SBC Leaders Issue 34

SECTION

BARCELONA 2025

I S S U E

3 4

The power of collaboration Gamstop CEO Fiona Palmer and the future of responsible gambling

Black markets focus Regulators, lobbyists, operators and suppliers on the hot topic

Lotteries special Svenska Spel and the Hungary Lottery on challenging conditions

Brand new heavies

LeoVegas CEO Gustaf Hagman and the team behind the internationalisation of BetMGM 1

2025

RIO

FLORIDA

MALTA

TORONTO

LISBON

TBILISI

25–27 February 2025 Riocentro Rio de Janeiro

10–12 June 2025 InterContinental Malta

16–18 September 2025 Feira Internacional de Lisboa Lisbon

May 13–15, 2025 Broward County Convention Center Fort Lauderdale, Florida

June 17–19, 2025 Metro Toronto Convention Centre

15–16 October 2025 Sheraton Grand Tbilisi Metechi Palace Tbilisi

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

EDITOR’S NOTE

Mission improbable Every single regulated operator CEO that we spoke to for this issue brought up the topic of the black market.

Gustaf Hagman of LeoVegas, Zsófia Bánhegyi of the Hungary Lottery, Fredrik Wastenson of Svenska Spel, and Fiona Palmer of Gamstop all had something to say on the subject – and these weren’t even the people we went to for comment on the subject for our black markets Hot Topic feature (p.14).

Since introducing the Hot Topic feature it has been easy choosing what to focus on – last quarter it was advertising, which I’m sure we’ll return to, and this quarter it’s the rise and rise of unlicensed operators.

In part this is a byproduct of the social media echo chamber that amplifies the topics causing most debate in your social circles. However, when it comes to the black market, CEOs are almost obliged to speak out when increased compliance measures are hitting EBITDA so hard.

The attention of regulators is welcome but one suspects it will need the full cooperation of Google for any kind of impact. Google has pretty much managed to put the affiliate sector out of business this year (p.75), maybe it could do the same to the black market?

Instinctively, one feels that it’s almost impossible to police the internet – ask law enforcement officials about crypto. It’s the old whack-a-mole problem. This does not feel dissimilar to the pre-Black Friday period, where entrepreneurs such as Isai Scheinberg and Martin Moshal profited by pushing boundaries before bowing to the inevitable. Or even the rise and rise of DraftKings and FanDuel pre-PASPA. Things go in cycles. Now, the next generation of entrepreneurs are turning to crypto and sweepstakes. Will they be brought into the big white regulated tent ? Possibly. Then, what’s next?

Steve Hoare, Editor, SBC Leaders

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 34

08 LeoVegas

14 Hot Topic

06 People

14 The Hot Topic:

Ian Penrose reflects on a life in and outside gambling; plus leaders on the move

An analysis of the figures, causes and solutions

08 Spotlight: LeoVegas CEO Gustaf Hagman on the transformation of LeoVegas within MGM Resorts

Black markets focus

30 Hungary Lottery LOTTERIES FOCUS

26

Feature: The affordability question

22

Leaders such as Svenska Spel’s Fredrik Wastenson argue for balance

A look back at the Greatest Show in Gaming

30 Interview:

SBC Summit: Lisbon report

98 Comment: Ras Sojmark

The final word

Zsófia Bánhegyi of Szerencsejáték

Hungary Lottery CCO draws on rich heritage as signpost to the future

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Contents SPORTS BETTING

37 Column: Crypto’s prospects for 2025

Ted Menmuir on the next big thing

38 Interview: Werner Becher of Kambi

New CEO reveals his vision for OSB

42 Thought

leadership: Leonid Pertsovskiy of Betby

CEO explains how fast betting will revolutionise esports

46

Interview: Valentina Synenka of Symphony Interactive Symphony CEO says the gaming industry doesn’t get AI - yet

CASINO

51 Column: A new era for France?

Joe Streeter looks forward to the long-awaited legalisation of iGaming

52 Feature: The future of live casino

BetMGM argues for speeding up the live casino experience

56

Editorial: Hub88 introduces HubConnect A new tool to link operators, providers and business vendors in the Hub88 Marketplace

60 Thought Leadership: Team Lynon leans in

A fly on the wall look at how a new management team re-imagined the iGaming experience for their new company

64

Interview: Wiktor Garczyński of SB Software Chief Product Officer at sports betting supplier explains the philosophy and process behind building a new iGaming platform

PAYMENTS

69 Column:

New AML rules

Ted Orme-Claye on the pros and cons of new EU scheme

PLAYER PROTECTION

85

Column: GambleAware highlights split Steve Hoare saw the best and worst of the industry at annual conference

86 Interview: Fiona Palmer of Gamstop

CEO underscores the importance of collaboration

90 Thought Leadership: Monika Naydenova of LiveScore Group

How to avoid alienating customers with affordability checks

94

70 Feature: The

Interview: Mike De Graaff of BetComply

LeoVegas, Kindred and more debate the big changeover

Chief Compliance Officer explains his philosophy of compliance

digital ID game changer

MARKETING

75

Column: A year of living dangerously Charlie Horner on affiliates’ annus horribilis

76 Feature: Marketing

campaigns of the year 2024

Novibet, bet365 and Betsson take to the podium. And the winner is…

80

Interview: Artur Yulbarisov of Alanbase CPO on the evolution of the affiliate and operator dynamic

5

86 Gamstop

PEOPLE

SBC LEADERS ISSUE 34

My Life IN Gambling IAN PENROSE

Playtech and IXUP Director IAN PENROSE talks SBC Leaders through his career and his life outside of work

Sportech, CEO, 2005- 2017 Sportech ran the Football Pools and was in real trouble.

We had a telephone betting company called BetDirect, which we sold to 32Red and then set about revitalising the Pools. We got Alan Hansen on board, who got Kenny Dalglish on board – we also had Les Ferdinand, Tony Cascarino and others. We turned it around and then sold it to private equity for £83m in 2016.

In the meantime, we had bought Scientific Games Racing in 2010, which did about a third of all North American betting and about $12bn in bets around the world. In the end I was left in charge of a UK company with no UK business. Spending seven or eight days every month in the US for eight years – I decided that I’d put my wife and family through enough of me not being around much.

Ice cream van, Ice cream man, 1986 Best job I ever had - an absolute dream job on the beach in Tenby and living in a caravan for the summer.

Playtech, Senior Independent Director, 2018-Present

Chartered accountant, 1986-1992 I worked at Ernst & Young for five years and then spent 18 months working for my Dad, where I met Trevor Hemmings for the first time. Trevor was into housebuilding and owned holiday camp Pontins. He also owned two casinos in central London, which was my first exposure to the gambling industry.

I was trekking in Peru and had just come down from the mountains to Cuzco, when I got a call from [Playtech CEO] Mor Weizer, who asked me if I would be interested in a place on the Playtech Board – and I was. Playtech had been an investor and supplier for Sportech.

TJH Group, Investment Director, 1993-1998 TJH – as in Trevor James Hemmings. It’s a grand job title but I basically sat in meetings and carried Trevor’s bag and learned from one of the UK’s most successful entrepreneurs. He owned Lingfield Park Racecourse, which we put into a small public company, which became Arena Leisure and after a few months I went with it.

Mor is clearly very commercially-focused, very driven, and can be very aggressive, but after Russia’s invasion of Ukraine, where we have 700 employees, he was amazing.

He – and his senior team – treat the whole of Playtech like an extended family, and the degree of empathy he showed after the invasion was truly humbling.

IXUP, Non-executive Director, 2022-Present IXUP runs the national self-exclusion register for Australia and just secured the contract for Ontario.

Its numbers are amazing - 16 billion checks in the first year at five milliseconds-a-check with over 170 operators. [Tekkorp chairman] Matt Davey is an investor and I knew Matt because we launched the first – or maybe the second – online casino in New Jersey in 2014 with Resorts Casino, which would have been the first or second online casino in North America. Matt’s company NYX, provided the technology and we [Sportech] provided the licence.

Arena Leisure, FD 1998-2000, CEO, 2000-2005 At 34, I was one of the youngest CEOs of a publicly-listed UK company. We started off with Lingfield, bought seven racecourses, and then walked into Sky and said we’d buy the media rights for racing, which became At The Races – we launched a TV channel and had the first streaming service on the web – it did a lot of buffering. (My kids don’t know what that means.)

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PEOPLE

Leaders making moves • Super Group President and Chief Commercial Officer Richard Hasson has resigned from the NYSE-listed online gambling group and will leave during 2025.

• Apollo Global Management has named former Aristocrat Gaming CEO Hector Fernandez as the CEO of the holding company formed to acquire IGT’s Gaming & Digital business and Everi Holdings.

My Life OUTSIDE Gambling

• Lottery and gaming operator Allwyn has hired former 888 COO Elena Chambers as its new group chief transformation and corporate development officer.

• Entain has made The Kraft Heinz Company’s Chief Strategy, Transformation and Digital Officer Dafne Guisard its new COO. • Former Leander Games and GTS CEO Steven Matsell has returned to the executive fray as the CEO at iCasino game provider Jelly Entertainment. Current CEO David Newstead will transition to the role of Chief Business Development Officer.

HORSES I have co-owned a few horses. We had one – Gas Line Boy who led the Grand National…all the way to the first fence, where it fell. The trainer said it jumped it “too well”.

• Scientific Games has lured Matt Lynch from Firework to be its new President of Digital. Previous incumbent Steve Beason is named Chief Innovation Officer.

FAMILY I am married with two grown-up kids. Spending so much time away from home, I’d often fly in on a Saturday morning and turn up at the kids’ rugby or hockey games – standing on the touchline with my suitcase in the rain.

• Former Spotlight Sports Group exec Simon Winder joined digital marketing supplier QiH Group as Chief Financial Officer.

• Underdog has recruited Will Twinn, the former VP of trading at FanDuel, as its SVP for pricing and trading. Meanwhile, Greg Roseberry joined from Google as the new SVP of finance.

I’ve spent so much of my life in hotels, eating and drinking, that I started running as a balance. Now, all of the family do it. I’ve got a 10k with my son, daughter and brother in two weeks.

• Yolo Entertainment has promoted Sandra Vask to COO from Head of Legal.

Anthony Cabrera joins Vask on the leadership team as the new director of Bitcasino. Meanwhile, Amy Howard has taken on the role of Director of Retention.

In addition, Alexander McLoughlin stepped into the position of director of core markets – Asia.

FOOTBALL I grew up in Preston and have been supporting Preston North End (see photo) since then. I’m a season ticket holder and love it – despite the lack of success, I live in hope. We lost nine consecutive playoff games, which I think is a record. For the Bolton game in 2001 – Big Sam vs our boss David Moyes – we were going to Majorca on holiday. I flew Easyjet to Majorca on the day before the game. I had dinner with the family and flew back to the UK and we lost 3-0 and I went back to the airport – four Easyjet flights in 24 hours. Not great for my carbon footprint!

• Genting Group announced veteran gaming executive Jim Murren as Chairman of Resorts World Las Vegas, while Alex Dixon takes over as CEO.

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SPOTLIGHT

SBC LEADERS ISSUE 34

FAMILY VALUES 8

SPOTLIGHT

LeoVegas Group Chief Executive Officer GUSTAF HAGMAN is revelling in his role within MGM Resorts following a successful launch in the UK and, at the time of writing, an exciting one pending in Brazil Words by STEVE HOARE

G

ustaf Hagman’s journey as Chief Executive Officer of LeoVegas is the archetypal entrepreneurial route – from plucky start-up, to IPO, to acquirer to acquired – with one very notable exception. He’s still there.

One might have expected Hagman to have quit by now – to vanish off into the sunset two years after MGM Resorts acquired LeoVegas for $607m. He was the company’s biggest shareholder and it would have been quite normal to take a well-earned break before plotting how to invest his millions into the next entrepreneurial venture.

But not Hagman. And interestingly, not the founders of Push Gaming, which MGM acquired a year later in 2023; nor the CEO of Tipico North America, which MGM acquired in 2024; nor even the majority of the founders of UK-based RocketX, which LeoVegas acquired in 2018 and is now the vehicle for BetMGM in the UK – the most visible brand in the market.

“It’s about culture,” says Hagman. “It’s important for us to buy a company where you have a management team that is hungry and still wants to continue to move forward. All of that is important and that’s also why maybe it takes a little bit longer for us to do the M&A because we are trying to get close to the founders and to the teams to see that they work as a part of the family.”

Hagman uses the word family a lot. He always has done. That he continues to use it since the MGM Resorts acquisition is indicative of the culture of the wider group. The LeoVegas CEO talks very fondly about his MGM counterpart Bill Hornbuckle and the team that guides their shared operations.

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The trust that they put in our hands to launch BetMGM globally. I mean, that’s massive

SPOTLIGHT

SBC LEADERS ISSUE 34

“

It’s important for us to buy a company where you have a management team that is hungry and still wants to continue to move forward something that Hornbuckle promised at the time of the acquisition.

It is perhaps an unremarked upon factor when analysts and commentators talk about MGM’s potential acquisition of Entain’s half of the BetMGM North America joint venture, which still operates independently from LeoVegas and MGM’s other digital assets. For all the talk of owning the entire tech stack and being in charge of your own destiny, MGM’s apparent desire to bring the JV in-house might also be about culture. It feels like the right thing to do.

“One of the things that kept [LeoVegas] restrained was capital,” the MGM chief told investors. “And, obviously, given the balance sheet, given our desires and our aspirations in this space, they won’t be capital restrained in the near term.”

Hornbuckle has been true to his word. The LeoVegas team has grown from 960 people in 2022 to over 1,900 today.

That said, Hagman will tell you that switching from NYX to the in-house Rhino platform in 2015 was a game-changer for the company.

Rhino has proved adaptable and a real power behind the company’s growth. A similar philosophy lay behind the acquisition of Tipico’s North American sportsbook last year.

The company will switch all its sportsbooks from Kambi in due course.

“The trust that they put in our hands to launch BetMGM globally. I mean, that’s massive,” says Hagman. “And that’s reflected in the number of new employees.”

Around 350 of the new recruits came via the acquisitions but that’s still a healthy 900 new faces. They are mostly developers as LeoVegas seeks to integrate its new assets such as the Tipico sportsbook – rebranded Tiger to fit with the Rhino iGaming platform and the twin lions of Leo and MGM, “we’re running out of animal names,” quips Hagman – and looks to Brazil.

TAKING BETMGM GLOBAL But Hagman is not here to talk about the North America joint venture – he has nothing to do with it. However, as LeoVegas CEO, he is in charge of BetMGM’s wider international presence online.

More on Brazil later… BetMGM UK has been the most visible evidence of the LeoVegas-MGM global digital push thus far. You can barely turn on the television without seeing Chris Rock beaming about “a new golden era in betting and gaming entertainment”. If you turn up at a racecourse, you’re likely to see the BetMGM brand plastered along the railings.

If you look at the largest publicly-listed US casino companies – Las Vegas Sands, MGM, Churchill Downs, Wynn Resorts, Caesars, Red Rock Resorts and Boyd Gaming – MGM is the only one with a business spanning Las Vegas, an element of US regional gaming, a footprint in Macau and interests in online. Flutter aside, it is the most internationally-focused gaming operator on the planet.

“It’s a powerful brand,” says Hagman. “It’s also the combination of ‘bet’ and ‘MGM’ that makes it attractive for both the sports audience and the casino audience.”

With a view to achieving its international ambitions, MGM has invested heavily in LeoVegas since the acquisition. It was

10

SPOTLIGHT

“In the UK though it’s more sportsfocused on the brand side. That’s how we’re trying to attract the customers even though we are looking for casino customers as well, of course.”

And the entertainment aspect is at least as important as the sports and casino, continues Hagman.

This chimes with current thinking around the sustainability of gambling companies but Hagman is making the point that MGM is a brand in the entertainment industry. Of course, it is separate from MGM Studios nowadays but people still associate it with the glamour of Hollywood – as well as Vegas.

Advertising and sponsorship is just one part of the branding picture. The other is the product itself. Push has been a big part of that. It is using MGM intellectual property to create branded slots such as MGM Grand Gamble and Emerald Knights, which are among the best-performing in the Push ecosystem. Incidentally, Push retains its B2B clients and that’s a role LeoVegas will assume when it embarks on its next landmark launch.

ONTO BRAZIL MGM has established a joint venture with leading Brazilian media company Grupo Globo to enter the licensed betting market in Brazil. The Brazilian operation will use BetMGM’s branding and LeoVegas will be supplying the betting and gaming technology.

“It’s a little bit of a new setup for us,” admits Hagman. “Because it is a joint venture between MGM and Globo that operates it, and we’re providing the technology, product etc.”

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SPOTLIGHT

SBC LEADERS ISSUE 34

“

This will be LeoVegas’s first foray into a supplier role and it will be vital that all aspects of the MGM Interactive ecosystem communicate with each other.

In my opinion, president Justin Hurt is coordinating the Brazil project, working closely MGM International Interactive they should go with President Gary Fritz and SVP and Head of Interactive, North America for the black Christian Stewart. UK-based MGM international M&A chief operators or James Brodie completes the MGM grey operators International Interactive team.

