SBC Leaders Magazine Issue 32

SECTION

LISBON 2024

I S S U E

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Evoke emerges CEO Per Widerström on the transformation of 888 and William Hill

Digital therapy Betfred CIO Andrew Daniels on converting retail success

The problem with advertising

Crazy about crypto

Hot topic across the globe but are bans the answer?

500 Casino’s Christoffer Anderson on the regulated markets enigma

Power Games CEO Marina Ilina on the evolution of PIN-UP Global 1

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EDITOR’S NOTE

Beyond the spin Image is important.

Public relations is not always done well. Branding and rebranding can be a bit of a nightmare. Advertising is often cringeworthy. All will inevitably attract sneers of cynicism.

But image is important. Unless you work at Evoke, you might have sniggered when you heard it had changed its name from 888 Holdings. But 888 desperately needed a new beginning. The inside story of the transformation of 888 to Evoke (see page 8) goes far deeper than changing the name of the company. You can’t just stick lipstick on a pig and expect it to turn into Cinderella, (as Grainne Hurst nearly says on page 6) but it might well be the first step.

Elsewhere, the question of image and PR is all over the debate about advertising. You can read about this in our Hot Topic feature (page 88), but it’s also present in the Evoke story, in our sports betting column (page 17), in a fascinating interview with the Bulgarian regulator (page 78), and in Rani Wynn’s excellent thought leadership piece (on page 82). It really is the hot topic.

Advertising is our window on the world outside of our regular customer base. It needs to be done smartly and it needs to be done sensitively.

Generally speaking, the public does not like the gambling industry. Don’t give it more reasons to dislike us.

Steve Hoare, Editor, SBC Leaders In the previous issue of SBC Leaders, in an article on Casumo, we detailed the regulatory challenges that its previous CEO, Shelly Suter Hadad, had faced during her time in the role. We in no way meant to imply that she was responsible for those failings, but to highlight the challenges she tackled dealing with operational failings from before her time. We are happy to clear the record and apologise for any confusion caused.

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, Conor Porter, Charlie Horner, Jessie Sale, Fernando Noodt Molins, Callum Williams, Viktor Kayed, Martyn Elliott, Lucia Gando, Jessica Welman, Ted Orme-Claye, Danny Lee, Steve Hoare, Justin Byers, Kieran O’Connor, Christian Lee, Tom Nightingale, Elisa Marcante, Isadora Marcante Sales Team: John Cook, Rasmus Sojmark, Alyona Gromova, Conall McCabe, Jan Kowalczyk, Richard Deacon, Bob McFarland, Craig Brown, Juan Ospina, Ed Young Creative Lead | Design and Layout: Jessica Camilleri

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SBC LEADERS ISSUE 32

18 Betfred

08 Evoke

52 PIN-UP

6 People

52 Cover feature:

SPORTS BETTING

Grainne Hurst’s life in and outside gambling; plus leaders on the move

CEO Marina Ilina on the huge strides being taken at PIN-UP

new ad code

8 Spotlight: Evoke CEO Per Widerström on the transformation of 888 Holdings

PIN-UP Global

106

Comment: Ras Sojmark SBC Chief prepares for momentous Summit in Lisbon

17 Column: Football’s Ted Menmuir on football’s relationship with the gambling industry

18 Interview: Andrew Daniels of Betfred

Following £100m acquisition, CIO aims to recreate retail success online

© 2024 Sports Betting Community Limited. All rights reserved.

All content in this publication, including articles, photographs, and other materials, is protected by copyright under the Copyright, Designs and Patents Act 1988. The copyright in all materials in this publication is owned by Sports Betting Community Limited or its licensors. You may not reproduce, distribute, or otherwise use any of the content without the express written permission of Sports Betting Community Limited (SBC), except as permitted by law. For permissions or licensing inquiries, please contact sales@sbcgaming.com.

The views in the publication are not necessarily the views of SBC or those of the advertisers. Although every effort has been made to ensure the accuracy of the information contained in this publication, SBC cannot be held responsible for any errors it may contain. In no event shall SBC be liable for any direct, indirect, incidental, special, consequential, or exemplary damages, including but not limited to, damages for loss of profits, goodwill, use, data, or other intangible losses (even if we have been advised of the possibility of such damages), resulting from the use or the inability to use the material contained in this publication.

Produced and published by Sports Betting Community Limited REGISTERED ADDRESS: SBC, Riverbank House, 1 Putney Bridge Approach, London, SW6 3JD TEL: +44 (0) 203 983 7050 | EMAIL: sales@sbcgaming.com | WEB: www.sbcgaming.com & www.sbcleaders.com

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Contents 24 Thought leadership: Thomas Donson of DATA.BET

Trading esports vs. traditional sports betting

28 Interview:

Claus Rasmussen of SB Software Founder and chairman on handing his baby to a new CEO

CASINO

33

Column: A new era of KYC Joe Streeter studies the impact of digital IDs

34 Interview: Amit Berkovich of Evoke

Is poker in need of a life support machine?

40

Interview: Robert Kocher and Sebastian Reddig, Gamomat Moving from land-based to B2B online

44 Interview: Richardt Funch of EveryMatrix

Supplier on life after buying FSB Technology

60 Interview:

PAYMENTS

The global opportunity of sweepstakes

Column: AI and open banking

Andrew Cochrane of GiG

68 Thought leadership: Ashley Lang of Pragmatic

The CBU of platform tech vs. the forced ecosystem

Ted Orme-Claye on payments’ next frontier

96 Interview:

PressEnter Group’s Sean Spiteri

72 Interview: Christoffer

Head of Payments shines a light for next generation

Dodging the crypto sharks

101 Feature:

Anderson of 500 Casino

AI and fraud

MARKETING

77 Column:

The future is here and it’s frightening

Google’s curveball

Charlie Horner on affiliates’ forced revolution

78 Feature:

Bulgaria’s new regime

Bulgaria’s regulator defends advertising restrictions

82

Thought leadership: Rani Wynn of LiveScore Don’t restrict the influencers, says General Counsel

PLAYER PROTECTION

87 Column:

Neurodiversity and gambling addiction

48 Interview: Mikal

Steve Hoare wants more research on ADHD and autism

Group CEO on his ‘online gaining’ philosophy

88 The Hot Topic: The

Imiolek of Wazdan

95

advertising conundrum

Regulators, lobbyists, operators and academics debate the current vogue for banning gambling ads

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82 LiveScore

PEOPLE

SBC LEADERS ISSUE 32

My Life IN Gambling GRAINNE HURST

The new Chief Executive Officer of the Betting and Gaming Council tells us about her career and her life outside of work

GVC, 2018-20 “It was right in the middle of the FOBTs debate, which was a very big issue from a regulatory point of view but it was also baked into the [GVC acquisition of LadbrokesCoral] deal, so that focuses the mind.

Betting and Gaming Council, 2024-PRESENT “I think the issues that the industry is going to go through over the next four or five years are very different from the issues it faced in the last five or six years. The public health-led debate will increase. I am very committed to making the positive case for the industry. I also think we have a role in highlighting what our millions of customers think, which has sometimes been lost in the debate.”

GVC in 2018/19 was leading the way in this space because we didn’t need to jump through as many hoops as others. We were the only operator to stop sponsoring football shirts. We also increased our research, education and treatment donations from 0.1 per cent to 1 per cent. I had been trying to make the case for that at Ladbrokes for quite a while, so GVC was a breath of fresh air in that regard.”

Ladbrokes, 2015-18 “I don’t think I had foreseen the rollercoaster that joining the betting and gaming industry would bring. It was right at the beginning of the mergers and acquisitions. All of the big boys and girls were still stand-alone then.

In week six, I learnt that Ladbrokes was merging with Coral. That was a real eye-opening experience of two big beasts colliding and how you make it work internally and externally.”

Luther Pendragon, Asda, UK Government Department Work and Pensions 2012-15 “I flitted about a bit. I’ve never really had a grand plan. When I was working for [Member of Parliament] Philip Davies I didn’t really know what a lobbyist was. It’s not the sort of thing they tell you about at school.”

Office of Philip Davies MP, House of Commons, 2010-12 “I have a lot to thank Philip for. He was the only person willing to give me a job. In the interview, I was fresh out of Uni and all set to display my knowledge of geopolitical affairs but the thing that impressed him most was my Saturday job at Marks & Spencer. Because he believed customer service, giving good customer service to his constituents, was the most important part of being an MP.”

Entain 2020-24 “I led the rebrand from GVC to Entain. We had an infamous saying, which drove everyone up the wall, that you can’t just put new lipstick on a pig.

Because we were right in the eye of the Gambling Act review storm. We had to get it right from a regulatory perspective. We could have been facing an existential threat from a bad Gambling Act review if we had got the tone wrong.”

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PEOPLE

Leaders making moves

My Life OUTSIDE Gambling

• Entain has ended its long search for a new CEO with the appointment of former Shufflemaster and Scientific Games CEO Gavin Isaacs • DraftKings has appointed Linda Bukata Aiello as its new chief people officer and Erik Bradbury as Chief Accounting Officer • Flutter’s Sportsbet has named Michael Foster as Chief Information Officer IT STARTED WITH A HORSE “While I was working for Philip I set up a horse racing syndicate. You have highs and lows - there were quite a few lows. I had this vision of swanning around these wonderful racecourses in the summer, but Saroque loved soggy ground, so we would often end up at Bangor or Wetherby, when it was freezing cold and hammering it down.

It was trained by Venetia Williams and normally ridden by Aiden Coleman. It ran a few times and didn’t really do much, then on Boxing Day 2013 at Wetherby it came first. It was an incredible feeling. Unfortunately, that was the highlight of its career.”

THIS SPORTING LIFE “I don’t own a horse anymore, I spend my time betting on horses. I am a big rugby fan, as is my husband and my two sons. We have a split in the household. Myself and my eldest son support Ireland, while my husband and my younger son support England. We all went to Twickenham together hoping for a win, and myself and my oldest son were left hugely miserable when we lost with the final kick.”

IT’S A FAMILY AFFAIR “I’ve always been into football, going to watch Spurs with my Dad. Jürgen Klinsmann would be my highlight to date.

There have been a lot of disappointments… I’ve got more into rugby since having the boys.

I come from a very large Irish Catholic family, most of whom are in Ireland, although I was born and raised in England. I had an Irish accent until I was four, then lost it as soon as I went to school. I can’t even do a good Irish accent now! But I spend a lot of time there. We will be on a lake in Fermanagh in a few weeks, probably in the pouring rain doing loads of watersports, which the kids will love and I will be freezing! It is beautiful but the weather is atrocious.”

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• Mark Shaw has joined Flutter from Spotify as the company’s new Director of Global Payments Strategy • Tabcorp has named former Australian Football League chief Gillon McLachlan as the new CEO to replace Adam Rytenskild • Mohegan Gaming has promoted Nelson Parker to Chief Strategy Officer • Bragg Gaming has appointed Robbie Bressler as interim chief financial officer • Kaizen Gaming COO Aris Dimarakis has been promoted to deputy CEO, while Christos Tzalavras has been promoted to Chief Product Officer • Gaming Innovation Group has named Phil Richards as CFO of Platform and Sportsbook • Evoke has appointed Anne Sewell as Chief People Officer • Star Entertainment has recruited former Crown Resorts exec Jeannie Mok as COO • Patrick Miller has been appointed president and CEO of the Rio Hotel & Casino in Las Vegas • Former GiG CFO Justin Psaila joins White Hat Gaming as Group CFO • Craig Felenstein joins Sportradar as CFO from Lindblad Expeditions

SPOTLIGHT

SBC LEADERS ISSUE 32

CONTROL ALT DELETE SBC Leaders speaks to Evoke Chief Executive Officer PER WIDERSTRÖM and Chief Strategy Officer VAUGHAN LEWIS about one of the most challenging and transformational deals the industry has ever witnessed

Words by STEVE HOARE

E

voke CEO Per Widerström is relentlessly on-message. I don’t count the number of times he says “value creation plan” during our interview but if I did it would surely be comical.

This is all part of Widerström’s method. He needs to bang the Evoke drum incessantly as he looks to bring together two companies with very different cultures. It is two years since 888 acquired William Hill but only now are they beginning to look like one company.

888 and William Hill are legacy brands with real heritage but they have, Widerström admits, somewhat lost their way in recent years.

Others are more trenchant in their criticism.

In 888, they see a company that squandered 20-plus years of digital experience and market leadership to fall behind the likes of SkyBet and bet365, miss the gravy train in the US, and end up with no market-leading position anywhere in the world.

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Three years ago, it recruited a new chairman Lord Jon Mendelsohn and Chief Strategy Officer Vaughan Lewis to change that narrative and overhaul the direction of the company. Within months the opportunity to buy William Hill from Caesars Entertainment emerged.

It was the transformation opportunity that 888 had craved since losing a bidding war with GVC Holdings for bwin. party in 2015. It was not even its first bid for William Hill — a joint bid with Rank Group stalled on the grid in 2016.

This time round, 888 won Caesars’ auction but what followed was as traumatic a transformation as the industry has experienced.

Furthermore, it was a transformation of the business so total that the personality and culture of 888, which was so strong for so long, has been almost entirely erased from the corporate picture.

SPOTLIGHT

“

We are working intensively with our leadership teams across the company to ensure the message is clear that this is a new company

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SPOTLIGHT

SBC SBCLEADERS LEADERSISSUE ISSUE32 32

“

We discussed how a transaction of this scale would create a completely different business, and that comes with challenges

Vaughan Lewis, Chief Strategy Officer, Evoke

to complete the integration of William Hill.

The second was to transform the company’s identity. His next, the one he will really be judged on, is to transform its financial fortunes. And this is where the value creation plan comes in.

“We discussed how a transaction of this scale would create a completely different business, and that comes with challenges,” explains Lewis. “There are always alternatives such as smaller bolt-ons in high-growth markets.

We analysed a whole range of options but there are not many businesses that could immediately give us the scale, technology and brand recognition that William Hill could.”

When we meet at Evoke’s London headquarters, the company is just one month into its life as a rebranded entity. The purple and teal branding behind the reception desks greets visitors in a blaze of freshly-minted sticky-back plastic and is displayed on walls and TV monitors around the office.

CULTURAL RESET Widerström is approaching the end of his first year in charge of the company previously known as 888 Holdings. His first mission was

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SPOTLIGHT

Widerström has accomplished the first part of his mission. The company formerly known as 888 Holdings is unrecognisable from its previous self.

Evoke has arrived.

Strolling around the company’s London HQ it feels a little more like the company formerly known as William Hill but it bears little resemblance to 888 Holdings. If you speak to one of the legions of 8sters who have left the company since the merger with William Hill they will generally sigh, weep or rage about the transformation of the company they knew and loved.

This is the price of progress but it was also a necessary step for a company that had fallen far behind its peers.

“When we signed the deal with William Hill it was very clear to us that the people managing Israel would not be the people managing the merged company,” says one of those former 8sters, who was based in Israel.

“They were not British enough, not executive enough and not formal enough. 888 was something of an anomaly in being predominantly a British company but with the entire operation being based in Israel.”

William Hill’s acquired offices have widened the operational base and the Israeli executive team that previous CEO Itai Pazner led has been completely dismantled. Back then the entire management team was based in Israel. Now, nobody is. Widerström calls it “a cultural reset”. More bluntly, it has been a brutal restructuring.

A TURBULENT TRANSFORMATION Widerström joined the company 15 months after 888 completed its reverse takeover of William Hill and almost 10 months after previous CEO Pazner had left the company. Before Widerström had even started in his new role it became clear that the company needed pulling together.

During the three months between getting the job and starting,

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Widerström travelled to the company’s offices around the globe on a fact-finding mission.

“As I wasn’t CEO yet, people weren’t expecting me to say anything but I had the opportunity to listen. And whether it was Manila, Herzliya, Kraków or Gibraltar, one of the key messages was that we are not one company. It was clear we should have one new corporate identity. Of course, it goes beyond just a name and a logo. It’s the substance behind it, the values, the type of behaviour we would like to have,” explains Widerström.

The company identity was not the only thing that needed fixing when Widerstrom joined. 888 Holdings was reeling from a series of compliance failures and worsening macroeconomic conditions that had shifted the William Hill integration from a tricky balancing act to a massively aggressive costcutting plan.

Soon after announcing and signing the William Hill deal in September 2021, the UK Gambling Commission placed the three William Hill businesses (William Hill Online, William Hill retail and Mr Green) under licence review.

