GAN grows US reach with FanDuel contract expansion

first_img Supplier’s chief executive describes new contract covering West Virginia and Pennslvyania markets as a significant milestone for the business Regions: US New Jersey Pennsylvania West Virginia AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter iGaming platform and software supplier GAN has significantly expanded its US regulated market footprint through a new, expanded contract with long-term partner FanDuel Group.The agreement with Paddy Power Betfair’s US-facing subsidiary will see GAN provide FanDuel a platform to power the launch of online casino, as well as a player account management solution for online wagering in West Virginia and Pennslyvania.This builds on the companies’ existing relationship, which has seen GAN provide a platform and related services for FanDuel Group in the regulated New Jersey market since 2013. The new contract runs from 2019 until 2024.FanDuel has deals in place with West Virginia’s Greenbrier luxury resort, with land-based betting already launched in September 2018. It has a deal in place with the Boyd Gaming-owned Valley Forge Casino in Pennsylvania, which will see it serve as the casino’s sports betting service provider, while GAN already provides player management services to Parx Casino in the state.The expanded partnership will also see FanDuel license GAN’s US patented technology for linking casinos’ on-property loyalty programmes to iGaming accounts, allowing players to collect loyalty points by gambling online. This is designed to boost customer lifetime value and engagement among US casino patrons.GAN said that the partnership would therefore boost the company’s bottom line by growing revenue share and professional services fees, as well as creating scope for more partnerships and opportunities to grow revenue from additional patent licensing deals.“The contract extension combined with US patent licensing represents a significant milestone in GAN’s US evolution and reinforces our view that in the heavily regulated US online gambling market, effective and compliant platforms are a premium component of the supply chain rather than a commodity,” GAN chief executive Dermot Smurfit said.“GAN is therefore very well placed to capitalise on the growth in US online gambling markets in terms of new operator clients, new states and underlying growth momentum.” Email Address 10th January 2019 | By contenteditor Topics: Casino & games Sports betting Tech & innovation Horse racing Subscribe to the iGaming newsletter GAN grows US reach with FanDuel contract expansion Casino & games Tags: Online Gambling Race Track and Racinolast_img read more

