Autumn 2017 Infinity Gaming Magazine

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

EXCLUSIVE INTERVIEW KIRSTY THOMPSON GAMING + ARTICLES + BUSINESS+ GLOBAL + ONLINE + NEWS+ AWARDS + etc

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26 HELPING PROBLEM GAMBLER Teresa Tunstall

17 CARE MARATHON

12 WHITE KNIGHT OR WHITE ELEPHANT Christina Thakor-Rankin

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 June edition of Infinity Gaming Magazine.

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

08 KIRSTY THOMPSON Special Interview

12 BLOCKCHAIN

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Christina Thakor-Rankin

17 UP FOR IT? London Marathon

KIRSTY THOMPSON SPECIAL INTERVIEW

20 SUPER AFFILIATES Lee-Ann Johnstone

SUPER AFFILIATES Lee-Ann Johnstone

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26 HELP Teresa Tunstall

29 MORGAN STANLEY Good News

49 NEWS & MORE NEWS from the gaming industry

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

Autumn has arrived and so to expo and event season

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

Lana Thompson - Editor

Welcome to the Autumn edition of the Infinity Gaming Magazine

Welcome to the Autumn edition of the

Not just this but as always some super

Infinity Gaming Magazine and here we

articles from our contributing writers

are back to work and I bet many of you

Christina Thakor-Rankin, Lee-Ann John-

thinking about all the exhibitions and

stone and Teresa Tunstall helping us

events going on through now till early

cover all the bases in the gaming world.

next year. That means the most important event should be on your radar the

You might think that is enough but oh

11th International Gaming Awards with

no we got all the very latest news and

nominations closing on the 18th Octo-

developments from around the gaming

ber! So if you not had time yet to nomi-

globe to keep you right up to date on

nate you only have a few weeks left to

what is happening.

enter what really is the global event of the year.

Just before I go if any of your lovely readers want to challenge your self

I hope you all had a super summer and

and at the same time support Care In-

recharged for the busy time ahead, well

ternational why not apply to run in the

take a little time off and read this great

London Marathon, details are inside the

edition.

magazine.

We have a superb interview with Kirsty

I will let you get on with reading all the

Thompson the CEO of betting firm 138.

superb articles as always and till next

com.

time.

“To Infinity and Beyond!”

Regards,

Lana INFINITY GAMING

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

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

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

www.1710gaming.com

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

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

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

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

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

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

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.com

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

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Interview with Kirsty Thompson CEO of 138.com

Kirsty many thanks for speaking to us, can we start by asking what is 138.com for our International readers?

So how has it been working with 138.com for the last eight months?

Is the role what you expected or more challenging than you thought?

This year has been a wonderful challenge: we have recruited a number of

Every new adventure brings surprises,

138.com offers both online and in-per-

new staff from across the industry to

but I firmly believe that if you are able

son sports betting and casino games.

bring a renewed focus on serving our

to abide by a clear set of guiding princi-

Online, we operate under license from

customers.

In the last few months,

ples, then you will be able to navigate

both the Isle of Man and United King-

we’ve significantly expanded our prod-

even in the stormiest of times. While

dom regulatory regimes, serving cus-

uct offering, and are building a posi-

my initial few months haven’t been

tomers globally. In addition, we have

tive and forward-looking strategy that

completely plain sailing, the 138 ship

betting shops in both London (Leices-

should allow us to improve our services

is fundamentally sound, and the crew

ter Square, just near Chinatown) and

to customers.

is now on board to chat a positive and

in Manchester’s Chinatown.

Our op-

erations are centred around the English Premier League, where we have a longstanding and valuable relationship with

optimistic path forward.

What are the challenges being a CEO for a large company such as 138.com?

Watford Football Club.

138.com work in multiple regions around the world, what is the main one for the company?

In any organisation – large or small – it

How long has 138.com been in existence?

is important to find the right balance for

The secret lies in understanding who

different priorities. As the CEO, it is my

We operate under license from the Isle

job to balance those different needs,

of Man and United Kingdom gambling

138 has been operating for half a dec-

and by ensuring that we put the cus-

commissions, but we primarily serve

ade.

tomer’s interests first, I’m confident that

customers who are physically located in

we will strike the right balance in the

Asia, as well as the United Kingdom.

long-term.

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Kirsty Thompson Special Interview

The company offers online casino games and sports betting, what makes 138.com a market leader especially in Asia, what does 138. com do better than its rivals?

I certainly didn’t expect that my per-

of PokerStars built a wonderful culture

sonal journey would take me from deal-

of integrity, and service to customers

ing Blackjack in a Southampton Casino,

– they were impressive people to work

to leading a strong online gaming team,

for. I aspire to do a fraction as well as

but entertainment over the last dec-

they did.

ade has changed in almost every enWe’re not concerned with other gam-

deavour – we are no longer in a world

ing companies – our focus is squarely

of broadcast entertainment, but rather,

on our customers. As part of that, we’re

customers are demanding interactive

continuing to be obsessed by improving

and personalised experiences.

our product to serve the needs of our

why we are focused on our customers.

That’s

In terms of career positioning CEO is at the top of the list and you are aware that few ladies make that level, have you got any advice for them on their career progression?

customers, and to communicate effectively with our customers. We’re not in competition with other gaming companies, our attention is on building an effective relationship with our customers.

Kirsty you have been in the gaming industry for more than 21 years now, has it surprised you how huge the industry has grown over that time?

You spent a large part of your career at PokerStars doing a number of roles for the company, what was the experience like working for PokerStars and do you think that experience helped you for your role now at 138.com?

I am not able to provide much advice to others, but can only share from my own experience: that I believe that it has been absolutely essential and pivotal to focus on the interest of my customers: whether they have been internal or external, businesses or consumers. Fundamentally, I believe that if you are able

I was very grateful to have had the op-

to create value for others, your career

portunity to work as a representative

can only prosper – in any endeavour, in

of the PokerStars brand. The founders

any industry.

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Kirsty Thompson Special Interview

Do you think that it is more difficult for women on having to work harder and prove themselves to reach the top?

Team at PokerStars, how important is team work at 138.com?

tomers: delivering an engaging and en-

Team work is essential to any successful

worry about background financial deals

endeavour. At 138, we have a wonder-

and trades, because my focus is on giving

ful group of people, who all share our

our customers a fun and safe experience.

