SBC Leaders Magazine - Issue 29 by SBC Global

SECTION

LONDON 2024

I S S U E

2 9

Sky Betting & Gaming

Doing the right thing Building the UK’s most popular brands

ESPN

To serve sports bettors Driving betting success for a media giant

Soft2Bet

Uri

Poliavich MEGA innovation means MEGA entertainment 1

The only daily news podcast in the industry. Listen every day on YouTube, Spotify, Apple, or wherever you get your podcasts.

EDITOR’S NOTE

Editor’s Note As ICE bids farewell to London and heads overseas, it is perhaps an appropriate time to think about what the betting and gaming industry contributes to the UK. This type of assessment is often presented merely in terms of taxation. And, with official forecasts suggesting that betting and gaming duties will raise £3.5 billion in the current tax year, the sector is an important contributor. However, putting this edition of SBC Leaders together really brought home the fact that the industry does much more for society than simply supporting the increasingly threadbare public purse. A trip to Flutter’s office found not just a global gambling business, but also one of the biggest employers in Leeds. When chatting to Sky Betting & Gaming’s CCO Steve Birch, it was clear that many of the jobs that the company had created in Yorkshire were high-value tech and commercial roles, filled by people who had developed their skills on in-house training programmes. Similarly, we spoke to MGM / LeoVegas and discovered a growing headcount in Newcastle-upon-Tyne. In fact, across the North of England - a region far from synonymous with tech industries - the gambling sector has created a huge number of skilled tech jobs. Think bet365 in Stoke-on-Trent and Manchester, Tombola in Sunderland, William Hill in Leeds… and that’s before you start to look at the supply chain. The Government’s ‘levelling up’ programme really could learn a lot from the betting and gaming industry’s success in bringing training and jobs to the North. Another northern powerhouse we spoke to for the issue was Betfred, a company which continues to support that most under-rated of societal benefits the community atmosphere and friendly feel of the high-street betting shop. In Betfred’s case, well over 1,000 of them. So, next time you read another attack on the gambling sector, remember that in providing entertainment, community meeting places, training, good long-term careers and lots of tax revenue, our industry has plenty to be proud of. - Martyn Elliott

SBC LEADERS ISSUE 29

06 Doing the right thing

16 Passion, data &

Sky Betting & Gaming’s Chief Commercial Officer Steve Birch shares some of the secrets behind the success of the UK’s biggest operator.

Snaitech CEO Fabio Schiavolin tells SBC Leaders podcast about his plans to change the Italian public’s perception of gambling.

14 There is room for all of us

As the UK market undergoes seismic change, the Health Lottery’s CEO Lebby Eyres argues for a level playing field for society lotteries.

modern agoras

SPORTS BETTING

20 Creating MEGA entertainment

Soft2Bet CEO Uri Poliavich explains how gamification can really work for sportsbooks.

Keeping an AI on the future Monika Grue, Group Director of Regulatory Compliance for LiveScore Group, explains why AI is a technology to be embraced.

30 The famous Tartan Army

McBookie Director, and football fanatic, Paul Petrie has more reason than most to be excited about Euro 2024.

The SBC Leaders Magazine is brought to you by SBC - Sports Betting Community: Editorial Team: Andrew McCarron, Craig Davies, Ted Menmuir, Joe Streeter, Chris Murphy, James Ross, Lucia Mouriño, Conor Porter, Charlie Horner, Jessie Sale, Fernando Noodt Molins, Callum Williams, Viktor Kayed, Martyn Elliott, Nick Ware, Lucia Gando, Jessica Welman, Ted Orme-Claye, Danny Lee Sales Team: John Cook, Rasmus Sojmark, Alyona Gromova, Conall McCabe, Jan Kowalczyk, Richard Deacon, Bob McFarland, Craig Brown, Juan Ospina Creative Lead | Design and Layout: Jessica Camilleri All material is strictly copyrighted and all rights are reserved. No part of this publication may be reproduced in whole or in part without the written permission of Sports Betting Community Ltd. Although every effort has been made to ensure the accuracy of the information contained in this publication, Sports Betting Community Ltd cannot be held responsible for any errors it may contain. Sports Betting Community Ltd cannot be held responsible for the loss or damage of any material, solicited or unsolicited. The views in the publication are not necessarily the views of Sports Betting Community Ltd or those of the advertisers. Produced and published by Sports Betting Community Ltd REGISTERED ADDRESS: SBC, Riverbank House, 1 Putney Bridge Approach, London, SW6 3JD TEL: +44 (0) 161 367 1250 | EMAIL: sales@sbcgaming.com | WEB: www.sbcgaming.com & www.sbcleaders.com

Contents 34 Punters go

60 Showcasing the

With the UK and US both set to go to the polls, could 2024 be the biggest ever year for political betting?

SBC’s new Behind the Badge podcast talks to experts from Real Betis and Burnley about the commercial side of sport.

38 Racing revamp

PAYMENTS

to the polls

on the right track

Horse racing betting is set for major innovations in the near future, says Stephen Davison, Head of Operations for Pythia Sports.

commercial side of sport

66 Brazil’s

crypto carnival

LATIN AMERICA

88 Integrity integral to Brazilian growth

Mikayel Shahinyan, CoFounder of Oddsgate details the company’s growth from start-up to major player in Latin America.

Success in Spain, expansion in Peru

CASINO

Mass adoption of digital currencies in Brazil is a very real possibility, says Vinicius Bazan, Head of Crypto Research at Empiricus.

44 From decks to

70 Reshaping the gaming

96 Preparing for success

Savvas Fellas, Founder of MrQ, has taken an unusual route to the top of the igaming industry.

OKTO’s Founder and CEO, Filippos Antonopoulos, sheds light on the dynamic evolution of the payments technology market.

Hugo Baungartner, VP Global Markets for Aposta Ganha, is confident the operator is ready to compete in Brazil.

deposits to dealers

An enormous evolution in Portugal Ahead of SBC Summit’s move to Lisbon, Américo Loureiro, Director of Solverde Casinos & Hotels, gives his view on the Portuguese market.

MARKETING

Bringing Vegas to the UK Launching a new brand in the UK requires a special promotional strategy, as BetMGM’s UK Director Sam Behar reveals.

57 Big brands lead

payments landscape

RETAbet CEO Xabier Maribona examines the operator’s progress in its home market of Spain and growth into Peru.

in Brazil

Gambling washes ashore in the UAE Could a Vegas of the Gulf be coming to the United Arab Emirates? Not yet but a legal gambling market is now a very real possibility.

NORTH AMERICA

A transatlantic retail story Joanne Whittaker, Group CEO of Betfred, and Kresimir Spajic, CEO of Betfred USA, talk retail sports betting.

search for success

To serve sports bettors

International affiliate Leadstar Media shares its insights on search data for the UK betting and gaming market.

Mike Morrison, VP of ESPN BET, outlines media giant ESPN’s ambitions for the sports betting sector in the year ahead.

SPOTLIGHT INTERVIEW

SBC LEADERS ISSUE 29

SPOTLIGHT INTERVIEW

DOING THE RIGHT THING Climbing to the top of the ultracompetitive UK online sports betting and gaming market is no mean feat, but STEVE BIRCH, Chief Commercial Officer of Sky Betting & Gaming, is in no mood to rest on his laurels. Words by MARTYN ELLIOTT & CHARLIE HORNER

“

e want to do the right thing for customers. We want to do the right thing for staff. We want to make things better - we’re about making things better.” As mission statements go, the one offered by Steve Birch, Chief Commercial Officer for Sky Betting & Gaming, is very good. Partly because it sounds great, but mostly because it is the philosophy that has led the company to the very top of the UK’s gambling industry. The Flutter-owned business can boast both the largest customer base for a UK sportsbook with its Sky Bet brand and the country’s most popular online casino in the form of Sky Vegas. However, it soon becomes clear when talking to Birch that he views the number one spot not as a ceiling, but as a platform for further growth.

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SPOTLIGHT INTERVIEW

“On gaming, Sky Vegas is a very big brand. It’s very popular, but it’s still got a lot of headroom in the marketplace. So we’ve got big growth aspirations for Sky Vegas. It’s a big entertainment destination and we will continue to grow that,” he said. “Sports is very saturated. It is tough, in that every proposition is getting to be more and more similar across the whole market. Everyone has copied each other to the point where everyone’s waiting for all the next things. Our job is to find the next big thing.” Part of his confidence that the Sky team will find that next big thing comes from the possibilities offered by working more closely with the other brands in Flutter’s UK portfolio, which includes Paddy Power, Betfair and Tombola. Not many businesses get the chance to see in detail what works for the opposition, and Birch regards the access as a fantastic opportunity for all the businesses. “It’s a privilege that you get to look at what a competitor does. To take learnings and share learnings is a privilege,” he said. “We want to make sure we’re being smart around how we’re coming to market and targeting the market, that we are overlapping on purpose, we are different on purpose. “Ultimately, we want to create a big advantage by having multiple brands in the marketplace.” The close working relationship between the Flutter brands has limits though and punters should not expect to see Sky Bet indulging in any Paddy Powerstyle guerilla marketing stunts or Sky Sports pundit Roy Keane popping up in a Tombola ad anytime soon. “You’ve got to be careful, because if we share too much, we just become the same thing - and then you lose the power. It’s a careful

balancing act of sharing, but choosing where you need to be different,” said Birch. “We’re lucky that we’ve got four amazing brands. They’re all different, and they’ve all got very different personalities and tones of voice. So 100% they have to remain separate. That’s in part why the customers who pick those brands like them.” CHANGE IS THE LAW OF LIFE One thing that has cast a shadow over the industry in the UK in recent times is whether the next iteration of the Gambling Act will restrict growth opportunities, but Birch appears less worried than most about how the new regulations will look. “It will change things. But there’s an excitement about it changing things, because there’s an opportunity when there’s a change. If you’re good at what you’re doing, variance is good,” he said. Perhaps the reason that Birch is so upbeat about change is that he has seen a lot of it during his time with the operator. When he joined as just the company’s second analyst 16 years ago, betting via the red button on digital TV was still a big thing, along with desktop and telephone, while WAP betting was still in its early days. As mobile betting took off and the company grew, Birch’s career followed the same upward trajectory. In 2015 he became Marketing Director and then stepped up to Managing Director, before taking on his current role leading the Sky Betting & Gaming business as part of Flutter’s UK&I division. It is not just the technology and Birch’s job title that has changed, as his single-employer career has involved working for four different owners.

“

Sky’s tagline is ‘Believe in Better’ and we carry that in our DNA.

SPOTLIGHT INTERVIEW

SBC LEADERS ISSUE 29

“

There’s people in this building who are helping run worldwide gambling products, which is quite exciting for Leeds.

The operator was part of the media giant Sky when he joined the business, before private equity firm CVC Capital Partners purchased a majority shareholding in 2015. It was then acquired by The Stars Group in 2018, before becoming part of the gambling global giant Flutter two years later. That back story has given Sky Betting & Gaming a unique culture. From the Sky-ownership era, the most obvious thing it has retained is the brand name and a strong relationship with Sky Sports, which sees it continue to work with on-screen talent to this day. However, those are far from the only things to have survived from those days. “The brand is important, our relationship with Sky Sports is important to us,” said Birch. “There are also cultural things in the business which have come because of our Sky days. Sky’s tagline is ‘Believe in Better’ and we carry that in our DNA. It’s partly why the business has grown. There is a thirst to make

things better for customers, to make things better for staff.” He continued: “Definitely from private equity, we’ve kept a startup mentality, wanting to deliver at all costs and deliver things quickly, to be aggressive in the market and really focus on customers. “Then as we’ve transitioned into bigger corporate ownership we’ve got better at being more efficient in how we run things, thinking about how to make our processes grow and do a better job of managing our scale.” GROWTH THROUGH INNOVATION The big company feel is certainly present at Sky Betting & Gaming’s stylish modern offices in the centre of Leeds. Look in one direction from the building and you will see the city’s Russell Group university, where so many crucial scientific developments occurred. Look the other way and you can see the roofs of the twin Headingley sports stadiums, where Kevin

Sinfield and Garry Schofield became local legends, and the Australia-confounding antics of Ian Botham and Ben Stokes became seared in the English national psyche. Sandwiched between a crucible of innovation and a scene of sporting greatness is an appropriate location for this unique business. Not only is it intrinsically linked to the sporting world in the eyes of the public, it has also consistently pushed the boundaries to improve its products and customer experience. “For us, ultimately, ease of use and an interesting product is really important to customers,” Birch said. “We’ve been lucky enough to find some things which are interesting to customers, to have the technological capability to build those out, and to keep improving those things until they’ve really been taken up in the marketplace. RequestABet is a great example of that.” He continued: “Bet builders obviously came off the back of RequestABet. If I’m being

SPOTLIGHT INTERVIEW

honest, we were slow to market with the bet builder product because we had RequestABet. If I had that time again we would be quicker. “We now have a good BuildABet product and the innovation there will come from how easy it is to use, the information that we give customers and also the market varieties that you can put in it.” Bet builders may be the current product du jour, but Birch believes the industry will find the next big thing, and then another and another. “Logically there has to be. I have no idea what they are yet, but everyone can keep innovating. And someone’s going to find some innovation from somewhere. You have to hope it’s you that’s going to find it.” That change may, however, be driven by sports and broadcasters, as much as by the betting and gaming industry. Birch cited football as the prime example of this, as the evolution of the sport and the available data have created new betting opportunities and driven the development of new products - such as the increasingly popular shots on target markets - while Sky Sports’ innovative broadcasts have helped to educate punters. “Ultimately, people want to put on a bet that is going to be interesting - and they think is going to win. So particularly bets around data, where players have got some insight into what might happen. Then it’s on us to provide an experience that leverages that,” he explained.

SPOTLIGHT INTERVIEW

SBC LEADERS ISSUE 29

“

Ultimately we’re an entertainment business, so it has to be fun to work here.

“Our relationship with Sky Sports is a big advantage here and is one that we’ve leveraged. The Sky Sports broadcast will bring some of the data through and we want to try to make sure we’ve got a data-rich, easy-to-use experience.” THE NORTHERN POWERHOUSE The commitment to innovation - not to mention the bid to stay ahead of the competition - requires a lot of talent. Flutter is one of the biggest employers in Leeds, with 1,800 people based in the Yorkshire city. “This is Flutter’s biggest office in Europe. We’re definitely a rarity as a FTSE100 business that’s got a big office in Leeds, which is something to be really proud of,” said Birch. “There’s people in this building who are helping run worldwide gambling products, which is quite exciting for Leeds.” Finding the right skills to drive Sky Betting & Gaming’s growth plans can be difficult, but Birch believes that the company has advantages in the recruitment market. “People want to come as they know we do tech at scale, because we’ve got so many customers, we have big volumes and some big problems. We also like innovating and releasing things for customers. It definitely helps that the work is interesting,” he said. The business also invests heavily in training and runs both a tech graduate programme and a commercial graduate programme every year. These are particularly attractive to ambitious young people, as longer-term the successful applicants have access to opportunities across the entire Flutter group, including overseas. All this is backed by a healthy benefits package and a flexible approach, as well as by a little X factor that helps with retention.

SPOTLIGHT INTERVIEW

passionate about, which is to ensure the company is a good citizen.

“Ultimately we’re an entertainment business, so it has to be fun to work here - otherwise you can’t produce a good proposition for your customers. I massively believe in that,” Birch enthused.

“Part of what we wanted to do with the renewal was create some lasting good and make sure that we were putting something back. Giving back is part of the DNA of the business and we wanted to make sure that a big sponsorship is no different,” he explained.

“There’s not many things that are unique in the sector. How good your staff are is one of the things that can be unique. So we need to have good quality staff.”

“We created the Building Foundations Fund, which sees at least £1 million invested each year for the next six years via the Community Foundations of EFL clubs. This year, each Foundation can use £10,000 to put into something of their choice and then, going forward, they will be able to apply for grants for projects.

A GOOD CITIZEN One other key part of Sky Betting & Gaming’s identity is its partnership with the English Football League. The deal was recently renewed for a further six years and is now the longest-running sports sponsorship in the UK, something which Birch and his team are “very, very proud of”.

