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Pennsylvania Lottery partners Global Payments

first_img Regions: US Pennsylvania Pennsylvania Lottery in the US has rolled out its new iLottery online gaming platform in partnership with Global Payments Gaming Solutions Pennsylvania Lottery in the US has rolled out its new iLottery online gaming platform in partnership with Global Payments Gaming Solutions. Players can use the Global Payments ACH payment services to deposit funds and also receive prizes electronically. The iLottery platform features a selection of instant-win games available across mobile, tablet and desktop. Drew Svitko, executive director of the Pennsylvania Lottery, said: “Online and mobile gaming is a natural evolution for the Pennsylvania Lottery and Global Payments is helping us make the consumer experience frictionless as we modernise our business and generate new funds to benefit older Pennsylvanians.” Christopher Justice, president of Global Payments, added: “We have almost two decades of experience working with gaming organisations to provide a simple, secure and convenient player experience. “We’re thrilled that Pennsylvania Lottery selected Global Payments to help them increase engagement and accessibility as they offer new innovative experiences.”Related article: Pennsylvania considers latest fantasy sport applications 22nd June 2018 | By contenteditor Lottery AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Topics: Lottery Tech & innovation Email Address Tags: Online Gambling Subscribe to the iGaming newsletter Pennsylvania Lottery partners Global Paymentslast_img read more

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Churchill Downs launches sports betting in Mississippi

first_imgSports betting Email Address 24th August 2018 | By contenteditor Churchill Downs launches sports betting in Mississippi AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Regions: US Mississippicenter_img Topics: Sports betting Tech & innovation Churchill Downs Incorporated (CDI) has cited “great opportunity” for growth in Mississippi after launching sports betting at its two casino properties in the state. Harlow’s Casino Resort & Spa in Greenville and the Riverwalk Casino Hotel in Vicksburg will both offer wagering services across various sporting events, including US collegiate sports. CDI will launch the sportsbook under the ‘BetAmerica’ brand and plans to also roll out this service in other states where sports betting is legal. BetAmerica sportsbook areas at the two casinos will feature big screen displays, offering more than 100 channels of sporting events and information.Bill Carstanjen, chief executive of CDI, said: “The legalisation of sports wagering in Mississippi is a great opportunity for Churchill Downs to deliver an innovative, state-of-the-art product that we believe will exceed our customers’ expectations. “We are excited to get started and will take everything we learn from this experience to improve our offering in Mississippi and other markets over time.” In May, CDI announced that it had agreed a deal with SBTech to jointly work on its sports betting service offering in the US. The partnership initially focused on entrance into the New Jersey and Pennsylvania markets. Last week, SBTech, along with William Hill USA, were awarded licences to both manufacture and distribute sports betting platforms in Mississippi. Jay McDaniel, deputy director of the Mississippi Gaming Commission, revealed to iGamingBusiness.com that the companies will be able to provide odds and risk-management services in the state, with casinos operating the sportsbooks. McDaniel also said he understood that William Hill USA is supporting the launch of sportsbooks at five casinos operated by Penn National Gaming in the state. Image: Michael Jester Harlow’s Casino Resort and Riverwalk Casino Hotel now offer wagering Subscribe to the iGaming newsletterlast_img read more

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Kansspelautoriteit examines ‘bad actor’ clause

