By 2022 that logic had collapsed under its own contradictions. Channelisation had sunk below 50%, Veikkaus’ annual contribution to the state had halved since 2017, and policymakers across the political spectrum were conceding—quietly at first, then publicly—that the monopoly was no longer defensible.

Now the country is poised to become Europe’s newest licensed market. What remains uncertain is when the competitive regime will actually begin. The legislative process—still officially aligned with the government’s timetable—has begun to buckle under political nervousness about advertising, electoral timing and the preparedness of regulators.

But while Parliament wrangles over dates, operators are already building teams, commissioning legal advice and shaping local strategies. The Finnish opening is small by European standards but symbolically weighty: one of the last Nordic holdouts is moving into the mainstream. And the industry is preparing accordingly.

Where the bill stands—and why delay now looks likely

At a technical level, the bill is close to the finish line. “The Finnish Parliament’s Administration Committee decided to conclude its hearings on 13 November and is now drafting its report,” says Antti Koivula, Chief Compliance Officer of Hippos ATG. He expects the report “at the very latest mid-December,” after which the two plenary readings “can be completed relatively quickly.”

Independent consultant Jari Vähänen offers a similar assessment: “Parliament is still considering the bill. The Administrative Committee is almost ready, and Parliament will have time to approve it this year, when the law will enter into force on 1 January 2026.”

And yet the committee’s schedule tells another story. Pekka Ilmivalta of Nordic Legal had noted an omission in dealing with the bill in the administrative committee’s weekly plan, which, he said, “raises concerns about the timetable”.

Behind this ambiguity lies political considerations. Both Ilmivalta and Vähänen point to last-minute discussions about pushing the market opening from January 2027 to summer 2027—after Finland’s parliamentary elections.

Gambling operators aware of potential delay

Operators received the same signals. A representative from a big operator told iGB that “government are now discussing postponing the market opening…so after the elections in April,” explaining why the item was unexpectedly pulled from the committee’s agenda.

What is driving the hesitation? According to Vähänen, “political decision-makers fear that gambling marketing will increase so much that public opinion will turn against it before the parliamentary elections.” Even parties broadly supportive of liberalisation prefer to postpone any visible shift until after the vote.

Most observers therefore expect a short delay—weeks in legislative approval, months in market opening. As University of Helsinki researcher Janne Nikkinen puts it, “Perhaps a delay of a few days or weeks, they’re mostly ironing out technical issues.” The law’s substance is not in question; the timeline is.

A spokesperson from the Ministry of Interior could not comment on a possible delay, but said in an email to iGB:  “The aim of the Administrative committee has been to complete the report in November, according to the estimate, after which the report is meant to progress to the plenary session”.

Consensus without clarity

Despite procedural delays, political unity on the need for reform is unusually strong. “There has been broad cross-party consensus for a few years that the gambling market should be partially liberalised,” Koivula says. Differences remain over advertising and harm-prevention, but not over the direction of travel.

Ilmivalta explains the logic: “Channelisation of the monopoly is less than 50%, income for the Finnish government has declined and at the same time problem gambling has been slightly increasing. The current system simply does not serve its purpose any more.”

And unlike in many European debates, the opposition has little incentive to resist change: Veikkaus itself declared as early as 2022 that the monopoly should be dismantled. As Nikkinen puts it, “Even the opposition isn’t opposing the reform, because Veikkaus itself said it no longer wants the monopoly.”

The political friction, therefore, is not about whether but when.

A regulator still not ready for day one

While legislative consensus holds, confidence in regulatory readiness is far thinner.

Koivula is frank: “I am not fully confident that the transition will be seamless. ” Although the National Police Board will supervise licensing through 2026, he warns that “the new authority will need to hire a substantial number of employees, and very few—if any—will have prior experience in the gambling sector.” Even within the National Police Board, he says, “this remains to be seen.”

Nikkinen is more pessimistic: Finland’s model “relies on courts, which can take years. That’s too slow for fast-moving marketing campaigns.” The new authority will sit within a regional administrative agency that also handles unrelated topics, from animal welfare to alcohol licensing. “They won’t have power to sanction directly. That’s a weakness,” he says.

Vähänen is more hopeful, believing staff will transfer from the NPB and that the technology project “will be ready in 2026.” Ilmivalta, though trusting in Finnish administrative competence in general, stresses that preparations “have not been very transparent, nor has the regulator had much dialogue with the industry.”

The result seems to be a split-screen picture: operators preparing with determination, and regulators racing quietly behind.

A black-market problem without the tools to solve it

Every expert interviewed agreed that the largest structural weakness is enforcement.

Koivula’s assessment is blunt: “I foresee nothing but enforcement challenges. The enforcement toolbox provided to the regulator is highly insufficient for tackling black market operators.” He warns of a counter-intuitive outcome in which “the majority of enforcement actions end up targeting licensed operators,” simply because they are visible and cooperative.

Nikkinen underscores the legislative omissions: Finland “does not include payment blocking, website blocking, DNS blocking,” partly due to political resistance and partly because the autonomous region of Åland—and PAF—complicates national blocking measures. The result, he predicts, is persistent leakage: “I believe leakage to the black market will continue, and that we’ll need to revise the law again by 2029 or 2030.”

Ilmivalta shares the concern: “There will always be those who decide not to join the regulated market, and the regulator’s tools are not too many.” The B2B licensing requirement in 2028 will help, but is unlikely to be decisive.

Even the operators’ own trade body, the Finnish Gambling Association, Rahapeliala, strikes a cautionary tone. CEO Mika Kuismanen argues that “the bill in itself does not contain enough explicit tools to combat the black market,” warning that if supervision focuses only on licensed companies,” unlicensed operators will not have sufficient incentive to consider the legal market.

Operators prepare: cautious, optimistic and waiting for certainty

Despite the regulatory grey zones, operator sentiment is broadly positive. “The industry as a whole has a positive feeling,” says Kuismanen. The legislative process has been relatively fast and well structured, even if “operators will still have to wait before starting full preparations.”, he says.

FDJ/Kindred´s general manager for Finland and Estonia, Joel Hakamies echoes that view: “It’s looking fairly good for the big picture. Overall it’s been fairly positive from our view.” The main constraint, he says, is uncertainty: “For our planning it would be better if the timeline was set in stone sooner rather than later. Uncertainty always blurs the horizon for investment.”

Hippos ATG, meanwhile, is preparing at full speed. “We are building a Helsinki-based organisation, recruiting experts on product, marketing and customer support,” Koivula says. For Hippos ATG, Finnish liberalisation is not just commercial: “Every euro of profit flows back to Finnish and Swedish horse racing — a model no other operator can offer.”

Ilmivalta sees a wide variety of strategies: “Some operators will establish local organisations while some are planning on operating very much remotely. Some are customising, some trust that their international offering works.” He also expects variety of new and innovative measures in brand-building under advertising constraints.

Marketing: permissive or restrictive?

Advertising rules are emerging as one of the most contested elements of the reform. The government’s responsible advertising clause drew criticism for vagueness, and even the Basic Law Committee questioned whether courts could interpret it effectively.

Nikkinen notes that Finnish media interests are lobbying heavily, while affiliates have been “banned,” leaving an “uneven table.” He warns that traditional media—not online channels—are the dominant source of exposure for consumers, including children.

