Commentaries

As we edge closer to the summer parliamentary recess in the UK, speculation about what may be contained in the long-awaited Gambling Act review whitepaper is ramping up.  The Times newspaper published a piece yesterday that appeared to contain pretty comprehensive insight into the details of the forthcoming whitepaper, although it is understood that some elements are still under close review by … [Read more...]

“Those who cannot remember the past are condemned to repeat it” — George Santayana, writer and philosopher  Today in the UK, we find ourselves in the position where a group of well-meaning people want to dictate to others how they should spend their money. Gambling has now become a “public-health issue” and some health professionals believe gambling provides no benefits, only harm, and should … [Read more...]

Flutter’s flagship UK brand Paddy Power found itself in hot water this week with the UK’s Advertising Standards Agency (ASA), which has ruled that a seemingly quite innocuous ad encourages harmful gambling.   The advert for Paddy Power’s Wonder Wheel game features a young man sitting on a sofa with his girlfriend and her family. He is so engrossed in the Paddy Power mobile app that when his … [Read more...]

It has been clear over the course of this year that the U.S. sports betting and igaming markets have been transitioning into a new phase. The number of regulated states is going up more rapidly, marketing spends have peaked, and those without the firepower to compete have started to fall by the wayside.  This week, DraftKings CEO Jason Robins gave his appraisal of the U.S. market from the DFS … [Read more...]

Web 3.0 (also referred to as Web3) is the latest iteration of the World Wide Web, based on blockchain technology and incorporating concepts such as decentralization, crypto, NFTs, and the metaverse.  Just as Web 2.0 came to characterise the internet we now take for granted, comprising social media, user-generated content, apps, and data monetization, so Web 3.0 stands at the precipice of … [Read more...]

As we get closer to the UK government releasing the White Paper on the reform of Britain’s gambling law, arguments about what should be in the reform are coming to the fore. One of the big issues being openly debated is: Should there be a levy to fund research? Or should it be entirely voluntary?  Jordan Lea, Founder and CEO of Dealmeout, is quoted in an article in SBC News accusing … [Read more...]

Macau has for the best part of two decades been recognized as the undisputed king of Asia when it comes to gaming. And, until recently, the “next big thing” was Japan – widely viewed as the great untapped market destined to move into second place on the regional IR map. But with Macau now firmly stuck in a COVID-19 rut and Japan having done all it can to throw its IR opportunity away, there is … [Read more...]

Section 5 of the German Interstate Treaty on Gambling (IST) regulates the advertising permitted for licensed gambling operators. However, ‘advertising’ is not defined. In the context of competition law, any statement made in the exercise of a trade, craft, or profession with the aim of promoting the sale of goods or the provision of services is considered to be advertising conduct. However, the … [Read more...]

Last week a major proposal for online gambling in California received enough signatures (1.6 million, according to Ballotpedia) to guarantee its place on the state’s ballot in November.  It means that Californians will vote on at least two competing proposals for legalised sports betting in the state later this year. Another proposal calling for in-person wagering at tribal properties and … [Read more...]

ICE, this year, was a slightly muted affair. The online industry was well represented, but land-based suppliers and consequently land-based operators were few and far between. However, some of the periphery networking events (drinks and canapes, etc.) did have a good concentration of representatives from this sector.  A number of us “oldies” got together at one of these events, reminiscing past … [Read more...]

Did the industry ever catch the ball might be a more apt question. Anti-money-laundering regulations have been ramping up over the past 10 years. They've been a more frequent talking point across many regulated industries, but gambling often seems less forthcoming.  Over the last month, the issue has become a bit of a theme among regulators. In France, the gambling regulator l'Autorité … [Read more...]

Macau’s gaming industry continues to face a great deal of uncertainty. The arrest and subsequent detention of Alvin Chau, the head of Suncity and the gaming industry’s largest junket promoter, in November of 2021 cast a pall over the entire casino sector and the role that junkets will play in Macau’s economic recovery. Immediately after Mr. Chau’s arrest, casino operators across the city announced … [Read more...]