first_img Regions: Europe Western Europe Netherlands Tags: Online Gambling MRG CEO calls for Dutch to follow “fair play” demonstrated by Swedish regulator Subscribe to the iGaming newsletter Legal & compliance Kansspelautoriteit examines ‘bad actor’ clause Topics: Legal & compliance The Netherlands’ gambling regulator is investigating the effects of the ‘bad actor’ clause raised by Minister Sander Dekker last week.As reported by iGamingBusiness.com on Monday, Minister for Justice Sander Dekker told a Parliamentary committee that firms penalised by the Netherlands’ watchdog for unlawfully targeting Dutch customers would initially be ineligible to operate in the country’s liberalised market.Dekker has now asked Kansspelautoriteit to examine the subject and come up with appropriate regulations. Gaming operators may be concerned that the watchdog was reportedly pushing for operators found to have broken the law to be permanently excluded from the Dutch market. Kansspelautoriteit told iGamingBusiness.com that it will not comment on the ‘bad actor’ clause until the regulatory approach had been finalised.Kansspelautoriteit’s Jan Erik van der Werff (pictured) said he was not concerned that operators are increasingly ignoring Dutch laws despite a number of fines being handed out in the last few months.“The recently handed-out fines are a result of an adaptation of the enforcement regime in 2017,” he said.“We act on online gambling specifically targeting the Dutch market. We don’t have signs operators are increasingly ignoring Dutch law, but of course we keep an eye out.”Meanwhile, MRG has joined Betsson in casting doubt on the likelihood of a ‘bad actor’ clause being introduced. MRG was fined by Kansspelautoriteit last month for failing to block Dutch gamblers, but immediately launched an appeal, claiming most operators do not practice IP blocking.MRG CEO Per Norman told iGamingBusiness.com: “Since most gaming operators do not practice IP blocking that would mean that very few operators will be able to operate in the Netherlands during the first period of licences.“That will of course severely hit the channelisation which, from my opinion, is the most important objective with a local regulation. It is most likely also setting aside the EU’s regulations on free trade.”Norman added that his company is “very much looking forward to see the Netherlands becoming a regulated market” and suggested it will have the benefit of being able to learn from the experiences of the UK, Sweden and Denmark regulators.“In Sweden we are right now in the first part of the licensing process where all operators are welcome to apply, irrespective of previous presence or non-presence in the market,” Norman said.“That is fair play. My advice would be to secure a close cooperation and dialogue with the industry in order to make the regulation effective from the very beginning.”While the lower house of the Dutch parliament approved the Remote Gaming Bill in 2016, it is still awaiting Senate approval.In June, the country’s coalition government stated its intention to push ahead with the process, with the aim of introducing new regulations by 2020. AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter 18th September 2018 | By contenteditor Email Addresslast_img read more

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Mims Davies named as new UK Sports Minister

first_img Mims Davies has been appointed as Tracey Crouch’s replacement as UK Sports Minister, with responsibility for gambling matters.Crouch resigned last Friday in response to the Budget, in which it was announced that changes to the maximum stake on FOBTs would only be introduced in October 2019. Crouch, who had held the post within the Department for Culture, Media and Sport for three years, had hoped the reduction to £2 would be implemented six months earlier, in April.The FOBT changes and the introduction of a new higher rate of Remote Gaming Duty were revealed by Chancellor Philip Hammond in last week’s Budget, but Davies will now take responsibility for their implementation over the next 12 months.Davies, 43, entered Parliament in 2015 when she became the Conservative MP for Eastleigh. She previously worked as a local radio presenter and in communications for organisations including the AA, the BBC and the police.Davies was appointed an Assistant Government Whip on in January 2018 and subsequently to the role of Parliamentary Under Secretary of State for Wales in July.As well as gambling, horseracing, sport and the national lottery, the Minister for Sport and Civil Society brief includes the voluntary sector and cross-government work on loneliness.Crouch tweeted: “Congratulations Mims Davies! You’ll be brilliant and I know the fantastic team at the DCMS will look after you well. Enjoy!”Following her appointment, Davies tweeted: “New challenges await, thank you Theresa May. A proud day – can’t wait to get started.” Legal & compliance Subscribe to the iGaming newsletter AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Topics: Legal & compliance Regions: UK & Ireland 6th November 2018 | By contenteditor Tags: OTB and Betting Shops Tracey Crouch’s replacement will now lead changes to FOBT rules Mims Davies named as new UK Sports Minister Email Addresslast_img read more