Operators themselves are split on how restrictive the framework will be. Kindred sees the new rules as “actually quite liberal,” with “plenty of possibilities for operators to make their mark”. Kuismanen, too, believes “almost all channels are available and there are no time limits”.

What Finland means for Europe

Experts that iGB has spoken to agree Finland will not transform the European landscape overnight. “In reality, the wider impact will be limited,” Koivula says. Vähänen and Kuismanen concur.

Yet Finland matters symbolically: it is the first Nordic monopoly to fall since Sweden in 2019, and Norway will be watching closely. As Nikkinen notes, Norway “still maintains a strict monopoly.” Whether Finland succeeds—or struggles—will shape its neighbour’s arguments for years.

More broadly, Ilmivalta expects Europe to move gradually toward harmonisation in the 2030s, driven by black-market control and safer gambling priorities.

A market worth the wait

Finland’s opening is not smooth, nor is it fully defined. But operators appear willing to tolerate uncertainty for a market that remains both lucrative and culturally embedded. “Finland has been and will be an attractive gambling market,” Hakamies says. “Definitely a major opportunity.”

The real test will come not in 2026 or 2027, but in the following years—when Finland must decide whether its lightly armed regulator and incomplete enforcement architecture can deliver the channelisation and consumer protection the reform promises.

For now, the industry waits—impatient, optimistic and already laying its bets.

ACMA orders blocking of illegal gambling sits

The Australian Communications and Media Authority has issued banning orders against a further nine illegal gambling and affiliate websites.

ACMA said the sites did not hold a licence to offer online gambling in Australia. As such, it requested that Australian internet service providers block access to the sites.

Among the brands were Cashed, King Maker, Posido, Spinight, Spinsy, The Pokies Reviews and Topio Networks. Also flagged was wizbet.app, an imitation of the licensed WizBet service, and next2go-au.com, an imitation of the approved Next2Go service.

“Since ACMA made its first blocking request in November 2019, 1,369 illegal websites have been blocked,” ACMA said. “Around 220 illegal services have also pulled out of the Australian market since we started enforcing new illegal online gambling rules in 2017.”

PAGCOR commits funds to typhon support

The Philippine Amusement and Gaming Corporation has allocated Php32.85 million ($557,267) to assist those impacted by the recent Typhoon Tino and Super Typhoon Uwan.

The typhoons left widespread devastation across the Philippines, claiming hundred of lives and affecting over 2.5 million families. Funds from PAGCOR were used to buy 31,500 relief packs containing food and non-food essentials.

Another batch of 16,500 relief packs worth Php18.07 million will also be dispatched.

“In times of calamities, PAGCOR will always be ready to step in and extend support to our fellow Filipinos,” CEO Alejandro Tengco said. “Part of our nation-building mission is to help our kababayans rebuild their lives.”

Hippos ATG names Nurmi as COO

The newly established Hippos ATG has appointed Jussi Nurmi as its chief operating officer.

Nurmi has 10 years of experience within the iGaming industry, including time working in senior roles with Betsson and TonyBet.

In April, Sweden’s ATG announced a 50/50 joint venture with local Finnish racing association Suomen Hippos. It was later confirmed the business would operate in Finland with the ATG brand.

“Hippos ATG combines strong heritage with a clear ambition to build a modern and sustainable business for the Finnish market,” Nurmi said. “I’m excited to contribute to creating a competitive and responsible gaming company in Finland.”

Intralot extends with Arkansas Scholarship Lottery

In the US, Intralot has signed a new, 10-year contract with the Arkansas Scholarship Lottery.

The agreement, which comes into effect next August, will extend a partnership that began in 2009. It covers the introduction of new technology for the lottery.

Intralot will introduce its new lottery solution, including the LotosX Central Gaming System. Arkansas will be one of the first states in the US to roll out the technology.

“We look forward to our continued partnership with Intralot.” Arkansas Scholarship Lottery Executive Director Sharon Strong said. “With this new agreement, we remain committed to both our players and our mission of supporting Arkansas students.”

National Council on Problem Gambling appoints Maurer

The National Council on Problem Gambling has appointed Heather Maurer as its new executive director.

Maurer brings over 25 years of leadership experience in the fields of public health, policy, and nonprofit management. She was most recently CEO of the National Association of Nurse Practitioners in Women’s Health.

As executive director, Maurer will lead strategic direction and oversee national programmes, partnerships and advocacy initiatives.

“I’m honoured to join NCPG and build on its strong legacy of leadership in addressing gambling-related harm,” said Maurer.

Keith Whyte served as executive director of the national council for more than 25 years before his departure in January.

After its authorisation to operate in the newly regulated Brazil online gambling market was formalised in July, Caixa set a November date for the launch of its betting offering.

However, the plans received political criticism, as Senator Damaras Alves launched a scathing attack on Caixa in October, describing its plans as a “contradictory, dangerous and profoundly irresponsible move”.

This attracted the ire of Brazil’s president, Luiz Inácio Lula da Silva, who then met with Caixa President Carlos Vieira to discuss the matter.

According to local news outlet O Globo, Caixa has now decided to delay its planned November launch, with no new date given.

Vieira previously estimated Caixa’s betting business would achieve revenues of between BRL2 billion (£371.8 million) and BRL2.5 billion in 2026, in its first full year of operation.

The licence covers three brands: BetCaixa, Megabet and Xbet Caixa. The company did not respond to iGB’s request for comment on the delay.

What does this mean for Caixa and the market?

Caixa’s plans to launch betting also raised questions around competition, with concerns over whether a state-owned entity should be involved in the market considering the potential for government influence.

As an example, Vieira had previously described a potential rise in the gambling tax rate from 12% to 18% as “reasonable”, going against the opinions of the majority of the regulated sector.

Fabio Ferreira Kujawski, partner at Brazilian law firm Matthos Filho, expects this comment stems from Caixa’s difficult position, in which it “cannot publicly oppose what the federal government is saying”.

Atucha has warned Caixa’s delayed launch highlights various “contradictions” within Brazil’s regulatory landscape, with the government seemingly halting Caixa’s entrance into what is now a legal activity.

“With rising taxes, political debate and public backlash, the move risks undermining the regulated market itself,” the LatAm iGaming expert tells iGB.

“Instead of fostering a sustainable, competitive environment, these actions may end up strengthening the position of unlicensed, offshore operators, precisely the opposite of what regulation is meant to achieve.”

Questions over Caixa’s potential

Vieira has voiced his hopes Caixa will become a “major player” in the regulated Brazil betting market.

Caixa holds a legacy federal lottery monopoly, and its status as a state-owned bank means it should have strong brand recognition as a trusted entity in Brazil.

However, H2 Gambling Capital Managing Director Ed Birkin doesn’t expect Caixa to be at the very top of the market, despite its existing lottery player base.

“I do not believe that they will be one of the number one operators,” Birkin told iGB earlier this month. “Lotteries have never done particularly well against commercial operators in the online betting and iGaming market.”

Birkin describes Vieira’s estimate of 2026 revenues between BRL2 billion and BRL2.5 billion as “highly ambitious”, with the upper band of that prediction placing Caixa at a market share of 7.5%, according to H2 data.

“It would be completely unheard of for a lottery operator to get to a podium position, or even a top five position in a commercial market,” Birkin explained.