Double standards: part one – advertising

first_img31st January 2019 | By Joanne Christie Regions: UK & Ireland Subscribe to the iGaming newsletter Tags: Online Gambling Lottery While regulators have been clamping down on igaming operators left, right and centre for advertising infractions, it seems everyone is turning a blind eye when it comes to the National Lottery. Phil Blackwell reports Double standards: part one – advertising AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter While regulators have been clamping down on igaming operators left, right and centre for advertising infractions, it seems everyone is turning a blind eye when it comes to the National Lottery. Phil Blackwell reportsEveryone’s had a conversation about winning the lottery. Among the pipe dreams of early retirement, a giant house (with customary swimming pool – inside and out) and far-away trips to distant relatives, come insincere declarations of charity and goodwill, protected by odds of over 45 million to one.Now consider whether you would so freely discuss – with your closest family or most judgemental friends – what you’d do if you won big on an online slot game, had a lucky streak on live roulette or bluffed your way to a fortune playing poker?Back in December 2018, the Advertising Standards Authority (ASA) cleared National Lottery operator Camelot Lotteries UK of promoting gambling as a solution to financial concerns.The complaint regarded three versions of the same television campaign, entitled “Amazing Starts Here”. It was produced for Camelot by communications agency Adam & Eve DDB – the company behind the John Lewis Christmas ads.The longest cut of the 120-second film tells the story of a family clearly struggling to balance the home life of a mother with the working life of her fisherman partner, Colin.It begins with Colin leaving for work with the family still asleep and proceeds to intersect his time on the boat with scenes of her daily routine with the kids, complete with longing stares into the distance.After missing his wife’s phone calls and her mysterious trip to the solicitor’s office, Colin returns to an empty home and a letter on the mantelpiece. Despite his gruelling shift at sea, he rouses the energy to sprint down the road towards the front door of a different, much bigger, house.The door opens and his wife reveals that she has bought the property and holds up a lottery ticket. “We won?” he asks, “We won”, she confirms (spoiler alert).You might be wondering why I wasted 150 words describing an advert that you could just watch online. In fact, I’d highly recommend you do that before reading on. Simply go to YouTube and search for “Amazing Starts Here”.Double standards? The ASA complainants challenged whether the advert(s) suggested that participation in a lottery could be a solution to financial concerns. It was not upheld.Camelot stated that the new home was a “modest family home in the same village as the original home” and that “the sadness conveyed by the couple in the early scenes was the product of the family’s physical separation from one another when he was at work on the fishing trawler”.Even disregarding the fact that different properties in the same location can have significant differences in price, the ASA’s own BCAP code for lottery marketing contains the following condition: “[Advertisers must not] suggest that participating in a lottery can provide an escape from personal, professional or educational problems such as loneliness or depression (18.2.2).”Now imagine exactly the same advert, but this time with a different ending. In this version, the brand being promoted isn’t the National Lottery but an online casino.As Colin reaches the new house, instead of producing a lottery ticket, his wife raises a laptop. She slowly turns the screen to reveal the words “MEGA JACKPOT WIN” upon a background of flashing slot reels and a classic arcade soundtrack.Do you think the ASA would clear this version too? The message is the same, the angle is the same and the implied cause-effect relationship is identical, the only difference is how the money that bought the house was attained. I’m confident that my director’s cut version would not only attract more complaints, but the complaints would more likely be upheld.What the lottery gets away with Fishermen aside, the National Lottery has a colourful recent history in terms of high profile marketing. One campaign you may remember, entitled #PleaseNotThem, played on the idea that it might be better if some people didn’t win the jackpot.A series of ads containing the nation’s favourite pantomime villains, including Noel Edmonds, James Blunt and Piers Morgan, culminated with the narrator’s impassioned plea to viewers: “Anyone can win with Lotto. Please, don’t let it be him.”This is a direct call to action for people to gamble to prevent somebody else winning, as if picking six random numbers in a game of luck will negatively affect the odds of another player, like some perverse anti-celebrity karma.Literally translated, the message is: “We don’t like some of our players. Please buy tickets so they don’t win even though we know it makes no difference.”I wonder if that tagline would have passed the ASA and the Gambling Commission?Why the lottery gets away with it The lottery is to gambling what shandy is to alcohol: a diluted version of an addictive habit, carrying less risk and attracting less judgement.But the facts suggest otherwise. The facts suggest that the National Lottery is the most frequently participated in form of gambling in the UK. The facts suggest that, just like other forms of gaming – perhaps even more so – players will lose in the long run.So how does the lottery still hold its status as a national institution and why is scrutiny of its marketing protected by a veil of hypocrisy and public affection?There is no denying that funds raised by the National Lottery have benefited thousands of organisations, charities and projects throughout the country.But let’s not beat around the bush, this is gambling industry money. As Stewart Roberts from Haircuts4Homeless states in another of the lottery’s recent adverts: “I don’t think people buy lottery tickets to help good causes, but playing it helps us do what we do.”The work that the National Lottery does for good causes is commendable, but it should not exempt the organisation from responsible gambling regulations. It should not, also, be mistaken for the primary reason people play.The igaming industry is not perfect, but you only have to look at the size and frequency of the fines being administered to big name casinos and sports books to see the consequences of regulatory non-compliance.Besides a relatively small £1.2m fine received by Camelot in 2018 for mostly administrative mistakes made two years earlier, the Gambling Commission and other regulators have been surprisingly shy of challenging the National Lottery’s questionable approach to marketing.Upon receiving the fine, Camelot apologised and agreed to make a payment to its Good Causes scheme in lieu of a financial penalty – a scheme into which it already pays £30 million each week.£1.2m was a drop in the ocean, but will the storm ever come? I’ll keep my fingers crossed.Phil Blackwell is acquisition operations manager at Lindar and responsible for the growth of affiliate site OnlineBingo.co.uk and proprietary bingo platform MrQ.com.  Topics: Lottery Email Addresslast_img read more

