highly skilled

of online gambling companies prefer

Sunday Times of Malta, it was revealed

professionals in the industry from far

setting up their headquarters in off-

that one of the world’s leading online

and wide. In addition to this, the online

shore locations such as Gibraltar in a

casino giant, Bet365, has announced its

casinos also hire foreign professionals

bid to avoid the strict taxation laws in

plans of moving out from Gibraltar and

to keep their labor costs under control.

the United Kingdom. In fact, a majority

setting up base in Malta as soon as Brit-

However, post-Brexit, there might be

of the online bingo websites that play-

ain exits the European Year sometime

stringent revisions in the legislation as-

ers currently use are all based out of

next year. Owned entirely by a British

sociated with employing workers from

Gibraltar.

family, the group has annual revenue

outside the United Kingdom. As such,

of over 1.5 billion Euros and plans to

this might complicate things for the

The problem is that until the negotia-

relocate as many as 1,000 employees

online gambling companies that are

tions under Article 50 of the Brexit are

from their Gibraltar office to their new

based in Britain.

adequately dealt with, the online gam-

headquarters in Malta. While the afore-

bling companies operating offshore

mentioned move might be bad news

While the future of online gambling in

might be required to re-strategize their

for Gibraltar, it is likely to significantly

Europe seems fairly uncertain at this

operations or pay a higher sum to the

strengthen the economy of Malta in the

point, it is less than likely to affect the

taxman. In addition to this, if Brexit

long run.

global gambling climate in any way.

makes it difficult and more expensive for the online gambling businesses to

Although some of the online gambling Employment issues

operate in the mainland, they might be

businesses based out of Britain might have to take a hit post-Brexit, it might

forced to move their primary base to

Another major hit that the online gam-

not have any effect on the online casi-

foreign territories.

bling industry in the United Kingdom

nos in the other countries. And whether

is likely to take post-Brexit is in terms

or not the UK-based online gaming

For the companies based in Gibraltar

of the new employment issues for the

businesses would be able to maintain

but operating or serving in the Europe-

country’s online casinos. The online ca-

their footing amidst the political and

an Union, their suppliers or bookmak-

sinos operating in the United Kingdom

socio-economic turbulence surround-

ers might soon have to pack up their

typically hire staff from the various

ing Brexit, is anyone’s guess

bags and set out to hunt for a more con-

countries in Europe. They do this to en-

ducive destination, such as Malta.

sure that they are getting the job done

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GAMING NEWS

35

New South Wales Implements New Online Gambling Tax

O

nline gamblers in New South Wales will now have to face a 10% tax per bet in line with a new rule that will be announced as part of the budget next week. The tax will see the Berejiklian government earning around $100 million in taxes every year. If passed, the new tax measure will come into play in January 2019.

The government plans to use around 2% of the estimated revenue for the development of the racing industry, according to media reports.

Treasure Dominic Perrottet told the media that there had been an extensive discussion regarding the new measure and the decision was taken to resolve the disconnect between areas where gambling takes place and where it is taxed.

The new law will not have an impact on the current racing tax rates, which means they will likely stay the same. The current tax on sports betting and racing is levied through

physical points of sale, such as TAB tickets, and therefore, does not cover online gambling. The same will be followed for the new measure.

A level playing field The current rates for racing and sports betting, according to Perrottet, have not been changed in order to ensure fair compensation.

The idea is to prevent the racing industry from suffering the consequences of the new measure.

South Australia is one of three states that introduced or aimed to introduce a new rate of tax. The other states were Western Australia and Queensland.

NSW settled on the new tax rate based on a similar British tax that does not factor in payroll tax, product fees, and GST. Plus, TAB has an exclusive agreement with regard to on-ground betting.

According to Perrottet, the 10% rate strikes the perfect balance and that online corporate bookmakers owe

their fair share. However, the rate will be reviewed after a period of 18 months. This will also include an assessment of progress in other states that levy POCT. Anti-gambling lobbies, Tabcorp, and the Hotels Association demanded a 15% rate to ensure a fair playing field with regard to competition.

Tax-free threshold included A tax-free threshold of $1 million will be included and applied to all operators. But, wagering operators will have to pay 10% of net wagering revenue once the threshold is crossed. This includes all wagering and betting activity.

After the foreign investor stamp duty introduced in 2016, this is the next major tax to be introduced.

The government has also referred to the new rate as an amendment to existing rates and not as a new tax measure.