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Tips for sports betting security

first_img8th January 2019 | By Josephine Watson Finance Email Address Topics: Finance The season of change is well underway in the US, and new entrants are vying to reap the huge opportunities of regulated sports betting. Fraud, however, poses a serious and increasing threat in this developing environment.But there are four simple rules that potential stakeholders can use to protect themselves from unnecessary risk and lay solid foundations for success, according to Scott Olson and Jon Karl from fraud experts iovation. Meet regulatory requirementsRobust KYC checks, self-exclusion procedures and geolocation technology are the minimum standard for getting licensed and doing business in the US. Sports betting being rolled out on a state-by-state basis has heightened the importance of having an accurate and robust system for identifying where players are located in the US relative to other regulated markets.The pair say some sports betting operators are seeing as much as 90% of their bets coming through their mobile apps, making the channel paramount to regulatory compliance Stateside. It can take advantage of the geolocation information from the phone and is therefore considerably more accurate. Streamline the player experiencePlayers must be able to open an account and make deposits, bets and withdrawals frictionlessly. Authorization and authentication also need to be consistent.“You should be able to do the same thing at login that you do if you’re making a withdrawal, and some of these controls should be in the hands of the player,” says Olson.These interactions come with fraud risk, which iovation addresses using technology built into mobile apps. Olson says “You can use facial or fingerprint recognition or more traditional methods to authenticate your customer, all while injecting fraud intelligence so that you can make the right decisions in real time.” Protect player accountsCreate a system that both authenticates the user and flags risks, such as whether devices or users have a history of fraud. New US entrants are focused on marketing and operational compliance, says Olsen, placing them at greater risk than more experienced international operators: “There’s going to be a lot of predatory behavior directed at businesses and they need to wrap that into dealing with regulatory requirements, player experience and account protection.” Learn from your peersAs well as learning best practice from European counterparts, interaction with US peers already working in sports betting is valuable too. Karl points to the need to have the right tools to mitigate risks associated with sharing data across different regulatory and privacy frameworks.Iovation’s platforms for sharing data on confirmed fraud are designed so that information can be submitted identifying customers using a device with a bad reputation, who can be blocked. Karl adds: “We also host a community on our system, FraudForce, for sharing information in real time and data on specific fraud problems. We facilitate that with physical user groups too.”Jon Karl is executive vice-president of corporate development and co-founder at iovation, a TransUnion Company. He develops technology and information partnerships.Scott Olson is vice-president of product marketing at iovation, focusing on understanding and supporting the most pressing customer needs. AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwittercenter_img Tips for sports betting security Tags: Online Gambling Subscribe to the iGaming newsletter New entrants naturally focus on obvious fraud risks, but they don’t always have the full picture on the actual issues they will encounter. Scott Olson and Jon Karl talked us through the best approachlast_img read more

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Pretender to contender: Part One

