September 2016 Infinity Gaming Magazine

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

NEWS VIEWS INTERVIEWS WILLIAM HILL - Where now for the UK Bookmaker?

Nigel Birrell CEO Lottoland Interview

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

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SEPTEMBER 2016

23 PHILIPPINES Licenses Refused

14 19

NIGEL BIRRELL Exclusive Interview

OLYMPIC GAMES Paul Swaddle Article

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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SEPTEMBER 2016

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

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

08 WILLIAM HILL Christina Thakor-Rankin

13 PHILIPPINES REGULATOR

08

Hundreds of licenses cancelled

14 NIGEL BIRRELL Interview with Lottoland CEO

WILLIAM HILL WOES Christina Thakor-Rankin

19 CAESARS SELL PLAYTIKA Profit arm sold

CAESARS SELL PLAYTIKA

23 WH BID MADE Operators circle for UK Bookmaker

26 OLYMPIC GAMES Paul Swaddle article

+ ALL THE LATEST NEWS & Opinions

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SEPTEMBER 2016

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

Summer time no rest for acquisitions thou

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

Lana Thompson - Editor

Welcome to the July edition of the Infinity Gaming Magazine and a busy time for sports book operators.

Welcome to the summer edition of

Don’t forget to enter the nominations

Infinity Gaming Magazine and what a

that are open now.

super publication we have for you, a wonderful interview with the CEO of

Next time I catch up with you will be

Lottoland Nigel Birrell, sadly no tips

announcing the judges and also some

from Nigel on how to win.

wonderful exciting new sponsor.

As always we have our team of superb

Have a superb summer and catch you

writers and Paul Swaddle keeps us up

all very soon.

to the latest developments this time looking at sports betting, mobiles and

Enjoy the magazine.

The Olympics.

So, “To Infinity and Beyond!”

Christina Thakor-Rankin takes her expert eye to William Hill this month as

Regards,

they seem to be in the news all the time, not surprisingly as they seem to

Lana

be the target of the latest acquisition.

Such a great brand that, very interesting what Tina has to say, a must read.

We are busy building the new judging line up and have some huge names this year, going to have to wait and see.

INFINITY GAMING

The Editor

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

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

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SEPTEMBER 2016

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

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

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

www.1710gaming.com

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

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

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

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

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

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

SEPTEMBER 2016

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SEPTEMBER 2016

William Hill: WHO, how, why, when - and what next?

By Christina Thakor-Rankin

T

he recent very public departure of

James Henderson from Hills top job

purge of people and personalities after ‘Project Trafalgar’ turned out to be more of a ‘Waterloo’.

came as no surprise to anyone. In fact, for many, the only surprise was how an individual, who on paper seemed to be so little equipped for the role, compared to his predecessor, lasted as long as he did.

Especially in the context of a cringeworthy Scooby Doo-esque damnation of those pesky self-excluding problem gamblers in defence of poor online results, and a brutal

Some have suggested that t was always likely to be thus for whoever stepped into the shoes of the industry equivalent of Alex Ferguson.

Ralph Topping, who not unlike the other Scot, presumably had some say in who would succeed him, and who has also like the other Scot continued to provide a commentary of sorts from the side-lines, and which similarly, probably only served to pile even more pressure on to an individual already struggling under the weight of expectation.

‘antiquated’ team’ which was on the decline. His defence was that there was no issue with the team, and decline was down to the fact that his successor had found the step up a ‘massive jump’ and simply struggled to settle in and cope.

William Hill entered into a deal with Playtech because they needed help

There is also the spectre of Playtech lurking in the background.

The general view is William Hill would

The experiences of William Hill and Manchester United are spookily similar. In his book, Mr Ferguson defended himself against the critics who claimed that he departed just at the right time - on a high but knowing the tide was about to turn, leaving in his wake an ageing and

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rather put itself into Administration than get itself entangled with Playtech again, but, as J P Morgan said, ‘everyone has a price, you just have to find out what it is’

SEPTEMBER 2016

with online. The deal proved to be a

On the one hand it could be argued that

Maybe Mr Henderson did inherit rather

very clever move, and saw the Compa-

this was a clever way of casting the net

than create some of the problems.

ny’s online fortunes rise impressively.

as wide as possible and in a way which

All was well until Playtech, believing

not only filled a technology gap but also

Unfortunately, this lack of early appre-

that they were more than just a little

opened the door to innovation. On the

ciation of technology is not limited to

instrumental in this success and there-

other, a little embarrassing perhaps that

the online division alone, and is now

fore owed a little more credit, tried and

the self-proclaimed ‘home of betting’

making itself felt across the estate.

failed to get closer to Hills. They then

and its incubator unit, still ended up

Everyone else is not just talking, but

tried to get it on with Ladbrokes – which

being bested by new kids on the block

also walking, (even running) the walk of

unsurprisingly upset Hills.

like Bet Stars, who manged to find ways

multi- and omni-channel: Paddy Power

of make betting more interesting all by

are busy rolling out tablets across their

themselves.

estate; Coral is all-over multi-channel;

The ensuing blue on blue cat-fight saw one of the industry’s most acrimoni-

even Ladbrokes, who 12 months ago

ous and public divorces. The split also

There was also Project Trafalgar, a pro-

looked dead in the water, are starting

seemed to herald the start of the firm’s

ject that had been in development for

to catch-up with contactless payments

online decline, and suggested that Wil-

over two years and Hill’s single big-

– but what of Hills?

liam Hill’s successes had in fact been

gest, and presumably most expensive

reliant on the relationship with Playtech

technology project to date, and which

Despite the association with Playtech (a

and without them, were not equal to the

despite all the fanfare was beset with

Company which understands the value

task of going it alone.

