News

5
Jun

BOS general secretary: Regulatory interference could be hampering fair competition in Sweden

New measures in Sweden to deal with the coronavirus pandemic are not based on evidence and will push channelisation rates as low as they were before re-regulation, according to a trade association.

In April, minister for social security Ardalan Shekarabi announced temporary measures aimed at player safety during the pandemic, including weekly deposit limits of SEK 5,000 ($537), but has since excluded horseracing and sports betting from restrictions.

But the general secretary for Swedish online gambling trade association Branschföreningen för Onlinespel (BOS) believes the measures will have the opposite effect on the Swedish market.

Gustaf Hoffstedt told Gambling Insider: “The biggest fear with these restrictions is it will drive players to the black market. We presented an independent channelisation estimation made by Copenhagen Economics which showed channelisation in Sweden is at 80-85%.

“What was even more troublesome was that estimation showed online casino has channelisation of 75% and still dropping. This was prior to the new measures.

“We expect channelisation to drop even further, maybe as low as the figure before re-regulation.

“Sweden re-regulated for the very reason that channelisation was very low and, 18 months later, the Government is taking measures it seems will push punters outside of the licensing system; and we will be back to the very situation we faced two years ago.”

Hoffstedt also questioned the Government’s temporary measures, to be introduced in July, which are based on the notion consumers have shifted to online casino and sports betting has significantly dropped.

However, the BOS general secretary said figures from the Swedish Tax Authority shows horseracing betting has increased by up to 40%, while there is no proof online casino has risen.

The Government has representation on the board of horseracing operator ATG and state-owned operator Svenska Spel.

Hoffstedt added: “It is obvious the revised restrictions are not connected to any kind of customer protection measure, judging by the statistics.

“I can at least note the gambling verticals that are excluded from the measures are usually the main products from operators with very close connections with the Government.

“It comes as no surprise to me horseracing and sports betting products are excluded from the responsible gambling measures. I think we are getting closer to a situation when we have to face the real reason may be interference, when it comes to fair competition regarding gambling in Sweden.”

5
Jun

NBA APPROVES RESTART OF 2019/20 SEASON WITH 22 TEAMS

The National Basketball Association (NBA) board of governors has approved a competitive format to restart the 2019-20 season at the end of July.

The board’s approval is the first formal step towards resuming the season, with 22 teams returning to play from a tentative start date of Friday 31 July.

The NBA is finalizing a comprehensive season restart plan with the National Basketball Players Association (NBPA), working with infectious disease specialists, public health experts and government officials to establish a rigorous program to prevent and mitigate the risk related to COVID-19, including a regular testing protocol and stringent safety practices.

The season restart is also contingent on an agreement with The Walt Disney Company to use Walt Disney World Resort near Orlando, Florida, as a single site for all games, practices and housing for the remainder of the season.

The 22 returning teams will be the 16 teams (eight per conference) in current playoff positions, and the six teams that are currently six games or fewer behind the eighth seed in their respective conferences.

“The board’s approval of the restart format is a necessary step toward resuming the NBA season,” said NBA commissioner Adam Silver. “While the COVID-19 pandemic presents formidable challenges, we are hopeful of finishing the season in a safe and responsible manner based on strict protocols now being finalized with public health officials and medical experts.

“We also recognize that as we prepare to resume play, our society is reeling from recent tragedies of racial violence and injustice, and we will continue to work closely with our teams and players to use our collective resources and influence to address these issues in very real and concrete ways.”

The 2019-20 season will conclude with a traditional playoff format with best-of-seven series in the first round, conference semifinals, conference finals and the NBA Finals.

If the season resumes on 31 July, the 2020 NBA Draft Lottery will be rescheduled for 25 August. The 2020 NBA Draft will be held on 15 October, and the 2020-21 NBA regular season will likely begin on 1 December.