first_imgAddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Tags: Mobile Online Gambling Race Track and Racino Email Address In 2017, Scientific Games’ acquisition of NYX Gaming Group and its OpenBet sportsbook platform was the clearest sign of the industry’s confidence that the Professional and Amateur Sports Protection Act (PASPA) was to be consigned to history.Few doubted that the solutions giant was set to carve out a major share of the regulated US sports-betting market.William Hill, active in Nevada since 2012, was also expected to thrive. The likes of International Game Technology, SBTech and Amelco were also hotly tipped. Kambi, the former B2B subsidiary of Kindred Group, was mentioned as an afterthought, if at all.What a difference a year makes. As 2018 draws to a close, Kambi has exploded onto the US scene. Its partners in New Jersey have established a market share of around 60%, including the current market leader, fantasy sports giant turned sports betting frontrunner DraftKings.Its partnership with Rush Street Interactive has launched two of the three legal sportsbooks in Pennsylvania. The fourth – Parx Casino – will also be a Kambi client. The Rush Street partnership also provides a route into Illinois and New York State.This has seen Kambi evolve from being an afterthought to one of the most significant suppliers in the sports betting vertical. In the company’s most recent financial results, for the third quarter of 2018, revenue was up 39% year-on-year, with client turnover up 31%.Investors have also bought into the US story, Kambi having been the strongest performer in iGB’s RP iGaming Index (see page 45) since it was rebased in May 2018 following PASPA’s repeal, up 138% by November.Chief executive Kristian Nylén (pictured left) explains that, while the business had not been expecting such a quick turnaround in the wake of PASPA’s repeal, the US launch had been in the management team’s thoughts for years.“There’s always been debate over whether the US would ever allow sports betting outside of Nevada,” he says. “We were positive it would and we wanted to ensure we’d be ready whenever it occurred.”Nylén argues that Kambi was in an especially strong position as a result of its dedication to regulated markets – even if that forced it to forego opportunities for short-term revenue growth. “It’s easy to go into those markets if you are seeking the quickest route to money but it’s not a long-term strategy for a reputable business such as ours,” he says.Chief commercial officer Max Meltzer (pictured right) adds that, in the US, where the progress of gambling regulations has been slow, a whiter-than-white approach is crucial. Where legislators treat gambling with a degree of caution, he explains, it is vital to be as credible and regulated as possible.He says this has resonated with regulators and casino groups post-PASPA, pointing out that the sports betting supply deal with Parx Casino operator Greenwood Gaming and Entertainment was won partly because of Kambi’s regulated market focus.“Companies spend a lot of time and money to build a brand and reputable business, they don’t want to jeopardise that,” he adds.PASPA was repealed on 14 May last year. Kambi sprang into action and three days later announced its partnership with Rush Street Interactive. The deal highlights how its regulated market focus has positively impacted its US performance, with the two companies first collaborating on the launch of a sportsbook in Colombia’s regulated igaming market.This, Nylén explains, allowed the operator to familiarise itself with the Kambi system, testing its capabilities and strategies for sports betting.“This gave them a great base to work from when going into New Jersey, which I think has been proven by the success they have had,” he says. “If you look at the [New Jersey revenue] figures posted by the DGE, SugarHouse is third in terms of sports betting revenue, way ahead of the major casino brands in the market.”While the Rush Street partnership served as a statement of intent, it was Kambi’s deal with DraftKings, struck in June 2018, that made rivals sit up and take notice.Part two, in which Meltzer and Nylén discuss how Kambi sealed the DraftKings partnership, the importance of retail and its plans for further US growth, will go live tomorrow (January 11). Kambi CEO Kristian Nylén and CCO Max Meltzer reflect on a stellar 2018 which saw the supplier establish itself in the nascent US sports betting market. Regions: US New Jersey Pennsylvania Casino & games Subscribe to the iGaming newsletter 10th January 2019 | By contenteditor Topics: Casino & games Sports betting Horse racing Pretender to contender: Part Onelast_img read more

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Betfair Australia to offer exchange betting on HK racing

first_img Flutter Entertainment’s Betfair Australia subsidiary is set to launch exchange betting on horse races taking place in Hong Kong, from the start of the island’s racing season on 1 September. Topics: Sports betting Subscribe to the iGaming newsletter AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Betfair Australia to offer exchange betting on HK racing Flutter Entertainment’s Betfair Australia subsidiary is set to launch exchange betting on horse races taking place in Hong Kong, from the start of the island’s racing season on 1 September.“Our punters have been asking for hong kong racing for several years and we have been working on it for just as long,” Betfair Australia chief executive Tim Moore-Barton said. “Today I’m really excited to allow punters to legally bet against each other on some of the best horse racing in the world.”Betfair will allow exchange punters to bet on meets at both of Hong Kong’s racecourses – Sha Tin and Happy Valley – from the start of the 2019-20 Hong Kong racing season.It will offer a market base rate of 6% on races in Hong Kong, which the company said is in line with their cheapest Australian product.In July, the Hong Kong Jockey Club announced a new record racing turnover of HK $124.82 billion for the 2018-19 season, up 0.4% from the prior year.center_img Regions: China Oceania Hong Kong Australia 21st August 2019 | By Daniel O’Boyle Sports betting Email Addresslast_img read more