As competitors, the 888 management team was unable to get all the details of the review. This made it almost impossible to raise the debt or the equity needed to fund the deal. In the background, the war in Ukraine had erupted, oil prices had gone through the roof, and inflation rates were rising.

888 had originally planned to raise about £500m of equity and around £2.1bn of debt to fund the acquisition.

At interest rates of around 4 or 5 per cent it would have had annual interest costs of £60-70m a year.

By the time licence review became apparent, it became clear that 888 would have to negotiate a discount.

Caesars dropped the price by £250m but 888 could only raise £160m of equity - the most it could raise without a shareholder vote or a rights issue.

SPOTLIGHT

SBC LEADERS ISSUE 32

a more distinct customer value proposition for each of their brands; how too make sure they have a product and tech roadmap that is customer-first and actually delivers value; and responsible gambling and sustainability.

So it needed more debt but the cost of debt had gone up from around 4 per cent to around 9 per cent, meaning annual interest costs had shot up to £170m a year.

Meanwhile, the compliance team, which had been overhauled in the light of the William Hill licence review, identified chronic compliance failures in the Middle East. Enhanced due diligence thresholds on VIP customers were too high and were not being applied consistently.

“You can say it is very broad but it is about how you define what each initiative should deliver,” explains Widerström. “We are super-focused on defining those and also how you measure the incremental impact.”

THE NEW TEAM AT THE TOP Since joining Evoke, what has impressed colleagues most is Widerström’s clarity of vision and the sheer brutality of his words and actions when needed. This reality is far removed from his calm demeanour and somewhat bland public statements, which tend towards the greyest management consultant speak.

Chairman Mendelsohn wasted no time accepting Pazner’s resignation and took the reins while leading the search for a CEO. He needed someone with icy analysis and ruthless execution to continue a restructuring that had been knocked further by both companies’ compliance failures.

“It’s been a very challenging period,” says Lewis. “And it will continue to be challenging for a while. But it has put the company in a position where it will be sustainable and capable of podium positions well into the future.”

For example, when he talks about “refining the operating model to make sure we are a more lean and agile organisation”, he is talking about a lot of departures. He has had to accelerate a restructuring that had been dragging on for 15 months and was nowhere near completion when he joined the company.

It took Mendelsohn six months to settle on Widerström as the new CEO. His previous roles include a salutary lesson on M&A as Chief Integration Officer at bwin.party, CEO of Expekt, managing Director of Gala Interactive and Group CEO of Fortuna Entertainment Group.

His new executive management team has been recruited from outside the organisation to ensure a clean slate.

Lewis is the only executive who predates Widerström’s time in charge.

“Fortuna was a massive scale-up,” says Widerström. “From an EBITDA of €25m, we grew by five or six times in four years.”

“We are working intensively with our leadership teams across the company to ensure the message is clear that this is a new company. It is a new beginning,” says Widerström. “It is about identifying the best of both cultures and bringing it to the new one. Nine out of 10 of the excom do not have a legacy in either company.

It is a clear message that we are here for Evoke. It’s a new journey ahead of us.”

The process was so successful that Widerström is using the strategic template from his time at Fortuna and replicating it at Evoke. It consists of five strategic initiatives: how to build a winning organisation; how to build a customer lifecycle management process; how to deliver

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SPOTLIGHT

“

It goes beyond just a name and a logo. It’s the substance behind it, the values, the type of behaviour we would like to have

MAY 2021

Lord Mendelsohn becomes 888 chair

SEP 2021

888 Holdings agrees £2.2bn acquisition of William Hill’s non-US assets from Caesars

JULY 2022

888 Holdings completes acquisition of William Hill for a reduced price

JAN 2023

CEO Itai Pazner leaves 888

OCT 2023

Widerström starts as new CEO

JAN 2024

Widerström announces new executive team

MAR 2024

888 sells US B2C business to Hard Rock

MAY 2024

888 completes rebrand to Evoke

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SPOTLIGHT

SBC LEADERS ISSUE 32

“

When we signed the deal with William Hill it was very clear to us that the people managing Israel would not be the people managing the merged company

“When we are looking ahead with our value creation plan — the new strategy — we are instigating a new way of operation, which is more datadriven and more integrated with intelligent automation. Of course, then we are building a new culture as we go along. It is an ongoing process to make sure you have a fit for purpose, future-proofed culture and way of behaving in any living organisation in order to stay top in the industry.”

Fit for purpose, future-proofed, data-driven, intelligent automation; these are the buzzwords that Widerström falls back on throughout our conversation and throughout his presentations to the market but behind the buzzwords lies a gritty restructuring and a hard taskmaster.

Investors have yet to buy into Widerström’s vision with the share price languishing at around 80p. The Board decided to accept an £80m hit on revenue with a move away from dotcom markets after the Middle East VIP farrago. Given the minimal licensing and advertising costs of dotcom markets, the subsequent impact on profit was substantial but Widerström is bullish on the path ahead.

“We are profitable from an ebitda perspective,” he insists. “We are cash generative. The target is 5-9 per cent revenue growth per year, 10 basis points profit margin expansion, and deleveraging to less than 3.5x by 2026.”

These statistics underline the mantra he repeats time and again: “The value creation plan is about driving profitable growth, improving underlying margins and deleveraging.”

The shift away from dotcom markets and the extreme focus on value creation has made the strategic decision to withdraw

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from the US and focus on winning a podium position in four key markets — the UK, Spain, Italy and Denmark — all the easier.

“In the core markets we are clearly investing and scaling up to drive profitability. In other markets we are optimising cash flow. When we see opportunities to drive further growth, we will.

But we cannot be everywhere,” says Widerström. “Going forward, beyond the next three to five years, we are clear what success looks like. One of the reasons I took this job is that we have two fantastic brands with significant legacies that perhaps seven to ten years ago were seen as the benchmark for how to operate in this sector. That has not really been the case for the last X years.”

“We would like this great company Evoke to be where it should be at the top. When it comes to how to get there, we have true belief in our organic growth,” he continues.

He says there might be some “high impact, low capital investments” or brand partnerships such as the rapidlyexpanding 888Africa, but transformational M&A is off the agenda. Everyone has had quite enough of that.

Instead the focus will be on the nitty gritty of restoring two legacy brands through detailed operational excellence.

Widerström believes he has the team in place to deliver that. The markets have yet to see it.

“Every quarter it is important to deliver that quarter,” Widerström concludes. “In any situation when you have a new team, you need to show the money.

We need to communicate the proof points. It is a reset. It is a transformation of the business.

We are absolutely focused on the value creation plan.”

SBC LEADERS ISSUE 32

SPORTS BETTING POWERED BY

ON THE FOLLOWING PAGES 18 24 28

Interview: Betfred CIO Andrew Daniels Thought Leadership: Thomas Donson of DATA.BET Interview: SB Software Chairman Claus Rasmussen

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SPORTS BETTING

FOOTBALL’S AD CODE SHOWS WAY FORWARD English Football’s Code of Conduct provides a solid platform to debate and analyse the real impact of gambling sponsorships, writes SBC Content Director TED MENMUIR

are conducted in a manner prioritising the welfare of fans and their local communities.

The praise or puffery of English football will not be to everybody’s taste, yet the application of the code is important in fulfilling a key mandate of the UK’s gambling review.

O

On the afternoon of Britain’s hottest day of the year, the FA, EFL, Premier League, and Women’s Super League published a joint statement on the new Code of Conduct on Gambling-Related Agreements.

The news awoke editors from a hazy slumber, forcing them to dissect the leagues’ joint commitment to adhere to new principles governing gamblingrelated sponsorships from the start of the 2024/2025 season.

For sceptics, the four principles of the code will come across as another PR-led exercise to save football authorities’ relationships with multimillion-pound sponsorships from the gambling sector.

However, the governing authorities of English football have co-developed a forwardthinking approach to address ever-present concerns related to gambling sponsorships and their impact on the nation’s game.

The code should be embraced, as the quartet of football authorities has designed a comprehensive sports-first framework that ensures gambling sponsorships

English football has provided a code to complement existing statutory frameworks contained within the Gambling Act and further provisions related to British broadcast advertising rules and marketing standards of the CAP Code. As such, progress should be recognised as progress.

Recall, the roots of the gambling review were laid down in the 2019 Conservative manifesto, which explicitly laid out concerns about football’s relationship with gambling.

Although the review called for a rewriting of all laws and practices related to UK gambling, the subject of betting sponsorship and football has been the headline-grabbing news.

The gambling review’s White Paper drew immediate criticism for its vague response to gambling sponsorships by the parliamentary group Peers for Gambling Reform.

The group led reformists’ calls for government intervention on the matter, as gambling sponsorships were perceived to have been left out of the review and left to the football authorities to deal with.

English football has long grappled

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with its complex relationship with the gambling industry.

Critics argue that the infiltration of betting firms into the heart of English football compromises the sport’s integrity and exposes young fans to potential harm.

However, the introduction of this code signifies a pivotal shift towards a more conscientious approach, addressing these concerns head on and in a logical manner.

Of interest to all stakeholders will be the reporting on the accountability of gambling sponsorship filed with football authorities and the Department of Culture, Media and Sport (DCMS) to track progress on the four principles.

On the pitch and on the sidelines, 2024 was a summer of resolve for English football, strengthening its engagement with fans and solidifying its standing as the best-run and most lucrative system in world football.

If we can be sensible and stop the scepticism, we might just acknowledge that the Gambling Review has delivered its first comprehensive resolution to satisfy all parties.

Scan here for more from SBC News

SPORTS BETTING

SBC LEADERS ISSUE 32

NEVER DOWN TO LUCK Words by TED MENMUIR

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SPORTS BETTING

New Chief Intelligence Officer ANDREW DANIELS speaks to SBC Leaders about the tricky task of transforming Betfred’s High Street market leadership into digital success

I

n the first-half of the year, Betfred announced that it had completed its £100m acquisition and integration of technology partner Sharp Gaming, completing its migration onto a new tech stack for its digital operations.

After completing the twoyear project, the former CEO of Sharp Gaming and new Betfred Group Chief Intelligence Officer (CIO) Andrew Daniels speaks to SBC Leaders about the all-new tech division at Betfred, which seeks to transition its retail success onto digital channels.

“The swing between England winning and losing is millions,” says Daniels. “I’m an England fan. I really want them to win… But let’s just say that an England win and Harry Kane as the top scorer outcome will batter us!”

On the eve of the UEFA Euro 2024 final, between England and Spain, the dilemma of

Betfred’s new intelligence chief sums up sports betting’s ever-present conundrum.

Does intelligence count in a sector where uncontrollable elements ultimately impact end results, be it a red card, a rainy pitch, poor refereeing, or Harry Kane scoring or missing a penalty?

“Can you quantify intelligence against risk or luck?” Daniels asks. “I have thought about this, as Betfred was founded on [company founder] Fred Done’s winnings when England won the World Cup in 1966.”

Once more, everything revolves around England and football this summer.

EVERYONE’S IN TRANSFORMATION MODE Daniels believes that although betting has evolved through technology, “the fundamental practice of bookmaking remains the same”.

Fred built a phenomenally successful retail bookmaker. But we have not reached that same parity digitally. We have also seen our competitors expand internationally

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SPORTS BETTING

SBC LEADERS ISSUE 32

“

For us, it is day one, as we now have control of our own technology. Like retail we want to be in control of our digital offering, but also expand internationally

and margins being tightened.”

Daniels points to multiple gambling PLC competitors entering “transformation phases” in the past year, stating: “I’m not surprised they have their eyes on the share price and they need to drive efficiencies in their businesses.”

“You can add more data, machine learning, or AI into the mix, but it will always be about your book being matched against the punter, and you don’t control the elements in your destiny.”

Gambling, and sports betting in particular, are blunt risk-based industries, but reality should not undermine the importance of intelligence as a corporate competency. Reflecting on his 20-year career in gambling, intertwined with Betfred developments, Daniels points to “intelligence breaking corporate hierarchies and precedents”.

For gambling PLCs, Daniels notes that investors have pressured executive teams to copy the corporate efficiencies of Silicon Valley giants such as Amazon, Apple, and Google – “transformations that are forced on operators to adapt to.”

“Every business has its foundations.

We are coming up to 60 years, starting from a small family business in Manchester to operating the UK’s largest retail estate of betting shops. We now want to be an agile, technology-first led business. It’s a process. My role is to help that transformation and make sure we get there.”

BEYOND FRED

In his response, Daniels triggered the word “transformation”, which has become almost omnipresent in the vernacular of industry management in 2024. Questioned on the mere reality that all costs are increasing, and margins squeezed for industry incumbents, can intelligence outperform the hard realities of a cutthroat sector?

“Fred remains heavily involved in our business and recognises that we no longer operate as a traditional bookmaker, but that the company he founded is more akin to a financial services business.”

Probed on the factors driving Betfred’s transformation, and whether company founder and chairman Fred Done views intelligence as an innovation dynamic or a cost efficiency, Daniels reflected on the leadership team accepting its generational changes.

Though rooted as a family business, Betfred’s transformation has been led by Chief Executive and former IT boss Joanne Whittaker since April 2021. Whittaker leads a new executive team, tasked with the mission of growing Betfred “above and beyond the Fred Done era.”

“Historically, gambling businesses that made a lot of money could mask inefficiencies, but that’s not the case now with operating costs driving up

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WE HOLD ALL THE CARDS Modular and API driven iGaming solutions designed to help clients unleash bold ideas and deliver outstanding player experiences in regulated markets.

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As a discipline omnichannel is not a necessity for Betfred’s UK business.

“Fred built a phenomenally successful retail bookmaker.

But we have not reached that same parity digitally. We have also seen our competitors expand internationally.”

Daniels has witnessed many unbalanced omnichannel strategies, that paralyze growth between retail and digital businesses - “Retail has kept us in a good place and given us an advantage. We now have to control our technology stack and become nimble… Unlike others, we have not met our saturation point.”

Unlike PLC rivals, Betfred has no specific timeline to achieve its digital transformation, as the only objective “is to get there, by making these big strategic changes.”

“In every market we compete in, our biggest challenge has been technology,” continues Daniels.

“But I believe that our competitors are in the same boat.”

“We don’t have any real option. We do it ourselves, or we’re never going to be in control of our own destiny.

So whatever it’s going to take, whatever it’s going to cost, we’re going to keep doing it,” says Daniels.

Having completed the two-year integration of Sharp Gaming, as Betfred lead technology partner, Daniels views the launch of the Betfred Technology unit as the next step in Betfred’s evolution.

RETAIL THERAPY Although Betfred faces tough choices in its digital evolution, Daniels underscores the company’s proven resilience and pragmatism in becoming the UK gambling sector’s biggest retail operator.

During a decade of conflict around fixed odds betting terminals, many PLCs shrunk their retail footprint, which allowed Betfred to expand its position and market share, building the firm’s most lucrative unit.

“For us, it is day one, as we now have control of our own technology. Like retail we want to be in control of our digital offering, but also expand internationally.”

“To me it is about enabling that, by supplying technology that gives the business the tools that we can grow, we can expand, we can go into new markets and we can do that underpinned by a technology platform that is scalable, reliable and economical to run.”

Strategically, Daniels views Betfred’s ground-based number one retail position as the platform to accelerate online growth.

However, he is not as convinced as some that in omnichannel strategy is the be-all and end-all for UK digital operations.

Via a new technology platform Betfred controls its destiny.

Yet, for Daniels and colleagues, the generational bet is whether it can control its digital future against all of gambling’s unpredictable outcomes within an evolving marketplace.

“Strategists told us not to invest as it’s a diminishing return on retail bookmaking, but our turnover has returned to pre-COVID levels, whilst our competitors are still recovering.”

As such, a tough endeavor awaits Betfred’s new Technology unit, as once more the firm’s ambitions mirror that of the England football team… as the hits and misses will be in the millions.

As operating efficiencies are demanded from operators, Betfred maintains retail as its cost-effective stronghold, bringing its brand daily to an actively engaged audience.

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THE ART AND SCIENCE OF TRADING DATA.BET Head of Trading THOMAS DONSON studies the unique challenges, opportunities and differences between classic sports betting and esports betting

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he main distinction between trading traditional sports and esports lies in data availability and analysis. Classic sports benefit from abundant historical data, allowing for deeper analysis and more consistent patterns. The variables are fewer, making it easier to predict outcomes based on past performance. Regular updates on physical fitness, team news, and pregame reports provide traders with ample information to create accurate odds.

