Payments

piracy fought with self-executing penalties through smart contracts.

However, this requires the studio and production to integrate blockchain from development through distribution. The only players who know how to integrate blockchain, tokens and games into the entire entertainment sector are Creativity First Films and directors like Christopher Nolan.

Once achieved, this makes entertainment the ultimate tech investment, delivering 3,000-10,000% on investment over five years, which cannot be matched in any other investment sector over such a broad asset platform. Film investment will pull blockchain with it and blockchain will BLOCKCHAIN DLT AND IN-GAME TOKENS SOLVE TWO OF GAMING’S BIGGEST PROBLEMS: CHEATING AND HOW TO TRANSFER MONEY HELD IN GAMES INTO CURRENCY IN THE REAL WORLD

prove so valuable it pulls even more tech investment into film – where 2021’s streams of revenue all originate.

SBC: Has the pandemic altered the gaming sector’s relationship with cryptocurrency?

SM: Blockchain DLT and in-game tokens solve two of the biggest problems in gaming: cheating/bribery and how to transfer money or assets that winners hold in games into currency in the real world. TRON and CEL are the only two networks set up to maximise the interoperable aspects of tokens.

TRON delivers through Justin Sun’s JUST technology and BitTorrent – instantly solving advertising fraud. TRON also solves issues gamers needed to be resolved as they take the lead in the gamification of finance, health, politics, defence, education and more.

Creativity First Films plans to use TRON’s network and a TRON token/ crypto for Asia and most of the world; however, CEL is prime for the Western Market. Tencent can be the base as the secondary game finance interplay system for China. The current trade and technology issues between the US and China proves what Crypto-Integrity-Tao predicted way back in 2017-18: that games, film and blockchain innovation must remain independent from politics.

People forced to stay home injected previously unimaginable profits and stock valuation to the key players in games: Tencent, Microsoft, Apple, Epic, Google, etc. The Azure Cloud almost froze in February, 2020 as so many new players joined. Even when banned in the US and India, the top Chinese game made over $200 million in one month.

These gamers are here to stay. So are the app addicts on TikTok. That alone is enough to push global hedge funds into games, especially if the future games are fully integrated into the broader entertainment industry in a vertical model.

CRYPTOCURRENCY GAVE PEOPLE A FEELING OF CONTROL OVER THEIR LIVES AND MEANING FOR THEIR FUTURES

SBC: Can you tell us more about which markets and sectors have been faster adopters of cryptocurrency since the pandemic?

SM: The pandemic put a spotlight on cryptocurrency – then threw gasoline on the fire of distrust in fiat currency, old financial models, and central

bank/government policy that seems to disregard industries that feed the risked money that makes governments possible.

Naturally, financial investors and key banks like Chase got the justified proof that their years of work on cryptocurrency were worth it. Gemini did a terrific job of proving a major exchange can lead the pack and please the S.E.C. at the same time.

This led to some sage permissions by the S.E.C. to institutional investment. Following the rules allowed grayscale to become the ‘King Kong’ it is now.

However, to be honest in an arena that echoes only endless good news – DeFi and CBOE are inches away from opening a Pandora’s Box of manipulation, lawsuits, and bad brand for cryptocurrencies if they do not put both institutional security and main street/retail security above profits from derivatives, synthetics and the same practices that led to the 2007/8 crash.

If these Pandora’s don’t poison the well, the IRS with retroactive punishing taxation will punish the leaders in these two markets. This fact proves it is time for the hype-leaders to step back and let wise minds act as a governor on the throttle of cryptocurrency’s race to a secure and stable investment.

After the financial sector, the fastest movers were in the gaming arena. Wise innovators realised that to ‘scale’ cryptocurrency they should jump into the games market. But what most experts fail to understand is that ‘scale’ requires ‘spirit’ and that spirit is influenced by the culture of each nation slightly differently. This is not a one size fits all future and this is why Crypto Integrity Tao blended Eastern and Western philosophy, monetary policies from the world’s top economies.