“The Community Foundations do great things in their local towns, they’re a massive part of the community. Our contribution will enhance their work.”

While Sky Sports is best known for its relationship with the Premier League, Birch believes that for Sky Bet, the EFL - which had a combined attendance of 19.8 million last season - is a more suitable partner.

The Building Foundations Fund is just one of the ways in which Sky Betting & Gaming is giving back to wider society because, as Birch puts it, CSR is “not just ticking a box”. Staff receive volunteering days, which can be used for any good cause, and are also involved in the company’s Annual Charity Gala.

“Football is part of our heritage with Sky. It’s where we have done well previously. It’s where we will continue to excel. Football is our DNA,” he said. “The EFL is great because you get such good access to spectators, to viewers, and some really, really great football. Obviously we are only a UK betting brand, so it doesn’t stack up to be the Premier League. The EFL makes sense for us financially.

“We select a charity of the year, which is nominated by and voted for by staff. Last year our big charity night raised £253,000 for the Children’s Heart Surgery Fund,” said Birch. “It’s a privilege to be able to do that. The staff love it. It’s really important to the staff, it’s really important to the business, and it’s great that we get to support the charity.”

“It’s also great to work with the league and the clubs, and the stories you get to see. Obviously the Championship is very different to League 2, different to League 1, so the diversity across the leagues is fascinating.”

And there can be no better example of doing the “right thing for staff” and “being about making things better” than that.

The partnership also helps to achieve something else that Birch is

OPINION

SBC LEADERS ISSUE 29

THERE IS ROOM FOR ALL OF US As the market prepares for the changeover of the National Lottery licence holder, The Health Lottery CEO LEBBY EYRES argues for a level playing field.

very society lottery CEO in the land will have been keeping an eye on what Allwyn has been up to over the past few months, ahead of its takeover of the UK National Lottery in February 2024.

have always campaigned for is simply a level playing field where we can all go about our business. If The National Lottery is exempt from contributing to a statutory levy, then we should be too.

The party line is there is room for all of us to grow and thrive alongside one another, and numerous reports back this up as being more than just wishful thinking. But the question remains: how much do the Government and the new holders of the National Lottery licence believe this themselves?

I recognise, of course, that the consultation acknowledged a legislative impediment to a level playing field on the levy. But where there’s a will to change legislation, it can be done - we see evidence of this in the news on a daily basis.

The announcement in the consultation on the statutory levy in October that society lotteries will have to contribute 0.1% to a statutory levy while the National Lottery will remain exempt risks perpetuating the view that we are an irritating thorn in the side of both the National Lottery and the Government. What The Health Lottery and other society lotteries like People’s Postcode Lottery

And all this is not to say we don’t support regulation and education around safer gambling, but rather a plea for recognition of who and what we are: a vital part of good causes fundraising in this country which poses very little risk to the consumer. Lotteries by their nature are a softer form of gambling than casino, slots and sports betting. Where there is higher risk - likely to be found mainly in instant win products we take steps to mitigate it.

OPINION

“

Currently, society lotteries are bound by rules governing jackpot size and annual turnover designed to protect the National Lottery. But the net result is we ourselves are now threatened by unregulated prize draw companies that have no cap, and the hefty marketing budgets of the big betting companies.

You do know that Allwyn will consider every pound spent with The Health Lottery as a pound not spent with them.

In 2022, the DCMS published a one-year review on the raising of the society lottery prize limit from £400,000 to £500,000 and the maximum annual sales limit to £50m. It noted: “We also met with National Lottery sector stakeholders (Camelot and the distributing bodies), who are generally supportive of society lotteries run to fundraise for single causes, but continued to be concerned about society lottery marketing.” It remains to be seen whether Allwyn’s approach will be more welcoming, or even colder than Camelot’s. Earlier this year a journalist said to me, “You do know that Allwyn will consider every pound spent with The Health Lottery as a pound not spent with them.” Will it want to crush our very existence? There are already signs Allwyn may have more to worry about than worthy single issue society lotteries like ourselves. Of course, I have been concerned by the initial promise to cut ticket prices from £2 to £1, which is the cost of a Health Lottery Big Win draw ticket, and I’m sure other charity lotteries, with their similarly economical price points, are also worried. However, that price cut is now unsurprisingly “under review”, and Allwyn has also said its pledge to double good causes funding will take longer to be realised than initially planned. Naturally, we’ll continue to cheekily point out to our customers that they are 21 times more likely to win our jackpot than Lotto’s, and remind them that our All or Nothing game has the best odds of winning a prize in Britain. This is normal, healthy competition, and I hope Allwyn sees it that way. Why not have a spirit of togetherness for all those involved in the business of supporting good causes funding across Britain?

SBC LEADERS PODCAST

SBC LEADERS ISSUE 29

PASSION, DATA & MODERN AGORAS Transforming retail premises, online platforms and communication with players is key to changing the public’s attitudes to the gambling industry, Snaitech CEO FABIO SCHIAVOLIN told the SBC Leaders podcast.

SBC LEADERS PODCAST

he in-tray of a CEO of any major betting and gaming operator is both full and varied. Some of the tasks are faced by leaders in every industry - keeping the board and major shareholders happy, perhaps being the prime example - but as the man in charge of one of the top three Italian operators, Snaitech’s Fabio Schiavolin also has some more unusual items on his to-do list.

betting shops from a bench of counters and punters into what we call a modern agora.

Asked by Andrew McCarron, Managing Director of SBC, whether that workload included representing the wider gambling sector to the Italian public and trying to break down some of the negative perceptions that have grown up around the industry, Schiavolin admitted that communication was a key part of his role and that it was a “big challenge every day”.

The effort to create a true leisure experience for both online and retail players is a key part of Snaitech’s attempts to reinforce the message that gambling is a recreational pursuit.

One element of that is helping to deliver the message to customers that sport is not just a vehicle for gambling, it is something worth getting excited about in its own right. Efforts to embed this attitude in Snaitech’s players also help to drive home the crucial safer gambling message. “When we speak about sports betting, it’s all about passion. It’s also about, let’s say, love for sports and for the value of the sports,” Schiavolin explained. “And more and more the new generation are also transforming themselves. So gamblers are becoming more passionate about data, about statistics. It’s changing their approach.” Online channels provide an ideal platform from which to deliver that additional sports content, but Schiavolin believes that the company’s extensive retail network can do exactly the same thing. “I think we can do a lot by also transforming our point of sale,” he said. “We’re investing a lot of money to transform the sports

“So squares in which you can get access to streaming, to a lot of events where players can meet and convene to exchange experiences and ideas. Spend time inside the shops and they can live a different experience from what they’re used to. It’s possible.”

Schiavolin regards the jurisdictions the company has a B2C operation in - Italy, Germany and Austria as “over-regulated”, which only emphasises to him the importance of creating a more engaging and less transactional experience for customers . “Our approach to things that we do every day is very humble, is very respectful, respectful of rules, respectful of customers, of players,” he said. “I think that big companies and big brands have to risk a little bit more than the others to invest in the future. So being less aggressive in advertising, for example, less aggressive in pushing activities on the customer and [instead] giving much more entertainment, much more gamification. “That’s what we’re really doing now. We are exploring the metaverse, we’re exploring a lot of the esports, [which are] areas that could be developed in that direction. I think there are many possibilities for us, for the operators to drive this revolution for the future.” The SBC Leaders podcast is available on Spotify, Apple Podcasts and all the usual apps. Alternatively, scan the QR code to watch the episode on YouTube.

“

I think there are many possibilities for operators to drive this revolution for the future

SBC LEADERS ISSUE 29

SPORTS BETTING

TED MENMUIR COLUMN

BETTING FACES STRESS TEST OF A 2024 OF GLOBAL ELECTIONS Perhaps by some form of voodoo magic or maybe it’s just a cosmic alignment, 2024 will set the stage for democracy’s biggest test of a young and turbulent 21st century, writes SBC’s Content Director TED MENMUIR.

2024

will see more countries participate in general elections than any other year in modern history. A record-breaking 40 ‘democratic nations’ will go to the ballot box, impacting the lives of an estimated global electorate of two billion people. Casting lots in this Super Bowl of global politics are the most powerful and wealthiest nations (the US, India and UK), some of the weakest (South Sudan), the most despotic (Russia, Iran) and among the most stressed (Taiwan, Ukraine). Some will be open, free and fair, many less so. For betting and gaming there can be no escaping the ramifications of an election-packed year, as leadership conducts the daunting task of gauging public sentiment, intent and outcomes. Polls and pollsters should be referenced, but it’s prudent to remember that there is no API, algorithm or AI to help operators measure human instincts and emotions. US 2024 – A MARKET OF KNOWN UNKNOWNS? Buckling down on US 2024 affairs, sportsbooks face multiple unknowns when pricing their Presidential markets. Not least that it remains unconfirmed who will win the Democratic and Republican party nominations. Do the Democrats maintain faith in a gaffe-prone 81-year-old Joe Biden? Is the incumbent the

man to motivate a downcast US electorate to actually vote come November? Republicans face even greater chaos. What will come of former President Donald Trump’s ongoing legal tribulations, as the former President is banned (at present) from the ballot in Colorado and Maine, a precedent that may well be replicated by other US states. Despite remaining the firm favourite to lead the GOP’s campaign, Trump’s legal quagmire could see him replaced by a substitute candidate, tipped to be Nikki Haley, recognised as the ‘establishment’s choice’ but loathed by the MAGA base. UK WEIGHS SUBSTANCE OF SUNAK & STARMER UK proceedings will be played out against the chaotic backdrop of the US, as the public waits for PM Rishi Sunak to announce an election date before 17 December. The PM no longer needs a parliamentary vote to call an election, following the repeal of the Fixed-Term Parliaments Act 2011. The timing of the election will likely be influenced by various factors, including the Conservative Party’s progress on the key pledges of halving inflation, growing the economy, reducing national debt and NHS waiting lists, and introducing new laws to stop small boats. Bookmakers currently offer short odds on a Labour victory,

following strong performances in recent by-elections, and the potential impact of tactical voting against an unpopular government. Yet concerns remain about the campaigning abilities of party leader Sir Keir Starmer and recent YouGov polls suggested that 50% of Labour voters think unfavourably of him. Significantly, north of the border, the SNP’s problems may see Labour make gains that could greatly improve their chances of securing an electoral majority but this is contingent on whether Scottish voters are convinced by the Starmer-led campaign. POLITICS GUARANTEES BILLION DOLLAR BABY The 2024 elections in the US and UK are anticipated to draw significant attention from bettors. The 2020 US election was the world’s biggest betting event, with £1.7bn traded on Betfair Exchange From a market perspective, punters react in real-time to election developments, as they do with major sports events. This creates unique opportunities for bettors, with fluctuations in odds influenced by public opinion, exit polls and incoming results from different regions. Whether involved or not, the chaotic nature of elections will challenge all betting leaders, as there will be no cashing-out from politics in what will be a year like no other.

SPORTS BETTING

SBC LEADERS ISSUE 29

MEGA MEGA INNOVATION MEANS

ENTERTAINMENT

SPORTS BETTING

In a world of homogenised sportsbooks and online casinos, Soft2Bet’s Founder and CEO URI POLIAVICH is on a mission to help operators build unique solutions specific to their customer base. Words by MARTYN ELLIOTT

echnology has transformed the sports betting and iGaming industries over the past 20 years. Of this there is no doubt, but Uri Poliavich believes the sector still has a long way to go to harness the full potential of the latest tech. Having amassed vast experience in both retail’ and online gaming, Poliavich founded Soft2Bet in 2016 after recognising that there was a huge opportunity for an imaginative technology-driven company to disrupt the space. Under his leadership, the company’s data-driven approach, continuous innovation and commitment to creating safe, responsible products has seen it grow into one of the industry’s leading tech businesses. It enjoyed a hugely-successful 2023, tripling its EBITDA and launching into seven new markets, but Poliavich is convinced there is much more to come. This confidence is bolstered by its unique Motivational Engineering Gaming Application (MEGA) gamification engine, which Soft2Bet’s CEO was eager to tell SBC Leaders all about. WHAT IS MEGA AND WHAT BENEFITS DOES IT DELIVER FOR SPORTSBOOK AND ONLINE CASINO OPERATORS? Soft2Bet’s proprietary Motivational Engineering Gaming Application is much more fun and interesting than the standard approach typically used in iGaming. Imagine shopping for a new car - you can either get a standard model, or one with all the additional features custom-made for you. This one has a more powerful engine, more comfortable seats, air conditioning set to the perfect temperature - but costs the same.

The realisation of a truly gamified sportsbook is something we are continually working toward.

SPORTS BETTING

This is what MEGA does for operators. Unlike traditional practitioners, who merely incorporate game-like elements such as points, badges, and leaderboards, MEGA delves deeper into understanding player motivations and customises the experience accordingly. This personalised approach strengthens the emotional connection between users and the platform, enhancing the overall user experience while also driving stronger results. Quality always brings attention, and the use of motivational engineering has proven to capture significantly more user screen time. And MEGA will only get better. Indeed, we plan to take it a step further by adding social elements to the offering. These new functions will allow players to unite into groups or clans, exchange achievements and bonuses, or simply chat. With offerings such as a PvP arena where players can compete with each other and a Marketplace where players trade in-game items, we are fostering the next level of gamification and connection with consumers. THE IDEA OF A GAMIFIED SPORTSBOOK HAS BEEN TALKED ABOUT FOR A LONG TIME, BUT NO OPERATOR HAS REALLY MANAGED TO DELIVER ONE YET. WHAT ARE THE DIFFICULTIES IN ACHIEVING THIS, PARTICULARLY COMPARED TO A GAMIFIED CASINO, AND HOW IS SOFT2BET OVERCOMING THESE CHALLENGES? The inherent complexity of real-time events is what makes embedding gamification into sports betting platforms such a formidable challenge. While casino games have a closed selection of outcomes with predictable odds, sports betting is much more dynamic. It requires leveraging advanced algorithms and realtime data integration to ensure

the seamless incorporation of the gamification elements. But there is still an opportunity to introduce fun new features such as in-play challenges, personalised notifications, and interactive elements. These can help to empower users with a heightened sense of involvement and influence. By integrating innovative features that align with our three key pillars of gamification, localisation and customisation, we can create a more dynamic and engaging experience for players. The realisation of a truly gamified sportsbook is something we are continually working toward, and innovation remains the key to success. Our pioneering technology and unwavering commitment to ethical design offer a beacon of promise for the future. As we continue to advance technologically and champion responsible gaming, we anticipate the imminent actualisation of a truly immersive and captivating gamified sportsbook, one that will reshape the landscape of interactive sports betting. THE THING THAT SOFT2BET IS PERHAPS BEST KNOWN FOR IS BEING AT THE FOREFRONT OF INTEGRATING NEW TECHNOLOGY INTO IGAMING PRODUCTS. HOW ARE YOU TAKING ADVANTAGE OF THE OPPORTUNITIES BEING CREATED BY DEVELOPMENTS IN ARTIFICIAL INTELLIGENCE? The era of AI is already here. By the end of 2023, AI was everywhere. It has unlocked an incredible level of content personalisation, to an almost terrifying level. But I’ve never been one to shy away from a new technology. AI and ML are already used in Soft2Bet’s website navigation and search tools, for personalisation, player segmentation, optimisation of our bonus engine, CRM campaigns and much more.

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We need to focus on weaving experiences as diverse and thrilling as the players themselves.

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The operators who will dominate tomorrow aren’t peddling products, they’re weaving lasting experiences.

Looking ahead, as AI algorithms advance, operators will be able to leverage them for even more efficient analysis of customer preferences. This will enable profound insights into player behaviours, preferences, and patterns.

just comply, but revolutionise. We need to visualise AI-driven tools that anticipate and pre-empt potential risks, guiding players towards informed choices and healthy habits - which leads to a note on fintech.

AI’s evolving sophistication allows the creation of dynamic and responsive gamified elements, adapting in real time based on individual player interactions. The outcome is a heightened gaming experience, fostering increased player retention and a competitive edge in the market.