Louisiana sports betting looks dead after latest rejection

first_imgAddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Legal & compliance Louisiana sports betting looks dead after latest rejection Louisiana looks set to miss out on sports betting this year after the state’s House of Representatives rejected amendments to a fantasy sports bill that would have given citizens a vote on legalising wagering. Louisiana looks set to miss out on sports betting this year after the state’s House of Representatives rejected amendments to a fantasy sports bill that would have given citizens a vote on legalising wagering.House Bill 459 primarily focuses on legalising daily fantasy sports contests in the state, but having passed the House last month, was then amended by the Senate to also include the sports betting measure.The amendment set out plans to stage an election for Louisiana citizens to vote on whether the state should also progress with plans to legalise sports betting. It was approved in the Senate earlier this week by a vote of 24-13.Had it been approved by the House, and secured a majority of votes in the state, it would have cleared the way to implement the regulatory framework for sports betting set out in Senator Daniel Martiny’s Senate Bill 153.However, the House has moved quickly to reject the amended bill, unanimously voting it down 97-0 during a session yesterday (June 4), ahead of the end of the current legislative session on June 6.Read the full story on iGB North America.Image: Stuart Seeger Regions: US Louisianacenter_img Topics: Legal & compliance Sports betting Email Address 5th June 2019 | By contenteditor Subscribe to the iGaming newsletterlast_img read more

FDJ creates €30m startup investment fund

first_img23rd July 2019 | By contenteditor FDJ creates €30m startup investment fund Topics: Casino & games Lottery Sports betting Tech & innovation Regions: Europe Western Europe France French gaming giant La Française des Jeux (FDJ) has launched V13 Invest, a new €30m (£27.0m/$33.5m) fund that will allow it to take stakes in new startups that can enhance its business processes. French gaming giant La Française des Jeux (FDJ) has launched V13 Invest, a new €30m (£27.0m/$33.5m) fund that will allow it to take stakes in new startups that can enhance its business processes.The new fund will be managed by tech-focused investment fund Serena, which will target minority shareholdings in European startups as it looks to develop and diversify its activities.V13 Invest has been launched as part of FDJ’s ‘open innovation’ strategy, initiated by chief executive Stéphane Pallez and designed to accelerate its transformation into a digital-driven business.In particular it will focus on startups working on solutions that allow it to enhance its customer experience and payment services, especially around points of sale. The fund will also look to invest in entertainment businesses, following its move into esports competitions in 2017.As part of the operator’s digital transformation, under the FDJ 2020 plan, it has set aside €500m to invest in digital activities, including investments in innovation funds such as Partech Partners, Raise Investment, Level Up and Trust-Esport. To date €400m has been invested in this transformation plan.It has also partnered incubators and accelerators such as Paris&Co and Techstars, as well as digital think tanks and the France Digitale association. This has boosted digital sales, which were up 12% year-on-year in the operator’s 2018 results, with 1.9m registered online customers.The FDJ 2020 strategy is being implemented against the backdrop of the operator’s privatisation, with the French state to divest the majority of its 72% stake in the business through an initial public offering. The Agence des Participations de l’Etat (APE), the state agency that handles the privatisation of state assets, has formed a syndicate of eight investment banks to manage the process. Tags: Mobile Online Gambling Subscribe to the iGaming newsletter AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Casino & games Email Addresslast_img read more

