iGaming Wrap-Up of CW 20-21
#iGaming News of the week
0. Five things we know about France’s proposed online casino regulation
Despite being home to a large and active online betting market, as well as boasting more than 200 land-based casinos, online casino is strictly prohibited in France.
Last week, however, a new legislative bill was introduced in France’s National Assembly which proposed to change that, as Democratic Movement politician Philippe Latombe set out a slew of guidelines for the legalisation of online casino in France.
Below, iGaming NEXT sets out key background information and characteristics of the newly proposed bill, in order to see what a regulated online casino sector could look like in France.
1. Proposed timeline
2. Market access
3. Potential market size
4. Tax rates
5. Market oversight
Latombe suggested in the bill that the regulator’s land-based experience would allow it to ensure “global control of physical and electronic casino games” and “preserve the overall balance of the rules” governing online casino.
#Breaking News
1. GiG confirms 2023 exit of CEO Richard Brown
The board of Gaming Innovation Group (GiG) has confirmed that CEO Richard Brown will conclude his leadership tenure at the Nasdaq Stockholm igaming technology supplier on 31 December 2023.
This decision comes as GiG continues its strategic review, announced in February, which upholds the objective of splitting the company into two separate businesses of GiG Media and Platform-&-Sportsbook solutions.
Investors were notified that “the Board is pleased to share that the strategic review is making good progress. GiG Media will continue under its current senior leadership, and a search for a new CEO for Platform & Sportsbook has commenced.”
Richard Brown, a company executive since 2017 who oversaw the group’s fast-growing media division, was promoted to CEO in November 2019, succeeding former co-founder Robin Reed.
2. DSWV Directs Attention to Objections to Advertising Ban
The German Sports Betting Association (DSWV) published a press release on its website to direct the public attention to the opposition to the proposed ban on sports betting advertising by the federal states expressed by one of the CDU members of parliament from Saxon-Anhalt, Tobias Krull.
Impeding on Federal States’ Powers
In his statement, Krull openly criticized the proposed ban on sports betting advertising by the Federal Drug Commissioner and SPD member, Burkhard Blienert, outlining that the proposed bans on sports betting advertising and sports sponsorships will be in conflict with the stipulations of the State Treaty on Gambling, will interfere with the federal states’ competencies and take away from their powers.
“Approved game and betting providers are bound by strict guidelines on youth protection and addiction prevention,” Krull wrote, pointing out that an advertising ban for legal offers presents “a considerable risk that unregulated gaming opportunities will be used more frequently without the appropriate support and protection mechanisms.”
3. Twitch CEO insists there is “no problem” with streaming regulated gambling
Dan Clancy, CEO of live streaming platform Twitch, has suggested that the company has “no problem” with users streaming regulated gambling activity.
The executive expressed his views on gambling in a virtual interview with streamer ‘Filian’, who sought additional clarity following changes to Twitch’s gambling policy last year.
In September 2022, the platform announced that it would prohibit live streams of certain high-profile gambling sites, including Stake.com and Roobet, which had previously been promoted on the site by the likes of Canadian rapper Drake, among others.
Clancy’s most recent comments suggested that rather than Twitch being opposed to showing gambling content altogether, the reason for the ban was that the sites in question were offshore-based operators without local licences in the jurisdictions where they operate.
“The thing that was growing was these unregulated offshore gambling sites,” Clancy said.
4. Lottery groups face €1m penalty in the Netherlands over licence breaches
The Netherlands’ gambling regulator de Kansspelautoriteit (KSA) has warned two lottery operators that they face fines of up to €1m if they continue to offer games not covered by their licences.
The KSA has imposed an order subject to periodic penalty payments on Postcode Loterij and VriendenLoterij for offering online games that are not permitted according to their lottery licences.
The two lottery operators said they will appeal the decision but will temporarily stop offering the games from 8 June.
The regulator said the operators would be liable to pay a penalty of €250,000 per week, up to a maximum of €1m, should they offer the games again.
5. Peru to triple online licence cost in shakeup of gambling law
The Commission of Economy, Central Bank, Ministry of Finance, Financial Intelligence Unit and the Congress of Peru approved this Thursday (25) the new rules that will establish the legal framework for gambling in the country. New regulations will triple the cost of new gaming licences to US$ 808,000.
The amended Law No. 31557 establishes a 12% point of consumption tax. The Peruvian sports betting association (APADELA) has criticised the previous version of the law for effectively exempting foreign operators from the gaming tariff by only taxing Net Win.
