Monthly Archives: November 2020

Latvia online gambling ops survive pandemic but momentum lost

Latvia’s online gambling operators fared better than they expected during the government’s pandemic suspension but that doesn’t mean they’ve gotten over the slight.

Figures released last week by the Lotteries and Gambling Supervisory Inspection of Latvia (IAUI) show state-licensed gambling operators generated combined revenue of €129.2m in the nine months ending September 30, a 45.5% decline from the same period last year.

The major decline was the result of – surprise! – COVID-19 and, specifically, the Latvian government’s reaction to the pandemic. In March, the government ordered a halt to land-based gambling and followed that up in April with an online ban, despite local licensees’ loud protestations (and lawsuits) that the coronavirus didn’t spread over the internet.

Latvia’s government lifted the gambling ban in June, but the damage had been done, particularly on the land-based side. Revenue from slot machines in casinos and gambling halls was down by more than half to €80.7m, while casino table games slid 64% to €4.6m. Betting shop revenue was off 46.4% to €1.25m, bingo dipped 43% to €97k and ‘other’ products fell by half to €6.1m.

Quebec’s H1 online gambling revenue already ahead of FY2019-20 total

Quebec’s online gambling revenue soared over the first half of its current fiscal year as the Canadian province’s land-based options went dark due to COVID-19.

Last Friday, the Loto-Quebec provincial gambling monopoly released an update on its financial performance over the first half of its current fiscal year. As of September 30, revenue totaled C$687.4m (US$518.6m), less than half the C$1.4b earned in H1 2019-20, while net income tumbled by three-quarters to C$181.2m.

As with most of the world, Quebec’s retail gambling operations went into an extended deep-freeze this spring as the pandemic took hold. The net effect on H1 2020-21 was across the board declines in all gambling verticals that required customers to be physically present.

Lottery revenue was down by more than one-quarter to C$335.2m, while land-based casino operations fell nearly 65% to C$179.9m and video lottery terminal operations in the province’s bars and bingo halls slid 62.6% to C$174m.

GVC warns of £43m hit from new retail shutdown; UK gambling tax take falls

Gambling operator GVC Holdings is warning investors of the financial cost of the UK’s latest pandemic lockdown, while the UK taxman is also suffering from the shutdown of retail gambling operations.

On Monday, GVC announced that it expects a negative earnings impact of £37m from the raft of COVID-19 retail shutdowns spreading across Europe. Should the current closures extend for a month, the negative impact is expected to rise to £43m. These figures include the effects of government support programs and other retail cost mitigation.  

GVC’s UK retail operations – encompassing its Coral and Ladbrokes brands – would account for £34m of this loss. Some regions of the UK had already been forced into so-called ‘Tier 3’ retail restrictions but Prime Minister Boris Johnson announced this weekend that casinos and betting shops would be required to shut nationwide as of Thursday (5) through at least December 2.

For the moment, betting shops in Scotland and Northern Ireland remain open. Betting & Gaming Council (BGC) president Michael Dugher issued a statement urging governments to take a “science-led approach and avoid the arbitrary and unnecessary decisions that led to random closures of casinos and betting shops, which damage employment and revenues to the Exchequer.”

Kindred pulls 32Red online gambling brand from Italy

Online gambling operator Kindred Group is pulling its 32Red brand from the Italian market for as yet unexplained reasons.

Italian gamblers who logged onto 32Red.it this weekend discovered a message informing them that the site would be shutting down as of November 30. The message claimed the closure was “a difficult choice to make” without going into detail regarding the factors that led to this decision.

32Red’s Italian customers have been “strongly” recommended to withdraw the funds from the site by November 29 “as afterwards you will no longer be able to access the casino.” The message encouraged customers to transfer their affections to the Italian-licensed site of Kindred’s flagship Unibet brand, where they will reportedly receive “the warm welcome they deserve.”

32Red’s presence in Italy’s regulated market dates back to 2012, five years before the brand’s operations were acquired by Kindred. Presumably, Kindred will shed more light on its decision to streamline its Italian presence when the company issues its Q3 earnings report later this week.