The 22 returning teams for the season restart are: the Milwaukee Bucks, Toronto Raptors, Boston Celtics, Miami Heat, Indiana Pacers, Philadelphia 76ers, Brooklyn Nets, Orlando Magic and Washington Wizards from the Eastern Conference and the Los Angeles Lakers, LA Clippers, Denver Nuggets, Utah Jazz, Oklahoma City Thunder, Houston Rockets, Dallas Mavericks, Memphis Grizzlies, Portland Trail Blazers, New Orleans Pelicans, Sacramento Kings, San Antonio Spurs and Phoenix Suns from the Western Conference.

4
Jun

LOUISIANA GAMING CONTROL BOARD GETS NEW LEADERSHIP

Louisiana Governor John Bel Edwards has appointed Lieutenant Colonel Mike Noel of the state police as the new chairman of the Louisiana Gaming Control Board.

Noel has served with the force for over 30 years, most recently as assistant superintendent and chief of staff, prior to which he spent 17 years as the command inspector of the Gaming Enforcement Division. He also served on the Riverboat Economic Development and Gaming Task Force in 2016 and 2017.

Noel assumes the role vacated by Ronnie Jones, whose seven-year tenure as chairman ended earlier in the week after senators failed to confirm his reappointment.

“I’m pleased that LTC Noel has accepted the position to head the Gaming Control Board. He brings a wealth of experience and knowledge and has served the state well during his tenure with State Police, which is why I have no doubt he will do the same in this new role,” said Governor Edwards. “I look forward to working with him and continuing to build on the successes of former Chairman Jones and strengthening our relationship with the gaming industry.”

Commenting on his new role, Lieutenant Colonel Noel said: “I am humbled and appreciative of Governor Edwards for having the confidence in me to be successful in this appointment.

“I have spent my entire professional life in public service and I am excited to continue that service as chairman of the Gaming Control Board. I look forward to building upon the success of Chairman Jones’ tenure by continuing to work with the Board, elected officials, industry representatives and the public to promote economic development and ensure the integrity of gaming in Louisiana.”

26
May

SWITZERLAND ADDS 15 DOMAINS TO IGAMING BLACKLIST

The Swiss Lottery and Betting Board has expanded its blacklist of unlicensed online gambling operators.

The latest update from Commission des loteries et paris (Comlot) has seen 15 domains added to the blacklist of unauthorized sites, which are now subject to blocking by Swiss internet service providers.

The latest additions to the blacklist are alpenwetten.com, bahigo28.com, eurolloto.com, eurolloto.me, exbeteu.com, exclusivebet.com, exclusivebet.eu, exclusivebeteu.com, fortunejack.com, gwbet.com, helwettia.com, heritagesports.eu, interwetten7.com, solobet14.com, and wettpionier.com.

Sportradar
There are now a total of 116 domains on Comlot’s blacklist of operators targeting customers in Switzerland without a local license.

24
May

SWEDEN RECORDS OVERALL GAMBLING DECLINE BUT MOST ONLINE OPERATORS GROWING

Swedish gambling regulator Spelinspektionen has released data showing an overall decline in online betting and gaming during the COVID-19 pandemic, although operator performances vary.

The data shows that the licensed online gambling market in Sweden grew by 21 per cent in January 2020 compared to January 2019, when the regulated market first opened. Revenue in February 2020 was 9 per cent ahead of the same month a year ago, with the market declining by 5.9 per cent in March and an estimated 5.4 per cent in April.

The fall in online revenue was not evenly shared, with 55 per cent of Sweden-licensed online operators growing revenue in March 2020 versus a year ago, while 58 per cent of licensees have so far reported year-on-year growth in April 2020.

The report also shows that 51,674 people had registered to exclude themselves from gambling with the national Spelpaus system by 14 May, with the majority (35,000+) choosing an indefinite period of self-exclusion.

On the issue of unlicensed gambling, the report estimates that the regulated online gambling market accounts for around 88 per cent of consumers, but also acknowledges difficulties faced by the regulator in combatting unlicensed operators.

Sportradar
These include a reluctance by telecoms companies to serve warning messages to consumers who attempt to access unlicensed websites, as well as banking secrecy laws which prevent the regulator from obtaining the account numbers of unlicensed operators for payment blocking purposes. Both are areas of focus for Spelinspektionen, which is seeking increased cooperation with ISPs, the financial regulator Finansinspektionen, and the Swedish Bankers Association.