My only experience is one person’s ca-

commitment to serving our customers.

reer in the gaming industry, and can’t

No one human being can build some-

speak for anyone else in that respect.

thing as simple as a pencil – so you can

I’ve been blessed to work alongside

be absolutely certain that no one hu-

many wonderful men, and many won-

man can operate an online gaming site

derful women, who each have different

alone.

aptitudes, and different experiences, in life.

To adapt from the President of Harvard University, I am not the woman CEO of 138. I am the CEO of 138.

Back in 2013 you won an award at the Women in Gaming Awards for Team of the Year with the UKIPT

tertainment experience. I’ll let others

Finally Kirsty before we let you go, what can you tell us for what 138. com has planned for this year and the future?

Our focus is to continue improving our

Back to the company and as we have all seen mergers and acquisitions have been huge over the past few years, what is the companies thoughts on this, is there a need for more companies to join forces to grow or can it be done organically?

catalogue of products, because we think that is what our customers want from us. As part of that, we are excited to deploy various new games, and various new product lines, and to continue to improve our focus on serving our customers.

My focus at 138 is on serving our cus-

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AUTUMN 2017

Blockchain:

White Knight or White Elephant

By Christina Thakor-Rankin

T

outed by many as the ‘new internet’ – a game changer and disrupter, blockchain promises to radically and irrevocably change the way in which we think about transactions and their application in all aspect of life, from the world of business and commerce to personal interactions with each other.

To date the poster-boy and most publicly recognisable face of blockchain has been Bitcoin, which despite blotting its copy-book by being the currency of choice for those trading and transacting in the murky underworld of the ‘dark-web’, appears to be coming back into favour again, albeit under the general umbrella of cryptocurrency.

This, coupled with the fact that financial institutes amongst other major sectors are actively exploring the application and benefits of blockchain, the launch of Ethereum, a blockchain platform which allows developers to create their own ‘smart contracts’, ‘trust-less’ crowd sales and create and issue their own crypto-currency (the

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equivalent of a digital money-tree) is keeping the blockchain discussion front of mind.

not only shared but also continually reconciled as changes to the data are made.

For those who are not especially familiar with the concept, blockchain is: ‘a distributed ledger technology (or ‘DTL’) that keeps a permanent, tamper-proof list of records.’

In simple terms blockchain provides a permanent, tamper-proof record of the entire life history of anything of value from its creation onwards.

Blockchain takes a ‘transaction’ or set of ‘transactions’ (this can be a payment, a set of contract clauses, any form of record, data or information), bundles them in a block and chains the blocks together using hashes (a reference key for the record). Each transaction block is timestamped and recorded chronologically, forming an immutable (unbreakable) chain.

The records, or ‘blocks’ of information, are maintained by a peerto-peer network – everyone in the network shares control of the information so there is no longer any need for a central controller.

When changes are made to the information, or ledger, those changes are recorded across the blockchain.

Information on the blockchain is

So, is blockchain all it is cracked up to be, and how long before it starts to play a part in our daily lives? The short answer is, maybe - but there are a few challenges to overcome first.

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Jeff Sessions

In the case of currencies this would be

middle’, both of which require end us-

tion such as Bitcoin gambling sites as it

where it came from, who has owned it,

ers to have a degree of trust, redundant,

allows users to mask their true identi-

who owns it and how much they have,

with the immediate benefits being ef-

ties and operate at arms-length in a way

whilst in the case of goods it would be a

ficiencies of process and reduction in

which real cash does not. The block-

tamper-proof history of the entire sup-

costs, verifiable ‘public’ records which

chain and Bitcoin is not about trusting

ply change.

cannot be interfered with or corrupted

the person, it is about trusting the trans-

reduction of error, and because there is

action.

Having a full tamper-proof history of

no centralisation there is no single point

anything of value means that fraudsters

of failure.

cannot manipulate records or gain ac-

Secondly, there is the question of regulation. End users need the comfort of a

cess to something which is not theirs

So, is blockchain all it is cracked up

protective framework, and somewhere

without everyone knowing, for a trans-

to be, and how long before it starts to

to go when things do not go as planned.

action which cannot be validated by the

play a part in our daily lives? The short

Currently blockchain appears to be a

peer to peer network will not be pro-

answer is, maybe - but there are a few

law unto itself – not unlike the internet

cessed. It always individuals who do not

challenges to overcome first.

when it first started. Even in the case of

trust each other to be able to transact in an environment of trust.

something as well established as the inFirstly, there is the question of trust.

ternet now is, the world is still navigat-

Whilst many may not be familiar with

ing the challenges of protecting users

The fact that everyone in the network

the concept of blockchain, they are fa-

and addressing criminality in a digital

has access to the records makes the

miliar with the stories about Bitcoin

world without borders.

need for a central database and admin-

being used by criminals, terrorists, and

istrator/controller, or the ‘man-in-the

those seeking ways to by-pass regula-

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BLOCKCHAIN

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By Christina Thakor-Rankin

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Each negative experience brings a call

blockchain platforms with no real gov-

World Cup final day, or an RNG driving

for regulation of sorts - the most recent

ernance or standard protocols which

a network jackpot which is offered by

being the call for social media sites to

means that currently it is very difficult

multiple individual operators to 100s or

do more in the fight against bullying and

for one blockchain to plug-in to another

concurrent players to the time taken to

terror. Just as the on-going evolution of

blockchain, thus restricting its universal

process a blockchain transaction. David

the internet will continue to bring new

applicability.

Gilbert of the IB Times states ‘The average time it takes for a Bitcoin transac-

concerns and the need for rules to address those concerns, so the world can

There is also the issue of how to tran-

tion to be verified is now 43 minutes,

expect the same challenges and con-

sition from the technology of today to

and some transactions remain unveri-

cerns with the evolution of emerging

the technology of tomorrow, and the

fied forever’.

technologies such as blockchain.

challenges of how blockchain might sit alongside, or be integrated into legacy

Within the world of betting and gam-

Other challenges which will need to be

systems. Many companies are still fac-

bling, a bet that cannot be confirmed

addressed relate to systems and tran-

ing the challenges of upgrading old in-

before the ‘off’, or a spin which takes

sitioning between the present and the

frastructure and systems to bring them

minutes to result, or never results is

future.

up to date with today’s world, let alone

simply not an option. Until blockchain

compatibility with a future technology

systems can operate in real-time the

which is not yet unproven.

world or gambling, and others including

The evolution of the Internet of Things (IoT) has led to the development of uni-

payments where customers now expect

versal protocols and operating systems

Further, blockchain may claim to in-

instant authorisation and execution is

which allow different technologies and

crease speed and add cost efficiencies

some way off.

devices to plug-in to each other, sup-

by cutting out the middle-man and in-

porting a fully connected and end user

termediaries but this is more concep-

experience.

tual principle than reality.