Mahomes, Wagner Cards High As Goldin Auctions Breaks All Time Online Sports Auction Record with $16 Million Auction

When the Gavel dropped on the Goldin Auctions October Legends Auction, the total proceeds topped $16 Million, a figure never before that had been eclipsed in the Online Sports Memorabilia Auction Industry from single auction event. Topping the list of most valuable items was the T-206 Honus Wagner card in Lot #1 which sold for $1,426,800 setting a new All-time record for a Honus Wagner T-206 card in the respective grade by PSA. In addition to the record bid price on the famed Honus Wagner, another very iconic basketball rookie card of Michel Jordan has also toppled the record. The red, white and blue 1986 Fleer issue featuring Jordan sold for the price including premium of $124,230, setting a new auction record for this popular card.

Other notable sales were the 1952 Topps Mickey Mantle that sold for a staggering sum of $584,250. A new record for the most expensive Soccer card of All time was also set with a sale of $295,200 on a 1958 Alifabolaget Pele rookie card graded a PSA MINT 9 and a 1986 Fleer Basketball set containing Michael Jordan’s rookie card also set a new record price $224,300.

“For the past several years my goal has been to increase the both the user base of Goldin Auctions, as well as grow the business for the entire industry,” says Ken Goldin, founder and CEO of Goldin Auctions. “We have seen a tremendous increase in both the number of collectors in the hobby as well as a tremendous growth in our user base at Goldin Auctions. Our October Legends clearly demonstrates this as it was not only the highest grossing auction in the history of online sports auctions at $16 million, but also registered the most bids ever recorded at Goldin Auctions, as well as the most bidders and the most unique winners.”

Goldin also explained, “I would like to thank all of our consignors who contributed tremendous product to the auction, and all of our bidders, not only for their support during this auction, but during all of 2020 which has seen us put up an unprecedented run of five consecutive auctions which have each generated in excess of $10 million in sales.”

Goldin Auctions is currently seeking consignments for our Holiday Auction being held in December and our next Goldin Elite auction in January. To get into the auction you can consign by emailing an image and description of your items to [email protected].

The Goldin Auctions 2020 October Legends Auction Session 1 also featured the Cal Ripken Jr. personal collection that included game used items and memorabilia from the career of Hall of Famer Cal Ripken, Jr. from his first little league uniform, to his early days as a Baltimore Oriole, to items from his historic consecutive game streak, 3,000th hit, 400th home run, World Series Championship, retirement and more. The collection brought in over $1.2 Million in total revenue and a portion of all his items sold will benefit the Cal Ripken, Sr. Foundation.
The Highlighted sales from the Ripken collection was the Jersey worn by Cal for his final game of his 2632 consecutive game streak that fetched $184,500, the jersey worn by Cal for his Major League Debut sold for $123,000 and the bat used by Ripken in the 1st inning of his record breaking 2131 consecutive game brought in $124,230.

Session 1 which closed on Saturday Night consisted of Lots 1 – 417 and Session II Consists of Lots 418-1923 and closed on Sunday November 1st

The Long Con: Alex Pang believes the early bird can catch the creativity bug

[youtube https://www.youtube.com/watch?v=ghuf9uoDOP8]

Renowned author and academic, Alex Soojung-Kim Pang believes that we get more done when we work less. While it may sound like a contradiction, the Stanford University academic has written four books on the subjects of creativity and productivity in the digital age. He took some time out to sit down with our own Becky Liggero Fontana on the latest episode of The Long Con, to share his insights on how it’s possible to improve our productivity habits.

Pang believes that the majority of people believe that work and rest are mutual competitors in their daily lives. “We get the idea that we’ll sleep when we’re dead, or rest is the thing that you get once you get everything done.”

According to Pang, the behaviour is seen among people who are time-pressured or people who really like their job, and are really interested in their work.

PAGCOR loses appeal over Waterfront Philippines casino license

It’s been 12 years since Waterfront Philippines Inc. first sought a gaming license to launch an integrated resort (IR) to Entertainment City in the Philippines. Philippine Amusement and Gaming Corporation (PAGCOR), the country’s gaming regulator, as well as an operator of several casinos, didn’t believe Waterfront had met its requirements and tried to block the license request. After seeing the dispute between the two entities bounce back and forth in court for years, it finally made its way to the Supreme Court, which has issued its final verdict. PAGCOR needs to get out of the way.

