SBC Leaders Issue 30

SECTION

NEW JERSEY 2024

I S S U E

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BetMGM

Thriving on home turf An X factor for the Vegas Super Bowl

Tipico

Making payments count How payments deliver a competitive edge

FanDuel

Christian Genetski The six characteristics of the Hall of Famer 1

This is huge!

Experience the future of CRM at: www.fasttrack-solutions.com

EDITOR’S NOTE

Editor’s Note How would you sum up the current state of the US sports betting and iGaming industry? It’s not an easy question to answer.

Could you describe it as successful? Certainly. What about, slightly disappointing compared to initial post-PASPA excitement? You can definitely make a case for that as well. How about, entering a period of stasis? That’s probably a step too far, but you can understand why some people think it.

The pessimists among you can point to a lack of progress with iGaming regulation, the presence of California and Texas on the list of sports betting refuseniks and the number of operators quietly exiting the market after failing to identify a route to profitability.

I like to consider myself one of life’s optimists. So, while acknowledging that the industry may well be experiencing some growing pains, I prefer to look at the popularity of the markets on the Super Bowl and March Madness, the investments being made in new technology and the sector’s evolving approach to player protection.

The main reason for my optimism about the longterm future of the US industry is, however, nothing to do with balance sheets and market statistics. It is something more fundamental - people.

There are many talented, highly ambitious and strategically-minded people working in the US industry and we’ve had the pleasure of talking to some of them for this issue of SBC Leaders.

Our cover feature with Christian Genetski, President of FanDuel, tells the story of the remarkable combination of resilience and expertise that has taken the operator to the apex of online gambling.

We also hear from BetMGM CEO Adam Greenblatt, Tipico’s VP of Finance Nicole Cemelli and a selection of people trying to enact meaningful change, including Rep. Dina Titus, Global Gaming Women’s President Lauren Bates and the Digital Wellness Center’s Dr Mary Donohue.

Between them, they will give you lots to think about and plenty of reasons to be positive.

- Martyn Elliott

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SBC LEADERS ISSUE 30

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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

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Contents 07

42 Global Gaming

78 Kinectify’s

Six traits of a Hall of Famer

Sharing experience to reach shared goals

SPORTS BETTING

46 The invisible crime

How outdated regulation exposes the gaming industry to risk

16 BetMGM’s

Human trafficking and casinos

FanDuel’s Christian Genetski

Adam Greenblatt

Creating the X factor for a Vegas Super Bowl

20 Rep. Dina Titus

Women’s Lauren Bates

50 EveryMatrix’s

Erik Nyman

54

Gamomat’s Dietmar Hermjohannes

24 The Digital Wellness

A strategic approach to driving growth in iGaming

Center’s Dr Mary Donohue

28 Entain’s

Martin Lycka

Industry take note - player protection is still a work in progress

MARKETING

64

Kansas City Royals’ David Adams

PAYMENTS & COMPLIANCE

CASINO

70 Tipico’s Nicole

Peter Ekmark

EVENTS

87 A deep-dive into

Canada’s gaming scene

90

Final word with Rasmus Sojmark

Adam Patton

The rising cyber threat level

Online casino - the next battleground?

Competing across the map

Executing digital synergy

Searching for sponsorship dollars

38 PlayStar’s

Stuart Godfree

60 Checkd Dev’s

33 C8 Secure’s

Patrick Gardner

83 mkodo’s

Fulfilling the American Dream

Talking to the taxman

Developing a seatbelt for gamblers

Sean Topchi

Cemelli

How payments deliver a competitive edge

74 Socure & PrizePicks Using ID verification to accelerate growth

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Furthering a culture of responsible gaming requires a one-team effort. high-quality research, FanDuel celebrates its amazing team of partners.

SPOTLIGHT

THE SIX CHARACTERISTICS OF THE HALL OF FAMER Words by JESSICA WELMAN & MARTYN ELLIOTT

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He has also helped to ensure the survival of daily fantasy sports and establish a partnership model between operators and major leagues. At the same time, he played a pivotal role in the FanDuel - Paddy Power Betfair deal and contributed to the creation of an approach to business that has made FanDuel hugely successful.

he Sports Betting Hall of Fame is designed to honour individuals who have made a significant and lasting contribution to the industry, something which Class of 2024 member Christian Genetski has indisputably done.

During his decade with FanDuel, as Chief Legal Officer and now President, he has been at the forefront of a government affairs strategy that has succeeded in opening up legal online sports betting markets in multiple US states.

Here Genetski tells SBC Leaders about the qualities he needed to achieve everything on his enviably impressive CV.

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SPOTLIGHT

SBC LEADERS ISSUE 30

Strategic During any conversation about FanDuel’s rise with Genetski, he is at pains to point out that it has been a team effort. Longstanding colleagues, however, are keen to credit Genetski with developing the legal strategy that successfully thwarted existential threats and hastened the spread of regulated sports betting to states across the US. One crucial point in the company’s history came in 2015, when the then New York Attorney General Eric Schneiderman declared daily fantasy sports illegal and stated that both FanDuel and DraftKings were in essence illegal gambling operations. With other states moving to impose copycat bans, the situation looked bleak.

The news did not come completely out of the blue for Genetski though and he had already begun the groundwork for a campaign to protect the future of the industry.

“It was never a thought that we were just going to sail by unregulated forever,” he explained. “So before the troubles started for DFS, we hired lobbyists in states where we were going to make an affirmative push and we were preparing for that.

than 60 years, were unclear. That provided an opportunity to, with the help of skilled lobbyists, educate legislators on what DFS was and why it should be allowed to operate within a regulated framework.

That education process was a success for DFS and informed the strategy Genetski pursued postPASPA repeal.

“We had less education to do with sports betting because the Supreme Court case was so high profile,” he explained. “You had New Jersey, Pennsylvania, who had passed laws in waiting.

You had West Virginia which passed one sort of immediately. So there was a little bit of organic movement from the legislators themselves in the very first early states.

“From there, the story was pretty straightforward. Every legislator knew plenty of people who were betting on sports. It’s not that this was not happening, and here was a way to immediately convert the illegal market to a legal regulated market where consumers would have recourse if something went wrong and the state would get the tax benefits.”

While Genetski may characterise the process as “straightforward”, there have been plenty of knockbacks along the way and it has taken multiple attempts to pass legislation in some states - an experience he describes as being “like getting elected to the Baseball Hall of Fame”.

Perseverance is only part of that equation though.

“But the analogy I used years ago was, we were winterising our home on the coast for a category two, and we got a category five. So we had to double down a bit, as we weren’t quite as prepared as we thought we were.”

This is where Genetski’s expertise really paid off for FanDuel. First up was a lawsuit that allowed the DFS operators to continue working in New York until the state’s Supreme Court made a final ruling. Then came the crucial strategic decision to target legislatures, rather than rely on winning court cases.

“People often ask ‘what is FanDuel’s guiding principle in its government relations work?’

My answer to that is ‘pragmatism’,” Genetski explained.

As a result of the subsequent campaigning the New York Assembly passed legislation that made DFS legal in the summer of 2016. Virginia had already made the same decision and several other states soon followed suit, ensuring the survival of both FanDuel and DraftKings.

Recalling that time, Genetski said that attorneys general who questioned the legality of DFS were keen for legislatures to clarify its status because existing laws, some of which dated back more

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“We want to expand the addressable market and, as long as it’s being expanded in a way where we think we can compete fairly on a level playing field and grow our business, then we’re not going to let perfect be the enemy of the good in an outcome that does that.

“Others in the space may characterise us as being impatient and they may be more comfortable waiting out for a more perfect scenario, whereas we’ll take something that’s 90% there and that we can get now.”

SPOTLIGHT

Balanced Corporate history is littered with Icarus-style failures, when leaders failed to temper their natural ambition with a healthy dose of realism. When the Supreme Court decision on PASPA in May 2018 finally created a path to a multi-billion dollar legal sports betting industry, it also created the potential for strategies dictated by overexcitement rather than long-term thinking.

Not at FanDuel though, where Genetski and the rest of the leadership team took a more cautious approach. Rather than assume that the brand’s strong position in the DFS space would translate directly into sports betting success, decisions were taken in the belief that the company would find it tough to compete against established gambling corporations such as Caesars and MGM. “Looking back on my 2018 thinking and the specific decisions we made at the time, my main takeaway was that we weren’t nearly ambitious enough,” said Genetski.

“Christian Genetski’s profound influence on the evolution of legalised sports betting and iGaming is undeniable, making his induction into the Sports Betting Hall of Fame a fitting acknowledgment.

His pioneering contributions have helped unlock our industry’s potential and he has also adeptly navigated pivotal challenges, dating back to the inception of daily fantasy sports. In an arena where competition propels us forward, we respect Christian’s lasting industry impact both in retrospect and as we forge ahead.”

Jason Robins, CEO & Co-Founder, DraftKings

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I can tell you for sure that nobody foresaw where we are now.

“It sounds odd because we’re number one now. So you would say, ‘well, we must have done everything right’.

In fact, I think we made a lot of decisions that, knowing what we know now, we would do the complete opposite.”

He added that his initial expectation of the New Jersey market launch was that FanDuel and DraftKings would settle somewhere in the range of third to sixth in the market, alongside the big casino operators.

With the advantage of hindsight, that seems to be a remarkably timid ambition. But with long-term profitability now in view for FanDuel, it is clear that being less bullish than some of the competition in the early days of the market was the correct decision.

“FanDuel has a pretty risk-averse, conservative mindset.

Flutter is very similar to that, too. So partly, maybe we were managing our own expectations,” Genetski concluded.

“But I can tell you for sure that nobody foresaw where we are now, five years later. That it’s FanDuel and DraftKings, and then a big drop-off, I don’t think that was what any of us anticipated.”

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SPOTLIGHT

SBC LEADERS ISSUE 30

Fast learner The story of FanDuel’s rise to its current position as market leader is an unusual one. Few companies are ever in a situation in which they face two major, but similar, challenges in such quick succession as the operator did when it had to campaign for the legalisation of DFS and then sports betting.

Learning from your failures is a key quality for any resilient executive, but in some circumstances learning from your successes is equally important. That certainly proved to be the case for Genetski as he set out to tackle the task of persuading state legislatures to establish regulated betting markets.

“I was the tip of the spear for handling all of the external legal challenges, the government affairs work, managing our partners and helping them, convincing them to stand by us and wait to see what happened on the other side,” he explained.

“Some of the lessons I learned had very practical applications.

We passed 20-something DFS laws in different states, so when it was time to push for sports betting legalisation, it was telling the same committees, ‘hey, we’re back. You’re familiar with our lobbyists, you’re familiar with the idea and this is much more revenue’. We really were able to leverage the lobbying infrastructure we’d built.”

In addition to how to formulate a lobbying strategy, the DFSfirst era taught Genetski how to handle difficult conversations with partners and regulators, and how to work in a regulated environment. It also provided invaluable lessons about growing the business.

“As a daily fantasy company we learned how to market a B2C business to customers who wanted to play for money around sports and figured out how you really develop a digital marketing machine and an online-first consumer business,” Genetski said.

“That was really critical because it just wasn’t something that a lot of the competitive set that we would be facing when we got to 2018 and beyond in sports betting was doing from 2014 to 2018. We made a ton of mistakes, but those mistakes were very helpful when we got to part two.”

A further crucial learning from that tough period when the future of DFS was in doubt, was the importance of having the right mentality.

“What I think is underrated - and I think applies both to FanDuel and our closest competitor - is we entered 2018 with a real will to win because we had been at death’s door as a business multiple times and kept picking ourselves up off the mat and living to fight another day,” said Genetski.

“When that’s the arc of your experience and you suddenly have what looks like an actual opportunity to take off, as opposed to just stave off your demise, the energy to run at that opportunity is incredibly high.

“The online sports betting opportunity was everything for FanDuel, which is very different from a large company that’s spitting out tons of EBITDA in a pretty stable environment that is going to try a new vertical and see how it goes. For us, this was the whole game. That singular focus and will to win was very important and those were things that were cultivated in part one.”

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“Christian immediately understood that successful market access efforts would require collaboration with existing players. He reached out early and often to develop key relationships with existing brick-andmortar companies and was willing to take lessons learned about the issues most relevant to successful gaming advocacy.

He was a key reason a broad swath of the US digital gaming industry was willing to come together to join the Sports Betting Coalition and also successfully found a place for digital gaming companies in the American Gaming Association. He developed trust through transparency and this has been fundamental to the industry’s advocacy success to date.”

Ayesha Molino, President & COO, ARIA and Vdara, and Chief Public Affairs Officer, MGM Resorts International

SPOTLIGHT

Resilient There are some companies who could have bought FanDuel outright for $350-400 million

Every successful business has endured tough times and FanDuel is no exception. In 2017, with legal sports betting on the horizon but still tantalisingly out of reach, the company found itself in a situation that threatened its existence.

“After the DraftKings merger was blocked by the FTC in August of 2017, FanDuel was pretty much out of money,” recalled Genetski. “So we had to immediately do an internal capital raise to keep the lights on and take in just enough money to say, ‘we’ve gotta sell the company, merge the company, or find a path to a much bigger capital infusion in the next nine months’.”

admits would have left FanDuel unable to launch alongside the competition in September 2018 - while continuing to seek partners to acquire the business.

At that point, a team consisting of Genetski, Matt King (who had returned to the business as CEO following the departure of Co-Founder Nigel Eccles), Andy Giancamilli (the current COO, but then CFO) and David VanEgmond (then Head of Corporate Development) set about meeting anyone who might have an interest in investing in the DFS or sports betting space.

“

The tactic of speaking to anyone and everyone while they searched for the right investment paid off when the team talked to Paddy Power Betfair.

“After we met with the Paddy Power Betfair guys, we said, ‘this feels like a good cultural fit’. It really did, from the beginning, feel like a good match,” said Genetski. “They already had a business in the US, TVG, so there were people from their company already over here and we felt it was really a good complementary business.

The timing made things particularly difficult, as the Supreme Court heard oral arguments in the PASPA case in December 2017 and while there was growing optimism about legalisation of sports betting in the US, nothing was guaranteed.

“We did a unique deal with sliding valuations, depending on whether PASPA was repealed or not, because it was just an unknown. We signed the deal before the [Supreme Court] decision came down and closed after.

“That uncertainty made valuing FanDuel, and trying to figure out whether it was an asset or not, very difficult. At the end of the day, almost everyone passed,” said Genetski.

“I’m confident there are some companies, who shall remain nameless, who could have bought FanDuel outright for $350-400 million at the time that sure wish they had! But we were a loss-making fantasy sports business with an uncertain future. How would we ever turn it around if sports betting didn’t pass?