Blockchain is only at the start of its

Compare the performance of a sports

journey. There are still too many dif-

betting platform on Grand National or

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GAMING NEWS

AUTUMN 2017

London Marathon call for runners to support Care International

D

o you fancy taking on the London marathon?

Well our charity that we have supported for several year and raised hundred of thousands are asking if anyone from the gaming industry wants to take on the challenge.

We have partnered with CARE International for the last seven years, raising over £121,750 for their work putting an end to poverty around the world and responding with lifesaving assistance in emergencies.

We’re passionate about the difference supporting CARE makes, and we would like to invite you and even your colleagues to support CARE by running the London Marathon in 2018.

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

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

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

The Infinity Gaming Maga-

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GAMING NEWS

AUTUMN 2017

GVC in for Ladbrokes Coral all dependant on October review

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he October Government review of FOBTs wagering and advertising standards could trigger a new round of Mergers and Acquisitions (M&A) according to insiders.

Ladbrokes Coral Plc are the biggest targets depending on the outcome of the review should the Government decide to reduce the amount staked on FOBT’S which could impact some £400 million in revenues a year to Ladbrokes Coral betting shop business where FOBT’s stand.

In the latest set of results the betting company that merged in November 2016 has shown stronger operating profits of £51 million but still the share price has not reflected that with the fear of FOBT’s being hit hard with reduced stakes.

The stalking horse on any potential acquisition would be GVC Holdings which has already had two attempts of

acquiring Ladbrokes Coral, most recently last August when the betting giant offered a reported £3.6 billion.

Everything depends on what the Government decides to do with FOBT’s and possible restriction on advertising towards the betting industry.

Could the industry see another round of M&A’s? More will be known in the coming weeks.

Spanish online gaming market invites more operators The Spanish online gaming market is ready to expand and offer licenses to more online operators according to the Dirección General de Ordenación del Juego (DGOJ) the regulator charged with overseeing the market in Spain.

It will soon be accepting applications from new operators looking to enter the Spanish market, it is understood that the application process will be open for one year, although it is not open yet and operators will now within the first six months of applying is they are successful.

The last time the DGOJ invited operators to apply for a license was back in 2015 when 10 new licenses were granted, it is not clear at present how many will be issued this time around.

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Super Affiliates & M&A

Where is Affiliate Marketing Headed?

By Lee-Ann Johnstone

T

he affiliate landscape is changing. Super affiliates are acquiring smaller affiliate brands. Affiliates are becoming operators and operators are closing their programmes because of regulatory fears…

play, working practices and relationships that make this channel successful.

The ecosystem is morphing into a more mature state of business which was bound to happen as the channel has grown significantly for the past few years. In this market, the average affiliate needs to be aware of every facet of their business, to effect growth, if they are looking to sell. Where will this recent flurry of M&A lead us, what sort of monopoly is going to be in play and how will it change the working relationships that form some of the largest acquisition marketing channels operators depend on today?

With regulation becoming stricter, affiliates have to be more diligent in running their businesses, implementing their own due diligence practices and focusing on commercial, and regulator advice to operate successfully.

This means increased investment into running and operating the business, not just the brand or traffic driving activity. Affiliates must get a bit serious about operating their businesses.

One bad decision from an affiliate can discourage operators from working with them in future and also impact their own revenue streams.

Awareness of Regulation Regulation has been high on everyone’s agenda lately with the Gambling Commission baring its teeth and fining operators for bad affiliate behaviour in terms of advertising conduct. I’ve been asking myself what this means for affiliates in future and how the changing M&A space will effect the current state of

We now seem to be in an environment where affiliates and operators must go above and beyond in terms of making these relationships work, which means both sides need to ensure that knowledge share and appropriate messaging are passed collaboratively to avoid a strike. There will be a bigger emphasis to invest in self lead training and staff development,

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I’ve concluded that recent changes mean opportunities for better growth and innovation.

to ensure affiliate businesses run effectively within the guided rules.

Expanding into New Territories & Building brands With so many operators looking to expand their reach to new casino markets, affiliates must follow suite if they wish to continue growing or carving a value added niche. This may include seeking out translators or finding new ways to create content. While it’s important to look outside of the UK for new opportunities to invest in, it must be done properly. Affiliates are no longer just driving traffic from one source to another, they are investing to build brands that perform a value add function within the sales funnel.

They are seeking to help educate a potential new customer before they consider making a purchase (Or deposit / wager).

The content and capabilities of affiliates who build technology and brands that can sway customer choice means they play a bigger role in acquisition marketing funnel from an operator perspective because of the way in which they are remunerated. It’s far cheaper to invest in an affiliate channel where you pay post

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Vetting a partner, instead of just accepting any that choose to make an offer. Predatory terms and programme closures are just some of the aspects that due diligence can help affiliates to avoid. As operators become more picky about who they partner up with after recent fines, this will create an environment in which those that want to advertise responsibly will work with others that do the same.

sale vs. trying to expand your brand direct in foreign territories via paid advertising.

This symbiotic brand relationship also goes much further than just first time depositors and can act as a more effective method of engaging lapsed players in foreign regions too. While operators can send out emails and special offers, a local trusted affiliate brand can be much more effective in actually encouraging them to deposit.

This adds an additional layer of value to the ecosystem of the affiliate marketing channel.

Buying and Selling Businesses While building a brand, affiliates must be aware that investors are looking for a clean deal. This means they want to see white hat SEO, marketable assets and perhaps even a management buy out option. Not every company in the market for a new brand is looking for a quick sell and go from the previous owners, some would prefer a handover of sorts.

Knowing what a brand is worth can be tricky, as everyone will have their own perception of asset value. Right now a single multiple of turn over is still acceptable in valuation consultation. Any blemishes like black hat SEO or obstacles to sale will potentially devalue the asset base or even prevent a sale during due diligence processes which are performed ahead of purchase. Therefore there is even more responsibility being placed on affiliates to run legitimate marketing businesses, from the contracts they sign to the processes they have and the staff they employ. Affiliates is now serious business.