In contrast, esports is characterised by a dynamic environment with frequent game updates, changing maps, and a larger number of variables. The influence of these factors makes historical data more challenging to quantify. Changes in gameplay strategy and player dynamics occur swiftly, necessitating traders to be deeply invested in their discipline, watching every match and analysing every

tournament. Information is more complex to source despite rising social media coverage and esports-specific articles.

Operational challenges Trading itself presents unique operational challenges, particularly concerning data accuracy and real-time monitoring.

Sports have matured to a point where a single trader can manage multiple games using various odds and data feeds. The consistency of data and the established nature simplify formulating and maintaining prices.

Esports, on the other hand, demands constant live monitoring, especially inplay, due to the frequent updates and shifts in game conditions. Many events may lack data sources, making AI models less reliable.

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Integrity issues, technical glitches, and delayed streams pose additional challenges for esports traders 25

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It is essential to recognize that esports bettors differ from the classic sports betting clientele

Traders must understand roster changes, map impacts, and in-game conditions.

External factors such as integrity issues, technical glitches, and delayed streams pose additional challenges. Ensuring the use of optimal feeds and the fastest data is crucial, alongside a vigilant risk team to identify anomalies and maintain high service quality.

Technological tools and integration Trading relies heavily on advanced technologies and tools to gather, analyse, and act on data quickly and accurately. For the most part, both classic sports and esports need the same set of tools to allow experts to provide accurate coverage of events over multiple disciplines. Key ones include: • Official data sources; • Statistical modeling; • AI trading models and; • Real-time monitoring of news and social media feeds.

Areas that have become critically important to any trading in recent years begin with the data.

Having high-quality and detailed data that is fast and reliable forms the core of product pricing. However, the biggest strength comes from the analysis of all the collected data, which improves the algorithms and systems’ ability to adapt to constantly changing parameters within events.

At DATA.BET, traders leverage AI models to offer market-leading selections and rapid price adjustments. This integration ensures we are first to market with pricing on many tournaments, and we carry that same understanding into the logic of our in-play pricing.

comprehensive data coverage, advanced risk management tools, and strong technological capabilities. This largely remains the same for esports with a need to deliver the same top-tier quality.

However, there are additional factors an operator should consider when seeking a quality solution for their esports product.

A premium esports provider should have an expert trading team, official data sources, streaming, and technical capabilities to drive engagement. Additionally, in-depth market coverage with betting options attractive to players should be pivotal in the decisionmaking process.

It is essential to recognise that esports bettors differ from the classic clientele.

Having a partner who understands these nuances between different territories and varying levels of maturity allows a provider such as DATA.BET to offer a tailored solution for the customer base, regardless of the operator’s location.

Given the speed of game updates, developers’ technical changes, and integrity precautions, it is vital that any provider can demonstrate a fast-paced, dynamic integration and development cycle. DATA. BET excels not only in its trading capabilities but also in its technical capacity, ensuring constant work on optimising the products for clients’ needs.

The differences between trading traditional sports and esports are profound, requiring distinct approaches and expertise. By understanding these nuances and leveraging advanced technologies, operators and B2B companies can make informed decisions when choosing an odds provider. DATA.BET stands at the forefront of this evolution, offering unparalleled expertise and premium solutions to meet the diverse needs of the betting industry.

Choosing the right odds provider When choosing a supplier for traditional sports, operators generally prioritise companies with a proven track record,

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OLD SCHOOL HUSTLE AND MODERN VISION As SB Software Chairman and Co-Founder CLAUS GEMAL RASMUSSEN prepares to hand over his business to a new CEO, he reflects on the journey from mail order betting slips to global iGaming

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ou’re originally from Denmark.

What brought you to Poland?

Yes, but it took time. In 1994 I saw an opportunity when Danske Spil wanted to start traditional bookmaking. I applied for a job but didn’t make the final cut. That rejection motivated me to start Scandic Bookmakers with my partner. We saw it as an opportunity to make our own brand.

It was curiosity. I had a friend from Szczecin, whose family fled Poland during the communist era. I visited Szczecin with him for the first time in 1997.

Were you always interested in the gambling industry?

In 1997, we applied for a UK licence for Scandic Bookmakers. Back then everything was straightforward. My partner and I ran everything manually. We sent out the betting coupons by mail. Everything was offline and entirely manual. I typed everything by hand and we placed ads in Tipsbladet. The customers called us and we mailed them the coupons. I managed odds and logistics from Denmark, while my partner was operating in London.

I’ve always been passionate about gambling. I made my first bet when I was nine, which was about the thrill of predicting outcomes and not money. That excitement stayed with me ‘til now and drove me to start Scandic Bookmakers.

When did you realize the industry’s potential?

Did you have any data to work with?

In 1983, seeing sports betting operations in London during an England-Denmark match, I recognized the potential in the market.

It was my first encounter with monetizing my passion for sports betting.

Not much. We gathered the odds, compared them with other bookmakers and mailed the coupons to 2-300 clients per week. Payments and bet slips were sent to London. We handled everything manually and did not lose any bet or payment during those years.

Was that the moment when you decided to turn this into a business?

I knew I needed a strong CEO to continue the company’s growth and that’s when Filip came into the picture 28

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How did you settle the bets for winners then?

often faced losses due to poor user experience. Our focus on quality and unique features has been a key factor in our success.

Customers could transfer funds to our bank accounts and we tracked the deposits manually on the bank statements and faxed them then to London. It was a tremendous amount of manual work every day, week and month, but we always had a lot of fun.

You’ve led the company for 13 years.

Why did you step down as CEO? I realized that while I was good at building the business, it could be a hurdle on its way to the next level, because of my lack of IT expertise. As the business grew, it was clear that I needed someone with a deeper IT understanding and fresh perspective.

In 2002 we got lucky and bought a sports betting platform from a company based in the Faroe Islands. The internet was booming, so it made sense to transition to online operations.

I was extremely fortunate to have great professionals around me, such as [COO] Michał Głowacki and CTO Kamil Głowacki, who were instrumental in the company’s success. I knew I needed a strong CEO to continue the company’s growth and that’s when Filip came into the picture.

That must have been a significant investment?

It was. We bought the platform for DKK200,000 ($30,000) and also got Andreas, a software developer as part of the package – he was crucial for us.

By 2002, we started accepting online payments and it was a huge gamechanger. The business took off like a jet.

In that moment, what was once a hobby became a serious enterprise.

Why did you choose Filip Sosnowski as the new CEO? Filip’s experience, international background and recommendation made him the ideal candidate. His understanding of the industry and fresh perspective are crucial for further development of the company, continuing my vision and leading SB Software to the next level.

What are the significant milestones in SB Software’s history?

Key milestones include obtaining the UKGC licence in 1996, starting operations in 1997, and the sale of Scandic Bookmakers to Sportingbet in 2012.

We sold the brand and client base, but retained access to the software. This smooth transition allowed us to continue developing our platform under the new name, SB Software. This rebranding allowed us to attract new clients and continue growing.

Reflecting on your journey, what role has trust played in your success?

Trust has been fundamental. Being honest and building strong relationships with people around you have been crucial.

Success comes from hard work, smart decisions and a supportive network.

Nowadays SB Software is active in Africa.

What attracted you to the market?

How do you see the transition affecting SB Software’s clients?

It was more by chance. Our first client there was Nairabet from Nigeria, which was successful despite my initial skepticism. Other clients followed, but many of them faced challenges with exclusivity and switching platforms.

The transition will be beneficial for our clients. Filip’s knowledge of the industry and various platforms means he can address client needs more effectively and drive growth.

Now, with him as new CEO and the team in place, I’m confident that SB Software will continue to thrive and deliver exceptional value to its clients.

Our platform is valued for its usability, seamless integration and performance.

Clients who switched to other platforms

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ON THE FOLLOWING PAGES 34 40 44 48 60 68 72

Interview: Amit Berkovich of Evoke Interview: Robert Kocher and Sebastian Reddig of Gamomat Interview: Richardt Funch of EveryMatrix Interview: Mikal Imiolek of Wazdan Interview: Andrew Cochrane of GiG Thought leadership: Ashley Lang of Pragmatic Interview: Christoffer Anderson of 500 Casino 32

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IS THE UK READY FOR A NEW ERA OF KYC? While the UK gambling sector was in the midst of a regulatory overhaul prior to the general election, a newly revealed proposition from Prime Minister Sir Keir Starmer’s Labour Party caught the industry off guard, writes CasinoBeats Editor JOE STREETER

tells SBC Leaders that the policy could be a key driver to a new way of doing things when it comes to onboarding.

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t was a plan that was originally dismissed by the newly incumbent party. But fuelled by the lobbying of former Prime Minister Tony Blair, Starmer brought forward the introduction of digital IDs and enshrined it in the legislative agenda with its unveiling in the King’s Speech.

Open banking has long been touted as the tool to a more effective process when it comes to KYC and affordability checks, albeit not with as widespread adoption as anticipated. However, the implementation of digital ID checks could swoop in and elevate the efficiency of the ecosystem’s approach to KYC. Should the Labour Party push forward with these plans, it could also see the rapid evolution of the onboarding process into a new era, with the problem of adoption that diluted the growth of open banking simply disappearing.

Roger Redfearn-Tyrzyk, Vice President Global Gaming at IDnow

“In the UK gambling sector, player onboarding via database checks is still the most common verification method today. If digital ID cards were introduced, this could become a new, possibly even preferred, verification method, depending on how the regulator would choose to deal with this new verification option,” says Redfearn-Tyrzyk.

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In Singapore people have embraced digital ID so dramatically that it has replaced all 33 other IDs

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“Additionally, it will give the player an overview of exactly what data is being checked, so that they are in full control of it. At this moment in time, it may not be clear to the player what data is being checked or verified, unless they consult the small print of the terms and conditions. With a digital identity, the player would truly own their data on their device.”

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Should the UK look to maximise the potential of digital IDs it will take lessons from the Singapore model, where it has had a largely positive impact when it comes to onboarding in a myriad of sectors.

According to Redfearn-Tyrzyk, in Singapore people have embraced digital ID so dramatically that it has replaced all 33 other IDs and is used to prove identity for public and private transactions.

The user base for the implementation of the tech will require significant building though and it will take time before any sector can fully realise its benefits.

What it underlines though is that the mass adoption of new technologies can be a pivotal drive in player safety and efficiency and if governmental policy can elevate the usage of tech into everyday lives it can serve to the benefit of a plethora of key industries.

Scan here for more from CasinoBeats

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POKER NEEDS INNOVATION NOT REINVENTION Evoke Head of Poker AMIT BERKOVICH speaks to CasinoBeats Editor Joe Streeter about the need to reinvigorate the world’s favourite card game

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hile the surge in poker’s popularity that accompanied the pandemic has long since faded, it remains an ever-present in the offering of iGaming operators of all sizes as it remains a deeply engaging tool for a core group of players in the vast majority of key markets.

However, Evoke Head of Poker Amit Berkovich is concerned that poker is stagnating throughout Europe, which represents a challenge for the industry moving forward.

“I wouldn’t say the industry needs to reinvent itself, but it needs to innovate,” explains Berkovich. He highlights the importance of tapping into the desires of a new generation of players, who have limited attention spans and are constantly looking for the next novel way to play. It’s a trait that may obstruct their long-term potential as poker players.

Berkovich says that poker needs to bring to the fore what makes it attractive to players, utilising gamification as an avenue to evolve and bolster its popularity among a new generation of players.

GAMIFYING THE GAME “If you look at the poker industry as a whole, I think that the last big boom was when Winamax invented the Expresso and then PokerStars took it and made it their own with Spin & Go. I remember there was a lot of scepticism from the hardcore poker fans when it launched in 2013. They said ‘this is going to ruin the game’. I even remember that there was a lobby that complained to PokerStars.”

He says that the complaints were driven by fears that recreational players would be eradicated from the pools. Instead, it changed the industry for the better.

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Live events are no longer the acquisition tool they once were, but they are an immense branding opportunity

Drawing comparisons to the early levels of traditional video games, Berkovich sees potential in bringing elements of gamification into poker in a bid to educate players on how to play the game.

There has been a plethora of opportunities for poker to explore in order to drive engagement and expand its audiences – one of these factors for Evoke was increasing the level of socialisation within its games.

“Gamification is possible within the poker industry, but the core principles of the game must also be respected to create new experiences that enrich the game for players, rather than completely overhauling it.

It underlines the sentiment that the game doesn’t require drastic changes in order to return to growth, but instead simply needs to tap into new technology and be increasingly brazen in embracing what makes it great.

“There’s always a conversation around the skill gap in poker and how we bridge it.

Gamification can support this. If a player enters the space and they know very little about the game, then utilising gamification can teach them the ABCs of poker.

“I wouldn’t call anything perfect, but poker is as close to perfect as a game can be. It’s been played for a-hundred-and-something years and it has never changed,” says the Evoke exec.

Praising the impact of the growing social aspect to poker, he continues: “People love it. It’s a way to engage and it enables players to add to the game with friendly banter. In the end, poker is a competitive game and people like playing live because you can engage with players.”

“It’s like Mario Kart – a game which my children are infatuated with at the moment – you don’t just pick up the pad and start playing, the game gives you tips and supports you to grow your knowledge.

THE POWER OF LIVE EVENTS

“If there’s a way with gamification to teach the basics, to steer the players in the right direction with bankroll management and reward them for proper bankroll management, the game will just be enjoyed on a greater level.

As the digital age continues to engulf many elements of gambling, poker’s live experience has remained steadfast and unrivalled as a spectacle. It enables fans to see celebrities and renowned players go through the emotional rigour of a poker tournament, as well as allowing them to feel like the star of the show when they are playing.

“People don’t want to be told how to play, but education through a tip a day or something like that can certainly go a long way.”

Telly Bartolo, Marketing and Events Manager at Casino Malta, recently told delegates at the CasinoBeats Summit in Malta that with live poker tournaments there are two main aspects to focus on.

Berkovich says that adding gamification around educating the player is something Evoke (and indeed 888 before it) has pondered for a long time.

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SBC LEADERS ISSUE 32 casinos and having an offline entity is very positive for us.”

“It’s about giving the player an experience that is completely different to online and they can enjoy a very different feeling of looking at players in the eyes and the beautiful feeling of touching the cards,” Bartolo said.

To ensure its live events are as extravagant and unique as possible, Evoke does its due diligence and makes sure that its ambassadors are as impactful as possible.

“Then of course, the poker player that shifts from online to live is looking to travel and meet different people with a variety of different nationalities, so it doesn’t become just about the actual game but also becomes about all the other things and the full experience the player is having. The player won’t just remember their hands, but they will remember the venue and the actual experience they had.”

“We divide ambassadors into three groups.

We have the poker ambassadors, which are usually professional poker players with different degrees of exposure. It’s natural for them to post on socials when they play.”

He says the pros create good poker content and explain the intricacies of the game.

“Then we have the streamers, who are mostly micro-ambassadors with fewer followers.

They’re less renowned in the game, but they’re incredibly strong in front of the camera. They’re typically younger than professional poker players.

Berkovich emphasises that each operator’s approach to live events is different and also cites their importance to growing the game of poker.

“It’s no longer the acquisition tool it once was, but it is an immense branding opportunity.

We don’t make money off live events, but they are a real tool to create content. It is very powerful to come to London, Barcelona or Madrid and have a presence there. It gives us an opportunity to meet the poker community and allow them to engage with our ambassadors who are real personas. It is something that is very important.

“Finally, we have what we call cultural ambassadors, who are typically outside of the industry but love poker. They want to be better at the game, and they’re really good at something else. So for example, one of the biggest is JaackMaate from the UK. He’s a really popular influencer and he’s a cultural ambassador for us.”

“When it comes to selecting ambassadors, there’s a bit of trial and error, test and learn while we see how people react to them, and then start to funnel out.

“We are very much in two businesses: one is online poker, and the other is creating content, which is very important. Poker players have a subculture. They like meeting each other and aren’t embarrassed to say that they play poker – some of them even brag about their good sessions. This is why poker is very different to anything else in

“When I specifically looked at JaackMaate, the guy showed interest in the game. He is naturally hilarious and is a really, really good person and fantastic to work with.”