However, Caixa may not need to invest as heavily in marketing as other operators entering the Brazilian market, since it can leverage its established lottery brand and possibly its existing player database.

This advantage, Birkin suggests, is one reason Caixa is likely to run a profitable betting operation.

“In terms of the financials, they can be profitable with a much lower market share than other people in the market,” Birkin said.

“They already have all the land-based network there, they already do have online operations. So it financially makes sense for them. It should very much be additive to their earnings. The financials are more compelling than they would be for commercial operators.”

Malta regulator warns of unlicensed websites

The Malta Gaming Authority has warned that several websites are falsely claiming they hold licences in the country.  

The MGA denied any connection with PangaGames.com, Casino1bet.online, PalmsBet1.com, Flexiblesport.com and Casino-Europa.eu. It also denied links with a longer domain operating under the Memo Casino brand.

The regulator said that any reference to the MGA or licences issued by the MGA is “false and misleading”. It cautioned consumers not to gamble with any unauthorised websites or operators.

“The activities of unlicensed entities are unregulated and do not provide the necessary safeguards delineated by virtue of the framework, making transactions with such entities risky for consumers,” the MGA said.

Kambi scores Superbet deal

Kambi Group has entered into an Odds Feed+ partnership with multi-channel sports betting and gaming operator Superbet Group.

Under the deal, Kambi will provide Superbet with access to its full library of traded odds. This includes the ability to expand its odds package to meet player demand and support evolving strategic needs.

Founded in Romania in 2008, Superbet has a presence in several European countries as well as in Brazil.

“This partnership reflects the strength of our trading capability and the trust Superbet Group has placed in Kambi to support their long-term growth,” Kambi CEO Werner Becher said.

North Dakota Lottery switches with Scientific Games

Scientific Games has announced the conversion of the North Dakota Lottery’s system technology.

Scientific Games is powering the lottery with its latest central gaming system and iLottery solution. This, the provider said, will modernise both retail lottery and digital sales.

The omnichannel solution is delivered through Scientific Games’ Momentum integrated ecosystem. This also includes a player account management and CRM solution, featuring an integrated loyalty program, bonusing engine and achievement-based rewards

“We are committed to making the North Dakota Lottery relevant for generations to come and by doing so we achieve our mission to benefit programs meant to improve the quality of life in our state,” said Thomas Lawler, director of the North Dakota Lottery.

SIS lands Racing WA rights deal

Sports Information Services has agreed to a long-term international media rights deal with Racing WA.

SIS will deliver horse and greyhound racing fixtures from Western Australia to its partners around the world. This covers 283 meetings from 31 tracks across the state, including the Perth Cup.

All races will be delivered as an end-to-end solution, including livestreamed pictures, data and on-screen graphics with betting triggers. SIS already offers racing content from both Victoria and South Australia.

“By expanding our content to three major states through this deal with such a well-regarded partner, we are confident the comprehensive offering will be strongly received around the world,” said Conall McSorley, head of racing at SIS.

ENJOY extends reach with Groove Technologies

New software developer ENJOY has secured a strategic partnership with Groove Technologies.

The deal will see Groove offer ENJOY’s content to its network of operator customers around the world. ENJOY develops both slot and live game show titles.

Content such as slot games Hot Fire Coins 2, Fire Express, 3 Mariachi and Bison Strike will be made available to Groove’s partners. Also on offer will be game shows such as Enchanted Forest and Egypt Roulette.

“Our portfolio is growing every month, and to sustain that momentum, we need our titles in front of the right people in the right markets,” said Christos Zoulianitis, chief commercial officer at ENJOY. “Groove enables exactly that, and we’re confident this will be another successful collaboration that will drive both brands forward.”

In a short trading update released on Monday it said proceeds from Term Loan B will be used to fund the acquisition and associated fees and expenses. Allwyn agreed to acquire the stake in September, in a deal marking its entrance into US daily fantasy sports market.

Should the acquisition proceed as expected, Allwyn will take a 62.3% majority holding in the business, paying an initial cash consideration of $1.6 billion for the stake.

This implies an enterprise value of $2.5 billion for PrizePicks. However, should it hit certain performance metrics over the next three years, this could increase to $4.15 billion.

PrizePicks’ current CEO Mike Ybarra and the existing leadership team will continue to run the brand as a standalone within Allwyn. They will also retain the majority of their ownership interest in the business.

Subject to certain closing conditions, the deal will complete in the first quarter of next year.

Allwyn talks up ‘positive’ Q3 performance

Meanwhile, Allwyn has issued a short trading update on its performance in Q3, ahead of the group publishing results the quarter on 30 October.

Allwyn noted a somewhat challenging September for its sports betting operations. It said its business was affected by “exceptionally” customer-friendly sports results during the month, with this impacting sports betting margins.

However, it said this was an industry-wide phenomenon and not limited to its business. The group also played down any long-term impact, saying variation in sports margins due to customer or operator-friendly sports results “average out over time”.

On this, it noted its diversification, particularly with lottery and other verticals, also reduced the impact of these resultd. As such, it said other underlying trends remain “positive”.

Acquisitions aplenty for Allwyn

The PrizePicks acquisition is one of just major developments announced by Allwyn in recent months. In October, Allwyn International and OPAP agreed to merge and create a lottery and gaming business worth an estimated €16 billion. The deal also includes plans to list on another global international exchange such as London or New York.

In addition, in July, Allwyn International announced the sale of its land-based casino assets in Germany and Australia. It also acquired the remaining minority stake in Greece- and Cyprus-facing online operator Stoiximan.

The group also recently established the new Allwyn Digital division. Headed by ex-Betfred US CEO Kresimir Spajic, the business aims to evolve Allwyn digitally, providing bettors with engaging experiences.

This month we spotlight Bernard Marantelli – one of the few who can industrialise edge. In 2023 he orchestrated a coup on the Texas lottery for US$57.8M – arguably the largest single advantage play on record.

He’s also a builder. Someone who moved from solely hunting inefficiencies to building infrastructure that others depend on. Across White Swan Data, Colossus Bets, Colossus Fantasy, and most recently iBankroll, his career has been a systematic search for scalable edge. Waterhouse VC is fortunate to have him as an investor and collaborator in our network.

Marantelli’s wagering pedigree

Marantelli grew up in Melbourne in a bookmaking family. His father Gavin worked (and still works) on-course; his uncles and cousins were also bookies. As a teen he clerked and helped his father with greyhound form. Hours of race replays taught him that to beat the market, you must know more than everyone else.

He studied Genetics and Biochemistry at UWA, but punting stayed central. Like many university students, bankroll discipline was thin. He might stake A$500 on a dog with only A$2,000 to his name. He gravitated to pools where careful preparation exposed mispriced combinations in exotics. However, pre-internet seeing the local bookmaking trade and betting in general on the wane, he moved to London for biotech in 1998.

Edge in exchanges

Betfair launched two years later. With a university friend, he built algorithmic bots to attack inefficient prices. The approach is commonplace now; then it offered real edge. By 2004 he was betting systematically at volume. Still unsure whether to pursue a full time career in betting, the trading experience sent him to finance. He finished an MBA at London Business School and joined Deutsche Bank’s options desk in 2007.

Scoop 6

Despite the full time job at Deutsche, he was still hunting for gambling opportunities, and his attention turned to the UK Tote’s Scoop6 jackpot. Because of the rolling nature of the jackpot, positive expected value (EV) situations can arise for those who can price races well and execute at scale with bankroll to support the volatility.