The Spelinspektionen report is the first in a series of monthly reports on the development of the Swedish gambling market during the COVID-19 pandemic.

21
May

NORWAY APPROVES NEW LAWS TO PREVENT UNLICENSED GAMBLING ADVERTISING

The government of Norway has taken further steps to try and protect the nation’s gambling monopoly with new restrictions on gambling advertising by offshore operators.

The newly approved legislation gives the Norwegian Media Authority powers to combat advertising by unlicensed online gaming operators, both on TV and the internet.

The new powers allow the Media Authority to stop unlicensed gambling advertising from being broadcast into Norway by foreign satellite TV channels and impose a requirement on telecoms providers to display an illegal gambling warning message to Norwegian consumers who attempt to access offshore websites.

“I am very pleased that parliament has approved the Government’s proposal to provide the Media Authority with new tools to stop advertising for gambling that is not authorized in Norway,” said the Minister of Culture and Gender Equality Abid Q. Raja.

“So far we have not had the necessary tools to enforce the advertising ban on foreign players. But with this provision, the Media Authority is empowered to impose a duty on internet owners and distributors to prevent access to advertising for illegal gambling.”

Sportradar
Under Norwegian law, most forms of gambling are offered by monopoly operator Norsk Tipping, with the exception of horse race betting, which is a monopoly held by Rikstoto. Yet despite their illegality, offshore gambling sites continue to be popular among Norwegian consumers.

The Norwegian government says that the new advertising restrictions will help to better protect problem gamblers.

19
May

IGT SLIPS TO Q1 LOSS AS COVID-19 WRITE-DOWNS IMPACT RESULTS

New York-listed supplier International Game Technology (IGT) has reported an 18 per cent fall in revenue to $940.2m for the first quarter of 2020, as results were affected by COVID-19 related lockdowns in March.

The company said that the global closure of casinos and gaming halls and widespread mobility restrictions significantly hindered gaming service revenue generation during the quarter, while lottery service revenue was lower due to reduced traffic to points of sale.

“After a solid start in the first two months of the year, we quickly shifted our focus to the global COVID-19 health crisis in March,” said IGT CEO Marco Sala. “The safety and well-being of our people, customers, and communities have been our highest priority since day one.

“We implemented robust business continuity plans and maintain service levels at our normal, high standards. I am grateful for the passion and perseverance the entire IGT team has demonstrated during these unprecedented times and I am confident IGT is well positioned to emerge from the crisis a stronger, even more competitive organization.”

Q1 2020 Revenue Comparison (US$)

Q1 2020 Q1 2019 % Change
North America Gaming & Interactive 196m 240m (18%)
North America Lottery 251m 296m (15%)
International 164m 172m (1%)
Italy 329m 437m (25%)
TOTAL 940m 1,145m (18%)
Revenue from North America Gaming & Interactive declined by 18 per cent year-on-year to $196m as casino closures impacted gaming terminal revenue, while North America Lottery revenue fell by 15 per cent to $251m as results were hit by mobility restrictions implemented in March and the closure of video lottery terminal (VLT) venues.

International revenue was down 1 per cent at $164m, while revenue from Italy declined by 25 per cent to $329m following decreases in lottery and gaming service revenue as a result of the effects of the coronavirus pandemic, although interactive wagers were up 20 per cent.

Total operating expenses increased by 18 per cent to $1.14bn after including a non-cash goodwill impairment charge of $296m, reducing the carrying value of the International and North America Gaming & Interactive segments, driven by lower near-term forecasts as a result of COVID-19.

As a result, the company recorded an operating loss of $197.3m for the quarter, compared to operating income of $178.2m a year ago. Following a reduction in non-operating expenses by 25 per cent to $33.7m, IGT posted a net loss of $234.1m, compared to net income of $80.5m in Q1 2019.