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MASTERING THE MOVE FROM LAND-BASED TO B2B ONLINE

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GAMOMAT Managing Director ROBERT KOCHER and Chief Product Officer SEBASTIAN REDDIG talk to SBC Leaders about their company’s impressive rise in the B2B online space

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elcome, Sebastian and Robert. It’s great to have you with us today. Sebastian, let’s start with you. The first half of the year has just passed; what have been the highlights for GAMOMAT during this period?

expansion. One I am particularly looking forward to is the release of ‘Crystal Ball Multi Symbols’ in October - a glittering addition to our Crystal Ball universe. This was an instant hit when launching for land-based and we cannot wait to see the reaction when the game is adapted for online players.

Reddig: Wow, there have been many highlights to talk of during a remarkable first half of the year. Several superb company achievements have been complemented by some exciting new game releases. Being named the Great Place to Work (Supplier), then Company of the Year was a humbling experience.

GAMOMAT’s brand extends beyond our games; it’s firmly rooted in its unique corporate culture, so winning these titles shows we’re delivering on our promise. At our core is creating engaging games and that makes it awesome to win Best Game Development Company Central Europe at the CasinoBeats Game Developer Awards.

Additionally, ‘Fancy Fruits Deluxe’ won the Game Retro-Style title at the same ceremony. We’re loving expanding and following player reactions to our Deluxe series that launched to celebrate our 15th anniversary. ‘La Dolce Vita Deluxe’ came out recently, to follow last year’s ‘Ramses Book Deluxe’ and ‘Crystal Ball Deluxe’.

Our newest standalone game was ‘Vegas Joker’ and it’s been a big hit. Collaborating with the team on these fantastic titles has been incredibly rewarding, and we are eagerly anticipating the reactions of our players to the upcoming releases.

‘Flaming Link’ is to make its debut before year-end too. Anyone who’s loved our Fire series or the Respins of Amun-Re series will instantly love this. Our studio has enhanced the successful Hold and Respin feature to integrate more achievable goals. We are also developing strong new titles featuring cutting-edge gameplay mechanics and a wide range of graphics. Stay tuned for these exciting releases. On the regulated market front, we‘re exploring entering additional jurisdictions across the globe where it fits our growth strategy. The future looks bright as we continue to create and expand our reach globally.

Shifting our attention to specifics, Robert, can you discuss GAMOMAT’s performance in the German and Swiss markets, noting the challenges faced by online casinos in regulated markets?

Kocher: Having enjoyed three-and-a-half years working for two Swiss casinos, there are limited comparisons between the two.

The Swiss regulatory authority recognised it had to learn from operators in the nascent online casino market and adapt.

The result is a win-win situation enabling the casinos to have a solid business model, strengthening player protection, which simultaneously deposited significant money into the Swiss pension fund.

Players feel safe and can also wager larger amounts within the framework of player protection - reducing the appeal to play outside of regulated casinos.

Staying with you, Sebastian, what can we expect from GAMOMAT for the rest of the year and even 2025, especially considering markets and games?

Reddig: For the rest of the year and into 2025, there are exciting plans in both game development and market

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‘Crystal Ball Multi Symbols’ will be released in October a glittering addition to GAMOMAT’s Crystal Ball universe

The German authority could benefit from Switzerland’s approach, which balances fewer restrictions with solid regulation, maintaining a strong gaming experience.

It’s worth emphasising that this doesn’t negatively impact the gaming experience and player protection. GAMOMAT’s brand is instantly recognisable in Europe and, in German-speaking countries it has some cult status among many casino players. That is why one of my highlights from my time in Switzerland is that our experience was regularly sought about when we launched GAMOMAT games online.

We are very well positioned in the German market and can benefit from brand equity. However, regulations are certainly challenging for platform operators and therefore also for us. As a German company, we naturally want to contribute to the progress of the German market by sharing our expertise with providers and experts. And for players, I’d like to say that I’m so excited about our roadmap and I’m confident that we’ll continue to generate enthusiasm in our home market for years to come.

Sebastian, let’s talk about social responsibility.

GAMOMAT has been engaged in CSR efforts for quite some time. Anything planned for this year in continuing those efforts?

Reddig: Of course, GAMOMAT is committed to maximising the impact of our CSR efforts.

We launched our Gaming for the Climate initiative in 2021, and it’s incredible we’re in its fourth year. We extend the initiative by introducing a new game, and partnering with an organisation to which we donate a percentage of the

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selected game’s profits.

There is a plan in place to announce the launch of a new game in collaboration with a wonderful organisation - sadly my lips are sealed for the moment!

Furthermore, we will continue our ongoing donations to Krisenchat and GermanZero, supporting their crucial work, amongst others.

Robert, given your focus on industry expos and events, could you describe how these are beneficial for GAMOMAT and what’s your personal highlight?

Kocher: For us, industry trade expos allow us to keep our finger on the pulse of the iGaming industry. We nurture our existing partnerships there, make new ones and expand our network in every respect. As a hybrid company, these events provide us with a chance to spend time with each other outside of the usual working environment, which I find particularly important in partnership management.

Well-maintained partnerships in which people feel valued are what drive us.

There are many highlights that I can list, but in my still relatively short time at GAMOMAT, my top moment was being named Best Game Development Company in Central Europe at the CasinoBeats Game Developer Award. We’ve been honoured with several awards this year, which makes me incredibly proud and filled with gratitude. But this award was data-generated based on rankings in casinos and spins - and determined using an algorithm. Witnessing our company overtake and come out ahead of some truly special companies in our sector was outstanding.

Of course we celebrated the award in style!

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A YEAR IN THE LIFE EveryMatrix Head of Sales, Casino RICHARDT FUNCH talks us through a remarkable year of new clients and new products and looks forward to expanding into new jurisdictions during the second half of 2024 and beyond

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veryMatrix seems to be breaking records every month. Tell us about the highlights and what has been driving this growth curve.

ongoing focus, knowledge and innovation for each of our verticals, we have dedicated business units and teams.

Casino is one vertical that continues to smash records, surpassing six billion monthly game rounds and exceeding €6bn monthly turnover in June this year – just 11 months after hitting four billion monthly game rounds and €4bn respectively.

After an amazing 2023 with record breaking numbers, it’s astonishing how 2024 has so far proven to be even more successful across the entire business, from sports to casino and everything in between.

This accelerated growth has been generated by a combination of significantly increasing existing customer revenues and going live with new operators including Veikkaus, DraftKings, Golden Nugget, BetMGM and Rush Street with several other global and local brands due to go live in the coming months.

As one of the only pure B2B iGaming technology providers our success is directly linked to our customers’ success, which is why we keep pushing the boundaries with them to secure a sustainable future.

One of the main growth drivers is undoubtedly our modular, API-driven product approach to our Player Account Management (PAM) platform, casino, sports betting, payments, and affiliate management products, designed to give our clients maximum flexibility and control, enabling them to deliver the best possible player experiences.

Our vision has been to integrate the best of breed content and technology such as our casino productivity and aggregation platforms, CasinoEngine and SlotMatrix, so our clients can give their players the ultimate experience.

In the first quarter of 2024 alone, we integrated 886 new games, bringing the total amount to 29,000+ games from 320+ games studios, however the key to its success is not only content,

Our customers can operate each product independently with their existing products or we can bring as many together within a turnkey solution. To ensure we have the

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it’s everything around it. This means promotional tools and features we develop around aggregation to maximise revenue and value. JackpotEngine, for example, is a gamification tool that allows customers to create and offer configurable jackpots across any of our games.

CasinoEngine also formed a central part of our largest ‘turnkey’ launches ever, including Bet-at-home and the Hungarian Lottery digital betting and gaming brand, TippmixPro. Both went live within weeks of one another with a migration of nearly six million players from Bet-at-home’s legacy provider to our platform and tech stack.

Following a fruitful 2023 and 2024, marking several firsts such as becoming the first iGaming supplier to receive World Lottery Association Safer Gambling certification, what’s next for EveryMatrix’s casino division?

Receiving this recognition validates how we view ourselves as a business and underlines our commitment to uphold safer gambling and sustainable best practice.

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Examples of our approach to sustainability include opening a new, purpose-built ecofriendly office for over 400 staff in Bucharest, Romania in late 2023. Employing building materials and construction methods that are not harmful to the climate and environment, the office sets a new standard for corporate and environmental responsibility.

Our recent acquisition of FSB Technology has immediately established a presence in the UK, Ireland and Africa

Our 1,000 employees across 13 offices also regularly give back to our communities. For example, we founded TeachStream, our own fully-funded educational NGO, in Bucharest in 2015, with a mission to offer local children the chance to access quality education that would be otherwise unavailable in Computer Science, Maths and English. We provide children with computers, tablets, smartphones and knowledge and contributed €200,000 in the last year.

Which territories are in focus for this year and what differentiates EveryMatrix from competition?

What innovation has the casino business unit designed and delivered in the last year?

It’s no secret that we’re heavily increasing our focus on Latin America, a market where we’re determined to become one of the major technology providers. We’re already live in several Latin American markets and seeing significant growth across the region with a dedicated office opening later this year. We gained certification in Peru in March this year, an important step for us to further increase our LatAm footprint.

We are focused on continuously investing in developing new products and features around CasinoEngine and SlotMatrix. This is essential for them to remain ahead of the competition and, most importantly, to keep driving customer growth.

Our cross-product bonus system BonusEngine, which provides a wide range of promotional and gamification tools to improve acquisition, retention and enhance players’ gaming experiences, has recently given birth to a powerful product called BonusEngine Boosters.

Our recent acquisition of FSB Technology has also immediately established a presence in the UK, Ireland and Africa where FSB has strong market share.

What differentiates us is that we are a pure B2B provider with no ties to our own consumer brands. This means our growth is 100 per cent committed to the success of our customers.

Seven years ago, we took a decision to create a strategy where dedicated teams develop and operate each product independently. This has created a unique foundation for innovation and the ability to serve our customers with true product expertise and excellence.

This will soon be available within SlotMatrix and give our customers access to a unique arsenal of gamification tools purpose-built to add multiple layers of additional excitement, user experience and drive further revenue. These include Customisable Jackpots, Challenges, Lucky Wheel, Free Spins, Tournaments with real-time leaderboards and much more making every game ‘stickier’ leading to enhanced gaming experiences.

What can attendees expect at the EveryMatrix stand during SBC Summit 2024?

Another milestone is our new live casino product, PlayMatrix. One of the things that makes PlayMatrix stand out from other live dealer suppliers is the customer-centric approach. This is aimed at building bespoke live dealer tables using the latest technology, prioritising the needs and preferences of our customers and shaping strategies and solutions that best fit.

We’re gearing up for something exciting on our stand, including new products. That’s all I can say for now, so you’re invited to join us to learn more. I’ll be there with my team of industry experts including Alexandra Breinig, Hasmik Movsisian, Josmar Diaz, Nikola Nenkov, Meri Nersisyan, and our Head of Lottery, Nikolina Gabelica.

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We are Neosurf We are 20 years serving this industry Neosurf isn’t just a voucher or wallet service; we take responsible gambling and fraud data sharing seriously. Our KYC and Data Handshake product is crucial to support your needs in preventing fraud, ensuring affordability, and promoting safe gambling practices.

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Come and find us at the Neosurf Coffee Bar and Lounge, (in the Payment Expert Summit area)

business.neosurf.com

SBC LEADERS ISSUE 32

WE DON’T BET ON SUCCESS

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WE ENGINEER IT Wazdan Group CEO MIKAL IMIOLEK explains the origins of his ‘online gaining’ philosophy

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e don’t bet on success.

We engineer it,” is a bold statement. Can you elaborate on how this philosophy shapes the development process of Wazdan’s games, notably the Coins series, and how these games set new entertainment standards in the iGaming industry?

Our philosophy is a bold one.

Rather than just a catchy tagline, it permeates every aspect of Wazdan’s gain-focused approach to game development. We design what I call ‘online gaining’.

Engineering the innovation and intuitive creativity that goes into all our games is perhaps best personified by our incredibly successful Coins series.

The pursuit of excellence throughout each strand of the game development process starts with meticulous research. We painstakingly analyse

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market trends and player feedback to inform the process. Advanced algorithms are then employed to craft unique and engaging mechanics, and continuous iteration ensures a refined and fair gameplay experience.

The Coins series throws traditional base game wins out the window, opting for an entirely novel structure and setting new trends in the iGaming industry. Unique mechanics like Cash Infinity, Sticky to Infinity and Cash Out set new standards for player engagement, allowing our partners to gain again and again with every new release.

Wazdan’s aim isn’t simply to create exceptional games; we’re aiming to set new industry benchmarks.

To achieve that lofty aim, we must relentlessly focus on user experience, cutting-edge technology integration, and continual invention to ensure we stay ahead of the curve.

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With the iGaming landscape constantly evolving, can you discuss your latest market expansions and how Wazdan ensures compliance and customisation to meet diverse regulatory requirements?

We’ve heard a million times that the iGaming landscape is continually evolving and that’s never been truer than it is today, with a congested marketplace full of creators jostling for position.

That dynamism is something we at Wazdan understand like no other, which drives our need for constant adaptation and growth in new regions.

Our recent expansions into newly regulated regions in Asia (Philippines) and Latin America (the province of Buenos Aires with Brazil and Peru coming soon) showcase this agility. Wazdan fosters strategic partnerships with local operators like Betsson Argentina or SG8 to ensure success in these diverse markets. These partnerships provide invaluable insights into market dynamics.

Compliance is paramount. Dedicated legal and compliance teams navigate the intricacies of ever-shifting regulations.

Games are meticulously tailored to meet regional requirements, including RTP adjustments and content localisation.

Regular audits and certifications maintain the highest standards.

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Innovation is potentially the most overused noun in the industry, and ours is one that is crammed with companies claiming to be driven by it

We aim to go beyond merely complying and attempt to customise as much as possible to ensure our portfolio remains agile for new market entry. Our flexible game design caters for different player preferences, while each of our slots can be played in every currency and over 30 languages.

At the same time, collaboration with regulators ensures games are not only compliant but, most importantly, fair, with responsible gaming practices embedded to prioritise player safety.

Exceptional support is crucial in maintaining strong relationships with clients. Can you explain the role of your customer support teams in delivering the best service to your partners?

Wazdan recognises that exceptional customer support is the cornerstone of strong client relationships. Our approach is well-oiled after years of refining our processes: Sales, Account Management and Technical Support work in a harmony that we’re exceptionally proud of.

Proactive engagement allows them to anticipate and address client needs before they arise.

24/7 technical support ensures issues are resolved promptly and efficiently. But exceptional service goes beyond reactive solutions. We prioritise continuous improvement through regular training for our support teams, ensuring they’re abreast of the latest technologies and trends.

The focus is on providing customised solutions and

personalised support for each client. This can range from tailored marketing materials to branded games. Feedback loops ensuring service quality and client satisfaction are constantly on the rise. What truly differentiates Wazdan’s support is our deep understanding of the iGaming industry and our client’s operations.

Our games and technologies bring both short and long-term gains for everyone involved.

Multi-million network promotions have become a hallmark of Wazdan. How do these promotional strategies align with your engineeringdriven approach, and how have they impacted player engagement and client satisfaction?

We have indeed become synonymous with major network campaigns, with total gain reaching €8m in 2024. But these aren’t random marketing ploys; they’re meticulously engineered to align with our core philosophy of bringing gains to our partners.

Data is king, and we leverage it to craft promotional strategies that maximise impact and engagement.

Integration with tools like Mystery Drop ensures promotions seamlessly enhance the player experience. Analytics are used to measure success and refine campaigns for even greater impact.

The results speak for themselves.

During promotions, player activity and retention rates soar, which is the natural result of players being rewarded and engaged, leading to enhanced loyalty.

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Clients consistently report positive feedback on the effectiveness of these campaigns in driving revenue.

The iGaming industry is highly competitive, and many companies claim to be innovative. From your perspective, what differentiates Wazdan’s approach to innovation and engineering from that of other companies in the industry?

Innovation is potentially the most over-used noun in the industry, and ours is one that is crammed with companies claiming to be driven by it. But what I believe truly sets Wazdan apart is our holistic approach. Engineering principles are woven into the very fabric of our game development process, from ideation to execution, striking a perfect balance between creative spark and technical excellence.

Many companies fall short by simply chasing trends. Wazdan prioritises true innovation fuelled by long-term research and development. Player-centric design is paramount, with feedback constantly integrated into the development cycle.

Our edge is evident in our proven track record of delivering highquality titles like ‘9 Coins’, a game that has demonstrably inspired others in the industry.

The robust engineering that provides the backbone to all our content fuels sustainable growth, while visionary leadership and a dedicated team push boundaries and redefine what’s possible in the iGaming space.