In 2017, PAGCOR was denied from blocking the license in court. It wasn’t happy with the ruling and appealed, only to lose in December of the following year. Undeterred, PAGCOR tried again. However, the Philippines Court of Appeals denied the attempt, backing its December ruling. The gambling operator still wasn’t ready to accept defeat and took its case to the Supreme Court. The high court issued its ruling last February and, once again, PAGCOR fought the decision, arguing that the court had made a mistake in its judgment. The Supreme Court dropped the gavel one more time last mon th, asserting that its decision was “final and executory by being recorded in the Book of Entries and Judgements.”

That essentially means that PAGCOR now has no recourse if it wants to try to deny the license to Waterfront again. While it continued to drag its feet with the company, which had made a $100-million deposit on the license, PAGCOR was able to issue licenses to four other properties in the country – City of Dreams, Okada Manila, Resorts World Manila (RWM) and Solaire Resort and Casino. Of those, only RWM is not located in Entertainment City and another property, Westside City Resorts World, will open there before Waterfront would be able to launch.

PAGCOR had previously been ordered to pay Waterfront for damages over the dispute, but only about $4,000 – nowhere close to what it has had to lay out in legal fees and expenses tied to the license fee deposit it gave. The prolonged inability to proceed, coupled with the weakened economy caused by COVID-19, might force the company to temporarily reconsider its options, but it still expects to take advantage of its victory at some point. The company said in a statement last week that the decision and the subsequent license issuance “will have a favorable effect on WPI’s business or operations once the pandemic is over.”

Michigan eases self-exclusion rules for gamblers

Individuals who voluntarily signed up for a lifetime ban from gambling in Michigan will find that lifetime has a new meaning. The Michigan Gaming Control Board (MBGC) had the ban policy in place for almost 20 years, but has decided to back away from the strict interpretation of lifetime ban, allowing some gamblers to return to the activity. The move comes at the same time that the three commercial casinos in the state – Greektown, MGM Grand Detroit and MotorCity – have been forced to operate at just 15% of their normal capacity due to COVID-19. 

The lifetime ban list reportedly contained 4,825 names as of October 1, according to the MGBC. The Disassociated Persons List (DPL) only applies to commercial casinos, as tribal casinos are not included. However, the Board felt it was time to make some changes to the ban policy that it felt might be too restrictive. Michael Burke, the president of the Michigan Association on Problem Gambling and the MGCB, asserts, The majority of our board felt the Disassociated Persons List lifetime ban in Michigan may have acted as a deterrent to gamblers who may be more likely to sign up if they have other self-exclusion options, such as a two- or five-year ban available.”

The changes to the DPL won’t apply to everyone. Only those who signed on more than five years ago can request to be removed, and the Board will review each petition individually. According to the MGCB, it has already started to receive applications from listed persons and has 30 business days to respond to any request made through a “fully completed form.” 

Adds MGCB executive director Richard S. Kalm, “Previously, the state used criminal law to combat a gambling problem for a lifetime, which is an expensive, harsh way to deal with an addiction. A lifetime ban actually may deter some people from signing up. For others, their life circumstances may have changed. Of course, people with gambling problems may request removal and resume behaviors they sought to prevent by going on the list. I’ve received many requests over the years from people on the Disassociated Persons List who wanted to remove their names, but state law did not offer the option until the new act was signed Oct. 16.”

Dutch gambling regulators give a preview of new license requirements

Kansspelautoriteit (KSA), the gambling regulator in the Netherlands, announced recently that it is working on polishing the Remote Gambling Act (KOA, for its Dutch acronym), which is scheduled to go live at the beginning of March of next year. The policies have gone through several changes since first being introduced, but the latest revisions appear to be the final prelude to the pending launch. The draft documents just released by the KSA cover licensing requirements for online gaming, giving operators the chance to see what will be required of them if they want to be part of the Dutch online gaming industry.

Most of the requirements had already been discussed; however, the KSA published the latest version as the closest to what will eventually be made law. The KOA Policy Rules and KOA Model Permits could see a couple more minor changes, and the regulator expects to have the final versions published sometime during the middle of January. Among the requirements remains the obligation by gaming entities to follow the full layout of “required operator permits” that were established at the end of September. That data is maintained on the KSA website, and is updated as necessary. One thing is for sure – operators better be damned sure they’re able to meet all requirements because the €45,000 ($52,366) license fee is not refundable if the license application is denied.