The COVID-19 pandemic, along with the international border closures it forced, is one of a number of recent headwinds to have thrust the issue of foreigner-only casinos into the spotlight. And while it is perhaps too much of a stretch to make the blanket claim that the foreigner-only casino model is doomed, the health crisis certainly lends weight to the argument that such a path is shrouded in … [Read more...]

The absence of numerous land-based suppliers at this year’s ICE event in London could presage a further spread of digital suppliers on the expo floor.       The return of the ICE trade show and conference in London from 11-14 April after a two-year hiatus caused by the pandemic was most welcome by all those who attended.  The event had long been trailed by industry observers and after … [Read more...]

A few weeks ago, I wrote a piece about bias and noise in decision making and focussed more on bias than on noise. In this commentary, I explain in greater detail what noise is, why it is important, and what we might be able to do about it. To recap, bias is the tendency to consistently skew a decision in a certain direction. A judge may tend to sentence people found guilty to longer sentences … [Read more...]

It’s the first day of ICE London and it’s clear the ICE Vox conference panelists have been raring to get back on a stage. The thrill of a live audience had many of them extremely animated.  Lobbyist with Princeton Public Affairs Group Bill Pascrell III (son of New Jersey senator Bill Pascrell II) was one such panelist.   Taking the mic during the last session before lunch, Chasing … [Read more...]

The B2B gaming space is fraught with pitfalls, but Pala Interactive, and most recently IGT and iSoftBet, once again show how important tech control is to U.S. corporates.  At the highest level, the online betting and gaming space in the U.S. is about control: Control of the technology, of the value chain, of the infrastructure that underpins all the different components and enables them to … [Read more...]

After prolonged calls by campaigners for the UK government to tighten restrictions on gambling advertising, this week saw the news that sports people and celebrities would be banned from appearing in the industry’s advertising campaigns. For years, football managers such as José Mourinho, players like Cristiano Ronaldo and various celebrities have been splashed across gambling ad campaigns in a … [Read more...]

From exuding outward messaging of hope, the tone has changed for Macau’s gaming operators in recent months. On Melco Resorts and Entertainment’s 4Q21 earnings call in early March, Chairman and CEO Lawrence Ho was under no illusions as to the challenges facing the concessionaires in 2022 as Macau awaits permission from mainland China to open up its borders. Asked his thoughts on when … [Read more...]

In the middle of summer 2021, the new Interstate Treaty on Gambling appeared on the scene of German regulations. The objectives of the regulations can be read right at the beginning under Sec. 1 of the Treaty: “In addition to the protection of players and minors, as well as the prevention of gambling addiction, it was a particular concern of the German states to move the black market towards a … [Read more...]

The last few months have started to reveal casualties in the battle for U.S. igaming market share. Last week, Wynn Interactive boss Vincent Zahn told the Nevada Gaming Control Board that it was moving to an affiliate marketing model due to the “irrational” cost of customer acquisition.  And Zahn is far from the only CEO starting to feel the heat as he fights to claim a slice of what The Wall … [Read more...]

Tom Waterhouse, Chief Investment Officer WaterhouseVC.com, and I will be speaking at the International Casino Conference, part of ICE2022 on 11 April; our subject is, “Driving Better Investment Decisions for the Casino Floor”.  As a prelude to the event, I thought I would give you some of my thoughts around decision making, not necessarily investment decisions, and how to get better at making … [Read more...]

In the February issue of Inside Asian Gaming, David Green noted the absence of any legislation around sports betting among amendments to Macau’s gaming law currently being debated by the Legislative Assembly. This suggests there will be no change to the status of legal sports betting in Macau, which under the current gaming law is not permitted in the SAR’s casinos because it is classified as a … [Read more...]