“There’s a small but very handsto a larger on team of man-managers and business developers, I would say. extent, rather And they work very closely with me and Stefan and Matthias and Abby,” says referring to LeoVegas CFO than chasing he Stefan Nelson, and Chief Product Technology Officer Mattias the ones that and Wedar, and Legal and Compliance have a licence Chief Abby Cosgrave.

LeoVegas’s Americas senior vice-

The interview takes place before Christmas but by the time you read this article, the Brazil operation will be up and running. Hagman rejects the suggestion that he put a “if all goes to plan” disclaimer on this statement.

“Yes, yes, yes. Yes,” he confirms. “I mean, it’s been a tight ship and a tight deadline and everything. But it’s definitely up and running by then. I’m not going to give you a date, but it will be up and running.”

The compliance picture is still being mapped out by the Brazilian authorities but this has been a fact of life for LeoVegas for a long time.

The high percentage of revenue from regulated markets was a factor behind MGM’s acquisition of LeoVegas and also in the subsequent purchases of Push and Tipico.

Again, this comes back to the culture of organisations. The launch of BetMGM internationally has not been an easy ride. The compliance piece in the UK has got tighter and tighter, while the Netherlands has introduced an advertising ban, which will be cramping BetMGM’s style.

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In the third of BetMGM’s recentlylaunched European markets – Hagman’s home country Sweden – the regulator has, at least, been fairly consistent.

“Although they made a tax change during the summer – but not from a product point of view and a player experience point of view, it’s about the same. Whereas in other countries the regulators are tightening stuff and changing from time to time,” he continues. “In my opinion, they should go for the black operators or grey operators to a larger extent, rather than chasing the ones that have a licence.”

It’s the only combative note that Hagman strikes during our conversation. Hagman has always been a vibrant CEO and remains ebullient. If everything seems to be running smoothly now, it has not always been the case. The torrent of new rules and regulations that the Gambling Commission introduced right after LeoVegas acquired RocketX was almost disastrous.

Hagman and his Newcastle-based team learned a lot from that experience and this time round, with MGM backing the launch of BetMGM, the Commission has been less disruptive. The operator also had to quit the Netherlands, when the country launched its regulated market in 2021, only to return two years later. All of which means that Hagman is older and wiser than the young buck who launched the innovative ‘mobile-first’ operator with Robin Ramm-Ericson in 2011.

“It’s a different beast these days,” he says, “and there are good and bad bits with that, of course. But I think the strength that we have within the family now with MGM, and the good collaboration with Bill and Gary and Chris and all of them are great guys and a great team over there.”

LeoVegas’s 1,900 employees are just a small part of the 83,000-strong MGM Resorts but it is a vital part in fulfilling the company’s global ambitions. The family is growing but the bonds are tight.

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THE HOT TOPIC

SBC LEADERS ISSUE 34

SBC Leaders scrutinises the avalanche of reports emerging on the scale of the black market and asks what can be done to combat it

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THE HOT TOPIC

Words by STEVE HOARE AND CONOR PORTER

R

ecent months have seen a surge of concern about the black market. Licensed and regulated gambling operators across the globe are watching customers depart as new regulations on affordability and game design make the unlicensed sector increasingly attractive. Trade bodies, regulators and analysts have released a blizzard of estimates, reports and statements about the black market’s recent growth. The concern among many is that the regulated sector is fast approaching crisis point.

In the UK, trade association the Betting and Gaming Council (BGC) teamed up with consultants Frontier Economics to issue a report in September that estimated almost £4.3bn is being wagered on the illegal market every year. £2.7bn is being wagered online on illegal websites, with up to a further £1.6bn potentially being staked in person at illegal gambling dens.

The £2.7bn figure was split as follows: £262m attributed to players who exclusively use black market online operators; £433m comes from those who only gamble via social media or messaging platforms such as WhatsApp; while the remaining £2bn is contributed by players who split their gambling activities between black market and UKregulated operators.

In the Netherlands, the Dutch gambling regulator Kansspelautoriteit (KSA) noted in its semi-annual monitoring report in October 2024 that it expected legal operators to see 87 per cent of total gross gaming result (BSR: stake minus payout) in 2024, but claimed that 95 per cent of players are only playing with licensed operators. It believes BSR has dropped just 1 per cent, while those playing solely with licensed operators is up 5 per cent.

However, the trade associations Vergunde Nederlandse Online Kansspelaanbieders (VNLOK) and Nederlandse Online Gambling Associatie (NOGA) have expressed concerns with the regulator’s figures.

NOGA and VNLOK think that although channelisation has fallen slightly and the pool of players playing on illegal websites has dropped, more money is being spent by players who are only playing in the black market. In summary, they believe that the players who spend more on their gambling are switching to unregulated and illegal offerings.

“

I think Google is the big one but we are seeing more coming up now on Facebook and such like Fiona Palmer, Gamstop

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THE HOT TOPIC

SBC LEADERS ISSUE 34

“

While figures about the black market’s size differ from region to region and from organisation to organisation – regulators tend to be more optimistic, while operators tend to be more pessimistic or, they would say, realistic – the common ground shared among all regulated industry stakeholders across the globe is that it must be stopped.

Proposals by anti-gambling prohibitionists like advertising bans or intrusive, blanket, low level affordability checks will not protect customers, in fact they will give another leg up to unscrupulous black market operators

HOW DID WE GET HERE? The Frontier Economics and BGC report stated that out of the more than 6,000 people it surveyed, 15 per cent knew of at least one unregulated online gambling brand, with social media advertising and sponsorship being the main drivers for their awareness of illegal operators.

The report found that illegal operators are offering more “attractive features” than those offered by UKlicensed operators. The top five reasons for using an unregulated operator included: better bonuses/free bets (34.5 per cent of respondents); ease of setting up an account (32.3 per cent); anonymity (30.9 per cent); more flexible payment options (29.6 per cent); and better odds (29.6 per cent).

Respondents also highlighted other features of the black market, such as avoiding deposit limits (25.1 per cent); avoiding the need to provide documentation (24.7 per cent); being able to bet more money (22 per cent); and avoiding selfexclusion measures (17.5 per cent).

Grainne Hurst, Betting & Gaming Council

It was also noted that many illegal operators openly promote their “non-Gamstop” status to appeal to those seeking alternatives to the regulated market, specifically targeting players who have registered to exclude themselves from gambling – either to control their gambling or to prevent themselves from experiencing gamblingrelated harm.

Experienced Eilers & Krejcik Gaming (EKG) SVP Alun Bowden was sceptical about the industry’s constant harping about the size of the black market until he did his own research.

“The last 12 months or so has seen a very big change in market dynamics in the UK and the black market is growing at a very fast clip based on all indicators I can see,” Bowden posted on LinkedIn. “This is not being driven by sports betting either; it’s online casino growth from a pretty diverse source of players and with an increasingly sophisticated network of operators.”

The EKG team outlined three main channels for illegal operators: ‘traditional’ offshore online operators; private bookmakers operating on Whatsapp or Telegram; and crypto operators.

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THE HOT TOPIC

The report concluded: “While the black market is not a structural risk in its present form, the rate at which it is growing and the increasing attention it is attracting is a big risk for the UK in the medium- to long-term.”

The situation is even worse overseas.

Back in September 2024, a report by Regulus Partners for Entain noted that while black market participation in the UK is growing, international markets are even more heavily affected.

The report noted that in France, around 45 per cent of gambling revenue is spent in the black market (mainly due to the ban on iCasino), while in Germany, almost 60 per cent is spent with unlicensed operators (as various limitations have inhibited regulated operators). Regulus noted that players went to the black market due to “the impact of bans or heavy restrictions on popular gambling products”.

Ismail Vali, the CEO of Yield Sec, suggests the situation is even more bleak. He believes the GGR of the global licensed industry is $65bn, while the illegal gambling industry reaps $714bn. He says the worst situation is in Hungary, where the regulated market accounts for only 7 per cent of the whole.

Vali tells SBC Leaders: “It is a sea of criminality.

Most online marketplaces are compromised by crime today.”

INTERNATIONAL COOPERATION IS KEY Across the industry, numerous solutions have been pitched on how to tackle the black market.

When reflecting on the previously cited Frontier Economics report, the BGC called for “balanced regulations and stable taxation” as the best way to combat the illegal market.

BGC CEO Grainne Hurst noted: “The Government and the regulator risk sleepwalking into this issue. Simply giving the Gambling Commission more powers and more resources to tackle the black market won’t, in itself, work. Enforcement is only part of the solution.

“The fact is onerous and ill-judged regulations drive customers from the regulated sector to the unsafe, unregulated gambling black market.

“Proposals by anti-gambling prohibitionists like advertising bans or intrusive, blanket, low level affordability checks will not protect customers, in fact they will give another leg up to unscrupulous black market operators, the last thing anyone wants.

Grainne Hurst, CEO of BGC

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HOT TOPIC

SBC LEADERS ISSUE 34

“Every comparable market in the world tells us the same thing. The best defence against this growing illegal, gambling black market is getting the balance of regulations right.”

•

Vali agrees. While advertising bans are in vogue – and even the UK Gambling Minister Baroness Twyford is promising action on this front – the Yield Sec CEO says they are self-defeating.

•

He believes that advertising helps build recognition of legal and regulated operators.

•

In the Netherlands, VNLOK and NOGA have launched ‘Meld Vals Spel’, a reporting centre to highlight illegal online gambling operations in the country.

•

•

Blocking payments to black market operators through payment services providers to force them out of the market - while working with banks to ensure legitimate customers can gamble Restrictions on mainstream/social media advertising Blocking the IP addresses of operators and using the new Online Safety Act to make black market access more onerous Stepping up criminal enforcement to tip the risk-reward balance against unlicensed operators doing business.

Public blacklist to educate consumers

The Gambling Commission has started to do its bit. It has issued 770 cease and desist orders to unlicensed operators since April 2024, with 264 websites taken down. It has referred 120,000 URLs to Google and had 64,000 removed from search engines.

The portal will allow VNLOK and NOGA members, as well as other licensees, partner organisations and other industry stakeholders to report any illegal gambling practices they see, highlight the risks of illegal gambling websites, as well as assist the KSA in its investigations.

In Germany, the regulator GGL is also collaborating with Google, which passed new rules relating to illegal gambling and paid search. It has made an impact. GGL claims that Google has removed all unlicensed gambling operators from Google ads but the industry remains sceptical.

The Entain and Regulus Partners report laid out what they believe to be five “highly achievable” countermeasure tools that can help tackle the black market. These are:

I strongly suggest you all undertake due diligence to ensure none of your suppliers are directly or indirectly engaged in supporting unlicensed activity in this market Andrew Rhodes, Gambling Commission

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HOT TOPIC

Tipico Director of iGaming Christian Heims says: “There has been an improvement.

However, at the end of September, right after the new rules were introduced, things actually got worse… In the end, it’s a zero-sum game.

The decrease in paid traffic to black-market sites is offset by an increase in traffic from organic searches.”

The tide might be changing, though. The biggest unlicensed operator in the US is arguably Bovada, which has reacted to a number of cease and desist orders from regulators by withdrawing from 13 US states and Washington DC.

Despite Heims’s verdict on GGL’s initial efforts, collaboration will play a key role – not just within markets but internationally.

This is real progress. As noted above, the UK Gambling Commission has also been making progress with cease and desists but its biggest move might yet be imminent.

A POTENTIAL GAME CHANGER

Gamstop CEO Fiona Palmer says: “This is a global regulation issue and it needs a number of different approaches to it. There’s not going to be any one solution but you need the regulators to have a joined-up agreement.

Because if you take an approach of closing it down (‘it’s not happening in my country’), all you’re doing is pushing it elsewhere.”

CEO Andrew Rhodes stated at the Commission’s annual CEO Briefing in November that licensed operators need to do their due diligence to make sure their supplier partners don’t support unlicensed activity.

“I said to you last year that I wanted to encourage you to use your commercial influence with any partner or supplier you have to ensure they were taking all the relevant steps to verify they were not supporting illegal activity facing into GB,” Rhodes said at the event.

The pressure is growing on Google to take more action.

Palmer continues: “I think Google is the big one but we are seeing more coming up now on Facebook and such like.”

These are huge, international but US-based companies, she says, which probably do not have much interest in the gambling black market in the UK. But if regulators can talk to each other and approach this in a concerted manner then perhaps they can put some pressure on these companies to act meaningfully.

“I’m going to go one step further than that today and strongly suggest you all undertake due diligence to ensure none of your suppliers are directly or indirectly engaged in supporting unlicensed activity in this market.

“The Commission’s strategy on combatting illegal gambling is to cause as much upstream disruption as we can, which is why we have focussed on ISPs, payment providers, search engines, software suppliers and more.”

To this end, the BGC signed a memorandum of understanding with the American Gaming Association (AGA) and the European Casino Association (ECA) last October to collaborate on global gaming industry issues, including illegal gambling.

SBC Leaders contacted the leading suppliers in the iGaming space – suppliers that can be seen all over unlicensed operators such as those advertising ‘not on Gamstop’ in the UK. Games Global and Pragmatic Play did not return our requests for comment but Evolution Gaming did.

Bill Miller, CEO and President of the AGA, stated at the time of the announcement: “By fostering dialogue and cooperation across borders, the AGA, ECA, and BGC are taking a proactive approach to safeguarding the integrity of the legal gaming industry and ensuring its continued growth and success.”

“To our knowledge we have had no specific requests from operators in the UK,” says Evolution Head of Investor Relations Carl Linton. “We are licensed in the UK, and we take compliance to regulation, as well as our commitment to responsible gaming, very seriously. We are not aware that any of our products are being offered on websites actively marketing to self-excluded individuals.”

It was largely a symbolic Transatlantic move but the AGA’s heavyweight influence might have a bigger impact on lawmakers and regulators. Although, it must be said that it has been making this point for a while as an argument for legalisation of sports betting and iGaming, with almost zero effect when it comes to iGaming.

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THE HOT TOPIC

SBC LEADERS ISSUE 34

“

This is an incredible claim. It takes seconds to do a Google search on ‘not on Gamstop casinos’, which will take you to an affiliate listing unlicensed operators and one more click and you are in a lobby full of Evolution’s games.

It is a sea of criminality. Most online marketplaces are compromised by crime today

Linton says Evolution only provides its products to B2C and B2B customers with an online casino licence granted by a country or state ( jurisdiction). He then seems to pass the buck onto games aggregators.

“We perform a full due diligence of our direct customers,” continues Linton. “For customers with B2B licences, we require that the customer reports each new operator and reports their operator’s licences, all in compliance to regulations. We have no direct interaction to players, nor do we handle players’ money, and we do not control which markets that our operator customers operate in. The decision which markets to target with their services lies with the operators.”

Linton also suggests that Evolution has a problem with illegal operators copying their games: “We remain committed to using technological and organisational solutions to battle unauthorised use of our services.

We take attempted infringements of our brand and games very seriously. If there is a suspected infringement related to Evolution’s products, we will work with the relevant regulatory authorities to investigate and address it.”

If Evolution’s explanations sound familiar – at least it admits there is a problem and claims it will take action.The silence emanating from the other two major suppliers we contacted -- Games Global and Pragmatic Play -- is deafening. But they are not alone.

Regulators might need to do more than make bold speeches to get certain parts of the industry to rise to this challenge.

It remains a real possibility that the illegal market is more attractive than the UK. If threatened, it is not beyond the realms of possibility that suppliers pull their games from the UK rather than the black market.

After all, as Yield Sec claims, the global GGR of unlicensed operators is worth 998 per cent more than the world’s regulated markets.

Ismail Vali, CEO of Yield Sec

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Fira Barcelona Gran Via 20-22 JANUARY 2025

REGISTER NOW www.icegaming.com #ICE25

SBC SUMMIT

SBC LEADERS ISSUE 34

ALL EYES ON

LISBON Leaders assemble to tackle black market, regulatory change and more at the groundbreaking SBC event Words by ELLIS DAVIS

W

hile much of the world may remember 2024 for its historic elections, Messi’s Copa America triumph or Yamine Lamal at Euro 2024, those in the iGaming and sports betting world will remember it as the year SBC Summit broke new ground in Lisbon.

Gustaf Hagman (LeoVegas CEO), Neal Menashe (Super Group CEO), Tom Bowry (Flutter International CSO), Nils Anden (Kindred Group CEO) and Shimon Akad (Playtech COO) tackled the complexities of navigating Europe’s diverse regulatory landscape and explored pathways for stronger industry-government collaboration.

Debuting last September at the Feira Internacional de Lisboa, the summit solidified its status as the industry’s fastest-growing event, drawing an impressive 25,000 professionals — up almost 70 per cent on 2023’s Barcelona edition.

Technology’s role in regulatory compliance was a key focus. Akad commented: “You need to make sure that your technology is adapted and capable of supplying and answering the requirements of that specific market…. And then you need your platform to be able to adapt to different markets at different times with different regulations.” Bowry spoke of the need for more effective working relationships between the industry and regulators.

Representatives from 134 countries gathered at the venue, with participation skyrocketing from every corner of the globe: attendance surged by 126 per cent from Latin America and the Caribbean, 80 per cent from Asia, 45 per cent from Africa, and 127 per cent from North America.

“We need to work with them [regulators] to make sure that the regulatory framework is sensible… when you create regulatory situations where products aren’t allowed or tax rates are prohibitive, this is where the unlicensed operators are and can come in with a better product.”