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GAMING NEWS

37

Australia’s Online Gambling Market Boosted by Mobile Betting

A

ccording to Australian research firm, Roy Morgan, there has been a significant increase in the number of citizens using mobile devices to place bets.

The finding was published as part of a study on the country’s gambling market. The study also found that fewer Australians were engaging in gambling as a whole.

Around 3.4 million citizens had betted on harness racing, greyhound racing, horseracing, and sports in the year leading up to March 2018. When compared to the year up to March 2012, the figure had dropped by 300,000.

According to trend observations, punters were increasingly moving towards online gambling. The study found that the number of citizens engaging in online betting grew by more than half, bringing the current figure to 34.1%.

The mobile revolution

Roy Morgan attributes the increase in online betting to the proliferation of mobile devices. Around one-fifth of Australians own and operate mobile devices. 22.7% of these people have engaged in mobile betting. In 2012, only 5.6% of mobile device owners were doing the same. But, the figure for bettors, who use desktop devices for placing bets, remained the same (more or less) at 15%.

The study also showed that the increase in online gambling, on a national level, has occurred mainly as a result of the growth in mobile betting.

A consolidated market The iGaming sector in Australia has undergone a fair bit of consolidation over the last years. The majority of the market in the country is controlled by just two operators. Around 18% of local customers have a preference for the online betting site operated

by Tabcorp Holdings. Tabcorp runs a range of betting sites that offer vari-

ous options to customers.

The next most popular operator happens to be Sportsbet.com.au, which controls around 13% of the market.

Coming in third is Crownbet, holding around 6.5% of the market. Crownbet recently came under the ownership of The Stars Group.

Michele Levine, the CEO for Roy Morgan, stated that the preference for online gambling offerings was a good sign and positive indication of the sector’s good health. She also added that the industry had gone through some key changes, including the consolidation of operations under major operators.

Some of these major consolidations included the acquisition of Crownbet

by The Stars Group, the acquisition of Sportsbet by Paddy Power Betfair, and the merger between Tatts Group and Tabcorp.

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38

Stanley Ho Steps Away from THE Gambling World A LOOK AT THE IMPACT THIS MAN HAD ON MACAU

T

he news of Stanley Ho’s retirement from the gaming world marked the end of an era that was largely characterized by the man’s indelible impacts over the fortune of Macau’s casino industry. As Ho announced his intention of stepping down from the positions of the Executive director and chairman at the casino giant SJM Holdings, there was a burst of mixed sentiments from all those whose lives had been touched in some way by their beloved casino boss. Ho’s retirement was officially approved on June 12, 2018, at an SJM Holding’s shareholders meeting.

Despite the fact that the 96-yearold’s involvement with the flagship company’s everyday operations had taken a backseat due to an apparent decline in his health in the recent years, his name continues to inspire millions of people around the world even today. Ho was often lovingly referred to as ‘The King of Gambling’ by the people of Macau.

And although his retirement is being accurately regarded as the end of a prosperous era for the world’s largest casino hub, the legacy of Ho’s dynasty will be passed on to

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his daughter Daisy Ho who will step up to fill the void left by her father. Faced with strong competition from the likes of Lui Che Woo and Sheldon Adelson, Daisy Ho has already committed herself to restoring SJM Holdings position as the frontrunner in Macau’s casino market.

The journey to the top The founder and chairman at SJM Holdings that owns a total of nineteen casino facilities in Macau, Ho was rightly nicknamed the ‘Godfather’ for the government-granted monopoly that he possessed on the gambling industry in Macau for over forty years. The greatnephew of a prominent Hong Kong merchant, Sir Robert Hotung, Ho is often regarded as one of the most prestigious and successful business tycoons of the 20th century Hong Kong. Ho’s uncle, Hotung is renowned for being the first ever Chinese citizen to take up residence at the prestigious Victoria Peak.

Born with the silver spoon in his mouth back in 1921, Ho was the ninth out of Ho Sai-Kwong’s thirteen children. Having been brought up in a privileged and wealthy family, Ho first experi-

enced destitution in his teens during the 1930s Great Depression.

Following the Japanese invasion in Hong Kong, Ho fled to Macau in the early forties.

Ho spent the next twenty years reviving his lost fortune by employing his proficiency in trading goods across the Chinese border.