And we didn’t even have any sports betting infrastructure.”

“The companies both quantified and shared the risk and the upside in getting the deal done, and ultimately got something that worked for us and gave us a chance to have another go at it.”

The merger of FanDuel and Paddy Power Betfair’s US business closed in July 2018 and left the company ideally placed to take advantage of the sports betting opportunity.

Now, under the ownership of the rebranded £29 billion Flutter Entertainment powerhouse, FanDuel has done exactly that.

At this point, the leadership team pursued a dual strategy. They spent time talking to suppliers about buying in a third-party sportsbook solution - an approach Genetski

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SPOTLIGHT

SBC LEADERS ISSUE 30

Collaborative pointed out that this is not going away - it’s only going to get bigger,” Genetski said.

The battle to secure legal status for first DFS and then sports betting was not one that operators could win alone. They needed high-profile supporters and FanDuel found one in the form of the NBA.

By the time the Supreme Court took cert in the PASPA case, Genetski detected that the position of the leagues had definitively changed and that they had begun to prepare to benefit from the potential arrival of legal sports betting in multiple states.

From there he honed a collaborative approach that harnessed the influence of the NBA and the other leagues, but also recognised that operators would have to help the sports organisations to have a stake in the industry.

Genetski was in talks about joining FanDuel in 2014 when he heard that the NBA was poised to take an equity stake in the company. “For me that was the sort of legitimising stamp of approval from the institutional sports space that was critical to my saying ‘yes’ and that I want to go for it,” he recalled.

While he may not have instigated the relationship, Genetski recognised how important it could be and has since played a significant role in strengthening it. The two organisations continue to work together to this day.

The first step was to introduce the leagues to FanDuel’s national lobbyists and waive any conflicts, thereby giving the leagues representation in ongoing conversations about legalisation and ensuring their issues were part of the discussions.

Key to his realisation of how crucial NBA support could be came shortly after he had joined FanDuel, when Commissioner Adam Silver penned a New York Times op-ed about the benefits of legalising sports betting.

“That was a calculation by FanDuel and by DraftKings both that the leagues stood by us in the fantasy days when we had a lot of troubles,” Genetski explained.

“MLB stood by DraftKings, NBA stood by FanDuel.

The NFL was actually quite supportive, even though we didn’t have formal partnerships with them.

“I did not know it was coming, but I do think that was a very powerful, seminal moment. Whatever quiet conversations the other leagues were having, he said the quiet part out loud and, very intentionally,

Ethical

“The one that, for me, captures the gestalt of FanDuel’s culture, is stay humble, stay hungry. It was very easy to stay humble several years ago. It’s harder to stay humble when you’re in the position we are now, but I think we’re pretty good at it,” he said.

“When we talk about being humble, it is not about our ambitions. We should be voracious in our ambitions, but humble about our ability to execute and what we still don’t know and what we can still learn. But we’re really hungry to chase the big ambition and hungry to learn.”

A successful business needs a healthy, ethical culture and Genetski has played an integral role in the creation and evolution of FanDuel’s guiding values. While for many companies, brand values are little more than a marketing tool, the ten FanDuel Principles are an integral part of its approach to doing business.

Genetski continued: “The other one I think is really important to us is win with integrity. We pride ourselves on being professional with everyone we interact with, being respectful, being transparent, being honest, whether it’s our customers, our partners or potential partners.

“Sometimes you hang them on the wall and nobody ever talks about them again, but for whatever reason, these have really stuck and they’ve been really helpful to us during a period of immense growth,” said Genetski.

“We embrace these principles in the interview process. They’re part of the annual review process.

We talk about them, people use them in emails, we use them in town halls, we do illustrative examples of people living the principles.” One of those people very definitely living the principles is the President himself.

“In any company, there are going to be difficult decisions to make. We often voice that a particular decision is commercially going to be disadvantageous, but we win with integrity and this is the right decision to make.”

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SPOTLIGHT

“We felt that they had paid forward and earned the right to stay close and be partners. So we made the decision then, I think both companies independently, that we wanted to be close to the leagues.”

He continued: “We felt it would accelerate states passing the laws if the leagues were there and supportive and buying in. I do think it was quite critical, particularly in the first couple of years, to have the leagues on record as being supportive.

“And so we continue today, we’re official partners with the NFL, the NBA, MLB, the PGA Tour and NASCAR. I think that’s how we’re going to continue to operate as a business.”

Genetski still gets a buzz from working with the leagues on decisions that will influence the future of the industry, and from seeing the FanDuel brand in stadiums and arenas. That enjoyment is not solely derived from a company perspective though.

“Ultimately, when I think about legacy - and I have daughters who are 10 and 12, who know what I do - whatever sports betting in the US becomes, I’m gonna have been very pivotal in that happening. So, it’s really important for me that it sits in the mainstream of sports, that it’s considered additive and fun, and it’s contextualised in the right way in the overall discussion about sports.”

Scott Kaufman-Ross, Executive Vice President, Media & Gaming, NBA

“I’ve worked with Christian for ten years as part of the NBA’s partnership with FanDuel and have seen up close how incredibly impactful he has been on the sports betting industry. I think he always saw the big picture in that sports betting was going to be most successful if the leagues and the operators were in unison. Even really early on, before sports betting, FanDuel made it a corporate priority to be a great partner - and I have no doubt that Christian was the driving force behind that type of thinking.”

“Christian has been indispensable in positioning FanDuel as the leading and most trusted sports gaming brand in the United States. His remarkable blend of intellect, charm, strategic ingenuity, patience, and an unassailable moral compass has made him someone everyone turns to for advice and leadership - even our rivals.

I can’t think of anyone who has had a bigger impact on the regulatory acceptance and growth of the daily fantasy and sports gaming sectors in the United States than he has.”

David Nathanson, Board Member, FanDuel (2017-present)

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SPORTS BETTING

SBC LEADERS ISSUE 30

Creating the

X FACTOR for a Vegas Super Bowl 16

SPORTS BETTING

Football fans heading to Vegas on Super Bowl Sunday were unable to escape the BetMGM brand. CEO ADAM GREENBLATT tells SBC Leaders why it was so important to go the extra mile when the big game headed to a city the operator regards as home turf.

Words by JESSICA WELMAN

B

etMGM and its CEO Adam Greenblatt went into this year’s Super Bowl with a plan: make sure anyone coming to Vegas knew what BetMGM was. From the moment people touched down at the airport, visitors would see the BetMGM logo everywhere from baggage claim to taxi cabs to billboards. And, of course, the brand was up and down the Las Vegas Strip at every MGM Resorts property.

The only area they forgot?

“We didn’t think about the airport for the private jets,” Greenblatt joked.

Everything else though, the company had covered.

That included a tailor-made strategy for each property, so BetMGM’s footprint at the Luxor would be substantially different from a property like Bellagio.

“The plan for each property was property specific, based on proximity to the stadium, based on the footprint of the sportsbook,” Greenblatt recalled.

“It was really detailed and tailored planning for each property, but the experience and what we were aiming for was an immersive experience for basically all visitors to Las Vegas.”

With MGM Resorts owning every property on the west side of the Strip from Bellagio all the way south to Mandalay Bay, even the walk to Allegiant Stadium was a wall-to-wall BetMGM experience.

“Nevada is the fulcrum of our omnichannel strategy.

It’s a state where, frankly, as a brand, we flex in a way that is more challenging to do in other states, obviously, given the competitive landscape,” Greenblatt noted.

Within the casinos themselves, BetMGM and MGM Resorts curated a host of programming. The BetMGM Big Bash brought in Bill Burr and, fresh off the most buzzed about performance at the Grammys, Luke Combs.

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What we want to do is be close to the action in something that our players love to engage with.

SPORTS BETTING

“

Our job is to make every player feel like we understand them and they are special to us.

While it was called a big bash, it was a relatively small concert of 2,000 people and included a meet and greet where even Greenblatt “got to give Luke a cuddle”.

Some VIPs got an even more exclusive experience. Tom Brady and Wayne Gretzky were interviewed by Vince Vaughn and regaled the small audience with stories of their careers to promote BetMGM’s first Super Bowl ad.

As Greenblatt explained, the idea was to create a wide range of experiences and touch points between the brands and customers.

“You have a base of good players who love what we do. But those players aren’t all the same.

Some players like baseball, some players like parlays, some players like big tickets, some players like high-volatility games. So our job is to make every player feel like we understand them and they are special to us. As I look through that lens, and then look at our activations, I feel like we

did that.” The lead-up to Las Vegas’s first Super Bowl was hectic for BetMGM as it tackled a multi-pronged approach to the big game including on-site deployments at every property, prepped its ad and, most crucially, rolled out a new version of its Nevada app.

Prior to February, the Nevada BetMGM app was on a different tech stack than other states. In other words, anyone coming to Nevada used to have to download a different version of BetMGM in addition to registering in person at a casino before being able to bet.

It was crucial to deploy that new app with Nevada regulatory approval in advance of the Super Bowl. BetMGM managed to do it with 10 days to spare. To Greenblatt, it felt much closer.

“As an emotion, it was uncomfortably short,” he admitted. “It was a huge effort with a very, very long lead time, because it’s like landing this giant plane on a tiny runway.”

BetMGM deserves a certain amount of plaudits for mobilising and executing such a big campaign. But, for something of this scope, it is very important to ask - did it work?

Greenblatt cited several metrics to indicate it did. Year-over-year, across the nation, new sign-ups for BetMGM around the Super Bowl were up 72%. On the ground, 68% of the geolocations in Las Vegas on game day came from within Allegiant Stadium, indicating these visitors got the message, be it at the airport, at their hotel, or en route to the stadium. And that engagement with BetMGM didn’t end there.

“The majority of those people in that stadium aren’t local to Las Vegas. But many of them are going to go home to sports betting states, and they have BetMGM in their pockets. And that, for us, is why Nevada is so

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very important to our national business.”

Omnichannel is a word that is integral to the operator’s strategy. It makes sense given the company’s strong brickand-mortar presence not just in Vegas but throughout the US. But as the company expands, the omnichannel ethos is not just about creating synergies with retail and online gambling.

“What we want to do is be close to the action in something that our players love to engage with and involve themselves with, which is live sports, which is actually also consistent with the thinking around our Twitter relationship, by the way. The conversation, the macro conversation around live sports, is there,” Greenblatt said, mentioning the company’s new partnership with X (formerly Twitter) as an official odds provider.

When sports fans don’t have a big game in Vegas bringing them together, social media remains the town square. Even on a random Monday in March, Greenblatt noted that three of the top ten stories on the platform were sports-related.

As an operator that wants to meet customers where they are at, positioning itself within a social network is the next step of the omnichannel experience.

Sports bettors can come to Vegas, be introduced to BetMGM and even come home with the app on their phone, but if BetMGM wants engagement the other 364 days of the year, placing itself at the centre of the sports discussion is essential.

Flagship events like the Super Bowl will always remain great opportunities for activations but the underlying idea of being adjacent to the live sports experience is something that BetMGM, through its X deal, can replicate throughout the year.

SPORTS BETTING

SBC LEADERS ISSUE 30

TALKING to the TAXMAN Rep. DINA TITUS is determined to make significant changes to what she views as outdated gambling taxes, and is picking up support from both political opponents and the IRS. Words by MARTYN ELLIOTT

T

fee of $50 for each employee involved in accepting wagers.

axation stories in the gambling industry media tend to be fairly straightforward to cover.

Operators say they want taxes to be cut, governments say they want tax revenues to rise and economists … well, you can find an economist to support any point of view.

“It’s pretty out of date,” said Titus, who is CoChair of the Congressional Gaming Caucus.

“It was originally intended to go after those unregulated companies and bookies that took bets on sports that weren’t regulated.

Over time, however, it hasn’t been used for that because it’s not a lot of money and it was mostly being paid by Nevada.

All of which makes Rep. Dina Titus something of an outlier, as the Democratic Congresswoman for Nevada’s First District is not just asking for an industry tax to be cut, but to be abolished altogether.

“So I called up the IRS and said ‘where is this money, where is it going, how much is it?’ And they really couldn’t tell me. It just kind of went into the general fund, so it’s no longer being used as intended.

The target of her campaign is the federal excise tax on sports wagering, which is set at 0.25 % of handle plus an annual

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If you’re going to have a handle tax, the money should go back to the state where it’s generated.

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“My feeling was ‘why not get rid of it?’ If you’re going to have a handle tax, the money should go back to the state where it’s generated, or else you don’t need it at all because there are other means for regulation at the state level that are top notch.”

Titus is optimistic that the spread of legal sports betting will help her cause, as it has given the potential repeal a much broader appeal than when the tax was only really applicable in Nevada and New Jersey. There are currently nine bipartisan co-sponsors but, with industry backing, she is confident that number will grow.

“We hope we’ll be able to put together a pretty big coalition, especially if you appeal to Republicans who want to cut taxes.

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Here’s an opportunity for them,” Titus explained.

Not everyone in the Capitol will get on board with the plan though.

In fact, Rep, Andrea Salinas and Senator Richard Blumenthal recently introduced the Gambling addiction Recovery, Investment and Treatment (GRIT) Act, which would set aside 50% of the revenue from the federal sports excise tax for gambling addiction treatment and research.

Titus, however, is opposed to the idea, which believes is “redundant” due to the extensive education and treatment provisions already in place.

“All the states have programs that are run by the states and we have a gaming addiction month every year,” she explained.

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Once you get a little taste for gaming, then you want to go to Las Vegas.

“So I don’t think we need to take this money to create yet another addiction program, when that’s already covered.”

The Congresswoman hopes there may be an opportunity to add the repeal to a tax extenders bill towards the end of the session, which could prove a quicker route to abolition than trying to pass a standalone bill.

While that situation remains unclear, Titus is closer to securing another gaming industry tax change - raising the tax reporting threshold for slots wins.

It currently stands at $1,200 - a limit introduced during the Reagan administration - meaning that the player’s enjoyment of what in many casinos is a relatively small slots win is tempered by the knowledge that they have to fill out a tax form.

Titus’s bill would see the threshold raised to $5,000 and then linked to inflation going forward. She believes the move would benefit players, casino operators and even the IRS, which has to deal with millions such claims each year.

global appeal of Las Vegas, but also the city’s resilience.

All of which explains why she is so confident that the spread of legal sports betting across the US does not pose a threat to the Vegas gaming industry and will, in fact, help the South Nevada economy as it continues its remarkable recovery from the Covid-enforced shutdowns that saw unemployment hit 35%.

Titus acknowledged that there was initially a “great fear that it would bite into what Las Vegas had to offer”, but explained that the opposite had proved to be true.