‘teething problems’ and failed to deliver

of future technology better than most)

on its promises.

William Hill appears to have well and

After a period of struggling to figure out

truly missed the technology boat, and

technology, the lack of expertise be-

Both of these were seemingly approved

has finally been found out. This surely

came evident and lack of confidence in

and on the strategic roadmap well be-

cannot have happened overnight, and

the ability of its own teams (both prod-

fore Mr Henderson’s appointment. Had

can only be the net result of previous

uct and technical), when the Company

he thought them ill-judged or wanted

years’ lack of forethought and strategic

launched its own technological version

to deviate away from them, his hands

planning. Those just starting to roll-out

of Dragon’s Den in early 2015. WH Labs,

may have been tied given that the

Virtual Reality today started thinking

a ‘dedicated experimental division...fo-

firm’s Chairman, Gareth Evans made it

about it back in 2012, whilst those capi-

cusing on creative innovations’, sited in

clear that Mr Henderson’s appointment

talising on multi- and omni-channel,

the middle of London’s trendy Tech City.

would not lead to a change in strategy.

even earlier.

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SEPTEMBER 2016

William Hill: WHO, how, why, when - and what next?

timing is everything, and regulation in

sortium and what could be construed

and a global brand. The result over the

Africa 10 or even 5 years ago would

as a ‘hostile’ takeover bid - an oppor-

past few years may not have been the

have been a little pointless. The two

tunity to settle some old scores given

best, but nor have they been utterly dis-

non-negotiable pre-requisites to online

their respective histories. Despite the

astrous.

gambling success are consumer appe-

various musings of pundits as to the

tite and accessibility.

sense in this, and the creation of a su-

The root of the Company’s recent is-

per operator worth £5bn, with each

sues (as an outsider looking in) seems

The positive news is that William Hill

party playing to another’s strengths – a

to have been three-fold: a manager who

has woken up to the fact that it does

Rank-888-William Hill tie-up somehow

in enjoying the success of the present,

not have the know-how nor the time

feels wrong.

and coming to the end of his time there,

to fix things itself. In the surest sign

perhaps did not give as much thought

of self-awareness to date, attempted

There is also the spectre of Playtech

to the future as he did at the start of his

to address the problem with its recent

(another company with a score to settle

tenure. Internal politics that may have

acquisition of Grand Parade - a betting

perhaps, a long memory, patience and

resulted in the wrong people being ap-

and gaming software solution provider.

a lot of money certainly) lurking in the

pointed to a role to which they were not

In doing a ‘Playtech’ (if you can’t beat

background. The general view seems to

suited, and believing and getting itself

‘em buy ‘em) William Hill have allowed

be that after the last experience, William

caught up in its own hype and in doing

themselves the chance to play catch-

Hill would rather put itself into Admin-

so lost sight of the only thing that really

up whilst simultaneously slowing down

istration than get itself entangled with

matters in this industry – the customer.

their competitors, all of whom are all

Playtech again, but, as J P Morgan said,

current clients of Grand Parade.

‘everyone has a price, you just have to

If this is the case, then fixing it should

find out what it is’. With the old person-

not be too difficult. William Hill’s best

Returning to the football analogy, and

alities no longer there, and sharehold-

years seem to have been when it has

the similarity between Hills and Man-

ers looking to get something back who

stayed true to itself and the values that

chester United. Having lost their ‘Fergu-

knows - it certainly wouldn’t be the first

made it great in the first place. Focus-

son’, ejected their ‘Moyes’ they now ap-

time two parties reunited to find that

ing on the customer – listening to what

pear to be going through a sort of ‘LVG’

it is better second time around, and it

they want, and then delivering it, sim-

phase – a new signing, a re-shuffled

would be a brave soul to bet against it.

ply and effectively – no fancy gimmicks,

back room and the need to find a new

no trendy marketing – just betting and

long term manager who has the skill,

Despite all of the speculation and the

bravura and ability to take on the top

latest results, however, is William Hill

job at what it still sees as the top club.

really in such a bad shape that it needs

William Hill doesn’t need a ‘Jose’, or a

Who is Hills ‘Jose’?

to marry for money, or any other rea-

‘Pep’, or a ‘Conti’ for that matter – it’s

son for that matter, in order to get itself

just needs ‘William Hill’.

That might be down to whether Hills

back on track? It still has a solid retail

ends up with a new owner. There has

estate, the foundations of a decent on-

been much talk of the Rank-888 con-

line business, an international footprint,

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gaming at its simple best.

GAMING NEWS

SEPTEMBER 2016

Philippine regulator revokes 124 online licenses in gambling crackdown Rodrigo Duterte took over the presidency in June this year and said he wanted to outlaw online gambling to Philippine nationals.

Not only this but PAGCOR is expected to shut down the 302 online gaming parlours currently operating in the country and 324 online bingo outlets that Philippine nationals play on every day.

T

he Philippine Amusement and Gaming Corp (PAGCOR) has cancelled 124 online gaming licenses since July this year and is highly unlikely to accept any others.

Since the newly-elected Philippine President’s declaration that he wants to cease all online gambling the regulator come operator PAGCOR has started to restrict online gaming.