SBTech
Q1 2020 Results Comparison (US$)

Q1 2020 Q1 2019
Revenue 940.2m 1,144.9m
Cost of Services (521.8m) (595.3m)
Cost of Product Sales (91.1m) (100.2m)
Selling, General and Administrative (163.6m) (201.8m)
Research and Development (60.7m) (66.1m)
Goodwill Impairment (296.0m) —
Other Operating Expense, Net (4.2m) (3.3m)
Operating Income/(Loss) (197.3m) 178.2m
Total Non-Operating Expenses (33.7m) (45.0m)
Provision for Income Taxes 3.1m 52.7m
Net Income/(Loss) (234.1m) 80.5m
Net Income Attributable to Non-Controlling Interests (14.2m) (40.2m)
Net Income/(Loss) Attributable to IGT (248.3m 40.3m
Basic EPS (1.21) 0.20
“We’ve taken swift actions across all non-essential costs and are now switching our focus to structural cost savings initiatives,” said IGT chief financial officer Max Chiara. “At the same time, we have adopted strict measures to preserve liquidity in the current environment.

“Given the uncertainty created by COVID-19, we are withdrawing our previous financial outlook for 2020, but we are confident that with $2.2bn of liquidity, we are geared with sound financial flexibility to weather the storm caused by the COVID-19 pandemic.”

IGT added that about $500m in cost savings and capital spending avoidance have been identified to help mitigate the impact of COVID-19. These actions include temporary, company-wide salary reductions, furloughs and a hiring freeze, as well as significant reductions in discretionary costs such as marketing, travel and outside services

As at 31 March the company held liquidity totaling $2.2bn, comprised of $1.5bn in unrestricted cash and $743m available under revolving credit facilities.

Shares in International Game Technology plc (NSQ:IGT) closed up 8.62 per cent at $6.93 per share in New York Friday.

12
May

UK GAMBLING COMMISSION IMPOSES NEW RESTRICTIONS ON INDUSTRY

With the United Kingdom beginning to relax its lockdown restrictions and new research showing an overall fall in gambling participation during the lockdown, the Gambling Commission has today introduced new restrictions on the regulated industry.

The new guidance follows the Commission publishing data showing the impact that COVID-19 is having on consumers and the industry so far.

This data shows that 0.2 per cent of UK adults have started gambling for the first time during the lockdown, compared to 1.8 per cent who have stopped gambling altogether. More people have also reduced the amount of money spent on gambling than those that have increased spending, with the same true for the amount of time spent gambling.

The Gambling Commissions says that while there is no evidence to suggest an increase in problem gambling, the shift in the market as a result of COVID-19 shows an increase in the use of certain gambling products such as online slots, poker, casino gaming and virtual sports.

This can be explained by the lack of sporting events to bet on, which has resulted in players switching their spend to other gambling products, including the National Lottery.

One of the factors driving the new restrictions appears to be the longer play sessions reported by a minority of players, which could be explained by the switch to more time-consuming games such as online poker and virtual sports.

The new guidance includes additional affordability checks, blocking customers from changing their mind about making withdrawals, and restrictions on bonus offers, with online operators expected to introduce them as soon as possible and for the duration of the lockdown.

Sportradar
“Operators must use the data they hold to protect their customers and now, more than ever, it’s vital that online operators really know their customers by monitoring how long they are playing for and understanding how financial uncertainty is impacting them and what they can afford to gamble with,” said UKGV chief executive Neil McArthur.

“To ensure operators do that, we are strengthening our guidance and expect operators to take account of that to prevent bonus offers or inducements being offered to customers who are showing any sign of harm.”

The government’s Minister for Sports, Tourism and Heritage, Nigel Huddleston, said of the new restrictions: “It is vital that people are protected from the threat of gambling related harm and I welcome these latest steps from the Gambling Commission. We will continue to monitor the situation closely and will not hesitate to take further action if required.”

Some of the new rules introduced today will also be subject to a consultation later in the month, ahead of their potential introduction as permanent regulations.

Sweden recently introduced coronavirus-related restrictions on the online gambling industry in response to a perceived increase in risk, which operators say lacks evidence and will serve to drive players to unregulated providers.