Back home, when the Big 6 swelled, his father and friends pooled capital and fired at seven-figure pools. Marantelli won his first Scoop6 attempt in 2004, netting about 150K and doubling his bankroll in a week. In late 2009, he won the Scoop6 and bonus solo on two successive series netting about £1 million each time. He warned his boss there might be publicity. The reply was blunt. “What the **** are you doing still working here?” He took the hint and left in 2010.

Six years later, the jackpot hit record territory. He organised coverage, landed one of eight winning tickets, and the following week his syndicate shared the £5.5 million bonus when Top Boy won at York – the biggest scoop rollover and bonus ever.

Player to product

Playing the Scoop6 religiously highlighted a structural flaw. Multi-leg pools trap players between legs and there is no ability to hedge. Win four of six and you’re holding a ticket worth millions or nothing.

In 2012, Marantelli founded Colossus Bets to fix that. He introduced what is now standard across the industry: cash-out (then branded “cash-in”), giving players a way to realise value mid-bet. He patented the idea, and the world quickly copied it. Cash-out is now industry standard, and he is in the middle of a multi-million dollar infringement case against DraftKings.  

He also built syndicates, so bettors could combine stakes and share returns in proportion to their contributions – the cooperative model he knew was essential for landing outsized jackpots.

White Swan a further pursuit of wagering edge

The pursuit of edge continued. In 2019 he started White Swan Data, a formalisation of his betting group, initially to focus on better models for betting for himself, but more recently to monetise that data and knowledge on either side of the fence.

The focus is on exploring any vertical that can be monetised, investing heavily in data collection to widen that edge over time. Today White Swan runs proprietary models across most sports including soccer, boxing, MMA, tennis, cricket and horse racing, as well as daily fantasy. The team has grown from 10 to 150 plus today, split evenly across quant, engineering and commercial.

Texas Showdown

In the spring of 2023 his dedicated lottery-tracking team flagged an opportunity in Texas where the jackpot had swollen to US$70 million. Six numbers from a field of 54, with 25.8 million combinations at one dollar per line. It was “school boy maths” – but to maximise value, Marantelli would need near-total coverage while avoiding obvious sequences to reduce the risk of a split pot.

With a tested playbook after other smaller wins overseas, Marantelli gathered a 30-plus-person team for a round-the-clock operation. They secured access to official ticket-printing terminals and ran a three-day print across multiple official sites. Every combination became a scannable code, rotas ensured 24/7 production; boxes were indexed so the winner could be found quickly. Marantelli’s airport Uber driver, was even enlisted, with wages tripled to keep the lines running.

They bought 99.3% of the possibilities and one of the tickets hit. The prize was claimed anonymously through a limited partnership and the US$95 million annuity collected as a cash-value jackpot paid US$57.8 million.

iBankroll

Marantelli’s latest venture flips him from hunter to game keeper. For wagering operators, especially for challenger brands, the biggest risk is bankroll. A small share of users drives most GGR, and the same cohort can wipe you out overnight.

iBankroll absorbs operator variance. Partners stream wager-level data, receive a fixed share of expected GGR upfront. In return, iBankroll shoulders the volatility. That underwriting lets operators raise limits, fund instant withdrawals, and compete for VIP play without stressing the balance sheet.

It also gives challenger brands day one credibility to take “Stake sized stakes” and brands such as Klub28 already bannering their website with iBankroll for customer assurance, and Marantelli believes it will become industry standard.

“Cash-out was win win, and was globally adopted – I think iBankroll will be equally dominant for 1000s of challenger brands, once 100 challengers take this those without it will truly be left behind” 

He believes that number will be reached in less than six months, with 15 already signed and 20 more in discussions.

Marantelli’s core skill is risk management. Here it’s packaged as bankroll-as-a-service: a safety net that converts edge into stable, financeable revenue.

Power of the network

Marantelli’s career is a loop: find inefficiencies, build systems to exploit them at scale. White Swan hunts edges. Colossus lets bettors monetise pools. iBankroll now underwrites operator risk. He plays both sides of the table and raises the bar for the market.

The tools he’s built are practical and competitive. Having individuals like Bernard in our network is incredibly valuable – people with deep, cross-market know-how and a willingness to collaborate on real opportunities.

Pitch Waterhouse VC

If you know any gambling tech companies seeking capital or distribution support, our ‘Pitch‘ page makes it simple to connect with our investment team.

Waterhouse VC is a fund that specialises in global publicly listed and private businesses related to wagering and gaming sectors. The fund is only available to wholesale investors.

Since inception in August 2019, Waterhouse VC has achieved a gross total return of +3,766% (annualised at 82%), as at 30 September 2025, assuming the reinvestment of all distributions.

To date, more than 22,000 new ‘Wave’ terminals have been installed at locations across the UK. The new machines are replacing terminals that have been in place since 2009.

Features on the new terminals include a high-speed processor for faster transactions and larger, tilt-adjustable LCD screens. Wave machines also offer wireless 1D barcode and 2D code scanners and a play slip reader that can be fed both horizontally and vertically.

Allwyn announced details of the upgrade project in August, with over 8,000 terminals having already been installed by the end of the month. It pledged to instal thousands more by the end of the year but has not put a deadline on when the project will complete.

It pressed ahead with further instals after a major tech upgrade earlier in August. This included wide-scale changes across the National Lottery retail network, such as new terminal software and switching platforms.

Incidentally, the move to Scientific Games’ Momentum ecosystem was billed as the largest ever in the global lottery market. Momentum now powers National Lottery operations across 43,500 retailers in the UK.

Allwyn National Lottery investment exceeds £400 million

Jenny Blogg, director of operations at Allwyn, welcomed the progress to-date. She said it is part of Allwyn’s broader strategy to improve the National Lottery for players, retail partners and good causes.

“Our wide-ranging transformation of the National Lottery continues at pace, with thousands of Wave terminals being installed every week,” Blogg said. “We’ve now invested more than £400 million upgrading the National Lottery’s outdated operations and technology.

“Not only is this generating a hugely positive response from our retail partners, but it stands us in good stead to deliver on the exciting plans we have for new games, a better player experience and a commitment to double returns to good causes from £30 million to £60 million every week by the end of our licence.”

Allwyn took over operating the National Lottery in February 2024, having secured the licence in September 2023. The licence runs for 10 years, with Allwyn having replaced Camelot, which had run the National Lottery since its launch in 1994.

Wider commitment for change at Allwyn

It is not just in the UK where Allwyn has been making significant changes to its business, with several major developments having been revealed in recent months.

Earlier in October, Allwyn International and OPAP agreed to merge and create a lottery and gaming business worth an estimated €16 billion. The deal, which is set to close in H1 next year, also includes plans to list on another global international exchange such as London or New York.

This announcement comes just weeks after the acquisition of a majority stake in daily fantasy sports (DFS) operator PrizePicks. The deal provides Allwyn with access to the US DFS and betting space. Its only other link to the US market is via its Illinois Lottery operation.

Meanwhile, in July, Allwyn International announced the sale of its land-based casino assets in Germany and Australia. It also acquired the remaining minority stake in Greece- and Cyprus-facing online operator Stoiximan.