ULTIMATELY, TELECOMS AND COMMUNICATION NETWORKS INCLUDING SOCIAL MEDIA WILL BE THE NEXT INDUSTRY TO RECEIVE THE INCREDIBLE BOOST THAT CRYPTOCURRENCY CAN PROVIDE

The prerequisite was to study cultural differences in China, the Middle East, Europe, Singapore, Japan, Switzerland, India, and the US. Nothing in our universe lasts long if not in balance – cryptocurrency has the potential to balance all of this for the first time in the investment arenas if but only if it honors the drive of multiple cultures.

Ultimately, telecoms and communication networks including social media will be the next industry to receive the incredible boost that cryptocurrency can provide. It will also justify upgrades to 5G as well as adoption of and adaptation to the higher degree of personal responsibility that comes with cryptocurrency.

After all, without a third party, there is no government or insurance and sometimes not even laws to protect a person’s investment or trust in a platform or network.

SBC: And just finally, financial inclusion has been a key theme of the pandemic, how can cryptocurrency help increase this?

SM: The easiest positive examples of financial inclusion are PayPal as the old school model interfacing with cryptocurrencies. This is fine and delivers a degree of inclusion because just about everyone can access PayPal. DeFi also offers inclusion, but with undiscussed unforeseen consequences like future lawsuits, lost keys and overhyped valuation due to tokenisation of a purchase, such as art or real estate.

One of the unsung heroic divisions of Blockchain is the use of DLT in health, tracking the pandemic, and ushering in a less-fraud-inflicted system for delivering a stimulus to citizens. Here, decentralisation proved to be inclusive across many sectors, not just of people but of business systems. Cryptocurrencies and tokens can greatly help in any future pandemic due to the attention on it now from this pandemic. •

TRUSTLY IS COMMITTED TO PROVIDING VALUE BEYOND PAYMENTS

LIAM COLCLOUGH SHARES

DETAILS of an exciting Open Banking partnership for Trustly, as well as why it is committed to providing the most sustainable way to pay and how it is supporting merchants and operators beyond payments technology

If you follow payments in online gaming and sportsbooks, you probably know how Trustly solutions have changed the way players deposit, validate their identity and make withdrawals in markets across Europe, writes Liam Colclough, the company’s Business Marketing Manager - Gaming.

What you may not know so much about is the value we provide beyond payment services. So, I would like to take this opportunity to share an overview of our broader vision.

First of all, I will explain how we are increasing user awareness of Open Banking Payments in the UK, and around the world. I have some exciting news to share in that department.

Additionally, I will look at how our solutions help operators meet responsible gaming standards. That includes automating KYC, supporting AML compliance and fraud prevention.

Finally, I’ll go over our commitment to sustainability and how that relates to consumer preference. This is about more than just being green.

Ready? Let’s go.

We’re driving awareness with West Ham United

I’ll start out with that bit of news I mentioned. In February, we were happy to announce that Trustly is now the Official Open Banking Partner of the Premier League’s West Ham United Football Club.

Trustly will have a visible presence across the club’s growing digital channels throughout a multi-year partnership. During matches, the Trustly logo is now displayed on the LED perimeter advertising system that surrounds the pitch at London Stadium.

Trustly is committed to creating stronger bonds with sport fans in 2021, and this partnership is catching the attention of millions around the world. This increased visibility is sure to improve player recognition of our logo in the cashier.

At the heart of the soul of London since 1895, West Ham United is a dynamic, fan-focused football Club constantly moving forward but always

TRUSTLY IS PROUD TO BE THE OFFICIAL OPEN BANKING PARTNER OF WEST HAM UNITED

with an eye on the past. West Ham United has expressed its dedication to innovation in many aspects of their organisation and Trustly is proud to support that vision.