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African regulatory round-up

first_img African regulatory round-up AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Bingo Topics: Casino & games Legal & compliance Lottery Sports betting Strategy Bingo 18th September 2019 | By contenteditor Tags: Mobile Online Gambling Subscribe to the iGaming newsletter Regions: Africa East Africa Southern Africa Western Africa Kenya Tanzania Botswana Nigeria Email Address Law Allianz founder Yahaya Maikori looks at the established and emerging regulatory frameworks in a number of key African markets.The increase in popularity of gambling across Africa has given rise to the need for legislative reforms, especially in the online and mobile sub-sector. Of particular concern is the need to curb vices such as gambling addiction and gambling-induced debt. On the one hand, this can be viewed as a direct consequence of socio-economic problems. And on the other, it highlights a need to augment dwindling government income through gaming taxes by harnessing the industry’s potential.While gambling is not entirely new to Africa, remote gaming and the myriad of new and ever- changing games and platforms present a key challenge to several countries which hitherto regulated at most pools betting, slots and most probably lotto. Until now, gambling was not regarded as an industry; these games were at best treated as ‘mom and pop’ businesses operated on street corners. However, technology and the internet, and the rise of ecommerce, has completely transformed the industry, turning it into a multi-million dollar sector that pervades
our everyday lives, leaving regulators scurrying around trying to establish a workable regulatory framework. In most African jurisdictions, licensing still resides with tax offices without any supporting legal or regulatory framework.As the industry grows in leap and bounds, the apprehension of most regulators is palpable.Even with their best efforts, the costs and processes for passing bills and regulations are not only expensive, but also time-consuming, especially when critical stakeholders who are often ignorant of the challenges posed by gambling are involved. Furthermore, the undue politicisation and stigmatisation of the industry in some countries leaves it always at the back burner of key national affairs. Fortunately (or unfortunately) gambling, with the help of media, can no longer be confined. It has become part of our mainstream economic activity and is starting to get the attention it rightly deserves.While there is still a lot of consultation going on across the continent, this is where some of the key markets stand in terms of legal and regulatory reforms.Nigeria The National Lottery Regulatory Commission (NLRC) was established in 2005 by an act of the National Assembly, but the Nigerian constitution empowers the 36 states to individually regulate gaming in each jurisdiction.In 2016, Vice President Yemi Osinbajo decided to withhold assent to the National Lottery Act (amendment bill) due to the existence of a pending legal challenge to the competence of the National Assembly to legislate on the subject. Notwithstanding this drawback, at the national level many states continue to emulate Lagos State, which has been at the forefront of gaming regulation in Nigeria.Oyo State passed the Oyo State Gaming Law last year while Anambra State has an amended gaming bill, repealing its 2005 gaming law, before the House of Assembly. Lagos State, meanwhile, has presented a draft bill that repeals the 2004 Lagos State Lottery Act and consolidates it with the 2007 Casino and Gaming Law into the Lagos State Gaming Authority Bill. The highlights of this bill include provisions for remote gaming, advertising, social responsibility measures and the power to appoint inspectors. In the meantime, the National Lottery Regulatory Commission has constituted a committee to work with regulators of the sub nationals to harmonise the seeming conflicts among them.Botswana
 Botswana is one of the smallest countries that can be said to have in place the gold standard of gaming regulation in Africa. Since the passing of the 2012 Gambling Act and 2016 Gambling Regulations, no other legislation has been passed.
As licensing is carried out through expressions of interest and requests for authorisation, the speed of issuing licences for other sectors has slowed down considerably. The auction of the National Lottery licence, which was considered the big one, has been enmeshed in a long, drawn out court case with no end in sight. The parties involved are currently getting set to launch an appeal over the process, two years after bidding closed.In the meantime, the Gambling Authority has published a notice for public hearing for two casino licences – one is the transfer of a licence to a new operator, the other a fresh application. As popular as sports betting is, the Authority still hasn’t issued sports betting licences, having claimed to intend to do so. If and when that happens the exercise promises to be very competitive, as you will have the largest global brands falling over themselves for one of the four licences.Tanzania Tanzania takes pride in being the first East African country to regulate online gaming, with the 2012 Internet Gaming Regulations. Its most recent laws include sports betting regulations, passed in 2016, followed by laws governing gaming equipment standards and establishing a central electronic monitoring system for route operations in 2018.The gaming board, in collaboration with the Ministry of Finance, has recently developed the gaming regulation electronic monitoring system (GREM) which is in its pilot phase, with a view to having it fully operational next year.A draft online casino bill has also been filed, though must be published in the official gazette before it can progress. The Gaming Board is clearly serious about passing these regulations, as it has taken great pains to study regulatory frameworks of advanced jurisdictions such as the Isle of Man and Malta. It is also exciting to see that its monitoring platform was developed locally, helping the growth of the local software industry.Kenya 
The menace of unbridled advertising by betting companies reached an unbearable level earlier this year until the Betting Control and Licensing Board took action. It issued a directive stopping operators from advertising on social media platforms, banning celebrity endorsements and outlawing advertising between 6am and 10pm.Furthermore, it ruled that all advertisements must contain a warning message about the consequences of gambling – including its addictive nature. This warning message must constitute a third of the space dedicated to the advertisement, and be in the same font as the rest of the copy.This initiative is laudable, considering the gambling industry is the country’s biggest spender on advertising, which in turn accounts for Kenya’s notoriety for the highest prevalence of underage gambling in Africa.These drastic reforms will set the tone for other east African countries; however it remains to be seen how this directive will be implemented effectively.The Board also refused to renew the licences of several operators because of back taxes running into hundreds of millions of dollars. The tax rigmarole didn’t start today – it’s been running for years. Out of 20 operators, only three have renewed their licence based on alleged ‘wrongful calculation of withholding tax on winnings’.Kenya has always been the darling of most European operators and that perhaps forms the underlying current behind the new regulations, which silently target foreign companies for getting rich off the vulnerabilities of the locals. The 2019 draft gaming bill, which seeks to replace the Betting, Lotteries and Gaming Act of 1966 provides that 30% equity in each licensee must belong to locals.Again, it remains to be seen what the framework set out in this bill will look like after consultation with industry stakeholders.Yahaya Maikori is the senior partner of Law Allianz, a leading African gaming and entertainment law firm. He also co- founded Global Gaming Group, a business that has advised regulators, companies, and startups across key markets in Africa’s growing gaming industry. Law Allianz founder Yahaya Maikori looks at the established and emerging regulatory frameworks in a number of key African marketslast_img read more