Becoming More Professional Gone are the days when affiliate marketing was considered a bit shady and unprofessional. Affiliates are taking big steps to ensure they work with the right people for long term growth.

They are highly selective about who they market and it’s not unfeasible for an affiliate to ruin their brand reputation almost overnight.

Overall, our industry is growing up and it’s doing so in a way that means affiliates can have take advantage of having the upper hand. While larger brands may choose to close their programmes over regulatory fears, smaller brands still need this channel to grow and therefore will be open to building sustainable relationships for long term gain.

Affiliates that innovate and build sustainable businesses in this changing ecosystem, will seek to become a larger part of the player lifecycle and will work with operators that see value in their collaboration. It’s feasible to say that building tactical and enriching brands will be a challenge for affiliates, but those that wish to stay ahead of the game will take this in their stride. Management and regulation are key to any business’ growth and shouldn’t be viewed as a negative opportunity.

Despite the changes in the ecosystem (M&A, Super Affiliate Monopoly or Affiliates becoming operators) the channel cannot be ignored those that work now to harness the change ahead will benefit most.

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GAMING NEWS

AUTUMN 2017

Gambling Innovations that’ll Impact the Market in the Next 5 Years

A

s technology evolves, it continues to impact entire industries. The gambling industry is one of them. In fact, there are a few key technological innovations that are set to change the face of gambling in the near future.

Let’s look at a few of them.

inside of an actual casino.

VR (Virtual Reality) VR is slowly gaining ground as a viable business offering. VR devices such as the Samsung Gear VR and the Oculus Rift have played a pivotal role in ensuring that the technology isn’t forgotten. So, it’s only natural that the gambling sector has taken an interest.

eSports eSports is showing plenty of growth too. If estimates are to be believed, the revenue from eSports will touch the $1.5 billion mark in half a decade. eSports is on the way to becoming a big deal and we already have eSport tournaments taking place across the globe.

We are already witnessing the creation of the VR Casino. In fact, options such as SlotsMillion VR and Casino VR are already on the market.

Though there is some starting trouble, experts indicate that the idea has plenty of potential.

One example would be the League of Legends Championship that took birth in 2011. Today, the tournament offers a prize pool worth 6.7 million dollars and caters to over 40 million viewers.

As the technology grows, we will soon be able to recreate the same magic that customers experience

For example, a company called NetEnt in Scandinavia is working on an offering that will make it possible for VR slots to be offered as part of the options in a VR casino. Other developers are trying to keep up as well.

Advanced mobile platforms Mobile gaming is also getting warmer by the day and will likely reach peak temperature soon enough. Last

year, revenues from mobile gaming were far higher than the revenues earned via PC and console gaming.

To be more specific, revenues hit 36.9 billion dollars.

In contrast, PC And console gaming touched 31.9 billion and 29 billion, respectively.

A significant chunk of those revenues is said to have come from mobile gambling apps. There is a growing demand in terms of gaming on the go and a fair bit of that demand comes from gambling aficionados.

Legal reforms Restrictions on online gambling are being relaxed across the globe as there seems to be a change in the attitude towards the practice. For instance, many states in the US have already legalized online gambling.

In some Asian countries, governments are looking at online gambling as a good source of revenue.

This trend is likely to transfer to other countries as well.

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03-05 OCTOBER 2017, LAS VEGAS, USA

STAND 4823

GAMING NEWS

AUTUMN 2017

Three Japanese Cities Identified for Wynn Resort IF They Get A License

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teve Wynn, the casino entrepreneur, and the Wynn Resorts Ltd. chairman is currently on the lookout for procuring a casino license for establishing an integrated resort in Japan. On his quest to exploring his options in the country, Wynn has outlined that the cities of Yokohama, Osaka, and Tokyo are the best places in Japan for procuring all the support in terms of top quality staff and raw material required by a casino operator like him to open a new world class integrated resort.

Wynn Resorts Ltd currently owns casino operations in Macau and Las Vegas and is also gearing up for the opening of a US$2.4 billion worth full-fledged integrated resort on the East Coast in the United States, called the Wynn Boston Harbor, sometime in the summer of 2019.

In a memo released in July this

year, the Brokerage Union Gaming Securities Asia Ltd had outlined that Japan runs the risk of losing a lot in terms of revenues if the regulatory authorities impose too stringent legislation for the casino operations in the country. To this effect, Wynn was interviewed by the Nikkei Asian Review and asked to share his point of view regarding the gambling laws in Japan.

Wynn responded by saying that it is the rules and regulations that actually make all the difference between the success or failure of a particular country’s operations. He further added that the lawmakers in the country have always had their fair share of involvement in the gambling and casino industry and it is up to them to decide whether they wish to make rules that promote the growth and expansion of the business in the country or impose regulations that would be detrimental to

it. According to him, all the different government rules and tax laws heavily impact the infrastructural implication of the casino operations, consequently influencing their success in terms of growth and revenue.

As reported by the Japanese media, the ruling party Liberal Democratic in the country has reached a common ground with Komeito for supporting the issuance of the IR Implementation Bill during the autumn Extraordinary session at the Parliament.

Wynn was also questioned about his views on the anti corruption drive being carried out in China, to which he responded by saying that since his company caters to the VIP gamblers in the country, its business has not been affected much by the change in legislation.

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AUTUMN 2017

HELPING THE PROBLEM GAMBLER

By Teresa Tunstall

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he Gambling Commission of Great Britain is in its second year of issuing ‘Assurance statements,’ to a small number of gambling businesses. These are accountability statements, providing concise self-assessments, risk management of consumer protection, gambling related harm, crime prevention measures and how they are managed. This is an important revolutionary move that will also challenge Boards to provide constructive effectiveness of governance within their business.

Many years ago while working in my first London casino I experienced what would now be recognised as problem gambling, whilst dealing Blackjack with 5 players on my table that I was shocked when one of the players raised his hands stopping the game, I hesitated, other players questioned his actions. At this he turned to my shocked inspector dragging his Omega watch off his wrist and urging my inspector to give him money to enable him to continue his gambling, he was led away to a quiet corner of the casino and I never saw him again. I often wonder what happened to my punter but I do know he was not allowed to continue gambling our casino.