Evangelising Open Banking in the UK

People’s desire for innovative digital services is one of the reasons Open Banking is taking off in the UK. More and more British consumers want faster, easier and more secure ways to pay.

Trustly has been present in the UK since 2016 and now we’re more accessible than ever. The standardisation of British Open Banking APIs means that all customers of all the major UK banks can now use Trustly to make Open Banking Payments, including online deposits.

Trustly also offers lightning-fast payout solutions, so players can receive their withdrawals right back into their bank account. It’s important to note that not all licensed Open Banking vendors have the capability to offer payouts.

As I covered in detail in SBC News last autumn, Trustly is committed to raising awareness around Open Banking in Great Britain. We’ve worked with the Open Banking Implementation Entity (OBIE) since it was founded in 2016 by British government with the mission of modernising bank APIs.

In addition to gaming operators, we’re actively engaged with British merchants in e-commerce, travel and financial services. We’ve found that once consumers pay with Trustly on one merchant's site, a stickiness is created and they choose us again when they have the chance.

Trustly provides a seamless deposit experience that digital native players crave. Once they experience this frictionless flow, it is hard to go back to old-fashioned card payments.

Over 2.5 million UK bank customers now connect their accounts to trusted third parties like Trustly. According to data from OBIE, that number is up from 1 million in January 2020, so it’s clear that the speed, simplicity and convenience of Open Banking appeals to British consumers.

Building consumer trust and strengthening fraud prevention

Part of gaining consumer confidence is providing a trustworthy product. According to Trustly research, when a consumer decides to try a new payment method, security and regulatory oversight are two of their biggest concerns.

Part of our consumer outreach is to communicate our commitment to security and data protection. That includes the fact Trustly never stores any data that can be used to access funds in the customer’s bank account.

Within Britain and the EU, biometrics are defined as one of the key safeguards for payment authorisation. Trustly’s biometric authentication not only increases consumer trust, fingerprint and face IDs provide the seamless UX players want.

Additionally, thanks to two-factor authentication, Trustly’s payments are always fully traceable. We have implemented comprehensive merchant due diligence, transaction monitoring and reporting processes, which all help to reduce money laundering and terrorism financing in society at large.

BEYOND PAYMENT TECHNOLOGY, TRUSTLY SUPPORTS KYC, AML & FRAUD PREVENTION

Beyond payment technology, we support merchants in tracing and verifying the source of funds, as well as lowering their transactions costs and reducing fraud. In addition to Pay N Play®, we offer Lean KYC, Name Verify, and Age Verify, value-added services that help leading operators automate compliance across multiple markets.

As part of our commitment to supporting operators’ payment

optimisation and compliance processes, we continuously monitor and respond to changes in local regulations. This not only reduces the operator’s risk, it helps fortify consumer confidence.

Providing a more sustainable way to pay

Consumers are increasingly interested in sustainability. A sustainable profile can be a real differentiator for operators –– and Trustly is dedicated to strengthening the sustainable bona fides of our partners by being a responsible supplier.

As part of our commitment to providing a more sustainable way to pay, Trustly has integrated sustainability efforts into our overall business strategy and operations. In addition to environmentally sound practices, sustainability is also measured in terms of economic viability, and social equity.

When it comes to the environment, we’re committed to mitigating our impact on the climate, demonstrated by our investment in climate-efficient offices and data centers. We strive to ensure suppliers meet our high standards and we do our best to recycle and reuse our IT hardware and e-waste.

We believe that diversity drives innovation that results in the creation of products that are more inclusive. Our workforce is made up of more than 50 different nationalities, and we’re continually improving our gender balance. In terms of economic viability, rather than using credit, consumers pay with money already in their bank account when they choose Trustly. As a debit payment method, Trustly is a sustainable way to pay that doesn’t contribute to increased consumer indebtedness in society.

At the same time, we deliver enhanced transparency and a more convenient consumer experience, without any hidden fees.