The 110,000-square-metre expo floor became a dynamic showcase, hosting 600 exhibitors with designated zones for every sector, from Casino & iGaming to Sports Betting and Player Protection.

Three new side summits — the Affiliate Leaders Summit, Payment Expert Summit, and ESI Lisbon — added depth and dimension to the event, each drawing its own engaged crowd.

Menashe, on the other hand, discussed how collaboration between operators could be the key to more efficient and clearer regulation.

EUROPE’S REGULATORY HURDLES

“We [operator CEOs] didn’t come together to the regulator with a single view of how it should work. The minute the regulator sees this, they take you apart individually as opposed to a single unit.”

One of the highlights was the ‘Europe Leaders’ panel, which zeroed in on Europe’s regulatory hurdles in the wake of nine major elections.

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SBC SUMMIT

Another key topic was how clear, balanced regulations can deter unregulated operators, encouraging players to choose trusted brands. Anden at Kindred explained: “If it’s a sensible regulation, the unlicensed operators are not going to be as attracted to the market because players will play with the brands that they feel offer decent customer service in the markets they operate in.”

WHITE PAPER OPTIMISM

Continuing the discussion on addressing unlicensed operators, Hagman suggested that implementing B2B licences could be the solution.

Kaltenieks emphasised the value of omnichannel operations: “We’re very confident in terms of our ability to run a good retail estate, to have that omnichannel experience and then expand digitally…

If there’s a chance to combine that omnichannel experience, I think that’s just gonna add to the success of the operation.”

“Some markets actually have B2B licences, meaning that there is also a licence for the suppliers in those markets. By talking about suppliers, I would say that not only the gaming suppliers should be licensed, but also payment providers and maybe to some extent affiliates.

And then you could put restrictions on both the gaming suppliers, payment providers, and affiliates, not to supply companies and operators that are not licensed in the market.”

Zooming in on the UK, the ‘UK Leaders’ panel featured Per Widerstrom (CEO, Evoke), Steve Birch (CCO, Sky Betting & Gaming), Savvas Fellas (Founder & CEO, MrQ), Vlad Kaltenieks (CEO, BoyleSports), Stuart Simms (Group CEO, FairPlay Sports Media) and Niki Stephens (Partner, Mischon de Reya).

When attention turned to the stringent restrictions in the Gambling Act Review published ‘White Paper,’ which introduced vigorous new market restrictions, Fellas expressed optimism about collaborative dialogue with regulators.

“

31 per cent of the 25,000 delegates were C-suite executives and founders, and another 22 per cent were Directors, VPs, and Heads of departments 23

SBC SUMMIT

SBC LEADERS ISSUE 34

“[Regulators] are a lot more open to dialogue, they’re a lot more mindful of what needs to be done and the challenges. They are listening more.”

of documents. So it’s absolutely fundamental now that as part of this pilot, we deliver as frictionless as we possibly can.”

Birch echoed this optimism for the UK market, despite stringent regulations, suggesting that the responsibility for industry innovation still rests with operators.

Additionally, speakers explored how the UK could learn from markets like the US, where affiliates are licensed. Simms expressed support for this approach.

“I quite like the US model where affiliates, for example, do get licensed. And I think that brings rigour to who gets to represent the sportsbooks, their products and their services, and also can increase the level of trust with the consumer that we are doing a good job in.”

“I think blaming regulation for lack of innovation is an excuse, I think you can innovate in this market. The UK market is a really good market... but it then comes down to your customer research, the quality of your team, to go out and think about those new ideas and find those new products that are going to improve the experience for customers.”

With a multi-year contract in place to host SBC Summit at the Feira Internacional de Lisboa, the‘The Greatest Show in Gaming’ will be back in Lisbon on 16-18 September 2025.

Commenting on how to address the issue of unlicensed operators in the UK, Widerstrom shared his view that a frictionless user experience could be essential.

SBC Founder and CEO Rasmus Sojmark, CEO commented: “2024 was a game-changing year for SBC, with SBC Summit as a standout highlight. We broke records and elevated this event into a must-attend for the industry. I’m truly grateful for all the support and excited for an even bigger 2025. We’re already planning, and I can’t wait to see everyone back here.”

“The black market, in the context of the UK, I believe 50 per cent [of players] actually thought they were on the regulated site, the rest of the 50 per cent actually went to those sites because of the less friction, less requirement

2023 VS 2024 SBC SUMMIT

SBC Summit

2023

2024

% +/-

2025 (est.)

Attendees

15,000

25,000

+67%

30,000

Exhibitors

350

600

+71%

700

Operators

4,500

8,000

+78%

10,000

Affiliates

1,500

2,500

+67%

3,000

Speakers

450

450

0%

500

§

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SBC SUMMIT

K W A H TONY

INTRODUCING THE SUPER STAGE O

ne of the most exciting additions to SBC Summit was the debut of the Super Stage, which was held in the MEO Arena, one of the largest indoor arenas in Europe. It served as the focal point for the event’s most anticipated discussions, offering attendees a blend of perspectives from both inside and outside the industry.

• Skateboarding legend TONY HAWK shared his journey in building a global sports brand.

• UFC Bantamweight champion MERAB DVALISHVILI gave a glimpse into the mental resilience required to excel at the highest levels.

• SIR TIM BERNERS-LEE, the inventor of the World Wide Web, reflected on the transformative role of technology in shaping the industry’s future.

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• LUIS FIGO, PETER SCHMEICHEL, and TNT Sports presenter LAURA WOODS joined the lineup, making an already all-star stage shine even more.

From AI’s transformative edge, spotlighted by Sportradar CEO Carsten Koerl, to Sofascore’s remarkable success story shared by CEO Zlatko Hrkać and CSO Ivan Bešlić, these panels went straight to the heart of the industry’s most pressing topics.

In a standout session, the Women Empowerment Initiative brought together the industry’s female leaders, while regional insight came from those thriving in markets from Europe to North and South America and Africa.

LOTTERIES FOCUS

SBC LEADERS ISSUE 34

The AFFORDABILITY

QUESTION As the UK and other markets introduce affordability checks, an expert panel assesses the effect of affordability limits in Finland, Germany and Sweden

Words by STEVE HOARE

L

uca Andric, the Managing Director of Germany’s industry association Deutscher Sportwettenverband opened proceedings with a discussion of the two-year-old German model.

Germany is unique in being the first nation to introduce a shared database that every licensed operator connects to.

“It’s not that one operator needs to fulfil the limits, it’s shared with everybody else,” said Bet It Best CEO Nico Jansen.

“It is a live database. Whenever a customer deposits, this information is mirrored to the database, and it is deducted from his account.”

Germany has a standard deposit limit of €1,000 per month but there is also a multi-tiered exemption system for customers who want to go above that limit. The higher you go, the more checks have to be undertaken by operators and the regulator. There is another check at €10,000 and another at €30,000.

“Initially, we were talking to the regulator about data protection issues,” said Andric. “At the moment we’re discussing whether these thresholds are right.”

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Former Swedish monopoly Svenska Spel first introduced deposit limits 15 years ago, before it was adopted as a licensing requirement in 2019.

“Back then the regulator said money spent exceeding €1,000 is to be considered too much money. So they advised operators to be very careful with customers setting a deposit limit higher than that,” reported Svenska Spel Betting & Gaming CEO Fredrik Wastenson.

“So what we did was to cap the deposit limit at €1,000 for all adults. For young players we have capped it at €100. If you want to apply for a higher deposit limit you can do so. And the good thing in Sweden is we have official data of your annual income statements. So, if someone wants to set a limit of €1,700 we can look at the previous annual income statement and see if that is okay or not.”

If the annual income statement suggests it’s okay then the person will be allowed to increase their limits and, if not, the operator will lower the limit to the level it has calculated will be okay for that person.

LOTTERIES FOCUS

“

If the channelisation rate drops then we are maybe at the stage where the system will implode Svenska Spel Betting & Gaming CEO Fredrik Wastenson

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LOTTERIES FOCUS

SBC LEADERS ISSUE 34

“

The result is that we have lost quite a lot of money. But maybe it was not healthy money. As the state operator, of course, that’s okay for us

to be quite an easy process to apply for a higher limit, it turned around.”

Svenska Spel conducted a customer survey in 2023, which revealed 90 per cent of its customers were happy with the system.

“Still,” Wastenson concluded, “the result is that we have lost quite a lot of money.

But maybe it was not healthy money. As the state operator, of course, that’s okay for us.”

THE COVID EFFECT Jansen reminded us about Denmark dropping the deposit limit from €5,000 to €1,500 during the pandemic. There was a significant shift from licensed operations to black market operations. After Covid, the limit returned to €5,000 and people flocked back to licensed operators.

If they are unhappy, customers can appeal and provide documentation to prove that they can support that level of spending. It is a thorough process but the technology is swift, taking just a couple of seconds.

“When we implemented this, it came with a lot of negative responses from customers because they were not happy with having their deposit limits lowered to that level,” said Wastenson. “But when it turned out

Wastenson said that the same thing happened in Sweden during the pandemic.

Svenska Spel set a monthly limit and it could see the channelisation rate going down.

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LOTTERIES FOCUS

“I totally agree that this is a balanced equation. If all this money goes to the black market we have a much bigger problem. But I think we also have a certain responsibility as an operator to check,” said the CEO. “In Sweden, especially, it is really easy for people to get loans – you have these micro-loans.

So, we really need to check if – the young people especially – can afford to play.

Otherwise we end up in a situation which is not healthy for society.”

“Given the fact that we have experience of cross-operator limits in Germany, I would say that it’s a very, very complex system to implement,” warned Andric.

“There are lots of technical and legal questions around it. It requires the regulator to build a complex system to achieve it. There are some open questions around it but it is starting to work better than it did initially.”

Andric believes that Sweden is in a much better place than Germany, where operators rely on credit scoring databases. While these give some sense of the financial health of a player, they are not perfect and the regulator has initiated a consultation on what conclusions you can draw from the data.

Vähänen asked how do we strike the balance between boosting revenue, customer satisfaction and responsible gambling?

THE BLACK MARKET THREAT

“The only option is to monitor the player in real-time,” responded Wastenson.

“What are the foundations for that player, what are their behaviours, and are there any deviations from that? So we end up treating everyone on an individual basis.”

Andric continued: “The problem is that customers do not want to upload these documents. One of our bigger members reports a churn rate of 70 per cent – that’s seven-out-of-ten customers leaving the site when asked to provide these documents.”

“That is no easy task,” he continued.

“It is very high tech and maybe AIgenerated. And setting up all these rules and limits comes with downsides.

The main problem in the markets is channelisation. We are at the rate of 75 per cent. If that drops then we are maybe at the stage where the system will implode. It’s a tricky balance to keep the system going.”

Wastenson went on to talk about the difference between deposit limits and loss limits: “The advantage with deposit limits is that it’s upfront. It’s something you can review and decide what you spend yourself, rather than ending up in the loss limit situation. I’m very much in favour of having it upfront as a deposit limit instead of a loss limit.”

“If you look at all re-regulation, no market has a good case [controlling the black market]. Denmark might be the only success here - they have a high degree of channelisation. Nowhere else does.

Jari Vähänen, Co-Founder and Partner of The Finnish Gambling Consultants brought the conversation back to Finland, which will move away from Veikkaus’s monopoly in two years’ time.

“It’s tricky with a free internet and legislation in Sweden that does not support blocking. It can never be the case where we try to justify running an unsustainable business or the players will move to the black market.

“According to current plans, there will be limits that the customer has to set.

But the state won’t set any upper limits.

Limits will be per company and if there are 100 operators, should customers be able to set a limit across operators for total gambling spend?” asked Vähänen.

“We have to strike a balance because if we limit regulated businesses, players will leave for the black market. We have had players leave but not so much revenue leaving. We are lucky. I am very humbled to say we are a state-owned operator and not listed on the stock exchange, of course. So, we can afford to do that. But that is a challenge for the commercial operators.”

Wastenson expressed scepticism about a national limit across all operators. He said that different operators have different games. So, the limit that applies to an online casino would not necessarily be suitable for bets on horse racing.

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LOTTERIES FOCUS

SBC LEADERS ISSUE 34

Words by VIKTOR KAYED

FROM SPROUTS TO SPORTS BETTING AND BEYOND ZSÓFIA BÁNHEGYI, the Chief Commercial Officer of the Hungarian Lottery Szerencsejáték, tells SBC Leaders that lotteries need to evolve to compete in a changed world

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LOTTERIES FOCUS

Words by VIKTOR KAYED

T

he year is 1441, the place is medieval Bruges. The last summer days of August will soon disappear as quickly as the dew that evaporates from the countless pastures and fields under the gentle kiss of the morning sunrays.

The last Brussel sprouts harvest has been collected and local farmers are flocking to the town square, eager to enter a raffle that will determine who will get the best spot for their stall at the market.

But it is not just the farmers who can participate.

For the right amount of coins, townsmen and townswomen can also try their luck and take part in a draw for the chance of winning various cash prizes.

This is a public event at its core, organised by the Bruges City Council itself. It incentivises the public to voluntarily raise funds that are then used to top up the city’s coffers. The proceeds are then invested back into the local economy, be it for building a new church, new roads, or fortifying the city walls.

This is the tale of the first modern lottery in Europe, the base concept of which – subsidising social needs – is still going strong well into the 21st century.

And so, since their early days, lotteries have managed to retain their cultural significance for centuries – with the concept of building societies by financially supporting public initiatives deeply rooted into their structures.

A UNIQUE SELLING POINT With a portion of their profits often diverted to fund projects of national significance such as cultural development, sports, and charity work, among others, it is no wonder that lotteries have found themselves at the centre of shaping European heritage.

So much so that the umbrella organisation European Lotteries (EL) published a new five-year manifesto under the slogan ‘Lotteries in Europe: At The Service of The Common Good’, and with it invited the newlyelected European Parliament to protect the “unique” role of national lotteries.

One of these lotteries, and an EL member, is the stateowned Hungarian operator Szerencsejáték. We asked the lottery’s Chief Commercial Officer Zsófia Bánhegyi to give us a detailed view on what makes a national lottery unique, and what is being done to preserve this uniqueness in today’s world of digital advancements.

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“

Perhaps the most challenging aspect for my company was changing the old, monopolistic corporate mindset

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LOTTERIES FOCUS

“

The corporate brand of Szerencsejáték has a 98 per cent recognition rate in Hungary Szerencsejáték first emerged 34 years ago, operating as a 100 per cent state-owned enterprise.

In 2022, the national lottery entered the top 10 highest-ranking companies in Hungary based on generated revenues.

Leading Szerencsejáték’s marketing and commercial divisions since 2019, and helping the company achieve a double-digit revenue growth over the past five years, Bánhegyi is a decorated expert whose experience allows her to comprehensively assess the significance of the national lottery market.

“National lottery companies form a unique group within the gambling industry in Europe, as they limit their profit-generating potential with a responsible approach from the top, while continuing to generate funds for the public benefit,” she says.

In 2020, Szerencsejáték made around £6.2bn in direct contributions to social causes not only backing Bánhegyi’s words but also serving as a testament to a commitment towards public wellbeing.

Another evidence for the lottery’s

crucial community work is being named the second organisation in Europe to launch a charity scratch card sales network that employs people with disabilities, following the example first set by Spain’s ONCE foundation.

“This initiative strongly aligns with our prominent societal role as a state-owned monopolistic enterprise. One in every five frontoffice colleagues of mine lives with a disability,” Bánhegyi adds.

Such initiatives, coupled with the fact that it is a stateowned monopoly, has helped Szerencsejáték position itself as one of the most recognisable and trusted brands in Hungary.

“Fortunately, we are building on strong foundations regarding brand strength. The corporate brand of Szerencsejáték has a 98 per cent recognition rate in Hungary, representing a so-called ‘absolute awareness’, and our public trust index is among the highest for large companies.

“This is the result of three decades of dedicated effort, and our goal is to preserve this, as it represents a significant competitive advantage in today’s world.”

A NEW ERA OF COMPETITION Today’s world, however, is also one that is rapidly changing, filled with fast-paced technological developments, growing competition, and the looming threat of illegal operators.

Evolving player demands and a shift to digital has pushed providers towards deeper player engagement led by a data-driven approach.

Szerencsejáték reports that 60 per cent of its land-based players first assemble their bets online before placing them at retail locations.

The partial opening of the Hungarian market in 2023 has enticed competition craving for a share of the uncharted territory. Bánhegyi also warns of an “increasingly strong presence”

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of unlicensed online operators over the past years. Data analysts Yield Sec have estimated that unlicensed operators command 93 per cent of the Hungarian gaming market (see feature, p.14).

This has brought about a necessary change in tactics, in which the CCO and her team sought to adopt a global-first strategy to remain competitive, leading to the launch of an affiliate network managed by EveryMatrix, which is also supplying it with a new state-of-the-art sports betting and player account management platform for its online brand TippmixPro, plus virtual sports. iCasino games remain banned hence the size of the black market.

“Perhaps the most challenging aspect for my company was not even initiating player-centered developments, but rather changing the old, monopolistic corporate mindset and expanding our outlook to the global world,” Bánhegyi adds.