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Another regular player, a quiet gentleman with his own business, however, hearts sunk when he walked in the casino he was always there until the end or when he ran out of money. One particular Friday afternoon on my Blackjack table he’d already negotiated with management to raise the limit on the Blackjack table to minimum £25 a box which would eliminate small and maybe inexperienced players from joining the game. As I continued to deal he continued to lose until the manager was quietly informing him that he had no more availability of money for the day, it was at that point his opened his brief case which was full of small brown envelopes. It was known that he owned shoe shops and these were wages packets for his staff, he then proceeded to tear open each one pouring the money onto the Blackjack table, he looked up at me somewhat embarrassed so I took this opportunity, knowing I had my inspector almost sitting on my shoulder, I whispered, “Why don’t you take a break,” I asked, “go get a coffee,” he shook his head, “I can’t, I can’t.”

Within weeks word went round the casino that his family had informed every casino in London that they would no longer be responsible

for his gambling debts, with this information overnight every London casino barred him. However, I was later to learn that he turned his life around qualifying as a psychotherapist, perhaps to try and understand what happened in his life that caused him to escalate into problem gambling.

In those days there was no legal requirement to recognise problem gambling nowadays awareness is rightfully officially recognised if not totally understood. Recently, I spent time with recovering problem gamblers, both in their 30’s one addicted to gambling machines the other to race-courses describing their disrupted lives. When I informed them that I had worked in casinos for 15 years their faces broke into wry smiles, “they’re bent” said one guy, the other asked, “fixed?” I found it incredulous basically they were still looking to blame the gambling and betting industry rather than their own actions. I tried to explain the ‘house,’ has to have an edge otherwise how do they pay the rent, rates, staff, the same as any business. It’s always difficult to equate and justify gambling as a form of entertainment to those who have developed a problem, that out for an evening

AUTUMN 2017

for a drink, dinner and perhaps a show consider the cost in relation to the money they would spend whilst gambling. Also, the biggest safe guard is our Gambling Commission that oversees all gaming regulation that the UK has the best safeguards and requirements which are recognised worldwide.

When I mentioned to their therapist that her clients believed that casino’s card games or roulette wheels were fixed she replied this was not something covered in therapy instead their future without gambling was focused on. I would contradict that, surely the knowledge that gaming and betting in the UK is safe and honest is an important issue that gamblers should know of and recognise.

fits all; they believe you just don’t want them to continue gambling because you know they’ll eventually win, those who believe the games are fixed, those who believe their luck is about to change, those who are chasing their money. Sadly, they are manipulative, convincing liars when it comes to their gambling persuading family and friends their borrowing money will be short term. The question that should be on everyone’s lips should be when a gambler falls into the category of ‘at risk,’ or problem gambling barring them or self-exclusion is not a magic wand for an addict, it’s just not enough and doesn’t cure the problem. You might consider they’re at risk but what if they don’t and decide to go to another casino, betting shop or online gambling.

Problem gamblers are never one size

When those in trouble finally call for

gambling addict first to admit to having a problem the next is to source help, one problem gambler told me, realising he had to get help that he didn’t want to use his mobile phone in case his wife checked the number it had to be a telephone box. This couldn’t be any old telephone box he searched for one where nobody from his company would see and wonder why he was using a phone box, it would also have to be isolated so nobody would wait outside possibly hear what he was saying. Unfortunately when he did finally make a call to the helpline he panicked as soon as he got a response and promptly hung up, totally overwhelmed by the experience.

The key to all addiction is awareness and receiving help, without that little will change.

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AUTUMN 2017

Morgan Stanley Positive Growth Prospects for Chinese Gambling in the Philippines

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s outlined ona note released by the banking giant Morgan Stanley, given the fact that the Chinese tourists enjoy Visa-Free access to the Philippines and the junket proxy betting is already gaining a lot of momentum in the country, the Chinese gambling market is likely to expand on the Philippines soil in the near future.

According to the statement, the bank further added that the world class casino resorts that have recently been established in Manila have been designed in such a way so as to cater to the next generation needs and requirements of the industry both on a foreign and domestic level. The report also highlighted the fact that nearly 30% of the GGR or gross gaming revenue for the first half of this year at the famous Solitaire Resort and Casino in Manila, comprised of the revenues

gained from Chinese customers.

Offering their valuable insight into the data obtained by Morgan Stanley’s propriety research and the Bloomberry Resorts Corp, analysts Praveen Choudhary and Alex Poon stated that the key drivers for the expansion of Chinese market in the Philippines are the strong year-on-year visitor arrivals from China and the junket operators in Macau.

The analysts further added that when looking at the figures of the Chinese contribution to the gross gaming revenues of Macau, South Korean and Australian operators, it can be safely said that the Philippines too stands a substantial chance for the proliferation of Chinese market on their soil.

They also said that given the fact that a new legislation allows Visas on arrival to the Philippines for the Chinese visitors, the influx of the Chinese gam-

blers and players is likely to skyrocket within the next couple of months.

According to the analyst report, Bloomberry is currently working with acquiring more number of customers from cities other than Manila, especially after the NAIA expressway was opened for public use in December last year. Also, in a press release by the newspaper, Philippine Star stated that the famous casino operator from Macau, Galaxy Entertainment Group Ltd, is mulling over a partnership with Philippines’ Resorts World Corp’s Alfredo Benitez for developing a land-based casino venture in the latter’s country. Although the details of the partnership are yet to be revealed, Galaxy Entertainment stands its ground by saying that they are actively exploring overseas opportunities for expanding their business.

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GAMING NEWS

AUTUMN 2017

Online Betting Settlement Expected to Facilitate Barbuda’s Recovery from Irma

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he small Caribbean island of Barbuda has 1,700 residents.

But Hurricane Irma, the Category 5 storm, has changed the face of the island, turning it into a lifeless mass of land in the sea. For the first time in about three centuries, this small island has nobody living on it.

All residents were evacuated to Antigua, the sister island of Barbuda following the catastrophe. The hurricane devastated about 95 percent of the island’s structures. Even worse were the strong winds and heavy rains that the island faced earlier this week. The cause: Hurricane Maria, a Category 4 storm, which hit Puerto Rico.