Nevada-based operators have been able to grow their businesses in other states, while bettors from across the US continue heading to Vegas in large numbers.

“Once you get a little taste for gaming, then you want to go to Las Vegas. I mean, playing on your phone may be fine, but it’s not like being in the bright lights, big city of Las Vegas with all the other things it has to offer,” she said. “So it hasn’t hurt. It may have helped because it’s increased interest.”

The bill currently has 11 bipartisan co-sponsors from across the country, but has gained a perhaps even more important ally - the IRS Advisory Council.

Since the Congresswoman raised the issue, the Council has recommended that the threshold be increased to $5,800 and then indexed to inflation.

While she is positive on sports wagering, Titus does not expect to see regulated iGaming in Nevada in the near future, as she believes the state’s population is too small to support it. However, that does not mean she foresees lawmakers and gaming regulators having an easy time of things in the coming months and years.

“We feel pretty good about having influenced the regulators to do it, which might be easier than having to get legislation passed,” Titus enthused.

“There are a lot of other things coming in the gaming world that are going to create more of a challenge than online casinos,” she said. “You’ve got the use of Bitcoin and betting on esports.

Then there’s the patchwork of marijuana laws and whether you allow it in casinos. And the big one just now is cybersecurity, which is a challenge for gaming operations.

A BRIGHT FUTURE FOR NEVADA As you might expect of someone who spent 20 years in the Nevada Senate and more than a decade representing the people of the Silver State in the US House of Representatives, Titus is a huge believer in not just the

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“So it’s not like it’s a stagnant industry at all.”

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DEVELOPING A SEATBELT FOR GAMBLERS The online gambling industry needs to develop its equivalent of seatbelts to help prevent harm to players, says The Digital Wellness Center’s DR MARY DONOHUE, and they could take the form of microbreaks.

Words by MARTYN ELLIOTT

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inor tensions between family members during major holidays are nothing new, particularly when there’s a big game on.

However, it’s rare that they lead to anything as positive as a tool to help prevent problem gambling.

But that was the genesis of The Digital Wellness Center’s myStridePositivePlay product. As Dr Mary Donohue, the digital psychologist behind the solution, recalls, it was an incident during a family get-together at Thanksgiving that gave her the idea that microbreaks could help gamblers to enhance their mood and protect themselves.

“I watched my brother Tim during one Thanksgiving and he changed dramatically,” Dr Donohue explained.

“This is a man who adores his nieces and nephew, and is always spending time with them, but this one time, my daughter was sitting beside him and he wasn’t engaging, he wasn’t talking to her.

“She was a cheerleader, like her mom, and she was trying to understand the game better, but his mood had shifted. I couldn’t figure out this anger, because it should have been fun.

“Well, it turns out he had a lot of money riding on a football game. Now, my family has bet forever we bet on everything and it’s fun. It’s never been a problem, until this one time it was.

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“

It’s a radical departure that we’re starting to see across the board for preventative addiction work.

“In the end, I gave Tim some of these microbreaks and he calmed down and re-engaged with us for dinner. But as a scientist, I was like - ‘what caused this? What caused this man that’s been gambling for 35 years to be that dumb?’”

“I’ve seen amazing research done on this. I really admire what Crucial Compliance and Mindway AI are doing - it’s excellent work.

They’re like the medics at a crash site, but we’re that seatbelt that prevents damage.

As it turns out, Tim eventually won $17,000 on the game.

However, that result was not enough to deter Dr Donohue from investigating further and she discovered that the issue was a dramatic shift in his mood.

“And we do that through these quick three-minute microbreaks.

It’s a radical departure but it’s a departure that we’re starting to see across the board for preventative addiction work.”

“What that means is his dopamine started spiking. And you start making decisions poorly when that happens. Or if your dopamine goes low, bad decisions are made.

My job is to get that serotonin in your brain running through it so that those peaks and valleys are modulated,” she said.

“Then it came to me when I began to look at what Tim was offered.

All of this responsible gaming messaging is negative. It’s saying, ‘Tim, you’re a bad person. Tim, this is not good. Tim, bad boy. You have to leave.’

“That’s not Tim. Tim was sad. Tim was making a bad bet. Tim couldn’t help himself. So I decided to create a seatbelt for all players like Tim.” That seatbelt became myStridePositivePlay, which utilises microbreaks in the form of quick games and trivia quizzes to help bettors to reset their mood in an unobtrusive fashion.

Dr Donohue explained: “We give players access to these quick, fun microbreaks that were originally developed in 1980 - and that we’ve refined with AI - that let you modulate your mood before you start gambling, maybe while you’re gambling and when you’re done gambling.

“That allows for a proactive mental health approach to responsible gaming. It doesn’t just target the people who trigger the markers of harm, which are excellent, by the way.

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FOLLOWING THE SCIENCE While the idea of integrating quizzes and puzzles into a sportsbook or online casino may seem strange, the concept is based on in-depth research.

“I’m a very big believer in science and the basis of science and applying that to behaviour,” Dr Donohue said. “What we know from the data is that behaviour modification can occur very quickly. It can occur in less than three minutes. But it needs to be stimulated positively.”

That stimulation can come from the myStridePositivePlay solution, which can be easily integrated into an operator’s platform. To players it will just appear as a button or QR code - a simple part of the customer journey that they can choose to interact with or perhaps be nudged to interact with.

While players enjoy a puzzle or a droodle designed to modulate their mood, there is some magic going on in the background to benefit the operator. No personal or identifiable data is collected while the player takes their microbreak, but they are asked how they feel after playing and time played statistics are collected.

“We have all this data based on the 44,000 engagements that we have studied in the last two years. This delivers business value to partners, as it begins to demonstrate the mood of your players pre-play, mid-play, postplay,” she detailed.

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cigarettes were in 1964 when the Surgeon General came out and said, ‘oh, by the way, here’s data that shows you’re being conned’.

“It starts to give you satisfaction and a refinement of your strategy to engage customers, because it’s all about the customer benefit and the business benefit.

Those two are married with our plan.

“Right now, the political environment is very focused on harm caused by digital.

And anything we can do to reduce that harm in this industry is imperative.

“What we do from a regulatory standpoint as this is going on, is it supports proactive mental health and safer gaming, by providing insight on how mood impacts player satisfaction and healthier support.”

“Online gambling needs to do what I’m suggesting to get data that shows they are helping people - because right now you have no data. There is no data that demonstrates mood. There is no data that gives people the opportunity before they start gambling to protect themselves.

USING TECHNOLOGY FOR MENTAL HEALTH Dr Donohue’s career path is, to put it mildly, an unusual one. Her background is in television and public relations, but she was encouraged to go back to grad school after her master’s by a number of friends who believed in her ideas about creating sustainable change in corporate social responsibility and mental health.

“It’s all at the end. It’s all backwards. Even cigarettes have warnings on them, alcohol has warnings on it. But we don’t need a warning, we need a mood setting because if your dopamine spikes or your dopamine drops, you stop making good judgments or you stop caring about the outcome.”

“One of those people, believe it or not, was Paul Newman. He was such a believer in what I was doing and how I was doing it. Such a wonderful man,” Dr Donohue recalled. “He allowed me to do my internships with his Hole in the Wall Gang camps and also with his corporate social responsibility initiative in Manhattan.”

To spread the word, Dr Donohue has written a new book, ‘Digital Addiction: What is it and how one sister and brother dealt with it’, that explains her approach in a very personal way.

“The book is designed for families, for players, and for businesses. To help them understand strategies to avoid digital addiction, and to also understand what it is.

Her journey continued with best-selling books, Tedx Talks and the development of a national mentoring program for students, among many other things. As she increasingly focused on digital psychology, Dr Donohue founded The Digital Wellness Center in 2020 and has since developed AI technology that gamifies the reduction of stress and promotes positive mental health.

The book isn’t an academic text - it’s the story of my brother and I.”

Companies such as Microsoft, Walmart and American Airlines now use that technology and, judging from the initial reaction from the gambling industry, many sportsbook operators will soon follow suit. The company won Flutter’s Alpha Hub Play Well Challenge last year and will move from trial stage to being live with operators in the third quarter of 2024.

Dr Donohue believes that myStridePositivePlay will be hugely beneficial to players, but can also be central to avoiding a potentially huge pitfall for the online gambling industry.

“In my opinion, and I’ve worked in tobacco and alcohol before, gaming is on the cusp,” she said. “You’re at the point where

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INDUSTRY TAKE NOTE PLAYER PROTECTION IS STILL A WORK IN PROGRESS

While the gaming sector has been busy beefing up its player protection systems, the old adage that it’s never enough has been never more applicable as regulators seek to make stakeholders more accountable than ever. Entain’s MARTIN LYCKA explains why.

Words by CHRIS MURPHY

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example, what would work in the UK and Spain may not work in Louisiana.”

he gaming industry still has much to do on the player protection front according to Martin Lycka, SVP for American Regulatory Affairs and Responsible Gambling at Entain. Speaking ahead of his SafeBet Show appearance at this year’s SBC Summit North America, he compared the situation to a work in progress, advising stakeholders that they need to up their efforts in conveying positive messages around player protection to both the public and the media.

Now based in the US, Lycka has full sight of how the market is maturing and how its approach to player protection is evolving.

“A growing number of states that have introduced sports betting or sports betting and online casinos - led by what is now my home state of New Jersey - have or are in the throes of introducing player protection standards, or additional player protection standards,” explained Lycka.

“That includes responsible gambling and regulation and there have been additional efforts in the space of cyber security and anti-money laundering processes. These are constantly being reviewed. And I suppose what’s most visible are the rules that ultimately determine what the industry’s advertising and marketing look like.”

Generally, he said, the industry has embraced player protection. “A lot has been done but at the same time it’s still a case of work in progress. I would expect the industry to do even more. The other critical point is that due to applicable regulations, cultural idiosyncrasies, different tastes and approaches in the market it just can’t be a one-size-fits-all solution. For

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“

The industry is trying hard to convey responsible gambling and player protection messages.

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SBC LEADERS ISSUE 30 He added: “To give you one example, Ohio has decided to severely restrict the scope of proposition bets that will be available on college sports-related markets. To cut a long story short, I believe that the overall trend in the maturing US market is towards introducing a higher level of consumer protection.”

other states. Some states such as Massachusetts, New Jersey and a few others have also introduced certain restrictions on offering betting on college sports and I think that’s one of the key topics that will have a practical impact on the industry. It’s one of the key issues that Mark and I will touch on.

Lycka is looking forward to this year’s SafeBet Show in New Jersey: “I hope the audience is looking forward to it as well. We will have Mark Hicks, Managing Director of Enforcement at the NCAA, which dovetails nicely with what I’ve just said about betting on college sports.

“Another critical topic - and this is in the public domain - is that the NCAA is reexamining its relationship with betting.

As everybody will recall, professional sports were originally against the legalisation of sports betting in the US. Post the very famous decision to overturn PASPA in 2018 they changed tack and started approaching the sports betting ecosystem as both a revenue opportunity and also as a way of further

“They have been involved in the Ohio ruling and I presume that they will be participating in conversations with

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“

The overall trend in the maturing US market is towards introducing a higher level of consumer protection.

reinforcing and enhancing the level of protection they afford to their players, be it responsible gambling-wise or more significantly sports betting laws.

“The NCAA, however, has taken a consistent stance that betting is a no-no. And I totally see why, because ultimately it is about people who are mostly not of an age to bet. To make it slightly circular, at the same time it could still be a revenue opportunity for the NCAA if it’s done smartly. So long story short, the Safe Bet Show is ready to ask Mark Hicks about the latest stance of the NCAA from all things betting and whether its long-held view may or may not be changing.”

Lycka is also a well-known advocate of using professional sport stars to promote player protection education programmes. Talking about his experience on this front, he said: “We had the absolute pleasure of welcoming Amani Toomer, former NFL wide receiver and punt returner for the New York Giants and winner of Super Bowl XLII, at last year’s Safe Bet Show at SBC Summit North America. He’s been standing with me all along he sits on the Entain Foundation US board and he’s most certainly someone who can speak to people’s hearts.

“I’ve also had the pleasure and privilege of working with Charles Oakley, the former NBA player who has played for a number of franchises including the New York Knicks, Chicago Bulls, Toronto Raptors, Washington Wizards, and Houston Rockets.

We’ve supported Charles’ charity programme which is designed to effectively distribute meals in disenfranchised communities here in the States.”

Lycka believes these represent positive examples in terms of the approach that Entain is taking in addressing player protection. “I do believe the industry is trying hard to convey responsible gambling and player protection

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messages,” he noted. “But we do need to be even more efficient in what is being done and why we have done it.

“Folks like Charlies and Amani help convey that message. I’d like to believe that they’ve made the public pause and think that this guy who used to be a big gun in his respective league has been exposed to the pressures and vagaries of sports betting.

If he’s taking it seriously then I should be taking it seriously.

The bottom line is that those guys should help us convey the importance of doing things safely and sustainably.

“Folks out there will get to hear that message not only from the industry, but also from these guys who embrace the cause because they believe it. They do not represent the industry, they genuinely care about the wellbeing of people.”

On the next steps that the industry should be taking, he advised: “To some extent I’m talking about the US industry.

It has changed its stance on responsible gambling and revamped its policies and protocols and introduced customer protection tools. It’s critically important to convey these messages to the public and to the media while taking into account that it’s a moving feast that more needs to be done.”

Lycka also believes that there should be a quid pro quo for those responsible operators that have endured the regulatory pain of getting licensed. He concluded: “In return for having been through the regulatory processes, the regulators should be protecting them from the black market operators.

In turn, that should allow us to figure out how we can enhance consumer protection standards in an efficient way without affecting the ability of the industry to continue offering attractive product propositions.”

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sports platform

casino Everything is possible.

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THE RISING CYBER THREAT LEVEL PATRICK GARDNER, Chief Security Officer at C8 Secure, a Continent 8 company, talks through some of the biggest cyber threats operators face and what they need to do to mitigate the risk of falling victim to an attack.

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yber attacks pose an immense and rapidlyescalating threat to online gambling operators.

The damage from a successful attack can be massive, with phishing alone causing more than $60bn in losses across all sectors globally in 2022 according to the FBI.

“

The average loss from an iGaming sector data breach now sits at around $4m.

Of course, the impact goes beyond just financial; it can cause irreparable damage to an operator’s or supplier’s reputation, especially in the event player data is compromised or funds stolen.

Criminals are aggressively and relentlessly targeting the online gambling industry with a range of attacks including phishing, credential stuffing, exploiting web application vulnerabilities and of course, DDoS. The volume of attacks is incredibly high, too. In Q2, we blocked 1,106 attacks alone and while that number dropped throughout the rest of the year, we still blocked 184 attacks in Q1, 359 in Q3 and 187 in Q4.