Szerencsejáték has placed modernisation at the forefront of its sustainability. Despite being under the partial protection of a monopoly model, Bánhegyi believes that it is vital to ensure that the quality of the lottery’s physical player experience goes hand-in-hand with that of its online services. This mindset is common among the forwardthinking players in Europe.

The takeaway for national lotteries is clear - diversification of operations equals a drown-proof solution.

While nobody is likely to take the ‘good causes’ model away, times are changing, and so is the definition of a sustainable corporate strategy.

Outsourcing service development, modernising legacy systems, or even looking to tap into other markets the pressure to innovate is on.

“The gambling industry is one of the fastest-growing and most innovative segments worldwide, and national lottery companies have entered a new era of competition. We must adapt quickly to ensure that our future is as bright as our past.”

SBC LEADERS ISSUE 34

SPORTS BETTING POWERED BY

ON THE FOLLOWING PAGES 38 42 46

Interview: Kambi CEO Werner Becher Thought leadership: Betby CEO Leonid Pertsovskiy on esports Thought leadership: Symphony Interactive CEO Valentine Syneknka on AI 36

SPORTS BETTING

GAMBLING FACES CRASH COLLISION WITH CRYPTO IN 2025 The polemics of 2024 have set the launchpad for the gambling industry to absorb its most controversial element, writes Content Director Ted Menmuir

Kalshi. At the start of 2024, the two entities were looked upon as simply as betting skins for crypto bros to bet on political/ entertainment outcomes banned in the US – deemed as a utility of little consequence.

T

he close of the year is a dreaded time for editors, as they are forced to review and reconcile with their yearly predictions.

The sweat of shame and humiliation pours from this editor’s head as he writes his SBC Leaders column having predicted with aplomb that “Man United will challenge for the Premier League title under Erik ten Hag.” Yet for those seeking restitution as we reflect on the affairs of 2024, there has been no more contentious issue in iGaming than the encroachment of crypto on the sector.

On reflection it had to be 2024, the year in which crypto engagements have begun a rude awakening with gambling as conflicts emerge from the fringes to impact all stakeholders.

Though many observe that crypto’s adoption was manifested in online gambling long before 2024, the controversies of this year have changed all parameters in how crypto is regarded and valued as an industry discipline.

Let’s look at the case of ‘prediction markets’, such as Polymarket and

Riding the rollercoaster of polemics of the US 2024 Election, Polymarket achieved a recordbreaking volume of $3.3bn wagered on Trump vs Biden/Harris.

Kalshi’s fortunes shifted on October 2, 2024, when the US Court of Appeals denied the Commodity Futures Trading Commission’s attempt to block Kalshi from offering political event contracts. The decision affirmed an earlier ruling that the Commission had overstepped by labelling Kalshi’s contracts as gambling, allowing them to be listed on a regulated exchange.

The aftermath of Polymarket’s popularity and Kalshi winning its appeal stand as an inflection point for crypto gambling’s integration with the iGaming sector, a defining moment which raises further questions about its long-term implications.

For one, the record-breaking volume wagered on the US election on Polymarket shows that cryptobacked ventures cannot be viewed as a niche curiosity but as new players capable of challenging gambling’s status quo. Yet, its financial success does not come without controversy.

Crypto gambling will continue to face criticism from detractors due to the persistent involvement of bad actors, who disregard essential regulatory standards,

37

including anti-money laundering (AML) protocols, player protection measures, and compliance with the laws of regulated markets.

These concerns are not new ground for the industry, as detractors should recall the pathway of online gambling, where operators once exploited ambiguities in regulations.

As the rollercoaster heads into 2025, all eyes will be on the new administration of President Donald Trump and its manifesto, which outlines plans for the Securities and Exchange Commission (SEC) to define the legal parameters of crypto.

Moving forward, the contentiousness and divisiveness of the subject will likely subside, as all sides must accept that gambling needs to determine its future in conjunction with crypto.

The pathway is a familiar one, as the legality of crypto gambling will ultimately be determined through drawn-out regulatory reviews by the “adults in the room”.

Let’s just remember the bitchiness, name-calling, and mudslinging as the fun part.

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ADAPTING to an EVOLVING MARKET Kambi CEO WERNER BECHER speaks to SBC Leaders about the current sports betting landscape and how the sportsbook provider is adapting to meet operator demand with its expanded product portfolio

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hat are the key trends you are seeing in the sports betting market currently?

seek greater control over their betting experiences, they are increasingly gravitating toward creating their own combinations and exploring nonstandard markets that are harder for bookmakers to price. At Kambi, we’ve recognised this demand and invested in our AI-powered pricing and trading solutions to ensure we can cater to it effectively with greater pricing accuracy and enhanced bet offer combinability.

I have worked in this industry for nearly 15 years now, during which time the sports betting landscape has evolved substantially. Today, there are several transformative trends I think are worth highlighting. One is the continued rise and growth of bet builder, which has now become an integral part of any successful sportsbook offering. Kambi’s Bet Builder is among the most cutting-edge on the market, delivering vast combinability across different games, leagues and sports for both pre-match and live, as well as supporting key features such as cash out and early payouts.

AI has been spoken about for a number of years now but is starting to become a key industry trend — not just in terms of product innovation but also in how it will enable companies like Kambi to build faster and more efficient organisations. We have been building our AI capabilities for some time now and I believe Kambi is among the leaders in this area.

The rise of bet builder reflects a broader shift towards personalisation. As players

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partners is no small feat – which is why many fail to meet the high standards required.

Lastly, regulatory and compliance requirements remain a constant factor, shaping how operators and suppliers alike approach market entry. As more markets regulate, the barriers to entry are becoming higher for smaller, local operators, making it even more crucial to have robust, adaptable and scalable solutions to navigate these challenges and deliver a compliant yet competitive offering at all times. For global companies like Kambi, however, regulation and compliance plays to our strengths and is something we see as a competitive advantage as we have proven in dozens of jurisdictions across the globe.

However, having a strong core product and stable technology alone isn’t enough. In highly competitive markets, differentiation is also important and operators must identify ways to stand out, whether that’s through control of the front end, price differentiation or thirdparty integrations – all of which Kambi offers. Local operators can also combine a high-quality sports betting product like Kambi’s with the strength of their brand and regional expertise to compete against larger international operators.

What does it take for sportsbooks to succeed in increasingly regulated and competitive sports betting markets?

There is a trend for tier one operators to increasingly use thirdparties for bespoke parts of their operations, such as odds and bet builder. What are your thoughts on this?

Sports betting success in regulated markets begins with delivering a high-performance sportsbook, but what is often missed is the complexity and ongoing investment involved in running such technology at scale. A sportsbook is one of the most intricate pieces of enterprise and end user software, requiring vast operational processes, an extensive, scalable offering, the ability to manage heavy load with spikes in volume and much more.

Additionally, regulatory compliance cannot be an afterthought. With the ever-evolving landscape of sports betting legislation, operators must keep ahead of the curve by staying on top of local regulations and managing day-to-day compliance requirements, which are areas Kambi exceeds in and support partners.

The first thing to note is that not a single operator today runs everything entirely in-house.

Even the largest operators that take a more limited approach to outsourcing recognise that, to increase the quality and efficiency of their largely in-house sportsbook, they must also outsource some key aspects. Whether it’s platform, pricing, trading, risk management or front end, the question isn’t whether to outsource, but rather to what extent and in which areas. Only the operator itself will know the answer to that question.

Having said that, I still believe that an end-to-end sportsbook solution like Kambi’s Turnkey Sportsbook will be the right approach for the majority of operators because it provides everything needed to compete effectively in regulated markets. However, for larger, tierone operators with the resources and desire to control more of their tech stack, selectively outsourcing certain components makes sense too.

Navigating all these elements requires a supply chain that performs seamlessly at every level. It starts with integrating official sports data partners and reliable algorithmic models to process the data, followed by exceptional trading, risk and liability management, all delivered through a fast, user-friendly front end. Only when these components align perfectly can an operator provide a truly top-tier service. That being said, doing so for millions of users across various regulated

At Kambi, we support both approaches, offering a flexible product suite that allows operators

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Not a single operator today runs everything entirely in-house. Even the largest operators recognise they must outsource some key aspects

to decide how much they want to outsource based on their size and strategic ambitions.

How is Kambi adapting its product suite to meet the changing needs of operators?

Kambi has long been recognised as the leading premium turnkey sportsbook provider, and that remains a cornerstone of our offering. However, we also understand that one size doesn’t fit all. The needs of operators are diverse, and we’ve evolved our portfolio to reflect that.

So, in addition to our flagship Turnkey Sportsbook, we are now establishing ourselves as the home of premium sports betting solutions by offering a range of modular solutions, including Odds Feed+, Managed Trading, Esports, Front End, Bet Builder and Sportsbook Platform. This expanded portfolio allows us to cater to operators across the spectrum, from those seeking a comprehensive solution to those who prefer a more tailored approach.

What sets Kambi’s portfolio apart from competitors?

What truly makes us unique is the power of our network and the fact each product comes from within the industry’s leading end-to-end sportsbook. This provides unmatched data-led product insights that other providers simply can’t replicate.

Bearing this in mind, the defining characteristic of Kambi’s portfolio is the sheer quality of our standalone solutions. Everything we do is designed to meet the highest standards expected by tier-one operators to give

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them the competitive edge they’re looking for. Whether it’s Odds Feed+ or Bet Builder, we deliver premium solutions that can scale to meet the demands of any operator.

Take Odds Feed+, for instance. The fact our odds feed product comes from within the Turnkey Sportsbook means operators outside of the Kambi network can create a bespoke package from Kambi’s full library of odds sharpened by the billions of annual transactions each year on the Turnkey. Coupled with the ability to integrate AI-driven odds from our Tzeract trading unit and odds from our esports division Abios, it’s a comprehensive offering delivered through a single API integration that sets operators up for success with unique features such as event resulting and cash out.

With such a comprehensive portfolio, where do you see Kambi heading in the future?

Our vision is to further establish ourselves as the home of premium sports betting solutions, continuously raising the bar for quality and innovation. While our Turnkey Sportsbook will always be our flagship product, we’re focused more than ever on empowering operators with modular solutions that enable them to differentiate and thrive in their respective markets. Ultimately, our goal is to help our partners succeed, whether they’re new entrants looking for a turnkey solution or established players seeking targeted product enhancements. As the industry evolves, so will Kambi, ensuring we remain a trusted partner for visionary operators worldwide.

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ESPORTS GOES FAST-FORWARD Betby CEO LEONID PERTSOVSKIY explains how fast betting will engage the next generation of bettors

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or games that conclude in a matter of minutes. These high-frequency, shortduration activities provide near-instant results, appealing to a demographic that craves immediacy and excitement.

Millennials and Gen Z, in particular, are leading the charge, aligning their digitalfirst lifestyles with dynamic betting experiences.

he world of sports betting is rapidly evolving, and at the forefront of this transformation is the concept of fast betting—a trend capturing the imagination of operators and players alike. Betby Chief Executive Officer Leonid Pertsovskiy shares his insights on the transformative potential of fast betting, and the factors driving the success of Betby’s proprietary esports content as it strives to set the standard for what sportsbooks can achieve in this dynamic and fastpaced era of esports betting. He also explains why fast betting has become a cornerstone for sportsbooks looking to engage the next generation of bettors.

This audience is motivated by instant gratification, seeking thrills that are accessible on their smartphones and tablets. While traditional betting markets remain essential, fast betting has emerged as a powerful driver of engagement, wagering volume and, ultimately, revenue. The appeal lies not just in the adrenaline rush of quick results but in the versatility it offers sportsbooks to innovate and engage new players while retaining existing ones.

THE FAST BETTING PHENOMENON Esports is much more fast-paced than traditional sports. Important and betting-relevant actions happen much more frequently in esports titles such as League of Legends or CS2 than they do in football, for example. An engaging esports betting offering needs to be able to keep up with that pace, and provide bettors with an equally agile betting experience.

A NEW STANDARD FOR A NEW GENERATION At Betby, this vision comes to life through its proprietary esports portfolio – Betby Games. Designed from the ground up for fast betting, these offerings leverage cutting-edge technology and a deep understanding of player behaviour to deliver an experience that goes beyond traditional wagering.

Fast betting is more than a buzzword; it’s a paradigm shift. It refers to rapid-fire betting opportunities on sports events

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Fast betting represents the future of sportsbooks, offering a pathway to attract and engage a new generation of bettors

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The quick turnover of events not only increases betting frequency but also opens the door to innovative marketing strategies

The results speak for themselves. For instance, Betby’s e-soccer simulator events deliver bet settlements in under eight minutes, enabling operators to offer a diverse array of betting markets. This year, the portfolio of markets in e-soccer has increased significantly. Now, in addition to classic markets, we are offering combo markets, markets for shots, and markets for shots on target. In total, the number of betting markets exceeds 100, often exceeding the total number of markets that other operators offer for traditional betting on the Champions League.

The competitive edge of fast betting The benefits of fast betting for operators are multifaceted. By tapping into the preferences of this newer generation – a hard-to-reach demographic – sportsbooks can broaden their appeal and enhance engagement. The quick turnover of events not only increases betting frequency but also opens the door to innovative marketing strategies, such as partnerships with leagues and teams specialising in shorter-format competitions.

Moreover, the diversity of fast betting markets allows operators to differentiate themselves. Offering an ever-evolving selection of dynamic betting options and helps build a superior player experience—one that stands out in a competitive landscape.

Fast betting’s success hinges on flawless execution, and this requires robust technological infrastructure. High-quality streaming is an absolute must, ensuring that end users receive uninterrupted, crystalclear streams for all games.

Future-proofing through innovation One must keep in mind that the esports landscape is very dynamic. New esports

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tournaments or entirely new esports titles can pop up out of seemingly nowhere for those unfamiliar with esports. What this means for betting operators is that there is a risk of missing out on new game titles or new markets.

As the industry evolves, so too will the expectations of players. Staying ahead means not just meeting current demand but anticipating future trends. For Betby, this involves a relentless focus on innovation.

By continuously expanding its range of proprietary disciplines and fast betting markets, the company aims to maintain its leadership position in this space.

For example, Betby recently launched Stormgate tournaments and became the first in the industry to offer live betting for official Escape from Tarkov games – arena tournaments, showcasing the potential of integrating new gaming disciplines with fast betting dynamics. We also added new titles such as Standoff2, Deadlock and Geoguessr.

The integration of emerging trends, such as immersive gaming experiences and enhanced live betting options, is central to this strategy. Betby is committed to adapting its offerings to align with player preferences, ensuring that its partners remain competitive in an everchanging market.

Fast betting represents the future of sportsbooks, especially when it comes to esports content, offering a pathway to attract and engage a new generation of bettors. By blending rapid gameplay with innovative technology and a playerfirst approach, Betby is redefining what’s possible in sports betting. For operators seeking to capture the attention of Millennials and Gen Z, fast betting is not just an opportunity – it’s a necessity.

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A lot of people have been labelling their products as ‘AIpowered’, but how much of the real AI is behind the technology?

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Symphony Interactive CEO VALENTINA SYNENKA believes the betting and gaming industry is miles behind the curve when it comes to AI

Words by CHARLIE HORNER

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hen historians look back at the 2020s, they will quickly point to two key developments; the COVID-19 pandemic, and the meteoric rise of AI. Perhaps the two are interlinked; it certainly seems like AI became interwoven into our daily lives after the pandemic.

with better information to suit their needs – are not just for new bettors, but they will help elevate the experience for bettors of all levels.

Yet, as businesses and brands across a whole host of sectors try to realise their AI ‘ ambitions, the iGaming industry is lagging behind, says Symphony Solutions Board Member and Symphony Interactive CEO, Valentina Synenka.

She explains: “A lot of people have been labelling their products as ‘AI-powered’, but when I go to look to understand what stands behind this tagline, very often it’s just used for the sake of saying it, because if you don’t say you’re AI-powered, you’re perceived as being behind the trend. But how much of the real AI is behind the technology? Not much, I have to say.

Synenka, who has been involved with the IT solutions company for around 15 years, says: “I remember being here [SBC Summit] a year ago and passing by a panel on AI. There were some people presenting, and so I decided to sit in and listen. They were asking ‘should we allow AI, or should we not allow AI?’ I thought, wow. It is inevitable. And it dawned on me that some are so behind and don’t know where the whole market is moving.”

COMPLETE CONTROL Symphony Solutions is an AI and cloud transformation company that serves the iGaming industry among others. One of its flagship offerings is BetSymphony, a cutting-edge sportsbook platform designed with a no-revenue-share model and full source code ownership. This approach empowers operators with complete control and freedom, enabling them to tailor the platform to their unique needs without sharing ongoing profits.

But the firm also has a product called BetHarmony, which is an AI agent to help improve the user experience within a sportsbook or casino.

Synenka outlines her prediction that the AI agent model is the future of the iGaming industry. She notes that the agents – which can help users make choices or provide them

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The introduction of BetHarmony comes at a time when Synenka sees a “very low penetration level” of AI in betting and gaming.

“We’ve been doing AI for years. Apart from BetHarmony, we have other AI services where we offer custom AI work on different levels, from building the strategy to implementing custom solutions for clients.”

A DEEP DIVE INTO BETHARMONY This is why Symphony Solutions is so excited about its BetHarmony solution.