And forget clunky gamification in fintech. Gamification, when thoughtfully applied, can demystify complex financial concepts, transforming intimidating service into engaging challenges and teachable opportunities. SOFT2BET WORKS WITH A LOT OF OPERATORS IN A NUMBER OF DIFFERENT MARKETS; FROM YOUR CONVERSATIONS WITH THEM, WHAT IS THE PRODUCT THEY WOULD MOST LIKE TO SEE DEVELOPED?

WHAT OTHER BIG TECH TRENDS DO YOU SEE EMERGING AND HOW MIGHT THEY INFLUENCE THE BETTING AND GAMING WORLD? DO YOU SEE ANY TRENDS FROM THE FINTECH SECTOR CROSSING OVER INTO IGAMING?

Users crave connection and personalisation - all tailored to their unique needs. The operators who will dominate tomorrow aren’t peddling products, they’re weaving lasting experiences. Imagine a product that’s like a chameleon. This dynamic iGaming beast morphs itself and its benefits to each user, creating a canvas reflecting their desires - not the other way around.

This year, it’s not just about riding the waves of established trends; it’s about steering into the uncharted waters of a transformative future. Let’s rise above the mundane. In 2024, mobile gaming is set to further permeate global markets. By 2030, this ubiquitous ecosystem will surpass $150 billion, reshaping entertainment landscapes across the globe. Our challenge, then, is not simply to adapt - it’s to lead the charge in crafting immersive, hyper-personalised mobile experiences that captivate hearts and minds in uncharted markets.

Operators are looking for innovative solutions that can analyse a player’s betting patterns, their risk tolerance, their very pulse when the stakes rise. This product could then craft bespoke challenges based on those real-time analyses. We’re not just talking about prepackaged games.

Additionally, let’s imagine groundbreaking, gamified tools that not only protect individuals, but empower them. Responsible gaming shouldn’t be a box we tick; it’s a paradigm to lead. As we venture into new frontiers with evolving regulations, let’s not

These leaders desire a product that understands and adapts to emerging trends and requirements before they become mainstream. One that stays ahead of the curve and sets a new industry standard.

SPORTS BETTING

We need to focus on weaving experiences as diverse and thrilling as the players themselves. It’s about unlocking that next level of customisation and adapting to changing preferences, so operators can navigate a rapidly evolving industry. There is no one-size-fits -all solution. Like Soft2Bet, operators want to embrace products that have a modular approach and capture dynamic, ever-changing customisations. FINALLY, WHAT DOES SOFT2BET HAVE PLANNED FOR 2024? Our 2024 strategic objectives focus on further expanding our presence in Europe and North America. We are actively working towards entering the US market, with a particular emphasis on New Jersey, due to the immense potential and dynamic nature we see in the online gambling sector in the US, as well as expanding into Portugal and Ontario, Canada. Regarding our product, our primary focus remains on enhancing our MEGA technology. Powered by a robust tech stack, it consistently boosts engagement, volumes, and revenues by providing unparalleled personalisation and tailored user experiences. Soft2Bet is an iGaming visionary with deep industry expertise and innovation as its core. That’s why our innovative custom MEGA solutions, coupled with advanced analytics and a steadfast commitment to responsible gaming, position us not only to adapt to the evolving landscape but to confidently lead and define it in 2024 and beyond.

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KEEPING AN

ON THE FUTURE MONIKA GRUE, Group Director of Regulatory Compliance for LiveScore Group, explains why AI is a technology to be embraced rather than feared. Words by MARTYN ELLIOTT

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arely a day goes by without artificial intelligence making the headlines. Depending on which commentator you believe, the technology poses an existential threat to humans, will mean the end of all jobs as we know them, or provides the potential to solve many of society’s greatest problems. What this means for the gambling industry is as yet unclear. AI is already driving a new generation of super-fast and ultra-personalised sportsbook and online casino products, but nobody yet knows the extent to which it may be utilised for nefarious purposes. Despite that uncertainty, Monika Grue, Group Director of Regulatory Compliance for LiveScore Group, is optimistic about the potential for AI in the betting and gaming industry. During 15 years working for some of the biggest brands in gambling, she has dealt with many new technologies and is confident that this latest arrival will have significant benefits for gambling compliance professionals.

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We want people to enjoy themselves and to enjoy their play within a regulated environment.

“At most places where I’ve worked, we’ve seen ourselves as both a gambling company and a technology company, so new and evolving technologies have always been really, really exciting,” Grue explained. “At LiveScore Group, we are super excited about AI and technology. We try to be at the forefront of any developments in that area and recognise that it could bring opportunities, recognise that it’s the future and, as a business, that we have to adapt to it.” She continued: “It does pose additional complexity - that’s mostly because some aspects are still very new, and we need to do more testing and learn a little bit more - but there are some elements of AI that could be really helpful within the compliance arena. “The most obvious are the RG algorithms that track and monitor

behaviour and recognise trends. They could really help us to identify the small number of people who may need interaction or intervention to help them manage their play more responsibly. There are also tools, such as chatbots, that could help with interventions and make them more real-time.” LiveScore Group is now actively researching ways in which AI can be utilised to benefit players, a process that Grue’s team is heavily involved in. “Any new ideas will need to be signed off from a compliance point of view. We need to test them and make sure they’re robust,” she explained. “But generally speaking, we continue to monitor any technology developments - not just in AI - and will always continue to do so. It’s something that is really important and exciting for us.” A CAREER OF CHANGE It should come as no surprise that Grue is happily taking the arrival of AI in her stride, as an ability to cope with change has been a significant factor in her career. On a personal level, Grue has progressed from her first role in the industry as a translator, through positions in business analysis, technical compliance, audit and more traditional compliance that have encompassed almost every regulated market in Europe. She now heads a key department at a group that owns the Virgin Bet and LiveScore Bet brands, and is licensed in the UK, Gibraltar, the Netherlands, Ireland and Nigeria. “My primary responsibility is to oversee the group compliance controls and to continue to drive our commitment to transparency and accountability. I want to safeguard the reputation of the industry and ensure that we operate with integrity and with the wellbeing of our players at the heart of decision-making and everything we do,” she said of her current job.

SPORTS BETTING

Her career journey has coincided with huge changes in the industry, as technology drove the growth that persuaded more governments to regulate and tax online betting and gaming. In Grue’s opinion, the majority of the resultant changes have been positive. She identified licensing as the single most important development, as it has helped to ensure that “only companies with the right intention and the right resources to really support a compliant business” have access to markets. Grue added: “It also means that regulators have gained powers to go after unlicensed operators, which is extremely important for player safety. As an industry, and also for the regulators, the aim is to keep players in a regulated environment, where they are protected and where they are taken care of.” Age verification measures, enhanced AML controls, more sophisticated monitoring of RNG games and improved observation of sports betting activity to identify possible integrity breaches are also welcome developments, according to Grue. “The introduction of player protection tools, both customer-led and operatorenforced, and requirements to interact with players when we notice potential at-risk play are important,” she continued. “As are the controls we’ve seen lately around the integrity of marketing offers, protecting players’ interests when it comes to bonus offerings, terms and conditions. “I want to highlight that it’s not just players that are benefiting from this, but it’s also us as a company and as an industry because this helps us to ensure a long-term sustainable business.” MORE CHANGE ON THE HORIZON It is almost indisputable that regulation has been an overall positive for the industry, even if a lack of standardisation across jurisdictions has made expansion into new markets a longer and more complex process. For Grue, however, learning what can be reused from long-regulated markets, discovering the intricacies of new regulatory regimes, and working out how to accommodate them are just some of the challenges that make her job at LiveScore Group so enjoyable.

“I think it has made our work very interesting because it’s really nice to work on different projects and to see, ‘Oh, actually, they’re doing something unique and really interesting for this territory; maybe we can reuse that for another territory and improve our best practices’. So there has been a lot of learning, and variety is always good,” she enthused. Of more concern are moves to amend regulation in established markets. Grue recognises that compliance requirements must evolve over time to reflect the impact of new technology and emerging forms of criminal activity, but is worried there may be unintended consequences if legislators are too heavy-handed. “We have reached a point where the regulation is so detailed and so sophisticated - and has improved over and over again - that we feel many operators are already operating with integrity and have really robust controls in place to protect people and ensure a safe environment,” she said. “The industry has come a really long way from where it started, and we don’t want to be in a position where any new measures that are introduced are not proportionate and would not make a significant difference.” Grue reiterated that Virgin Bet, LiveScore Bet and their licensed competitors are part of a “leisure and entertainment industry” that most customers enjoy safely within an environment that already offers protections for those at risk. As such, she wants any regulatory changes to “provide freedom for people to continue to enjoy our products”. “We don’t want regulation that is restrictive to the point where it introduces unwanted behaviours and players actually trying to circumvent our already working and existing controls,” Grue concluded. “Ultimately, we want to keep players within the regulated sector. Me personally, as a compliance professional, our company and our industry, that’s what we want. We want people to enjoy themselves and to enjoy their play within a regulated environment, instead of migrating to unlicensed operators where there are no protections in place.”

It does pose additional complexity but there are some elements of AI that could be really helpful within the compliance arena.

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Germany calling for the

FAMOUS TARTAN ARMY With the Tartan Army heading to Germany to support Scotland’s best team in 20 years, McBookie’s PAUL PETRIE has more reason than most to be excited about Euro 2024.

SPORTS BETTING

Words by JESSIE SALE

his summer’s Euros will see Scotland travel to Germany in confident mood after a qualification campaign during which Steve Clarke’s men established themselves as a force to be reckoned with. The tournament will also present a major opportunity for the Scotland-first operator McBookie.

As a smaller, independent operator, Petrie explained that McBookie will only be marketing in Scotland, which will be a “huge help” to his team.

It’s firm’s Director, Paul Petrie, is now focused on how to stand out from the competition this summer and differentiate its offerings from those of the UK market’s biggest brands.

Petrie also made the point that the Scottish bookmaker does not have to be neutral in who it is supporting. “We want Scotland to win and everyone else to lose!”

Petrie “without a doubt” expects Scotland’s place in the Euros to boost engagement levels much higher than if they had not qualified - but this is far from the be all and end all for McBookie. “It doesn’t happen often but, thankfully, we also qualified for the last Euros and we saw the impact that had on account generation and interest in the competition compared to the World Cup in 2022, for example,” he said. Despite this, Scottish punters’ love for betting on football means that even if the nation hadn’t qualified, it wouldn’t have been “the end of the world” from a turnover point of view for the Dundeeheadquartered company. “However, we broke all records at Euro 2020 in the three games Scotland played and will be massively disappointed if that isn’t replicated this year,” Petrie said. “And the fact that Scotland play Germany in the opening fixture makes it even more special.”

He continued: “Most of the other operators will be concentrating on England so it allows us to stand out with our campaigns.”

McBookie will use its connection and knowledge of the Scottish market to its advantage during the Euros. Petrie explained: “For the last edition, we opened a market on which players would make the squad. We were the only bookmaker to offer such a market and it proved very popular from a betting and PR point of view.” The Director added that McBookie will be looking at similar markets again this time, and praised its “already excellent” brand ambassadors as experts in Scottish football, who will use their knowledge to generate topical content. According to Petrie, the media has been approaching the brand for some time already - regarding how the different stakeholders can work together during the tournament. “The fact that we are a Scottish brand means we can come up with ideas that will work well for both our customers and the media’s viewers, listeners or readers,” he commented.

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While Petrie and his team are still to finalise their strategy for the summer, the Tartan Army can expect a positive message from McBookie. “This is the best team we have had in over 20 years and many already think we are potential dark horses,” he said. “In 1978, Scotland went to the World Cup believing we had a chance to win the whole thing. ‘It’s coming home’ might mean to Scotland in 2024!” However, fans hoping for something really outlandish may have to temper their expectations. “We have always made sure any marketing we do is compliant and have never tried to really be too controversial. It just causes you pain further down the line so we will be fine,” Petrie added.

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I would be very disappointed if we didn’t break all records during the tournament so that should tee us up nicely for a good 2024.

Both 2022 and 2023 were strong trading years for McBookie, and the operator expects the Euros to play a big role in continuing this into 2024. Significantly, in 2022 the brand achieved a turnover of £45m, up 22% on corresponding year results of £36.6m. “I would be very disappointed if we didn’t break all records during the tournament so that should tee us up nicely for a good 2024,” Petrie said. “Obviously if Scotland win the Euros we might have to issue a profit warning!” That expected performance and upsurge in activity will involve a lot of preparation for the trading team, but Petrie is confident they have the skills to handle it. “We have the experience from previous major tournaments so there won’t be too much difference in what we are doing,” he said, as well as noting that the games are spread over a period of time which makes the task more manageable. “If we have any specials markets based around the games, the trading team will just need to be on the ball and make sure they don’t get out of hand.”

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Obviously if Scotland win the Euros we might have to issue a profit warning!

The huge interest in major football tournaments is a real benefit for smaller operators in terms of customer acquisition, with much of the awareness built for them by newspaper and television coverage of the action. However, after the experience of opening a record number of accounts during Scotland’s participation in Euro 2020, Petrie acknowledged that the hard work comes in trying to retain those customers and that it is something McBookie “definitely needs to improve on”. He said: “However, there are a lot of markets we offer that no other bookmaker does so that makes us appealing to the new customers that open during the tournament.

“We also have lots of offers around Scottish sport that separates us from the other brands, which means any punter in Scotland should want to have an account with us.” Looking further ahead, with the right marketing and business strategies, perhaps the impact of Euro 2024 can be somewhat replicated at the 2025 Women’s Euros. On this, Petrie concluded: “Scotland have only qualified for one major tournament in women’s football, so much will depend on whether we manage to make the 2025 version. If we do then there will certainly be interest and we will look at possible ideas. If Scotland don’t qualify then I would be very surprised if we used the competition as a marketing vehicle.”

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PUNTERS GO TO THE POLLS As campaigners prepare for a busy 2024 on both sides of the Atlantic, bookmakers can look forward to the biggest ever year for political betting.

SPORTS BETTING

Words by TED ORME-CLAYE

ith a US election set in stone and a UK election highly likely, 2024 is set to be the ”largest year in history for political betting”, Smarkets’ Lead Politics Analyst, Patrick Flynn, tells SBC Leaders. This is not the first time political developments have caught bettors’ attention, however, with the 2020 US election having proved a standout event. So with more electoral campaigning taking place this year, what can bookmakers expect? And how can they replicate the successes of previous years? “Political trading has gone from a niche interest to a rapidly-growing part of the industry in the last 10 years, with the EU referendum being the first major signpost of its potential,” Flynn begins. “Even without any marketing campaigns, we would expect the 2024 presidential election to be even larger than 2020 through sheer momentum, but of course at Smarkets we will be producing a lot of content and analysis in the run-up. “I think a lot of companies are missing a trick in not covering political markets in much depth, but at Smarkets we’ll be proud to lead the industry in the right direction.” It seems then that the markets may well drive themselves in 2024. Casting an eye back on 2020, Flynn observes that the US presidential election was not just the biggest political betting event ever, it was “likely the largest single betting market in history”. Over £1bn was traded worldwide on betting exchanges alone, meaning the figure was likely even more when bets placed with regular bookmakers are counted. Although voter turnout is often lower than politicians may like, it is undeniable that elections always grip the national interest - it is unsurprising then, that they also grab bettors’ interest. Driving bettor attention may not be the main concern for bookmakers and exchanges, but Flynn notes that there is one area that operators should prepare for. That is of course trading, which requires “clear understanding of the news and keeping up with the latest developments”.

Instead of relying on partisan talking heads giving their thoughts, people would often be better informed by looking at the wisdom of the crowd in the markets.

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“What sudden changes can show, though, is how important political markets can be as a live information source,” he continues. “A major moment in a campaign like a debate, policy announcement or candidate declaration can take days to show up in the opinion polls, but betting markets react instantly, with traders speculating on the likely impact an event will have on the election. “Instead of relying on partisan talking heads giving their thoughts, people would often be better informed by looking at the wisdom of the crowd in the markets.” The biggest question on many readers’ minds, however, is not how bookmakers and exchanges should prepare for the elections, but rather who the exchanges indicate will win the votes.