Andrea Domingo, the newly appointed PAGCOR CEO, said at said recently that her company could lose around PHP10 billion due to the license cancellations.

At present, PAGCOR operates 11 casinos around the country, with those having 45 satellite facilities. It also regulates 11 privately held gambling venues. The regulator/operator reported net income of PHP2.5 billion for the first half of the year, up 2.5% year-on-year.

July Nevada Gaming figures in the positive New Jersey online gambling figures for May made for Nevada regulators reported that casino operators in the state enjoyed a 6.8% rise in gaming win for the month to $887.4 million, although the rise was not as high as analyst’s had predicted.

In total for the year so far casinos are winning $11.1 billion which is up 1% from the same period in 2015, but is still 12.7% below the best ever year of 2007 for operators.

Interestingly the main Nevada Strip ended the month down compared to last year with a fall of 0.64% on revenues of $6.3 billion, however the rest of the state posted positive figures to push the win in the positive bracket.

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SEPTEMBER 2016

Interview with Nigel Birrell

CEO Lottoland

Nigel thank you for talking to us today, can we start by asking you a little about Lottoland, how old is it, who founded it and exactly how does it work?

their numbers in the same way as if they

It’s one of the fastest growing business-

had entered the actual draw and if they

es I have ever been a part of. It’s dynam-

win, they win the same amount as if

ic and the atmosphere within the office

they had entered the real draw. We pay

is vibrant – it’s an exciting place to work.

out smaller prizes through the money we receive from sales, while our larger

It might sound clichéd, but no two days

My pleasure! Lottoland was founded

payments are guaranteed by a range of

are the same. With our rapid growth

just over three years ago by a group

insurance products including our Insur-

comes fresh challenges every day, but

of ambitious and pioneering entre-

ance Linked Security (ILS) - a model nor-

we’re a tenacious and ambitious bunch

preneurs and since then the business

mally adopted by companies to protect

and we’re overcoming everything that is

has grown immensely.

against events such as earthquakes.

put in front of us.

ness, but prefer to remain private. Their

In the last few months alone we have

But it’s not just about responding to

initial idea provided the catalyst for Lot-

paid out record €14m and €22m jack-

challenges.

toland’s huge growth. Since then hard

pot wins to two lucky customers.

Our founders

remain heavily involved with the busi-

work, innovation and a brilliant busi-

There’s no going through the motions at

ness model have driven growth to the point where we now have close to 4 million customers worldwide.

Lottoland. We are constantly exploring

How long have you been with Lottoland?

new ways to push the business forward – we’re three years old now and industry leaders in our field; we’re no longer

Lottoland offers its customers the op-

I have been with Lottoland for nearly 3

a start-up, but our entrepreneurial spirit

portunity to bet on the world’s biggest

years.

burns brighter than ever.

You have extensive experience in gaming and sports betting, how does the Lottoland experience and culture compare to that of other companies you have worked for within the industry?

Is Lottoland just a B2C company?

To me there’s a marked difference be-

For that reason we created our B2B

tween Lottoland and its competitors

business Lottoland Solutions, giving

In total we have 29 lottery products

within the industry; especially speaking

other operators the chance to offer our

available to our players. Players pick

from my own personal experience.

exciting portfolio of products to their

and best lotteries for the same prizes, including the jackpot. Players can bet on EuroMillions, EuroJackpot, El Gordo and massive jackpots from the US, such as the PowerBall and MegaMillions. In addition to big jackpots, we also offer innovative products such as Cash4Life

Our B2C business is thriving and the success we have witnessed informed us that the appetite for our offering is very strong indeed.

where players can win a top prize of £1,000 a day for life.

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SEPTEMBER 2016

NIGEL BIRRELL “Our B2C business is thriving and the success we have witnessed informed us that the appetite for our offering is very strong indeed”

players - safe in the knowledge that all

eral others.

winnings are guaranteed by our insurance model including our ILS.

So, there’s very exciting times ahead for Lottoland from a B2B perspective as

We recently recruited Mike Bogie as

well.

Director of Lottoland Solutions. Mike brings a wealth of experience to the role having previously managed business development at bwin.party where he created new routes to market through

An above the line, full-scale marketing

In a business model offering customers the opportunity to bet on any lottery, does Lottoland have any competition?

partnerships with a number of leading gaming operators.

National advertising especially in the UK has had a huge effect on the business, was it expected that Lottoland would be so successful?

campaign was absolutely necessary to coincide with our full UK launch. UK lottery players have become very used to playing just one or two lotteries a week; so I think our offering has been seen as

There are other lottery betting compa-

hugely refreshing.

nies out there, but we are the clear marWe have already struck up a partnership

ket leaders with reach and a product

Our next major above the line campaign

with a leading Tier One operator and we

portfolio way beyond what anyone else

is due to roll our very shortly and we’re

are in advanced negotiations with sev-

can offer.

all really excited about this one.

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SEPTEMBER 2016

Interview with Nigel Birrell After launch in September the intention was to announce who we are and explain what we could offer – now that people know a bit more about us we have been afforded the room to be more creative in terms of selling ourselves and really making sure that our brand becomes entrenched in the UK consciousness.

Back to Lottoland how far can the company expand?

We are bringing down international borders and offering our customers choice that they have never had before. We’re also becoming bigger all the time and as more and more players realise we are the real thing and that they really can go for the very biggest jackpots the world has to offer our growth will once again accelerate.