Also integrated into the BetSymphony sportsbook, BetHarmony is offered as a standalone solution for operators and platform providers looking to innovate the user experience with AI seriously within its operations.

BetHarmony, which is labelled as an AI assistant for iGaming users, takes three key parts into account: sportsbook, casino and customer support. For the sportsbook and casino solutions, BetHarmony can help bettors find the best markets and games based on their preferences using an advanced search tool; it can also place a bet. Users can get useful information if there is authentication from the user.

In the latter, the company is aiming to help operators move away from traditional chat bots.

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As Synenka notes: “At the moment, it’s the only existing AI agent for the end users.

It’s not the usual bot or scripted bot. It’s an AI bot.”

This is the key differentiator, that it focuses on the personal experiences of each individual player rather than generic responses to the thousands of bettors who have issues.

“BetHarmony can also detect certain areas that we think are more demanding and require engagement with human agent”, Synenka adds. “For example, perhaps I would like to close my account. It’s a serious topic, the client must be really dissatisfied. So without asking, we would suggest you talk to the human agent.

“BetHarmony cannot hallucinate. We made the architecture that way so that it wouldn’t make up the answers. It’s due to its deterministic architecture.”

BetHarmony cannot hallucinate. We made the architecture so that it wouldn’t make up the answers With its BetHarmony and BetSymphony products, Symphony Solutions is building upon the 15 years of experience it has in building out IT and AI solutions for a whole host of sectors.

IDENTIFYING FUTURE TRENDS

As the firm possesses so much experience leveraging AI, SBC Leaders inquired about the key trends facing gaming executives heading into 2025.

At the top of mind is the continuing rapid development of the technology which businesses must keep evolving with.

But perhaps more specifically, Synenka foresees the rise of AI agents in the iGaming space as one of the big developments of the next 12 months and beyond.

“These are more complex AI systems that are autonomously performing more complex tasks on behalf of the users, whether it’s in retail, healthcare, or iGaming,” she says.

“We will see more AI agents appearing next year. They could be in the fraud detection area, for example, or it could be here on the front end. There could be agents covering the bonus and loyalty part, and they will become increasingly intelligent and capable of handling more complex tasks.”

For businesses considering adopting AI, Synenka offers a word of advice: “Take these changes into account, as they’ll help you work faster and smarter. Don’t limit yourself—embrace the possibilities and ensure you have a strong, trusted team to execute your vision.”

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Feature: The next stage in the evolution of live casino Editorial: Hub88’s new self-service portal Feature: Introducing the new team at Lynon 50

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FAILURE TO REGULATE COULD LEAVE A BLACK MARK ON PLAYER PROTECTION The introduction of a French iGaming market in 2025 is balanced on a political knife edge with the French government on a precipice as SBC Leaders was going to press, writes SBC’s Gaming Editor Joe Streeter safeguard to those who are likely to seek out unlicensed operators.

Nicolas Béraud, CEO of French market leader Betclic and President of AFJEL, spoke at the same conference and issued a stark warning over the threat of the black market. Béraud emphasised that regulators should be very aware of just how accessible the black market is to players.

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The regulation of online gambling is always complicated by nationallyowned gaming monopolies and France is one of those jurisdictions that has largely put off grasping the nettle until now.

While there has been some progress towards the introduction of iCasino laws, that now feels in flux for 2025 as those against liberalisation have started to find their voice again. But it seems the twin pincer movements of product restriction and higher taxes are in danger of squeezing the regulated industry, to the benefit of the unregulated operators.

At the recent AFJEL annual conference, the boss of the gambling regulator the Autorité Nationale des Jeux (ANJ) Isabelle Falque-Pierottin questioned the impact of adding ‘addictive’ products to a market with 1.4m problem gamblers.

However, the French market should be cautious to understand the lessons of its European counterparts: to the most vulnerable, these verticals are going to be available through the black market and regulation is a vital

As is usually the case for gambling regulation, the priority tends to be Government revenues rather than player protection and it seems to be true for an embattled French government that is looking to build wider economic growth.

Tax rates that were already some of the highest in the country have now been elevated. The proposals have Lottery GGR set to be taxed at 10 per cent, all retail sports bets at 10 per cent from 7 per cent and online bets at 15 per cent from 10.5 per cent. Meanwhile, there were spikes for French casinos and online operators already paying GGR taxes of around 55 per cent and the new measures would push the taxes to close to 60 per cent.

The French Government regardless of who is Prime Minister - may soon find you can squeeze the pips only so much.

There’s a similar sentiment of disruption and debate in the Netherlands, where the 2025 budget presented more tax rises for the industry. The Dutch government’s Ministry of Finance stated that it will initially increase gambling tax from 30.5 per cent to 34.2 per cent in 2025, before increasing again to the final figure of 37.8 per cent in 2026.

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Unsurprisingly it caused significant backlash from industry trade bodies, with a joint statement outlining that it could “lead to a further depletion of the regulated supply. Tax revenues will fall as a result. At the same time, an increase in illegal and therefore riskier gambling is to be expected”.

The group added: “This is to the detriment of the general policy objectives of the Dutch gambling policy, which specifically focus on consumer protection and the prevention of fraud, crime and gambling addiction. If this is abandoned, social costs will increase and therefore mean additional financial setbacks.”

The black market might be characterised as the Bogeyman - a fictional monster for governments to be scared about. But the difference is, the black market does exist and is actually easily accessible for any politician who does the most perfunctory research rather than perceiving the industry through the lens of a budget spreadsheet.

But as we see all too often, it’s much easier to just hike tax rates. Hopefully 2025 will break that trend.

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The arms race between Evolution Gaming and Playtech has pushed the live casino experience in all sorts of interesting directions, from a plethora of game shows to games broadcast live from land-based casinos around the world. But some are demanding even more from their live casino suppliers

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progressive jackpots, which have found such success in slots, and elevate live casino to a new level.

perators with an established land-based presence get very excited about the opportunity to work with a product that looks very much like something they have offered their retail customers for generations.

Furthermore, the advent of game shows has been a revelation in opening up a new demographic that perhaps would not have visited an online gambling site.

While he admits live casino is “a solid and essential part of any iGaming business”, he believes it hasn’t truly adapted to the fast-paced mobile environment.

Among the vast amount of content available in the casino lobby, it can be difficult to distinguish one live casino game from another. Slots are far more easily differentiated. Even amid a sea of titles, players can see the games or themes that they enjoy.

But not everyone is thrilled by the innovation in the sector.

One of the challenges for live casino operators and suppliers is the evolving landscape that it operates in. It has not completely adapted to the increasing number of players solely engaging on a mobile screen.

“What we need to do as operators is use all of the data we have on players to suggest that one tap to enter a table, ending this convoluted journey that is currently in place. We also need to factor in speed per round. Players are used to playing slots and now fast games like crash in a matter of seconds, whereas live dealer is far longer per round and we are constantly looking at how to speed it up.

MGM Resorts CEO Bill Hornbuckle is often heard at investor meetings declaring his excitement about live casino. The possibilities of the omnichannel product – broadcast live from Vegas! – give him a unique selling point over his dominant rivals DraftKings and FanDuel.

“Shaving off milliseconds to make games more entertaining is a massive focus for suppliers and I’m very excited to see the newest and next developments from the live dealer space.”

However, the Vice President of Gaming at BetMGM, Oliver Bartlett, wants more from his live casino products. He wants to see the live casino vertical tap into

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Shaving off milliseconds to make games more entertaining is a massive focus for suppliers

TAKING IT EASY Underpinning just how impactful the changing environment has been for the space, Bartlett states that when players were on desktop they could look away and do other things in between rounds, whereas when they are on their phones, they simply have to be engaged in the screen for the full round – making it challenging to retain their attention.

Wolfgang Bliem, CEO of Grand Casino Luzern, offers a slightly different perspective when it comes to how essential speed of play is. He says that his team has had great success with a slower round version of roulette, which players can engage with at the table and online. He says that this creates an element of community that negates any negative impact felt by the slight slowness of round speed.

Kwiff CEO Charles Lee believes there is room for both slow and faster experiences to exist and thrive alongside each other.

He cites the media world as an example of how these two types of experiences can exist and both tap into different audiences, with YouTube shorts maintaining popularity alongside long form podcasts.

Among modern players however, there is a wilting desire for the slow grind that is synonymous with live casino games like blackjack.

Understanding player trends and adapting sharply is what can give operators the edge, according to Lee, who says that a key responsibility should fall on the operators when it comes to player understanding.

“You can’t just rely on a studio or provider personalising the

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approach and using technologies like AI to understand the player preferences, which can also be a key ingredient to boost the avenue to cross-sell from different verticals,” according to Lee. Margins is another factor that will change as regulatory frameworks and rates differ, it is imperative that operators adapt if they are to continue running a profitable business.

Bartlett says slots will always be enticing for players searching for wide odds, especially a younger generation. However, the “lightningification” of the live casino sector can be a crucial element of bridging the gap between the new generation of player and the live casino vertical.

Looking ahead he offered the prediction that wherever there is a product, there will be an opportunity to play it with a multiplier.

USHERING IN A NEW ERA Potentially ushering a new era for live casino innovation and strengthening the ability of live casino to thrive where instant gratification is integral, is the growth of gameshow engagement among a full spectrum of players.

Bartlett states his belief that at this current time gameshows are of the utmost importance when it comes to a live casino portfolio. He cites the impact of Evolution’s Crazy Time on BetMGM’s business.

“For us, in the US specifically, game shows are massively important – not necessarily because of the intrinsic revenue they provide but because of the number of players that they bring to the platform.

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higher than an RNG – as a supplier you really need to be sure that you are going to get it right. Big risks – but huge rewards if you can get it right.”

Since Crazy Time has come to the US six-to-eight months ago in certain states, 50 per cent of players convert into [other] live dealer [games] via Crazy Time - it is simply huge.

Lee adds that by having a multitude of games and bonuses within each game show title, they become incredibly engaging to players – eventually leading to increased play times as players hang on to ensure they experience every element of the game show.

“Players that have never played before come into that and then as a result of the lobby, they go onto other live dealer games. It is absolutely essential.

It’s really easy to learn and there is a low barrier to entry, low minimum bet, and very high entertainment value.

One of the key factors that dictates session time, according to Lee, is a charismatic presenter who interacts with the chat and embodies what it is to be in a live casino environment.

“If you Google ‘live dealer streams’, a massive percentage of them are big wins on Crazy Time - I’m very excited to see where this vertical goes next,” Bartlett concludes.

The excitement around live casino is real. The next stage is finessing it to align with evolving player trends. The future looks insanely bright – if the perfect formula can be found to balance speed with visibility, and most of all, with entertainment.

“The only downside is that being a live dealer and being that everything is built, it genuinely costs millions of dollars to build these things so the risk of something not working is so much

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A DEDICATION TO

CONNECTION As 2024 draws to a close, Hub88 reflects on two months of intense development that have led to the launch of the supplier’s self-service portal HubConnect, which is designed to link casino operators, game providers and business vendors in the Hub88 Marketplace

Words by CALLUM HAYDEN

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suppliers like never before. Through the Supplier Zone, partners gain access to performance metrics, including country-specific data on turnover, active users and average stakes. This data-driven approach allows suppliers to refine their strategies in real time.

raditionally, aggregation platforms have focused on simplifying connections between online casinos and gaming suppliers via a single API. Hub88, however, set its sights higher, envisioning a complete overhaul of the process to create value for both suppliers and operators.

Launched at the SBC Summit in Lisbon, HubConnect represents a leap forward, combining advanced operator and supplier tools designed to streamline operations, deliver realtime performance insights, and foster collaboration.

Additionally, the Supplier Zone offers streamlined communication channels, connecting suppliers directly with Hub88’s network of live operator partners. This enables smooth collaboration on new game launches, promotions, and strategic initiatives.

A detailed procedures index further supports suppliers, covering everything from go-live protocols to marketing best practices.

The standout feature of HubConnect is its Supplier Zone – a comprehensive suite of tools designed to empower

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From slot games and table classics to immersive live dealer experiences, Hub88’s API empowers operators to curate a game portfolio tailored to their audience’s preferences. This streamlined approach has positioned Hub88 as a go-to partner for many in the iGaming industry.

By centralising these resources, Hub88 eliminates the complexities of managing multiple relationships and processes, allowing suppliers to focus on growth and innovation.

OUR VISION FOR THE FUTURE OF IGAMING

One of the key advantages of Hub88’s API is its user- and developer-friendly design, ensuring seamless integration with existing systems. Additionally, the API’s real-time data and reporting tools provide operators with the insights needed to monitor player behavior, assess game performance, and refine their offerings to maximise engagement and revenue.

Hub88 is already setting its sights on 2025 with ambitious plans to enhance its platform, particularly through the introduction of groundbreaking features within HubConnect. Among these developments, the highly anticipated rollout of benchmarking tools promises to be a game-changer for its partners.

Such tools will empower operators to measure their performance against industry competitors, offering critical insights into market positioning. This analytical edge will enable partners to make data-driven decisions, optimise their strategies and sharpen their competitive edge in an increasingly dynamic market.

The integration of HubConnect has elevated these capabilities even further. Enhanced reporting tools now give operators deeper insights into player trends and game performance, helping them make more informed, data-driven decisions. With these advanced tools, operators can adapt swiftly to changing market dynamics and player preferences, ensuring a competitive edge.

While Hub88 pushes the boundaries of technological innovation, the company remains deeply committed to delivering reliable, high-quality service. It understands that even as cutting-edge solutions drive growth, consistency in day-to-day operations is equally vital to success.

OUR MISSION TO DRIVE PARTNER GROWTH Hub88’s overarching mission is to simplify the operational complexities faced by online casino operators. By aggregating multiple gaming suppliers into a single, cohesive platform, Hub88 enables its partners to focus on delivering engaging and dynamic gaming experiences.

SIMPLIFYING INTEGRATION WITH A SINGLE API At the heart of Hub88’s platform lies its ability to simplify the complexities of integration for online casinos.

Traditionally, managing multiple APIs to access a wide range of games and services has been a logistical challenge for operators. Hub88’s solution? A single, unified API that connects operators to an expansive library of gaming options.

The launch of HubConnect and the Supplier Zone exemplify this commitment to innovation and support. These tools are designed to empower partners with the resources they need to thrive in an increasingly competitive industry.

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Hub88’s overarching mission is to simplify the operational complexities faced by online casino operators.

Hub88’s dedication to its partners goes beyond technology—it’s about creating an ecosystem where operators can grow and succeed

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THE IMPORTANCE OF BENCHMARKING TOOLS

But Hub88’s journey doesn’t end here. The company is continually looking to expand its offerings, staying ahead of industry trends to meet the evolving needs of its partners.

As iGaming becomes increasingly competitive, the ability to benchmark performance is critical for success. Hub88’s upcoming benchmarking tools will enable partners to compare their metrics against industry standards and competitors, offering a clear picture of where they stand in the market. These insights are invaluable for identifying strengths, uncovering areas for improvement, and crafting targeted strategies for growth. For example, partners can analyze game popularity, player retention rates, or revenue trends in comparison to competitors, allowing them to adjust their offerings and marketing strategies accordingly.

Future innovations include features like HubWallet, which simplifies payment processes, and HubMarket, a platform designed to facilitate targeted promotions.

Together, these tools form a comprehensive strategy to support partners at every stage of their operational journey, from seamless integration to efficient payment processing and effective marketing.

Hub88’s dedication to its partners goes beyond technology—it’s about creating an ecosystem where operators can grow and succeed. The platform’s user-centric design, combined with its commitment to excellence, makes Hub88 a reliable partner in the ever-evolving world of

By putting actionable data in the hands of its partners, Hub88 ensures they are equipped to make informed decisions that drive performance and profitability.

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LEAN ON

LYNON With a SaaS-oriented philosophy and approach, the all-new Lynon team lays down fresh ground for institutional and inclusive B2B iGaming solutions.

Here, we get a front row seat at the management team’s first meeting for a bit of blue sky thinking

Suren Vardanyan, CBO

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n the Spring of 2024, during the embryonic phase of the company’s formation, a group of former C-level executives had the longest, but most momentous conversation that led to the birth of Lynon.

Vardanyan takes the wheel: “Very often products lack long-term scalability, because the vision and the structural design they have doesn’t go hand in hand with the emerging advancements of the market… They start to sell little drops of their whole potential.”

Focusing all their expertise in iGaming, SaaSdevelopment, marketing and product design, they came up with the idea of the “perfect one-window iGaming platform” to take the iGaming B2B experience to another level of institutional solutions and approaches.

“It creates challenges for the sales and business development teams,” agrees CMO Davtyan. “I’ve seen that a lot!”

The future Chief Business Officer Suren Vardanyan is sitting with his colleagues, sipping coffee, cracking a few smiles between long pauses of inspiration and overthought, when Chief Marketing Officer Edgar Davtyan finally says half-smiling, half-anxious: “It’s all about the expertise. It’s the first push to the idea! We need to combine it all.”

“You need a product, man – a unique one,” says Vardanyan “One that’ll have it all there – ready to go, ready to operate. You can’t rely on short-term sales.”