Relief from online gambling Currently, the primary focus of the island nation is ‘relief’. Recovery efforts and reconstruction discussions are underway to facilitate the coun-

try’s restoration. But it won’t happen so easily because the estimated funds required for the purpose ranges somewhere between $250 and $300 million. Barbuda’s ambassador hopes that the island nation would be able to afford this price if the United States pays back what it owes after a 14-year trade conflict over online gambling.

Ever since online gambling became a full-fledged phenomenon, some gambling companies moved to the island nation. When the United States started cracking down on gambling site operators to restrict online gaming, Barbuda reckoned a negative effect on its economy. The World Trade Organization gave a ruling in 2004 that the United States breached trade agreements by stopping online betting in Barbuda and Antigua.

enormous loss of $21 million annually as a result of the ban. Because the country got no payments from the United States, they got the privilege to elude American intellectual property rights as a measure to recover their losses. Antigua and Barbuda make a GDP of $1.5 billion a year. It would be a huge pressure on Barbuda’s financial resources if the country were to expend for its recovery from the disaster.

But members of Congress are requesting the Trump administration to provide humanitarian immigration status to people from the Caribbean affected by the hurricane. Although such assistance is underway, officials believe that the island would take several months to become livable again.

But, whether the U.S would settle the online gambling debt with Barbuda is still unknown.

Antigua and Barbuda suffered an

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GAMING NEWS

AUTUMN 2017

Nevada Gaming Commission to Strike an Agreement Between Gambling and Weed Industries

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evada legalized the sale of recreational marijuana on 1st July 2017, after which the industry has been churning huge amounts in sales. Legislators expected that about $100 million would flow in as state tax revenue in the first two years of the state’s legalization. But the industry made about $3 million as sales revenue within just four days of legalization.

The breakup of this figure is even more incredible: $750,000 per day and approximately $125,000 in state taxes.

The effect on gambling companies The legalization of recreational marijuana has certainly made life a lot easier for people. But gambling companies are likely to face a challenging time. The use and sale of recreational marijuana are still considered a violation of the federal law. Despite demands from tourists, the federal law prohibits consumption of weed outside private premises. Such places include restaurants, casinos, parks, bars, and on any property belonging to the federal government. This has pushed the state’s regulators to pose resistance because they wish to keep gaming companies away from anything that is federally illegal.

This has called the Nevada Gaming Commission to step in and address interactions between the casino and

weed industries in the state. Nevada Governor Brian Sandoval formed a committee and ordered them to formulate policy recommendations to govern interactions between the two industries. Sandoval signed on Wednesday an executive order calling the Nevada Gaming Policy Committee, which comprises of casino representatives, gambling regulators, and other parties.

Chairman of the Gaming Control Board, A.G. Burnett, who is also a member of the committee, said that the gambling industry faces questions, including whether or not casino resorts can follow weed-related conventions. He also states that how the cash proceeds arising from pot transactions can reach the state’s

casinos. The committee is expected to address interactions between the gambling and weed industries and decide whether or not casinos can have financial transactions with people who use and sell marijuana.

The Marijuana Business Conference and Expo is set to be held in November this year, and the event is expected to attract about 650 exhibitors or more. Sandoval opposed the legalization initially but said that he would consider people’s willingness and launched a sale program to speed up revenue collection from state marijuana taxes. But the committee is expected to make policy recommendations by June 2018 as per Sandoval’s executive order.

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GAMING NEWS

AUTUMN 2017

New Online Gaming Bill on the Cards for Michigan

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ccording to a recent press report, the lawmakers in the state of Michigan in the United States are mulling over the prospect of passing a new bill that legalizes online gambling within the state. A bill named H4926 that seems to have taken its cue from an earlier Bill 203 issued in the Senate, was recently introduced by State Rep Brandt Iden in the house. Exploring the issue of tribal taxation and local gaming, the Bill 203 was proposed by Senator Mike Kowall a couple of months back.

While the Bill 203 required both the federally recognized state tribes and casinos in the state to give up their right to sovereignty for receiving an online gaming license, the House Bill H4926 states that any recognized tribe of the state of Michigan can procure an online gambling license provided

that they possess the necessary authorization as stipulated in the Indian Gaming Regulatory Act. The House Bill H4926 allows a window of a year to identify suitable rules and regulations that would be able to adequately govern the task of licensing and operation of the Internet gambling websites in Michigan. Also, the bill proposes revising the age limit for gambling eligibility in the state to 21 years.

The bill also proposes a legislative amendment that would authorize the state of Michigan to sign with other jurisdictions and states, an interstate compact that legalizes online gambling. Additionally, the bill also issues a legislation that obligates all online gambling operators to include online poker in their suite of games as well.

According to the bill, all the online gaming companies will need to submit upfront an application fee worth $100,000 for acquiring a five-year license. In addition to this, the total cost of a five-year license would include a first-year payment of $200,000 along with subsequent annual payments of $100,000. Apart from this, the vendor and platform license charges for a period of five years would require an upfront payment of $5000 and $100,000 respectively.

The Bill H4926 also proposes a tax of 15% to be submitted by all the online casino operators, with an opportunity to lower the figure in case the state of Michigan enters into a new or revised contract with a tribe with the aim of conducting the business of online gambling.

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GAMING NEWS

AUTUMN 2017

New Michigan Law Says Social Media Game Cannot be Regarded as Gambling

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ecently, the Government in Michigan passed a new piece of legislation that outlines the fact that the games on social media that award their winners with additional playing time are not to be touted as gambling anymore.

According to the report submitted

by The Associated Press, Rick Snyder, the Governor of Michigan signed the dotted line on the Senate Bill 202 that eliminates the need for the application of state gambling laws to online social media games as they fall in an entirely different league from regular sports betting or online gambling.

As per the definition outlined in the Senate Bill, social media Internet games are online games that are available for the entertainment of the users on one or all of the three digital media platforms that include the telephone, mobile device or the Internet. Introduced

by Jack Brandanburg, a Republican Senator earlier in March this year, the new legislation states that the Michigan Penal Code Chapter 44 will not forbid any online social media games from rewarding their players with additional play time. However, the Senate Bill does not include any such specifications for ‘online fantasy sports’.