This prevalence of attacks corresponds to the exponential growth of the iGaming sector, driven by the opening of new markets in the likes of Eastern Europe, the US and Latin America.

Why? As more jurisdictions move online and player accounts pile up balances, it provides criminals with a goldmine of targets.

Indeed, massive credential stuffing attacks like that against the largest American daily fantasy sports and sports betting company in September 2022 highlight the scale of this problem, with $300,000 stolen from player accounts - the operator ultimately refunded these losses.

Overall, cyber attacks in the industry are on a meteoric

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rise with TechHQ reporting a staggering 1,000% annual increase. The average loss from an iGaming sector data breach now sits at around $4m, before factoring in the cost of refunding players and/or reputational damage.

It’s important to make clear that no operator or supplier is immune and while the risk in some markets is less than others, nowhere is truly safe.

Regulatory factors certainly help to mitigate risk, and those markets with stringent cyber regulations in place and a mature cyber landscape do see fewer successful attacks than those with weak frameworks and an immature cyber ecosystem.

For example, markets such as Brazil, Peru and the Philippines have minimal cyber regulations and see higher rates of attacks getting through. The level of cyber awareness and technical infrastructure also plays a role - those with advanced technology and cyber hygiene are at a lower risk for operators.

The shift towards mobile which in many countries is now the dominant channel for sports betting and online casino play - has also opened up additional attack vectors with security often weaker on mobile apps and with threats like device malware or simswapping enabling account takeover.

A similar shift towards digital payments has opened up new targets for criminals to go after, too. Between 2019 and 2021, API attacks jumped a massive 681%.

Phishing and spear phishing attacks have increased dramatically, rising 26% globally in 2022 per FBI data.

And website content scraping sees thousands of new scam sites appear daily.

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connection attempts, and known breached credentials blocked.

Social engineering scams are becoming more advanced, leveraging manipulated chatbots like ChattyGoblin to exploit staff before dropping malware. These techniques provide entry points for more advanced fraud like credential stuffing for account takeovers.

Our WAAP integrates with our Security, Information and Event Management (SIEM) system to correlate anomalous behaviours indicative of credential stuffing or ransomware campaigns across systems. Machine learning models further analyse traffic patterns to detect attack surges. Together, this allows early threat detection before account takeover occurs.

These evolving and sophisticated tactics mandate continuous security enhancement to match rapidly adapting adversary techniques. API attacks have also exploded as criminals take advantage of rapid API adoption to perpetrate injection attacks, data scraping and account takeover.

With account takeover attempts against iGaming sites surging 149% in 2021, solutions like WAAP and SIEM integration are essential to get ahead of evolving credential-based attacks.

Proactive protection is the key to preventing account compromise and fraudulent transactions.

This industry has a heavy reliance on APIs, with the average operator working with tens, sometimes even hundreds of third parties and using between 20 and 100 APIs for both consumer-facing and internal aspects of the business.

This then needs to be underpinned with DDoS protection to fend off the rising number of attacks being launched to take operator platforms, systems and networks offline.

The scale of the threat is further evidenced by Fortinet reporting 246 million web application attacks in the gaming industry alone in 2020, accounting for 4% of all attacks.

It’s also important to protect against attacks on mobile devices, and our C8 Mobile Protect solution does this by utilising Corrata’s unique technology to strengthen mobile end points against security threats.

Credential stuffing is another serious headache for operators, with criminals using automated software to launch brute-force login attempts across systems. Verizon found credential stuffing enabled 93% of breaches. The prevalence of breaches provides ammo for these username and password attacks.

We also have a dedicated phishing offering, SafeBait. This is a managed service that offers customised phishing defence solutions, integrated effectively into an operator or supplier’s existing security architecture.

Given that operators are fighting fires on many fronts, Continent 8 utilises a multi-layered approach to proactively identify and mitigate the threats iGaming operators face.

While implementing tools and solutions to combat cybercrime is essential, just as important is education and ongoing security awareness training for staff, helping to address the human element that enables social engineering. After all, human error shockingly accounts for the majority of all cyber attacks.

A key component is our Web Application and API Protection (WAAP) solution. This provides real-time monitoring of all log-in attempts and credential use across platforms.

Ultimately, a multi-layered approach is the only way to effectively put a ring of steel around operations and to ensure an attack can be mitigated - an attack that is now a case of when and not if.

Advanced heuristics and a database of billions of compromised credentials allow rapid flagging of suspicious logins. Limits can be imposed on

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Multi-layered cybersecurity solutions.

With an unprecedented rise in cyber attacks and data breaches, our Secure offering protects customers from the ever-changing cybersecurity landscape, offering bespoke and personalized protection services.

Built on a resilient global network spanning 100+ locations across 4 continents, we provide a layered security approach to safeguard organizations.

Safeguarding web applications and APIs

Fully managed prevention, detection and response solution

Maximize security while minimizing your efforts

Identifying vulnerabilities in your infrastructure

Tools to monitor and analyse your network traffic

Complete cloud backup and recovery

Simulate and prevent social engineering and phishing campaigns

Your complete defence against mobile threats

Effective, scalable protection against DDoS WAAP

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SIEM & SOC

sales@continent8.com |

CASINO

POWERED BY

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CASINO

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Online casino the next battleground?

PETER EKMARK, CEO of PlayStar Casino, dives into all things iGaming as he discusses player engagement, regulations and the growing importance of gamification.

Words by ERIN GALLAGHER

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ot a day goes by without one company or another discussing the key to engaging with new player-bases.

Engagement has, understandably, become a major talking point across the iGaming industry as of late, especially for those looking to gain a stronghold in the US market.

With 38 states plus Washington DC offering legal sports betting (at the time of writing), and seven open to regulated iGaming, the battle to gain market share is well and truly underway.

The challenge that many sportsbooks and casinos are now facing, however, is setting themselves apart from the crowd. Some may choose to go down the branding route, others may place more emphasis on geography. But PlayStar is doing something different altogether.

BEATING THE BLACK MARKET WITH REGULATED ONLINE CASINOS PlayStar made its entry into the US market back in 2022 and, since then, has become one of the fastest growing iGaming brands in New Jersey. But unlike other operators, the PlayStar team chose to take a unique approach to its offering by solely focusing on online casino.

More states have legalised sports betting compared to iGaming, so you may be wondering why the team took this approach.

“Casino has long been an integral part of the entertainment industry within the US,” explained Ekmark.

“You only have to look at cities such as Las Vegas or Atlantic City to see that casinos are an incredibly popular form of entertainment - people don’t just visit these cities to gamble, but for a new experience.

“Around 50% of US adults have visited a land-based casino, which differs somewhat to Europe, where

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that number isn’t quite as high. It is this demand for entertainment that I believe is going to be a driving force for online casino to become more popular across the US market, regulations permitting.”

Of course, regulation is an incredibly important factor when it comes to the expansion of online casino across the US market. The hope from many is that we will see an acceleration in the number of states looking to adopt iGaming legislation in 2024.

Ekmark noted that such regulations will not only have the benefit of combatting black market operators but will also give players a more diverse range of products to enjoy.

He said: “Eradicating the threat posed by unlicensed operators is, first and foremost, beneficial for players as it ensures they have access to a range of safer gambling tools and protection for their funds.

Players don’t get that with an offshore operator.

“Combatting the black market also has knock-on effects for the individual state legislatures too.

Ultimately, entering the US market is a costly affair - there is a fee for your licence, the technology you use, marketing your brand.

“On top of that, you must remain compliant. State governments are very good at ensuring that everyone is meeting the highest possible standards. But there is still that spectre of unlicensed operators; that threat still exists. These operators don’t pay for a licence, and they certainly don’t contribute to state tax revenues either.”

From a regulatory perspective, online casino may be behind sports betting, but in the seven states where it is permitted, iGaming is growing increasingly popular in terms of audience engagement. With that comes an added pressure to deliver a stand-out experience for bettors.

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Players don’t want games that are difficult to understand, they want to enjoy their casino experience.

AN ABSOLUTE NECESSITY For Ekmark, there is no one “right answer” when it comes to engaging with, or retaining, players. The player acquisition strategy that you use can be influenced by a number of different factors, ranging from what type of player you are looking to attract, right down to the state in which you are operating.

As a brand that is solely focused on online casino, the PlayStar CEO believes that gamification can be an effective tool to not only elevate the gameplay experience for players, but to also bring something unique to a saturated New Jersey market.

According to Ekmark, gamification is no longer a “nice to have” feature to bolt onto your casino games.

It has, in recent years, become an absolute necessity, a “silver bullet” for rising acquisition costs.

The challenge with gamification, he explained, is balancing simplicity with that additional layer of gameplay. As the adage goes, sometimes less is more. He said: “Gamification is going to become absolutely essential, both for PlayStar and for the wider iGaming industry too, especially as we look to deliver new experiences for players.

“I’m a big believer in simplicity. At PlayStar, creating the best possible player experience is central to our business operations, and simplicity happens to be something that we look to achieve. Ultimately, players don’t want games that are difficult to understand, they want to enjoy their casino experience, and one way of achieving that is by offering games that are both simple and engaging.”

While the extent to which gamification is needed across the iGaming industry is still to be determined, Ekmark believes it

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is going to be something many companies will look to explore in the US market. But it isn’t the only tool that PlayStar will be relying on in 2024.

Making its debut in March, PlayStar made its first foray into the live streaming space with the launch of Casino Stream, in collaboration with SGG Media.

With live streaming already an extremely popular engagement tool in Europe, PlayStar is confident that this new show will help introduce online casino to new audiences.

Ekmark concluded: “We were very excited to partner with SGG Media to bring our online casino products to the masses across the Garden State. Live streaming is a great way to reach new audiences and deliver a more personalised experience, and we can’t wait to see what our players think.”

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CASINO

SHARING EXPERIENCE TO REACH SHARED GOALS

Supporting career development and helping people to build out their professional networks are key goals for Global Gaming Women. The organisation’s President LAUREN BATES tells SBC Leaders how its new mentorship programme will help it to achieve those aims.

Words by MARTYN ELLIOTT

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veryone could benefit from a mentor at certain points in their career, but finding the right person to offer that guiding hand is not always easy, particularly if you are part of a group that has traditionally faced additional challenges in the workplace.

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It’s all about creating that safe space for women to gain the support they need for their careers.

That’s why Global Gaming Women has decided to launch a new mentorship programme that will connect women from across the betting and gaming industry to share knowledge, provide advice and encourage members to grow their professional networks.

Lauren Bates, the new President of GGW, explained: “Mentorship is one of the things women crave so much. Our male counterparts have golf outings and all these events where they get to socialise and network with others in the industry, but a lot of women don’t get that invite.”

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We talk a lot about helping our members to create their own personal board of directors.

To help to change that, GGW has long run Lean In Circles in partnership with the Sheryl Sandberg founded nonprofit LeanIn.Org, and more than 300 of its members now participate in the groups with their peers. That has proved to be a huge positive for women in the industry, but GGW is now ready to go a step further.

“We are currently getting ready to kick off our formalised mentorship programme and we have 100 women set to take part in the beta pilot for us,” said Bates.

“It will use matching software that asks our members to describe their skill sets and also what they are looking for, then creates mentorship pairings. It’s all about opening things up for our members and creating that safe space for women to gain the support they need for their careers.

“Some organisations already have a lot of female representation and have opportunities, but a lot of organisations don’t. This will provide introductions and networking opportunities for women in those companies, particularly the smaller organisations we work with.”

The scheme will not be limited to just traditional mentorship in which senior staff guide junior colleagues.

It will also create chances for experienced executives in the industry to learn new skills, such as how to master social media, from their younger counterparts.

“There’s a ton of opportunities to really grow your network,” Bates enthused. “You’re going to have opportunities to have potentially multiple mentorship pairings. So it’s really exciting.”

One other feature of the mentorship programme is that women will not be paired with colleagues from their current employer, in order to create a safe space for them to ask questions without fear of judgement.

The other benefit of this approach is that it will enable women to build out their professional network and make connections who can help them to get ahead.

“Women can often be their own harshest critics, so having a great group of peers, sponsors or allies can really help. We talk a lot about helping our members to create their own personal board of directors,” Bates continued.

“I have a personal board of directors who I can go to when I need help, have a question, or need some guidance. But it can take a long time for women to build that group and that network.

“When you are looking for a job, typically it’s not going to be your friends who are going to be hiring, but it could well be your network right outside your closest circle. So you need people who are going to be talking about you positively and putting your name forward for things.

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“The networking and mentoring that allow our members to get to know other individuals in the gaming industry are really valuable in helping women to open up career opportunities.”

48% of the industry’s total workforce are women, but that proportion drops the higher up the ladder you look and at senior level the figure is closer to 30 per cent.

PUTTING THE GLOBAL IN GGW

Bates said: “There are two major challenges that we are working on. One is how to help women to move from entry-level positions into management, as for every 100 men who are promoted, only 87 women are and it becomes really hard for us to catch up.

Then we also need to help women who have moved into management make the jump from mid to senior level.

GGW began life as part of the American Gaming Association back in 2011, before becoming its own non-profit in 2016. In its early days it was widely perceived as an organisation focused around employers in Las Vegas, but more recently it has grown rapidly into a truly worldwide organisation.

Bates, a well-known figure in the industry from her 17 years with Konami, attributes some of that growth to the unique circumstances of the pandemic, during which a lot of GGW’s programming switched to online and allowed women working in a host of different markets to connect.

“COVID was actually very positive for us as an organisation and really catapulted not only our membership, but also sponsorship and allyship,” she explained. “In the past there was this myth that it was a Las Vegas organisation, a very exclusive group and that if you weren’t in Vegas it really wasn’t for you.

“But during COVID, we really had to transition a lot of our in-person events, our programming and education into virtual offerings. That’s when, all of a sudden, we saw this massive boom in membership. Not only reach here within North America, but internationally as well.”

“Education is at the foundation of our organisation and so, to tackle those challenges, we are working on educating and empowering our members to help them achieve their career goals.

“As an organisation, we have doubled our programming year-over-year from 2023 to 2024 and we are trying to be really inclusive, so whether you’re an entry-level employee or a senior executive, whether you are in Vegas, or Australia, or London, or India, we have something that benefits you.”

While there is still much work to be done to achieve a greater gender balance in the industry, there is no doubt that the situation is improving and, with GGW helping to change ingrained mindsets, progress looks set to continue.

So is the day when GGW’s work is done and it no longer needs to campaign in sight?

The members from all over the world who joined during lockdowns for virtual masterclasses and networking sessions have not just stayed in the group, they have also spread the word.