In the highlypolarised world of US politics, these very tight betting markets are probably the new normal, so I suspect the market will remain fairly close up to election day.

Looking at the UK first, Flynn although noting that he may “eat my words” - does not see “any other outcome” than a Labour victory after more than 13 years of Conservative-led government. “The ‘time for change’ feeling is pervasive and Labour’s poll lead at this stage points towards one thing only,” he says. “I don’t envision a scenario in which the Conservatives overtake Labour in the markets between now and election day.” This may not come as much of a surprise if recent polls are to be believed. Also, the Party has been regaining ground in its traditional stronghold of Scotland. However, Flynn reflects that in terms of betting behaviour, the Scottish rebound is “probably not the main reason for people backing Labour, but it certainly could be the difference between a hung parliament and a Labour majority”. It is important to note that Labour and Conservatives are not the only parties in the UK. In Scotland, Labour will have to compete against the SNP, whilst in England

both parties will face off against the Liberal Democrats and Greens, and Plaid Cymru in Wales. Some bettors love an outsider, but in the case of political betting in 2024, Flynn’s view is that this will “probably not” be the case, although whether or not the Green Party can win a second seat in parliament is “an interesting question”. He explains: “The UK’s first-pastthe-post system makes it very difficult for third parties to win seats in any significant number, so I think the main markets are unlikely to be moved by the smaller parties.” Meanwhile, it is not just the case that Labour and Conservative aren’t the only parties - the UK General Election is also not the only major vote taking place in the country in 2024. London’s mayoral election is also scheduled to take place, and the situation has been shaken up somewhat by the surprise announcement that former Labour leader Jeremy Corbyn - who led the unsuccessful General Election campaigns in 2017 and 2019 - may join the race to run the capital. Surprising as it may be, and the left-wing candidate has traded as high as 10% on Smarkets, Flynn notes, his chances of unseating incumbent Sadiq Khan are slim, and this will probably be reflected in betting trends. “While Corbyn is probably enjoying the publicity that comes out of the speculation, in all honesty I think it’s very unlikely that he gets into this race and challenges an incumbent Labour mayor,” Flynn continues. “Instead, he will be hoping to hold onto his seat of Islington North at the next election, where I think it’s pretty likely he will stand as an independent after the Labour Party blocked him from being the party’s candidate.

SPORTS BETTING

That particular seat will be one of the most interesting markets for the General Election.”

the new normal, so I suspect the market will remain fairly close up to election day.

Moving across the Atlantic, the US election poses a “more interesting” betting market than the UK, in Flynn’s view. All research suggests a rematch between 2020 contenders Joe Biden and Donald Trump, although Smakrets have seen some movement on Gavin Newsom.

“Given the betting market bias towards Trump and candidates of that ilk over recent years, alongside the constant speculation that Biden will be replaced as the Democratic candidate, I suspect if we end up with a Trump/Biden rematch that Trump would spend much of the campaign as the narrow favourite - in the markets, at least.”

California’s Governor has so far made no indication that he wishes to join the presidential race, but bettors seem to think he will be the likely candidate to replace Biden if the current President withdraws amid opinion polls suggesting confidence in his leadership is falling.

If there’s one conclusion that can be made about political betting markets from SBC Leaders’ conversation with Flynn, it is that they are always “bullish”, as he puts it. While operators may not have to work too hard to engage customers on these markets, trading can change rapidly.

“The Republicans are marginal favourites to take back the White House right now, with Donald Trump the individual favourite to win the election,” Flynn summarises on US political markets. “In the highly-polarised world of US politics, these very tight betting markets are probably

Flynn concludes: “There’s definitely something to be said for the relationship between an individual’s level of conspiratorial thinking and their ability or lack thereof - to correctly assess the world around them in the political betting markets!”

SPORTS BETTING

RACING REVAMP FIRMLY ON THE RIGHT TRACK

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Efforts to increase the appeal of the horse racing betting product offering have ramped up over the past year. STEPHEN DAVISON, Head of Operations at Pythia Sports, says there is plenty more innovation on the cards.

SPORTS BETTING

acing has always had something of an advantage over other sports thanks to its almost continuous operation. At any time of day, chances are there’s a horse racing event taking place somewhere in the world, so there’s always something for punters to bet on. It is therefore not surprising it’s the second most important product for UK bookmakers, accounting for 32% of GGY of the remote betting market. Only football scores higher, at 47%. At the same time, it’s fair to say that historically it has lagged behind other sports when it comes to betting product innovation. Back in September 2022, racing industry leaders identified a need for “serious and radical” changes in British racing, listing working with the betting industry as one area of focus. On this front, there were some positive developments last year that we see as standing the horse racing industry in good stead, and there are more on this year’s roadmap as well. We were fortunate to be involved in a number of these developments, most notably the introduction of an in-play betting feed for races run at Racecourse Media Group (RMG) racetracks. Via a partnership with RMG and Coursetrack, we now provide in-play pricing for BetVictor, William Hill and Ladbrokes, with more bookmakers expected to go live with the product in the near future.

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already know for sure is that it has led to better margins for operators. The latest Gambling Commission figures, for the period April 2022 to March 2023, suggest the average margin for remote horse racing betting is 8%, but we’ve consistently seen in-play deliver double-digit margins for our clients across 2023.

Getting the project off the ground took the best part of 18 months and involved a number of complexities. First, Coursetrack places GPS trackers on horses, which transmit their coordinates 20 times per second. We then ingest that data and using our specially created pricing model and utilising RMG’s ultra-low latency streams (c. 400 milliseconds), we’re now able to provide accurate pricing updates throughout the race, adding significant excitement for bettors.

In the context of a market where racecourse fees are increasing, the cost of acquiring players is high and affordability checks are looming, the margin is all-important to bookmakers today.

It’s true that a few of the biggest names in British betting were already offering in-play betting on racing using different methods. But the majority of operators were not, putting racing at something of a disadvantage to other sports.

At present, our in-play pricing is win-only. But we have ambitions to take things further in future, with an eye on markets that are perhaps not as traditional as other derivative markets. We’d love to develop markets such as fastest finishing time, fastest closing sectional, leading at the furlong pole and leading at every different furlong pole.

One only has to look at a Gambling Commission survey carried out in 2020 to see just how popular in-play betting is among British punters. That survey found that 60% of bettors had bet in-play in the previous four weeks.

INNOVATION ACROSS THE BOARD

WIDENING THE PLAYER BASE

It’s not just online where efforts have been made to enhance the betting product. We were also involved in a project to modernise self-service betting terminals (SSBTs) last year.

The UKGC also found it was significantly more popular with younger players, with 77% of those aged 18-24 having bet in-play in the past four weeks, compared with 46% of 55-64-year-olds and 23% of those aged 65+. We know racing has traditionally struggled to attract younger players and the expansion of in-play betting can only be a good thing in terms of helping turn this around.

Another RMG-led initiative, we worked with a number of partners to create new derivative markets for SSBT users. These included head-tohead, betting without the favourite, odd vs. even, place only betting, fancied horses vs. the field, not to win and odd/even to place.

When it launched, RMG said it believed in-play had the potential to improve racing turnover by 5% and while it may be too soon to say whether this will prove true, the early signs are certainly encouraging. And one thing we

There was clearly an appetite for these new markets as within a few months of launch, they were taking more than 5% of turnover on SSBTs and as this percentage is steadily increasing, we expect it could reach double digits soon.

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While currently the vast majority of racing turnover is on win or each way bets, at Pythia Sports we’re seeing an increase in interest in derivative markets.

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There’s further potential for simplified offerings that cater to timepoor bettors.

We believe there’s further potential for simplified offerings that cater to time-poor bettors who may not be inclined to study form guides in the same way racing punters did in the past. We’ve designed markets such as whether the winner will be odd or even, whether they will be under or over a certain racecard number and whether they will be red or black in a colour-coded racecard. If bookmakers combined these markets with clever UX, for example, gamified racecards, we think there’s a lot of opportunity there, especially when it comes to attracting new audiences. We also think a Bet Builder would be of huge appeal; while there are Bet Builders available for racing in Australia, these have never been offered in the UK. Building one is on our roadmap for this year as we predict this would have strong crossover appeal for bettors familiar with them from other sports. Industry leaders may have been right to identify a need for more innovation in racing, but on the betting front at least, this work is well under way.

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CASINO

JOE STREETER COLUMN

SLOTS INNOVATION MUST TAKE CENTRE STAGE IN 2024 Creativity and input from stakeholders across the industry is the secret to driving success with new slots, writes CasinoBeats Editor JOE STREETER.

n what is becoming an increasingly competitive space, the desire for innovation within slots will be integral in the year ahead. At the heart of market growth and elevated player engagement, it’s vital that new mechanics continue to take centre stage, building on industry trends that came to the fore in 2023. What we have seen within new mechanics is the expansion of line wins and enhancing the way players can capitalise on base game wins. Cross-collaboration with streamers, who have provided a very different input to the evolution of the industry, has been a key factor in the growth of slots and increase in unique gameplay. Streamers unearth a whole box of secrets when it comes to the insight into slots and what forms a positive experience. The industry’s key streamers have engaged with the full plethora of suppliers, volatilities and themes. They also have interaction with a wide array of other players and subsequently bring an unrivalled perspective on what leads to a strong gaming experience. What streamers have brought to the production side of the game is a true understanding of all aspects

of the game and the elements that make slots engaging.

and metric and continued to be embraced by players.

The distribution of aggregators and suppliers combined with the knowledge of streamers has provided a perfect recipe for revolutionary games, including the multiplayer element of slots, which have started to thrive.

All things considered though, what dictates whether a game is made into a sequel is simply how successful its initial launch is. James Ross, also speaking on iGamingDaily, emphasised his belief that the ‘comfortability factor’ plays a role in the desire to expand titles into franchises.

It largely comes down to the limitations of data, which provides a ceiling for insight and innovation that is significantly raised when it’s intertwined with the perspective of affiliates, who are constantly utilising feedback from their audience. Looking ahead, the growth of FruitySlots can be a key indicator for the success of cross collaboration in 2024. Further expanding the potential of slot launches this year has been the prosperity of sequels. In a recent episode of the iGamingDaily podcast, Danny Lee of SlotBeats emphasised that, whilst the challenge is making a success of the initial slot, any game has the potential to become a franchise and have a follow up sequel. Integral to transforming an engaging title into a successful franchise is leveraging of a tried and tested mechanic. It is something that has been seen with fishing games, which have built on a very similar theme

He pinpointed the success of Money Train as one game that built a core audience and enabled the supplier to retain those players for its sequel slots, which is all driven by the success of the initial release. Money Train 4 is an anomaly in the slots space though, with games spinning off into myriad sequels being a real rarity for the industry. What has been integral in the building of a series is that the changes and evolutions to a game are subtle yet have an impact on the overall experience. Furthermore, there is also a temptation to push the boundaries of what is socially acceptable when it comes to slots and themes surrounding them. That being said, when looking to be edgy, especially when releasing to a global market, reading the room and understanding global culture is pivotal to avoid touching points that are currently sensitive.

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FROM DECKS TO DEPOSITS From club DJ to “borderline argumentative” affiliate marketing entrepreneur to mastermind behind the success of MrQ, SAVVAS FELLAS has enjoyed an unusual path to the top.

to DEALERS Words by CONOR PORTER

indar Media and MrQ are wellknown names within the UK iGaming industry, and the person behind that success is CEO & Founder Savvas Fellas. Before founding Lindar in 2008, Fellas had several different roles across affiliate marketing and advertising, but he was also a DJ for Ministry of Sound. “Through a very strange sequence of events, I ended up DJing for Hedkandi for just short of two years, which was owned by Jazz FM and then got taken over by Ministry of Sound,” he said. “So technically, I was DJing for Ministry of Sound, which was pretty good. I got to

travel quite a bit. I got to DJ quite a lot, but it does feel like a different life though.” While still DJing, Fellas learned about affiliate marketing and advertising at Visit Britain and Profero. He decided to explore setting up a website at the latter after one of his bosses said affiliate marketing could take off. He built a website in Adobe Dreamweaver, but at the time, it was only a side project. While at MediaCom, he decided to “dial it up” and create Lindar Media, which has grown to become a successful affiliate, securing white labels and branching out into advertising, before launching online bingo brand MrQ in 2018.

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We have to remember that we are selling entertainment, so we need to give entertainment.

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We’re not after people who are looking for life-changing wins. We’re looking for people who want a valuable entertainment experience.

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Fellas noted that certain personality traits are needed to be successful in the affiliate space, but everyone’s journey will be different. “I think if you have a personality that is kind of impulsive, determined, resilient, gritty, if you have those qualities, then you’ll just see it through no matter what, you’ll find a way. “Curious, challenging the status quo, understanding the importance of product, wanting to challenge everything and everyone, borderline argumentative - I think those things in my story were fundamental.” MrQ has since expanded into online casino, which Fellas says was a consequence of levelling up the product, providing a “value entertainment experience”, pushing a “brand identity of you win some, you lose some”, and making sure the message is “strongly held”. “We’re not after people who are looking for life-changing wins. We’re looking for people who want a valuable entertainment experience and won’t begrudge the loss of £10 because I guarantee, everyone who comes to MrQ, you’re going to lose. “You might win, and if you do win, great. If you do lose, I hope you had a great experience. I hope it was value entertainment.” Fellas continued: “We have to remember that we are selling entertainment, so we need to give entertainment. We have challenges in this industry around entertainment. RTPs are being lowered, which is basically diminishing the value of the entertainment. “The regulator needs to understand the pains and pressures that operators face because of that regulatory landscape. We’re still in a constant cycle of defining that brand and who we are and the space that we’re in, but mainly because the space around us is changing.” In September 2023, Lindar was issued a regulatory action by the UK Gambling Commission and ordered to pay £690,947 for social responsibility and AML failures. The commission noted that Lindar took “proactive steps” to rectify these failures. Fellas said that MrQ’s mission statement of “to offer value entertainment with

delight and transparency” led to the UKGC’s “proactive steps” assessment, and explained that the failures occurred after a “very small group of players” had a “high velocity of losses” predominantly on live dealer games. “Even if you reduce your max chip size to just 50p, the stake at the round can still go up to £2,000, so you could still place £2,000 worth of a single bet on a round with 50p chips.” A proactive step MrQ took was to reduce the single round bet size to £500, which was taken “well ahead of even knowing that the Commission was coming for the assessment”. The action came as the UK gambling landscape continued its process of change. UKGC and DCMS consultations were being held in response to proposals in the government’s white paper, in order to give the industry a voice on the future of legislation. Fellas said he is “optimistic” that, whatever final legislation occurs, there will be “an opportunity to get it right, and insisted that businesses must “calibrate” to any changes. “You have to make sure that your processes aren’t too rigid, and your platform and the way in which you manage players is also pretty agile. The teams are agile, the teams are ready to move. For the most part, I’m just doing that. I’m just making sure that we’re ready for whatever comes our way.” However, the CEO added that care must be taken to not drive players to illegal operators “who have no moral compass”. Looking ahead to 2024, Fellas noted that he, Lindar and MrQ will “continue to cultivate” the values the business was built on and “see how much more impact we can have in the regulated space in the UK”. He also revealed plans to “grow out a little bit as one single brand in multiple markets” and release new instant/crashstyle games from its online casino studio Goosicorn sometime in Q2. As for DJing, Fellas might take it up again but only in the privacy of his own home. “I’m quite curious to see what it’d be like to stand up in the comfort of my own home for two hours, playing music. That would be quite interesting.”

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‘ ENORMOUS EVOLUTION ’ in Portugal 48

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The Portuguese betting and gaming market has enjoyed healthy growth since regulation in 2015 and AMÉRICO LOUREIRO, Director of Solverde Casinos & Hotels, believes the presence of SBC Summit 2024 in Lisbon can contribute to further expansion.

n undeniably momentous part of the last year at SBC was the decision to move its flagship event, SBC Summit Barcelona, to a destination that was bigger, and better, to coincide with its expansion. Now, armed with a new, streamlined name, SBC Summit 2024 is set to take place in Lisbon, Portugal, to accommodate an expected 25,000 delegates. With SBC’s sights set on Portugal, we wanted to take a deep dive into the country’s blossoming gambling industry to find out what delegates can expect from the new location. For this, we sat down with Américo Loureiro, Director of Solverde Casinos & Hotels, to find out how Portuguese iGaming is progressing, what makes its players tick and how the Summit could impact its growth.