Aside from this, the group recently established its new Allwyn Digital division. Led by ex-Betfred US CEO Kresimir Spajic, the business aims to evolve Allwyn in a more heavily digital direction, providing bettors with engaging experiences.

Revenue for the three months to 30 September amounted to €864 million ($1.01 billion), FDJ United reported. This fell short of the €890 million restated amount for the corresponding period in the previous year.

Restated revenue for Q3 2024 is based on the assumption that Kindred Group was part of the FDJ business last year. FDJ United closed its €2.45 billion acquisition of Kindred in October 2024, with its results first included in the group’s Q4 2024 numbers.

However, FDJ flagged that revenue would have been stable had it not been for various gambling tax increases across Europe, primarily France. It said the impact of the higher taxes was €21 million, with €18 million of this coming from rises in France.

Tax increases in France came into effect on 1 July and spanned both land-based and iGaming activities. The largest rise was for online betting, with the rate rising to 59.3% from 54.9% of GGR. Previously, FDJ said the changes would cut €45 million from its EBITDA total for 2025.

The market also faced increases across social welfare contributions from gambling operators as of last July.

“The change in FDJ United’s revenue at the end of September reflects the prolonged decrease in our online betting and gaming business in certain markets and the impact of higher taxation on gaming, particularly in France since 1 July,” Chairwoman and CEO Stéphane Pallez said.

Some growth despite tax impact in Q3

Detailing its performance, FDJ United revealed mixed fortunes across its four business segments. French lottery and sports betting remained the primary source of revenue at €595 million, a rise of 2.1%.

However, excluding the €14 million impact of gaming tax increase on lottery, revenue here would have been 4.5% higher year-on-year.

Lottery revenue climbed 2.5% to €508 million, driven by draw games and instant games. As for sports betting, this remained level at €87 million, despite a tough comparison period in 2024 that included the latter part of the Euro 2024 football tournament.

However, revenue from online betting and gaming fell 15.6% in Q3 to €209 million, again on a restated comparison basis.

FDJ put this down to an additional tax deficit of €7 million, mainly due to the rises in France but also in Romania. It also noted tighter regulations in both the UK and the Netherlands.

As for the other two segments, international lottery revenue edged up 0.3% to €44 million for the quarter. However, revenue from payments and services dipped 1.8% to €16 million.

Year-to-date revenue tops €2.73 billion at FDJ

As to how Q3 impacted FDJ in its year-to-date, revenue for the nine months through to the end of September hit €2.73 billion. This was 2.1% short of last year’s restated €2.79 billion total.

Declines were reported in all but one of the group’s business segments. French lottery and retail sports betting revenue was up 3.1% to €1.89 billion, with a 4.8% rise in lottery revenue to €1.57 billion offsetting a 4.8% decline in sports betting revenue.

Online betting and gaming revenue fell 12.9% to €675 million on the back of higher taxes in France and tightened regulations in other markets. International lottery revenue also dipped 11.5% to €124 million – due to the sale of Sporting Group at the end of 2024 – while payments and services revenue slipped 1.6% to €47 million.

FDJ vows to step up cost cutting

Looking ahead, FDJ said it anticipated a slight drop in revenue for the fourth quarter. This will likely be due to lower revenue from French lottery and retail sports betting, as Q4 includes several “exceptional events” in draw games. However, online betting and gaming revenue is likely to be stable.

With this, FDJ said it expects full-year revenue to reach “more than €3.70 billion”. Given that last year’s restated total was €3.79 billion, this could mean a year-on-year decline in revenue for the group. Recurring EBITDA is set to hit approximately €900 million with a recurring margin above 24%.

In addition, FDJ said it will now step up its cost reduction efforts as part of its 2025-2028 performance plans.

“The group deepens its transformation and performance plan in 2025 and pursues the operational implementation of its strategy, in line with the growth objectives of its Play Forward 2028 plan,” Pallez said.

On Monday, Trinidad and Tobago Finance Minister Davendranath Tancoo fired a warning to illegal operators in his budget statement.

According to Tancoo, the National Lotteries Control Board (NLCB) contributes an annual GGR of nearly TTD3 billion ($441.9 million).

However, Tancoo said illegal lotteries offering bets and payouts facilitated by third parties on the NLCB’s legal lottery games “continue to impair the NLCB’s profit margins”.

Tancoo estimates revenue from illegal lotteries in Trinidad and Tobago amount to upwards of TTD9 billion a year, which is three times the licensed market.

As a result, he proposed increasing the penalties against illegal lotteries, beyond the existing sanctions in sections 19, 20 and 21 of the Gambling and Betting Act.

Section 19 would be amended to increase the penalty to a fine of TTD250,000 and imprisonment for three years, or conviction on indictment to a fine of TTD3 million and a prison sentence of seven years.

The plans are in line with the government’s Gambling (Gaming and Betting) Control Act 2021, which is awaiting its full enforcement. Currently, only parts I, II and X of the act have been proclaimed by the government.

Trinidad and Tobago looking to stay one step ahead

Tancoo also highlighted a new form of illegal gambling in Trinidad and Tobago, in which lottery tickets issued to players resemble a receipt from a grocery store, using the results from the NLCB’s online lottery draws.

In response to this, Tancoo proposed the introduction of a new criminal offence, which criminalises the receipt of a bet, issuance of a ticket or the payout of any proceeds from NLCB’s online draw results.

This offence would carry the same penalties laid out by Tancoo in the amended Section 19 of the Gambling and Betting Act.

Under the new offence, the NLCB’s evidence of its draw results and who it believes are authorised agents will be treated as prima facie evidence, allowing the police to act upon NLCB-provided information.

The law would also broaden the definition of “ticket” to cover “grocery receipts”.

Plans for a more efficient revenue transfer

Additionally, Tancoo said a lack of audits has led to the NLCB retaining “tens of millions of dollars” that should have been transferred to the government over the years.

To stamp out this issue, Tancoo proposed quarterly payments from the NLCB to the Consolidated Fund, the main bank account for the Trinidad and Tobago government. Currently, these payments are made on an annual basis.

NLCB would also be subject to financial limits expressed by the minister of finance for various expenditures, bringing in a “hard and fast budget” that would result in better revenue retention.

The arrangement has been approved by the boards of both companies and the combined business will operate under the Allwyn brand. Allwyn will hold a 78.5% economic interest in the new-look company, with OPAP taking 21.5%.

The transaction will build on an existing partnership, dating back to 2013 when KKCG, the controlling shareholder of Allwyn, first invested in OPAP.

At present, Allwyn owns 51.78% of the total holding in OPAP.

Subject to closing conditions, including approval from Greece’s Hellenic Gaming Commission, the merger will close in H1 of 2026.

After completion, the business will remain listed on the main market of the Athens Stock Exchange. There are also plans to list on another global international exchange such as London or New York.

What will the Allwyn-OPAP business look like?

Allwyn and OPAP said the merger will create the second largest listed gaming entertainment company in the world.

On Allwyn’s part, the company said it represents the “natural next milestone” in its journey. It said a public market listing will unlock access to equity capital markets for future growth.

As for OPAP, Allwyn said the deal safeguards its long-term value, with OPAP shareholders to benefit from wider growth opportunities. Independently, OPAP has made a strategic decision to change its consumer brand from OPAP to Allwyn as of Q1 2026.