And it was only in 1962, that Ho finally secured a gambling license from the Macau government and kickstarted his glorious 40-year stint in the world of gaming.

Apart from being the proud owner of some of the most lavish and remarkable casino properties in Macau including the Lisboa and the Grand Lisboa, Ho is also the founder and chairman of a company called Shun Tuk Holdings.

Shun Tuk Holdings is associated with a larger variety of businesses including banking, air transport, real estate, shipping, tourism, and entertainment. Speculations are that the number of employees working at Ho’s numerous ventures make up a whopping one-fourth of the entire workforce in Macau!

In addition to his businesses in Macau and Hong Kong, Ho has also made some major investments in

39

countries like North Korea, Vietnam,

the casino biggie Melco International,

non-gaming entertainment. There will

Pyongyang, Portugal, Indonesia, Mo-

which is credited with operating some

be around 2,000 guestrooms at Grand

zambique, Philippines, and mainland

of the most prominent casino facilities

Lisboa Palace in addition to five-star ho-

China.

in Macau, including Altira Macau, Studio

tels tastefully curated by world-famous

City, and City of Dreams.

designers including Karl Lagerfeld and

A life, a legacy

Donatella Versace.

For the last couple of years, Ho’s gigantic

Intriguingly, Stanley Ho doesn’t like to

empire in Macau has been in turbulent

Daisy Ho’s stint at SJM Holdings will be

indulge much in his own product. In-

waters in the wake of the influx of new

shared with her father’s fourth wife An-

stead, he prefers investing his leisure

international gaming commissionaires

gela Leong who has been appointed as

hours in ballroom dancing. Ho has been

and the Chinese government’s efforts

a co-chairperson at the company. And

renowned for handling both his pro-

to eradicate illicit flows of funds. The

although he might have announced

fessional as well as personal life with

government of Macau has been denting

his official retirement, Ho has no plans

great panache. Ho is known to have four

holes in Ho’s casino monopoly in the

of quitting the SJM Holdings building

wives and as many as 17 children, out

territory since 2002 to curb the rampant

any time soon. Ho will continue to be

of which three will now be heading Ma-

corruption in the industry. However, Ho

regarded as the Chairman Emeritus at

cau’s most prominent companies after

is still in control of as many as 14 out of

SJM Holdings for his exemplary con-

their father’s retirement.

the 30 active casinos in Macau.

tribution in taking the organization to

His daughter, Pancy Ho, succeeded

The SJM Holdings is currently gear-

popularity. The question is whether or

her father after he stepped down from

ing up for the inauguration of its most

not his successors would be able to do

the position of chairman at Shan Tuk

highly ambitious casino facility known

justice to the legacy of the man who

Holdings back in the summer of 2017.

as the Grand Lisboa Palace that is slat-

reigned over Macau for more than half

Pancy is also the executive director

ed to open sometime next year. The

a century? Only time will tell.

and co-chairperson at the China Hold-

$4.6 billion integrated casino resort

ings of MGM. In addition to this, Stanley

is sprawled across an extensive lot of

Ho’s son, Lawrence Ho, operates as the

around 5.5 million square feet in Cotai.

Chief Executive Officer and chairman of

The major focus of the resort will be

unprecedented heights of success and

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41

Italy Goes After Online Gambling Ads

T

he new administration in Italy, led by Premier Luigi Di Maio, the leader of the Five Star Movement (M5S) party, is working to implement a ban on gambling advertisement. The premier has recently discussed the various possible steps that could be taken against online gambling advertisement by the new government.

He spoke of the new coalition’s issues with the gambling industry, especially with regard to online gambling. However, the leader did not specify what those issues were but emphasized that the government would be taking action soon enough.

As promised, it did not take long for Di Magio’s “promises” to be realized.

The government recently established a platform that limited the number of AWP or Amusement with Prizes machines in retail venues by one-third across the country. The same was done for video lottery terminals. As for

gambling sponsorships and advertising, the government implemented a complete ban.

The new rules The coalition’s new bill prohibits any form of advertising that promotes gambling. This includes direct and indirect messages as well. The rule also applies to the sponsorship of brands and products associated with games that offer cash prizes.

Di Maio is also the Minister for Economic Development, Labor, and Social Policies. As a result, he has control over telecommunications as well. When questioned about the new rules, especially against online gambling, Maio replied saying that online gambling was far more “alienating” than slot machines, as gamblers could enjoy access right from their own homes.

land-based gaming facilities as “dark rooms” that allowed people to pass their time without being aware of it.