We challenge the status quo by offering We’ve got very ambitious expansion

players a new way to win huge jackpots.

plans for the next 12 months alone;

Our intention is to reinvigorate each

2016 is already proving to be by far

market we enter; providing the compe-

our biggest year yet. But we’re not just

tition to drive the industry forward - of

looking one year into the future, we’re

course it’s not always perceived that

looking five years or more ahead – we’re

way by those who had it all to them-

already among the fastest growing busi-

selves before we came along.

nesses in the world and we’re only three

land won “Best Lottery App” recently at the App Awards how important was that to the company and is the business through the App growing more compared to the website?

We live in a vibrant, connected world where consumers have become used to

years old, so our long-term future is

The challenges, believe me, are mani-

instant gratification across all manner of

very rosy indeed.

fold, but as I mentioned earlier we have

mediums. As a business we are evolv-

a strong, capable, diverse and above all

ing the way players approach and think

smart team here who are capable of ris-

about winning massive jackpots.

ing to everything put in front of them.

already offer them the chance to win

What’s the biggest prize so far someone has scooped using the Lottoland site to play?

We

multimillion jackpots every day – some-

Is there a region in the world that Lottoland does not work so far?

Our record jackpot payout was €22m

thing they never had before. Mobile affords us the platform to package up our offering at the touch of a button. It was

to a player who matched all 6 num-

There are regions in which we currently

crucial for us that our Mobile App was

bers after betting on the German

don’t operate – the States being one

ahead of the game and for that reason

6aus49 draw. It was our fifth multi-

for example. However, as mentioned

we are delighted it has been recognised

million payout since last December.

earlier, we’ve got ambitious expansion

as the best of its kind.

plans and we’re not putting any limits

What are the challenges for a company such as Lottoland?

on ourselves.

Before we let you go Nigel Lotto-

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SEPTEMBER 2016

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GAMING NEWS

SEPTEMBER 2016

Caesars Interactive sells to Giant Investment consortium for over $4 billion

C

aesars Entertainment have sold their profit making online gaming business Playtika and all its subsidiaries for an estimated $4.4 billion to a Chinese consortium which is led by Giant Investment Ltd a private equity firm along with the owner of Alibaba Group Jack Ma. The consortium of 11 investors will pay in the region of $4.4 billion for 100% of Caesars Interactive business but will not control the WSOP Brand and other real money online business. Playtika which has annual sales of $766 million last year is one of the few businesses that Cae-

sars saw revenue and profit rises from in recent years.

Giant Investments by buying Caesars Interactive businesses have shown that Asia is now seriously looking at online gaming and observers believe this could be the first of many such major acquisitions in 2016 into the interactive market in the US and Internationally.

Rumours continue to mount that Caesars Entertainment will look to sell the remaining parts of Caesars Interactive as the parent company says it wants to focus on its core land based business.

INFINITY GAMING

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Build Your Brand, Business & Social Responsibility

THE 10th INTERNATIONAL GAMING AWARDS NOMINATIONS OPEN

Categories for both Online & Land Based Gambling Industry CLOSING DATE FOR ENTRIES 28TH SEPTEMBER

GAMING NEWS

SEPTEMBER 2016

Goa casinos debates causes uproar

T

he opposition members led by Congress Legislative Party leader Pratapsing Rane walked out shouting anti-government slogans, after Parsekar accused the opposition legislators of trying to “misuse” the assembly proceedings.

“We won’t do what you say. We have been elected for five years to run the administration. Some MLAs are misusing the assembly for their own benefit,” Parsekar said during a discussion on Home Department affairs. Casinos in Goa are licensed by the department.

Following Parsekar’s comment, opposition legislator demanded that the Chief Minister name the legislators who were “misusing the assembly” over the issue of casinos.

“You have to name the MLAs who are misusing the assembly or else do not indulge in loose talk,” Independent MLA Naresh Sawal said.

The altercation between Parsekar and Sawal reached a feverish pitch, after the chief minister said that he would come to the latter’s constituency and make public certain questionable business transactions between “certain casino owners and businessmen”.

“Just because we are listening, they think they can talk whatever they want to and get away with it. We will not take this lying down. Either you give us answers or we are going to go from here. We have no interest in your stories,” Sawal said in his heated exchange with the Chief Minister, after which the Leader of Opposition Rane led the walkout.

The controversy surrounding the arrival of a fifth offshore casino and the opening of India’s largest onshore casino has been a point of heated debate in the monsoon session of the assembly.

July revenues figures for Macau fall 4.5% July figures from the Macau Gaming Inspection and Coordination Bureau report that the month for casino operators suffered a fall in revenues for the 26th consecutive month with a drop of 4.5%.

The fall in revenues from the same month in 2015 was

not a steep as feared and in fact is lower than the near 12% fall in June. Figures for July revenues stood at $2.22 billion for the world’s largest gambling hub, in total for the seven months so far of 2016 revenue total stands at MOP125.56 billion which represents a decline of 10.5% from the same period in 2015.

INFINITY GAMING

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GAMING NEWS

SEPTEMBER 2016

Rank & 888 target bid for William Hill

F

ollowing the departure of William Hills’ Chief Executive last week, this week comes the news that the iGaming Post predicted that a takeover bid is now forthcoming in the shape of Rank & 888 Holdings.

Surprisingly it was the two companies many would not have seen making the bid and ultimately may not win the bidding war but they are the first to show their hand and William Hill are open to negotiate.