Over the past twelve months, the pandemic has impacted gaming jurisdictions across the globe in varying and often dramatic degrees. Collectively, the casinos in the United States have enjoyed near record revenues. Those properties in the Philippines, while negatively impacted by the loss of international visitation and periodic limits on capacity, also managed to survive reasonably well, owing in … [Read more...]

Ontario’s upcoming regulation presents Entain and its newly-acquired sportsbook Sports Interaction with a serious dilemma and raises questions about the market before it has even launched.   The upcoming regulation of the online sports betting and gaming industry in Ontario is a welcome addition to the number of regulated jurisdictions in North America. As has been widely reported, great things … [Read more...]

The UK’s racing industry this week is fighting a war of words across various sections of the media about the progressively distant spectre of the jurisdiction’s Gambling Review.  The Racing Post carries numerous articles on the subject, with industry spokespeople warning that threats to impose affordability checks and a ban on advertising could be the death knell for one of the UK’s favourite … [Read more...]

Last September, an independent government review of the circumstances surrounding the collapse of Football Index found failing both in the actions of the Gambling Commission and the Financial Conduct Authority (FCA), the UK’s financial regulator.   The GC had some concern that, due to changes made by the management of Football Index, the product was possibly a financial instrument and should … [Read more...]

While cryptocurrencies are still a regulatory grey area in most jurisdictions, their incorporation into the igaming industry has been rapid and will likely continue at pace.   Crypto gambling operators are, as yet, kept largely at bay in the UK, but the U.S. is showing signs of greater tolerance towards crypto, even if the financial regulators are yet to fully get a grasp of it.  In Wyoming, … [Read more...]

Regulation of crypto assets is increasingly likely and won’t affect ties with the online betting and gaming industry.  The increased potential for regulation of crypto assets is much discussed, and with the UK government's recent announcement that it plans to introduce legislation “to address misleading crypto asset promotions” to bring them “into line with other financial advertising”, it … [Read more...]

The start of the 2022 Winter Olympics in Beijing will bring into focus the People’s Republic of China’s (PRC) zero-Covid policy in front of the world’s largest international television audience.  Until now, few people outside of East Asia and the international business community were aware of the PRC’s approach to mitigating the spread of Covid 19, how that policy influences everyday life, and how … [Read more...]

The contrasting approaches to gambling regulation being taken by authorities in Singapore and Australia this year highlight just how challenging it can be to establish a model suitable for each unique jurisdiction. In Singapore, the process is now well underway to merge the current Casino Regulatory Authority (CRA), which oversees Singapore’s two casinos, and the Gambling Regulatory Unit, which … [Read more...]

The 17th and 18th centuries were times of great social upheaval. In England, a fight between the supremacy of Parliament and the monarchy led to the rise of Oliver Cromwell and the beheading of Charles I (1649). In America, the War of Independence (1775–1783) freed the colonies from the tyranny of the English Crown and in France, the populace revolted (1789–1799), beheading many of the aristocracy … [Read more...]

New York’s 51% sports betting tax rate will give operators nightmares for some months yet and once again show why online casino is such a key product in U.S. igaming. Sports betting continues to dominate the headlines, and with New York volumes showing the potential on offer once the biggest U.S. jurisdictions are regulated, this is understandable. But a more detailed look into figures recently … [Read more...]

As more states legalise online gambling, the opportunities for plucky European affiliates are broadening in the U.S. Established in 2006, affiliate Gambling.com is the latest to make a notable push into U.S. markets. This week it has confirmed it is poised to enter the newly legalised New York online market, having made a strategic acquisition at the end of 2021, purchasing U.S.-facing fantasy … [Read more...]

Happy New Year! Let us hope that this is the year we find a way to live with the coronavirus without too much disruption to our daily lives. In the early days of my consulting career, I was asked by one of the (then) big-five auditors to review the internal controls of a public company and determine whether or not the control environment was sufficiently robust for the auditors to rely on the … [Read more...]