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CRAFTING the PERFECT PROFILE PIN-UP Global is moving into B2B, buying startups and advancing into cyber-security among a host of other developments. Chief Executive Officer MARINA ILINA gives us an update

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IN-UP Global’s profile in the industry has grown significantly over the past year.

What have been the biggest factors in such rapid development?

Since our announcement in 2021 that PIN-UP became an ecosystem, almost every other company now calls itself that too – with the identity of ecosystem and organisational structure being lost. It is important for us to reflect the principles of transparency and reliability in the structure, which is what we are moving towards at the moment.

The industry doesn’t stand still – even if the news is silent. The gambling industry has always been renowned for its highly-intensive, technologydriven and highly competitive nature. In the face of a complex and highly regulated environment, there is only one way for market players to grow – they must never stop. This is what our strategy implies – we are growing both in technology and the number of products we develop for gambling operators, as well as in expanding the brand’s presence in different areas of the sphere. The investment fund has enabled us to expand our portfolio into two other large areas, the results of which we will report on shortly.

We expect to obtain a large number of certifications and licences in the near future – I am sure our products will be very competitive. We have moved into B2B and now our platform and proprietary software solutions are available to other brands, not just to PIN-UP. We are very interested in the B2B market; we are always ready to share not only our software products but also our expertise.

The last time we spoke was last year. What business-critical changes have taken place at PIN-UP during this time and what mistakes have you made along the way?

As for the mistakes. We prefer to refer to them as opportunities. Of course, mistakes happen, and we analyse them carefully to draw a lesson. I am sure that experiences like this only allow us to get better. So, for the PIN-UP team, mistakes are the work in progress – we focus on fixing them and avoiding them in the future.

PIN-UP has seen a lot of changes. We have moved away from the ecosystem format and are in the transition phase to a holding company.

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The leader must have a clear understanding of where the company is moving and why

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Cryptocurrency is really interesting and attracts attention with its advantages, but our audience is not yet ready for a large-scale adoption of these technologies

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Your management style is known for being highly demanding. What do you think are the leadership qualities needed to succeed in an industry as competitive and dynamic as iGaming?

In my ideal world, regulation should be developed by market players in cooperation with the government.

Unfortunately, we often see the opposite situation, when the government just skims the surface and brings down bills that either do not work or drive business into the shadows.

The leader must have a clear understanding of where the company is moving and why. Naturally, this should be subject to financial interest, competition, regulatory considerations and relations with regulatory authorities. We have an understanding of where we are going in the next two years — I don’t believe in planning for the longer term in this area.

I think several factors are important in any regulation: tax burden on the operator/tax burden on the player (and who is the tax agent here), and grey market control.

More often than not, states think that if businesses are tightened up with mandatory deductions, it will be good for the country. In reality, however, operators are very good at counting money. Licensed operators will not work in the countries where taxation, for example, mandates withholding winnings from the player, but does not regulate the grey market. Players themselves will not play in licensed products. Everyone is waiting for the regulation to happen in Brazil now, and I’m sure that will be a major factor for many to decide whether to go into this white market or not.

All PIN-UP employees have clear goals and objectives for each work period. Each department is interdependent on the results of their peers. You can’t just fail to do a task, because the whole company expects results. The leader sets the pace, assesses the manager’s competencies and optimises processes. The manager must be open-minded and resultsoriented. In order to achieve all of our goals we live on a non-stop schedule, yet the entire team understands what they are putting so much effort into.

Intellectual honesty and integrity are also critical. One of PIN-UP’s values is to be open and honest in communication.

We strive for transparency and straightforwardness in communication.

If there are problems or someone is not doing their job well, we speak up right away so that we can quickly address all issues and improve processes. The success of the business also depends on the leader’s ability to be honest and guide the team in the right direction.

How does PIN-UP Global help its partners in regulated markets to adapt to ever-changing regulatory requirements?

All of our software solutions can be customised to regulated markets. We are able not only to develop a policy of responsible gaming and timely identify players who may spend time in online products to the detriment of their interests, but also to adapt marketing, loyalty programs, and all communications with players to the required legislation. We are not standing still but adding more and more customisation for the convenience of operators, so we expect new franchisees with European regulations in the near future.

Recently, many countries have been tightening the regulation of online gambling. To what extent do you consider attempts to restrict the industry’s work to be appropriate?

One could use an analogy with prostitution: if it is not legalised, it does not disappear, but works uncontrollably in the shadows.

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Tell us about your B2B products and services. You seem to be doing some innovative things with marketing services and regtech.

but right now we are focused on more traditional payment solution formats. In terms of potential, I think cryptocurrencies and blockchain technology will evolve iGaming and greatly enhance companies’ competitiveness in the market.

We have divided all our products into multifunctional platforms that can independently integrate with different operators and providers. We can separately provide services for CRM, marketing and retention. In fact, we are preparing a large affiliate project. The market will also shortly hear about our new all-in-one product, which will take risk management and anti-fraud in iGaming, and beyond, to the next level.

Cybersecurity is one of the key challenges for the industry. What technologies and security measures are you implementing in your IT solutions to ensure your partners’ data and transactions are protected?

For PIN-UP, cybersecurity is one of the key functions. We are committed to ensuring the security of our clients’ data and to identifying and minimising business risks in a timely manner. We use a set of organisational and technical measures to protect information.

Our approach includes multiple layers of protection, from workstations to products at all stages – from development to operation.

The information security solutions we utilise include various services from our cloud providers.

What innovations in gambling and betting do you think could fundamentally change the market in the coming years? And how is PIN-UP preparing for it?

Automation, simplifying interfaces and replacing human labour with software solutions will drive the industry – and I’m not just talking about artificial intelligence here.

As our business is constantly evolving, we are modernising our approaches to security by applying cutting-edge technologies, both commercial and open-source. We also focus on staff training, so that employees are informed of current threats before it’s too late. In terms of security, we provide roundthe-clock monitoring of important events that require attention and response.

Automating everything – from communication with players and choosing the best funnel for it, to the right triggers for retention. It’s important to transfer everything from human labour to automation.

Firstly, it is more convenient to count in this way, and secondly, it frees the field for creativity of specialists who work with such software.

You have previously stated that you plan to invest in promising industry startups. How is the search for promising startups going, what exciting ideas have you heard about, and what is your overall assessment of the startups market?

As for the games themselves, they should have a wide range from very simple interfaces and minimal action to deep game mechanics with buying bonuses and extra features.

With the growing popularity of cryptocurrencies and blockchain technology, many companies have started to integrate them into their platforms. What do you think about the potential of these technologies in iGaming?

It’s a great topic. We have reviewed hundreds of applications and MVPs over the past six months. They are completely different. It’s important to note that, unfortunately, most startups are created simply as an idea – without a financial model crafted for it.

Cryptocurrency is really interesting and attracts attention with its advantages, but our audience is not yet ready for a large-scale adoption of these technologies.

Business should be driven by money and ideas on how to earn it with benefits for the user.

More often than not, startups have a lot of ideas but no economic model and no purpose – what a product is made for.

We are keeping an eye on market developments and integration opportunities,

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We keep setting unrealistic goals for ourselves and achieving them

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Automating everything – from communication with players and choosing the best funnel for it, to the right triggers for retention.

It’s important to transfer everything from human labour to automation

At the same time, there are some great solutions – new approaches and formats of advertising platforms, scalable platforms, traffic commands – all of these are perfectly overlaid on financial models and can develop the market and operators who will use them.

When investing in a product, we always utilise our expertise and strengthen current teams to produce quick and meaningful results for them and for us. Pretty soon we will see where we invest and we will be able to give many new tools to the market.

Your brand, and you personally, have been recognised in the marketplace with more than one award. How do you plan to maintain your leadership position in this area?

We keep setting unrealistic goals for ourselves and achieving them. We develop cool products and we look at every problem as a challenge – trying to solve it in a way that the market hasn’t figured out until now. Getting tons of innovation and great results.

Businesses stop growing when the manager is fed up or tired. I can say with certainty – PIN-UP is not facing that problem in the coming years.

Imagine a simultaneous worldwide ban on the industry tomorrow. What would you do in that case?

This is an interesting question. If gambling operations are gone, we always have software that can handle high load projects in different locations, cool anti-fraud, traffic skills and retention – I think it will be either some incredible e-com with services or a big fintech (which is more likely).

The banking sector is very similar in specifics, although there are some differences. It is likely that the neobanking, lending or exchange-traded products sector will have to meet a new market player.

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Can you imagine PIN-UP in three to five years? What new features and products have emerged?

As I’ve said before, I don’t believe in such long-term planning in our market. In the three-to-five year perspective, it is generally difficult to predict what the market will be like and in which direction it will develop. But I would definitely like to see strong competitors in the future who know how to manage finances efficiently and make really cool products, rather than focusing on one thing.

What trends in the industry do you think will dominate next year?

Automation and the replacement of human labour with software solutions such as artificial intelligence and machine learning will dominate. This will lead to better personalisation and increased security for players.

The increasing use of blockchain technology and the development of mobile platforms and apps is also evident. It will provide players with even greater accessibility and convenience.

Finally, I would like to hear about your plans for the future – what are you ready to surprise the market with?

Well, I won’t reveal all the secrets ahead of time, otherwise how will we surprise you later, but we told you earlier about the advantages of our anti-fraud development, including the implementation of machine learning and artificial intelligence technologies to achieve the highest results, reducing manual labour and speed of detection of fraudulent strategies. Now we are in the process of packing all options into one convenient platform, which can be used by all interested businesses in the niches of iGaming, e-commerce, banking and others.

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PIONEERING NEW GLOBAL OPPORTUNITIES FOR SWEEPSTAKES Gaming Innovation Group (GiG) Chief Business Officer ANDREW COCHRANE speaks to SBC Leaders about the opportunities inherent in merging sweepstakes with social gaming

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ndrew Cochrane has developed a reputation through his ability to define strategic commercial objectives, identify growth opportunities, and maximise revenues. His career has been marked by significant contributions at SBTech and DraftKings.

Now at GiG, Cochrane is spearheading a surge in new business opportunities, which he hopes will be game-changing, leveraging his experience and strong partnerships to drive the company’s ambitious growth strategy.

Cochrane has rejoined his former SBTech boss Richard Carter, along with former DraftKings colleague James Coxon, who is now Chief Operating Officer at GiG. Having managed some of the largest pipelines in the B2B industry, it’s time to bring that knowledge to bear fruit once more.

“It’s been a busy period for the entire executive management team, with a

rather obvious objective to grow our business,” explains Cochrane. “What I find most promising is that we’ve got a very strong foundation with a very strong leadership team in place now.

We’ve hired some great people into the business and taken the time to find an understanding of what our products and strategic objectives are. If you are left with great people, you’ve got great technology, you’ve got great products, and you can put all that together with some geographical focus in Europe, Latin America and North America where opportunities exist, then I think we’ve got an exciting future ahead for GiG.” A NEW ERA FOR SWEEPSTAKES AND SOCIAL GAMING One of the key areas of focus for Cochrane and GiG is the reemergence of sweepstakes as an extension of social gaming, providing the perfect ingredients for entertainment.

The global sweepstakes market is expected to more than double from $3.1bn in 2022 to over $7bn by 2025

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The sweepstakes gaming market experienced enormous growth in 2020 due to pandemic conditions, and has continued to grow at a healthy pace. The global sweepstakes market is expected to more than double from $3.1bn in 2022 to over $7bn by 2025.

There is huge scope for growth but the technology has so far failed to keep pace with demand.

“There is a need for a premium solution to enter the market space, and this is where GiG’s true value in shaping the entire vertical comes to the fore,” says Cochrane.

He sees the social sweepstakes market as a global proposition, with the main focus in North America, but with plenty of opportunity in other large growth markets across Europe and Latin America.

“It offers the potential for rapid expansion and with that the necessity for robust solutions to navigate the challenges of maturing markets”, he says. “We were limited a few years ago by technology in linking the social aspect of pooled sweepstakes-type gamification, which simply isn’t the case now. I think people are waking up to the engagement present in merging the two worlds of social gamification – as we certainly have – investing a considerable amount of resources into developing the very latest social features and integrating them with a varied and first class games portfolio.”

“We are aware how well we are positioned to help lead the sweepstakes market, given the premium and proven technology we deliver, and being able to leverage cross-platform accessibility that is safe and risk free,” continues Cochrane. “In building a bespoke sweepstake and social casino product like SweepX on an open source tech-stack too, it makes it extremely efficient to operate and scale, ensuring we are able to offer the most cost effective solution.”

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I think people are waking up to the engagement present in merging the two worlds of social gamification

PRODUCT DEVELOPMENT PRIORITIES “Our X-Suite – CoreX, SportX and of course SweepX – are more than a suite of products”, explains Cochrane. “Each component is meticulously crafted to address the evolving needs of the industry. CoreX, the iGaming platform solution, is about creating an ecosystem where players are engaged, enjoy an exceptional user journey, and are ultimately retained as a loyal customer. The technology is event driven and built on microservices architecture, which provides the fastest technical integrations with third parties, allowing for large scale operations with parallel teams working at the same time.

“We can also define and create actionable business rules – on demand, without the need for coding knowledge – with our real-time rules engine. It’s where advanced machine learning models come into play, enhancing decision-making abilities, and setting GiG apart from competitors. It’s significantly more advanced than your standard data analytics. It’s intelligent data utilisation that drives insights, informs strategies, and ultimately, shapes success.”

“SportX, our sportsbook solution, goes beyond conventional sports betting platforms. It’s a dynamic, data-driven solution that empowers operators to exceed

user expectations. More than just odds provision, it has been built to create an immersive sports betting experience that captivates bettors. We offer the widest range of integrated marketing tools, dedicated trading, risk and fraud management, daily reporting and bespoke reports and one of the most comprehensive betting offers with a wide range of sports to target any geographic location, as well as tournaments and divisions.”

CONTINUAL IMPROVEMENT The feeling at GiG is that there is considerable opportunity for growth, for both itself and the entire industry, and you get a real sense of that confidence when evaluating how its solutions have been strategically positioned to meet the unique demands of each region.

The company’s focus has been to extend beyond commercial growth to establishing strong partnerships, driving market penetration, and navigating the evolving regulatory landscape in these key areas.

“We’ve been all over the world this year. As well as many other industry events, we’ve been with SBC in Rio and New Jersey, we are exhibiting in Lisbon and will be in Miami too, as it’s important that we put people on the ground.

“We are adjusting to slightly different ways of doing business –

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perhaps different to what GiG has done before – so we embrace that and take that as an opportunity.

I believe that if we put people on the ground and ensure we are localising our solutions, making sure we’ve got all the right crash game suppliers, the right content, the right payments it helps show how serious we are about growth in markets that we are focused towards. We’ve got some great integrations that we’ve not even had the opportunity to announce yet, so for sure we’ve got some new opportunities coming live in the coming months, none more so than with Primero powered by SweepX, and also partners in Latin America, in Mexico.”

Under this new leadership GiG has crafted a clear vision for the future. With renewed optimism for the standalone platform and sportsbook business, GiG’s strategic goals are now more forward-thinking and proactive than ever before, identifying opportunities and challenges well in advance. The sweepstakes market has the potential to be enormously successful, and as the name suggests, Gaming Innovation Group is committed to leading the way. By blending revolutionary technology and industrialising commercial targets, GiG and Cochrane are committed to providing the very apex of what is possible, and with it shaping the future of the iGaming sector.

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WE ARE THE CHAMPIONS Champion CEO Anton Chumel introduces the Ukraine-based games supplier with a difference

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an you introduce Champion and explain its significance in the iGaming industry?

offering unique features that enhance player engagement.

‘Kong of the Jungle’ transports players to a vibrant, green tropical environment.

The dynamic jungle theme and thrilling gameplay appeal to a wide range of players, inviting them to explore the mystical jungle and uncover hidden treasures.

Champion is a vibrant and influential player in the iGaming industry. With over a decade of expertise, we’ve transformed into a premier game provider, making significant strides across Europe, Latin America, and Central Asia.

‘Fish Day’ immerses players in a charming and whimsical underwater world, brought to life through captivating sea cartoon graphics. The game offers a unique blend of vibrant visuals and engaging sound effects, creating an enchanting atmosphere that keeps players hooked.

Our commitment to crafting immersive and engaging gaming experiences has been a cornerstone of our success.

We boast a diverse portfolio of over 80 games, ranging from slots to table games, and are on the verge of launching our first crash game—an exciting new frontier for us. As part of our 2025 goals, we’re set to release two new games every month, ensuring our players always have something fresh and thrilling to enjoy.