He referred to the practice as ‘destructive.’

Maio has made it clear that his party will be eliminating gambling as a whole, which was the only solution considering that a ban would only transfer the business into the country’s criminal underworld. However, conflicting reports have emerged stating that a complete ban on gambling isn’t part of Maio’s plan.

An uncertain future A few months ago, the ADM or Agenzia delle Dogane e dei Monopoli, which serves as the country’s gaming regulator, received gambling license applications from several operators.

Some operators even submitted applications for multiple licenses, each costing around $250,000.

Even operators of land-based gaming were not spared. Di Maio described

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43

Online Operators in Bahamas Criticize Tax Hike

T

he Bahamas government has brought out a proposal to hike the current tax rate for internet gaming operations, attracting major criticism from the country’s gambling industry. The administration, led by Prime Minister Huber Minnis, wants to raise the tax rate on online gambling establishments to a maximum of 50% of GGR. At present, operators are taxed at a rate of 11% with regard to revenue and 25% with regard to EBITDA (Earnings Before Interest, Tax, Depreciations, and Amortisation). They are also expected to pay 2% of GGR to charitable or social causes.

Progressive tax rates The Free National Movement Party, which came to power in 2017, wants to get rid of the current rates. Instead, it intends to introduce new rates as part of the 2018-19 budget. The idea is to tax operators on a progressive

scale that will be influenced by revenue. For instance, operators with a revenue of BSD$20m will be required to pay 20% tax.

This means that operators earning a GGR of $20 – $40 million will have to pay a 25% tax rate and those earning a GGR of $40 to $60 million will have to pay a tax rate of 30%. The rates, as stated earlier, progressively increase with the GGR, reaching up to a maximum of 50%.

The proposal will also target end users with a 5% tax on customer deposits.

However, the government isn’t looking to apply the same tax to Bahamian casinos, which exclusively cater to international tourists.

Criticism galore Needless to say, the tax proposal has come under fire from the country’s online gambling operators. Alfred Sears, an attorney for the Baha-

mas Gaming Operators Association (BGOA), issued a letter to the country’s finance minister requesting a consultation. Sears added that operators would have to take up the matter with the Supreme Court if the government failed to entertain the request.

Sears claimed that the highest earning operators would have to pay almost 90% of their revenue as tax under the new proposal, which, he added, was unfair and unconstitutional.

The Bahamas is currently home to around 7 licensed gaming houses that employ 300 people and generate a combined revenue of several million.

In 2017 alone, they generated $196 million. Craig Flowers, CEO of the FML Group, which operates one of the gaming houses, warned that the new tax rate would lead to closures, resulting in the government earning nothing.

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GAMING NEWS

45

Casinos in Hainan Setting Up Baccarat Tables

C

ashlesscasinos operating on the Island Province of Hainan in China are getting ready to get back in business, despite the fact that the government may have other plans for them. According to reports from Bloomberg, around 5 Chinese-owned resorts were busy setting up entertainment offerings such as casino-like games.

The games are designed to deliver winnings in the form of credits that can be redeemed via the concerned resort’s non-gaming amenities.

The “cashless” concept isn’t exactly fresh. A similar trend was followed in 2011. However, it was banned by Beijing after word got out. Gambling in China is illegal, with the exception of Macau, Hong Kong, and state-run lotteries.

Earlier this year, the state considered permitting horseracing in Hainan, but without race betting. There were also plans to expand lottery operations as a way to improve tourism figures. The legalization of casinos

is generally frowned upon in the country.

turning their ballrooms in gaming floors.

However, in a surprising move, one of the local courts here recently permitted the operation of cashless casinos. The development, according to industry analysts, could not have taken place without the approval of the government.

The expectation is that the new cashless casinos will eventually be allowed to offer real-money games of the small-stake variety. The smallstakes theory is based on the idea that it would help prevent money laundering, which is a major problem in Macau.

A cashless-casino future?

According to iGamiX’s Ben Lee, the operators in Hainan are now extremely excited about the possibility of a favorable change. Lee’s opinion is also shared by Liu Feng, the Director of the Hainan Normal University Free Trade Port Research Center. According to Feng, businesses in Hainan were looking forward to less stringent policies and more business-friendly environment after the recent ruling by the local court.