Words by DANNY LEE

To kick us off, Lourerio described recent activities within Portugal’s online casino industry as a “rapid evolution”, witnessing “high growth rates” since regulation in 2015, including an increase of 29 per cent in this last year when compared to 2022. “I have always believed in the potential of this country,” he declared. “What we saw shortly after the start of regulation was a migration of players from the unregulated market to the regulated market, as they were looking for a safer entertainment option.”

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Loureiro explained that the launch of Portugal’s regulated iGaming space also drew in players with no previous affinity to gambling, while suggesting that the nation’s online casino market has come a very long way since those days eight years ago.

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We are pleased to see growing interest in the Portuguese market and an increasing number of new suppliers.

“When we started operations in 2017, we faced enormous difficulty in attracting game providers to the Portuguese regulated market, as they said the market was small and adapting games to regulation was a complex task that, according to providers, did not justify the investment. “However, today the scenario is very different and we are pleased to see growing interest in the market and an increasing number of new suppliers.” Commenting on the legislator’s decision to follow the majority of European countries’ “mature approach” to online regulation, while taking a more relaxed approach to advertising laws, Loureiro cited a need for laws to be “reasonable” in order to soften the blow of illegal gambling. He said: “In Portugal, regulation generally followed European practice, although with greater French and Spanish influence. On the other hand, regulations regarding gambling advertising do not align with the European trend. “The legislator’s option was not to completely prohibit gambling advertising, but rather to allow it within certain limits and in a balanced way, which seems reasonable to me, given that any prohibition applied to the regulated market will only benefit the illegal market.” Looking into sports betting, Portugal is certainly a nation with a love for several different sports, and this is often reflected in the country’s wagering activity.

Loureiro suggested that the regulation of iGaming evolved Portuguese wagering, separating players from Portugal’s existing “monopoly regime” of illicit sports betting to present “new possibilities and new betting markets”, leading to “a great interest in the product” that he believes now shares an equal portion of the market with slots. Touching on regulation once more, Loureiro explained that “the interests of consumers and operators are aligned” when it comes to player safety and proper regulation. He continued: “The Portuguese regulated market is very safe for the player, as it provides a comprehensive set of consumer protection mechanisms. It is important to respect the freedom of players, but work can always be done to raise awareness regarding the harm of certain behaviours. “One of the means of raising awareness will be, for example, through the use of institutional advertising, which has an underlying educational and pedagogical intention. In fact, this is one of the reasons why I think that advertising in the gaming area should not be prohibited, but rather regulated.” As with any jurisdiction, Portugal’s regulatory landscape is less than perfect, and Loureiro believes its most necessary task is to combat the threat of the black market. “Unfortunately, despite its efforts, the national Regulator does not have sufficient mechanisms to combat illegal operators,” Loureiro said. “And this is where the greatest need for improvement lies. “As we know, these illegal operators do not implement any policy, nor do they have measures regarding responsible gambling, including underage gambling.”

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Regulations regarding gambling advertising do not align with the European trend.

Finally, Loureiro revealed his admiration for SBC’s decision to take its flagship event to Lisbon, suggesting that the move represents part of Portugal’s “enormous evolution” in the iGaming space. “SBC events continue to bring a breath of fresh air to the sector in general, being much more than a mere product exhibition fair in which only the largest companies can be present,” he enthused. “The SBC Summit is much more interesting, as it gives space to the entire industry, from start-ups to large companies, with conferences being a high point, considering the quality and reputation of the speakers, and the concern with innovation, without forgetting the

various moments of conviviality outside the fair space. I think that moving the event to Portugal will be a success, as everyone knows that the Portuguese are very welcoming, perhaps due to our historical experience resulting from our epic discoveries throughout the world. “Therefore, I hope that we are also prepared to welcome SBC Lisboa and welcome all participants in the best possible way. I am sure it will also be a memorable experience. “With the presence of, the gaming and betting market in Portugal will be able to benefit from greater international visibility, attracting companies and talents to work in our country, thus contributing to its growth.”

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MARKETING

JULIAN PITTS COLUMN

AFFILIATES ASCEND TO THE SUMMIT This September’s Affiliate Leaders Summit in Lisbon will put the affiliate community at the heart of the action during SBC’s largest ever event, writes JULIAN PITTS, SBC’s Senior Manager - Affiliate Relationships.

representatives from operator teams, mainly affiliate managers and marketing experts from all over the world.

blockbuster migration from Barcelona to Lisbon was simply an opportunity that was far too good to pass up, so this year the flagship SBC Summit is going to come complete with a whole wave of fresh dedicated opportunities for affiliates.

Don’t forget, the SBC Summit is our global event. As previously alluded to, there’s going to be a strong focus on Europe and the Americas, especially markets like Brazil, given the latest news, but also Latin America in general, and, of course, our host country, Portugal.

Across two days (Wednesday 25 and Thursday 26 September 2024) thousands of leading operators, affiliates and marketing experts will descend on the bespoke Affiliate Leaders Summit, which will occupy a space of some 10,000 square metres.

For those of you concerned about what this means for the tickets - there’s really no need to worry. A ticket to the Affiliate Leaders Summit also gets you into the main SBC Summit, as well as our esports event happening at the same time - ESI Lisbon. As always, all you need to do is either reach out to me directly or apply for an affiliate pass through our website.

A strong Latin American contingent will be chief among those in attendance, where they will be joined by regional visitors that span a vast swathe of the globe, with a particular focus set to come from both Europe and North America.

Another thing worth mentioning is that, of course, in true SBC fashion, there are going to be plenty of learning opportunities for our affiliate delegates, with a conference track dedicated solely to all things affiliate marketing.

With one stage dedicated to affiliate marketing content, and one ticket offering access to all areas of the multi-faceted event, we are focused on delivering a can’t miss twoday experience. The mere fact that we’re organising this ‘separate’ event, focusing solely on affiliates as part of the SBC Summit, really shows the progress we’ve made towards our goal of growing the Affiliate Leaders community.

And in the evening, we’re also hosting our (by now) staple Affiliate Leaders VIP dinner and party, which has proven to be one of the best networking opportunities for those looking to meet the who’s who in the business. Seats are limited, so be sure to reach out to me if you don’t want to miss out on this.

We’ve now got the numbers to make it a reality on the affiliate side, and as our flagship event expands, it’s become clear that introducing some structure for affiliates to meet operators, and vice versa, will be a real game-changer.

The Affiliate Leaders Summit forms the centrepiece of a concerted effort to enhance the opportunities available to this section of the industry, a stance that I, alongside the wider SBC team, will endeavour to continue to develop and strengthen across the coming months and years. Watch this space!

When it comes to the Affiliate Leaders Summit, we’re expecting 5,000 people on the show floor - a mix of affiliates and

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BRINGING VEGAS TO THE UK Launching a new brand in the UK’s crowded betting and iGaming market poses a significant challenge to marketers, but it is one that SAM BEHAR, the UK Director of BetMGM, has relished.

Words by MARTYN ELLIOTT

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e believe we have shaken up the market with BetMGM UK. We believe we’re offering something uniquely different. We believe this is a significant launch. And we believe that this is what customers are looking for.”

“MGM as an entity has a significant presence on the Strip in Vegas and a long heritage building brick-and-mortar businesses, particularly in the US. A lot of people claim that they can be Vegas, but no one is as Vegas as we are,” said Behar.

That may sound like a bold claim, but it is one that Sam Behar, UK Director of BetMGM, feels entirely confident in making after orchestrating an eye-catching and successful launch strategy for the newest name on the British betting and gaming landscape.

It is not the brashness of Vegas that the BetMGM UK brand is built on though, but rather the high-level customer experience that the city’s luxurious casino resorts are famed for.

The BetMGM UK sportsbook and casino became MGM Resorts’ first wholly-owned digital international expansion project to go live in August last year, combining one of the gambling industry’s strongest brand names with the proven technology of LeoVegas.

“The uniqueness of this brand is that this is an entertainment-first proposition,” Behar continued. “First of all, it’s bringing a very unique name in MGM to the UK. Secondly, it is putting in place unique product positions, particularly the exclusive content that we have through our casino and live casino products.

A month later it launched a national media campaign dripping with Vegas glamour, complete with ads fronted by US superstar Chris Rock.

“At the same time, we are delivering what we call ‘golden offers’, pricing and a promotional calendar that is as big as anyone else in this market.

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In fact, if you look at how we traded last month, BetMGM was the best price bookmaker on Oddschecker.” STARS & STRIPES (AND SOCCER) The launch campaign was unashamedly American in tone, but not only to create a distinctive brand identity that sets it apart from the many rivals in the ultra-competitive UK market. Behar’s team took a data-driven approach to creativity and with the research showing high levels of recognition for the MGM name - despite the group not having a brick-and-mortar casino in the UK - decided to capitalise on that familiarity. “We believe that the sprinkle of stardust that’s added to this brand is the magic three letters at the end of our name,” he said. “We’ve been able to leverage the trust and heritage that MGM has built up over more than 30 years in hotel and casino resorts into a new iGaming proposition in the UK that has got off to a fantastic start.” The campaign featured a TV and social media ad that saw award-winning entertainer Rock piloting a gold speedboat from the fountains of the MGM’s Bellagio hotel and casino in Vegas to the River Thames in London. “It was very deliberate and well researched that we made reference to and significance of the fact that we are a US-heritage business that is landing in the UK,” explained Behar. He continued: “Whilst other brands in this space have hired ex-professional footballers, we’ve got a Hollywood A-lister. The campaign was important to us as our launch campaign, and it was important that we made a statement - and I don’t think there’s a bigger statement than a Hollywood A-lister!” That’s not to say that the brand is so imbued with American thinking that it does not appreciate the cultural significance of football in the UK. To reflect that, BetMGM has signed partnerships with five Premier League clubs that “match with our ambitions” - Manchester City, Newcastle United, Aston Villa, Brighton and Wolves. “We have made a commitment to wanting to establish ourselves as a trusted and serious player, specifically in sport and particularly in football. And there is no bigger or better league in terms of reach and commercial growth than the Premier League,” Behar concluded.

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For more information please visit sbcevents.com or scan the QR code

MARKETING

BIG BRANDS LEAD SEARCH FOR SUCCESS When it comes to generating traffic for UK sportsbook operators, nothing beats a well-known brand name, an analysis of search data by major international affiliate LEADSTAR MEDIA indicates. Words by MARTYN ELLIOTT

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he building of a strong and recognisable brand is an important part of a marketer’s playbook in many B2C sectors, but in one as competitive as the UK online sports betting market, it is a prerequisite for success. With so many licensed sportsbooks to choose from, the battle for player acquisition is fierce. Introductory offers, imaginative specials markets on major events and attractive odds all help, but nothing is as effective in earning that first click as a wellknown brand name.

An analysis of search data from British punters between October 2022 and October 2023 conducted by Leadstar Media, the international affiliate that runs the UK-facing BookiesBonuses.com comparison and review site, makes that point very clearly. The results of its study tell a compelling story about the role of brand and indicate how difficult it can be for the smaller players to compete against the operators with the large and well-targeted advertising budgets.

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THE BIG 5 There were no surprises in the top five sportsbooks with the highest brand name search volumes in Leadstar’s research - bet365, Sky Bet, Ladbrokes, Coral and Betfred. Leading the way with an average 6.61 million searches a month was bet365; a fact that probably won’t come as a surprise to viewers of UK sports channels, where it advertises extensively, particularly around major football matches. Those ads are accompanied by horse racing, boxing and greyhound racing sponsorships to give the brand huge visibility at exactly the times fans are considering placing a bet. It also has a substantial online content operation and high-profile promotions - such as the popular 2 Goals Ahead Early Payout offer - to drive further interest and clicks, whether direct or via affiliates. Sky Bet sat comfortably in second place, with an average of 4.05 million brand searches a month. As with bet365, it is difficult for British sports fans to escape the Sky Bet brand.

The list (see graph for details) included some brands very active in the sports sponsorship space, such as BetVictor and Betway, along with a number that have among the best introductory free bet offers on the market.

Television ads, podcast partnerships and sponsorship of events such as the Ebor Festival all contribute towards its profile, but the jewel in its promotional crown is the name sponsorship of the EFL, which puts the brand in front of the fans of 72 football clubs every week of the season.

Interestingly, a number of newer names have already made an impression on UK punters. BetMGM’s brand search volume in October 2023 was the 12th highest for a British operator, despite the US-owned sportsbook only being live in the UK for a few weeks at that point.

Entain’s Ladbrokes and Coral brands were third and fourth, generating a monthly average of 2.8 million and 2.14 million brand searches respectively.

The largest gains over the period came from 2021 launches Rhino Bet (308%), CopyBet (175%) and Fafabet (123%), but all remain some way off household name status.

Fifth place was occupied by Betfred, as the Super League and St Leger sponsor achieved an average monthly search volume of 1.55 million. While the top four maintained their level across the period, the number of searches for Betfred in October 2023 was 25% higher than in the corresponding month in 2022.

As part of the project, the Leadstar team also analysed data for general search terms related to sports betting over the same period.

THE RISING STARS

What they discovered may provide some hints about optimisation, as keyword phrases such as ‘betting sites’, ‘UK betting sites’ and ‘betting offers’ all had much lower volumes than the tier 1 and tier 2 brand names and showed no growth over the course of the year.

Betfred was far from the only operator to see its search volumes rise during the period analysed. Of the brands examined, those occupying places six to 15 on the list all saw interest from UK punters increase by at least 22%.

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Words by JOE STREETER

SHOWCASING THE COMMERCIAL SIDE OF SPORT One of the freshest transfers to SBC’s podcast portfolio is Behind the Badge, which provides a unique insight into the commercial side of sport.

eaturing George Harborne, Director of SBC Sponsorship and guests from sports teams and leagues, the new series has already delivered some fascinating perspectives from a diverse range of sporting backgrounds. Here we run down some of the key takeaways from the early episodes. LA LIGA FUELLING FAN ENGAGEMENT IN LATIN AMERICA Fuelled by the success and star power of Diego Lainez and Andres Guardado, Real Betis has confirmed Mexico as a key market for fan engagement and commercial opportunity. Real Betis Head of Sponsorship, Pablo Arquero Fernández, spoke about how the club’s fan engagement expansion in the region has been bolstered by the wider ambitions of La Liga to grow its supporter base in Latin America.

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La Liga is a strong ecosystem of clubs - that we are part of, so having the league promoting itself and the rest of the clubs all over the world has been super beneficial.

George Harborne Director of SBC Sponsorships

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SBC LEADERS ISSUE 29 “It has been five years since La Liga commenced with its internationalisation, with delegates all over the world. La Liga is a strong ecosystem of clubs - that we are part of, so having the league promoting itself and the rest of the clubs all over the world has been super beneficial. “Obviously, there are some challenges, given that La Liga is run by itself and then each club has its own interests as a brand, commercially and in terms of growth, it’s about collaborating in that space. Since 2021 a lot of clubs have had access to an advanced investment that has helped them over the last season to grow beyond expectation in Latin America. “All in all, the investment has helped us to grow rapidly, but there have been challenges in between and we have to collaborate with La Liga to overcome these.” One of the key challenges that comes with this is ensuring that fans remember and resonate with Real Betis as a club, rather than La Liga as a competition. Fernández emphasised that

the players have a key role in this, enabling the club to “link to communities and engage with territories”, nonetheless, he added that it is also down to the values of the club and positioning themselves closely with fans. THE UNRIVALLED COMMERCIAL CEILING OF THE PREMIER LEAGUE In a fascinating discussion, Bunrley FC’s Head of Commercial, Marcus Mellor revealed just how significant the transition has been for the club under the tenure of manager Vincent Kompany and since their return to the top tier of English football in 2023. Mellor revealed that the commercial opportunities as a Premier League outfit are monumentally enhanced as opposed to being a second tier club. What plays a key role in fuelling the possibilities is the ability to globalise collaborations, with Mellor revealing that the Clarets had to take a whole new approach to partnerships and securing sponsorships.