As a result, GGW now has more than 8,000 members, making it potentially one of the most influential groups in the industry.

“I hope so. I will say statistically, at least in my lifetime, it doesn’t look likely. But I hope so, I really do,” Bates concluded.

REACHING FOR THE TOP

“And I can tell you, from a GGW perspective, we are just getting started. I could not be more excited about where we are and where we are going. We are here and we are here to do big things, and we want you all to join us.”

That influence can only be a good thing, as while the betting and gaming industry performs much better than many comparable sectors, it still has a noticeable gender imbalance. Around

“We’ve made so much progress. Look at the AGA statistics when it benchmarked in 2011. It was a very different landscape. It was a very different story, but we’re moving forward.

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David Vialpando

George Jenkot

THE INVISIBLE CRIME Human trafficking is a crime that often goes unnoticed but, with proper training, casino staff can help to change that.

Words by VIKTOR KAYED

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It’s a very insidious process evolving over time.

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ou’ve either had human trafficking or you have human trafficking - you just haven’t realised it yet.” These are the words that still linger in my head after watching what for me turned out to be the most eyeopening panel in my two years since joining the industry.

A sense of disgust and some primal desperation wash over me as I come back to this statement more than a month after hearing it for the first time, having to push these feelings aside so that I can write what you’re currently reading.

Feelings, mind you, not in the slightest formed by the industry, our industry, which is otherwise always impeccable when it comes to ensuring an individual’s safety and protection.

But feelings towards those who use our industry to commit unspeakable acts of depraved human behaviour, namely human trafficking.

The good news is that there are people in this industry who take this issue to heart, and I’m sure that you, just like me, will be relieved to hear that they are doing everything in their power to stop this from happening.

Two of those individuals are David Vialpando - the Executive Director of the Pokagon Band of Potawatomi Gaming Commission, and George Jenkot, who is the

Vice President of Security and Surveillance at Firekeepers Casino Hotel. As you will soon find out, their actions are fully devoted to preventing human trafficking and saving lives.

A special thank you must also be given to Sean Topchi, Director of Business Development at Kinectify, and the team at Vector Solutions who made sure that the following gut-wrenching conversation was as informative as possible.

So, let’s start with the basic concept of human trafficking. A term otherwise coined as ‘modern slavery’, it involves individuals profiting off the labour and sex services of victims through the means of coercion.

In the US, approximately 300,000 people are trafficked each year and those are the ones accounted for. The issue does not discriminate by race or nationality. In fact, apart from immigrant minorities, most of the victims trafficked in the US are US citizens. A big percentage of them are female.

Over the years, traffickers have perfected the formula of reeling in their victims by targeting vulnerable individuals and trapping them away from their cohort through force, fraud, and coercion. As you can imagine, the most vulnerable groups in society are represented by the homeless,

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chemically dependent, those who are economically challenged. And yes, unfortunately that includes children as well. “And that’s by design,” Vialpando said.

Traffickers are skilled in addressing these vulnerabilities by manipulating their victims and creating a false sense of security by giving them either praise, recognition, money, or “love”.

“And then there’s the introduction in the case of sex trafficking,” added Vialpando. “It usually involves: ‘Hey, I have some friends and they’re lonely. If you have sex with them it’s totally fine with me’.

“Or, it may be: ‘Hey, I’ve given you shelter, I’ve given you money, I’ve given you food. Now it’s time for you to start earning your pay’.”.

Gut-wrenching, as I promised.

“It’s a very insidious process evolving over time.”

And once this line has been crossed, it becomes almost impossible for the victims - many of whom you must remember are children - to get out of the situation.

Impossible, because at this point the victims are completely dependent on the trafficker. Keep in mind, Vialpando calls this type of crime “invisible” for a reason.

It happens in plain sight, especially in casinos, which I’ll touch on a bit later.

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Sean Topchi

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It’s literally as if the trafficked person doesn’t exist.

If it happens in plain sight, can’t the victim just run away or alert somebody? Unfortunately not, as they are already being “brainwashed” to quote Vialpando.

At this stage traffickers control every aspect of the victim’s life - from their identity, to food and shelter. This allows them to feed the victim just enough food to survive - keeping them constantly tired and away from the thought of escaping. Something I found particularly chilling.

Now, why are casinos, especially those with hotels, an “ideal location” for this to occur?

According to Vialpando, it’s because of the transient population and the provision of private rooms. That is unless you have a staff at hand that is trained to recognise the trafficker-victim dynamic.

To ensure this is the case, the Pokagon Gaming Commission’s Four Winds casinos have come up with an awareness campaign that gives staff the tools necessary to deal with such situations.

The key, according to Vialpandoo, is to “observe and report” abstaining from the urge to directly intervene as this could place the victim’s life in danger.

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Because the trafficked person is often deprived of any identity and rarely leaves the side of the trafficker, Four Winds staff are trained to look for abnormal communication behaviour.

One common red flag is when a person answers questions on behalf of another or handles all of their identification for them.

The same is being taught at Firekeepers Casino Hotel, as Jenkot explained.

COMPLIANCE BEST PRACTICES FOR HUMAN TRAFFICKING

“One of the things that we ask our staff to do is to make note of cases when another person interjects when someone else is asked for their ID,” Jenkot said. “It’s literally as if the trafficked person doesn’t exist.”

By Sean Topchi, Director, Business Development for Kinectify

When this happens, surveillance and security is alerted, and the issue can be further escalated to local authorities.

This is why Vialpando - a law enforcement veteran - believes that having a good working relationship with police authorities is vital for casinos looking to prevent human trafficking.

Are your security and operations teams coordinating with compliance so they can file a SAR? Referring cases to law enforcement agencies (LEAs) does not preclude a casino from having to file a SAR (unless it is for robbery or burglary).

In fact, Four Winds conducted several on-premise undercover operations with the Pokagon Tribal Police Department, where traffickers were lured in and then brought to justice.

Filing a SAR, in addition to cooperating with LEAs, allows information related to human trafficking organisations to be dispersed to LEAs nationally to potentially identify rings that spread beyond local and state borders.

The result - not enough vehicles to apprehend everyone that showed up.

Here are best practices when filing a SAR on Human Trafficking:

“They were taking people to jail until they ran out of police cars.”

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Unfortunately, Four Winds is not an isolated case. “Any casino with a hotel - you’ve had human trafficking or you have human trafficking, you just haven’t realised it yet,” Vialpando concluded.

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Fortunately, now that you’ve gone through this article, you know a bit more about the issue and who to contact if you want to make our industry a safer place.

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• •

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Identity the main law enforcement contact and their info to be included on a SAR. • LEAs from different jurisdictions can use this information to collaborate with the originating agency.

Input all available contact information on individuals involved in activity • LEAs frequently search phone numbers, emails & IP addresses where they do not have other personally identifying information in a case.

Include the key term “HUMAN TRAFFICKING FIN-2020-A008” in 2 Filing Institution Note to FinCEN and in the SAR narrative.

Select SAR Field 38(h) Victims should be noted in narrative but not considered subjects of a SAR.

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FULFILLING the AMERICAN DREAM ERIK NYMAN, President of EveryMatrix US, tells SBC Leaders how the European sportsbook and online casino supplier seized the US opportunity and is finding success stateside.

Words by CHARLIE HORNER

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t is now six years since the repeal of PASPA and the subsequent rush of legalisation of both sports betting and online casino in the US. It may be a well-worn cliché, but the US instantly became the land of opportunity for both domestic and international stakeholders seeking global growth.

One such company is EveryMatrix, an online casino and sportsbook supplier headquartered in Bucharest, Romania.

The firm opened up an office in Miami four years ago to propel its ambitions of being a leader in the US market.

Despite its late market entry, Nyman - tasked with leading EveryMatrix’s stateside operations - has assembled a team that has built up plenty of success in a short space of time.

oriented. We are very close to our customers and try to be an integral part of their strategic initiatives and roadmaps. So it’s very focused on sales, account management and business development.

“I think where many fail is that they have a short horizon on their return on investment. Hiring in the US is expensive, you have to pay insurance, amongst other things, so you should really see this as a five to 10 year project, before you get return on the investment.”

While rooted in Bucharest, EveryMatrix is not bound to the eastern European nation. The firm has offices globally stretching from Changsha, China, to Yerevan, Armenia.

But how does a firm with such a large footprint foster a winning culture?

And how has the Miami office and by extension the US operation, integrated into that umbrella?

“I’m very passionate when talking about the team,” Nyman told SBC Leaders. “Our local team in the US is business driven and customer

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Where many fail is that they have a short horizon on their return on investment.

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Our customers are looking deeper into enhanced product quality.

Nyman elaborated: “Overall, the culture we have here at EveryMatrix Americas is no different to EveryMatrix as a whole. I am a person that likes to establish new business products and get into new markets and verticals and I would say EveryMatrix is one of the most agile and experimental companies in this industry.”

EveryMatrix came to the US with a simple mission in mind: to deliver new and exciting products and features to sportsbooks and online casinos. This, the ethos determines, will bring new and interesting games and game features to US consumers, creating a stronger user experience.

will demand more of them.

“Over time, the market will also understand the necessity of having these features,” he said.

“Europe is surrounded by a lot of restrictions in terms of incentives for players but, in the US, it’s more liberal. That makes the rewards of providing these much greater and it’s a bit strange that these features haven’t been served to the market yet.

“So, we see a great opportunity to be a leader in sourcing content and providing the right tools that essentially creates a better experience for the players.”

“In my opinion, the market has been underserved with casino platforms and aggregators that don’t support bonusing,” Nyman said, outlining the firm’s key differentiators. “We provide multiple suppliers, free spins, and tournaments, and other perks that you don’t see or are very limited.

While entering the US has an immense opportunity for EveryMatrix, no growth comes without its challenges. As sports betting states rolled out rapidly between 2019 and 2021, operators’ priorities have been to launch in new states. With 37 sports betting states and seven online casino states, expansion has been the key priority for operators, which Nyman observed created a challenge for suppliers.

“We really tried to not just bring new content to the market, but to bring new features and functions.

We provide a wide variety of products, and that is new to this market.”

However, as the state launches have slowed down and older markets begin to mature, EveryMatrix is ready to meet a growing demand for enhanced product quality.

In its aim to be the go-to supplier of variety, EveryMatrix US, under Nyman’s tutelage is bringing European-style features and adding a US spice to them.

Underlining his belief that there is an underserved market in the US, Nyman explained that local audiences will not only get used to these types of features, but

“Our customers are looking deeper into enhanced product quality and it fits very well with what our ambitions are. So we are entering the market at a good time. It’s come to a maturity point where you really start to assess quality and we bring a lot to the table there. If you’re just looking at the casino side, more branded content

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that resonates with the players they feel comfortable with.

Jackpot products are something that we are delivering to the market as well as high-quality slot games.”

One of the greatest challenges in the US is the fact that state launches are hard to come by, particularly in the online casino vertical. In 2023 only Rhode Island legislated for iGaming, giving Bally’s a monopoly in the process.

Having observed developments in the statehouses over the last few years, Nyman is sure that legislators are missing an opportunity in neglecting iGaming. However, he reiterated that when new opportunities do arrive, EveryMatrix will be ready to seize upon them.

“I think one part of that is that it’s still kind of surrounded by an unfounded narrative by critics that iGaming cannibalises landbased gaming. That is not true.

You can go down to Atlantic City and go into a casino and you will see just by looking at the demographics that you have a pretty ageing group of patrons that visit these casinos and online there are young people who have never been to a casino, so iGaming should be more embraced in my opinion.

“We came into this market some three years ago, we are building market share in the states we are already in and fully prepared for new states as they open.

We follow our customers where they go and grow our business together.”

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GAMOMAT’S STRATEGIC APPROACH

DRIVING GROWTH IN iGAMING WORLD

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Over the years GAMOMAT has earned a reputation as a force in online game development in Europe, as its Founder and Managing Director DIETMAR HERMJOHANNES explains.

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In what is a very dynamic and flexible work environment, these clearly defined and carefully formulated values serve to provide employees with guidance and orientation to help them to build an affinity with the company.

n the dynamic world of iGaming, standing out requires not just originality but a deep understanding of what players want. Enter GAMOMAT, a German-based online game developer that has been a catalyst in the industry since its inception in 2008.

Hermjohannes expressed immense pride in the company’s approach stating: “Our diverse team is at the core of our success.

Open communication and feedback, curiosity and personal growth, trust and reliability make GAMOMAT an inspiring and constructive place to work.”

With a robust legacy rooted in the landbased market, the company made a strategic pivot to the online realm in 2016, a move that has seen it become a wellknown brand in more than 30 countries with more than 150 games.

DEVELOPING GAMES FOR DIFFERENT MARKETS

The company’s portfolio is a testament to its versatility, boasting a mix of classic titles like Ramses Book, Crystal Ball and Fancy Fruits. These are complemented by highly-engaging series such as Fire Series and Respins of Amun Re. The entire portfolio is designed with fairness and player engagement at the forefront.

With over 15 years’ experience, the GAMOMAT team has become experts in understanding what moves the needle in a range of different markets. Analysing the unique tastes of different players has enabled our co-workers to find the perfect solution to extending the portfolio for new audiences. A new goal within the expansion strategy in developing games for the US market.

Reflecting on the company’s journey, Founder and Managing Director Dietmar Hermjohannes shared: “Looking back and seeing what we have achieved with GAMOMAT, I can hardly believe our success. A passion for games and my enthusiasm for people were the key drivers behind the establishment of the company.

The regulated US online market offers significant potential and there has been tremendous progress in the first states to regulate. Before embarking on this next chapter, extensive analysis and research was undertaken to fully understand the expectations of the US player base. This will represent a major achievement for the company.

“Our ethos - Ideas, that work - acts as the inspiration behind the success of developing games that players love.”

CULTURE A CORNERSTONE OF SUCCESS

One of GAMOMAT’s newest games in the pipeline is Feng’s Fortune Flaming Link, a game developed with the diverse target group of new markets in mind. This game is a new take on the already beloved and successful Feng’s Fortune, which is inspired by Asian aesthetics, features the Flaming Link feature that adds another absorbing layer to the reels experience.

An extraordinary company culture helps set the enterprise apart as an online game developer. As a proud medium-sized enterprise, GAMOMAT champions a strong and value‑based culture. Five core values and a complementary hybrid work codex form the heart of this culture.

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One of GAMOMAT’s newest games in the pipeline is Feng’s Fortune Flaming Link for the US market.

The idea behind Flaming Link originated from the very successful Hold & Respin concept that was then complemented with new ideas for the player. The zones mechanic has the potential to grant access to various multipliers, making it especially captivating with fiery animations.