7
May

NEW JERSEY BILLS AIM TO HELP CASINOS RECOVER FROM SHUTDOWN

Lawmakers in New Jersey have introduced legislation that would provide significant tax breaks to help Atlantic City casinos recover the COVID-19 shutdown.

The bill would temporarily modify taxes and fees relating to casinos’ land-based operations, and also amends the current law on the use of promotional gaming credits.

The bill would waive the annual license fee of $500 on each slot machine from July 1, 2020 through June 30, 2021, and directs the Division of Gaming Enforcement (DGE) to distribute any surplus funds and overpayments held in the Casino Control Fund to each casino in proportion to the licensee’s share of the surplus or overpayment.

Taxes levied on a licensee’s gross revenue would be reduced on a sliding scale, with no revenue tax or investment alternative tax applicable on gross monthly revenue that is 25 per cent lower than the same calendar month immediately prior to March 1, 2020.

Monthly revenue of between 25 per cent and 49 per cent of pre-crisis levels would be subject to revenue and investment alternative taxes calculated at 25 per cent of the amount normally due, rising to 50 per cent on revenue that is 50-74 per cent lower. Revenue of 75-99 per cent of pre-crisis levels would be taxed at 75 per cent of the normal amount due.

To qualify for the revenue and investment alternative tax reductions, licensees must prove to the DGE that the entire amount gained from the reduction has been applied to promptly re-hire former employees and new applicants; to attract tourists, gaming, and hospitality patrons to visit and stay at the casino hotel property; to market and promote events that would draw visitors to the property or Atlantic City; or for other activity deemed by the State Treasurer or the DGE to be beneficial to the return of pre-crisis economic, gaming, and tourism levels to Atlantic City.

Sportradar
Promotional gaming credits would not have to be declared until they are used by patrons at a slot machine, gaming table, or sports pool in the licensee’s casino or internet gaming system, with licensees eligible for a deduction on gross revenue tax in an amount equal to the promotional credits.

The bill would also waive parking and room taxes for the remainder of the year, and allows certain licensing and other fees to be deferred during the period that the licensee’s casino hotel facility remains closed due to the emergency, and during the six-month period after reopening.

The bill (A4032 / S2400) does not impact tax liabilities on gross revenue from casino simulcasting, internet gaming, or sports wagering.

A second bill also introduced by Assemblyman Louis Greenwald (A4031 / S2398) directs the State Treasurer to make short-term loans available to casino licensees from the Property Tax Relief Fund. This would allow them to make payments due on May 1 and August 1, 2020 to Atlantic City in lieu of property taxes, with the loans available solely for this purpose.

4
May

GERMANY TAKES FURTHER ACTION AGAINST ONLINE GAMBLING PAYMENT PROCESSORS

The ministry of interior and sport of the German state of Lower Saxony has issued a prohibition order against an international payment processor which it accuses of facilitating illegal online gambling.
The Lower Saxony ministry has national authority and has been working closely with the interior ministry of Hesse, the state responsible for national licensing, to prevent unlicensed online gaming operators from serving German consumers.
The ministry said Monday that it has prohibited an international payment processor from facilitating illegal gambling transactions in the country, making it the second major payment processor to receive a prohibition order following the initial order issued to an international payment provider in June 2019.
“We expect companies in the financial sector to live up to their responsibilities and to critically review and, if necessary, immediately stop working with companies that practice illegal gambling,” said Boris Pistorius, minister of the interior and sport in Lower Saxony. “They are legally obliged to refrain from making payments in connection with illegal gambling – if they do not, we will take action.”
German law currently allows for online lottery sales and sports betting, while online casino gaming is prohibited with the exception of the state of Schleswig-Holstein, which has its own online gaming legislation.
The Lower Saxony ministry added that payment processors can play an essential role in preventing illegal online gambling and urged all companies active in the German market to comply with the law.
“Payment service providers must finally comply with their legal obligation and prevent payments in connection with illegal gambling,” Pistorius warned, adding that those who fail to comply will be banned from the market.