‘Cossacks’ offers a nationalistic and historical vibe. With an intense theme and dynamic gameplay, including a bonus game feature, it captivates players looking for an action-packed experience.

What has been your biggest hit game and why do you think it was so popular?

These games stand out due to their diverse themes and impressive dynamics, offering something for every type of player and ensuring an engaging and immersive gaming experience.

Our newest games — ‘Kong of the Jungle’, ‘Fish Day’ and ‘Cossacks’ — are quickly becoming fan favourites, each

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Collaborating with leading aggregators like BetConstruct and Infingame has enabled us to reach a wider audience

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From our beginnings in Ukraine, where our passion for gaming was ignited, we’ve expanded our reach to Curacao in 2021 and Romania in 2023

with players worldwide and continually adapt to their needs and preferences.

What role do partnerships play in Champion’s strategy?

Partnerships have been pivotal to our growth. Collaborating with leading aggregators like BetConstruct and Infingame has enabled us to reach a wider audience and offer our games on established and trusted platforms. These partnerships have also facilitated our ambitious global expansion. By working with industry leaders, we can leverage their expertise and reach, ensuring our games are accessible to players worldwide. These collaborations are a key component of our strategy, helping us to expand our footprint and deliver top-tier gaming experiences on a global scale.

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Can you tell us more about Champion’s global expansion plans?

We are embarking on an ambitious global expansion, which involves not only entering new markets but also strengthening our presence in existing ones. Our goal is to become a truly global provider of top-tier iGaming experiences, ensuring players worldwide can enjoy what Champion has to offer. Part of this initiative includes building a new marketing department to raise brand awareness and access new markets more effectively.

What was the initial vision behind Champion, and how has the company maintained that vision over the years?

Our journey started with a vision to create captivating and engaging gaming experiences for players. We’ve consistently upheld this promise by focusing on innovation, quality, and player satisfaction. From our beginnings in Ukraine, where our passion for gaming was ignited, we’ve expanded our reach to Curacao in 2021 and Romania in 2023.

This expansion has been a significant milestone, allowing us to tap into new markets and reach a broader audience.

Throughout the years, we’ve always aimed to push the boundaries of what’s possible in iGaming, continually innovating and improving our offerings to meet the evolving needs of our players.

What can we expect from Champion in the future?

The future is incredibly exciting for Champion. We plan to continue innovating and delivering exceptional gaming experiences. Our global expansion will open up new opportunities, and we are committed to maintaining our reputation for quality and player satisfaction. We look forward to what lies ahead and to welcoming more players into the Champion community. Our vision for the future includes continuously improving our games and expanding our portfolio to offer even more diverse and engaging gaming experiences.

How has Champion managed to expand its presence across various regions?

We’ve gained significant traction by understanding and catering to the unique preferences of players in different regions.

Our strategy involves localizing our offerings to suit various markets while maintaining the high standards that define Champion games. This approach has allowed us to build strong connections

We’re thrilled about the journey ahead and are dedicated to ensuring that players around the world feel like they have a seat at the Champion’s table.

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Compact. Capable.

Cost-effective.

Next-generation technology tailored to the needs of the gaming and sports betting markets. Leverage our expertise and support so you can deliver the ultimate customer experience.

Discover more at Quixant.com.

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BREAKING FREE FROM THE FORCED ECOSYSTEM MODEL Pragmatic Solutions CEO ASHLEY LANG advocates a new approach to PAM provision that helps operators maintain technical control of their business without falling behind

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ucceeding in iGaming as an operator has never been more challenging. The competition is fierce and the demands of local regulations, which vary between markets, impose many new operational and technical demands on the operator. What they require from their PAM platform, or indeed their entire technology strategy, has become more complex. Many procurement models, vendors and technologies, which were prevalent in the first two decades of the iGaming industry, are no longer viable or fit for purpose in today’s market.

These challenges are causing many operators to reconsider their original platform technology strategy. The questions that emerge for their leadership teams are: do they have the right technology today to support their business plans for tomorrow?

Or are technical dependencies holding them back? And once they have concluded that a change of platform is required, what is the best option to deliver their short- and longterm business objectives?

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PLATFORM SELECTION: A CRITICAL DECISION

potential to positively impact success while minimising cost and risk.

The Player Account Management (PAM) platform represents the core technological foundation of any online betting and gaming enterprise. It is essential for the administration of player experiences throughout their entire lifecycle, including the management of player accounts, wallets, promotions, risk prevention, and regulatory compliance. Furthermore, all third-party providers of content and services, from games and sportsbook to payments, KYC, business intelligence, regulatory integrations, affiliates, CRM, bonus and promotions, integrate with and intercommunicate via the PAM platform.

With this foundation, operators can then consider other key factors, positioning technology as the enabler of commercial business objectives rather than the end goal itself.

BUILD, BUY OR LICENSE When evaluating options for their core platform, operators historically focused on a binary approach. The question they pose is whether to own it (by building it in-house or buying it) or license it from a third-party provider.

This understanding is based on the original conditions of the iGaming industry, where platform technology followed what we call a forced ecosystem model.

Given its pivotal role in the operational success of an online gaming business, selecting the appropriate PAM platform strategy is among the most critical decisions a leadership team will face.

Initially, a PAM platform – either inhouse or offered by third-party providers – was part of a monolithic technology stack, with services and applications interconnected through opaque or poorly segregated protocols. This resulted in severe technological limitations when operators, adapting to market changes, required integration of a mix of the best multi-vendor and proprietary products and technologies. These integrations were either difficult, not supported, or against the commercial interests of the platform vendor (and therefore a point of frustration).

If not chosen correctly, the PAM platform can profoundly impact the ability to execute business objectives and may prevent the operator from pulling ahead of the competition. It can define the destiny of the business for years to come and separate the winners from the losers.

For this evaluation, we recommend a thorough, 360-degree approach. The operator’s business objectives should serve as the compass, guiding all secondary implementation decisions based on their

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The forced ecosystem model and the alternative of platform development in-house severely fall short of an operator’s needs

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It is worth noting that many operators with proprietary PAM platforms run into serious technological bottlenecks

The forced ecosystem model PAM platform vendors applied contractual restrictions and limitations on any such integrations, as the vendor’s main goal was to force their own products onto the operator.

Contractual limitations with respect to integration of the best multi-vendor products, in addition to technical limitations with respect to any integrations, effectively force the operator to, predominantly or exclusively, use products and services offered by the PAM platform vendor (which were often not independently market-leading).

Past difficulties with thirdparty PAM providers can push operators towards initiating in-house platform development projects, leading to the adoption of a buy/build approach, where basic PAM platform source code is acquired (or internally produced) and then constantly developed upon by in-house technology teams.

While the reasons for this choice are understandable, it is worth noting that many operators with proprietary PAM platforms run into serious technological bottlenecks. Their speed of new customer experience-enhancing development is very low (due to limited development capacity being deployed to the production of commodity services necessitated by regulation or basic operational needs), causing them to fall behind competitors and limiting or heavily restricting their continued growth.

THE CPU MODEL IN PLATFORM TECHNOLOGY In today’s dynamic environment, both the forced ecosystem model

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and the alternative of platform development in-house severely fall short of an operator’s needs.

Operators require more control and flexibility to integrate a mix of the best multi-vendor and proprietary technologies into a cohesive stack.

That is why we argue operators must evaluate a third alternative; a hybrid approach, that we refer to as the CPU model.

As designed by Pragmatic Solutions, a modern PAM platform can be metaphorically likened to a Central Processing Unit (CPU) in computing. Under this analogy, the platform acts as the core of the operator’s online gambling technology, handling essential but uniform services – such as bet processing, account management, and compliance functions that are crucial yet standard across the industry. This central role is comparable to a CPU within a computer that coordinates and executes instructions with reliability and efficiency.

This denotes a PAM platform that, like a CPU, allows for the integration of varied components – be it thirdparty services or proprietary technology – without restrictions and limitations. Such flexibility is indispensable for tailoring offerings, swiftly incorporating superior third-party products, enhancing the user experience, and establishing a competitive edge in the market.

This model enables the creation of a unique technology stack suited to operators’ immediate and future needs, empowering them with superior adaptability and customisation possibilities.

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THE DOUBLE EDGED SW O R D OF CRYPTO Words by JOE STREETER

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500 Casino Chief Operating Officer CHRISTOFFER ANDERSON explains why mixing crypto with regulated markets is like mixing oil and water

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ew levels of gamification are enticing a new generation of players to the world of crypto casinos.

Christoffer Anderson, the Chief Operating Officer of 500 Casino, paints a positive outlook for the future of the sector and underlines the impact that digital currencies can have on the future of iGaming engagement.

With crypto casinos being relatively new to the igaming sector, what gamification tools do you have in place to assist firsttime customers?

Since our origin is slightly different from the old school casinos, we tend to act like a Swiss army knife. We try to cover all bases with both gamification functions, like level-up rewards, and tournaments on certain games, including our Royales that are running on a weekly and/or monthly basis, which covers wagering on all products.

When it comes to our offerings, we do offer everything from case openings and in-house games, to more mainstream products such as sports and casino, as well as live games and slots.

Can you lay out some of the key benefits to the player journey when it comes to utilising crypto?

I believe crypto has mainly upsides but obviously comes with some downsides, which can be compared to old traditional cash.

The good part with crypto is that both as a merchant/ casino and as a client/player you have full transparency on every transaction, everything is kept in the open when it comes to all the details, such as: Which wallet is sending the money and receiving the money, and also if the money has been received/ sent. It gives the player both confidence, transparency and also some anonymity.

I think that Curaçao will gain a better reputation because of these changes and several bad apples will not continue to operate under a Curaçao licence

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There isn’t anyone that can tell where a player’s cash has come from

The anonymity is obviously a double-edged sword, just as with cash. There isn’t anyone that can tell where a player’s cash has come from, neither can you 100 per cent do that with crypto, even though the network provides you with a way to trace the money from wallet to wallet.

With that said, we have sophisticated systems to make sure that we can screen transactions in order to catch bad actors.

One of your key ambassadors is charismatic UFC middleweight Paulo Costa, what does it mean to be associated with such an enigmatic figure?

I believe he is a very fitting ambassador. He is bold, loud and very active on social media, just like us. Another upside is obviously him being from South America, which is a market we want to increase our presence in.

Can you tell us more about your focus on esports betting and why this garners so much engagement for 500 Casino?

We do come from an esports gambling background, but when that part got regulated and more opportunities arose, 500 was converted into a casino.

We have since then added case openings and also sportsbetting to our site. But with that said, we do still have alot of engagement in the esports scene as whole. One example is obviously our Counter-Strike team, which goes under the name “500”.

It has been relatively smooth sailing for us. What Curaçao is asking for in their “2.0” licence is something we have already been applying for a long time. At the end of the day, it is still a process to renew and fill in a load of paperwork.

I believe it is good to keep the regulations on a decent level, but without restricting players or operators. I think that Curaçao will gain a better reputation because of these changes, and several bad apples will not continue to operate under a Curaçao licence, but with that said, there are always new licences coming up where these less abiding operators will find their safe haven.

Would you be open to working with regulators in other markets to assist them with future crypto casino legislation?

It is very hard to say right now. As it is today, mixing crypto with heavily restricted markets where deposits, turnover, bets per session, how long a spin must take, if bonus buys are okay or not. That is like mixing oil and water.

What plans does 500 Casino have in place for the remainder of 2024 and beyond?

Growth. We have been growing a significant amount over the last two years, going from a relatively small casino (in crypto measurements), to actually being considered as a contender to the bigger boys.

They have been playing under our name since late 2022. We can also tell how big our presence is in that area based on the kind of customers we have.

Another part would be to work with the product itself, everything from making the site easier to navigate through, adding userfriendly features and also becoming more of a mainstream operator than just a fullyfledged crypto casino.

How have recent developments in the Curaçao framework been for you? Have you had to adapt at all and do you believe they will help remove illicit actors from the region?

We do know that there are a lot of players out there, who prefer high-quality Curaçao casinos, but not every single player may be keen to use crypto for that sake.

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Feature: Bulgaria bans advertising Thought leadership: Rani Wynn of LiveScore

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¡VIVA LA REVOLUCIÓN! A storm is brewing for affiliates that could completely upend the way that the iGaming industry attracts and acquires new players, writes Affiliate Leaders Editor CHARLIE HORNER

And, of course, iGaming affiliates have been hit just as hard. SEO specialists have been working flat out over the last few months to decipher the updated algorithm and improve traffic numbers once more.

Ivana Flynn, SEO Director at Medier Agency, notes that to a certain extent, the SEO industry has brought this upon itself.

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hroughout 2024, Google has rolled out a series of SEO updates which have changed the landscape for digital publishers across all industries, from iGaming to mainstream media outlets.

It began in March, when Google’s core update aimed to reduce the amount of spam content that ranked on the search engine results page. At the time, Google explained: “This update involves refining some of our core ranking systems to help us better understand if webpages are unhelpful, have a poor user experience or feel like they were created for search engines instead of people.” The big tech firm also boasted it would reduce the amount of unhelpful content by up to 40 per cent.

This update, one of the most significant changes Google has made to its algorithm, resulted in the deranking of thousands of websites. Within the first six weeks of the update, the BBC News website had taken a 37 per cent hit to its visibility on Google, while the Daily Mail’s website - one of the world’s most popular news platforms - was down 14 per cent.

Writing in the inaugural issue of Affiliate Leaders, Flynn explains: “To put it bluntly, SEOs have overdone it in recent times. As a result, Google announced that AI content is acceptable, within certain parameters.”

Despite the chaos that resulted from the March update, Google rolled out another update in May. This time, the big tech giant aimed to reduce parasite SEO content and promote truly informative and engaging content.

While on the surface it seems like a good initiative, the problem with this update is that many affiliates, not just in iGaming, lean on parasite SEO content because simply put it has worked for so long. Packing out an article with affiliate links and other SEO wizardry to outrank other pieces of content has for so long been an effective tool to increase traffic, thereby also increasing revenue from FTDs. As Flynn recalls: “In my research, I saw a parasite SEO post in an online magazine outranking Casino.org, a 27 yearold website that has provided quality content for years, for an online casino operator.”

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There are other, smaller updates that have been rolled out throughout the year, which have primarily focused on the role of AI in content. Google has, to some extent, declared war on AI content in favour of promoting content that adheres to the EEAT principles: Experience, Expert, Authority, Trustworthiness.

As a result, affiliates who were exploring the use of AI in content are now rolling back on this approach and looking at how else it can leverage AI for efficiencies, whether that is in the sub-editing process, or for back office tasks.

In the meantime, however, it is clear that SEO Directors and C-Level executives at affiliate companies have their hands full dealing with Google’s groundbreaking updates.

Whether or not Google can achieve its utopia of filling its results page with helpful, informative and EEAT-compliant content remains to be seen, but one thing is certain: those who stick to the status quo are going to be left behind.

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INNOVATION OR STAGNATION? Bulgaria’s gambling regulator ALEXANDER POPOV believes the regulated gambling sector can hold off the black market despite a new advertising ban

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Words by VIKTOR KAYED

Alexander Popov, Director of Gambling Supervision, Bulgaria

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ambling in Europe today is light years ahead of where it was a decade or two ago, thanks to the never-ending march of regulatory change.

All stakeholders within the gambling sector are contributing to national policies with one common goal - the protection of customers and the broader public.

Still, European regulators need to tread a fine line as they stride towards safety. The threat of overregulation, which we’ve seen more frequently over the last few years, is never more clearly illustrated than in policies around gambling advertising. (see The Hot Topic, p.88) One such case comes from Bulgaria, where recent developments saw the introduction of the most significant policy changes to the country’s Gambling Act since the early 2010s.

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The local gambling sector has generally enjoyed steady growth in terms of supply and demand, with a successful rebound in the years following the COVID-19 pandemic.

There has been a significant growth in the gambling sector, and hence in its advertising.

This led to oversaturation of the market

According to local media, the total value of winnings paid out to customers was around BGN2.34bn ($1.29bn) in 2022 - only counting individual wins over BGN5000 ($2,768). That number rose over 150 per cent to almost BGN6bn ($3.32bn) in 2023.

However, in June, Bulgarian Minister of Energy Temenuzhka Petkova introduced new legislation that might slow this growth. The draft was first brought forward at the end of last year with the aim of creating a more consolidated market approach to protect vulnerable consumers.