The feature is very well thought out and has big potential, which is why it will also go live within several games in the European market, as well as in GAMOMAT’s core German market.

Hermjohannes shared insights into his company’s strategic outlook for the future and touched upon the importance of different markets.

“The German market is still super essential for the business as it’s our home market. We have a positive outlook on the future in Germany as our games are already enjoying success here and there is still potential,” he said.

“The Netherlands is another strong performing market for us and our position in the region shows our expansion strategy is paying dividends. Our goal is developing our ideas and games precisely to individual regulated market preferences to give players the best gaming experiences possible.”

Also, for the Netherlands the studio developed tailored games like Vegas Joker. GAMOMAT has ambitious goals for these titles, since Joker games are very popular with Dutch players. The outcome is a graphically stunning slot with three reels that will be released during this summer.

HOW GAMOMAT’S ORIGINS ARE SHAPING THE FUTURE Celebrating its 15th anniversary in 2023, the company has made significant strides, notably with the introduction of the Deluxe Series, where classic games have been revitalised with modern graphics and enhanced gameplay.

Parts of this series have already been released and exceptionally well received. Throughout 2024 the Deluxe Series will be extended for games like La Dolce Vita Deluxe, Roman Legion Deluxe and Book of Madness Deluxe.

Expanding a truly global reach remains a key focus, with the developer dedicated to reinforcing its status as one of the leading online gaming providers and an employer of choice.

A move that has already marked a milestone for the business was entering the state of Ontario in Canada in 2022 together with partner BRAGG. This market is one

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of huge promise and GAMOMAT aims to extend its portfolio there to add further momentum to the global success story.

The commitment to deliver diverse and high-quality gaming experiences that have contributed to the excellent performance in Europe remains intact.

Currently GAMOMAT develops games especially for the US market, because of its high potential. With titles like Feng’s Fortune Flaming Link that’ll lead the Flaming Link series, other games like Great Grizzly are set to join the portfolio.

GAMOMAT is sticking steadfastly to its recipe for success. A wellconstructed strategic approach for global expansion, combined with a dedication to ingenuity and quality, positions this company as an influential player in the iGaming industry.

These principles are given weight by its resolute belief in good mathematics, seamless reel movement, rich graphics, remarkable animation, and extraordinary soundtracks.

The future of online gaming is bright, and GAMOMAT is playing its role, one thrilling game at a time.

Innovative solutions to drive revenue and remove friction.

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MARKETING

POWERED BY

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EXECUTING DIGITAL SYNERGY Drawing on the appeal of a heritage media brand and one of the world’s leading sportsbooks has helped Checkd Dev to ensure its Boxing News app packs a punch, explains Managing Director ADAM PATTON.

Words by KIERAN O’CONNOR

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n the ever-evolving landscape of sports, media and betting, a convergence of these sectors can spark a wave of innovation and collaboration, with each industry bringing its own unique expertise to the table.

When combined correctly this synergy can reshape the way people consume, engage and think about content, which is exactly what Checkd Dev sought to achieve with its latest product.

Teaming up with Boxing News and bet365, the developmental division of Manchester-based sports media firm Checkd Group has pioneered a “onestop-shop” for boxing enthusiasts.

Adam Patton, Managing Director of Checkd Dev, broke down how the firm worked to create an app allowing fans to catch up on the latest news, place bets, predict and score live fights, and

challenge their know-how to earn top spot on the app’s leaderboard.

At the core of the app lies the publication from which it derives its name, a magazine with roots dating back to 1909. Boxing News holds the esteemed title of being the longestrunning boxing magazine still in circulation today.

Boxing News underwent a significant transformation last year when it was acquired by iD Sports Media and has since transitioned to a more modern approach to keep up with its industry’s ever-changing landscape.

However, iD Sports Media didn’t alter its best qualities. Patton explained: “What we liked about them is that they’ve got such a legitimate voice in what is a bit of a murky world. They’ve done a brilliant job of staying neutral, which ties itself perfectly for what we’re trying to do with the app.”

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As Patton said, the boxing ecosystem is certainly “murky”, with some publications in the space having direct links to specific promoters.

Introducing the second layer of dynamism, users can seamlessly place bets on fight outcomes, thanks to a strategic partnership with bet365.

“We want a product that’s going to appeal to the mass market, we didn’t want to work with someone who was just focused on certain fights”, Patton added.

The feature allows users to predict the results of bouts and utilise their selections as accumulators, thereby recommending bets and displaying the corresponding odds from the bookmaker.

“Boxing fans don’t really care who’s promoting, they just want to see the best fighters fighting each other and they want to have an opinion on it that they can share. That’s why we liked Boxing News.”

Checkd Group has worked with bet365 for more than a decade, and Patton said: “Our integrations are probably as deep as they are with anybody else. So, that means that within an affiliate product, we can give the best user experience.”

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The predictor and the scorecard are two unique features and give fans a voice.

Currently, users are taken from the app to bet365, but that may soon change. Patton added: “We could get to the point in regards to UK users, where we could take bets on the app via bet365’s API gateway, which reduces friction for the user.”

Moreover, bet365’s well-established reputation precedes them, as Patton pointed out, “the bookmaker converts very well”. He said: “Their offers are really clear and they’re a brand that everybody knows, meaning you know what you’re getting with it.”

Serving as the cohesive element within the app is Checkd Dev’s implementation of gamification features. This includes a dynamic scorecard to enhance the interactive experience for users during fights.

Additionally, the app features a leaderboard tracking users’ proficiency in predicting outcomes, fostering a sense of competition and engagement alongside a prize-winning element.

Patton said: “The predictor and the scorecard are two unique features and are perfect examples of what we’re trying to do here, which is give fans a voice.

“We are letting people predict the fight nights and show off their knowledge with a consistent solid leaderboard. Boxing is definitely a sport, where people think they know about it and in most cases think they know better than everybody else.”

Patton’s point here is hard to disagree with. In boxing every spectator has an opinion and can’t wait to be proven right, whether that is supporting the underdog or siding with the house favourite.

Another huge talking point when watching the sport is the often hotly-disputed judges’ scorecards, so the Boxing News app allows users to score contests themselves.

“The scorecard aspect of the app is definitely engineered towards a more purist user, one that is going to sit and score the fights, scorecards

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are one of the biggest talking points after the fight,” Patton said.

“Often there is an extended period post-fight, where people are discussing scorecards, maybe saying that it was a bit dicey or that it shouldn’t have gone that way. This is all discourse online, and we think this is going to give people something to illustrate their thoughts as well as help get their point across.”

Boxing is a sport that has no language barrier, which opens up the app to opportunities around the world. However, Patton stated: “The US is the biggest driver of us releasing this app.”

Checkd has spent the past three years investing stateside, obtaining licences and setting up the basics. Although he acknowledged the sport as “niche” in the US, Patton added that boxing is still a major TV draw, enabling the firm to enter a mass market with an “underserved” product.

Looking ahead, Patton said: “We are focused on growing in the US, we’ve had some initial success, without any funding. We’re a relatively small business and we’ve already made a pretty decent splash, through going there with some proven tech and a proven strategy around social media, influencing and driving traffic.”

Patton believes that second screen engagement with live sports will go from strength to strength, but feels as though nobody has “truly cracked second screen free-to-play”.

“That is what we are trying to do, now that the speed of data delivery has gotten faster over the years and the technology has become more sophisticated. I think there are still a lot of opportunities.”

Patton concluded: “I think our particular focus is actually on the premium app space in the US market. There are various apps in that market, but we feel we’re very well placed to release something that is super competitive because it’s what we know and it’s what we have done.”

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Legal sports betting may have created a sponsorship bonanza in the US but, as DAVID ADAMS, Senior Director of Digital Partnerships at the Kansas City Royals explains, not every team has enjoyed huge benefits.

Words by CALLUM WILLIAMS

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he US is in a league of its own when it comes to commercialising sports and taking advantage of every revenue channel possible to maximise a team’s or league’s value.

Increasingly lucrative media rights, heightened sponsorship interest, merchandise sales and a range of other revenue streams, combined with collective bargaining agreements among sports teams, has made the US a sporting commercial powerhouse.

If all that was not enough, the post-PASPA influx of betting operators, both home-grown and international, has added a raft of new sponsorship opportunities.

The market’s two biggest players, FanDuel and DraftKings, have partnered a myriad of sports leagues and teams, while the likes of BetMGM, Bally’s and more have also utilised the seamless relationship between sports and betting.

The NFL remains undisputedly the biggest sport in the US and has snaffled plenty of money from sportsbook operators. According to Sponsor United, NFL sports betting revenue increased by 40% for the 2022 season, having quadrupled over the course of the last four years.

The NBA has also seamlessly integrated sports betting into its brand. Sponsor United detailed that the sports betting/gambling/lottery sponsorship category generated $71m in revenue for the league during the 2022-23 season, having the second-highest growth rate (21%) of all categories.

However, not all of the major US sports leagues have opened their arms to the world of sports betting. The MLB has been more hesitant to fully immerse itself in the landscape of gambling, as evidenced by its Authorised Gaming Operator (AGO) programme.

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We see the value in certain brands that MLB says we cannot partner with.

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It is not a cheap endeavour for these brands with the MLB.

While a regulated sports betting scene would be more ideal for the Royals, this has not deterred it from speaking with operators in Kansas and making the most out of a unique position.

Adams said: “When you look at the Kansas City Designated Market Area (DMM) we are split almost exactly 50/50 between Kansas and the state of Missouri. Coming up on almost a year now since Kansas approved sports betting, we’ve been able to talk to some brands and bring in partners here with the Royals.

“The challenge is that we play in Missouri. That brings challenges from the perspective of promoting sports betting, such as promoting ‘bring your phone to the ballpark to bet on xyz’. We don’t have the ability to do this.”

One crucial element of the programme is the ability for operators to access official MLB betting data.

However, only a limited number of sportsbooks are given clearance to become an AGO, putting lesser known betting companies - and MLB teams for that matter - at a disadvantage.

But in the face of adversity, inside the sports betting walls of Missouri, the Royals have been able to strike a partnership with daily fantasy sports platform Underdog Sports, a testament to the MLB team’s belief in the burgeoning US sports betting industry.

David Adams, Senior Director of Digital Partnerships at the Kansas City Royals told SBC’s Behind The Badge podcast about the difficulty caused by not being able to land potentially revenue boosting partnership deals with unapproved operators.

“Underdog Sports is a great example of a club and sports betting brand finding that natural connection from day one. It was very clear both of our organisations are trying to push the boundaries of being more innovative and to think differently about our brands,” revealed Adams.

He said: “Every major player, when you think of the big four, is an approved gaming operator within the MLB. For some mid-tier operators that aren’t, that presents some challenges for us because we see the value in certain brands that MLB says we cannot partner with because they are not approved.

“We told this story of the name of Underdog and where did that name come from and then looking at us, as a small market baseball team who are not spending $3-4bn unlike some of the major market teams are. So we thought, we’re both underdogs, we’re both in this together and here to tell our story to promote our brands in similar fashion.

“It is definitely challenging. We have a couple of local casinos that aren’t approved operators that we’ve held talks with, they’re interested and then we go through the process with the MLB and then we have to put a pause on those partnerships.

“I respect and appreciate the programme with the MLB, making sure they are protecting their data, and protecting their teams making deals with brands who are legitimate. I assume it is not a cheap endeavour for these brands with the MLB, so there are probably some hesitations there. It has become in some ways a net negative.”

“We’re really focusing right now on the fantasy side of things, and promoting it within their platform with the hopes of eventually, if and when Missouri finally gets their act together, being able to promote and build out the sports betting side.”

You could say the Royals are stuck between a rock and a hard place when it comes to securing sport betting sponsorships. While the team acknowledges its links to its neighbouring state of Kansas - a regulated sports betting market - the team is actually based in Missouri.

The Royals partnership with Underdog underscores that not every sponsorship agreement has to be the most profitable or high-profile commercial deal. Instead it shows that there is still value for smaller entities to work together to create a cohesive and aligned vision that is both sustainable and profitable.

This brings even more challenges for the ballclub as Missouri is still to regulate sports betting. Despite a petition by Winning for MIssouri Education reaching over 100,000 signatures to push for legislation last February, it remains unclear on the timeline for any potential sign-off.

It remains unclear if or when Missouri will regulate sports betting, but what the Royals have demonstrated is that despite sponsorship boundaries in the way, there are still US sports teams that are finding innovative ways around them, no matter the size or scale.

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TED ORME-CLAYE COLUMN

IT PAYS TO BE DIFFERENT Sports betting has well and truly entrenched itself as a significant segment of state economies, but with this has come increased competition and a need to differentiate from rivals, writes Payment Expert Editor TED ORME-CLAYE.

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and Betsson have signed Open Banking partnerships.

We’re starting to see the same in the US.

s it stands, 38 states plus the District of Columbia have thrown open the doors to regulated, legal sports betting, with seven also offering iGaming. However, further progress towards regulation appears to have slowed in 2024.

Open Banking is not the only rapidly developing technology operators should pay attention to from a payments and KYC perspective. Artificial intelligence (AI) feels like somewhat of a buzzword at the moment, but its significance is massive.

With little expected in terms of launching local markets this year, operators will instead be looking to enhance offerings in their existing jurisdictions.

Product is, of course, front and centre when it comes to acquiring and retaining customers, but the payments journey is a significant part of the overall KYC and customer engagement process.

This is not all for positive purposes, however. While much has been made of the great benefits AI has for gambling, whether this be for simplifying and completing day-to-day tasks or the more complex matters of risk management, player protection and problem gambling detection.

This may be particularly important for the smaller firms active across the US which don’t have the big budgets to keep up with the hyper-successful marketing drives of FanDuel, DraftKings and BetMGM.

The risks and threats AI poses should also be taken into account though. The rise of ‘deepfakes’ is a well-documented phenomenon, and in an industry as sensitive to player ID as gambling, this threat should be taken seriously.

Offering a variety of payment options may not be the ace card in operators’ deck when it comes to player acquisition, but it can still certainly help to improve the odds of the hand they’ve been dealt.

AI-generated fake ID documentation could be used for money laundering purposes, or for people who are not eligible to gamble to do so. This risks operators inadvertently breaching their own player protection and security standards, while also potentially facing regulatory wrath, as well as taking a hit to their public image.

Payments options can go from the obvious, such as a simple bank transfer or debit card, or enabling PayPal, Apple Pay and Google Pay as options for both online sportsbooks or land-based casinos, to some more advanced forms of e-wallets.

On the other hand, AI has strong potential for use as an anti-money laundering and fraud-prevention tool, but from what Payment Expert has heard in discussions with the industry, the tech still has some way to go before this is fully realised. In addition, the human element will always be vital when carrying out these tasks, no matter how advanced AI may become.