Before the Senate Bill came into effect, it was established that a number of gambling operators were employing the use of online social media games as an instrument for marketing their products and acquiring new customers. As remarked by the lawmakers in Michigan, given their expansive exposure and easy accessibility to a large user base, the popularity of the online social media games has skyrocketed in the recent times.

provided in a sensational Supreme Court Case back in the eighties, a social network game that offers its players the privilege of buying extra game time is essentially creating tangible value and must, therefore, be regarded as akin to regular gambling. As remarked by the lawmakers in Michigan, they were faced with a lot of opposition while trying to amend the previous legislation and exempting the online social media games from the traditional gambling laws.

An analysis by the House Fiscal Agency stated that since a majority of the local gambling operations typically incorporate social media gaming as a marketing tool for acquiring new customers and expanding their business and not for the purpose of generating revenues, the online social media games must be exempted from the gambling laws.

However, according to the judgment

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GAMING NEWS

AUTUMN 2017

Sportech’s CEO & CFO both resign

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nline Gaming company Sportech have announced that their Chief Executive Officer and Chief Finance Officer and both to step down following their resignations were tended to the Board.

he presided over the transformation of the company from a UK-focused business into a respected, fully licensed and regulated global gaming technology supplier and gambling operator in the US with a strong balance sheet.”

Ian Penrose the CEO and Mickey Kalifa the CFO are to leave over the coming weeks and months with both assisting in what the company said would be an “orderly transition in the coming months”

“Mickey led a remarkable transformation in the company’s financial strength as CFO and previously when corporate development director, in prominently driving Sportech’s global expansion.”

Sportech’s non-executive chairman Richard McGuire said, “We would like to thank Ian for the tremendous job he has performed at Sportech;

Penrose said on his pending departure: “I have enjoyed my time at Sportech in which the company has enjoyed a transformational period

from a rapidly, and many thought terminally, declining UK business with debts exceeding £112m (€127.5m/$152.4m) and 5x leverage, into the business it is today.”

Kalifa also said: “I have been with Sportech for eight years and have thoroughly enjoyed my time at the company and driving the group’s successful financial turnaround.

“However, I believe it is time to move to the next stage of my career. I am very confident that Sportech will continue to deliver value for shareholders and customers alike.”

Paddy Power offer odds on deceased player

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addy Power made a serious error on their latest offerings for the odds on the next Birmingham City Manager when placing recently deceased former footballer Ugo Ehiogu as one of the contenders.

Known for its entertaining betting marketing Paddy Power messed up when it included Ehiogu when using an older version template to create the market and did not realised Ehiogu was still in the betting.

The ex-Aston Villa and England defender died in April after suffering a cardiac arrest while taking training sessions at Tottenham’s training ground where he was a coach.

The company later issued a statement saying: “This was a genuine error, a trader re-used an old market as a template for this one, and didn’t notice that Mr Ehiogu was included.

“Obviously, that was a mistake, one which was rectified as soon as it was spotted, within minutes.”

When Paddy Power released the market bets following the departure of Harry Redknapp over the weekend it included Ehiogu in the market at 66/1 along with other recognised managers such as Sam Allardyce and Frank de Boer but also included more way out contenders as rocker Ozzy Osbourne at 2,500/1.

A spokesman said customers were able to put money on Ehiogu for “less than five minutes” before the error was discovered, adding that nobody actually placed that par

ticular bet. He added: “We would like to apologise to Mr Ehiogu’s family if they did see the tweet. “It was obviously a mistake and no offence was meant.”

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AUTUMN 2017

Differences Stall Legislation for Online Gaming in Pennsylvania

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he state government of Pennsylvania has yet again provided proof of its indecisiveness and inability to come to a common ground by impeding the legislation process for online gaming that has been a major point of discussion for several months now, to say the least. In the wake of the current economic crunch that the state is experiencing, the lawmakers are constantly trying to devise strategies for increasing the state revenues by different means.

of paying additional taxes and the House that is largely dominated by the Republicans.

HB1235 back in 2013 for the legalization of both online casino games and online poker.

Apart from this, both the Senate and the House proposed the idea of promoting online gaming as a means for procuring higher revenues and addressing the budget shortfall. However, this proposal too sparked a lot of heated discussions and debates on how exactly the government proposes to generate revenues through online gambling.

While there have been numerous discussions among the Governor, the Senate and the House, their inability to resolve the crisis has ensured that the state still experiences a whopping $2 million shortfall in the budget. The governor of Pennsylvania Tom Wolf proposed levying hefty taxes from the general public in the state to compensate for the shortfall. However, his proposal met with major opposition both from the citizens who shunned the idea

Looking back at the history of online gambling in Pennsylvania, the racetracks and land based casinos in the state have been quite a success in the past. However, when both Delaware and New Jersey issued legalization for online gaming, the lawmakers in Pennsylvania too started considering a new legislation for making the activity legal in the state. As a result of which, Tina Davis the State Representative in Pennsylvania Introduced a bill

The HB1235 was actively opposed

by Governor Tom Wolf on the pretext that online gambling was more of a temporary and volatile fix to the situation and more stable measure such as tax increase was required.

Both the House and Senate opposed Wolf’s idea leading to the reintroduction of the 2013 Bill by the House Representative John Payne with a different name HB649. Given the fact that the Senate did not wish to stay in the background, Senator Kim Ward too introduced another SB900 for revising the licensing regulations for online gambling.

In a nutshell, the legislation for online gambling in Pennsylvania currently appears to be a lost cause and there is still a long way to go before the lawmakers are able to reach a common ground.

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GAMING NEWS

AUTUMN 2017

Paraguay Plans to Monopolize License for Sports Betting

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ccording to a recent press release in the country, Paraguay is mulling over the plans for stripping down individual betting operations and creating a single licensed operator for the purpose of promoting sports betting. As reported by a news website, the National Gaming Commission or Conjazar in Paraguay is planning to issue orders for the seven existing licensed sports betting operators in the country to essentially compete with one another for achieving a singular monopoly concession.

As stated by the Conjazar, nearly all of the seven existing betting licensees in the country currently operate under provisional licenses that were granted to them about 18 months ago by the executive branch. However, one of the betting operators namely Daruma Sam SA that functions under a highly disputed trademark brand Aposta.la,

has been known to be instrumental in online and retail wagering in the country since 2014.

Providing a justification for their decision, the Conjazar remarked that they are aiming to enhance the tax revenues of the government by streamlining the sports betting sector in Paraguay. With a population of less than 7 million, the government in Paraguay currently levies 4% taxes on the gross betting revenues by the sports betting operators in the country and is able to make merely $140k in a month. According to a theory, the Conjazar believes that if the government is able to eliminate all competition from the market, the single betting operator will be more willing to pay a higher tax rate.