The first quarter of this year should see publication of the UK government’s Gambling Act review White Paper. It was due late last year, but recent reports suggest the government has put it on hold until after February, when the Gambling Commission of Great Britain (GC) announces who has been awarded the next National Lottery contract. It has been a long journey to this point. The current … [Read more...]

Transportation infrastructure has long played a critical role in the success of casino development.  This has been demonstrated in jurisdictions throughout Asia. Macau is the region’s best example. Ferries bring patrons to the city from throughout the Pearl River Delta. Once they disembark, an efficient road and bridge network, coupled with casino shuttle busses, quickly brings visitors to … [Read more...]

I recently began buying up shares in a small handful of casino and integrated resort companies across Asia-Pacific. Nothing to get too excited about, mind you – I won’t be retiring in the Bahamas anytime soon – but if there is one thing I’ve learned in my years doing this job it’s that nothing in our industry is ever as good or bad as it seems. Right now, as we welcome in the New Year, … [Read more...]

Sports betting is set to continue on its upward trajectory next year, as are igaming startups. And look out for crypto’s grand entrance on the OSB scene in 2022. The wave of regulation that saw sports betting bills adopted across many states in 2020 has provided the regulatory impetus that has enabled U.S. operators to push on in 2021. In the process, the industry has achieved a level of … [Read more...]

The entry into force of the new Interstate Treaty on Gambling 2021 ('IST2021') on 1 July 2021 in Germany was anticipated by the industry with great expectations. For the first time, licences for the organisation of virtual slot machines, online poker, and online casino games were to be granted, in addition to sports betting. But the closer the deadline in July came, the more impenetrable the web … [Read more...]

YouGov, the polling company, regularly surveys about 2,000 people in Great Britain to determine the public’s attitudes to various industries (Northern Ireland excluded). The question they ask is, “How favourable or unfavourable do you feel about each of the following sectors in the UK?”   Of those they asked, 50% said that supermarkets were “very or somewhat favourable”, pharmaceutical … [Read more...]

Swedish live casino supplier Evolution Gaming has seen $3bn wiped off its share value after rumours started circulating that it was operating in jurisdictions which prohibit gambling.  Then on December 2 news broke of a large-scale bust of a crypto gambling ring in Vietnam. Some of those arrested claimed they had been working as affiliates for the company, sending it traffic from … [Read more...]

The regular warnings about how the U.S. online betting and gaming industry must ensure the highest standards of responsible gambling are encouraging, but also contradict many executives’ comments around simplifying sports betting products.     The focus on responsible gambling and player safety in the U.S. was one of the most encouraging messages that could be heard from the many panelists … [Read more...]

On the surface at least, it appears the turbulent story of Imperial Pacific International and its troubled Saipan casino, Imperial Palace, is nearing its sunset. Yet even as receivers start auctioning off the company’s gaming equipment to pay off some of its debts, there remain more questions than answers. For the residents of Saipan – the largest island of the U.S.-ruled Commonwealth of the … [Read more...]

As international travel between Asian nations begins to resume, casino operators in a number of jurisdictions have become cautiously optimistic. The absence of foreign visitors, particularly in those countries that prohibit residents from gambling, has been particularly hard on casino operators in South Korea, Cambodia and Vietnam. The hope is that, with the resumption of international travel, … [Read more...]

Flutter Entertainment’s buyout of Tombola harks back to simpler igaming times, but for the likes of DraftKings, ESPN or Fanatics, the direction of travel is clear.  There was something oddly reassuring about Flutter Entertainment’s acquisition of the online bingo specialist website Tombola for £402m/$540m last week. In an industry dominated by the ‘next big thing’ and with many of the companies … [Read more...]

I was at a conference last week organised by Clear Concise Media. The theme was “Reputation Matters”.   A presentation by Oliver Rowe from YouGov detailed the results of polling that his firm carried out. The results were shocking. The gambling industry in the UK is held in such low esteem by the general public and by politicians that only 5% of the former thought the industry was … [Read more...]