Lotto NZ suspends retail sales following lockdown

first_imgCSR New Zealand’s national lottery Lotto NZ has announced that it will suspend in-store sales of its tickets and games during the country’s four-week lockdown.Retail sales were suspended from 11:59PM on 27 March, with all stores to remain shut until Alert Level 4 has been lifted. This includes Lotto NZ counters in pharmacies, dairies, petrol stations and supermarkets, which will remain open for essential services only.The implementation of Alert Level 4 to slow the spread of novel coronavirus (Covid-19) in the country was announced last week, and sees all indoor and outdoor public gatherings banned, alongside all non-essential businesses.This has already seen all of New Zealand’s TAB-branded retail betting shops closed, and all horse racing suspended until 21 April. Online wagering will continue, via the TAB website.Customers will also still be able to purchase Lotto NZ tickets online during this period, to ensure that it can continue to raise funds for good causes during the lockdown. The lottery donates all profits to more than 3,000 good causes across New Zealand, as well as providing significant funding for Sport New Zealand, the New Zealand Film Commission and national arts development body Creative New Zealand.“By operating online during the lockdown period we can continue to provide funding to New Zealand communities, many of which will need it now more than ever,” Lotto NZ chief executive Chris Lyman explained. “We know some of our customers will be disappointed they won’t be able to purchase tickets in-store during Alert Level 4, but like other businesses we have had to adapt during these unprecedented times,” he added.As a result of the lockdown, the lottery will also be unable to conduct live Lotto draws, and will instead conduct computer generated draws for Lotto, Powerball and Strike, monitored by Audit New Zealand.Lyman said Lotto NZ has a “well-tested and sophisticated computer generated draw process” that is already used daily for its Keno and Bullseye games. This technology was previously used for a Lotto draw held on 26 October last year, after a fire at the Sky City Convention Centre made it impossible to hold an in-studio draw.“The most important thing is that we follow the latest Government advice on Covid-19 to prevent face to face contact and keep our customers and retailers safe,” he said in conclusion. “Never has there been such an important time for Kiwis to help other Kiwis.” Email Address AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter 30th March 2020 | By contenteditor New Zealand’s national lottery Lotto NZ has announced that it will suspend in-store sales of its tickets and games during the country’s four-week lockdown. Topics: Lottery Social responsibility CSR Regions: Oceania New Zealand Lotto NZ suspends retail sales following lockdown Subscribe to the iGaming newsletter Tags: Charitable Gaming Online Gamblinglast_img read more

English FA Cup set to resume from 27 June

first_img English FA Cup set to resume from 27 June AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Email Address Subscribe to the iGaming newsletter The English Football Association has announced 27 June as a provisional restart date for the FA Cup, after the knock-out competition was suspended as a result of the novel coronavirus (Covid-19) pandemic. The English Football Association has announced 27 June as a provisional restart date for the FA Cup, after the knock-out competition was suspended as a result of the novel coronavirus (Covid-19) pandemic.The quarter-finals of the 2019-20 FA Cup will take place over the weekend of 27-28 June, with the ties having already been decided prior to the competition being halted in mid-March.Newcastle United will play holders Manchester City; while Leicester City face Chelsea; Sheffield United will play Arsenal; and Norwich City are due to face Manchester United.The semi-finals will take place across the weekend of 11-12 July, with the FA Cup Final scheduled for 1 August.“The competition has been an integral part of the English football calendar for nearly 150 years, and we’d like to thank the Premier League executive and clubs for their support in scheduling the remaining matches during this unprecedented time,” FA chief executive Mark Bullingham said.“This has been a difficult period for many people and, while this is a positive step, the restart date is dependent on all safety measures being met. The health and wellbeing of players, staff and supporters remains our priority.”The FA Cup is recognised as the oldest knockout club football competition in the world, having first taken place in the 1871-72 season.The announcement of the provisional resumption dates comes after the English Premier League yesterday (28 May) also confirmed that its 2019-20 season will restart on 17 June.The Premier League also halted play due to the outbreak, but clubs provisionally agreed to resume play next month, 100 days since the league was suspended.The first two matches back will see Aston Villa take on Sheffield United, while Manchester City plays Arsenal, on 17 June. After these games have taken place, each club in the division will have played 29 times, and a full fixture list will return over 19-21 June.center_img Topics: Sports betting Regions: UK & Ireland Sports betting 29th May 2020 | By contenteditorlast_img read more

Rush Street Interactive to go public on NYSE

first_img Subscribe to the iGaming newsletter Rush Street Interactive to go public on NYSE Topics: Finance Sports betting Rush Street Interactive (RSI) is set to be the latest US online gambling operator to go public after agreeing a reverse merger with special purpose acquisition company dMY Technology Group.The merger – approved unanimously by the boards of both businesses and expected to close later this year – will see Rush Street trade on the NYSE with an initial enterprise value of around $1.78bn, using the ticker symbol “RSI”.“We started RSI in 2012 to create a fun and engaging online experience for the US gaming customer and we now have a great opportunity to accelerate our growth in this dynamic market,” RSI chief executive Greg Carlin said. “We are looking forward to investing further in market expansion, product innovation, and growing our talented team.”Rush Street’s announcement follows Golden Nugget Online Gaming’s decision to go public on the Nasdaq exchange last month, while DraftKings also traded on the exchange after agreeing a merger with SBTech.Read more on iGB North America Rush Street Interactive (RSI) is set to be the latest US online gambling operator to go public after agreeing a reverse merger with special purpose acquisition company dMY Technology Group. 27th July 2020 | By Daniel O’Boyle Tags: Online Gambling Finance AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Regions: US Email Addresslast_img read more