Meanwhile, Open Banking continues to take global payments by storm and this should not go unnoticed by American gambling stakeholders.

In the eyes of many observers, Europe has established itself as the leading region for Open Banking, with countries such as the UK moving forward with regulation and infrastructure development.

To summarise, with the US market maturing by the day and operators across the country seeking to up their game and stand out from the competition, the industry must keep its eyes glued to technological developments.

However, the US is undoubtedly the world leader when it comes to tech innovation in general, and the country which hosts the giants of Silicon Valley will no doubt make its own strides in Open Banking.

This can provide not just a competitive advantage, but also a much needed boost to security in an increasingly risky digital age.

Looking back to Europe, some of the continent’s highest-profile operators, such as William Hill, Betfred

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HOW PAYMENTS DELIVER A COMPETITIVE EDGE Pricing, bonuses and games aren’t the only way for operators to compete in the US. As NICOLE CEMELLI, Vice President of Finance at Tipico Sportsbook, tells SBC Leaders, payment options can also be a real point of difference.

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Words by TED ORME-CLAYE

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ix years after the repeal of PASPA, the US betting and gaming sector has unsurprisingly emerged as one of the world’s largest markets. With this exponential growth has come technological innovation, but also increased competition.

Like betting and gaming, the payments sector is one of constant innovation and change. This has been seen extensively over the past decades, whether it be in the development of blockchain, crypto and AI technologies, or the emergence in more recent years of Open Banking.

The US is now home to some big brand betting firms - FanDuel, DraftKings, BetMGM and ESPN BET, for example - but also to a number of companies with European roots looking to make their stateside mark, such as Tipico Sportsbook.

Operating in a global centre for fintech innovation, US betting firms can stand to benefit greatly from technologies under development in some of the tech hubs spread across the world’s largest economy.

With the opening up of new states looking less likely this year, operators will instead focus on how to enhance the player experience in existing markets. Nicole Cemelli, Vice President of Finance at Tipico Sportsbook, emphasised the importance of payments to this experience.

“In our industry, seamless payment processes play a crucial role in the overall user experience; one negative experience or delay in payout can be the difference between a customer jumping ship or staying with a book,” she explained to SBC Leaders.

“Customers expect quick, convenient, and secure payment methods to make deposits and withdraw their winnings.

By partnering with reputable payment processors and integrating with popular digital wallets, Tipico has expanded our reach, and it allows for us to deliver the payment security and user convenience that customers expect.

“This is all in accordance with the Tipico Fair Play Pledge, which is our commitment to safety and clarity for the customer in everything we do, including payments. The more recognised and secure options that we have available to our customers allow us to enhance the user experience and drive retention.”

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In the view of Tipico’s Finance VP, there are “valuable lessons to be learned from other sectors” relating to technological innovation in payments, with a notable industry gambling can learn from being finance.

“Financial institutions, for one, employ advanced fraud prevention techniques that iGaming operators benefit by implementing,” Cemelli explained.

“Whether it’s gathering user experience techniques from our favourite e-commerce sites, leveraging data analytics to gain insights similar to how brick-and-mortar retailers do, or aligning our AML and KYC standards with that of banking institutions, the knowledge is out there and the edge is going to be with the operator that can incorporate learnings from all these sectors and apply them to iGaming operations.”

On this latter point, Cemelli observed that the US has been “at the forefront of utilising data analytics for AML and fraud prevention”, again pointing to the country’s vast financial services sector as an example.

America’s financial institutions “leverage vast amounts of transactional and customer data to detect anomalies, assess risks, and identify potential money laundering activities”, she observed.

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It would be foolish to ignore the opportunities AI can bring to the iGaming sector.

In Tipico’s case, the operator has looked at the extent of analytics techniques used by various US businesses to uncover “complex fraud schemes and money laundering operations”, with the bookmaker adopting “extensive training” in this area for its operations team.

A technology which has come to the forefront of industry discussions around AML, fraud prevention and KYC of late is Artificial Intelligence - again, this tech has been embraced across multiple sectors, from finance to betting. Tipico is keenly aware of the opportunities posed by the tech.

“AI is changing the world. It would be foolish to ignore the opportunities AI can bring to the iGaming sector, or, even more specifically, to the user experience,” Cemelli explained.

“I find the best use case for AI is its ability to perform predictive analytics, which allows for clearer business insights and decision making. AI-powered predictive analytics can forecast payment trends and anticipate future customer behaviour.

“By analysing historical data and market trends, AI algorithms can provide valuable insights into payment preferences, peak transaction times, and emerging payment methods.”

In addition to AI, Open Banking has been taking the betting sector by storm of late, particularly from a payments perspective. However, it has to be said that Open Banking development has been seen more in Europe than in the US. Whilst acknowledging that the tech hasn’t seen the same level of implementation in the US iGaming sector as it has in Europe, Cemelli envisioned that there is “great potential for growth” for the US system, although this will only be possible “once regulations on thirdparty access to financial data are more developed”.

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“The major benefits would be automation of the KYC process and improvement in its reliability and identifying ‘problem behaviour’ by analysing financial data, which ultimately can make it possible for the industry to be more proactive in protecting customers.”

Developments in iGaming and payments can often walk hand-inhand, with the former benefiting greatly from innovations in the latter. However, it is of course also driven by customer demand and the overarching need to enhance the customer experience.

“At Tipico, we’re always looking for ways to enhance our customers’ experience through innovative payment solutions,” Cemelli continued.

“We’ve rolled out features like faster payouts to ensure that our customers can access their winnings quickly and with ease. In addition to this, we’ve integrated our loyalty program directly into the user journey, which keeps us at the forefront of the industry.”

This latter objective, keeping Tipico at the forefront of the industry, is not an easy task in the highlycompetitive US market. However, the firm is confident in its ability to seize the various opportunities that the fintech sector, both in the US and elsewhere, continues to provide.

Cemelli concluded: “Overall, payments - the ease, speed, and transparency of - are integral to maintaining a competitive edge in the US betting market.

“Tipico continually innovates, prioritises user experience, ensures regulatory compliance, and prioritises security. It’s a highly competitive industry and we’re looking to make a noticeable impact.

“As part of the Tipico Fair Play Pledge, we are committed to fair dealings with our customers, establishing trust by providing them with a safe, clear, and fun experience with quick access to their betslips and player wallets.”

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USING ID VERIFICATION TO ACCELERATE GROWTH

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When PrizePicks, North America’s fastest growing skillbased daily fantasy gaming company, wanted to build instant trust with its members with fast, frictionless and accurate identity verification, it turned to Socure for help.

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s a leading innovator in skillbased gaming, PrizePicks had a growth challenge to solve: how to create a trusted environment with the identity verification of the largest swath of the population without posing friction at onboarding.

For PrizePicks, that means onboarding harder-to-identify nextgen gamers with a lighter credit history, while keeping out those 18 and younger who aren’t legally allowed to engage. This younger demographic tends to have less financial history and therefore requires more advanced capabilities for verifying identity.

GAINING COMPREHENSIVE ID VERIFICATION TO DRIVE GROWTH PrizePicks selected Socure as a partner for its analytical, datadriven approach that delivered top results on the company’s main KPI of increasing auto-approvals.

The Socure ID+ platform gives PrizePicks a unified approach for verifying good identities in real time with an end-to-end platform, including Socure Verify, Sigma Identity Fraud, Sigma Synthetic Fraud, and Predictive DocV. “One of the things that was attractive about Socure was its comprehensiveness. I loved that Socure had integrated capabilities for KYC, fraud, and document verification, which meant we didn’t have to piece together disparate vendor solutions to achieve our goals. We were impressed with how slick the offering was and the opportunity to orchestrate our identity verification workflows in a single solution,” said Deuskar.

As a result, during a period of hypergrowth, PrizePicks was experiencing low auto-approval rates for identity verification.

Potential new members that didn’t pass the automated review had to go through an additional, and costly, document verification onboarding step, which was a manual effort managed by an internal group of 15 full-time PrizePicks employees.

OPTIMISING THE MEMBER ONBOARDING JOURNEY

“Our KYC provider’s fraud decisioning capabilities were sorely lacking, so we were hamstrung when it came to being agile with onboarding new gamers and capturing fraud at the top of the funnel,” said Jay Deuskar, Cofounder and CTO at PrizePicks. “It was creating friction at the start of our member onboarding journey that we needed to address.”

In a highly competitive gaming market, PrizePicks is hyper focused on giving members the best experience from the first touch point all the way through to the game play. At the start of the member journey, Socure takes a data science-driven approach to verify the identity of new PrizePicks members.

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Account onboarding is arguably one of the most crucial touchpoints in making sure potential members don’t drop out.

By applying analytics models that track and correlate identity attributes, such as name, email, phone, address, date of birth, SSN, IP, device, velocity and network intelligence, the Socure platform produces reliable, consistent and accurate determinations on the legitimacy of an identity and its relative degree of fraud risk.

“Our customers are sports fans who want a sleek and intuitive experience with our platform. Socure has helped us optimise that experience during account onboarding, which is arguably one of the most crucial touchpoints in making sure potential members don’t drop out of the process due to unnecessary friction,” said Deuskar.

“It’s important we get things right early on to develop trust with the customer, and Socure helps us build our credibility from the start with a fast, frictionless, and accurate identity verification process.”

Socure’s robust approach has enabled PrizePicks to experience double-digit growth in new member auto-approvals, reduce fraud losses, and drive massive growth in customer lifetime value (LTV). Onboarding for the company’s next-gen gaming members has grown significantly, directly contributing to tens of millions of dollars in annual LTV growth. And, as a result of the optimised member onboarding journey, PrizePicks increased customer conversion rates, gaining one million new members in ten months.

Another big win for PrizePicks was its move from a manual to an automated document verification process. Prospective members that fail initial checks are escalated to Socure’s Predictive DocV to digitally verify the authenticity of identity documents, along with selfie analyses to verify that the biometric and the physical identification card photos match.

“Socure enabled us to completely eliminate our manual document verification process and reallocate 100 per cent of our 15 team members to other strategic business functions,” explained Deuskar. “As a result, we experienced huge cost savings and

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an increase in the efficiency of our internal operations.”

INNOVATIVE DATA SCIENCE PARTNERSHIP As a real money skills-based gaming operator, PrizePicks must comply with certain KYC mandates. With Socure, it has gained a frictionless, highly-accurate solution with unmatched coverage in younger demographics. PrizePicks can now demonstrate it has the proper guardrails in place with a continuous KYC and Customer Identification Program (CIP) process that delivers a solid foundation of reliable identification and protection.

At its core, PrizePicks is an innovative tech analytics company where data science and predictive modelling are entrenched in the company ethos for building and managing the best customer journey. Socure’s market leading identity verification and fraud prevention platform driven by advanced AI and ML technologies makes the vendor partnership a great one for PrizePicks.

“Socure’s expertise in data science gives us a strategic partner that helps us run experiments, offer predictive modelling on outcomes, and provide suggestions to improve our KYC process and decisioning,” said Deuskar.

“I think that’s one of Socure’s biggest values compared to others in the space, and our Socure team members are some of the best people I’ve ever worked with.”

GOING INTO PEAK GAMING SEASONS WITH CONFIDENCE As Deuskar points out: “The PrizePicks business is highly seasonal; we’re always thinking ahead of the curve on where the business is going and how to maximise our resources and foster more growth.”

As PrizePicks looks to the future, the company has a well-tuned, accurate identity verification process and a strong partner in Socure that’ll readily keep pace and scale with PrizePicks’ innovations.

Vertically Integrated Exceptionally Efficient Broad Industry Knowledge

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HOW OUTDATED REGULATION EXPOSES THE GAMING INDUSTRY TO RISK After the Department of the Treasury published the 2024 National Money Laundering Risk Assessment (NMLRA), Kinectify’s Director of Business Development SEAN TOPCHI examines the government’s misconceptions about the gaming industry, the ongoing need for federal support and the risks outdated regulations pose to the US financial system.

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he NMLRA raises concerns regarding the online gaming industry’s familiarity with AntiMoney Laundering (AML) and CounterFinancing of Terrorism (CFT) implications, particularly with online wager services.

They additionally note, there may be gaps in being considered BSA-covered casinos depending on licensing.

It is certainly true that online gaming platforms may not be affiliated with land-based casino licences, which are the typical definition of a BSA-covered casino. In fact, there are states like Tennessee that have zero brick-andmortar properties but have multiple sports betting licences.

However, this perspective overlooks the industry’s efforts for more regulatory guidance and its desire for compliance.

To claim that awareness is an issue ignores the pleas of the collective industry through associations like the American Gaming Association. There are

several examples where the industry has demonstrated its commitment to compliance, through calls for action, adoption of best practices, and pleas for FinCEN guidance dating back to 2015.

These calls for guidance, updates to regulatory frameworks and calls for partnership on sports betting started before the overturning of PASPA in 2018. They have intensified since then, with several letters, updates to best practices and quotes from industry representatives.

ADDRESSING THE GAPS Given Treasury’s own admission that these new age gaming institutions don’t qualify under their definitions of BSA institutions, it is incumbent on the government to update the legacy definition of a “casino or card club that is duly licensed or authorised to do business as such, and has gross annual gaming revenue in excess of $1 million”.

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that are exposing the financial system to risk because of a stale definition that isn’t dynamic enough to keep up with technology.

There have been so many new products and services in wagering institutions, skill based and otherwise, that pose AML risk to the US financial system if not properly regulated.

There may be debate on which of these should or shouldn’t fall under that umbrella, but by the Treasury’s own admission, there is a gap here that poses significant money laundering risk to the United States.

Daily Fantasy Sports operators started launching as early as 2007. Online gambling was legalised in multiple states by 2013.

PASPA was overturned in 2018, paving the way for sports betting nationwide. Skillbased games have skyrocketed in popularity over the past decade.

So how would these definitions be updated?

There have been several calls for FinCEN to issue guidance on this topic, but such a sweeping change is likely to require proposed rulemaking. This is a more arduous process.

There are too many variations of wagering, with potential to move billions of dollars

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Risk Score Players Monitor Transactions Visualize Analytics Accelerate Research Automate FinCEN Filings Outsource Compliance Program Design & Testing Exam & Regulatory Support

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There is a gap here that poses significant money laundering risk to the United States.

Below is a summary of the process for proposed rulemaking and how the industry could proactively request such a change.

4. TERMINATION OR FINAL RULE

1. BEGINNING THE RULEMAKING PROCESS

Once the comment period is closed, the comments are analysed, facts are accumulated and experts are conferred with, FinCEN could release the final rule.