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This is largely down to the viewership of the Premier League and how many fans across the globe engage with the league. Mellor told the show: “Put simply, the number of eyeballs that are on the Premier League far exceed those that are on the Championship, so in terms of the conversations we are having with potential partners, they become a lot more global. “Conversations in the Championship are very much more of a national place, whereas in the Premier League it becomes a lot more of a global entity and a global sell. That is probably the biggest change, alongside the value of deals, which obviously increases in the Premier League.” What is vital for the Clarets, according to Mellor, is tapping into the full range of tools available to Burnley in order ensure they maximise their commercial ceiling as a brand marketing platform. Key to this is the usage of data and measuring optics, something that the club has built upon significantly in recent years. He told the podcast that whilst they are not reinventing the wheel on this front, the club’s evolution in terms of data usage is vital for their progression. “Historically we probably haven’t been as savvy as we could have been with data - particularly when we look at ourselves as a commercial proposition. “An example is our relationship with TikTok, it really gave us a USP in terms of our women’s proposition. We have really looked into a couple of platforms that will be utilised and to understand the true value of our assets and the impressions we deliver on a variety of our assets, both online and physical in-stadia.”

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Conversations in the Championship are very much more of a national place, whereas in the Premier League it becomes a lot more of a global entity.

He added that this allows the club to truly and correctly value their assets and propositions, giving them confidence when they are in the market. It also gives them strengthened leverage to report back to partners when it comes to how they have been delivering results for brands. Mellor was full of praise for the club’s relationship with TikTok and how they have used it to drive interest in the women’s team, which has come on immensely in recent times. The club has utilised the social media site to provide a unique insight into the women’s side. The difference in strategy and approach to commercialisation of the women’s game, driven by the success of England’s Lionesses, is something that we are witnessing before our very eyes, explained Mellor, who revealed that it is a continued focus at Turf Moor as club holds long-term ambitions of making it to the Women’s Super League. Behind the Badge is released every other week on Spotify, YouTube and anywhere you get your podcasts. The show places a focus on unearthing some of the key commercial developments and dynamics from a full range of sports organisations, clubs and leagues.

Scan QR code for channel

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PAYMENTS

TED ORME-CLAYE COLUMN

NAVIGATING the open road on AFFORDABILITY The British betting sector would be wise to keep a close eye on developments in the payments and fintech space, writes Payment Expert Editor Ted Orme-Claye.

ith the gambling industry going through its own period of regulatory change alongside growth, payments are too. To start, the Future of Payments Review made several recommendations to the government on Open Banking adoption. As a product in which smooth payments processes are at the heart of the customer journey, betting operators - particularly those in the online space should stay tuned to these developments, particularly in the context of the 2005 Gambling Act review. Affordability checks, or finance risk checks as DCMS’ White Paper has branded the measures, are one of the flagship recommendations of the review and have a significant implication on the payments journey. Ensuring this measure is adopted in line with regulatory requirements, but without interfering with the customer experience during a transaction, will be the key challenge for operators moving forward. As Kindred’s Head of Corporate Affairs UK/Global, Tom Banks, put it to SBC: “We have to make sure that the customer experience is paramount on

this and that’s where the frictionless thing comes in.” Central to the government’s plans for affordability checks is Open Banking. In fact, Open Banking plays one of the most crucial functions in carrying out an affordability check. The UK Gambling Commission has proposed that customers will be requested to allow limited data sharing with thirdparty Open Banking providers in cases where credit reference checks are needed to determine if a bettor is financially secure enough to bet. However, this technology which is apparently central to the notion of affordability checks is, according to the Future of Payments Review, not up to standard in the UK. Chaired by former Nationwide CEO Joe Garner, the review asserted that there is an “urgent gap” in the UK’s Open Banking landscape regarding consumer protection, which was described as “fragmented, complex and variable”. With Open Banking playing a key role in the betting industry’s own forthcoming regulatory consumer protection requirements, bookmakers really should watch this space and monitor the technology’s evolution.

Open Banking was not the only fintech on display last year though. Despite some hits to the market like the FTX collapse, blockchain and cryptocurrency remain an ever-present force in global payments. Crypto betting in the UK is not regulated by the Gambling Commission or backed by legislation, but financial authorities have been increasingly alert to, perhaps even warming to, the wider crypto market. November 2023 saw the FCA take an important step for UK blockchain regulation when it approved tokenisation for funds, enabling easier transitions of digital money and more cooperation between businesses using blockchain technology. Whilst crypto betting itself may not be on the table yet for operators, blockchain technology can still offer some potential for the KYC and payments process. Some of the UK’s largest operators, such as Entain, have highlighted probing the possible benefits of blockchain technology. Companies with interests in the space should keep their eyes firmly fixed on how UK authorities continue to engage with it.

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How Brazil’s crypto carnival was paved with clear regulations

PAYMENTS

Mass adoption of digital currencies by the Brazilian population is a very real possibility, VINICIUS BAZAN, Head of Crypto Research for Empiricus, tells SBC Leaders.

Words by CALLUM WILLIAMS

o country in South America has waved the crypto flag quite like Brazil over the past several years.

While the crypto sector has endured some major hardships in the form of bankruptcies and collapses - FTX, Voyager, etc - enthusiasm from Brazilians for digital currency has not wavered and the results bear fruit. The Chainalysis 2023 Global Crypto Adoption Index sees Brazil sit 9th in the overall ranking, 9th for centralised service value, and 15th for person-toperson (P2P) exchange. Furthermore, Roberto de Oliveira Campos Neto, Governor of Banco Central do Brasil, used an appearance in front of the Finance and Taxation Commission in September 2023 to outline the growth of the country’s crypto sector. He revealed that Brazil’s crypto imports had risen by 44.2% from 2022, while the total amount of digital asset reserves equalled R$35.9bn ($7.4bn). But the real reason Campos Neto was speaking in Parliament was to not only highlight the surge in crypto adoption amongst citizens, but to use this as a vehicle to tighten regulations of its digital asset sector. While many countries have tussled over the logistics of regulating crypto, Brazil has been one of few to implement an efficient and natural roadmap in regulating a highly volatile and nuanced market.

The oversight legislation is a big step forward for the country in terms of regulation.

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“I do think that the oversight legislation is a big step forward for the country in terms of regulation,” stated Vinicius Bazan, Head of Crypto Research for Empiricus. In late 2022, outgoing Brazilian President Jair Bolsanaro passed legislation on the official regulatory oversight of crypto and digital assets in the country, handing jurisdiction to Banco Central do Brasil and the Securities and Exchange Commission (CVM).

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Tokenization of assets will become more feasible and this integration will be beneficial for the financial system.

While acknowledging the work both entities have done in providing a “prosperous and open environment” for crypto to flourish, Bazan believes the rise in crypto adoption does not solely lie on the shoulders of the government. “(It is) not entirely a consequence of Lula’s work since it is an idea that has been developing for a while,” Bazan said. “The fact that crypto adoption is surging in Brazil is mainly a consequence of the development of private companies in the space, as well as the fact that the Brazilian institutions, such as the Central Bank and the local SEC, are very proactive in creating a prosperous and open environment for cryptoassets.” So who are the key players in the emerging crypto market? Nubank, which has launched its own crypto division, has been offering crypto services for the last several years, even entering into a partnership with Circle to provide the latter’s USDC stablecoin to its Brazilian customer base. The country has also seen a large wave of high-profile crypto companies and exchanges enter the Brazilian market, such as OKX, whilst Itaú Unibanco - one of Brazil’s largest banks - has provided a new crypto trading service to obtain, trade and sell tokens such as Bitcoin and ETH. Bazan believes these key players, as well as a maturing appetite from firms for new and innovative

methods, have whetted the appetite even further. He explained: “Brazil is an emergent market and even though we are not in the same situation as Argentina in terms of inflation and interest rates, we still have high rates. That being said, investors are more prone to seek alternative investment options and crypto is becoming more widely known. “Furthermore, many companies, such as exchanges and service providers, have matured in Brazil, being in the space since 2017 or before. Therefore we have a great range of good products and services that are available (and being used) by Brazilians.” But is there more room for innovation within a Brazilian market that has already shown that it is hungry for new alternative payment methods? Central Bank Digital Currencies (CBDCs) exploded into life in 2023, with a large majority of countries either researching or developing pilot projects for their own digital version of cash. The Bank of International Settlements’ (BIS) research last year revealed that 93% of the 86 surveyed central banks around the world stated that their CBDC work has entered advanced stages, with the research also detailing that up to 15 CBDCs could be in circulation by 2030. Despite this blockchain-based digital currency offering almost instantaneous transaction speed and significantly less burden on the central bank, fears have mounted over the last year about the ability of CBDCs to trace public transactions, with government maintenance being a key drawback. “I believe this innovative mindset helps the country create a good financial infrastructure. In terms of a CBDC, I believe that the main advantage is that we’ll have programmable money that can be better integrated into the economy,” said Bazan.

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“Besides that, tokenization of assets (such as the stock market) will become more feasible and this integration will be beneficial for the financial system. But I think there are also disadvantages such as the level of control that the government will have over people’s money. “It’s still to be seen but there is a chance that the government has more control with a CBDC than it has with the traditional fiat currency and depending on how that level of control is used, it can be harmful to one’s privacy and freedom.” So with a regulatory system in place and plans to tighten this further to not only protect customers but increase further

adoption, how long until we see crypto becoming a predominant form of payment? “I believe it is totally viable since our national payment system is very new and advanced in terms of technology so that the government does not have to deal with lots of legacy systems,” said Bazan, but he is hesitant on whether the government will provide the right parameters for newcomers. The effects of the FTX collapse in 2022 still linger and customer confidence will still be dented from billions upon billions of dollars of investor funds vanishing. But Bazan maintains that Brazil’s optimism for new payment

methods may open the door for future adoption of crypto payments and if any country in recent times has proven this, it is Brazil. “I believe that this will only happen if the government can create applications that have seamless UX. The average citizen doesn’t have to understand crypto to use it, such as we operate with the internet. “I believe that it can take a while for this level of application to be available to the whole population, but it is definitely viable, since we introduced the PIX payment system not so long ago and it is already the dominant form of payments in the country.”

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OKTO’s Founder and CEO, FILIPPOS ANTONOPOULOS sheds light on the dynamic evolution of the payments technology market within the gaming industry since the company’s inception in 2019.

he ever-evolving payments technology space is one of the key drivers of growth for the betting and gaming industry, requiring innovative suppliers capable of developing products suited for use in diverse markets. OKTO is one of the specialist suppliers to have made a splash with its technology in recent years. Here its CEO Filippos Antonopoulos tells us how his business has made such swift progress in the four years since its launch and what lies ahead for the company as it embraces transformative new technologies and continues its global expansion plans. WHAT CHANGES HAVE YOU SEEN IN THE PAYMENTS TECHNOLOGY MARKET FOR THE GAMING INDUSTRY SINCE OKTO WAS FOUNDED IN 2019? AND HOW HAVE YOU RESPONDED TO THEM? Since we kicked off OKTO in 2019, the world of payments in the gaming industry has been a rollercoaster of innovation. Quick paytech development has been the name of the game, and we’ve witnessed the emergence of some exciting new payment methods, including the digitisation of cash through cashless and cash-to-digital solutions, which happen to be our area of expertise. But that’s not all; we’ve seen the rise of embedded finance and the growing importance of APIs in our space.

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Quick paytech development has been the name of the game.

How have we responded to them? Well, imagine you’re a Brazilian operator, or an international operator operating in Brazil, and you’ve got the PIX payment method introduced by the Central Bank of Brazil or you want to add it. We didn’t just sit on our hands; we developed a paytech to support PIX for our partners in Brazil in the best possible way.

It’s not just about fancy features; it’s about operational excellence too. We’re talking KYC checks, 24/7 support, and an impressive 99% success rate for payins and outs. Plus, what matters for our partners is the ability to provide them with a single integration for our payment gateway across multiple regions.

And we went beyond that. We created usercentric solutions like PIX Direct & Pay n Play to streamline the payment experience even further by eliminating steps, making the overall experience extremely flawless.

In a nutshell, we’ve been quick to embrace these changes and adapt our offerings to cater to the demands of the markets we operate in or enter. We don’t just follow payment trends; we set them!

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The payments industry is in constant flux, and that’s a good thing.

PAYMENT PROVIDERS IN THE BETTING AND GAMING INDUSTRY FACE UNIQUE CHALLENGES DEALING WITH BOTH FINANCIAL AND GAMBLING REGULATORS. WHAT ARE THE BIGGEST REGULATORY CHALLENGES ON THE HORIZON? You’re absolutely right; it’s a tricky tightrope to walk. But here’s the thing - it’s not the same everywhere. In some regions, financial and gambling regulators are singing from the same hymn sheet, and it’s all straightforward. However, there are markets where it gets complicated. Take Europe, for instance. You’ve got the Payment Services Directive 2 (PSD2), which is a major regulatory framework that impacts on the payments sector, and it brings its own set of challenges, such as ensuring secure and compliant processes across the whole EU. And then we have the gambling side of things. Different countries have their own gaming and betting regulations and directives, and they can be a maze to navigate. It’s like having to juggle a handful of different rulebooks. So, the biggest regulatory challenges? Well, it varies by region, but the key is staying ahead of the game and being agile enough to respond to changes as they come.

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THE COUNTRIES WHERE OKTO OPERATES VARY GREATLY IN CASH USAGE TRENDS. HOW DO YOU DEVELOP EFFECTIVE PAYMENTS PRODUCTS FOR BOTH CASHLESS-HEAVY MARKETS LIKE THE UK AND CASH-RELIANT MARKETS SUCH AS ROMANIA? Ah, the cash enigma! It’s true; our playground spans countries with vastly different payment preferences. We believe it’s the perfect blend of deep localisation, gaming expertise, and fintech knowhow the OKTO teams have that can meet these demands. We bring together teams that understand the local nuances of each region we enter. This way, we can tailor our solutions to not only comply with gambling and payment regulations, but also to meet the unique demands of operators and consumers in those regions. Let’s take Italy as an example. We didn’t just jump on the PVR local trend; we engineered payments that make the payment journey via OKTO PVR seamless for consumers, and we operate payments that are effortless for operators. But it doesn’t stop there. We’ve got an impressive cashless offering too, and it’s in high demand in places like the UK. It’s all about versatility and adaptability. TRANSFORMATIVE TECHNOLOGIES LIKE AI AND BLOCKCHAIN ARE MAKING WAVES IN MANY INDUSTRIES. HOW HAVE THEY BEEN USED IN PAYMENTS, AND WHAT POTENTIAL DO THEY OFFER FOR IMPROVING USER AND MERCHANT EXPERIENCES?

Transformation is the name of the game. Our R&D team is hard at work, exploring these transformative technologies and more. AI has already made significant strides in payments. AI helps enhance fraud detection and streamline customer support as well as software development processes, making for a smoother experience all around. Have you ever imagined a world where AI-powered chatbots provide instant customer support, and ensure that your transactions are secure? That’s the kind of user and merchant experience we’re working towards. Blockchain, on the other hand, is tech we haven’t investigated yet. THE PAYMENTS SECTOR IS ALWAYS EVOLVING, WITH START-UPS CHALLENGING THE MAJOR PLAYERS. HOW DO YOU SEE THE NEXT FEW YEARS SHAPING UP FOR THE PAYMENTS INDUSTRY? The future is exciting! The payments industry is in constant flux, and that’s a good thing. The emergence of tech-driven start-ups keeps the big players on their toes, pushing everyone to up their game. When OKTO started we made those big conglomerates think again, and the secret for us is that while we are growing and scaling-up now, we are keeping the same passion we had as a start-up quite a few years ago. When it comes to the next few years, we see it as a period of rapid innovation. It’s about staying agile, embracing new

technologies, and responding swiftly to market trends. And you can bet OKTO will be right in the thick of it, leading the charge and setting new standards. WHAT’S NEXT FOR OKTO? CAN YOU GIVE OUR READERS A SNEAK PEEK INTO YOUR SHORT AND LONG-TERM PLANS? Absolutely! Our strategy is crystal clear. In the short term, we’re spreading our wings across the globe. We’re diving into Latin American regions, where our powerful paytech makes integration of our payment gateway across multiple markets a breeze. We’re entering the US and Canada with our Cashless Offering following the acquisition of Flexia, and Australia is next on the list. In addition, India is also on the horizon with our OKTO. CASH solution. In Europe, apart from the expanding plan in new regions, we’re not just resting on our laurels in existing markets. We’re introducing new payment services to keep things fresh. For instance, in Spain, we launched our cashless service a couple of years ago, and our cash-todigital method is now a hit. As for the long term, well, I can’t predict the future, but I can tell you that we’re keeping an eye on the M&A trend in our industry. We believe in the power of strategic partnerships and acquisitions to further our mission and reach. So, stay tuned; there’s plenty more excitement to come from OKTO!