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Swansea shifts approach to gambling sponsorship

first_imgMarketing & affiliates Regions: UK & Ireland Email Address Swansea City has launched a new responsible gambling project with the aim of helping protect supporters from gambling-related harms and educating players about the risks involved with betting.The football club, which is based in Wales but plays in the English Championship, made a number of commitments as to how it will now manage its relationships with gambling operators.The ‘Responsible Gambling Pledge’ forms part of a wider initiative at Swansea, whereby it will appoint fans as ‘Champion Jacks’ to work with the club on its decision-making processes around various issues. Student Ben Church is the first Champion Jack and played a role in helping the club develop its new responsible gambling plan.While the club will continue to work with gambling partners, having agreed a shirt sponsorship deal with online operator YOBET in July for the 2019-20 season, it will introduce a number of new restrictions on such partnerships.This will see it restrict betting adverts across its official club website, social media channels, marketing materials and both matchday and community activities. In addition, the club will ensure all of its playing staff will take part in a betting education programme and have access to support networks and treatments for gambling-related problems if required.“Swansea City believes that sponsorship by betting and gaming companies must be conducted in a socially responsible way,” Church, 18, said. “It should aim to balance promotional opportunities with measures that help preserve the welfare of those playing or watching and who could be at risk of becoming addicted to gambling or be addicted to gambling already.“Responsible gambling is an area I feel passionate about and I hope to make a difference.”Swansea City is the latest professional football club to champion responsible gambling, with a number of other teams having joined forces with Paddy Power on the bookmaker’s ‘Save Our Shirt’ campaign.Launched through a partnership with Huddersfield Town FC, Save Our Shirt sees Paddy Power call for betting operators to stop striking football shirt sponsorship deals. GVC Holdings, meanwhile, has donated its football sponsorship assets to problem gambling charity GambleAware.Aside from Huddersfield, Paddy Power is also working with Southend United, Newport County and Scottish Premier League football club Motherwell.Lewes FC, a team playing in the seventh tier of English football, has signed up Gambling with Lives, a gambling addiction charity, as its shirt sponsor.Image: Robin Drayton Topics: Marketing & affiliates Sports betting Strategy 24th September 2019 | By contenteditorcenter_img Swansea City has launched a new responsible gambling project with the aim of helping protect supporters from gambling-related harms and educating players about the risks involved with betting. AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Subscribe to the iGaming newsletter Swansea shifts approach to gambling sponsorshiplast_img read more