A William Hill spokesperson said it would “listen to and consider” any proposal.

However, it was not clear that a combination of William Hill, 888 and Rank would “deliver superior value”, the company said.

From the other side, 888 and Rank, the UK’s biggest casino chain, said they saw “significant industrial logic in the combination”.

It was only last year that William Hill tried to buyout 888 but failed with their £720 million offer as the Board at 888 felt it under valued the business.

William Hill on the other hand would need to receive more than their current value of £2.7 billion they are currently valued on the FTSE 100. However with shares sliding 21% since the beginning of the year William Hill see that the longer a deal takes the less value they will be.

One thing in favour of Rank is their current Chief Executive Henry Birch was once William Hills’ Head of Online and would know the company very well.

Under UK takeover rules, Rank & 888 has until 21 August to make a formal offer to William Hill or they must remove themselves from any takeover.

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SEPTEMBER 2016

Some might see this as a fruit salad...

IF YOU SEE WHAT WE SEE, You belong with us - vegasmaster.com

INFINITY GAMING

GAMING NEWS

SEPTEMBER 2016

Ladbrokes Gala Coral must sell up to 400 shops

L

adbrokes and Gala Coral will have to sell 350 to 400 betting shops if it is to be agreed for a merger by the Competition and Markets Authority (CMA) said their report out this month.

Back in May the provisional announcement from CMA said almost the exact same thing and now Ladbrokes and Gala Coral will have to look at selling those shops to most likely Betfred who has shown interest in the properties.

Currently Ladbrokes has about 2,150 outlets and Coral runs 1,850 shops in Britain and would make the merged companies the largest in the UK but the CMA have identified 642 local areas where it said the merger would hit competition.

Martin Cave, chair of the CMA’s inquiry, said: “We’ve found that the merger between two of the largest bookmakers in the country would reduce competition and choice for customers in a large number of local areas.

“Although online betting has grown substantially in recent years, the evidence we’ve seen confirms that a significant proportion of customers still choose to bet in shops – and many will continue to do so after the merger. We therefore believe that a sale of shops of this scale is needed to protect these customers.

“It is now for the parties to propose a divestment package and one or more suitable purchasers for the CMA to approve.”

with the remainder being held by Ladbrokes shareholders.

Pennsylvania hits record year in gambling revenues The Pennsylvania Gaming Control Board reported that total revenues for the 2015/2016 fiscal year ending June 30 rose to $3.2 billion for the twelve casinos in the state making it a record year for the states gambling industry.

Previously 2012/2013 was the record but this year saw that beat by $86 million and was $112 million above last years figures.

Slots revenues reached $2.4 billion up 2.3% from last year. Table games revenue of $839 million was up nearly 8% from the same period last year.

Seven casinos saw increases in both categories.

Only Hollywood Casino at Penn National Race Course in suburban Harrisburg saw declines in both categories.

With the rises in revenues the Gaming Control Board estimate tax revenues for the state of $1.4 billion.

Under the terms of the merger, shareholders from Gala Coral will own 48.25% of the newly merged company’s shares,

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SEPTEMBER 2016

Olympic Games – Wanna Bet?

By Paul Swaddle - CEO Pocket App

T

there is nothing quite like coming out

from as many as 206 different countries.

he single greatest institution of sport-

on top at the Olympic Games, and if our

ing prowess, the Olympics, is soon to be

heroes of London 2012 can once more

The line-up includes 306 events across 28

underway. Following the almost predicta-

scale those dizzy heights and replicate

sports, ranging from blue ribbon events

ble, yet nonetheless lamentable, national

the outstanding accomplishments they

such as the 100 metre sprint, in which

sporting low of the 2016 UEFA European

achieved in London, then that will go

our young sprinters will duel with argu-

Football Championships, in which Eng-

some way to restoring our National pride.

ably the sports’ greatest ever exponent,

land delivered a lack lustre performance,

Usain Bolt, to formerly lesser known

the nation needs a boost and fast. Sure,

This year’s Games take place in the sun-

sports such as water polo and wrestling.

we’ve just had Wimbledon, in which Great

kissed, tropical location of Rio de Ja-

One thing is for certain though; whether

Britain’s Andy Murray triumphantly se-

neiro, from 5th August through to 21st

they are hoping to see Usain’s ‘Lightning

cured his second title. However, in terms

August, and will feature international

Bolt’ pose after he crosses the finish line,

of providing a national sporting tonic,

competition between 10,000 athletes

or Mo Farah’s now famous signature ‘Mo-

Farah’s now famous signature ‘Mobot’ move, the public will be watching closely.

The London 2012 Olympics secured record viewing figures for the BBC when it delivered the biggest national television event since current measurements began, with 51.9m (90% of the UK population) watching at least 15 minutes of coverage.

24.2m (42% of the UK population) also watched at least 15 minutes of coverage on the BBC Red Button. With those kind of viewing figures, and with the proliferation of mobile betting opportunities afforded to almost every sporting occasion in the calendar, it’s no wonder that in London 2012, it wasn’t only Usain Bolt and Mo Farrah that stood proudly aloft the podium; the betting industry also struck gold.

Olympic Betting One of the industry’s most well-known

SEPTEMBER 2016

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

betting and gambling companies estimated that the sector turned over close to £80m during the twoweek period in 2012, compared with £4m during the Beijing games four years prior. Even if we factor in that a ‘home’ Games would no doubt elicit increased participation, these are still incredible figures. When you also take into account that another of the industry’s big players saw a similarly impressive increase in betting activity, with the total number

of customers making bets doubling from circa 50,000 in 2008 to just under 100,000 in 2012, you realise that Olympic betting is at an all-time high, and in my opinion, this year’s sporting extravaganza just might top the lot.