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GAMBLING WASHES ASHORE IN THE UAE 74

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Could a Vegas of the Gulf be coming to the United Arab Emirates? Not yet but, as Payment Expert’s VIKTOR KAYED explains, the establishment of a legal gambling market is now a very real possibility.

“Gambling is a sensitive issue in any Muslim country but public and political opinions in the UAE are carefully controlled and the authorities have given subtle yet clear indications that attitudes toward gambling have evolved in recent years, which makes it likely that public and political opinion will follow,” he commented.

hen we think about the United Arab Emirates of today, we envision a modern financial hub driven by a globalised economy that has managed to build a bridge between politics, business and religion. Compared to just a few decades prior, the seven emirates of the UAE have become a staple of cultural abundance, strengthening the region’s significance on the world map by welcoming millions of tourists every year.

Last September, the UAE established the General Commercial Gaming Regulatory Authority (GCGRA) - a move that caught many by surprise, but which was also anticipated by those familiar with the matter.

This has contributed to a thriving national treasury that owes 70% of its GDP to the non-oil sector, with tourism being a key contributor.

This was a result of years of careful strategic planning and expert consultations, evident from the appointment as GCGRA CEO of gambling heavyweight Kevin Mullally, who brings over 30 years of experience in dealing with national and international gambling regulations.

For comparison, the average share of the UAE’s GDP generated by oil rents reached 15.67% in 2021. Official government forecasts expect contributions from tourism to almost match this by 2027. The growing rates of international visitors represent several unique avenues that can be capitalised on, one of them being the introduction of gambling - and the UAE knows this very well.

“The General Commercial Gaming Regulatory Authority will be responsible for creating a regulatory framework and adopting compliance mechanisms within the UAE, likely at both the federal and the individual emirate levels,” Dr Ulrichsen added.

Despite 76% of its population being Muslim, the Gulf country and its political elite have been increasingly forthcoming about the potential introduction of a licensed gambling market.

If we put a magnifying glass over the time period leading up to the GCGRA, the potential establishment of a federal authority to manage gambling seems even more obvious.

According to Dr Kristian Ulrichsen, Fellow for the Middle East at Rice University’s Baker Institute, it is completely possible for UAE authorities to hold sway over the public’s opinion when it comes to the market’s launch.

In 2007, Mubadala Development - an investment vehicle wholly owned by the Emirati government of Abu Dhabi announced a partnership with The Mirage Resort which was then under the control of hospitality and gaming giant MGM.

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Dubai and Ras al-Khaimah are likely to be the most proactive in the adoption of the gambling market.

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Fast forward 10 years, and in 2017 MGM made the headlines again after unveiling a partnership with Wasl Properties - a company with close links to the Dubai government - for the construction of a new development there. The famous Caesars Palace landed on Dubai’s coastline not long after, although it surprisingly shut its doors this year despite the UAE’s most significant step towards gambling.

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The authorities have given subtle yet clear indications that attitudes toward gambling have evolved in recent years.

And most recently, Wynn won a contract for the construction of an “integrated resort” in Ras al-Khaimah, which is currently the favourite to become the first out of the six other Emirates to launch a regulated gambling market. It will of course be interesting to see how the situation develops, as the seven sheikhdoms give ultimate power to their local rulers, despite the GCGRA most probably putting Abu Dhabi in charge of the potential casino operations in the UAE. Dr Ulrichsen continued: “Dubai and Ras al-Khaimah are likely to be the most proactive in the adoption of the gambling market and in embracing casinos while Sharjah is more conservative and likely to hang back. Abu Dhabi will be a bellwether to follow to see which direction it moves in, and the same is true of the other emirate of significant size, Fujairah.” Justin Alexander, Director of Khalij Economics, is another expert on the region who is following the developments there very closely. He also thinks that a potential gambling adoption will be a very nuanced process. “More conservative emirates like Sharjah will never participate. My prior assumption was that Dubai would be an early mover and I’m surprised that they haven’t been,” said Alexander. “Ras al-Khaimah is clearly in the lead with construction of the Wynn Resort already underway before the formation of the GCGRA, and it will be a significant boost for the economy - Standard and Poor’s has even mentioned it as a supportive factor for public finances in its more recent rating report.” It is to no one’s surprise that the common conception paints regulated gambling as hugely beneficial to the UAE that establishes it as the local leader among neighbouring nations. Dr Ulrichsen commented: “A licensed gambling market would further raise the profile of the UAE as the leading hub in the region for travel, tourism, hospitality, and entertainment, at a time when the competition from Saudi Arabia is intensifying markedly, especially when the various ‘gigaprojects’ associated with Vision 2030, such as Neom, open toward the end of the decade.

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“The UAE is looking to build on its first-mover advantage in these sectors to deepen its attractiveness and take advantage of new market opportunities, including from the cruise ship industry which has been a key area of market growth for Dubai in particular, and for which a licensed gambling market would enable onboard casinos to operate while at dock.”

combating money laundering and terrorist financing.

At the end of this in-depth look at the potential gambling launch in the UAE, one question still remains - is the country’s payment infrastructure ready for it?

The country currently works with a comprehensive AML legal framework based on industry standards set by the international Financial Action Task Force. The Central Bank of the UAE is also actively involved in developing regulations and guidelines around AML compliance.

According to Wassim Ghabali, Marketing Director at Fintech Galaxy, the UAE’s payments ecosystem is currently ahead of any other in the MENA region due to a push towards modernisation and also its efficiency in

“Compared to other high-density tourism destinations in the region, such as Saudi Arabia and Egypt, the UAE payments ecosystem is generally considered to be more advanced. It is also one of the most efficient countries in the region in terms of AML regulations,” Ghabali said.

“The authorities are continuously reviewing and updating their AML regulations to address emerging

risks and threats, making the UAE’s AML regulations efficient and effective. The country’s commitment to implementing international standards makes it a leader in the region in terms of AML regulations and security and privacy of customer data. “The UAE payments ecosystem is well-positioned to continue its growth and development in the coming years,” Ghabali concluded. So, not only does the launch of a licensed gambling market seem to be on the horizon for the UAE, but it would also be accompanied by a robust financial infrastructure to support it. Add to the mix the country’s large concentration of money and tourist activity, and the realisation starts to set in that a Gulf-based Las Vegas Strip is no longer a mere mirage.

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JESSICA WELMAN COLUMN

A PALPABLE PROBLEM Nobody’s perfect - even oddsmakers make the occasional mistake, and when they do, both bettors and sportsbooks deserve clarity about what will happen, writes SBC Americas Editor JESSICA WELMAN.

istakes happen and happened long before the repeal of PASPA in the United States. Nonetheless, palpable errors are an increasingly hot topic of discussion. Even the definition of palpable error is up for debate with the growing catalogue of betting options, particularly with in-game betting offerings. Most will tell you a palpable error occurs when a sportsbook posts an obviously incorrect line, like claiming Lebron James is a +10,000 underdog instead of a -10,000 favourite in a pick-up game at a local park. Where there is debate is how to define ‘obvious error’. Over the past few months, we’ve had a couple of situations that have regulators asking how to approach these errors and find a balance between protecting the consumer and ensuring sportsbooks don’t go out of business taking a bath on a bad line that opportunists pounced on. In New York, regulators allowed DraftKings to void over $300,000 in wagers around mispriced NBA quarters markets which were mistakenly put up at +3,500 instead of the true price of just +100. DraftKings ran into a similar problem when a miscommunication with a vendor led to odds for a quarter of an NBA game being accidentally pushed as full game

lines. Eager bettors posted on Reddit and customers across the country pounced, placing enough wagers to potentially cost the company millions. How palps and voided bets are handled varies from stateto-state, with some allowing operators to void based on house rules and others requiring regulatory approval. Most states allowed DraftKings to void, but some put their foot down and held the operator accountable for the error. New Jersey was one of the two states, along with Connecticut, that insisted DraftKings honour the bets. The Department of Gambling Enforcement (DGE) has established over the past five years that, if operators put up a bad line, obvious or not, they are going to pay for it. But what happens when one of those errors happens at a smaller sportsbook for a larger sum of money? With in-game betting, operators are pricing and putting up thousands of markets a day, adding up to millions of bets a year. In most other industries, an error rate of one every five million would be considered a successful example of quality control. In sports betting though, is there no room for error? When speaking to the Massachusetts Gaming Commission about the wagers, DraftKings Senior Director of

Regulatory Operations Jake List cautioned that a hard stance on palps could potentially topple a sportsbook. While it may seem unlikely such an event could bring down a behemoth like DraftKings, a seven-figure mistake could prove dire for upstart sportsbooks. So where does that leave the palp debate? Consumers obviously need to come first and not be adversely punished for the errors of a sportsbook. However, the idea that if a local grocery store misprices something, it honours that price simply doesn’t translate into gambling. Sure, your local market mispriced a loaf of bread, but it isn’t like the store then has to give you 100 more loaves of bread. There is a limit to the losses. As state regulators reconsider how operators can approach house rules to ensure they are held accountable to some degree when it comes to palps, the solution may be a compromise. Massachusetts clued into that idea when it penalised DraftKings by having the operator pay out a percentage of winnings. Mistakes happen, but the answer is neither complacency nor rigidity. Instead, it is finding a happy medium that encourages operators to keep these errors to the bare minimum but also establishes consequences for when they do transpire.

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A TRANSATLANTIC RETAIL STORY JOANNE WHITTAKER, Group CEO of Betfred, and KRESIMIR SPAJIC, CEO of Betfred USA, told the SBC Leaders podcast about the very different approaches to retail sports betting on the opposite shores of the Atlantic.

oanne Whittaker and Kresimir Spajic may have similar job titles, but the pair face very different leadership challenges.

Whittaker became Group CEO of Betfred in April 2021, taking over from Fred Done, the founder and public face of the family-owned bookmaker. She now oversees one of the UK’s largest chains of high-street betting shops and the accompanying online operation, along with a growing business in South Africa. Spajic is the former online gaming lynchpin at Hard Rock, who was appointed CEO of Betfred USA in September 2023. His primary task is to grow the brand in the maturing US sports betting sector, where it is currently live in ten states. There is no doubt that facing off against FanDuel, DraftKings, BetMGM and assorted local heroes represents a tough job for Spajic, but he probably would not swap it for the challenge that faced Whittaker when she took charge of more than 1,300 retail locations in the midst of Covid lockdowns.

“It was unprecedented for everyone but the shops just closed overnight and we saw our online business go through the roof,” Whittaker recalled. “It was a fantastic growth story, but we saw those customers convert to digital and wondered ‘why go back to retail’ - it’s easier online, it’s at the touch of a button. It was worrying for us. “But the shops have recovered completely. People like the community, it’s habitual going into the local betting shop and doing your football coupon etc. “So retail is good for us; costs are increasing all of the time which will always be a challenge, but we’re passionate retailers. Our brand is on every high street in the UK.” The Betfred brand is very definitely not on every US high street, but then neither is any other sports betting operator, so Spajic knows that he cannot just import the approach that has been so successful for the company in its home market.

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“It’s just a very different concept, because in the US, retail business is tethered mostly to the casinos. So you’re limited where you can actually locate those businesses and how many of them you can have,” said Betfred’s US chief. “It’s a very different experience from what Jo is saying, where it’s about having a presence on as many corners or as many high streets as you can. In the US, it’s more about bringing a flagship store. You choose locations and you choose the partners which have a good footfall, where this is another flagship amenity for them and try to put your brand forward to them. “But it’s not usually a higher revenue generator. If you look at the US trends, 92% of the revenue comes from digital business and only 8% comes from retail business.”

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Spajic continued: “In order to replicate a bit of the formula of Betfred - which is your local bookie, where you come to socialise, where you get excellent customer service - we’re trying to [use] our sponsorships of Cincinnati Bengals, of Denver Broncos, of Las Vegas Knights to try to tie in with the local community. So it’s definitely a different strategy.” While the approach may be completely at odds with what Betfred would do in the UK, Spajic won’t lack support from the group chief executive. “The US is difficult. There’s no hiding, we followed everyone else and put our flag in as many states as we could,” Whittaker added. “We’re at ten, but now we need to really drill into that strategy and support Kresimir in being able to deliver what he wants to deliver and give him the autonomy to get on and do it. “We’re not under pressure from shareholders externally. We can just go for it, see what happens [and] see what opportunities are there.” The SBC Leaders podcast is available on Spotify, Apple Podcasts and all the usual apps. Alternatively, scan the QR code to watch the episode on YouTube.

Retail is good for us - we’re passionate retailers.

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To Serve

SPORTS BETTORS ESPN finally made its long-expected debut on the US sports betting scene when it partnered with PENN Entertainment to launch ESPN BET. Mike Morrison, the media giant’s VP of ESPN BET tells SBC Leaders about his ambitions for the year ahead. Words by CHARLIE HORNER

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he rumour mill was in full swing long before the big announcement in August that ESPN would be making an active play into the sportsbook industry. The broadcasting and media giant had taken advertising dollars from operators before, but had not found the right partner to make a full market entry. The quest to find the right partner and set out the right vision took, according to VP of ESPN BET Mike Morrison, two years. Central to that behind the scenes strategising was outlining what the purpose of the venture would be. But, for Morrison, this soon became clear and the company wanted to stick to what it excels at: storytelling.

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Sports betting is part of sports coverage but we just didn’t have a history in the US.

“It’s been an evolving process in terms of figuring out … the right way to weave sports betting content into storytelling. As someone said recently, sports betting is all part of sports coverage but we just didn’t have a history in the US of having that as a major part of our sports coverage,” he explained While two years sounds like a long time, it is worth bearing in mind the media behemoth that ESPN is. Part of the The Walt Disney Company, it is a giant of sports broadcasting and decided it would be worth waiting to meet a partner that would meet its lofty ambitions for the venture. When PENN Entertainment agreed a $2bn deal to operate ESPN BET in the summer of 2023, it created a media storm of anticipation. So, what was it about the former Barstool Sportsbook operator that enticed ESPN? Morrison added: “Being a product-first company is going to be crucial to what the

long-term impact is and where fans will gravitate towards, so we really wanted to partner with an organisation that was like-minded in terms of user experience and intention to invest in innovation.” ESPN and PENN also benefited from the hindsight of observing the mistakes of other sportsbooks before finalising their ambition for the platform. The result is that they have launched ESPN Bet on PENN’s proprietary tech stack, which has enjoyed success in Canada with theScore Bet. Morrison is excited by the prospect of working with PENN’s technology, in part because he believes the industry as a whole has so much scope to provide better products and enhanced user experiences. “Frankly, there’s been a lack of innovation at times and we wanted a company with the mindset that they’re going to really lean into innovation and evolve,” he said. “We’re capable of evolving with the right people and resources as the market evolves, which we expect will happen quickly now, over the next couple of years.” The process of having a huge media company entering the sports betting space seems, on the surface, like a monumental opportunity, but it isn’t without significant risks. As evidenced by the failure of others, it is a tough nut to crack and ESPN has worked diligently to avoid becoming another industry casualty. With the integration of ESPN BET odds and promotions into sports coverage, ESPN has focused on creating the most user-friendly method possible. Having learned from prior experiences of integrating other operators into its broadcast, it thinks it has the recipe for success.