Javier Balbuena, the president at Conjazar recently stated in a radio interview that the said concession for betting will be enforced within the next couple of months. While

the aforementioned tender is underway, the government in Paraguay will be campaigning extensively for the closure of individual betting licensees that currently operate under local municipal permits and do not possess any legal authorization by the national regulatory authorities.

Also, the government in Paraguay is planning to promote the independent establishment of Conjazar as a separate entity from the Ministry of Finance through an amendment to the Law 1016/97. As stated by Balbuena, the spike in the tax rate in the wake of the betting concession will also aid the independent Conjazar in providing funds for its various operations. Statistics indicate that currently, Conjazar owns a total of two vehicles which are apparently insufficient for the 20 employees in monitoring the local industry operations.

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GAMING NEWS

AUTUMN 2017

Pagcor Casinos to Go on Sale in 2018

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he Philippines government is on the path to privatizing 17 of the casinos currently operated by Pagcor (Philippine Amusement and Gaming Corp.), according to a statement issued

by Finance Secretary Carlos G. Dominguez III. The secretary mentioned that it was necessary for the casinos to be privatized. It is believed that the one in Fort Ilocandia would be one of the first to undergo privatization as it is where most of Pagcor’s operations take place.

Currently, the government is working on determining the valuation of each casino by factoring in properties such as the number of visitors, overall capacity, and even the number of tables at each casino.

This is being carried out on a casinoto-casino basis as each casino is structured differently in terms of infrastructure and offerings. The valuations are expected to be completed by the end of 2017.

A long process According to Dominguez, the privatization process will, most

likely, occur over a period of several years. Since the level of complexity involved in each deal is fairly high, there is a need to assess matters on a case by case basis so as to ensure that the government gets the best deal possible in each case.

There has also been concern over the government losing a stable revenue source. However, Dominguez responded to that by stating government-run casinos were no match for privately operated ones, implying that the revenue would be better after privatization.

He also added that without privatization, the casinos would lose all customers, eventually. Currently, the authorities are comparing revenue earned from winnings and the revenue earned from fees to make a better decision.

privatization, according to Dominguez, was that there would be no conflict of interest since Pagcor will only function as a regulator now and not as an operator.

Fund generation Pagcor’s casinos are required to give up around 500% of their gross earnings to the state.

These funds are, in turn, used by the state to run social and community projects. The instruction to privatize the casinos in order to generate more funds had come from President Duterte himself. It is believed that he offered the suggestion on the basis of a suspected conflict of interest.

Pagcor is a high-earning government entity. In early 2017, it had enjoyed a 26.75% boost in net income, generating around P1.3 billion. It also enjoyed a gross gaming income of P14 billion. It has paid around P7.37 billion as gaming taxes in the first quarter of 2017.

Another benefit of

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AUTUMN 2017

888 fined nearly £8 million for social responsibility failings

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ambling firm 888 Holdings has been hit with a record fine by the UK Gambling Commission over its failings to protect vulnerable and problem gamblers. In total the online operator has been fined £7.8 million in what the UK Gambling Commission said were “significant flaws” in the companies social responsibility processes.

Following an investigation by the Commission it found that 7,000 customers that had asked to be self excluded were still able to gamble on the site, with customers depositing £3.5 million with 888 and gambling still for over 13 months.

In particular the Commission said that also 888 failed to spot visible

signs of problem gambling in their customers with one particular gambler spending over £1.3 million of which £55,000 was stolen from their employer.

“The lack of interaction with the customer, given the frequency, duration and sums of money involved in the gambling, raised serious concerns about 888’s safeguarding of customers at risk of gambling harm,” said the Commission on 888’s failings.

The Gambling Commission chief executive, Sarah Harrison, said: “Safeguarding consumers is not optional. This penalty package of just under £8m reflects the seriousness of 888’s failings to protect vulnerable customers.

“The 888 sanction package will ensure those affected don’t lose out, that the operator pays the price for its failings via a sum that will go to tackling gambling-related harm, and that independent assurance will be given to see that lessons are learnt.”

In delivering the fine the Commission said that of the fine £3.5 million would be repaid to those customers who delf-excluded and made deposits after that and also £62,000 to the employer who had money stolen from them.

Of the remainder which is £4.25 million that will go to socially responsible causes to invest in measures to tackle gambling-related harm.

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AUTUMN 2017

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GAMING NEWS

AUTUMN 2017

Tipster Affiliation Scheme: How is it Likely to Affect the Gambling Industry?

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ky Betting and Gaming made an announcement that it is looking to bring an end to its UK affiliation program by the beginning of October, amid increasing pressure from the Gambling Commission of the UK. The announcement has shocked the gambling industry, with Sky Betting and Gaming expressing the graveness of the issue. Although the primary reason behind this move is increasing regulatory pressure, marketing standards and outputs have also driven this decision.

Where’s the problem?

Sky Bet’s closure has subjected the gambling industry to mounting pressures to take steps to curb unscrupulous, profit-making activities of tipsters. It was revealed that doubtful tipsters were earning a commission of 30% on the losses incurred by punters

who enrolled to bookmakers through affiliate links. According to experts, a few tipsters make profits by purposely recommending bets that win little or no favor on social media.

In a statement, Sky Bet expressed its anticipation of new rules in the present unregulated environment. It also said that the industry is maturing and operators are under increasing obligations to fulfill regulatory responsibilities and comply with standards. The company believes that the affiliate scheme was unfeasible to operate and it becomes a risky affair from a regulatory viewpoint. Pressure and charity groups are in favor of the move and express their desire to sever ties with tipsters.

How will closing down tipsters help the industry?

Affiliate sites that mask tipsters continue to exist because operators look for new customers, as a large chunk of their existing players face financial difficulties due to gambling. Shutting affiliate sites is an important step taken to create a sustainable industry.

Affiliate sites are also one of the main ways in which bookmakers and online casinos acquire new players after a sharp rise in the cost of pay-per-click advertising.

While some operators have a legit business, others purposefully mislead players who have build a trust with them after providing good evidence of occasional victories and maintaining an friendly tone. In order to get tips from operators, followers must enroll with particular a casino or bookmaker that the vendor is affiliated to.

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