The increase in mobile gambling is one of the key drivers behind Olympic betting. The huge uptake and use of mobile devices is transforming almost every industry and the gaming and betting industry

is no different. Let’s face it, the mobile gambling industry is estimated to have taken £21.54 billion last year, making up almost 17% of gambling takings worldwide, and is expected to be worth a staggering $100 billion by 2017. Being constantly connected and able to instantly place bets, check odds and claim winnings without ever setting foot outside is transforming the industry unequivocally. A recent report by Smart Live Gaming suggests that mobile gambling

28

SEPTEMBER 2016

INFINITY GAMING

Olympic Games – Wanna Bet?

will not only account for over 40% of online gambling by 2018, but states that the number of players gambling online will increase by approximately 100 million by 2018.

Open saw an 80 percent surge in betting turnover when compared to last year, with an incredible 20,000 more bets placed on the first day of the competition than in 2015.

For gamblers, another major appeal of the Olympics is the sheer amount of sports that can be bet on, and with the intense competition lasting between 16-18 hours per day for a two-week period, the betting opportunities are almost endless.

The Future of online betting

What other sporting occasion affords you the opportunity to bet on Football, still the most gambled on sport in the UK, whilst simultaneously having a flutter on tennis, which, fuelled by a boom in online and in-play betting, has experienced exponential growth. The betting statistics aren’t in yet from this year’s Wimbledon but the 2016 Australian

The London Olympics were the first time that live in-play betting was offered on individual and team events. This became instantly popular and today, the big brands are offering the longest lists of Olympic gambling odds of all time.

I have no doubt that Olympic gambling will continue to set completely new records, as it has done since its humble beginnings in Beijing, eight years ago. Pre-Olympic odds are already posted for some of the biggest events and with the live inplay interactive gambling options

SEPTEMBER 2016

available, even a full marathon will become quite interesting.

The array of in-play betting opportunities available across all 206 events leave gamblers with a mindboggling number of opportunities to beat the bookies. But equally as important, are the massive opportunities for organisations to gatecrash the party by developing beautiful, customer friendly and intuitive betting apps that gamblers will love using to place their bets, and for any organisation looking to develop a new betting app, as one of the leading mobile specialists, we’re always willing to help.

So, get your Union Jacks at the ready and prepare to roar our Olympic heroes of 2012 on to more glory. Yet again it’s time to place your bets.

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29

GAMING NEWS

SEPTEMBER 2016

31

Taj Mahal to close for good

I

t was the most iconic casino resort in

ing to save the resort.

Atlantic City receive, and was rejected by

the US and was opened in 1990 by

“Our directors cannot just allow the Taj to

the union.

the then owner Donald Trump calling

continue burning through tens of millions

“The great deal-maker would rather burn

it “the eighth wonder of the world” but

of dollars when the union has single-

the Trump Taj Mahal down just so he can

now it will close down for good.

handedly blocked any path to profitabili-

control the ashes. For a few million bucks

ty. Unfortunately we’ve reached the point

he could have had labor peace and a con-

The Trump Taj Mahal which is under the

where we will have to close the Taj,” he

tent workforce, but instead he’d rather

control and ownership of billionaire Carl

said. Tropicana Entertainment is 65%

slam the door shut on these long-term

Icahn following the bankruptcy in 2009

owned by Icahn Enterprises.

workers just to punish them and attempt

of Trump Entertainment but with the cur-

to break their strike,” union president

rent longest running union strike at the

The closure, will make about 3,000 lose

Bob McDevitt said, speaking about Carl

resort for some 38 years it will close for

their jobs along with the 8,000 job losses

Icahn.

good after the US Labor Day holiday.

already from four Atlantic City casinos closing two years ago.

In the closure announcement on Wednes-

“What is my obligation? I give hundreds of millions to charity, but this is a busi-

day, the managing company blamed

The workers went on strike, calling on

ness; it’s not a charity. They look at this

workers for blocking the casino’s “path to

Icahn to restore health insurance and

as my responsibility, and I’m a bad guy

profitability.”

pension benefits that previous owners

if I don’t give them what they want,” the

got a bankruptcy court judge to approve

billionaire replied in a statement to AP.

According to CEO Tony Rodio of Tropicana

in 2014. The managing company agreed

Entertainment the owning company of

to restore the perks, but the offer was

the Taj Icahn spent over $100 million try-

much worse than other casino workers in

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GAMING NEWS

SEPTEMBER 2016

Ladbrokes announce healthy H1 results Unibet show strong H1 results for 2016 European online gaming company Unibet showed a clean pair if heels in the first half of 2016 after announcing their Q2 and H1 results ending June 30 with revenues for Q2 of £126 million compared to £80 million for the same period last year.

Half yearly results (H1) showed revenues of £249 million for the gambling firm compared to £156 million for the same H1 in 2015.

L

adbrokes reported a healthy turn around in the first half results showing revenues rising 12.4% to £661.8 million from the same period last year and profits coming in at £25.2 million compared to a loss in the corresponding period in 2015 of £51.4 million.

Jim Mullen, chief executive of Ladbrokes, said the company’s decision to increase marketing, develop “multi-channel” betting across different mediums and expand in Australia was also paying off.