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way, shape, or form. very clear. We feel incredibly comfortable understanding the space extremely well, of having a very clear alliance with the editorial organisation, the content organisation, and how we handle storytelling, completely independent from sports betting.”

“When you think about sports betting, we want to make this activity available to sports fans, and in a smart and trusted way with a great experience,” Morrison explained. “We want to think about how that ecosystem really comes together and gets built. It should be seamless for you, should you choose to bet, to be able to have information that might inform your bet, and then be able to ultimately track that, look at that, and go back and forth between the apps and the platforms in a seamless fashion.”

The media giant is also echoing the same line when it comes to integrations with college sports. Upon launch, ESPN told regulators that there would be no ESPN BET integrations into College GameDay featuring Pat McAfee. Again, guidelines have been issued to avoid any complexities when it comes to upholding integrity of college sports and protecting minors from being subject to betting advertising.

WORKING WITH THE COMPETITION While ESPN has given its new sportsbook exclusive access to in-broadcast integrations, it will give ad space to competitor sportsbooks, which caused a stir upon announcement.

“We’ve focused primarily on professional sports for a lot of the work in content and interests around sports betting. We will follow whatever the regulatory or compliance guidelines are around non-professional sports.”

Though accusations of a conflict of interest may be hyperbolic, there was a sense of surprise that ESPN would still give ad space to direct competitors. Yet, given the opportunity to gain ad revenue, Morrison shrugged off any doubts.

TOPPING THE CHARTS ESPN BET immediately proved popular with bettors, surging to the top of the download charts upon launching in 17 states.

“It still makes sense to have 30 second spots of advertising available for other sportsbooks where that inventory is available and where the league rights allow it. I think that will continue, but I would say the majority of the focus is on ESPN BET.”

While clearly excited about the app’s prospects, Morrison was reluctant to read too much into those statistics. Rather, he wanted to look towards the long-term when he believes ESPN BET can be a “market-leading sportsbook”.

Another key risk of entering the market is that of balancing the requirement for journalistic integrity with betting integrity. ESPN has established robust guidelines that prohibit employees from betting on any game they are covering or have insider information on, and it remains vigilant.

It remains early days, but as the more well-capitalised sports media firms enter the sportsbook industry, the saturated market only intensifies further. Perhaps 2024 could see a radical shift at the top table of US sportsbooks. “We have a lot of resources and collective assets to deliver what we expect to be a very strong sportsbook. We’re aiming to be leaders in this market and we’re willing to develop what needs to be developed and take the time to achieve that. We’re comfortable with how things are going so far and we’re getting great feedback from the market.”

But with betting integrity a hot topic in 2023 with athletes, both pro and collegiate, being caught out in gambling scandals, it really pays to be on top of the risks. “From our standpoint, if you’re covering a sport, if you’re a journalist covering the sport, if you’re an insider, you are not involved with sports betting in any

MAY 7–9, 2024 MEADOWLANDS EXPOSITION CENTER, NEW JERSEY

THE LEADING iGAMING & SPORTS BETTING EVENT IN NORTH AMERICA

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LATIN AMERICA

SBC LEADERS ISSUE 29

The major challenge we all see is the uncertainty in the format of the regulation to be adopted.

“ Mikayel Shahinyan - Board Member

INTEGRITY INTEGRAL... 88

LATIN AMERICA

... to BRAZILIAN GROWTH Working with integrity was a key reason why Oddsgate was able to scale from start-up to major player in Latin America, writes MIKAYEL SHAHINYAN, Co-Founder of the platform provider and consultancy.

‘

ntegrity’ was the crucial part of the ethos that helped Oddsgate’s journey from being founded in 2022 to growing fast enough to become one of the major players in the LatAm market - and Brazil in particular - in 2023. When I now look back to the early days of our business, I realise that in a very short space of time we evolved into a self-organised operation. One in which each of the founders contributed their expertise and 24 hours daily to oversee and tackle the issues our partners were having, no matter whether they were technical, operational or marketing related. That was, in fact, an initial element, an initial attitude, that was to be scaled throughout the whole operation last year. Due to our team’s years of experience in managing projects in different jurisdictions, including IT product development, marketing, legal and compliance, as well as sales and day-to-day operations, we became a sort of knowledge hub. We were able to look at partners’ processes in their entirety and provide solutions to the challenges they faced in a most integrated way.

LATIN AMERICA

SBC LEADERS ISSUE 29

That was a great start. Our next challenge was to scale the operation from a family-like team of fewer than 10 people helping three-to-four operators to a team of 50 people running more than 20 operations in Brazil, during a period when the regulation was being written and debated, creating a constantly changing landscape. ‘Brazil is not for the amateurs’ This is true of pretty much any country, as all geos have local specifics, but one of the first phrases we heard before tapping into the market was that ‘Brazil is not for amateurs’. We were, of course, not amateurs when we started, considering the decades of operational experience in Brazil of our founding partners. However, even during the short time Oddsgate has worked in the market, we have seen transformations led by technology advancements, the introduction of Pix as a payment method, and even the globalisation of certain aspects of customer behaviour brought in by international players. All these factors brought operators to the ‘adapt or die’ paradigm, the acceptance of which was the cornerstone of our own consultancy.

“

Another illustration of local specifics is the fact that acquisition is heavily influencerdriven.

Another illustration of local specifics is the fact that acquisition is heavily influencer-driven, leading us and our partners to always keep on top of the trends imposed by them. It means our operations team specifically has to keep adding the most up-to-date content to their offer to be competitive. From the other side, our managed services team is helping our partners to advance their standard toolkit by adding best-in-class CRM strategies to their marketing and operational plans. Indeed, the major challenge we all see is the uncertainty in the format of the regulation to be adopted - yet another challenge for adaptivity. SCALING KNOWLEDGE IS A SLOW PROCESS Everybody needs time to learn, especially when you need to also develop additional pieces of expertise from your colleagues: an essential step towards another level of self-organisation. Brains can selforganise, but hands rarely do. All these findings led us to HR procedures that are tailored to scale the knowledge within our company. We start with simple internal training sessions and end up able to deliver specific product functionality designed and made by cross-department teams consisting, for example, of developers, a legal expert and a marketing executive. These kinds of teams are designed to deliver an integrated view on functional delivery, collect and share the knowledge internally.

LATIN AMERICA

Lusia Barseghyan Board Member & Director of Gaming Operations

Mario Silva Board Member

Paulo Lopes Board member

Tiago Almeida Board member

The major benefit of these types of multidisciplinary teams is that they can deliver quality solutions independently, leading to an integral mindfulness culture during decision making. DON’T RUSH INTO QUICK DECISIONS This is another important piece of integrity-driven collective wisdom we came to the hard way. Partners may see one section of the picture, service providers a different part of it, and your IT team something else. No matter how pressing the issue, it takes time to analyse the situation from an integrity standpoint. In most cases we realise that an ‘issue’ is not really an ‘issue’, leading to a situation where the partner also starts to

change its assessment of and approach to the problem. The adoption of standard task formalisation practices sets another level in the conscious approach towards service providers and internal operations, establishing a culture of well-thought out queries and raising the quality of delivery. COMPLY AND ADAPT This is what we see as 2024’s motto for Oddsgate and our operators, as we work together to set their roadmap in the newly-regulated Brazilian market. We hope that regulation will help to deliver much-needed operational standards and set a quality level among the competition which this ambitious market deserves.

LATIN AMERICA

SBC LEADERS ISSUE 29

LATIN AMERICA

SUCCESS IN SPAIN, EXPANSION IN PERU Spain is becoming increasingly challenging, but the omnichannel offering allows RETAbet to gain market share, says CEO XABIER MARIBONA, while Peru offers real opportunities for the operator. Words by LUCÍA GANDO

lie in Spain. He explained that the market “is becoming very difficult to compete in due to increasingly stringent operational regulations, which require significant effort in development”, not to mention “advertising restrictions.”

ETAbet ended 2023 as one of the top three operators in its home Spanish market and emerged as the most profitable in the retail sector, its CEO Xabier Maribona told SBC Leaders magazine after participating as a speaker in a panel at SBC Summit Latinoamérica. Maribona had already promised that 2023 would be a crucial year for the company in the country and globally.

Nevertheless, RETAbet’s brand is boosted by having its own platform, “which gives us a deep understanding of the entire value chain,” along with its omnichannel offering that includes an extensive network of retail gaming locations in both countries.

The experience in Spain, the first Spanish-speaking market globally to regulate online gaming and sports betting, has allowed RETAbet to expand into Latin America, initially in Peru, where it launched operations in 2019 and has already positioned itself as one of the leading brands. While the market had been functioning under ‘non-prohibition’, the regulation finally launched in the second half of 2023 promises to strengthen the industry’s operation there.

Currently, the operator has more than 2,000 physical points of sale in Spain alone, where it has been operating in the retail sector since 2008 and obtained an online gaming licence in 2012 from the Dirección de Ordenación del Juego (DGOJ). Maribona believes that “in Spain, there won’t be more than four omnichannel companies in the medium term with a presence across the entire country”.

However, Maribona identified that the company’s challenges now

LATIN AMERICA

SBC LEADERS ISSUE 29

“

In Spain, there won’t be more than four omnichannel companies with a presence across the entire country.

This vision also applies to regulation, where in new markets like those in Latin America, there is a rush by authorities to collect revenue and flood the market with thousands of options instead of planning for sustainable growth in the medium and long term.

“We had the first ‘real’ omnichannel product in the market, and in 2023, we continue to gain market share,” Maribona said. “In terms of physical points of sale, more and more distributors and partners trust in our strength and brand for their points of sale. Meanwhile, online, we can say that we are in the top seven in sales and product, which puts us in the top five in the total market.”

“Many countries are making mistakes by imposing taxes now that were not there in the past and creating unprofitable regulatory scenarios. The industry should stop going to markets ‘just because’ or ‘because it’s strategic’ if the regulatory conditions are not suitable because, in the end, it results in a loss of profitability,” he reflected.

For this reason, the CEO is confident that “2024 will be a new advance”. Initially, the focus will be on Latin America, as the operator expects to obtain one of the first official licences in Peru “to increase our investment once we have the clear rules of the game”. His team will also be “attentive to opportunities to enter other markets as technological and investment partners of a local player, or upon proper regulated entry”.

He believes that in the medium term, a very significant consolidation of players can be expected, although “physical gaming lobbies should stop opposing a complete online product - live, streaming, casino games because, in a few years, they will all be online”.

However, Maribona highlighted that RETAbet’s clear priority is to enter markets where profitability can be achieved in the medium term. Therefore, the challenging scenarios in a number of countries mean its plans for market entry remain undefined.

He pointed out: “The local player with a retail presence has all the advantages in the medium term, even if they face competition in the short term. There are always interesting companies like RETAbet to talk to about their betting platform and to reach agreements and be competitive.”

“In Latin America, it takes a long time to have a product and service adapted to each local market, and in Peru, we have achieved it. While we will continue to improve our offerings and services in the future,” he said, adding that this year it will carry on opening stores in the country while strengthening its online product, payment methods, customer service, and promotions. FOCUSING ON PROFITABILITY

From his experience in Peru, for example, partnerships with established players become relevant once it is clear that dozens of informal companies will not be able to obtain licences because they are “under the umbrella of platforms that will not be homologated and will not meet financial or compliance requirements”.

For the CEO, RETAbet distinguishes itself by not seeking to be leader in sales whatever the cost, but instead to achieve profitability and sustainability in the long term. “This way, we gain recognition as a solid company, with an unbeatable team that end customers, suppliers, and partner-collaborators and distributors can trust. You have to know your place in each market,” emphasised Maribona.

In addition, the technical requirements for obtaining a licence require a certain platform solidity and development work that not all operators can undertake. “Regulation will clarify the rules of the game, so solid companies will increase their investment, create jobs, and generate income for sports teams and media in terms of sponsorship,” he maintained.

LATIN AMERICA

FOOTBALL REMAINS KING The betting and sports industries continue to strengthen their ties across Latin America, while regulators are looking at European examples, such as the Spanish market, to legislate these relationships. In this landscape, Maribona suggested not to overlook the fact that the economic injection for clubs from these agreements “increases income for sports and helps improve professionalism, thus avoiding amateurism, which always has a higher risk of match-fixing”. In this sense, Spain and its sponsorship prohibition has limited one of sport’s abilities to develop, while Latin America still shows a lot of potential. According to RETAbet, with experience as a sponsor in various sports in both Spain and Peru, football continues to be the primary interest of bettors and, therefore, betting operators continue to seek a greater presence with clubs and leagues. Beyond sponsorships, what will distinguish sportsbooks in such saturated markets are distinctive offers, customer service, and payment methods. “Having a pool of serious and competitive suppliers is key to maintaining competitiveness, so events like those organised by SBC are vital for making and building the right relationships,” he emphasised. And he concluded: “Being serious with suppliers is as important as being serious with end customers. The right choice of suppliers is crucial to staying profitable.”

LATIN AMERICA

SBC LEADERS ISSUE 29

PREPARING FOR SUCCESS IN BRAZIL HUGO BAUNGARTNER, VP Global Markets for Aposta Ganha, is confident the operator is ready to compete when the long-awaited regulated sports betting market in Brazil goes live.

LATIN AMERICA

Words by ISADORA MARCANTE

he long wait for the full regulation of the sports betting market in Brazil was not time wasted for Aposta Ganha, as the operator kept itself busy preparing internally, structurally and legally for the industry’s new era. Hugo Baungartner, the company’s VP Global Markets, has been working in the sector for 26 years and sees the path that the country is taking towards regulation in a positive light. While gambling has been a reality in Brazil for more than ten years, the executive believes that regulation will create a variety of new opportunities. “Obviously, the marketing and sponsorship aspect is also a reality, but I believe it will bring more formality. With more formality, the quantity of job offers will increase significantly,” he reflected. Baungartner added that the transparency of operations resulting from licensing will be highly advantageous, as sportsbooks and casinos authorised to operate in the country will have to follow rules and be widely known. Speaking before confirmation that President Luiz Inácio ‘Lula’ da Silva had signed Bill PL3626/23 into law, he said: “We will be one of the companies applying for the Brazilian licence. We still don’t know what the final text will be, but we are waiting to really see and be sure that this licence makes sense. We have been preparing for quite some time, including in technical terms.” The technical terms Baungartner refers to are the GLI-19 and GLI-33 certifications, which Aposta Ganha is seeking: “In general, the company is extremely ready for the regulated market,” he added.

LATIN AMERICA

SBC LEADERS ISSUE 29

However, Baungartner stated that, to enter the regulated Brazilian market and succeed in the long term, some international tools must be replicated, such as clear policies, data management, KYC and robust control regarding the participation of minors, among others. “All these international practices, which are already known, must be replicated in Brazil. Even including the latest [facial recognition] technology. There are tools in the world today that provide certainty that the person registering is indeed themselves. This is done through important tools such as document submission. They are essential for operation and transparency.” The executive believes that Brazil, having discussed the issue for

years, is mature enough to settle upon a complex regulatory text that covers the industry’s needs, and Aposta Ganha has strategies to apply for and receive an operator’s licence in the country.

but I think that can be discussed later. I predict that conversation will turn towards evolution of the regulation, and our lawmakers will understand that it is necessary to adapt,” he said.

“I closely follow all steps, all bills - old and new - and our strategies have been worked on very significantly in recent months,” he commented.

Looking to the future, Aposta Ganha is interested in sponsorship opportunities in professional sports and culture. Baungartner emphasised that the company tries to be highly visible at popular events that align with the brand’s mission and vision since “it’s a way to show who we are, to provide events to the general public”.

For Baungartner, the text of the final bill better serves the market, operators, and the country’s players than the provisional measure signed by the President and published in the Official Gazette of the Union (DOU) on July 25, 2023, which took the first steps towards regulation. “Are there two or three points that could be improved? I believe so,

“

Regarding the long-term prospects of the operator, Baungartner was categorical: “We will continue and I believe that with a regulated market, our opportunities will grow even more.”

I believe that with a regulated market, our opportunities will grow even more.

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