TRUSTLY IS COMMITTED TO PROVIDING A MORE SUSTAINABLE WAY TO PAY

NOW LIVE IN SWEDEN, SCAN N PLAY PRODUCT IS A REVOLUTIONARY CASHLESS SOLUTION FOR LAND-BASED CASINOS AND RETAIL GAMING SHOPS

This is just an overview of our sustainable approach to powering the shift to a cardless society. You can find the full Trustly 2020 Sustainability Report here for more details.

New Trustly products will continue to add value for operators

We believe that Pay N Play® is best-in-class when it comes to providing a faster, easier and more secure way for players to verify and deposit online. In the coming months, we will continue to expand our catalog with innovative new products that meet that same high standard.

Now live in Sweden, our Scan N Play product is a revolutionary cashless solution for land-based casinos and retail gaming shops. In 2021, Scan N Play will become available to landbased operators across Europe.

You’re sure to hear more about Scan N Play and more value-adding services from Trustly soon. Watch this space! •

UK NATIONAL LOTTERY LICENCE COMPETITION: HISTORY AND PAST CONTENDERS

WITH THE FOURTH TENDER PROCESS UNDERWAY, the next UK National Lottery operator must overcome a number of challenges

Since launching in 1994, UK National Lottery players have raised more than £42 billion for 625,000 good causes, changing lives and donating to the arts, sport, heritage and communities.

One constant throughout the National Lottery’s lifespan has been its current licence holder Camelot, which has operated the lottery since its inception and has won each of its three licence competitions in 1994, 2000 and 2007.

However, in previous licence competitions, several other companies have thrown their hats into the ring to become the next lottery operator.

With the fourth licence competition currently in process and Camelot facing competition from Czech Republic’s Sazka Group and India’s Sugal & Damani, we wanted to take a look at previous contenders for the lottery licence.

First licence - 1994

Camelot, owned at the time by Cadbury Schweppes, banknote printer De La Rue, telecoms group Racal, US computer company GTech and British computer firm ICL, beat seven other contenders back in 1994 for the first licence covering a period of seven years.

The operator was awarded the BRANSON THREATENED TO TAKE FURTHER LEGAL ACTION, BUT DUE TO THE PROSPECT OF A LENGTHY AND COSTLY LEGAL BATTLE, HE DID NOT PROCEED

licence by then-regulator the Office of the National Lottery (OFLOT) through the decision of former National Lottery Director General Peter Davis. This was based on its predicted income for good causes, with its process welcomed as robust.

BBC News reported at the time that Davis described Camelot’s bid as ‘clearly the all-round best applicant,’ and ‘strong in every department’.

One of the contenders it managed to defeat was the UK Lottery Foundation, led by billionaire businessman Richard Branson and former cabinet minister Lord Young.

Branson had offered to run the lottery on a not-for-profit basis and was not happy with Camelot being awarded the licence, arguing that his consortium would have given nominated charities and the arts all profits not used to run the lottery.

He said: "With this business, there is no risk. It's a licence to print money. For a few shareholders to cream off hundreds of millions of pounds from this is absolutely wrong."

Other companies that contended for the first licence include Games for Good Causes, GBLC, LotCo, Rainbow UK, The Enterprise Lottery Company, and The Lottery (RT).

Second licence - 2000

Three historic events took place for the National Lottery between the awarding of its first licence in 1994 and its second licence in 2000.

The lottery’s first live draw took place in November 1994 with 20 million viewers switching on BBC One to watch Noel Edmonds host the draw. This was followed by the introduction of scratchcards in March 1995 and the launch of a midweek draw in February 1997.

In April 1999, the National Lottery Commission also took over from OFLOT as the regulator of the National Lottery. Just two companies issued bids for the second lottery licence at the turn of the century, Camelot and the People’s Lottery, which was headed by Branson.

Even though fewer companies were bidding for the lottery this time