He said: “These strong numbers show customers are responding positively to the new strategy at a time when the sporting gods have generally been on our side and we’ve enjoyed some helpful bookmaker friendly results.

“History would strongly dictate that such a run of results in our favour would see customer staking suffer, but encouragingly these numbers firmly buck that trend and combine strong staking and a good margin. However, 130 years of experience in sports betting has shown us that we will endure a run of customer-friendly results and margins will normalise.”

The companies high street business even showed a small increase in win margin up to 17.4% compared to last year H1 of 16%.

Ladbrokes is currently in the process of a merger with former rival Coral that will create a £3.3bn gambling operator giant, however with the merger having some 4,000 high street betting shops the regulator has said that the two companies have to shed 400 units for the agreement to go through.

Unibet said that they had gained over 1 million new active customers through increased advertising on their platforms iGame, Stan James Online and their own brand Unibet.

Unibet Group’s CEO Henrik Tjärnström said in his H1 report: “The quarter was characterised by the Euro 2016 which provided a new all-time high in customer activity and continued strong growth. Margins in the tournament were significantly higher in July than in June. If the margins had been consistent across the tournament, then Gross winnings revenue for the second quarter would have been around GBP 3 million higher.”

“As in previous tournament years, we invested heavily in marketing both for new customer acquisition and reactivation of existing customers. While this has a short term effect in reducing profits, we are confident that this as proven previously will drive sustained growth in Gross winnings revenue and profits. For the quarter, marketing was 30% of Gross winnings revenue, but for the full year we still expect it to average a few percentage points below 30%.”

“In the period from 1 to 24 July 2016, average daily Gross winnings revenue in GBP has more than doubled compared to the same period in 2015.

Adjusting for the unusually high margin on the final stages of the Euros, the impact of exchange rate changes and acquisitions, the organic constant currency growth is close to 50%.

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33

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GAMING NEWS

SEPTEMBER 2016

William Hill H1 results bad but still fighting alone

T

emporary chief executive and current Finance Director of William Hill Philip Bowcock

says that the bookmaking firm could survive on its own after announcing the companies first half results.

William Hill for the first six months of 2016 showed operating profits fall by 16% to £131.1 million and that result was thanks to a more than normal result from France EURO tournament showing a healthy £36 million win from the football spectacular.

Indeed one match alone the game against Russia and England had a £5 brokes/Gala.

propriately.”

equaliser in the last minute turning

However when asked about the re-

Rank & 888 have now until the 21st

the bookmakers loss on the game

cent interest from gambling compa-

August to make a firm offer or walk

into a win.

nies Rank and 888 Holdings Bowcock

away, but the bookmaker indicated

said, “We’re not in a position that we

that the takeover business plan was

have to do something.

“not clear” a deal with 888 and Rank

million swing for the UK’s biggest bookmaker when Russia scored the

Bowcock who joined William Hill last

would be better for investors than

November has the task of turning around the firms online business

“We’ve got our priorities, we’ll focus

its own plans for digital and online

which has given ground to the likes

on those and if anything comes

growth.

of Paddy Power/Betfair and Lad

around the board will listen as ap

Grosvenor MD leaves company to join Goals

M

ark Jones the Managing

Jones departure but he has been with

governance, following the report of

Director of Grosvenor

the company since 2009 to 2014

the company’s first loss in twelve

Casinos in the UK both for

as MD of the bingo division before

years.

land based and online divisions has

moving over to become MD for both

left the company and will become the

online and land based Grosvenor

The company which operates 46 foot-

new CEO of UK football pitch opera-

Casinos brand.

ball centres in the UK ends its search

tor Goals Soccer Centres (Goals).

for a CEO which was first announced Goals confirmed that Jones would

this January as former incumbent

The Rank Group who is the parent

take over leadership on 1 July. The

Keith Rogers would relocate to the US

company of Grosvenor Casinos has

appointment of Jones follows a cor-

to oversee its North American busi-

not made any announcement on Mr

porate review undertaken by Goals

ness division.

INFINITY GAMING

35

GAMING NEWS

SEPTEMBER 2016

Scientific Games announce new CEO & President ened the company’s reach with new classes of ships including luxury cruising and led the company to industry leading profitably, which strategically positioned the company for continued long term growth. Mr. Sheehan oversaw major initiatives including vastly improving onboard service and amenities across the fleet; expanding the line’s European presence; repositioning two of the line’s Hawai’i-based ships creating a profitable business model; revitalizing top management with a combination of cruise industry and outside expertise; and using his extensive 30-year background in the business world to help Norwegian post a sharp turnaround in profitability in the midst of a tough economic climate.

S

cientific Games Corporation announced that Kevin M. Sheehan, former Chief Executive Officer and President of Norwegian Cruise Line, has joined Scientific Games as the company’s new CEO and President. Additionally, he will serve on the Company’s Board of Directors. Current Scientific Games CEO and President Gavin Isaacs will become Vice Chairman of the Board of Directors. Mr. Sheehan and Mr. Isaacs have assumed their new roles effective today following yesterday’s approval by the Board of Directors.

“Today we are one company with three strong businesses – gaming, lottery and interactive. Our integration is behind us and our business strategies are delivering solid results. With our momentum building, I’m moving from an operational leadership position to a more strategic role, Vice Chairman of the Board of Directors. On behalf of my colleagues and the Board, we welcome our new CEO and President, Kevin Sheehan. This is the right time to grow our leadership team and have someone of Kevin’s talent, experience, and financial acumen take us to the next phase of growth and innovation,” said Gavin Isaacs, Scientific Games Board Vice Chairman.