Superbet acquires majority stake in Lucky 7

first_img Email Address Finance Superbet acquires majority stake in Lucky 7 Tags: Online Gambling Superbet Group has acquired a 60% stake in online casino operator Lucky 7, in a deal the Central and Eastern European betting and gaming business said would help to diversify its operations. Superbet Group has acquired a 60% stake in online casino operator Lucky 7, in a deal the Central and Eastern European betting and gaming business said would help to diversify its operations.Financial terms of the deal were not disclosed, but Superbet said the purchase marks the second step in its strategy, having made an initial investment in the platform during its start-up phase in early 2019.Founded by Olof Orn, Karl Ahlberg and Magnus Petersson, Lucky 7 operates a number of online casino brands across multiple markets in Europe and the Americas.The business has also applied for licences in other regions, and expects to launch in three new markets within the next 12 months.“Lucky 7 is an acquisition that complements our current expertise well and further diversifies the SB Group across multiple geographies,” Superbet chief executive Johnny Hartnett said. “Additionally, it significantly boosts our online gaming revenue and brings product and marketing expertise the group will benefit from for years to come.“I have long been an admirer of Olof and the team from the other businesses they were involved with in the sector. Being able to partner with them to grow together is a great opportunity.”Lucky 7’s Orn added: “We have a perfect match here. On the one hand we have Lucky 7, a relatively new but already strong company both in terms of absolute numbers, but also in terms of product, player experience, online casino, and digital marketing expertise.“On the other hand, there is the Superbet Group known as the best multichannel sports betting operator in the Central and Eastern European region.”Superbet Group is part-owned by private equity group Blackstone, which in May last year committed to a £175.0m (€191.5m/$225.0m) strategic minority investment in the business.Earlier this month, Superbet also signed up as a member of the International Betting Integrity Association (IBIA).center_img Topics: Finance Strategy 27th July 2020 | By contenteditor AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Subscribe to the iGaming newsletterlast_img read more