In keeping with its schedule to have the final policies established early next year, ahead of a possible September launch, the KSA is going to hold feasibility tests with certain operators until the final rules are published next January. These tests are being conducted prior to the start of the licensing process, and the KSA explains, “KSA has approached a number of parties to participate in the feasibility test. These are the current country-specific licensees, (international) industry associations and a few law firms.”

The Netherlands plan on being very strict with iGaming operators. The chair of the KSA, René Jansen, has previously stated that the regulator is beefing up internal resources to deal more efficiently with the pending market launch, and that it has had to adjust its staffing levels in order to face an “influx of applications seeking to join the Dutch market” next year. In addition, the repeated delays in launching the KOA regulations were necessary, as the country has no desire to leave any part of the Act to chance. 

Spain’s gambling ad restrictions violate EU laws, states EGBA

Spain doesn’t want gambling companies to be able to advertise, except under very stringent controls. There can’t be any sponsorships of sports organizations by gambling operators and TV and radio ads are severely limited, only able to appear in the middle of the night. The rules apply to any type of gambling in the country, from the Basque region in the north, all the way down to the southern coasts of Andalusia. Unless, of course, you’re a lottery giving over $3 billion to the state. These are exempt from the new advertising laws, and that exemption doesn’t sit well with the European Gaming and Betting Association (EGBA), which hints that the rules could violate established European Union (EU) laws.

The EGBA has sent word to the Consumer Affairs Ministry in Spain that the advertising restrictions are not consistent with EU competition guidelines and that they were implemented without a basis of evidence. The EU has established State Aid Rules, and the exemption given to Spain’s two lottery operators in Spain – state-run ONCE (Organización Nacional de Ciegos Españoles, Spanish National Organization of the Blind) and SELAE (Sociedad Estatal Loterías y Apuestas del Estado, the State Society for Lotteries and State Gambling) – violate those rules, according to the EGBA. ONCE alone accounts for 34% of the entire gambling sector’s advertising outlay in the country.

While wanting to help individuals avoid gambling problems is a noble cause, Spain seems to be targeting a virtually non-existent problem. The University of Madrid completed a study recently that showed that only 0.3% of the gambling population could be viewed as problem gamblers, making it one of the lowest percentages in the world. There would certainly appear to be more pressing issues to work on than dedicating resources to a topic that clearly is not problematic.

The EGBA welcomes Spain’s attention to the gambling space, but feels that it has made a call that goes well beyond what is necessary. Secretary-General Maarten Haijer asserts, “We urge the Spanish government to reconsider its advertising restrictions because there is a lack of data to support the measures and the granting of advertising privileges to state-run companies over private ones could potentially be in conflict with EU state aid rules.

iGaming Next: Online to offer valuable insights you can’t get anywhere else

The gambling industry will be forced to consider how it can adapt and evolve over the coming years, due to changes forced by the pandemic and a shifting regulatory and technological environment. A great way to prepare for those changes is with the upcoming iGaming Next: Online – Adventure of Change.

iGaming Next’s flagship digital event, running from November 10-12, will discuss the future of the gambling industry, and offer a cutting-edge platform to conduct all the typical conference activities we’ve come to expect. Hosted by Alice Nordin, Betsson Group Employer Branding Specialist, and Pierre Lindh, iGaming NEXT Co-Founder, the event is expected to get over 5,000 delegates and will offer more than 60 speakers.

Each day has its own theme. Day 1 will focus on Business, and offer a broad view of how innovation is helping to shape the industry. Day 2 is Marketing Day, and focusing on how to attract and convert new players. Finally, Day 3 is HR Day, with a focus on how to get your teams working in harmony and working like a fine-tuned machine.

If you’ve attended previous iGaming Next events, or checked out their regular Power Hour’s or Podcasts, you know there’s great value here that you don’t find at other typical industry events. At their event in May, for example, we got a wide range of topics like the future of the iGaming industry, but also looks at how the pandemic was affecting us psychologically, and tips on how to be more productive.