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NetEnt to integrate Red Tiger and accelerate earn-out

first_img Tags: Mobile Online Gambling Slot Machines AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Stockholm-listed NetEnt has opted to fully integrate slot developer Red Tiger into its business, and is to accelerate the payment of the earn-out attached to the acquisition to facilitate this process.The supplier explained that by fully integrating Red Tiger, which had exceeded expectations since the acquisition was agreed in September 2019, it would be able to increase efficiencies and economies of scale, making significant savings.The business is therefore being restructured to speed up the integration, meaning that several functions are being relocated, with 120 full-time roles cut from offices in Stockholm and Malta.The supplier noted it had already seen the value of revenue synergies through the release of Piggy Riches, the first title jointly developed by NetEnt and Red Tiger. Released in January 2020, the game has become Red Tiger’s most successful launch to date.The integration, NetEnt said, was in line with its strategy to continuously improve all parts of the business, and would result in annual cost savings of around SEK150m (£12.6m/€13.6m/$14.7m), beginning in the first half of 2020. This is a significant increase initial estimates of potential synergies from the acquisition, to around SEK250m per annum.“We are now entering the next phase of the integration with Red Tiger, whose sellers are also becoming shareholders of NetEnt,” NetEnt chief executive Therese Hillman (pictured) said. “The integration will unleash the full potential of our shared capabilities, create significant efficiency gains in games development and strengthen our position as the market leader in online casino.”The acceleration of the earn-out would be facilitated by a directed issue of B-shares to the Red Tiger sellers, including Gavin Hamilton, its CEO who has been named chief operating officer of NetEnt as part of the restructuring.Under the acquisition agreement, NetEnt had agreed to pay an earn-out capped at £23m, which would become payable in 2022, based on Red Tiger’s financial performance over the 2020 and 2021 financial years.However, as a result of the business exceeding expectations, NetEnt has agreed to amend the share purchase agreement, to state that the earn-out conditions are deemed to have been met.Half of the consideration will now be paid through a directed share issue in the seance quarter of 2020, with the rest to be paid in cash in Q2 2021. This will see 6,327,175 B-shares issued to the Red Tiger sellers by NetEnt’s Annual General Meeting on 29 April, priced at SEK21.34 per share.Shareholders will be asked to vote on the proposed amendments at the AGM.In related news, NetEnt revealed that it had not seen any negative effects from the novel coronavirus (Covid-19) pandemic, but warned that its impact was difficult to forecast, and conditions could change rapidly.Revenue had developed in line with market expectations in Q1, and were expected to come in the range of SEK490m to SEK500m.In 2019, NetEnt saw revenue grow marginally, with Red Tiger helping to mitigate struggles in the Swedish and Norwegian markets, though increased operating costs and financial expenses resulted in net profit for the year falling 25.7% to SEK428.9m.Both NetEnt CEO Hillman and the supplier’s new COO Hamilton – in his previous role of Red Tiger CEO – spoke to iGB about the transaction last year. Stockholm-listed NetEnt has opted to fully integrate slot developer Red Tiger into its business, and is to accelerate the payment of the earn-out attached to the acquisition to facilitate this process. Topics: Casino & games Strategy Slots Subscribe to the iGaming newslettercenter_img Casino & games 24th March 2020 | By contenteditor NetEnt to integrate Red Tiger and accelerate earn-out Email Addresslast_img read more