All change in France

first_img Subscribe to the iGaming newsletter France’s gambling market is going through big shifts in terms of both operators and regulators as it nears the end of its first decade. These should leave the igaming industry in a stronger position, says Jake Pollard. Regions: Europe Western Europe France Tags: Mobile Online Gambling All change in France Topics: Casino & games Legal & compliance Sports betting AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Email Address 28th August 2020 | By Joanne Christie France’s gambling market is going through big shifts in terms of both operators and regulators as it nears the end of its first decade. These should leave the igaming industry in a stronger position, says Jake Pollard.France’s regulated igaming market is 10 years old this year and along with the UK and Italy, it could be described as a pioneer of sorts when it comes to Europe’s regulated markets. After all, of the major European countries, they were three of the earliest to have licensed igaming activity within their borders.France’s regulation in 2010 came amid some fanfare and was followed with enthusiasm by the business, political and media sets in the country. The mood among operators quickly soured, however.The loud and persistent complaints about heavy taxes on turnover or online casino not being licensed led many of them, big and small, to close down or throw in the towel. Eventually, those remaining  found a way to make the market work for them, although in truth it is the online sports betting vertical that is driving the sector forward.On the corporate front the most important news to come out of France this year has been the privatisation of national lottery operator La Française des Jeux in January. The French state reduced the 72% stake it had in the group to 21% and generated €1.89bn from the sale.On the regulatory side the major development has been the restructuring of l’Autorité nationale de régulation des jeux en ligne (ARJEL) into a new regulator, the L’Autorité nationale des jeux (ANJ).ANJ assumed its role in June and is now headed by its new president Isabelle Falque-Pierrotin, who was formerly head of the Commission nationale de l’informatique et des libertés (CNIL), the body that enforces data privacy laws related to the collection and storage of all public and private information in France.Nearly 80% of the sector For the industry the key change is that ANJ now regulates 78% of France’s gambling market across both the online and land-based channels, including the country’s 202 land-based casinos. However, the Interior Ministry continues to assume responsibility for any issues linked to money laundering or gaming integrity.This marks a big shift – in the past ARJEL supervised only around 11% of the country’s gambling industry, whereas ANJ now regulates 78% of a market that recorded €50bn in stakes and €11bn in gross gaming revenues in the past year and is the third largest igaming market in Europe. That kind of financial heft carries a lot more weight when discussing regulatory and tax issues with politicians and legislators.And although FDJ’s regulatory aims have always been different, and are likely to remain that way for some time, to those of Unibet or Betclic, the fact that the whole of its corporate entity now comes under ANJ’s regulatory supervision will mean a more cohesive approach when it comes to operators lobbying for regulatory changes.The changes were organised to come into play in chronological order and “as a whole the French online gaming and betting sector views them in a positive light”, Hervé Schlosser, vice-president of the country’s igaming trade body Association Française du Jeu en Ligne (AFJEL), tells iGB.“We have been calling for a single regulator to supervise the whole of the industry for some time, so this is a good sign of progress. The fact that both PMU and FDJ’s land-based activities are now under ANJ’s regulatory remit provides a more efficient structure, a better economic view and some uniformity of thinking between online and land-based activities.”Diane Mullenex, head of the betting and gaming practice at the law firm Pinsent Masons, echoes those thoughts: “ANJ will have oversight of the whole sector so there will be better coordination and a more global perspective, which will be a good thing.”In terms of leadership, the arrival of Falque-Pierrotin as the new president of ANJ is likely to also mark a change to its approach to regulation. “As head of the CNIL she enabled the authority to evolve at great pace and had a major impact on the market,” says Mullenex.Player focus “Whether in terms of execution or governance as well as the data privacy areas CNIL covered, she modernised the organisation and updated its way of working and the outlook it could take on issues that have become hugely important in the online space.”Falque-Pierrotin headed up the CNIL from 2011 and was in post when the pan-European GDPR measures came into effect in 2018. She has always insisted that the major tech giants should respect European citizens’ data privacy rights.As part of her work with the European Commission’s Article 29 Data Protection Working Party she wasn’t shy in reminding the tech giants of their responsibilities under the ‘Safe