DraftKings’ (DKNG) shares rallied on Monday, November 8, after a dip at the end of the previous week. It seems that analysts still have faith in the daily fantasy sports (DFS) giant as it continues in its pursuit of U.S. igaming dominance.  Trading closed with shares up 2.66% to $44.78, having taken a tumble after the firm’s Q3 earnings call on November 5.  Bernie McTernan from Needham is … [Read more...]

For the past two decades, the international casino industry’s attention has been focused on East Asia. The emergence of Macau as the world’s largest gaming hub – followed by Singapore, the Philippines, Vietnam, and Korea – captivated the interest of casino developers looking for the next opportunity to develop integrated casino resorts. The notion was that any country that was in close proximity … [Read more...]

In my previous contribution to Focus on Asia, I highlighted what I believed to be an over-the-top reaction by Macau gaming investors to the publication of proposed revisions to the city’s gaming laws. In the space of a day in mid-September, the market capitalization of the Hong Kong-listed entities of Macau’s six concessionaires fell by some 26%, or US$18.4 billion, with investors clearly spooked … [Read more...]

Nearly five years after Czech Act No. 186/2016 Coll. on gambling games (“Gambling Act” or “GA”) went into effect, the Ministry of Finances has prepared an analysis of the country’s gambling regulations, known as the ARHA Report. The aim of the report was to carry out a comprehensive review and evaluation of the country’s gambling legislation in terms of its goals and principles and to identify … [Read more...]

Maxims Casino has gone into administration in the hope that the Canadian owners can find a buyer. Maxims is situated in a beautiful Victorian townhouse built in the 1860s in the London Borough of Kensington. Previous owner Genting offloaded the casino to Sonco, a Canadian company, for £34.6 million in 2019, realising a significant profit, having purchased it when the company acquired Stanley … [Read more...]

Despite the M&A talks between DraftKings and Entain ending without a deal, the three-way M&A story between both groups and MGM once again showed how important owning a strong tech stack is to the industry’s leading firms.  All the talk of tech ownership in the U.S. sports betting industry has centred on the DraftKings-Entain M&A story, and even though both groups said on Tuesday … [Read more...]

Sportradar’s initial public offering follows Genius Sports’ IPO earlier this year and with IMG Arena owner Endeavor now also listed, it leaves Stats Perform as the only one of the major data and streaming suppliers remaining in private hands.  The enthusiasm for high-profile suppliers of the betting and gaming sector is understandable, given the levels of interest now being generated by the … [Read more...]

Last month, Public Health England (PHE), an advisory and support body to the National Health Service and Government, published its review of gambling-related harms; a summary can be found here Gambling-related harms evidence review: summary - GOV.UK (www.gov.uk). PHE came to the conclusion that the “annual economic burden” is approximately £1.27 billion; the 95% confidence range is £841 million to … [Read more...]

The significant and what some would call “over the top” reaction to the publication by Macau’s Gaming Inspection and Coordination Bureau of proposed amendments to gaming laws raises some interesting questions about how China views gambling within its local casino enclave. It is no secret that, broadly speaking, Beijing frowns upon most forms of gambling, and as such has been actively letting … [Read more...]

The German gambling market is mainly regulated by the Interstate Treaty on Gambling (IST 2021). With the approval of their state parliaments, the German federal states agreed on a common denominator that, after ratification, legally binds them and forms the basis for further federal state laws.    Since the long-awaited IST 2021 came into force in July 2021, operators can now, for the first … [Read more...]

In the last few weeks, we have seen two large transactions proposed in the online gambling industry: 888’s acquisition for £2.2 billion of the non-U.S.-facing part of William Hill and DraftKings’s £16.4 billion offer for Entain.  Both of these companies state they are making these acquisitions for similar reasons, but they are not coming from the same starting position.  DraftKings and … [Read more...]