“That’s where you focus all you’ve got. I mean… iGaming is broad… There are plenty of solutions. The tech is growing faster than ever. But I have this feeling that the solution choice is kind of chaotic in iGaming. A lot of the gems are not involved or focused in B2B,” adds the CMO. The expertise is understanding what needs to be solved, and if there’s anything to solve at all. This coffee-table overview of the industry, of its potential and of what it lacks at companies of all sizes, plays the key role in the new SaaS-oriented mindset formation among the chiefs.

“Yeah, it goes like problem-solution, problem-solution, problem-solution, on and on, until you realize you built a pharmacy that sells painkillers. Too separated for a functional ecosystem,” adds CBO Vardanyan.

“Exactly! Especially in iGaming,” continues the CMO. “And that is why in such cases the only hope for success becomes the sales and not the product; but when the design of the product is self-sufficient and self-enhancing in its core, and is based on institutional solutions, it works differently. In other words, if we involve and concentrate on the latest technologies, in the long-term our product will start to sell itself.

“That’s why we’re focusing on the product’s advancement in the first place, rather than its sales strategies. It all sounds good!” continues Davtyan. “But how do you make it work? Technically, I mean.”

The nature of this conversation almost answers this last question. If the former chiefs managed to gather and combine their experiences to form a collective expertise, it proves that any self-sufficient and selfsupplying system can be built by collection and connection of useful components to each other. The CBO sits back, finishes the coffee and says: “Lean on me, man!”

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IT ALL BEGINS WITH SAAS Lynon comes along with an interesting statement that SaaS is SaaS, where the Software as a Service is Lynon’s solution as their story – the point where it all begins. And that point is the best of the practices based on collective expertise. Lynon’s inclusive iGaming platform is the output of a simple and basic need, an organic process, that we notice both in nature and the human-made world.

Any set of functional actors behave and operate better in one adaptive environment, where they can grow together easier, with less resources spent.

With the evolution of SaaS solutions, both in B2C and B2B, there is less and less need to communicate with the product’s developers and builders, in order to be successful.

“Operators more and more strive for SaaSoriented solutions that solve and provide for multiple components of their business, constantly involving the latest tech achievements,” says CMO Davtyan.

Even in the case of huge iGaming corporations that are self-sufficient, a lot of development and improvement processes are carried out only when the problems occur, rather than in well-built and structured environments with institutional solutions at their core – solutions that work preventively and provide sustainable maintenance in the long-term.

“We help operators build their iGaming environment in minutes, manage all its components with one login, enjoy uninterrupted maintenance due to modular architecture, and integrate a lot of functionalities through a flexible reverse API integration solution called Versa,” says CBO Vardanyan.

So what? So everything leans on everything!

The simplest philosophy of mutual care defines all that works and succeeds. Bricks lean on each other, walls do the same to form the house, and people lean on one another with their experiences, giving birth to our greatest achievements.

“We lean on each other bringing our expertise of iGaming and SaaS,” concludes Vardanyan, “so that operators can lean on us – Lynon.”

Edgar Davtyan, CMO

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HOW TO BUILD AN iGAMING PLATFORM SB Software Chief Product Officer WIKTOR GARCZYŃSKI talks us through the construction and launch of the company’s new casino platform

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B Software is set to launch its new online casino platform - what can you tell us about the technology you are launching and what sets it apart from the crowd?

What truly sets our platform apart is its high level of customisation through specialised modules that can be individually enabled based on operator requirements. For example, our Social Gaming module introduces a multiplayer aspect to casino gameplay, enhancing player engagement and retention, while the Advanced CRM module includes builtin messaging tools, smart segmentation features, and detailed reporting to streamline player management.

Our new online casino solution consists of two key elements: SB Casino Platform and SB Experience, our advanced frontend solution offered in a SaaS model. SB Experience gathers all the best practices we’ve learned throughout the years from our operational expertise, resulting in a front-end that is well thought out, easy to use, intuitive, highly aesthetic, and optimised for engagement. It provides a solid, ready-made foundation that enables less experienced brands and start-ups to kick-start their business without the need to go through the trial and error process of front-end development. From day one, they benefit from a proven, high-performing, and visually appealing solution.

We’ve also leveraged our 13 years of experience building and refining our sportsbook platform to rethink and optimise the casino solution. Importantly, the new casino platform is seamlessly integrated with our sportsbook platform, offering significant benefits to brands that provide both products. Operators can deliver a unified player experience, including shared loyalty programs, crossproduct promotions, and a single wallet solution, driving higher engagement and operational efficiency.

At the same time, our platform is fully open and flexible — clients can integrate their own front-end or collaborate with us to create a customised solution tailored to their brand’s identity and unique needs.

Additionally, we’ve introduced smart context automation features to minimise day-to-day operational burdens.

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We aim to uncover innovations that no one has thought about yet—solutions that address both operator and player needs in new, meaningful ways 65

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Our strategy is data-informed and includes detailed competitor analysis to identify gaps and ensure our platform is both competitive and future-ready

and insights throughout the development process. Their comments and expectations have played a crucial role in shaping our new platform to ensure it includes everything they wish to have — from essential features to advanced tools that optimise operations and enhance player engagement.

Operators can easily reuse previously configured settings for offers, use realtime data to dynamically adjust campaign settings, organise game lobbies, and promote trending games for individual markets—all with almost one click. These features significantly reduce manual effort, allowing operators to focus on strategy, growth, and enhancing the player experience.

We are already in the final stages of negotiations with some customers who are eager to adopt our solution. While I can’t share more details just yet, I look forward to providing further updates as we move closer to launch.

This integrated, modular, and operationally efficient approach ensures our clients benefit from a scalable, customizable solution that combines the best of SB Software’s proven sportsbook and casino expertise while delivering a seamless and engaging experience for players.

What is your strategic approach to product development like and how do you build out a roadmap for such a big new launch?

What markets will you be launching the platform in and what has the reaction from your prospective customers been?

On the surface, we follow a standard yet proven approach to product development.

This includes an agile methodology that allows us to remain flexible and adapt quickly, while balancing short-term goals — such as essential features for market launch — and long-term objectives like scaling the product and introducing innovative tools. Our strategy is datainformed and includes detailed competitor analysis to identify gaps and ensure our platform is both competitive and future-ready. Importantly, we’re not starting from scratch—we have years of operational experience and already have a casino customer in our portfolio, which has given us valuable insights into what works and what needs improvement.

Initially, we will be focusing on the European and African markets, where we already have a strong presence and extensive experience through our sportsbook platform. That said, we are not closing our eyes to other opportunities, such as Latin America, which continues to show tremendous growth potential.

Our platform has been built with global scalability in mind, and it is easily adjustable to meet regulatory requirements across various jurisdictions.

This flexibility ensures operators can confidently expand into new markets while staying compliant with local laws and regulations.

What I personally bring into the process is a design thinking approach. We take a deep dive into the product with a holistic perspective, focusing not only on meeting

We are actively in touch with both our current customers and prospective clients, carefully gathering their feedback

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current industry standards but also trying to anticipate where the market will be in a year or two. More importantly, we aim to uncover innovations that no one has thought about yet—solutions that address both operator and player needs in new, meaningful ways. By building these innovations into our platform, we ensure the product feels complete, competitive, and ahead of the curve.

This blend of structured methodology, industry insights, and a forward-thinking, designled approach allows us to create a roadmap that is grounded in real customer needs and emerging trends, while also pushing boundaries to deliver a truly standout product.

What are the key technical considerations one must make when building out an online casino platform from a product perspective? Are there any must-have features?

an extra layer of excitement and thrill to the experience.

Another must-have is personalisation, particularly in the form of AI-driven game recommendations. These tools help players explore the game portfolio more easily, delivering a more satisfying and tailored gaming experience.

Finally, a well-designed user interface is crucial. The UI should be fast, intuitive, and supportive, reducing cognitive load and making it a pleasure to use. By focusing on speed, simplicity, and clarity, the platform can ensure players navigate effortlessly while operators benefit from higher satisfaction and retention.

SB Software is well known as a provider of sports betting tech but how will you translate this strong reputation into the online casino sphere?

From a technical perspective, the most critical considerations are performance, security, scalability, modularity, and regulatory compliance. A successful platform must handle high traffic volumes seamlessly, ensure data protection, adapt to growing demands, and meet diverse market requirements while providing operators the flexibility to enable or disable specific features.

Our strong reputation in the sports betting industry comes from a bespoke attitude that has allowed us to tailor our solutions to the specific needs of our clients, helping them grow significantly over the last 13 years. This client-centric approach, combined with our focus on reliability, innovation, and measurable results, forms the foundation for our entry into the online casino sector.

When it comes to must-have features, the focus is on delivering a thrilling, entertaining experience that builds loyalty and keeps players engaged. Gamification tools like missions, achievements, and leaderboards are essential to encourage interaction and retention. A robust loyalty system, especially one with a loyalty currency that players can spend on prizes of their choice, significantly boosts engagement.

Personally, I’m also a fan of loyalty lotteries, where players can unlock mystery prizes, adding

We are leveraging our vast operational expertise and proven technology to deliver a seamlessly integrated solution.

Our new casino platform works hand-in-hand with our sportsbook offering, providing operators with a unified ecosystem that includes cross-product promotions, shared loyalty systems, and a single wallet solution. This integration ensures a smooth player experience, where users can easily switch between sportsbook and casino, increasing overall engagement and lifetime value.

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We understand the intricacies of high-volume, real-time operations, platform stability, and player retention strategies— skills that translate directly into building a robust and engaging casino platform. By combining our commitment to innovation with insights gained from 13 years in the sportsbook industry, we are confident in delivering a competitive, flexible, and future-proof casino solution that empowers operators and excites players.

Are there any more product developments that SB Software has on the horizon that our readers can take note of going into 2025?

After we launch our new online casino platform, our focus will shift to developing more smart features, many of which I’ve hinted at during our conversation.

These innovations will be grouped under the code name SB Intelligence.

We are actively exploring new solutions in data analytics and AI to further boost the performance of our platform operators. Our goal is simple: to make their work easier while empowering them to make data-informed decisions that drive growth. Whether it’s advanced realtime reporting, AI-driven insights for player behavior, or automation tools that optimise campaigns and operations, SB Intelligence will represent a new level of operational efficiency and performance enhancement for both casino and sportsbook operators.

We’re excited about the potential of these features to not only streamline workflows but also to unlock new opportunities for engagement, personalisation, and revenue growth for our partners.

This is part of our long-term commitment to staying ahead of industry trends, providing value to operators, and improving the player experience.

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Feature: LeoVegas, Kindred and more debate identity scheme 68

PAYMENTS

ALL EYES ON EU For better or worse, a huge array of regulatory changes are sweeping across Europe and there are plenty in the field of payments, writes Payment Expert Editor TED ORME-CLAYE

AI too is an area that the EU is seeking to regulate, most significantly with the passage of its AI Act last year.

In a similar fashion to AML regulations, the legislation established an EU AI Office, but for the betting industry, Europe’s new AI regulations leave a lot to be considered.

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Looking at last year’s developments in the European Union, a significant regulatory package was introduced around anti-money laundering. This included the creation of a dedicated EU AML regulatory unit with supervisory powers over financial institutions and the ability to intervene in cross-border cases.

This development was welcomed by the European Gaming and Betting Association (EGBA) at the time, and for good reason. AML is a tricky discipline for betting operators, and the myriad of different stakeholders involved in this side of the industry – banks, payments providers, fintechs and consumers themselves – means a single regulatory body supervising the entire process could be beneficial if it is done right.

Separately though, the tricky task of AML can often be improved with technological advancements. Increasingly, the discussion has revolved around how Artificial Intelligence can be leveraged by operator payments and compliance teams to detect cases of either AML or problem gambling.

Rules around the use of AI for biometric identification and categorisation, as well as the development of real-time and remote biometric ID systems like facial recognition, may mean operators need to tread carefully when implementing certain solutions.

“In the EU we are supposed to have harmonisation on the topic, but this is far from the truth,” said Piotr Lisak, MLRO and AML Governance Officer at Kindred, at the Payment Expert Summit last autumn.

It is important to note that solutions will be developed in the tech and fintech sectors, likely according to the EU’s rules, before the betting sector starts to use them. Nonetheless, keeping EU regulations in mind is always valuable to avoid any legal setbacks.

Moving on, arguably the biggest regulation regarding payments in the EU to recently come into effect is MiCA - the Markets in Crypto-Assets Regulation. The regulation entered into force in 2023 but did not fully come into effect until December 2024, and establishes a regulatory framework for all crypto-assets

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that are not covered under existing financial regulations.

This is not an endorsement or legalisation of crypto as a payment method for gambling, which remains either a grey area or outright illegal across countless regulated jurisdictions.

What it could do is enhance crypto’s standing as a potential mainstream payments method.

For operators involved in crypto, MiCA will be extremely important.

Unfortunately, this does not mean the various ethical, technological and regulatory concerns around crypto’s use for payments – and particularly its use for gambling payments – are any closer to being solved.

For betting, regulatory developments are among the most important changes to monitor. Stakeholders need to ensure that their vision is cast wider than just gambling-specific regulation, however, as the EU’s various financial regulations demonstrate changes in other sectors can have knock-on effects, whether positive or negative.

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IDENTITY POLITICS Payment Expert editor Ted Orme-Claye hears from JAMES ELLIOTT of LeoVegas and CHARLOTTA SHELBOURG of Kindred Group on the impact on the gambling industry of the European Union’s new Digital ID framework

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onstant regulatory changes and pressure mean that identity verification is one of the betting industry’s most important compliance considerations, although it is not always the most visible or widely recognised one.

UK - one of the world’s largest and most valuable gambling markets - also examining it. The Labour government launched legislation around financial services, of which digital ID was a core part, shortly after its election victory last summer.

Failure to adequately identify customer ID can lead to serious ramifications for operators, including fraud, money laundering and underage gambling.

Digital identity, an emerging innovation in the financial services sector, could offer some respite to this.

As and when these digital ID projects come to fruition, there could be a myriad of benefits for operators. The most obvious examples are fraud prevention and anti-money laundering (AML), but the advantages go beyond this.

“From a safer gambling perspective, particularly in my UK background I’ve worked with people self-excluding and then effectively trying to circumvent that self-exclusion,” said James Elliott, Director of Legal at LeoVegas Group, at the debut Payment Expert Summit in Lisbon.

Elliott pointed to bonus abuse prevention as another potential benefit to the industry. Conversely, knowing exactly who a customer is also enables operators to build a better understanding of that person, and what products and content resonate most with them.

“In certain jurisdictions, it’s not a problem because there’s individual user ID and you definitely know who you’re dealing with at that point, but in some other jurisdictions, it’s more problematic.

“It’s that element of authentication and trust that you’re building up with that customer,” Elliot summarised his view on digital ID, noting that operators can get “much more focus from knowing who that person is”.

“From our perspective, there are benefits in knowing that the player you have is that player, and not someone else.”

A key hurdle on the digital ID journey however is an age-old question – will customers actually want to use it? The UK’s first attempts at legislating around identity requirements occurred under Sir Tony Blair during the 2000s, but these plans were ultimately scrapped over privacy concerns.

Elliott’s comments in Lisbon came in the context of a discussion about the European Union’s (EU) framework to create a unified Digital ID for EU citizens by 2030. Ostensibly, the ID will be used for travel, but its usability can, be extended to gambling.

That same level of trust that operators can build with customers via digital ID must first be gained to persuade those same customers to actually use the technology.

There is also an element of a waiting game, with operators sitting behind financial institutions and fintech when it comes to development and adoption.

BEATING BONUS ABUSE AND MORE The EU is not the only jurisdiction pursuing digital ID projects, with the

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Once people become used to using their digital ID and their digital wallet as the way of interacting online, it’ll become normal “It will be different between different demographics and different segments and, of course,it would also depend on who else is adopting these systems,” said Charlotta Shelbourg, Director of Product at Kindred Group.

“Are we seeing the state-owned banks or institutions adopting these digital IDs? They would roll out quite easily across the population, but if it’s just gambling companies or smaller fintechs, it will take a lot longer to actually get the penetration we need to make it a very useful system.”

LESSONS FROM FINANCE Payment Expert has collected insights into digital ID development numerous times from the financial services space. As noted above, it is this sector which is at the forefront of digital ID development.

At a finance event earlier in 2024, the likes of Lloyds Banking Group and UK Finance, respectively one of the UK’s leading banks and its finance industry trade body, both emphasised the importance of winning customer trust for digital ID to work.

vocal in welcoming digital ID developments at the EU level earlier in 2024, praising the initiative as enhancing security, trust and cost efficiency for gaming operators.

Once the solutions and frameworks become more visible, the big question will be whether gaming customers will actually make use of digital ID. As Kindred’s Shelbourg observed, the uptick will most likely be more noticeable in certain demographics, most likely younger, more tech-savvy ones.

Like all forms of technology, particularly payments technology, digital ID is a waiting game.

Operators not only have to wait for financial regulators, institutions and tech firms to get digital ID right, but they will also have to wait for customers to become accustomed to this new form of verification, whilst working to build that important trust-based relationship.

“I think once people become used to using their digital ID and their digital wallet as the way of interacting online, it’ll become normal,” said Elliott.

KYC, anti-fraud and AML, and wider payments teams in the betting sector should be paying close attention to developments in financial services, at least those who have expressed an interest in digital ID.