Harbour’ data agreement between the US and Europe. In other words, she has dealt with (much) bigger fish than igaming operators and has shown that she is not afraid of taking positions on key issues.And as ANJ’s launch document states, with more than half the French population taking part in some form of gambling (lottery included), “the growth of the sector must be based on an offer that is recreational and honest. The regulator must ensure those principles are respected”.She tells iGB in a forthcoming interview: “I wish to place the players at the heart of the regulation. For that to be real and effective, I want ANJ to be as close as possible to the gambling experience and the uses (playing habits) of the players, by articulating its action around three fronts: information, service and capitalisation on the collective intelligence of the players.“Also, the transfer of the management of the file of banned players from the Ministry of Home Affairs to the ANJ starting from September will be an opportunity to make players more in charge of their own gaming activity. Indeed, the ANJ will propose a new registration process and a real tool for self-protection and control of the game, faster and less guilt-ridden. Concretely, a motivational interview with the ANJ staff will be carried out with the players in order to direct them, if necessary, to healthcare professionals.”But while perceptions over how safe (or not) online gambling is can vary substantially according to what people hear or read, and the crossover between channels, notably mobile and how it pervades nearly all aspects of people’s lives, means the borders between physical and remote gambling are getting increasingly blurred. On a regulatory level, the fact that ANJ oversees all platforms means it should have a better view of how, where and when players go overboard in terms of responsible gambling.ODJ stats and detail For Schlosser this is positive as ANJ is a single authority overseeing all these questions and will watch over both platforms. “But it must also look at issues like the fact that it is very difficult for players who have self-excluded or minors to access online games. That is not the case with physical outlets, where there are minimal identity or age verification procedures in place. Those tools are widely utilised in online settings, they should be applied to land-based environments.”This point is often made by executives in the online industry and in their view, it signals a lack of knowledge about how websites ensure the majority of their players are gambling safely. Such stereotypes are also encouraged across much of the mainstream press. The public health study published by the country’s Observatoire des jeux (ODJ) in late June added to that stereotype, says Schlosser.While take up of online poker (2.9% of gamblers) and betting on horse racing (7.7%) fell over the past five years, sports betting participation rose from 6.6% of gamblers to 11% in 2019, but interestingly ODJ’s 2019 annual report also reveals that levels of customer spend dropped between 2014 and 2019.The report states: “The sports betting sector is the main reason for this drop in spending. The average spending levels per player account dropped 10% from 2017 to 2018. A major reason for this is likely down to new recreational players opening accounts during the 2018 World Cup.”Positive overall For Schlosser, “the ODJ data shows that out of three million active player accounts in 2018, average player spending levels dropped from €343 in 2017 to €308 in 2018, which is approximately €25 a month. This shows that stories of players overspending on online gambling are not backed up by the data, while there is little visibility on the offline-online spending split. Sporting integrity is also strong in France and there are very few cases or stories of match-fixing (linked to online sports betting). This is because bets on lower level sporting events are not allowed in order to protect them.”Mullenex says while having a single regulator in the form of ANJ is positive for the French igaming sector, she also cautions: “Post-Covid there will be a desire to protect French companies and as politicians deal with bigger issues to do with the tech giants and privacy, it’s hard to know how much bandwidth there will be for gambling. Much will also depend on the performance of FDJ, as its privatisation and the launch of ANJ were coordinated to go hand in hand.”With online’s share of the French gambling market rising to 55%, it is clear dot fr operators have consolidated their position in the country’s gambling landscape in the past 10 years. And although FDJ’s privatisation and the coming into effect of ANJ are not directly linked to this trend, the igaming sector now holds its own in France’s regulatory structures.As Schlosser of AFJEL says: “Online operators are now meaningful actors, even if offline remains a huge sector; and it is positive to have a single authority overseeing the sector. As operators the tools are in place to ensure the highest levels of player safety and responsible gambling. We want to continue building on these solid foundations and ensure the online sector has safe, responsible and entertaining offers to promote to its players.” Casino & gameslast_img read more