There are several ways that the rulemaking process can begin, from laws passed by congress, presidential directives, an agency’s own analysis, requests from other agencies and a petition from interest groups, corporations, and members of the public.

This process, though demanding, is essential for aligning the regulatory framework with the current realities of the gaming industry and ensuring gaming institutions have the tools and safe harbour to properly conduct their AML programmes.

Under the leadership of Director Andrea Gacki, FinCEN has been heavily focused on the ambitious Beneficial Ownership Database, Fentanyl, the fledgling Whistleblower Program, and sanctions/counter terrorist financing related to the major conflicts on the other side of the world.

OH, IS THAT ALL?

With that, it is unlikely it is dedicating resources to an analysis of the industry at this time. The AGA, regulatory associations, gaming corporations and other members of the public could work in concert to send FinCEN a “Petition for Rulemaking”. This could prompt FinCEN to begin the process.

2. DEVELOPING THE PROPOSED RULE Assuming FinCEN was to accept the petition or take it upon itself to suggest a rule, it could either informally gather information from the industry and related organisations or publish an “Advance Notice of Proposed Rulemaking” to allow for public comment to help shape the proposed rule. Agencies typically propose a range of 30-60 days for these notices.

3. DRAFT RULE Once the initial rule has been drafted, a “Notice of Proposed Rulemaking” would be released with the full text of the rule and would be once again open to public comment for a period proposed by FinCEN.

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While the above would be a major industry and governmental push, there is still more that needs to be done.

The Treasury is correct in saying that there could be visibility issues and confusion about obligation between traditional land-based operators and their online gaming partners. Even with an updated definition to what constitutes a covered institution under the BSA, the way responsibility and transparency requirements are determined in these market access agreements and similar situations still needs to be addressed.

This is an area of opportunity for FinCEN to issue “Guidance” to the industry on how to handle partnerships between traditional gaming institutions and their new age partners. For this guidance to work, there must be serious collaboration, which the AGA and other groups have lobbied for to help address the nuanced situations from state to state.

While the NMLRA points out several risks with the industry’s products and services, as well as challenges with its own compliance regimes, we hope the Treasury’s own bureau acknowledges the risk its current regulatory regime poses. There must be a true public-private partnership to close these gaps and protect the integrity of the US financial system.

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Competing across the map

STUART GODFREE, Managing Director of mkodo - the company behind GeoLocs - tells SBC Leaders how competition is driving up standards among geolocation providers.

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When it comes to geolocation, innovation, efficiency, and reliability are essential.

he early days of regulated online sports betting and iGaming in the US and Canada saw one geolocation provider rapidly emerge as the clear market leader. That position is starting to change though, as more tech companies start to offer rival products.

North American iGaming market continues to expand, the demand for geolocation compliance becomes increasingly critical.

Competition drives providers to innovate, leading to better service quality, competitive pricing, and enhanced responsiveness to industry standards.

In the view of mkodo’s Managing Director Stuart Godfree, the increased competition is good for the entire industry - not least because it has driven his team to further develop its GeoLocs offering.

With multiple providers, the likes of GeoComply, Xpoint, and of course, GeoLocs, vying for market share, operators have a wider range of options to choose from, allowing them to select services that best suit their needs and budget.

HOW DOES COMPETITION AMONG GEOLOCATION PROVIDERS BENEFIT OPERATORS IN THE iGAMING INDUSTRY? Competition in the geolocation market benefits iGaming operators significantly. As the

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Increased competition also encourages providers to differentiate themselves by offering more responsive customer support, enhanced features, greater flexibility in pricing and contract terms, as well as the development of new technologies.

PAYMENTS AND COMPLIANCE

This competition incentivises geolocation suppliers to stay on top of regulatory changes, ensuring that operators remain compliant with evolving requirements.

Ultimately, operators benefit from a higher standard of service as providers strive to offer the most advanced and user-friendly solutions.

HOW DO CHANGING OPERATOR PREFERENCES INFLUENCE THE DEMAND FOR GEOLOCATION SERVICES IN THE iGAMING INDUSTRY, AND HOW DO PROVIDERS LIKE GEOLOCS ADAPT TO MEET THESE EVOLVING NEEDS? Changing preferences and behaviours, such as the increasing popularity of mobile gaming and the demand for seamless user experiences, drive the need for more advanced geolocation services in the iGaming industry.

At GeoLocs, we prioritise a mobilefirst approach, eliminating the need for unnecessary downloads for players, enhancing integration processes to minimise disruption for operators and, therefore, their players, and improving the overall user experience across iOS, Android, and desktop devices.

HOW DO VARYING REGULATORY FRAMEWORKS AND JURISDICTIONAL COMPLEXITIES IMPACT THE LANDSCAPE FOR GEOLOCATION PROVIDERS, AND HOW DOES GEOLOCS NAVIGATE THESE CHALLENGES? GeoLocs navigates changing regulatory requirements by maintaining a deep understanding of jurisdictional regulations - we have a dedicated compliance team - fostering strong partnerships with regulatory authorities, and developing a flexible service that can adapt to varying compliance requirements.

We’re continually updating our technology to ensure compliance with the latest regulations and

that we’re providing operators such as Casumo, Rootz, Arizona Lottery and OLG with a seamless and reliable experience across various jurisdictions.

The GeoLocs Portal also offers operators convenience and control. With the user-friendly self-service portal, operators can easily manage and customise settings, conduct User Acceptance Testing (UAT) for geoallow areas before going live, ensure regulatory compliance, and utilise robust reporting controls for enhanced analytics and insights.

HOW DOES GEOLOCS DIFFERENTIATE ITSELF FROM OTHER GEOLOCATION PROVIDERS IN TERMS OF INNOVATION, EFFICIENCY, AND RELIABILITY? GeoLocs offers operators a comprehensive solution that prioritises innovation, efficiency, and reliability. With a proven track record spanning over 12 years and being the first live geolocation service in Ontario, GeoLocs has earned the trust of major players in the iGaming industry.

We understand that one of the primary pain points for iGaming operators is the time-consuming and complex process of integrating geolocation services into their platforms. GeoLocs sets itself apart through its seamless, developer-friendly SDK integration, allowing for implementation in under five days.

This means operators can launch quickly without disrupting ongoing operations, all while ensuring guaranteed regulatory compliance.

The efficiency of GeoLocs’ integration process is a significant advantage for operators looking to stay ahead in the highly competitive iGaming market.

Time is money, and the faster a platform can go live with geolocation capabilities, the sooner it can start generating revenue and providing a secure gaming environment for users.

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I can also confidently say that the GeoLocs platform is incredibly reliable. Our approach to product development is hands-on; we practice what we preach by using our own tools. Embracing the ‘eat your own dog food’ philosophy, our teams benefit from the same seamless and developer-friendly SDK provided to clients.

We effectively distance our app and web developer teams from the GeoLocs engineers, creating a subtle line where we treat our own colleagues as customers. In doing so, our teams are not just creating products for clients; they’re building tools they trust and use internally. This perspective ensures our products are not only functional but also optimised for clients in real-world scenarios. Our ‘eat your own dog food’ approach ensures GeoLocs is a proven and trusted asset for both developers and operators.

We’re also committed to providing competitive pricing and transparent contract terms ensuring operators have access to a cost-effective service without compromising functionality. GeoLocs sets a high standard for service quality and customer satisfaction, positioning itself as a trusted partner for geolocation compliance in the iGaming industry.

In a market where pricing, innovation, and regulatory compliance are critical, GeoLocs is strategically positioned as a costeffective solution, not just in terms of a competitive pricing model but through comprehensive features and speed to market. This approach caters to financial efficiency, ultimately bolstering overall ROI. ANY FINAL COMMENTS? When it comes to geolocation in iGaming, innovation, efficiency, and reliability are essential. As the industry continues to evolve and open up, operators must carefully weigh their options and choose partners that not only meet their immediate needs but also position them for future success.

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A deep-dive into Canada’s Gaming Scene Words by ELLIS DAVIS

Canadian Gaming Summit returns this June, when 3,000 delegates will gather in Toronto to discuss the future of the country’s betting and gaming industry.

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he Canadian Gaming Summit is the only gathering of its kind in the country and a must-attend event for anyone who wants to understand the state of gaming in Canada and around the globe.”

This assessment by Paul Pellizzari, Vice President of Global Social Responsibility at Hard Rock International, encapsulates the essence of the Canadian Gaming Summit - it’s the sole industry event focusing on the second-largest country in the world by area.

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EVENTS

SBC LEADERS ISSUE 30

“

The Canadian Gaming Summit is a great event, packed with so much knowledge and great speakers, offering a unique opportunity to hear from a wide variety of stakeholders in a highly evolving industry.

Scott Grant, Manager, Competition Manipulation, Canadian Center for Ethics in Sport

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EVENTS

Following its acquisition by SBC, this legacy event, which has been a fixture on the industry calendar for 26 years, saw its inaugural edition hosted under new management in June of last year.

This year marks the 27th edition of the Summit, which returns to the Metro Toronto Convention Center in Toronto from 18th to 20th June, 2024.

Throughout the three-day event, the 3,000 delegates will have the opportunity to delve into the nuances of the Canadian market through comprehensive conference sessions. They can also explore the cuttingedge games, technologies and services showcased on the exhibition floor, and get the opportunity to build their network by connecting with key industry stakeholders during daytime and evening social events.

Building on the success of last year, the 2024 edition will see the event continue to evolve.

One notable adjustment involves placing a stronger emphasis on making the event truly panCanadian. While Ontario holds significance, other provinces also feature highly-successful models and equally merit recognition.

This will be achieved through dedicated conference panels and engagement with stakeholders from various provinces, ensuring each receives the spotlight they deserve.

As Aidan Brain, VP of Conference Production at SBC, put it: “For some, it’s a place to debate and discuss, and for others, it’s a place to validate their current thinking. There’s plenty of learning for every level of experience in the game.”

Kicking off the event will be the limited capacity Player Protection Symposium, taking place on Tuesday, 18th June. It will bring together 300 specialists to share their knowledge in designing and implementing successful

responsible gambling strategies, and to discuss how the industry can develop a unified approach to player protection.

The conference agenda will tackle pressing issues within the Canadian market. Delegates will have the opportunity to learn from 150 expert speakers about the Canadian landscape, as they explore key market developments and trends across 21 panels spanning four conference tracks and two stages. Themes to be explored include sports betting, affiliates and advertising, payments and compliance, along with discussions on leadership and the current and future status of the land-based sector in the country.

Highlights of the conference include: • Where do we Stand? The Status Quo for Sports Betting and iGaming Across Canada • Modern Approaches to Traditional Verticals: Digitization Comes for Lottery, Bingo, and Horses • It’s all in the Game: Innovations in Live Betting • Building Lasting Partnerships: Affiliates and Operators • Empowering First Nations: Gaming Bill and the Future of Indigenous Gaming Sovereignty The contributions of the First Nations to both the industry and their communities will also be recognised at the event through a series of dedicated awards that will take place during the Summit on Thursday, 19th June.

The exhibition floor will offer delegates the opportunity to explore products and services from more than 75 global and regional brands. Furthermore, it will serve as a central hub for networking opportunities, featuring dedicated facilities such as the SBC Connect Lounge, the Canadian Gaming Association Networking Lounge and other coffee bars.

Additionally, delegates will be able to participate in various

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daytime industry meet-ups such as the Global Gaming Women Breakfast Meet-Up (19th June) and the First Nations Gaming Breakfast Meet-Up (20th June).

By strategically situating these networking opportunities on the exhibition floor, delegates can forge essential business connections without having to leave the vibrant atmosphere of the event.

Beyond the bustling exhibition floor, the Canadian Gaming Summit will host a range of evening networking events.

Commencing the summit on 18th June will be the Pre-Registration Party at the RS Sports Bar, while 19th June will conclude with the Official Networking Party at the scenic Lavelle rooftop.

Talking about last year’s edition, Gareth Hooson-Owen, Head of Group Sales & Marketing, Crucial Compliance, said: “The networking opportunities were unparalleled, allowing us to connect with like-minded professionals and forge valuable connections; SBC did a fantastic job of ensuring a seamless and engaging experience.”

Attendees can elevate their event experience by downloading the SBC Connect Plus app, featuring advanced AI matchmaking technology to personalise networking suggestions. The app also provides access to the conference agenda, the ability to bookmark preferred panels, and an interactive map for seamless navigation throughout the Summit.

Whether your goal is to explore opportunities to engage with prominent operators, affiliates, regulators, lotteries, suppliers, and media, or to delve into insightful discussions about the markets in Alberta, British Columbia, Ontario, and Quebec, the event offers a comprehensive approach and maximised impact through product displays, networking, and knowledge sharing.

OPINION

SBC LEADERS ISSUE 30

I

write this on the plane returning from our first ever event in Brazil - the SBC Summit Rio. And what a show we had!

Brazil is obviously a market of very serious interest to companies in the betting and gaming sector with its love of leisure, sport and enjoyment, but the intention to properly regulate online gaming for the first time has made it more important than ever.

There is still a long way to go but the biggest hurdle was cleared when President Lula finally signed off the regulation last year. That gave the green light for companies to have confidence to invest R&D money into a region which already has a very active market but one that had been waiting for regulators to catch up.

It seems they will still be waiting a little longer before there is full clarity however. It is still not exactly clear how the relationship will work between the different state regulations and potential federal regulation with arguments reminiscent of when SchleswigHolstein tried to regulate online gambling in the whole of Germany by issuing local state licences.

The good news is though that it is on the way and it is being taken very seriously at all levels of government. At our event we were pleased to host the Governor of Rio De Janeiro Cláudio Castro, who recognises the benefits that the industry could bring to his region and wanted to know more. He was also very pleased with our commitment to Rio as we have signed a deal to move the event to the huge Riocentro exhibition hall for the next four years.

We’re expecting more than 10,000 delegates and 400 exhibitors in 2025, so I just hope the 50,000 sqm will be big enough to meet demand.

We have launched a number of our SBC Summits in regulating markets over the past few years, so we recognise some of the trends as people find their feet in an evolving environment. What did stand out for Brazil though was the seriousness in which our delegates took player protection already. In some other markets it has taken operators a little while to warm up to the importance of having prevention strategies for gambling harm, but the session we had in Rio was standing room only.

Final word with

This was very encouraging to see from my perspective as too often the industry shoots itself in the foot by pushing too much too quickly for society and then faces an inevitable regulatory backlash further down the line. By taking responsible measures early, we can become more sustainable from the start and make sure everyone can enjoy the products we offer to our customers.

Rasmus Sojmark

Stay cool, Rasmus Sojmark, Founder & CEO, SBC

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