In agreement with Allwyn, OPAP will “hive down” its business to new Greek subsidiaries and transfer its statutory seat to Luxembourg.

Allwyn will contribute its assets and liabilities in consideration for newly issued shares in LuxCo, forming the combined business. The new-look business will subsequently re-domicile to Switzerland, where Allwyn is headquartered.

Noted highlights of the combination include positioning the new-look business to capitalise on key industry trends. With this comes double-digit projected EBITDA CAGR from 2024 to 2026, substantially higher than OPAP on a standalone basis

Allwyn also referenced digitalisation, in particular ownership of key technologies, proprietary content and AI capabilities. This, it said, will reduce dependency on third parties and help to accelerate innovation and time-to-market. The company also spoke of diversification and “significant strategic optionality” in markets around the world.

Chvatal takes the helm

Current Allwyn CEO Robert Chvatal will lead the combined company as CEO. He will be supported by Allwyn CFO Kenneth Morton, who will remain in his present role.

OPAP’s current management team, led by Jan Karas as CEO and Pavel Mucha as CFO, will head up OPAP’s operations in Greece and Cyprus.

Karel Komarek will chair the business with an eight-person board. This will include the six existing Allwyn directors and two newly appointed independent non-executive directors.

“This transaction marks a further milestone in Allwyn’s successful journey,” Chvatal said. “Since being founded 13 years ago, we have grown substantially in terms of business performance, scale and innovation.

“With this combination, we will be able to grow further, faster as we deploy group-wide know-how, a unified brand and sponsorship strategy, and in-house technology and content.”

OPAP CEO Karas added: “This exciting combination creates a leading gaming company with strong Greek heritage, as well as a continued presence and listing in Greece. I’m excited about the opportunity for OPAP to deepen our strong existing relationship with Allwyn, driving innovation and additional growth opportunities.”

“For investors, this is a unique opportunity to be part of a dynamic company that is shaping the future of entertainment,” Komarek said. “The combined strength and scale of these multi-billion dollar businesses, massive customer base and Allwyn’s continued investment in technology and content, will accelerate innovation and fuel significant international growth.

“We’re on a mission to build the world’s leading global gaming entertainment company, and today’s transaction takes us one step closer to that goal.”

Allwyn continues to evolve

The merger marks the latest major development at Allwyn as part of its wider growth plans.

Just a few weeks ago, it announced the acquisition of a majority stake in daily fantasy sports (DFS) operator PrizePicks. The deal provides Allwyn with access to the US DFS and betting space. Its only other link to the US market is via its Illinois Lottery operation.

The company also recently established its new Allwyn Digital division. Led by ex-Betfred US CEO Kresimir Spajic, the business aims to evolve Allwyn in a more digitally led way, providing bettors with engaging experiences.

Aside from this, Allwyn carried out a major tech overhaul of the UK National Lottery, which it took control of in February last year. This included upgrading over 43,500 retail partners to new terminal software and a new platform.

As for Allwyn’s next move, the group could look to utilise the OPAP merger to take ownership of Betano. Allwyn took an initial 36.75% holding in Betano – which is majority owned by OPAP – in April 2022.

With OPAP now merging with Allwyn to become a combined business, the latter may see swallowing up Betano as the next, logical step in its expansion strategy.

During a “super draw” on 19 April this year, 52 players were incorrectly drawn as winners of million-krone prizes. This, Norsk Tipping said, was due to a technical error within its lottery system.

The error saw players who submitted bets through cooperative banks around Christmas and New Year deleted from the system. They were then subsequently excluded from the draw at Easter.

According to Lotteritilsynet, some 16,698 participants and 0.2% of the ranks were impacted by the error. This meant the draw was not carried out properly, with some users incorrectly winning prizes valued in the millions.

Norsk Tipping refunded the stakes of players who did not participate in the draw. However, Lotteritilsynet said that as the draw process breached the country’s Gambling Act, Norsk Tipping should be sanctioned.

In its notice on Monday, Lotteritilsynet said this penalty fee could be set as high as NOK25 million. Norsk Tipping has three weeks from the date of this notice (29 September) to comment on the case before the regulator makes its final decision.

‘Gross negligence’ from Norsk Tipping

Tore Bell, department director of Lotteritilsynet, hit out at Norsk Tipping over the matter. He noted how Norsk Topping had been aware of issues for some time and that the regulator had considered stepping in. However, following assurances from the operator, Lotteritilsynet allowed the draw to proceed.

“Trust that the draw and the basis for the draw will be correct is absolutely fundamental for a lottery,” Bell said. “Therefore, it is very serious when this has not been in place.

“This is gross negligence. Norsk Tipping did not check that all ranks were included in the draw, even though they had knowledge at the time that there had been serious errors in the draw basis over a long period of time.

“We can stop a lottery that is not being carried out correctly. We considered that in this case, but we received repeated guarantees that the draw would proceed correctly. It is unacceptable that there were still errors in the draw.”

Bell also flagged that Norsk Tipping had submitted a preliminary security report on this draw shortly after it was carried out. This stated that the draw was carried out without issue, with all players having the same chance of winning. However, this was not the case.

“It is reprehensible that Norsk Tipping could establish that the super draw was carried out correctly despite not checking that everyone who had bought tickets was allowed to participate in the draw,” Bell said. “This is likely to weaken trust in the company.”

Penalties continue to mount up for Norsk Tipping

Should Lotteritilsynet proceed with the penalty fee, it would be the fourth issued to Norsk Tipping in the past year.

The largest fee was set at NOK46 million earlier in September for a technical failing related to Eurojackpot and Lotto. The regulator found players in cooperatives, gaming clubs and cooperative banks had a greater chance of winning than they should have had.

A separate penalty of NOK36 million was announced in March after a bug prevented self-excluded players from blocking themselves from their Norsk Tipping accounts. This followed a NOK2.5 million fine in 2024 after the company mistakenly paid a player NOK25 million in incorrect winnings.

In addition, Lotteritilsynet recently said Norsk Tipping could face a further NOK10 million penalty over an error on the Eurojackpot game. Some 47,000 players were incorrectly notified that they had won excessively high prizes in a draw on 27 June. Incidentally, this led to previous Norsk Tipping CEO Tonje Sagstuen resigning from her post.

“All these cases make it crucial that Norsk Tipping tightens its routines, controls and the quality of what it does,” Bell said. “That is why we have announced a major inspection this autumn where we will look at Lotto, Eurojackpot and Vikinglotto.”

Lotteritilsynet had faced criticism over its handling of the cases. Gambling trade bodies across Scandinavia banded together to condemn a “lack of action” from the regulator following the scandal. They deemed the incident “exhibit A in the case against state gambling monopolies”.

For the Eurojackpot draw on 27 June this year, some 47,000 people were told they had won a large prize. In addition, 30,000 of these players received SMS or push notifications on their phones about the supposed prizes.

The issue was caused by an error in a formula used to convert prize from euros to kroner. Prizes were mistakenly multiplied by one hundred instead of dividing by one hundred. There were no issues with the Eurojackpot draw itself.

Lottstift in July ruled Norsk Tipping had violated the country’s Gambling Act. However, the regulator stopped short of taking action while it carried out a review of the operator – although this remains ongoing.