Mr. Sheehan joins Scientific Games from Norwegian Cruise Line, where he served as CEO and President for seven years. Mr. Sheehan led the development and expansion of the company, presiding over strong sales and EBITDA growth and the company’s initial public offering (IPO), one of the most successful IPO’s in 2013. He broad-

During nine years with Cendant Corporation, Mr. Sheehan held various senior executive roles including serving as Chairman of the Board and Chief Executive Officer of Cendant Corp’s Vehicle Services Division from January 2003 to May 2005, including global responsibility for Avis Rent A Car, Budget Rent A Car, Budget Truck, PHH Vehicle Management, First Fleet and Wright Express.

He also served as the Chief Financial Officer of Cendant Corporation from March 2001 to May 2003.

After leaving Cendant and prior to joining Norwegian Cruise Line, Mr. Sheehan worked at Cerberus Capital Management as a senior adviser in the assessment of multi-billion acquisition targets and Clayton, Dubilier & Rice, leading the acquisition of Hertz from Ford.

“This is an exciting time to join Scientific Games,” said Mr. Sheehan. “Scientific Games is the worldwide leader in gaming, lottery and interactive innovation and I look forward to building on that momentum to drive continued growth across the company. Scientific Games offers an unrivaled comprehensive suite of products and services for our customers around the world and is well positioned to continue to grow.”

“I am so pleased to welcome Kevin to Scientific Games and that Gavin will continue with the company in his new role. With the company fully integrated, it is the right time to expand our leadership team so we can take full advantage of the new and growing opportunities open to a company with our global scale and broad expertise. Kevin’s intellect and experience will be an invaluable asset as we move forward as one company,” said Ronald O. Perelman, Chairman of the Board of Scientific Games.

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SEPTEMBER 2016

Boylesports enters bidding for Ladbrokes/ Coral shops

T

here could be something of a bidding war for the 350 to 400 betting shops Ladbrokes and Gala Coral have to sell to get their merger past the competitions commission following the emergence of Boylesports as another contender for those shops.

Lawton joins GVC as Group Head of Bingo

Already Betfred had indicated that they were interested in acquiring the excess shops but now following an interview in the Sunday Business Post, Jenna Boyle the Retail Director for the company said they were also considering a bid by as early as Friday 12th August.

Jenna Boyle, Boylesports retail director, told the Sunday Business Post: “In phase one, there are in the order of 360 shops that are being looked at.

“By Friday of this week, that’s our deadline for submitting our bid.

“We’re in the process of reviewing our bid with a view to making that.”

Ms Boyle added: “The plan is to expand our regional presence in Britain.

“What we would like to happen, would be an acquisition of the larger scale.

“The Gala/Coral-Ladbrokes merger presented an opportunity for us which we definitely need to look at, so we’re driving that process.”

Currently Boylesports has 212 betting shops in Ireland and want to push into the British market like rival Paddy Power.

Ms Boyle said: “It would establish us in the UK. “It’s fairly early doors, we’re at the starting line with it.

“The next thing is getting past phase one – we’ll know much more at that stage.”

GVC Holdings has announced the appointment of Adele Lawton to the newly created role of Group Head of Bingo.

Lawton in her new role will be responsible for leading corporate initiatives and group strategy for GVC’s newly acquired online bingo properties which include Foxy Bingo, Party Bingo and Cashcade Network bingo partners.

Lawton takes over as GVC online bingo lead having recently served as European Operations Director for real-money gaming platform Betable (2014-2016).

Lawton has prior online bingo experience having held product executive positions at UK igaming operators Gamesys and Sky Betting & Gaming Group.

Commenting on the appointment of Lawton as Head of Group Bingo, Kenneth Alexander CEO of GVC Holdings said: “Adele’s appointment reflects our strategy to attract the best in the industry. Her considerable experience will help drive our growth ambitions for our portfolio of bingo brands including the iconic Foxy Bingo.”

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GAMING NEWS

SEPTEMBER 2016

James Packer could leave Asian Gambling Market

A

ccording to well connected gaming consultant Howard Klein James Packer may well be preparing to exit the Asian gaming market completely.

Following Packers move in lowering his stake in joint venture Melco Crown Entertainment and partner Lawrence Ho and his plan to de-merge his Australian and international casino assets Klein believes that Packer is readying for a complete departure from Asian gaming.

“My view is that James has elected to take a step back now as something of a hedge bet. In classic Packer mode,

he’s taking chips off the table until the cards turn ­favourable,” Klein said.

Only recently Melco announced they had missed their mark on H2 earnings and Packer could be more inclined to leave the market while it is still good.

On another related note on James Packer his venture with Robert De Niro on the Eastern Caribbean island of Barbuda seems to be going well with recent approval from the government there for the two to move forward with their holiday resort.

Following a contentious battle with some of the residents of Barbuda, the

duo plan to completely transform the stunning island and revitalize its stunted economic growth with a $250 million development of the former K Club Resort De Niro and Packer recently bought 555 acres of the existing K Club as well as an additional 137 acres and 167 acres of buffer land and will spend over $250 million developing the area into a luxury resort with a casino on site for high rollers.

The pair have placed Paradise Resorts to manage the properties and will name it Paradise Found.

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