However, the initial attempt did not find any support from policymakers, forcing the draft back to the drawing board to be revised and reintroduced again when the Parliament returned from recess this April.

In its second iteration, the draft now seemed to have taken note from other examples from across Europe, most notably in its intention to ban gambling advertisements across TV, radio, print, social media and - although partially outdoor promotions too.

The problem for operators is the potential loss of earnings, which we have seen in other jurisdictions that have implemented such measures.

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FOLLOWING THE ITALIAN MODEL

operators, but to every single citizen.

“The measures foreseen by the legislator aim at limiting the scope of this type of advertisement, so that it is aimed mainly at users of gambling services.”

Italy’s so-called ‘Dignity Decree’ was enforced in January 2019. Similar to the latest developments in Bulgaria, it introduced a blanket ban on all forms of gambling advertisements.

BLOCKING THE BLACK MARKET Although the problem of potentially losing customers to the black market remains, Popov assures us that the regulator is continuing to closely monitor the space, and that it has taken all necessary precautions to avoid a boost to the black market. It has been particularly vigilant in updating a black list of unregulated operators and instructing internet service providers to block citizens’ access to them.

In the two months that followed, there was a consecutive decline recorded in revenues, with March ending on a 3.7 per cent year-onyear loss for gambling operators.

Just last year, the European Gaming and Betting Association (EGBA) requested a review of the Italian ad ban after reports of €25bn being lost to the black market each year. The Association’s Secretary General Maarten Haijer said the ban was failing by depriving consumers information about how to find legal and regulated operators.

One of the new measures includes a planned software product purchase, which will help with identifying unlicensed websites that are attracting visitors from within Bulgaria.

As it is, the regulator blocks around 250 illegal websites each month.

Bulgaria’s gambling regulator - the National Revenue Agency (NRA) - seems to share Haijer’s sentiment, but only partially.

“Ban lists from partner countries are also received. They are checked for violations of national legislation and the links included in them are blocked,” Popov continues.

The Agency’s Director of Gambling Supervision Alexander Popov tells SBC Leaders: “The right of licensed gambling operators to promote their activities and send official commercial messages without worrying about subsequent sanctions is one of the main advantages over their counterparts in the grey sector.

“In addition, a communication channel was also established with Google and Apple regarding the blocking of access to applications related to unlicensed operators.”

“In this regard, a correlation between the reduction of advertisements and customer awareness can be considered.”

With the revisions in the Gambling Act entering the National Gazette earlier in May, as of yet it is too early to properly assess the level of impact they will have on the sector in Bulgaria. Policymakers can only hope that the dice rolls in the licensed market’s favour.

But his forecasts for Bulgaria remain optimistic, with the regulator expecting the market to become more targeted, and thus better optimised to work with its established player base - in spite of a decline in advertising.

However, should things turn south, Popov says the regulator and the Ministry of Finance – to which it reports – remain ready to discuss the deployment of a different strategy if it becomes necessary.

“As far as the Bulgarian market is concerned, in the last few years there has been a significant growth in the gambling sector, and hence in its advertising,” Popov says. “This led to oversaturation of the market, while at the same time there was public dissatisfaction with the receipt of many advertising messages with similar content, which were not addressed to the persons using the services of the gambling

“We assume that after analysing the consequences of the latest amendments, the colleagues from the Ministry of Finance will consider whether to initiate a procedure for further refinement of the adopted norms.”

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A GOOD INFLUENCE LiveScore Group General Counsel RANI WYNN asks whether marketing regulation is stifling safer gambling practice

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s each new month seems to bring yet another confusing layer of interpretation of marketing regulations across Europe, operators constantly grapple with determining what talent we can use safely in our marketing (not many, if any!) and adjusting to frequently shifting goalposts across multiple locations.

I have been lucky enough to take part in two incredibly interesting panels this year that broadly canvassed the topic. The first one in January discussed how we can best protect our Gen-Z players as they become a key customer cohort, and the second one in May discussed how operators should focus more on the safer gambling conversation in brand-led marketing.

At both panels, the overwhelming view from other experts was thus: “Utilise influencers and personalities to speak to safer gambling and responsible gambling topics to make them more relatable, attractive, digestible and customary particularly for younger players or new joiners.”

Well, with all due respect to my esteemed fellow panellists, we are prevented from successfully executing such a brand vision in virtually all jurisdictions in which we operate.

Let’s start on home turf in the UK. There has been a flurry of recent decisions interpreting the “strong appeal” test when it comes to using celebrities in betting marketing – the most controversial of which has been dubbed “GaryGate” (ok fine, maybe it was just me) whereby the Advertising Standards Authority (ASA) upheld a complaint against Sky Bet for its use of Gary Neville to promote the YouTube production, The Overlap.

It had been widely assumed up until that point that legacy players who were at the height of their fame decades prior and whose audience data skewed to a significantly older demographic were safe to use - not so. It turns out that the Authority considers Neville’s sheer popularity to mean that although his overall audience is not significantly young, the significant number of youngsters that follow him is too significant. It was last reported that Sky Bet was considering an independent review of the decision (and I’d love to know where this is up to).

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All operators felt increasingly concerned about our talent selection choices. Little did we know, things were going to get even more confusing

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It’s clear that regulators may be missing a trick in banning popular celebrities and influencers from using their marketing impact for positive change

Following GaryGate, where one of the previously assumed untouchable celebrities was now considered persona non grata, all operators felt increasingly concerned about our talent selection choices. Little did we know, things were going to get even more confusing.

In March this year, the ASA upheld another complaint, this time against LeoVegas’s Bet UK, for featuring former footballer Adedeyo Akinfenwa for much the same reasons found against Neville and Sky Bet. Although Akinfenwa had been used in various Bet UK creatives, the specific ad forming the basis for the negative ASA decision was one marketing the safer gambling tools available on the site.

So now it’s become a precedent that we can’t use popular celebrities to market our products, even when very careful research goes into selecting those with a largely older fan base that arguably does not overly appeal to children or young persons.

But, we also can’t use those popular celebrities to speak about responsible, sustainable, and healthy gambling features either. It feels to me like a very shortsighted leveraging of the “strong appeal” test to kill important conversations about safe play.

We know from research that nearly 75 per cent of Gen-Z consumers actively follow influencer content and are more likely than other generations to

rely on influencers to discover products, impacting their preferences and expenditure decisions.

It is obvious, therefore, that a lot of care should be taken when using influencers popular with younger audiences to market certain regulated activities, particularly given that young adults’ brains are not fully developed until around age 25.

The issue, however, is that by applying very rigid restrictions to betting operators using this type of talent in content, you are simultaneously ensuring that a safer gambling discussion in respect of healthy play (with celebrity endorsement) cannot be engaged with and cannot be targeted at those who arguably need it most.

The UK is not isolated in its strict approach to celebrity talent in betting marketing and it is unfortunate that in my review I could find no carve outs or exceptions to allow celebrities to speak to responsible/safer gambling messaging in operators’ marketing elsewhere.

In Ireland, for example, operators are prevented from using talent under the age of 25 in marketing, and neither should they use any “figures who would be regarded as heroes or heroines”. Similarly opaque language is used in the Netherlands, where well-known “role models” also cannot be used in gambling marketing. In each case, there is no concession

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for usage of such persons in the context of safer gambling/ compliance education (or influencing) – which we know is inevitably categorised as marketing as soon as there is any brand association with the message.

The only jurisdiction familiar to our group in which we could use popular influencers to promote safer gambling branded content for those over 18 is Nigeria. But of course, in a time when efficiencies are paramount and streamlining costs across territories is prioritised, regional deals and onemarket ponies are increasingly difficult to justify.

To summarise, influencers resonate the most with Gen-Z players compared with any other customer cohort on our sites. Not only are the rules about which celebrities we can permissibly use in general marketing becoming so confusing and strict that it’s almost not worth running the creative exercise or budget risk, but it’s also clear that regulators may be missing a trick in banning popular celebrities and influencers from using their marketing impact for positive change, exclusively in the promotion of healthy and safe play on sites.

Besides the obvious brand equity attractive to the industry, the possibility of making safer gambling more sustainable, respected, and understood by vulnerable groups (and the wider player base at large) is being lost.

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EXPLORING THE LINKS BETWEEN NEURODIVERSITY AND GAMBLING HARM There is not a lot of research surrounding links between neurodiversity and problem gambling, but there is little doubt among those with lived experience of gambling harm that neurodiverse people are uniquely vulnerable to gambling addiction, writes Player Protection Hub Editor STEVE HOARE

dysphoria, a feeling of severe emotional pain because of a failure or a feeling of being rejected.

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egardless of whether there is research on this or not, there is definitely a correlation between neurodivergence and gambling addiction,” says Chris Gilham, a trustee at Gambling Harm UK, to an audience of experts in neurodiversity at a webinar organised by the Gambling Lived Experience Network (GLEN).

Gilham lived with a crippling gambling addiction from the age of 30 to 36-years-old.

The gambling compounded a dependency on alcohol that sent him to rock bottom before he sought help.

As someone who was never interested in gambling or exposed to it before he was 30, Gilham was baffled as to why he suddenly developed a gambling problem.

It took him three years of recovery, hard work and long dark nights before he discovered that he had attention deficit hyperactivity disorder (ADHD) and a related discovery of rejection sensitive

Research papers conclude that between 25 and 30 per cent of treatment-seeking problem gamblers report ADHD. This seems like a huge percentage but one must be wary of such statistics.

It might also be the case that between 25 and 30 per cent of people seeking any mental health treatment report ADHD. And it might be the case that 25-30 per cent of all gamblers report ADHD.

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My head became quieter. I found something I could focus on

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Those with neurodiverse conditions such as ADHD or autism can find it difficult “living in a world that doesn’t cater to the likes of me”, as Gilham put it.

This can mean a retreat from the real world to online to find solace.

“My head became quieter,” explains Gilham of his gambling addiction. “I found something I could focus on.”

While there have been a few research papers on the links

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between ADHD and problem gambling, University of Bristol Research Fellow Dr Amy Sweet says that she would like to see more research done into the links between autism or dyslexia and problem gambling.

“There are a lot of point-of-time studies,” says Sweet. “There has not been a lot of research done over longer periods of time.”

Addiction specialist Dr Alan Curley of University of West of Scotland agrees, adding that he would like to see longitudinal studies into whether children’s exposure to online video games leads to gambling.

In the meantime, training for safer gambling teams and customer service staff could raise awareness of neurodiverse conditions and their links to gambling harm. Care needs to be taken with all problem gambling communications, none more so than in this most sensitive of areas.

Scan here for more from Player Protection Hub

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THE PROBLEM WITH ADVERTISING SBC Leaders Editor Steve Hoare speaks to lobbyists, regulators, operators, and academics to try and find some sense in the ongoing furore around advertising

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operators look to win market share.

“When fantasy sports got really competitive (prior to the repeal of PASPA in 2018) there was the same hue and cry about fantasy sports advertising,” continues Lanza. “Eventually, they just seemed to lower the amount.”

dvertising bans have been enacted in European countries such as Belgium, Germany, the Netherlands, Poland, Spain, and Italy. The UK is expected to follow suit.

Ecuador has enacted a complete ban, while Colombia and Peru have introduced their own restrictions. Ontario has stopped short of a total ban but campaigners continue to lobby for one. Massachusetts regulators cited constitutional freedom of speech concerns for spurning ad restrictions but seem to believe “something needs to be done”. But what needs to be done? To ban or not to ban, that is the question.

Indeed, the American Gaming Association commissioned data specialists Nielsen to monitor the amount of sports betting advertising in the US and found that TV sports betting ads fell by 23 per cent from 2022 to 2023.

THE PROBLEM WITH THE RESEARCH In January this year, the University of Bristol released a study revealing “the vast proliferation” of gambling marketing on Canada’s TV screens and social media during National Hockey League and National Basketball Association games.

THE PROBLEM WITH NEW MARKETS “When iGaming and online sports betting were first launched we were inundated with thousands of adverts,” says Liz Lanza, the Director of the Office of Compulsive and Problem Gambling at the Pennsylvania Gaming Control Board.

The report included a line about the risks of “the normalisation of gambling”, which immediately crept into discussions about the effects of gambling advertising.

The same can be said of every US state to regulate the new activities. Indeed, the same pattern has been seen in recent years in Europe with new regulated regimes in countries such as Germany, the Netherlands and Spain, and in Ontario, Canada.

“That kind of language is unfortunate,” says Canadian Gaming Association President and CEO Paul Burns, “because we are trying to move to a point where we say that gambling is here, it’s regulated and it’s okay.

What the industry wants is what everybody wants - to have customers who have a healthy relationship with the products. To understand that this is entertainment: it’s not a way to make money or pay the rent.”

The introduction of online gaming regulation in any jurisdiction has meant a new beginning for operators in these markets. And every new beginning has been accompanied by a marketing blitz as

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THE HOT TOPIC

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Most would argue that the researchers’ language is not just unfortunate but dangerous. This is the kind of language that leads to the stigmatisation of gambling and stops those who need help from seeking help.

We want solutions that are evidence-based, not junk research done by people with agendas

Professor Kahlil Philander of Washington State University’s business school is conducting research into gambling advertising across the globe.

“In Australia and the UK, for example, what you’re seeing is a reflection of the population base,” explains Philander, “but I also think it is a reflection of the researchers conducting gambling studies – and there’s a lot of merit to what they do. But I think they are looking at the problem through a public health lens. Certainly, disciplinary wise, if you had an economist versus a public health researcher looking at the same data, they may come to different conclusions.”

Paul Burn s, C

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Despite the lack of evidence, a recent poll in Canada found that 59 per cent of Canadians supported a total ban on advertising. Again, there were issues with the methodology around this survey but it is an indication of public feeling, even if flawed.

Burns is more blunt: “We want solutions that are evidence-based, not junk research done by people with agendas.”

“People think that if advertising goes away, the problems go away,” continues Burns.

“That’s pretty naive and short-sighted.”

Philander points to another issue: “A lot of the studies that we’ve seen are very correlational and ask for people to recall if they’ve seen an ad; and then that’s correlated to their behaviour, which we didn’t really think it a very effective methodology in trying to get at the real health issues from exposure.”

“One thing that seems evident is that advertising can be very annoying,” continues Philander, “and that’s kind of a broad statement not limited to gambling. But in North America, sports betting advertising is all very new. So unlike the advertising for some prescription drug, which has a bit of a wallpaper effect and you don’t really notice it as much unless you’re in that target demographic, everybody notices the gambling ads.”

He believes we need a standardised measure of exposure, and more investment in longitudinal research around the impacts of exposure – looking at people at multiple points over a longer period of time.

Industry organisations are prone to shouting “black market” at every rule change but when it comes to advertising bans - it’s a fair shout.

THE PROBLEM WITH AD BANS Burns points out that banning advertising is unlikely to eliminate problem gambling.

It could also hinder attempts to promote a healthy relationship with gaming.

After Belgium introduced its advertising ban in July 2023, the number of illegal operators targeting Belgian citizens increased by 340 per cent, according to figures from Yield Sec. The net result is that the legal market only reaps 27 per cent of overall Belgian gross gaming revenue, with the rest going to the black market.

“Even the UK’s White Paper stopped at putting further advertising restrictions in,” says Burns. “British lawmakers simply did not have the evidence that any advertising ban had worked.”

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SBC LEADERS ISSUE 32 tain ycka, En Martin L

We need some advertising restrictions

“

“Sadly, people don’t give a monkey’s whether they bet with a fully licensed operator or not, as long as they get paid their winnings,” says Entain’s SVP American Regulatory Affairs and Responsible Gambling Martin Lycka. “The licensed operator needs to be able to showcase their legally regulated product.”

Another operator points out that even at licensed operators, marketing executives will immediately ask their colleagues in the legal department if there is a way to get around bans or restrictions.

In 2019, after a public outcry over the amount of gambling advertising at the 2018 World Cup, the UK industry introduced a voluntary whistle-to-whistle ban on advertising around sports matches. This has led to a 97 per cent drop in betting commercials seen by children before the 9pm watershed. The English football leagues have continued the momentum with a new code of their own (see page 17).

“Any industry needs to figure out how it is going to conduct itself,” says Wes Himes of the Betting & Gaming Council. “A lot of codes are not about ‘oh my god, what’s coming?’, it’s about finding the right balance between the right to advertise and not appealing to under-18s.”