“They won’t be having to hunt around their phones for a recent copy of a utility bill and I think it will become second nature, and particularly with the ability to lock all your data into a particular wallet and then say ‘okay, this is what I want this person to be able to see, that’s what I want them to be able to see’.

Luckily, this is already the case.

The European Gaming and Betting Association (EGBA) was notably

“It’ll become second nature to become very convenient and userfriendly for the consumer.”

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Feature: Marketing Campaigns of the Year 2024 Interview: Alanbase Chief Product Officer Artur Yulbarisov

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AFFILIATE APOCALYPSE To say that 2024 has been a tough year for affiliates would be an understatement, writes Affiliate Leaders Editor CHARLIE HORNER

losses have plagued the industry in the last few months. First it was Catena Media, which laid off around 10 per cent of its workforce. Then, Better Collective announced around 300 job losses.

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fter the impact of core updates to Google’s algorithm in the early stages of the year forced affiliates to upend SEO strategies, the sector has now reached a rocky financial period.

Catena Media’s Q3 revenue dipped by a third year-over-year, while income from North America - a region which comprises 89 per cent of its total revenue - dropped by 29 per cent. Meanwhile, Better Collective downgraded its 2024 financial forecasts owing to worse-than-expected market conditions in North America.

The North American market is not the goldmine expected when online casinos launched in New Jersey almost 12 years ago and PASPA was repealed in 2018.

Despite a rush of states launching online sports betting between 2019-2022, most launches were off the back of the pandemic, which left states cash-strapped.

CPAs are also down, with Rush Street Interactive CEO Richard Schwartz outlining cost reduction of 33 per cent. Meanwhile, job

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A steady diet of M&A tends to lead to bloated and inefficient corporate structures

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CEO Jesper Søgaard took to LinkedIn to explain the decision, writing: “The decision was not made lightly, but prompted by lower than expected performance, in particular due to shifts in the US market as well as a continued slowdown in commercial activities in Brazil in anticipation of the upcoming regulations – markets that in recent years have been growth drivers for BC and which we still believe have strong long-term growth potentials ahead.”

Meanwhile, Manuel Stan, Søgaard’s counterpart at Catena, cited similar issues: “We have responded to market challenges by shifting resources away from loss-making products and into those that we believe have the best potential to generate long-term value.”

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Chris Grove, Partner Emeritus at Eilers & Krejcik Gaming, says that, to a certain extent, these layoffs were inevitable as the market resizes following the US downturn.

But he notes that the structures of some of the bigger affiliates are hampering long-term fortunes.

“The layoffs would have been less severe if the companies were private,” says Grove. “That’s not the only issue; a steady diet of M&A tends to lead to bloated and inefficient corporate structures, shifts in Google have upended margins, and the US opportunity evolved in a way that was uniquely negative for affiliate companies.

Some resizing was inevitable. But probably not to the degree we’ve seen in recent months.”

Offering advice for affiliates navigating through choppy waters, Grove concludes: “Go private and commit to investing in long-term strategies. Invest in building brands. Invest in asymmetrical content strategies.

Invest meaningfully in emerging products. Forget about M&A for now unless you have no other way to survive.”

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MARKETING CAMPAIGNS OF THE YEAR

And the winners are… Novibet, bet365 and Betsson – three very different marketing campaigns that demonstrated why betting brands put fans first Words by CALLUM WILLIAMS

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sports team’s fanbase and community, and to build and grow that relationship.

espite the ongoing crusade of antigambling campaigners against the perceived danger of advertising and perhaps because of the huge amount of competition – the two things are linked, of course – the need to differentiate your adverts was never more important than it is now.

The winners of SBC Leaders’ Campaigns of the Year highlight the work of three marketing teams that understood their audiences and their sports by leveraging some of the unique cultural qualities that embody those sports.

Sponsorship remains an important tool – building trust as much as building the brand.

Betano, for example, has had great success in Latin America, moving to market leadership positions in countries such as Argentina and Brazil, where it sponsors the Campeonato Brasileiro Série A and many of its clubs.

WINNING IN GREECE WITH FREED FROM DESIRE Online betting operator Novibet won the SBC Award for Marketing Campaign of the Year for its “I Want Novibet” campaign, which targeted the Greek market, focusing on fans’ passion for football.

Meanwhile, betting firms in England latched onto another year of Premier League sponsorship before the impending front-ofshirt sponsorship ban comes into effect at the end of the 2025/26 season. Although it must be noted that at least half of these are offshore or crypto operators using a relatively unused (ar at least, unmarketed) UK White Label to gain access to the shirt front in order to advertise its crypto or overseas audience.

What Novibet expertly analysed was the association of the 1997 song ‘Freed From Desire’

by Gala and how it would often be used as a template for a song for football fans in Greece to chant to.

Understanding the cultural importance of the song, not just in Greece but across Europe, enabled Novibet to gain a closer connection to Greek football fans through the association of the song and garnered it considerable attention.

But having a brand adorn a sports team’s jersey is only part of the equation when cultivating an association and familiarity with a betting operator and its partnering team.

Novibet Director of Marketing Communications, Elena Barba, tells us what went into building the ‘I want Novibet’ marketing campaign and why the choice of music proved to be a key building block to grow closer to its customers.

Advertising has thus taken an increasingly integral role in being able to launch fan engagement campaigns, to grow closer to a

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eliminate any doubt in the audience about which brand is being advertised.

“Music has a significant impact on the human brain,” explains Barba, “and when information is combined with an emotional experience, it becomes even more memorable.”

“In our campaign, we successfully achieved this by incorporating the central verse of the song ‘Novibet Thelo’, putting our brand on the lips of the audience. This strategy not only enhances brand recall but also encourages our audience to sing along with us!

“We tend to associate songs with important or emotional moments in our lives. With this in mind, we’ve linked a song that has become iconic in football history: ‘Freed from Desire’, which is widely used in football highlights,” continues Barba. “Our goal is to create communications that authentically and powerfully convey our brand through compelling storytelling and strong creative elements like music. Brand recall is crucial in all our communications, as we aim to

“With our Sportsbook Marketing campaign, ‘Novibet Thelo’, also known as ‘Novibet I Want’, we didn’t simply advertise another betting brand; we created an entertaining experience that began with watching the ad.”

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Music has a significant impact on the human brain and when information is combined with an emotional experience, it becomes even more memorable Elena Barba, Novibet

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BET365 CREATES FRIDGE MAN Understanding football culture is vital when it comes to catching fans’ attention, but also in attracting fans to a betting operators’ brand.

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We needed a creative execution to showcase incredible sporting moments happening all around the world, and what better way to do it than with our very own news channel?

Kevin Lynn, Drummond Central, bet365

Irish bookmaker Paddy Power is renowned for this tactic, but it was bet365’s ‘Breaking News’ campaign last August that brought a chuckle from its UK audience with the introduction of ‘Fridge Man’.

The marketing campaign saw a man with a fridge attached to his back as he attempts to win a marathon, with a live news show feed checking in and out to check his progress while also highlighting ‘unordinary’ moments from different sports, such as a tennis shot from the crowd and a spectacular crash during a motorsport race.

While ‘Fridge Man’ did not win his race, falling flat on his face towards the finish line, bet365 showed that sports fans live

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for spectacular moments and its team understood that sports fans, while enjoying the humorous side of sports, live for spectacular moments. bert365’s creative agency partner of the ‘Breaking News’ marketing campaign, Drummond Central, stated at the time that it was looking to achieve the ‘never ordinary’ nature of sports and its betting partner.

Drummond Central Creative Director Kevin Lynn says: “Part of the brief for this year’s campaign was simple, make it a blockbuster, and that’s what we did. We needed a creative execution to showcase incredible sporting moments happening all around the world, and what better way to do it than with our very own news channel?

“Wild moment after wild moment brought to you as they happen, which perfectly encapsulates that whatever the moment, it’s ‘never ordinary’ at bet365.”

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BETSSON AND BOCA JUNIORS’ ‘FANSORSHIP’

of football’s most passionate fanbases, it endeared itself to the club and its fans, which more often than not, will resonate with fans as they will view the betting operators commitment to the club as theirs.

While it is important for betting operators to have a presence on a global scale, Betsson Group’s short but productive relationship with Argentine football club Boca Juniors exemplifies why operators should focus on understanding the fanbase they are catering to, and they have done so in droves.

Betsson described this marketing strategy as ‘fansorship’, primarily dedicating its sponsorship and marketing towards the fans of the club in order to cultivate a strong relationship with not just an entity, but people.

Betsson’s ‘fansorship’ initiative with Boca has seen it deliver multiple marketing campaigns and initiatives that have helped the brand grow closer to Boca’s many fans.

The campaign started with the hosting of the farewell match for Juan Roman Riquelme, one of the club’s most beloved and greatest players in its near 120-year history.

A Betsson spokesperson explains: “The concept of ‘fansorship’ transcends the boundaries of conventional sponsorship, evolving into an emotional bond between Betsson, Boca, and the fans. Our partnership is not just about brand promotion; it’s about sharing a profound passion for sports and entertainment.

“It’s this genuine connection that drives our success in ‘fansorship’, enabling us not only to provide unique experiences but also to fulfill dreams and strengthen the community.

Alongside a presence at the farewell game, Betsson was also present outside the La Bombonera stadium to engage with fans through a series of fan activations, such as table football, Boca and Betsson branded merchandise, and more.

“At Betsson, our commitment goes beyond advertising; it’s about nurturing shared passion and making every moment on the pitch unforgettable for all who love football and feel the heartbeat of the blue and gold.”

Betsson understood the magnitude of Boca Juniors’ fanbase and its deep-rooted connection to the club. By recognising one

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MARKETING

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ENTERING A NEW ERA

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MARKETING

Alanbase Chief Product Officer ARTUR YULBARISOV charts the evolution of the affiliate and operator dynamic and notes how the SaaS firm’s platform can help keep those relationships strong

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lease introduce yourself and Alanbase.

I have been working for Alanbase for three years and became Chief Product Officer very quickly. Therefore, I know all the details of Alanbase from scratch. My experience allows me to work efficiently and successfully with Alanbase as a SaaS platform for affiliate programs.

Our platform is suitable for all iGaming products, such as online casinos and sportsbooks, and our features do not have any restrictions on working with other niches. We have a flexible platform for creating an affiliate program for a brand and creating an affiliate network.

What sets Alanbase apart from its competitors?

When we started to develop our platform, we had already integrated flexible settings and adapted them to different clients’ needs. Therefore, the platform is different from others out there.

There are a few examples: 1. Powerful ultimate statistics – we can build several different reports, and clients can set the metrics formulas by themselves, including NGR and GGR calculations, which should be calculated in a tabular report. Add to that the ability to perform cohort analysis right inside the platform, and one gets a powerful analytical tool that covers all your traffic analysis needs.

2. Flexible qualification as a commission method – clients can determine which set of events will qualify a player in a

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transaction under the CPA model.

3. Custom formulas to calculate NGR and to work with Revenue Share – users can set calculation formulas directly in the graphical interface and change them at any time. No one else in the world provides such functionality.

What are the main requirements for a modern affiliate program from both the operator and affiliates’ side? Do you have three top tips?

As a rule, operators’ demands are pretty logical and fair. These demands are: • •

• •

Stable and quick programs; Detailed analytics and reporting regarding the quality of traffic are available, where operators can set up and hide information that they do not want to show to their affiliates; User-friendly interface; and Flexible commission plans and the formulas for them. I have seen so many unique commission models, and I was glad when our platforms gave what a client wanted to have without any additional features or work.

Affiliates’ requirements are usually reduced to the ability to easily evaluate traffic depending on the source, simplicity, and intuitiveness of the interface, as well as real-time postbacks. This is especially true for those who work with performance marketing, as it is important for optimising advertising campaigns in several advertising networks.

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We are now in the era of performance marketing, where the result is visible and now

What trends have you noticed in the affiliate program space? Do you see that more individual brands are growing, or is it more about larger groups of brands growing faster?

becoming a blocker to working with it.

It is very important to strike a balance by collecting constant feedback from current partners, studying the market requirements of potential partners, reading thematic resources and keeping abreast with best practices.

In general, the number of affiliate programs is growing nowadays. Old brands have started to work with traffic from affiliates, and the work with affiliates has been simplified. The market is ready to offer new tools for working with affiliate programs.

Do you notice the changing of the popular commission plan at the different tiers? For example, we know Europe likes to work with CPM, and new markets like Brazil prefer working via CPA. But step by step, the RevShare model is becoming more popular in the market. Are there any more trends that we should be looking out for?

Moreover, it is common for a small brand to join a larger umbrella group of brands. When joining a group, a small brand gets more investment and expertise for its own growth.

Would you advise companies to launch their own affiliate program or look for more ready-made solutions?

The change in the structure of commissions in general is due to the fact that the composition of affiliates is changing now.

In my years of experience, everything is individual and depends on the expertise and resources of each brand. But, generally, I see a steady trend where big brands refuse to develop or refine their own platform in favour of third-party solutions, because they are not ready to maintain a separate production team to develop their own solution. This is generally logical - the expertise of the service team is much greater, and you can buy it for a very low price compared to the cost of in-house development.

A few years ago, a lot of traffic was driven to brands from SEO resources, and all of the work was based on the CPM and Revenue Share models. However, we are now in the era of performance marketing, where the result is visible and now, in fact, it is already a separate business with complex processes.

Of course, in this case it is necessary to return investments to affiliates as quickly as possible. That’s why we are increasingly seeing more and more brands transitioning the CPA model to RevShare after a while, once trust relations are built between the affiliate and the operator.

What is the ideal amount of features for an operator to have in its software? Does everybody need all of the additional features, or is it more important to have a strong UI? How do you solve this?

On the other hand, it is also becoming highly profitable for products to operate on CPA models, as the LTV of players is usually much higher than the CPA payout price, which allows brands to improve their unit economics and recruit extensive player data in the shortest possible time. Essentially, changes in commission plan structures are a natural evolution of the market.

An ideal platform should provide as many features as possible while not overloading the user interface with checkboxes, checkmarks, tabs, and other elements that can degrade the user experience, making it challenging to explore the platform.

Eventually, too many features end up

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Interview: Gamstop CEO Fiona Palmer Thought leadership: Monika Naydenova on affordability checks Interview: BetComply’s Mike de Graaff 84

PLAYER PROTECTION

BLOOD AND THUNDER If GambleAware’s annual conference is a barometer for the health of the UK’s research, education and treatment community then there’s work to do, writes Player Protection Hub Editor STEVE HOARE

many in the room took it to mean she will only work with people who do not work with the gambling industry.

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f GambleAware invited NHS England’s Mental Health Chief Claire Murdoch to its annual conference as an attempt to calm some nerves among attendees worrying about future funding then the move really backfired.

If her apparent confusion between treatment provider Gordon Moody and bookmakers such as William Hill and Paddy Power can be forgiven as a clumsy mistake, which she later apologised for without actually saying ‘sorry’, her rant against the industry and anyone who doesn’t share her values was chilling.

Murdoch was at the conference to explain the NHS’s role after the government handed it £50m from the new Research, Education and Treatment levy to distribute as it sees fit.

“I only want to work with people who have great values, who have got a common purpose,” she said.

One would hope the common purpose is to treat as many people as possible who have been harmed by gambling. However,

There has been a growing campaign among pressure groups claiming that the industry pollutes everything it touches. Therefore, anyone involved in research, education or treatment should not collaborate with the gambling industry at all.

GambleAware itself has been stoking this particular fire – and made no attempts to make amends by inviting anyone from industry to take to the stage.

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There has been a growing campaign among pressure groups claiming that the industry pollutes everything it touches

“I have gone on record many times about how this industry stokes demand and preys on the vulnerable in ways that simply should not be allowed,” Murdoch thundered , before adding. “I’m not anti-gambling. From a little girl I used to go and put a bet on the Grand National for Mum and Dad.” When I was a little boy, it was normally the Dads putting bets on for the kids – as bookmakers don’t take bets from kids – but maybe they did back in Murdoch’s youth.

After all, bookmakers were only legalised in 1961 and perhaps they were a bit more laissez faire about age in the early days. By the time my kids were born, I couldn’t even wheel them into a bookmakers’ shop asleep without security ushering me out.

This is progress.

When the likes of campaigner Matt Zarb-Cousin declare from the stage that the industry “needs to embrace reform”, it seems to get lost in the debate that it is reforming all the time.

“

Despite the talk of the importance of preventing gambling harm – rather than waiting for treatment providers to clean up the damage done – it seems to have passed everyone by that gambling operators are in the best place to prevent their products from causing harm.

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COLLABORATION

GAMES At the heart of the player protection movement lies a need for collaboration and nobody embodies collaboration more than Gamstop CEO FIONA PALMER Words by STEVE HOARE

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hen Fiona Palmer took to the stage at the Player Protection Symposium in Lisbon last September, her fellow panellists almost swooned at her presence.

“It is such an honour for me to be sitting here next to these panellists,” said Tonybet Head of Responsible Gambling Christina Theophilos, “especially Fiona. Fiona is the CEO of the UK National Self-Exclusion Registry Gamstop. I have been making sure that [Gamstop] support link goes on every terms and conditions, every procedure, every template for the past five years to every single player. And that’s thousands of players. I’m just so honoured as an operator to sit here next to you and know that this is a collaboration, that she needs me and I need her. And to hear the history of what she’s gone through is essential.”