Playtech revenue falls 22.5% as Covid-19 disrupts first half

first_imgIt then recorded an €815,000 share of profit from its discontinued social and casual gaming business, that was sold to US publisher Tilting Point earlier this year. After a €899,000 foreign exchange adjustment, plus €65,000 in charges related to employee terminations, Playtech’s net profit for the period was €4.4m, down 81.5%. However, when this was adjusted to remove the impairment charges, fair value changes and profit from items held for disposal – plus reducing the depreciation and amortisation charges, adjusted profit was down 45.4% at €52.4m. Retail sport revenue was also down, falling 14.1% to €8.5m, due to retail closures resulting from Covid-19. Topics: Finance Tech & innovation Platform Finance Gaming solutions giant Playtech has reported a 22.5% year-on-year decline in revenue for the first half of 2020, after a strong start to the period was halted by the impact of novel coronavirus on B2B and B2C operations. However, Playtech said that if Asian revenue and the H1 2019 hardware sales were excluded, B2B gambling revenue had actually proved resilient during the pandemic, remaining flat year-on-year, and up 2% on a constant currency basis. Revenue for the six months to 30 June declined to €564.0m (£513.0m/$664.6m), with a strong performance from its financials division TradeTech unable to offset a 13.5% drop in B2B revenue, and a 41.0% drop in B2C’s contribution. Bingo and poker, meanwhile, performed strongly under lockdown, aided by Playtech growing its poker network by signing up 19 brands, including a number in the wake of Microgaming shutting down its network. In the wake of lockdown being eased and live sports returning, revenue had normalised, but still remains above prior year levels, the supplier added. Playtech explained that B2B revenue declined as a result of retail activities around the world being brought to a halt by government measures to slow the spread of Covid-19, and a decline in Asian revenue. Retail B2B revenue was down 54% during the period, though this was improved slightly to a 43% drop when one-off hardware sales in the Playtech Sports division from H1 2019 were excluded. Its online casino business signed up over 50 new brands during the period, and expanded relationships with existing clients such as GVC Holdings and bet365, its first US client. Companies: Playtech Total gambling revenue for the period, after €6.5m in inter-company eliminations, was down 30.8% at €476.7m. This broke down to €229.7m from B2B operations, and €253.5m from B2C. After €6.0m in income taxes, Playtech posted a €4.5m profit from continuing operations. Adjusted profit, meanwhile, came to €44.6m, down from €75.4m in the prior year. While online sports’ contribution declined significantly in a period where most sporting events were cancelled or postponed, every other online vertical saw revenue grow strongly, it added. Gaming solutions giant Playtech has reported a 22.5% year-on-year decline in revenue for the first half of 2020, after a strong start to the period was halted by the impact of novel coronavirus on B2B and B2C operations. Playtech’s standout performer in the first half – and the only division to grow – was TradeTech, the financials business which it is in talks to divest. TradeTech benefitted from increased market volatility and trading volumes, particularly in March and April, resulting from Covid-19 creating large price movements in major instruments. This led to a 123.4% year-on-year increase in revenue, to €87.3m. Playtech revenue falls 22.5% as Covid-19 disrupts first half “The scale of our technology and the breadth of our product offering mean Playtech can capture commercial opportunities in the fast-growing US and Latin America markets outside the remit of traditional B2B suppliers and we are investing in accelerating this strategy.”  Subscribe to the iGaming newslettercenter_img This left earnings before interest, tax, deprecation and amortisation (EBITDA) of €138.1m, down 14.7% year-on-year. However, Playtech’s adjusted results, which eliminate non-cash and one-off items, and which its board said better reflected its H1 performance, suggested an EBITDA decline of 15.8% to €162.3m. Depreciation and amortisation charges declined to €107.1m, while charges related to the impairment of tangible and intangible assets amounted to €7.2m. After financial costs of €35.2m, plus profit share from joint ventures and associates, fair value changes of assets and equity investments and a €13.4m profit from an asset held for sale – presumably TradeTech – actual pre-tax profit came to €10.5m. The decline in revenue led to a decline in distribution costs for Playtech in the first half, which declined 28.6% to €344.0m, while administrative expenses were down marginally at €74.8m, and impairment charges for financial assets rose to €7.1m. This decline could have been greater were it not for a strong online performance, with igaming revenue up 37% for the period. Email Address Brazil, it said, was an “interesting opportunity”, while other jurisdictions such as Peru and Argentina are expected to open up in the coming years. In the early stages of the second half, Playtech said it has seen strong trading and cash generation throughout July and August, though noted that July was the stronger of the two months. In the medium term, Playtech believes its technology and strong balance sheet positions the business to recover strongly from the Covid-19 disruption and take advantage of new opportunities. Key among these is the US, where the business has a strong pipeline of potential new customers, and is in the process of securing licences to move into states beyond New Jersey. “As well as increasing our work with existing tier one licensees and adding more than 50 new brands to our SaaS model, we have also continued to execute our expansion into strategically important markets such as the US with our first launch in New Jersey and further structured agreements in Latin America,” Playtech chief executive Mor Weizer said. Turning to B2C operations, Snaitech was by far the largest source of revenue, though its contribution declined 45.6% to €215.5m. This was blamed on Covid-19, which shuttered Italian betting shops and the lack of sporting events. Asia, meanwhile, saw revenue decline 35% on a constant currency basis, which Playtech blamed the impact of Covid-19. AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter White label revenue, meanwhile, was up 21.4%, thanks to an “outstanding” performance from Sun Bingo. That brand alone saw revenue grow 61.1% to €28.2m, more than offsetting a steep drop in other white label revenue, which fell to €1.2m. Playtech said this was due to efforts to consolidate or cease certain brands’ operations during the period. 17th September 2020 | By Aaron Noy The adjusted profit, which reduced the share of profit from discontinued operations to €393,000, came to €43.7m, down 43.7%. With a long-term partnership in place with Caliente in Mexico and a major agreement signed with Wplay in Colombia in H2 2019, Playtech also sees scope for further growth in Latin America, especially after signing partnerships in Guatemala and Costa Rica in 2020. Online is expected to continue to perform strongly going forward, though management remains cautious about retail’s outlook, and TradeTech’s first half performance is not expected to continue into H2, with market volatility significantly lower.last_img read more