The new law also ended the practice of retail licences. Under the new regulations, points of sale will be required to pay a warranty of US$ 7,000 in order to offer gaming services.
New Know Your Customer (KYC) rules are to be included. Players will be required to register to place bets, as opposed to the previous status quo where many bet anonymously.
6. Entain expects “substantial financial penalty” over former Turkey business
The owner of Ladbrokes and Coral bookmakers has said it is likely to incur a “substantial financial penalty” from an investigation by UK authorities into possible bribery offences by one of its former Turkish subsidiaries.
The gambling group Entain said in a statement to shareholders that it was negotiating a deferred prosecution agreement with the Crown Prosecution Service (CPS), and was working towards resolving an inquiry by HM Revenue and Customs.
Shares in the Isle of Man-based sports betting and gaming group fell by as much as 3.3% during morning trade on Wednesday after the announcement, briefly making it the biggest faller on the FTSE 100, before recovering some losses.
HMRC began examining “potential corporate offending” in late 2019 relating to a Turkish-facing online betting and gaming business that Entain owned between 2011 and 2017.
At the time, the group – which also owns the Gala, Foxy Bingo and partypoker brands – was ordered to provide the tax authority with information relating to the Turkish subsidiary.
7. Macau and Las Vegas report monthly revenue, with Macau 366% up annually
HONG KONG, June 1 (Reuters) - Casino revenues in Macau, the world's biggest gambling hub, surged 366% from a year ago to total 15.6 billion patacas ($1.93 billion) in May, the highest since January 2020, when the COVID-19 pandemic had still to fully grip China.
The monthly take was bolstered by a five-day national holiday that saw hundreds of thousands of visitors flock to the special Chinese administrative region, which is the only place in China where citizens can legally gamble in casinos.
China lifted strict COVID-19 restrictions in January, allowing visitors to swarm into Macau for the first time in more than three years.
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Around 500,000 people visited the former Portugues colony during the five day Labour Day holiday at the start of May, crowding onto its pastel coloured streets surrounding historical sights Senado Square and the Ruins of St Paul's and packing its glitzy casinos.
#US / Canada
8. North Carolina: Senate passes sports betting bill by 38 to 11
The state is scheduled to open its regulated market next January.
The North Carolina Senate has passed a recently proposed bill that would regulate sports betting throughout the state. House Bill 347 passed by a vote of 38 to 11 in the Senate on its second reading.
However, the Senate made several changes to the bill, which would need to be approved by the House before Governor Roy Cooper could sign it into law.
The bill would not take effect until January 8, 2024 and states, "sports wagering shall not be authorized in the state until a date identified by the [Lottery] Commission, which shall occur as soon as practicable and may be no later than twelve months after the date this act becomes law."
Once North Carolina’s regulated sports betting market is in place, the Lottery Commission will be permitted to award up to 12 licenses to operators statewide. Players would then have access to online and mobile betting.
9. Tennessee breaks ground as first state to tax on total sports betting handle, not revenue
Sportsbooks operating in Tennessee will soon begin paying taxes based on wagers rather than revenues. The new law goes into effect on July 1.
Tennessee Gov. Bill Lee (R) recently signed into law Senate Bill 475, which implements a first-of-its-kind state tax on sports betting handle, replacing a previous structure in which taxes were collected on revenues.
When the new law goes live, operators will be subject to a 1.85% tax on handle, the amount wagered each month, replacing a 20% tax on gross revenue. However, operators can also deduct a federal excise tax of .25% per wager before calculating the new state tax.
The new law also replaces a flat $750K renewal fee for operators with a tiered system, ranging from $375K to $750K, based on operator revenues. It will also eliminate the required 10% hold for sportsbooks.
The law makes several other changes, including renaming the regulatory agency from the Sports Wagering Advisory Council to the Sports Wagering Council.
#M&A & Finance
10. XLMedia sells off parts of Personal Finance unit for $1.3m
XLMedia has announced that it partially sold its Personal Finance Unit to MPD Media for $1.3 millionXLMedia Partially Sells Personal Finance Unit for $1.3M to MPD.
After announcing its partnership with bet365 as part of a new revenue-share contract with the purpose of promoting responsible gambling on the North American market at the start of May, XLMedia is finishing the month with another big announcement.
The global digital media company has partially sold its Personal Finance assets including various websites and domains such as Greedy Rates, Young and Thifty, and Investor Junkie.