Now, Lottstift said Norsk Tipping will be ordered to pay up to NOK10 million for the failing. This represents 0.1% of Norsk Tipping’s turnover, which was just over NOK10.2 billion in 2024.

The operator will have up to three weeks to respond to the ruling and set out any case it may want to raise to have the fine reduced. Norsk Tipping has already implemented several measures to avoid similar errors in the future.

Norsk Tipping to reduce charity contributions

In response to the fine, Norsk Tipping’s acting CEO Vegar Strand said the company is taking the violation of gambling regulations very seriously.

He apologised for the failing and said extensive measures have been taken to strengthen routines, monitoring and processes across the company.

“Our most important task going forward is to ensure that our games and services work as they should, and that customers can trust us,” he said.

As a result of the fine, Norsk tipping would reduce its charity contributions.

‘Serious breach of trust’ by Norsk Tipping

Lottstift Director Atle Hamar hit out at Norsk Tipping over the Eurojackpot scandal. He said players should be able to play games knowing that they can trust the operator.

“Players should be able to trust Norsk Tipping, and this is a serious breach of trust,” Hamar said.

“Of course, it must be brutal when you receive a notification that you have won a large prize, and then it is not true. This case is harmful to trust in Norsk Tipping.

“It is reprehensible that the error was not discovered in connection with either testing or controls, but only after the message about the incorrect prize amount had been sent to the players.”

In addition to the penalty, Lottstift will have “extensive” monitoring of the Lotto, Eurojackpot and Vikinglotto games offered by Norsk Tipping. This will form part of its ongoing review of the operator.

Gambling trade bodies across Scandinavia banded together to condemn a “lack of action” from the Norwegian regulator following the scandal. They deemed the incident “exhibit A in the case against state gambling monopolies”.

Previous Norsk Tipping CEO Tonje Sagstuen resigned from her post when the incident was revealed in June.

Multiple issues at Norsk Tipping

The Eurojackpot prize case was just one of several issues flagged at Norsk Tipping in recent months.

Earlier in September, Norsk Tipping was handed a NOK46 million penalty over a technical failing related to Eurojackpot and Lotto. The regulator found players in cooperatives, gaming clubs and cooperative banks had a greater chance of winning than they should have had.

Users who played alone had a lower chance of winning, with the error having been present since 2015. Norsk Tipping first became aware as early as November 2024 of possible errors but did not investigate it further.

In March, a NOK 36 million fine was also issued after a bug prevented self-excluded players from blocking themselves from their accounts. This followed a NOK2.5 million fine in 2024 after the company mistakenly paid a player NOK25 million in incorrect winnings.

Hadar said each case revealed “serious errors” at Norsk Tipping that need to be addressed.

“Norsk Tipping has too poor control over its games, and the cases show a fundamental problem in both the system and controls,” Hamar said. “These are serious errors, and they have not been discovered until the consequences are major.”

Momentum now powers the National Lottery operations across 43,500 retailers in the UK. Scientific Games said the switch represented the largest technology conversion in global lottery industry history.

Allwyn sought to replace the lottery’s legacy 2009 central gaming system, integrating several new systems across multiple suppliers. This saw 43,500 retailer terminals converted to the software ahead of a full rollout of Scientific Games’ WAVE terminals in August.

The tech upgrade took place between 2-4 August, with National Lottery systems shutting down completely to allow for the transition. Scientific Games completed the switch overnight, with almost all retailers resuming ticket sales soon thereafter. Allwyn and Scientific Games then partnered to deliver additional technical support to remaining retailers, with this process now complete.

Anchored by Scientific Games’ central lottery gaming system, Momentum includes several value-add products such as the Gem suite of enterprise, Salesforce, claims and licensing applications. Momentum is also used to power lotteries across North America, Europe and Oceania.

“This is a once-in-a-generation opportunity to deliver the National Lottery that the UK deserves,” Allwyn CEO Andria Vidler said of the shift.

“We’ve made unprecedented and much-needed changes. These are moving us closer to achieving our vision for the National Lottery, restoring its magic and significantly increasing its positive impact on lives across the UK.”

Further improvements ahead for National Lottery

The tech upgrade is just one of the changes Allwyn has planned for the National Lottery. It is also switching up the lottery’s digital offering, with upgrades set to be rolled out in due course.

Scientific Games has committed to supporting Allwyn with its National Lottery plans. Early in 2024, in line with Allwyn assuming control of the lottery, the supplier opened a new logistics facility in Warrington in the UK to serve National Lottery retailers.

“We continue to be impressed with the smooth execution of this large-scale, collaborative project with Allwyn UK,” Scientific Games CEO Patrick McHugh said.

“A network of more than 43,000 terminals was switched from the legacy system to the new Scientific Games systems, with retailers nationally selling two hours ahead of the planned cut-over schedule.

“Our global technology teams are inspired as we have a number of systems conversions actively under way.”

Allwyn’s Vidler added: “These major upgrades will allow us to deliver on our promise to bring new, exciting games; a better player experience; and our commitment to double returns to good causes by the end of the 10-year licence.

“We’re very grateful to our players, our retailers and our partners, stakeholders and colleagues for their ongoing support. We look forward to working with Scientific Games to deliver the further upgrades to the National Lottery’s digital channels.”

Regulatory action still a possibility over delays

However, while Allwyn remains committed to further upgrades, it could be penalised over delays to this process.

Great Britain’s Gambling Commission is said to be weighing up regulatory action over failure to deliver on promises made during its successful bid for the fourth National Lottery licence. According to The Times, the regulator is concerned that Allwyn has not met certain contractual milestones since securing the licence.

Among the mooted changes are reduced ticket prices for National Lottery draws from £2 to £1. This has yet to be implemented despite Allwyn pledging to do so prior to securing the licence.

A statement sent to iGB by Allwyn in July said of the delay: “Due to the delay to the technical cutover, we have missed a contractual milestone in the Enabling Agreement.

“We continue to work together with the Gambling Commission on the impact of this missed milestone under the terms of the Enabling Agreement. The Gambling Commission is still investigating what, if any, enforcement action might be taken against Allwyn in relation to the missed milestone.”

The commission said it would not comment on individual cases before any decisions are made.

Revenue in the three months to 30 June 2025 amounted to €2.27 billion ($2.66 billion), data from Allwyn showed. This was clear of €2.15 billion in Q2 last year, while the 6% increase was in line with overall growth seen in Q1 of 2025.

Meanwhile, revenue from gaming activities, referred to by Allwyn as gross gaming revenue (GGR), also climbed 6% year-on-year to €2.19 billion. Of this, 42% was attributed to digital operations, up 16% from the previous year.

“I am very pleased to report another quarter of strong financial performance following our strong first quarter, reflecting continued successful execution of our growth strategies,” Chvatal said. “Total revenue increased 6% year-on-year in the second quarter on a reported basis. This is in line with our growth rate in the first quarter, and 9% year-on-year excluding a one-off benefit to GGR in the comparative period.

“This excellent performance reflected our focus on growth in the digital channel, alongside the dedication of our teams across markets to enhancing the customer proposition and the player experience. As always, we delivered this growth while maintaining our commitment to player safety and upholding our responsibilities to all stakeholders.”

UK GGR tops €1.09 billion in Q2

Breaking down its Q2 performance, Allwyn said numerical lotteries drew the most GGR at €1.22 billion, up 8% from last year.