The size of the total addressable market in the U.S. depends on many factors, regulatory mainly. But the role of offshore books, which continue to be highly popular with U.S. players, should also not be discounted.    Having looked into the significance of the total addressable market (TAM) for U.S. online betting and gaming in my previous column, and whether the numbers and forecasts (accurate … [Read more...]

Last week, I had the opportunity to participate in an online panel discussion, “AI: Algorithms and Integrity”, organised by the European Association for the Study of Gambling (EASG) and ably moderated by Arjan van‘t Veer, Chair of EASG and Secretary General of the European Lotteries Association.    Given the increasing use of artificial intelligence that, whether we know it or not, impacts our … [Read more...]

The size of the total addressable market (TAM) in the U.S. has been a topic of some discussion for some time, and it is easy to get lost in the amount of numbers and projections being put out by all industry stakeholders.  However, it is worth wondering how much the TAM, addressable or not, actually matters currently. This is not meant as a flippant remark. Indeed, without a TAM to size up the … [Read more...]

Louisiana newspaper The Advocate has launched an affiliate site, bet.nola.com, following legalisation of sports betting in the state in November 2020.   Billed as a “new site for Louisiana's new sports betting era,” the paper promises “a resource that gives Louisianans all the information and entertainment they can handle as it relates to sports betting and fantasy sports”. They’re even hiring … [Read more...]

The search for the next opportunity to develop integrated resorts in Asia remains elusive. Japan, once seen as a market with the potential to exceed the gaming revenues generated in Singapore, is now fading into ignominy as burdensome regulations and political posturing have chased away most of the world’s pre-eminent integrated resort developers. South Korea, with two integrated resort sites … [Read more...]

More than 18 months since COVID-19 first made its presence known in Macau, it seems we’re still taking one step back for every two steps forward. Certainly the latest setback inflicting mainland China, an outbreak that began in Nanjing before stretching to 16 other provinces, was ill-timed, with Macau’s gaming operators having finally started to see some genuine signs of recovery in their … [Read more...]

In March of this year, the 16 German Lande (states) finally ratified the Interstate Treaty on Gambling (Glücksspielstaatsvertrag), which came into force on 1 July. This is a fine example of a piece of legislation designed by committee; in trying to find a consensus among all of the stakeholders, the final treaty pleases no one.  Its history has been a bit like “Whac-A-Mole”.  The process has … [Read more...]

A fully integrated sports broadcasting-betting ‘flywheel’ is the vision the likes of Fubo TV and Sinclair-Bally Sports are striving for. Can sports media and betting convergence finally produce the goods?  As sportsbooks gear up for the new NFL season with much ado about new margin-increasing parlays, CRM and data-led marketing, media and broadcasting companies are planning their own … [Read more...]

Content streaming platform Twitch has taken a stand against gambling affiliates, banning links or referral codes to online slots, roulette, and dice games.   In a statement published last week, the platform said, “To prevent harm and scams created by questionable gambling services that sponsor content on Twitch, we will prohibit sharing links and/or referral codes to sites that offer slots, … [Read more...]

The summer months in Britain are usually referred to as the “silly season”. Since there is not a great deal of serious news around, journalists report soft-news items. However, this year in the gambling world, there is a lot going on and certainly in the M&A area.   Quite a few deals have been announced recently. Romanian Superbet has acquired Belgian-based Napoleon Games. Silverpoint … [Read more...]

On August 12, Penn National opened Hollywood Casino York. It’s the second “mini” casino to open in Pennsylvania. The $120 million Hollywood Casino is in the York Galleria Mall in Springettsbury Township in York County, Pennsylvania, in a space formerly occupied by a Sears. The new casino was not exactly cheap; besides the $120 million, Penn paid $50 million for the license. Regardless of the cost, … [Read more...]

The U.S. affiliate market is a delicate beast. It is yet to mature into whatever characteristics will define it in comparison to its European counterpart. But a recent conference session threw up an interesting question about how heavily affiliates, and operators, should focus on customer acquisition in a new market.  It’s logical to assume that acquisition should be the initial focus, and … [Read more...]