Palmer is a modest soul, so she was somewhat embarrassed by the attention, but she is justifiably proud of her achievement in setting up the UK’s national self-exclusion scheme.

Peel Hunt analyst Ivor Jones continued the theme: “I want to pay tribute to Gamstop because it is the perfect example

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of a public policy response, which like a vaccination, targets a particular individual and not the market as a whole. I think every policy should be like that – should be trying to find and protect the individuals at harm and not more broadly to change behaviour and perhaps stop people from doing what they enjoy doing.”

Last September, Gamstop highlighted the fact that half-a-million people had registered for self-exclusion since 2018. As the numbers continue to rise, there are two ways of analysing this growth. Firstly, Gamstop – and the wider gambling industry – is doing its job properly and publicising its service – people know it’s there and are using it when they need to (or want to).

The flipside of this coin is the suggestion made by anti-gambling campaigners that if the number of people self-excluding is going up then the number of people suffering from gambling harm is going up.

“Linking self-exclusion directly as an indicator for harm is quite a tricky one,” cautions Palmer. “Because we don’t ask people why they self-exclude. There could be a number of different reasons.”

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This is evidence that collaboration by the industry can make it a safer place for individuals 87

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We can’t tie them all together with the same label that they’re on Gamstop because they’re a problem gambler

She points to the number of people who turn 18 every day as a continuous flow of potential new registrants.

And far from being down-hearted about this, it points to Palmer’s own motivation for doing the job.

She says that it tallies with the findings of the Ipsos evaluation (more below), which highlighted the fact that registering on Gamstop doesn’t necessarily mean that people completely stop gambling.

“I have a son. And I wanted to do what I could to try and make it a safer place for when they were older. I felt that I was uniquely placed having worked in the industry myself and being passionate about consumer safety.”

“People use Gamstop for their own reasons and for different reasons.

We’ve got to be very careful that we don’t go and box individuals together who are on Gamstop. We can’t tie them all together with the same label that they’re on Gamstop because they’re a problem gambler – they could be using it for different reasons. It’s a gambling management tool.”

DOIN’ IT FOR THE KIDS Some have described downloading gambling apps when you turn 18 as something of rite of passage in the modern day.

“I guess it’s a freedom,” says Palmer.

“At that age you’re very much there, you want to take risks, you want to try things.”

Gamstop’s figures reveal a small increase in the 16-24 age group. The percentage of Gamstop registrants in that age range has increased from around 17 per cent in 2022 to almost 25 per cent today.

“I’m saying it’s a small increase because I don’t want to blow this out of proportion but it’s a small trend.

And to me logic would say that the reason is that, as I said, people are turning 18 every day,” says Palmer.

She goes on to tell a tale of sitting round the kitchen table with a group of her son’s friends soon after they all turned 18. They’re showing her their online gambling accounts and talking about the money they’ve spent. She says they’re a certain demographic – into sports and studying maths and economics.

Over a third of them had been on Gamstop or were on Gamstop.

“I found it quite reassuring that actually they talk openly with each other about being on Gamstop,” she continues. “I’m not saying that stigma has been eliminated across the board and, of course, this is very anecdotal but it is reassuring nevertheless.”.

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Gamstop has just published the results of its second independent evaluation from polling firm Ipsos. Overall, 78 per cent of respondents said they were satisfied with the service. One of the key recommendations is that at the end of an exclusion, it doesn’t just automatically stop.

At the moment the maximum length of exclusion is five years, with a further seven coming automatically, which means in effect the exclusion is 12 years. But during that additional seven years you can contact Gamstop and ask them to remove you from the system. Whereas in the first five years you can’t.

The key here will be figuring out the messaging – the last thing anyone wants is to trigger a relapse by getting in touch to ask what someone wants done with their Gamstop registration.

So, Palmer’s team is working with user groups, GamCare, and the likes of Betknowmore and others in the National Gambling Support Network.

“We’re very much about a collaborative approach to make sure that the right people are inputting the right information to support this,” says Palmer. “We are by no means the experts in what the messaging should be. It is a case of going out and testing it and getting the input and advice from those who are more experienced than ourselves.”

PLAYER PROTECTION

NEXT GENERATION SELF-EXCLUSION

integrate once it became a condition of the licence to be on Gamstop.

This collaborative approach goes to the heart of the Gamstop story.

A huge part of her job was speaking to suppliers and dispelling the myths that spring up around new projects of this scale.

Gamstop came about because the UK regulator, the Gambling Commission, wanted to set up a national self-exclusion scheme. To do this, it needed the gambling industry to do it and asked the Remote Gambling Association (now, the Betting & Gaming Council) to set it up.

On March 31st 2020 Gamstop was launched as a mandated condition of having an online gambling licence in the UK. “This is evidence that collaboration by the industry can make it a safer place for individuals,” states a proud CEO.

“My job was to get all the operators on board,” says Palmer. “We really had to bear down on what would work for the big multinational companies, who’ve got massive technology teams, to the oneman bands, who have an online licence and provide online gambling services.”

The next step is to unite all the self-exclusion schemes that exist in the UK. There are selfexclusion schemes for retail bookmakers, casinos, bingo halls, motorway service stations, and two for arcades. Gamstop took over the retail bookmakers’ system MOSES last year and also unified online operators’ own self-exclusion systems with the Gamprotect system that Gamstop operates.

She emphasises the importance of being very clear that what you say to one, you say to all.

“So that there is openness and trust and collaboration,” she continues. “And then it’s the same with consumers. It’s about openness.

Part of focusing on the consumer was about kind of gaining the trust and openness and we wanted to make sure that we could have an independent board. So it wasn’t the voice of the industry the whole time.”

It is in a good position to take on the Gambling Commission’s unification project.

“You’ve got to do this by making sure that no one scheme is less effective than it currently is,” says Palmer.

As chair of the Self-Exclusion Scheme Owners Group, Palmer will be a key to making it happen. There really couldn’t be a better person to shepherd this latest vital project into reality.

After the initial push, Palmer and her colleagues had 60 operators on board, which she was thrilled with but it was only about half of the pool of operators that needed to

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PLAYER PROTECTION

LiveScore Group Director of Regulatory Compliance MONIKA NAYDENOVA tells us how to avoid alienating customers with affordability checks

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determine if continued gambling at the same level is responsible.

few years ago, when the concept of assessing a customer’s “affordability” first emerged in the UK government’s gambling white paper, I asked a friend for their opinion on these checks.

Their response was that they had never encountered another industry outside of lending that was required to adhere to such regulations.

HOW FRICTIONLESS CAN IT BE? In the UK online gambling industry, affordability checks assessing players’ financial capacity will either be frictionless or disruptive to the player experience. Frictionless checks use automated data, like credit references, to quickly assess a player’s financial health with minimal disruption. By contrast, disruptive checks introduce friction into the player experience and involve additional steps such as requesting bank statements or pay slips from the player to ensure their gambling remains affordable.

Gambling regulators are considering affordability checks as an integral part of responsible gambling practices within the online gambling industry, reflecting a broader commitment to safeguarding players from financial harm. These measures aim to strike a balance between allowing people to enjoy gambling as a leisure activity and ensuring that it does not lead to financial distress. However, implementing these checks has sparked significant debate, especially in their intersection with anti-money laundering (AML) practices, the public’s reaction to providing personal financial information, and the unique regulatory burden they place on the gambling industry compared to other forms of entertainment.

The UK Gambling Commission is conducting a pilot for frictionless financial risk assessments, which aim to test players’ affordability in a nonintrusive manner, primarily by using data from credit reference agencies without affecting customer credit ratings. Whilst this trial is ongoing and we are still unsure of the outcome, the existing tools, such as open banking and manual verification, can feel intrusive for gamblers, leading to discomfort, especially as players are often asked to share large amounts of financial data and are naturally concerned about being labelled as financially irresponsible.

Additionally, interpreting financial data accurately is challenging, particularly for individuals with irregular income, which could result in unfair restrictions.

The primary objective of affordability checks is to protect consumers. When a player reaches certain spending thresholds, operators are required to conduct deeper reviews of their financial situation. This involves verifying income and expenditure to

The unique requirement for gambling operators to ask players about their earnings highlights an industry singled out for a level of scrutiny unmatched in other sectors

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At the same time, affordability checks often overlap with anti-money laundering (AML) processes. Both require operators to verify income sources and scrutinise financial transactions. While AML procedures focus on preventing financial crime and ensuring that gambling platforms are not exploited for laundering illicit funds, affordability checks emphasise consumer protection. The dual purpose of these reviews means operators must maintain robust systems capable of handling both checks seamlessly. This can involve gathering similar documentation, such as pay slips and bank statements, to confirm that funds are legitimate and that the player can afford to gamble without risking financial harm.

CAUSING CUSTOMER CONFUSION The similarities between affordability checks and AML practices can lead to confusion among players, who may not understand why so much personal information is needed. This requirement to submit sensitive financial documents has provoked a strong public response.

For many, gambling is a private, recreational activity, and the demand for detailed proof of income or expenditure can feel intrusive. According to a YouGov survey for the Betting and Gaming Council conducted in 2023, 79 per cent of UK punters said it was likely increased restrictions “would result in people moving to unregulated websites” where there are no limits. Privacy and data security concerns are prevalent, with players questioning how their information will be stored and protected. The fear of data breaches, unauthorised use, or mishandling of personal information only amplifies these worries.

Additionally, many gamblers feel stigmatised by these measures. The process of undergoing affordability checks can create an impression that all players are viewed as potential problem gamblers, which detracts from the enjoyment and freedom typically associated with leisure activities. This scrutiny is a significant

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departure from what is expected in other entertainment sectors.

STRIKING THE RIGHT BALANCE For the gambling industry, navigating these challenges is an ongoing process that requires balancing effective regulation with consumer trust and satisfaction. Striking this balance means refining affordability checks to ensure they are proportionate and transparent.

Operators and regulators must enhance communication about why these checks are necessary and what protections are in place for personal data.

Investments in secure and automated technology can facilitate smoother, less invasive affordability assessments, reducing the need for detailed document submissions while still protecting vulnerable players.

In conclusion, while affordability checks represent an important step toward promoting responsible gambling, they also raise questions about fairness and privacy. The unique requirement for gambling operators to ask players about their earnings highlights an industry singled out for a level of scrutiny unmatched in other sectors.

To maintain a sustainable and enjoyable environment for consumers, the gambling industry must continue to evolve, and regulators need to balance the need for robust regulation with the autonomy and privacy of players.

As affordability becomes a more and more popular topic in the UK and among regulators outside of the UK, there are very real concerns that the lack of frictionless checks and robust financial risk databases in many countries will lead to more players migrating to the unregulated black market to avoid spending restrictions. This September, a report published by Frontier Economics, found that 1.5m Brits stake up to £4.3bn on the growing, unsafe gambling black market each year.

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Making compliance

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PLAYER PROTECTION

BetComply Director and Chief Compliance Officer MIKE DE GRAAFF explains his philosophy of compliance

Words by CHARLIE HORNER

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rguably the most crucial aspect of operating a successful sportsbook or online casino is maintaining compliance with local laws and regulations for each market.

But staying on top of a variety of frameworks can be a difficult task, owing to several factors, including the stringency of regulation and untold amounts of legalese to decode.

Yet, amid the confusion, there is support. Mike De Graaff is the Co-Founder and Chief Compliance Officer of BetComply, which was launched in 2023 to help companies remain compliant in existing markets, but also to help them obtain licences in new markets.

His aim for BetComply is for it to be the foremost expert in getting clients regulated in new markets.

Quizzed by SBC Leaders on the process of becoming an expert in new markets before anybody else, De Graaff revealed his ongoing philosophy for his craft.

“If you are really good at compliance, then you are really good at compliance in any jurisdiction, because it’s a transferable skill,” he says. “People who are bound to a jurisdiction are a jurisdiction expert, not a licensing expert. We are licensing experts and, when we approach new markets, we establish partnerships with local partners and local lawyers and local stakeholders, whatever the framework requires.”

BetComply is committed to putting in the hard yards in each market so that its partners can relax knowing that the consultancy can iron out any issues they may have.

To amplify this point further, De Graaff reveals that all preparation work for new markets is treated as nonbillable hours.

He explains: “We do that at our own costs then we service the clients as if it was an established market because we have done the work and got accustomed to the local regulation, stakeholders and players.”

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If you are really good at compliance, then you are really good at compliance in any jurisdiction, because it’s a transferable skill

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SBC LEADERS ISSUE 34

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Everyone hates Ontario’s way of doing it so we are making it more user friendly

GETTING RESULTS The firm’s methods have strong results too. While the general acceptance rate for new licences in the Dutch market hovers around 25 per cent, BetComply has a 100 per cent success rate thus far.

One of its primary methods is ComplyCheck, which aims to simplify the process of both internal and external compliance audits. The audits are carried out via a questionnaire, which turns complex regulations into plain English questions.

Upon entering the market, BetComply noticed that external audits were far too slow and not fit for purpose in getting a picture of a business’s overall operations.

De Graaff elaborates: “They don’t always test the actual operations for compliance, they just test the compliance team on whether they know how to answer audits. With ComplyCheck, we have changed the way of auditing by having a 21st Century portal that is very user friendly. It turns regulations into plain English questions that you can, as a main user, assign to other users in your operations. This helps assess whether your team knows what they are doing and why they are doing it.”

For example a Head of Compliance can turn over (parts of) the questionnaire to the entire team from junior to

senior staff to see if they know what to do in order to remain compliant and whether they know why they are doing it.

Using the answers, BetComply can then, on request, conduct a full external audit giving the client a holistic view of their operations and seeing where gaps need to be filled.

FROM NETHERLANDS TO CANADA The tool was first introduced in De Graaff’s homeland Dutch market and has been rolled out to the UK and Ontario, Canada.

“The Netherlands, the UK and Ontario have very stringent frameworks when it comes to compliance in general but also internal auditing. At the same time, they have changing frameworks.

“The Netherlands we started with because they take the RG framework a bit further than everyone else. It’s called addiction prevention, not responsible gambling and there really is a focus on that prevention aspect.

It is mandatory to work with addiction care experts, experts from experience and people from the healthcare field which is totally new for the industry.”

“The UK followed after because of the changing frameworks and because the UK is already tough as it is. You want to make sure that you keep up to date because if you miss anything, you are in big trouble.

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“We added Ontario because people are struggling with the Control Activity Matrix which is a big excel platform and an old way of doing internal audits.

Everyone hates that way of doing it so we are making it more user friendly.”

Operators in each of these markets also have to cope with the constant threat of change.

“We are servicing clients left right and centre, meaning that if we get a hint of new regulation coming in, the consultants assigned to these modules will update the modules with questions and you get notifications telling you that there are new areas for you to check.”

Having strong relationships with partners is essential for BetComply too, particularly when these new frameworks are introduced.

“If we have done a ComplyCheck with someone already, then we know their current framework and what their gaps are and what their strengths are and how things function, so as soon as there is clarity on new rules we can quickly translate that into the impact on their specific operations,” he notes.

Further markets are in the pipeline for the firm and De Graaff remains fervently confident that, with its strategy and his personal philosophy on compliance, the firm can continue to have significant success rates for its customers.

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COMMENT

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Final word with

Rasmus Sojmark T

five years and our ambition is for it to become the most useful business app the industry has ever seen.

he first SBC Summit in Lisbon marked the start of a large upheaval in the iGaming events business. We realigned our portfolio by moving our major event to Lisbon, combining our North America and Latinoamerica shows into one huge SBC Summit Americas and moving SBC Summit Rio into a dedicated exhibition space.

We’re also investing another £2m on a new content project that we are keeping under wraps just for now, but I can’t wait to share it with you later in the year. It’s something that’s been specifically designed to help operators enhance their day-to-day operations. It’s very exciting.

2025 will now see other major events moving around. With one changing from London to Barcelona, another from Amsterdam to London and now Malta to Milan.

But before that we have our new look SBC Americas event, combining the best of the US and LatAm gaming, held in the state of the art Broward County Convention Center in Florida.

Change is not always welcomed by customers, but it can be experience-enhancing in other ways.

Change is opportunity. I feel this year will give many people the opportunity to reassess schedules that they may have been doing out of habit since they joined the industry.

It’s not all about Lisbon and Miami of course. Our regional shows are also key events. While the SBC Summit Rio has obvious attractions with the now regulated Brazilian market, we also have important local events in Toronto, Malta and Tbilisi throughout the year.

I’m confident that SBC will tick a lot of boxes this year. Lisbon looks set to be the BIGGEST gambling exhibition in the world in 2025. Our second year at Feira Internacional de Lisboa (FIL) allows us to take what we learned and make some major improvements on what was already the best show we have ever held.

In short we’ve been working hard at SBC to provide you with the perfect touchpoints with colleagues, partners and new contacts in some of the key gaming markets in the world. And we’ll have some fun while we do that.

I look forward to hosting you somewhere this year.

We have something for everyone.

We continue to develop our own technology around the event, with our proprietary app enhanced after every single one of our events. We have invested upwards of £500,000 in SBC Connect over the past

Stay cool, Rasmus Sojmark, Founder & CEO, SBC

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