A foggy picture However, the truth is that there’s no official communication to indicate the possibility of legalizing cashless casinos. The current excitement is simply based on the recent court ruling. But, if cashless casinos did get approval, the change could be good for tourism in the province. Plus, regulators can avoid the problems that come with traditional gambling.

Sources have claimed that the resorts are already talking to suppliers concerning the supply of baccarat tables and are even considering

The casinos will also allow local punters to enjoy the gaming experience, without having to spend on overseas trips for the same.

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47

Japan Moves One Step Closer to Legalizing Casinos

T

he Japanese Diet’s Lower House Panel has finally passed the Integrated Resort Implementation Bill in the face of severe criticism from opposition parties, according to a report published by the Japanese Times. The bill is now waiting to receive approval from the full Lower House, after which it will be forwarded to the Upper House.

Lawmakers will be given time till the 20th of June to vote the bill through; before the end of this year’s session.

However, it has been reported that Shinzo Abe’s administration, the LDP (Liberal Democratic Party) and Komeito, its coalition partner, are looking to extend the session for a few more weeks to aid the enactment of the legislation.

Good news for operators The gambling market in Japan has been largely untapped, which has had operators across the globe fix-

ated on it. Many of them have even proposed investing large sums of money, hoping to secure at least one out of what might end up being just an offering of 2 to 3 licenses in total.

tors did not pay heed to certain matters such as the possible increase in gambling addiction. Japan already suffers from increasing rates of Pachinko addiction.

Later last week, Lawrence Ho, the CEO of Melco Resorts & Entertainment issued another statement reiterating Melco’s plan to invest over $10 billion towards the Japanese market. Ho spoke at the recent launch of Melco’s new venue, Morpheus, in Macau. He referred to the Japanese market as a “priceless opportunity.” Ho is willing to invest even if it means having to deal with tight restrictions.

To further their argument, the opposition also cited various surveys and studies.

Opposition galore The vote on the bill saw severe objection from the opposition.

Members of the Japanese Communist Party, Democratic Party, and the Constitutional Democratic Party of Japan voiced their concerns regarding the bill. They felt that the legisla-

Earlier in the week, the opposition even tried to hinder the legislative process by demanding the dismissal of the cabinet minister responsible for the IR bill. However, the motion was rejected by the LDP and the Komeito.

The ruling party has always been open to the idea of casino legalization and the establishment of integrated resorts. The coalition supported their stand, citing that it would drive revenue by boosting the country’s tourism sector.

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48

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49

SJM Holdings Hopes to Reclaim Market Share

A

mbrose So Shu Fai, the chief executive of SJM Holdings Ltd., a company that holds the monopoly to Macau’s casinos, has said that the Grand Lisboa Palace casino resort project that is set to open by mid-2019 will enable the company to regain their shares in gaming earnings of the city. The resort is located in the Cotai district of Macau.

From 2011 to 2017, SJM Holdings Ltd. saw a steady decline in their share of the gross gaming revenue in Macau.

the 6 casino operators with a market share of 31.3 percent of the gross gaming revenue.

The firm had earlier stated that the new project is expected to accommodate as many as 400 live gaming tables. The operators believe that the more gaming tables, the better, and observed that the casinos that had opened up in Cotai recently were granted about 120 to 150 gaming tables.

The company, among the 6 casino operators in the city, has gone down from 29 percent in 2011 by a figure of 12.9 percent to 16.1 percent in 2017.

Plans for expansion SJM Holdings Ltd. is building their project on a land reclamation zone that is located at a short distance from the downtown gaming district of the city. In fact, they are the last among Macau’s gaming operators to do so.

According to reports, 2010 was the last time that the company saw an increase in their market share and was the leader in the market among

A number of competitors are already making plans to expand resorts that have been open in Cotai for only a few months or so. An increase in

hotel capacity seems to be the main agenda in the expansion.

Mr. So has said that although the official launch of the project is scheduled to happen somewhere around the second half of next year, not all facilities and platforms may be open at the time of the launch.

The project is expected to house hotel towers branded with the name, the “Grand Lisboa Palace,” “Palazzo Versace,” and “Karl Lagerfeld.”

There will be a total of two-thousand rooms and is said to be a project that is one of its kind. Initially, the project was scheduled to be completed by the second half of 2018. This plan, however, could not be completed after the Macau Labour Affairs Bureau halted the construction work after the death of a construction worker who fell to the ground from a height of 10 meters.

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