MPD Media has agreed to pay a total cash consideration set at $1.3 million in exchange for the platforms owned by XLMedia’s subsidiaries that offer financial tips and consumer reviews.
11. Sportech revenue up to $68.7m in first four months of 2023
Sportech said that overall betting handle hit $68.7m (£55.3m/€64.0m) in the first four months of 2023, a rise of 5.2%.
In a trading update ahead of its annual general meeting being held later today (30 May), Sportech said that sports betting experienced a “stable rate of growth” during the period.
Richard McGuire, executive chairman of Sportech, said that focusing on the operator’s pari-mutuel licence has allowed it to expand its reach across new markets.
“We are delighted to share the news of our strong start to the year, which can be attributed to the outstanding efforts of our management team,” said McGuire. “By capitalising on our exclusive pari-mutuel betting licence, we have successfully tapped into a new demographic of sports betting enthusiasts, opening up valuable cross-selling opportunities.
#Legal & Regulation:
12. KSA clarifies rules on Dutch Untargeted Advertising ban
Kansspelautoriteit (KSA), the Netherlands Gambling Authority, has issued new guidance to clarify the upcoming rules of the Dutch government’s ban on ‘Untargeted Advertising’.
Authorised by the Dutch Ministry of Justice and Security, from 1 July all Dutch-licensed operators must abide by the rules of a ban on untargeted advertising imposed across ‘all public media platforms’.
The ban has been introduced as part of the government’s ongoing review of the Remote Gambling Act (KOA), which launched the Netherlands online gambling marketplace in October 2020.
Updating stakeholders, KSA outlined that “starting 1 July, a ban on untargeted advertising for online games of chance will take effect to protect vulnerable groups, including minors and young adults, from potential gambling addiction”.
In its remit KSA will oversee the enforcement of the new advertising regulations and inform licence holders about marketing standards and required campaign changes.KSA clarifies that ‘untargeted advertising’ relates to any form of publicly visible advertising promoting gambling or betting via TV, radio, print media and outdoor spaces.
13. Dutch National Postcode Lottery faces fine for offering online casino games
The National Postcode Lottery and Friends Lottery have become the latest entities to fall foul of the Dutch gambling authority, Kansspelautoriteit, with an order subject to periodic penalty payments subsequently imposed.
This is due to each offering online games that are not permitted according to the lottery permits held. If this is not ceased immediately, both parties will pay a penalty of €250,000 per week up to a maximum of €1m.
The National Postcode Lottery offers the Games Lottery on its own website via the Deal or no Deal, Suitcase hunt, ONE against 50 and Move That Truck titles.
Following an investigation, the Ksa determined that these represent online casino games that are not covered by the lottery licence possessed by the group.
14. Australian media watchdog seeks cooperation with Curaçao in enforcing gambling regulations
The Australian Communication & Media Authority (ACMA) has appealed to the Curaçao government for assistance in tackling offshore gambling operators targeting the Australian market. The regulator is said to have written to Curaçao Finance minister Javier Silvania to highlight the ongoing gambling reforms in the Dutch Caribbean island and request action.
The letter addressed Curaçao “master” licence holders found to breach Australian laws by providing or advertising prohibited interactive gambling services to Australian customers. It outlined a list of violators who have engaged in the promotion or provision of igaming products in Australia, many of whom have evaded fines.
The ACMA acknowledged the challenges it faced in enforcing penalties due to the global nature of online gambling and expressed a desire to establish regulatory collaboration with overseas gambling regulators, including the Curaçao Gaming Authority (CGA).
15. Rivalry launches Gen Z-focused esports betting mobile app in Ontario
Esports betting specialist Rivalry has launched a mobile app targeting Millennials and Gen Z users in Ontario, Canada.
The app, a first for Rivalry, was specifically designed to cater to digitally native individuals, while incorporating elements from gaming culture into its product design.
“Mobile betting is a significant addition for our Ontario operations and core audience of Millennial and Gen Z consumers that prefer the flexibility of betting on their phones,” said Rivalry CEO Steven Salz.
“Launching a mobile app adds an important layer of accessibility to our product, increasing our addressable market in Ontario, and allowing us to bring esports betting to more customers in the region and ultimately grow the category,” he added.
Millennial and Gen Z bettors represent 97% of Rivalry’s active users. However, before venturing into mobile, Rivalry said it prioritised its core offering and focused on developing its proprietary product.