THE PROACTIVE SOLUTION When it comes to advertising, the UK industry has been way ahead of the game. The Industry Code for Socially Responsible Advertising was first introduced way back in 2007. It has been refined and improved, culminating in a seventh edition in 2024, which includes a new requirement for most operators to direct 20 per cent of all broadcast and digital advertising to safer gambling messaging.

Ontario’s regulations contain a similar requirement.

The Industry Code is now referenced in the Gambling Commission’s Licence Codes & Conditions of Practice. Hence, a proactive approach staves off more draconian legislation.

“Neither extreme is good. We need some restrictions,” concludes Lycka, “but a blanket ban, like in Italy? It’s counter-productive.”

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SBC LEADERS ISSUE 32

PAYMENTS POWERED BY

ON THE FOLLOWING PAGES 96 Interview: PressEnter Group’s Sean Spiteri 101 Feature: The frightening reality of AI fraud

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PAYMENTS

HOPE OR HYPE? Payment Expert Editor TED ORME-CLAYE looks at the potential of open banking and AI to open up new possibilities for the KYC process

“So far, I have not seen any good product that can provide a highconverting KYC solution based solely on open banking-sourced data,” says Christian Reinheimer, Group Director of Payments Product and Technology at LeoVegas Group.

T

he gaming and financial sectors, while facing similar challenges and opportunities, rarely move in lockstep. While fintech has largely driven the evolution of the finance sector, the gaming sector has sometimes been slow to adopt cutting edge technology. For proof, one just needs to study the uptake of open banking and artificial intelligence solutions.

The opportunities open banking presents have not been lost on the gaming sector, but operators are not using it as much as some would like to see.

Open banking can enable customers to make quicker payments, potentially providing a competitive advantage to those who offer it over those who don’t.

By using it, operators will widen their payment methods and appeal to more customers.

However, industry insiders inform Payment Expert that KYC solutions based solely on open banking have yet to be developed. While products might make some use of open banking, open sources of data must also be relied on for these solutions to do a convincing job.

It is important to note, however, that operators are having to wait for regulatory changes to happen first, and these are on the horizon in some major markets. The UK has been pushing forward with open banking adoption from the very beginning. Despite a recent change in government, its leadership goals in this area seem unaltered.

Outside of Europe, Australia and the US are often cited as catching up with open banking. The betting sector will need to keep up to date with the regulatory and technological changes in this area if it wishes to leverage this financial innovation for the better.

Turning to AI, the technology has caught the world by storm over the past year, catching everyone’s attention from social media users to politicians, from bankers to betting and gaming operators.

The benefits of AI for the gaming industry are hardly an undiscussed or unfamiliar topic.

Use cases include marketing and design, but tasks more specific to payments and compliance include anti-money laundering, fraud prevention, and detecting signs of problem gambling among operators’ vast customer bases.

“AI and machine learning are critical innovations for gambling compliance,” explains BetMGM

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Vice President - Product Liron Warhaftig. “They can detect unusual patterns and behaviours indicative of fraud or money laundering much faster than traditional methods.”

Similar to open banking, AI is subject to a lot of regulatory and governmental attention, with responsibility a core area of focus. It’s no coincidence that governments in the US and UK have set up AI Safety Institutes.

The betting industry must prove that it can deploy AI responsibly, and there may be no better use case for this than KYC and problem gambling prevention.

The data-sharing capabilities of open banking also have potential in this regard, and if the two can be bridged, operators may unlock a new era of innovation in player protection.

To achieve this, the ability to move in lockstep with developing regulations and innovation in both the tech and fintech fields will be an absolute necessity for operators. As gaming continues to grow and enter new markets, technology is providing a foundation on which a sustainable industry can be built.

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PAYMENTS

SBC LEADERS ISSUE 32

PLAYING THE PAYMENTS GAME PressEnter Group Head of Payments SEAN SPITERI looks back over his career and has some words of advice for aspiring payments professionals Words by KIERAN O’CONNOR

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W

hen placing a bet, whether it’s on slots, roulette, or who will become the next England manager, a lot is going on in the background that customers don’t see. Hopefully, if everything works correctly, a deposit can be made and a bet can be placed.

This seamless experience is made possible by the expertise of industry leaders like Sean Spiteri, PressEnter Group’s Head of Payments.

With a career spanning pivotal roles in the payments side of the gaming industry, Spiteri has become a key figure in managing complex financial transactions and relationships with payment service providers (PSPs).

Having managed a diverse array of payment solutions at PressEnter, Spiteri’s career journey offers valuable insights for aspiring professionals. From ensuring approval ratios to overseeing configurations during onboarding processes, he handles what he calls “the full shebang” of payment solutions, covering both B2C and B2B perspectives.

EMBRACING TECHNOLOGICAL CHANGE The payments landscape is forever changing and always at breakneck speed, largely driven by technological advancements. In recent years, innovations such as artificial intelligence, open banking and blockchain have made an impact in both gaming and payments.

Spiteri says: “It is absolutely vital for anyone within the payments space to continuously be on the lookout for new solutions, trends and technologies. This all boils down to the speed at which numerous changes happen in this space and how fast-paced an industry it is – especially for anyone working in payments where things can change overnight.”

While many see new technologies as cheat codes, Spiteri points out that they must be used cautiously. Even when these innovations can enhance the industry, they’re not always readily embraced by players.

Take blockchain as an example. There are several benefits this technology offers operators, such as enhanced speed of transactions at cheaper costs - mainly due to blockchain transactions not being dependent on banks, meaning that the costs

of withdrawals and deposits are much lower than with any fiat currency.

However, Spiteri has observed significant hurdles in its adoption. “From my experience on casinos that have a kind of a hybrid setup in terms of having both fiat solutions and crypto solutions in tandem on the cache, he notes. “I’ve never seen conversion specifically for crypto take off.”

Spiteri likens this idea to learning a language, observing an educational gap.

“Let’s say I’m trying to learn Spanish, but every time I speak in Spanish, whoever I’m speaking to, they’re replying in English.

So learning Spanish this way would be incredibly difficult. Whereas if I’m being spoken to back in Spanish, this is forcing me to learn the language and it will incentivise me to learn it.”

EMBRACING REGULATORY CHANGE “As the industry continues to mature, new challenges come along the way, especially with the current trend of markets opting for their own regulations,” says Spiteri. “It’s an area which requires continuous monitoring and studying to ensure you’re ahead of the curve, but as daunting as this may seem at face value, it’s what makes this area so intriguing and exciting.”

These responsibilities require a solid foundation, and with Spiteri’s extensive experience, he provides exactly that.

Entering the gambling industry with a background primarily in risk and fraud within e-commerce, Spiteri viewed this as an opportunity to bring a new perspective to the gaming sector.

He compares his early experiences in the casino industry to a buffet at a party.

By sampling different departments and understanding their functions, he was able to step back, evaluate what he enjoyed most, and “make it his own”.

He adds: “I quickly realised that the best way to take on this approach was to work with a startup, as in most cases working in startups, you need to wear a number of different hats at different times to make ends meet.

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SBC LEADERS ISSUE 32

“

Markets opting for their own regulations requires continuous monitoring and studying to ensure you’re ahead of the curve

“This provides an incredible opportunity for any rookie to not only understand the different elements of the business but also get hands-on experience in each area.”

Utilising this approach and taking on a range of diverse opportunities presented to him, he was able to enter the payments product world. It wasn’t long after entering this sector that Spiteri realised he was “hooked”.

This was due to it leveraging his own unique interests in negotiation, problem-solving and pattern recognition, which he says have become valuable skills sets in his tool belt.

Pushing boundaries has also been crucial to success in payments, he adds.

Spiteri has explored several B2C and B2B roles, strategically putting himself in a unique position where he has experienced both sides of the coin and how each vertical operates.

companies prior to my current role of Head of Payment Solutions at PressEnter,” he says.

So looking back at this experienced yet still early career, what would be the best advice he could share?

“My advice to anyone new coming into the industry is to allow yourself to be as open-minded as possible to the endless opportunities that the industry provides, as this is – in my opinion – the industry’s greatest asset.

“Allow yourself to experience different areas of the business and see what tickles your fancy, and more importantly, why.

Knowing your ‘why’, plays a crucial role as you may initially be biassed in a particular direction ahead of fully understanding it.

“Give yourself time to learn and prioritise horizontal expansion ahead of vertical growth in the initial portion of your career.

This will yield dividends in the long run and remind yourself that this is a marathon, not a sprint. So play the long game. It’s worth it.”

“This has played a vital role in me climbing up the proverbial corporate ladder as the Head of Payments position at a number of

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PAYMENTS

THE LOOMING THREAT OF AI FRAUD Have you ever been amazed yet terrified about artificial intelligence’s ability to imitate another human’s voice or face? Your worst fears could be realised, with AI opening up a whole new fraud risk that has the financial services sector scrambling for a solution, writes Payment Expert senior reporter CALLUM WILLIAMS

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PAYMENTS

SBC LEADERS ISSUE 32 Alix Melchy, VP of AI, Jumio

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A California court ultimately dropped the case last May as it was deemed to contain “unnecessary and distracting allegations”, but Angel Maldonado, CEO and Founder of privacy enhancing commerce platform, says such scrutiny is no surprise.

t can not be understated just how quickly generative AI (Gen AI) has seeped into a vast amount of industries and disrupted the very fabric of its futures; from music to film, sports and in particular, the financial sector.

While AI isn’t new to finance, having been largely used for automated purposes such as customer support and accelerated payments processes, its Gen AI offspring has brought about whole new capabilities and risks.

“Whilst AI is an incredible power for innovation, we must harness it in a way that is ethical and human-first,” says Maldonado. “No one was asked if they were happy for OpenAI to use and collect this data. The fact that this information is online does not mean it’s ethical to collect and use without consent.”

OpenAI’s ChatGPT, the fastest-growing app in history, has proved to be a revolutionary tool for everyday uses, whether that be for work or recreation, there is no denying the influence it has had already.

He continues: “Chatbots have the capability to dig into and play with all available information about any of the 4.9 billion people using the internet. They may very well be violating consumers’ privacy, right under their noses.”

Despite its almost limitless potential, ChatGPT has its detractors. Last year, California law firm Clarkson lodged a lawsuit against OpenAI, accusing the tech company of wrongfully obtaining millions upon millions of unregistered personal details.

This proliferation of Gen AI resulted in world leaders congregating in London for the inaugural AI Safety Summit in November last year to discuss best

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practices on responsible AI and regulation talks surrounding personal data falling into the wrong hands.

Following the Summit, the UK, US, China, Japan and many more signed the Bletchley Pact to promote further cooperation but the emergence of fraudsters tapping into AI has already begun and regulators will have to innovate and think fast in order to combat this looming threat.

CUSTOMER CONCERNS The most prevalent types of AI fraud are deepfakes. This has raised alarm among the general public and hence, the customers of the financial services industry, as well the industry itself.

In May, fraud prevention solution Signicat released alarming research, which revealed that most fraud decision-makers agree that AI is a major driver of identity fraud (73 per cent) and that AI will enable almost all identity fraud in the future (74 per cent).

Jumio VP of AI Alix Melchy attributes the rise of AI-related fraud to the evolving fraud landscape and the increasing sophistication of these technologies.

“Unlike traditional fraud methods, which often contain telltale signs such as poor grammar or obvious glitches or visual inconsistencies, Gen AI can produce polished, professional-quality content that is much harder to distinguish from

These technological advances are nowhere near effective if collaboration isn’t prioritised

legitimate communications,” explains Melchy. “This makes it easier for fraudsters to deceive their targets, increasing the prevalence and success rate of their schemes.”

Banks and financial services now find themselves in the unenviable position of formulating new methods to combat deepfakes and other AI-related fraud. But the Signicat research delivered a damning verdict, revealing a majority of companies to be unprepared for the explosion of AI fraud. The talent pool and technologies have yet to reach a level that will be sufficient to counter the attack.

This does not bode well for customers, who are becoming increasingly aware of AI fraud and the severity of its potential impact in the coming years.

“Consumers are aware of the rise of sophisticated fraud tactics, such as deepfakes and voice cloning, and their ability to outpace traditional security measures,” says Melchy.

Jumio recently conducted its own research, which found that 72 per cent of consumers worry daily about being fooled by a deepfake, underscoring the growing public concern over these technologies.

“As a result, customers are demanding more robust security measures from their banks and financial service providers,” continues Melchy, “and 75

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per cent are willing to switch providers if they feel their personal information or financial assets are at risk.”

Staying one step ahead While fraudsters are increasingly sophisticated in their use of AI, the same can be said for those using it for risk mitigation and prevention. However, those doing the protecting need to stay ahead of those doing the attacking. And this is a hard race to win.

“AI and machine learning are critical to stay ahead of fraudsters,” says Melchy, “enhancing biometric authentication and liveness detection to help ensure that the person engaging with a financial institution is who they claim to be and that they are physically present.

“These technologies not only enhance security but also streamline the customer experience by accelerating previously arduous authentication processes. By using AI to verify identities in real-time, financial institutions can quickly detect and prevent fraudulent activities before they cause significant harm.”

There is progress. Mastercard released research showing 49 per cent of survey respondents claiming they have integrated AI into their fraud systems, while a resounding 93 per cent stated that they intend to invest in AI defences over the next two-tofive years.

PAYMENTS

SBC LEADERS ISSUE 32 the risks of AI-related fraud is also vital, helping them understand how to protect themselves from phishing schemes, deepfakes, and other scams.

But what about deepfakes? During the Money 20/20 Europe event in June, identity platform Veridas delivered a keynote speech addressing how difficult it is to detect deepfake fraud, and was on hand to display camera detection and audio tools to identify facial and speech recognition.

“Last but not least, staying compliant with evolving regulations and advocating for stronger regulatory frameworks will help create a safer financial ecosystem for consumers and institutions alike.”

“Advanced identity verification is essential, utilising biometric authentication and document verification to ensure only legitimate users access accounts. AI-driven fraud detection is also crucial; by continually evolving AI and machine learning models, you can identify and prevent fraudulent patterns in real-time,” says Melchy.

If you’re worried about the looming AI fraud threat, don’t, because you’re not the only one who shares this feeling.

Knowledge of the technology, combined with the backing of your bank or financial service is essential of one; being able to identify the attack in real-time, and two; mitigating its impact before it can grow further.

“However, these technological advances are nowhere near effective if collaboration isn’t prioritised. When financial institutions, government agencies, ecommerce sites, and cybersecurity firms share insights and best practices, it leads to more effective fraud prevention strategies. Educating customers about

The entire world is bracing itself for a future that co-exists with AI. The only question we should ask ourselves is are we ready to understand the threat without being completely overwhelmed.

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COMMENT

SBC LEADERS ISSUE 32

Final word with

Rasmus Sojmark I

f we have managed to do our job correctly, you will be reading this magazine as a welcome guest of SBC in sunny Lisbon. While our flagship event SBC Summit is being held in a new city this year, the summit is a galaxy away from its previous outing in 2023. I hope you’ll agree.

Taking place over four days from Monday 23 September to Thursday 26 September 2024 at Feira Internacional de Lisboa (FIL), the event will occupy more than 110,000 square metres of exhibition and conference space, and welcome more than 600 exhibitors and 25,000 delegates.

A new, larger home at the Feira Internacional de Lisboa (FIL) brings with it a more streamlined name - SBC Summit which better reflects the fact that this event is a global attraction rather than a show fixed in any particular geography. We are welcoming visitors from all regions across the world: Africa, Asia, Europe, Latin America and North America.

Many of you may know The FIL as home to the Web Summit - one of the most cutting edge tech shows in the world, which annually gathers over 70,000 attendees, transforming the city into an international tech hub.

We already use the same amount of space and venue, and although our attendance targets are perhaps a little more conservative at 25,000, each delegate is a senior decision maker with a budget… and an expense account. So the high-end hotels and restaurants in the city can expect plenty of business from SBC delegates across the week.

There’s also a particular affinity between Portugal and Brazil, which is lining up to be one of the most exciting markets in years. Several European firms already service the Brazilian market from Lisbon because of the shared language and after this year we expect several more to follow suit.

SBC’s ultimate goal of course is to provide the perfect platform to enable people to make meaningful business connections. When it comes to networking with like-minded colleagues across the world, we want to be the ice breaker. We hope you enjoy it.

Because of this all-encompassing audience, we believe the SBC Summit befits the tagline The Greatest Show in Gaming to reflect its industry status as a must-attend show for betting and gaming industry professionals, and that the exhibition and conference has already established itself as the largest digital event in the industry in 2024.

Stay cool, Rasmus Sojmark, Founder & CEO, SBC

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