Instant lotteries GGR climbed 3% to €355 million, while iGaming was up 13% to €191 million and video lottery terminal (VLT) and casino GGR 5% to €231 million. The only decline came in sports betting, with GGR in this sector dipping 2% to €185 million.

Geographically, the UK continued to lead the way. This has been the case since Allwyn took control of the UK National Lottery in February 2024. For Q2, GGR in the UK reached €1.09 billion, up 7% year-on-year.

Detailing this growth, Allwyn highlighted the performance of EuroMillions, which benefited from favourable jackpot cycles and successful promotion events. Online instant win games also saw growth, helped by new game launches and increased player activity. It added that unusually high levels of prize payouts in the comparative period supported top-line growth.

“We remained focused on the ongoing execution of our plans to transform the UK National Lottery,” Allwyn said. “This included upgrading legacy technology infrastructure that has long constrained new product development and innovation, to support future commercial initiatives and the further enhancement of the customer proposition.”

This improvement work continued post-Q2, with Allwyn announcing several developments. Above all was a major tech upgrade, where, from 2-4 August, Allwyn carried out wide-scale changes across the lottery retail network. This included launching new terminal software and moving onto a new platform.

Alongside this, Allwyn committed to installing thousands of new lottery terminals over the coming weeks. In total, over 30,000 Wave terminals will be placed in the premises of retail partners that currently use Allwyn’s existing machines.

Allwyn reports growth in all regions

Elsewhere, Allwyn said its Greece and Cyprus market saw good growth in Q2, with GGR rising 5% to €583 million. This, it expanded, was supported by the online channel, where GGR increased 9%. It added that growth in the physical retail channel remained “solid” at 3%.

Allwyn also saw a 4% increase in GGR in Austria to €403 million. Here, GGR from numerical lotteries was 6% higher and instant lotteries 10%, while online GGR climbed 7%.

“The strong performance in numerical lotteries was supported by favourable jackpot cycles in the main national game, Lotto, as well as multi-national jackpot game, EuroMillions,” the operator said.

Finally, GGR in the Czech Republic, where Allwyn originated, reached €133 million. This was 9% higher than the previous year, with growth higher than in any other region. Allwyn noted “strong” growth across all major product lines, including numerical lotteries (12%).

Away from GGR, Allwyn reported €54 million in revenue from its Technology and Content segment in North America. This was 7% lower than Q2 last year, with the group putting these numbers down to lower incentive compensation fees owing to unfavourable cycles for multi-state jackpot games, Powerball and Mega Millions.

Earnings increase in Q2

Allwyn did not publish a full breakdown of its finances. However, it did offer an insight into its earnings for Q2. Net revenue for the period climbed 6% to €994 million, although operating EBITDA slipped 8% to €301 million.

However, Allwyn noted €61 million worth of adjustments to EBITDA. These included the add-back of certain non-cash amounts relating to the acquisition of its interest in Instant Win Gaming (IWG). Allwyn took a majority stake in IWG in February 2024.

After applying these adjustments, this left an adjusted EBITDA of €362 million, up 6% year-on-year. In addition, adjusted EBITDA margin improved from 36.1% to 36.4%.

As for H1, total revenue increased by 6% to €4.52 billion, with GGR also 6% higher at €4.34 billion. Net revenue also climbed 5% year-on-year to €2.00 billion.

Operating EBITDA dropped 5% to €612 million. However, after applying adjustments, this left €728 million in adjusted EBITDA, an increase of 4% from the previous year.

“Overall, I am very pleased with our continued progress,” Chvatal said. “I believe we’re well-placed for the remainder of 2025 and the next chapters of our growth story.”

Allwyn continues working to improve player experience

On this note, Allwyn has announced several other developments to support its expansion strategy. Alongside its UK-focused activity with improvements to the National Lottery, it made several M&A moves.

The first came in Q1, with Allwyn agreeing to acquire a 51% majority stake in Logflex MT Holding Limited, the owner of online sports betting and gaming group Novibet. Allwyn will pay an initial €217 million, with up to €110 million also due depending on performance of the business.

More recently, just after the end of Q2, Allwyn announced the sale of land-based casino assets in Germany and Australia. It also acquired the remaining minority stake in Greece- and Cyprus-facing online operator, Stoiximan.

This, Allwyn said, supports its increasingly digital-focused strategy. In relation to this, Allwyn appointed Kresimir Spajic as CEO of its new Allwyn Digital business, with a remit to lead its global digital expansion. Spajic began his new role on 1 September.

Just prior to releasing its Q2 results, news also broke of KKCG selling a 4.27% stake in Allwyn International to another Czech investment fund, J&T Arch Investment. The sale, Allwyn said, will allow more investors to support the group moving forward. KKCG will retain a majority 95.73% stake in Allwyn, held via Allwyn AG.

The deal valued Allwyn’s share capital at €11.20 billion.

GGR in the six months through to 30 June amounted to €1.15 billion ($1.34 billion), OPAP reported on Wednesday. This comfortably surpassed the €1.08 billion reported in the first half of last year.

Four of five segments within OPAP reported growth in H1, the exception being instant and passives, which saw a slight decline. Lottery remained its main source of revenue, ahead of sports betting, but it was iGaming that experienced the most growth.

Revenue from iGaming in H1 topped €171.3 million, up 22.1% from the same period last year. OPAP put this down to higher player engagement, with this backed up by comments from CEO Jan Karas.

Double-digit growth was recorded in the iGaming business across both the first and second quarters of 2025. This continued a trend that carried over from 2024, with iGaming the main area of growth for OPAP.

“iGaming delivered strong results for yet another quarter,” Karas said. “This was supported by the continuous evolution of the game portfolio, user experience and loyalty proposition.”

Lottery leads the way in H1

However, Karas also highlighted continuing success within the group’s lotteries segment. Here, he picked out both the Tzoker and Eurojackpot draws as stand-out catalysts for growth.

Lottery revenue was up 3.9% year-on-year to €386.7 million, the largest of any segment at OPAP.

“Revenue growth was driven mainly by Tzoker,” he said. “It maintained high levels of player engagement and performance thanks to a series of favourable jackpot rollovers, which also extended into Q3.

“Eurojackpot’s positive momentum also continued, supported by a new communication campaign. These factors had a broader positive impact on retail footfall and all gaming verticals.”

Euro 2024 impacts sports betting performance

Elsewhere, sports betting revenue climbed 5.2% to €368.2 million. This was impacted by tough comps in Q2 with the early stages of the Euro 2024 football tournament last year. Betting revenue was down 1.9% during the quarter.

This offset growth within the segment in Q1.

Another area that saw 4.3% revenue growth was video lottery terminals (VLTs) to €173.7 million. OPAP said that this was due to product enhancements and ongoing terminal upgrades across its network.

The one area of decline for OPAP – instant and passives – saw revenue dip by 0.5% to €52.2 million. However, with the segment returning to growth in Q2, this suggested a change in fortunes, with scratchcards reversing the recent downward trend.  

Bottom-line net profit tops €239.7 million

After GGR contribution and other levies and duties, net gaming revenue in H1 was €787.9 million, beating last year by 6.4%.

Costs were higher but revenue growth offset this, with EBITDA rising 6.6% to €398.4 million. Operating profit was 7.3% higher at €329.8 million, while pre-tax profit climbed 7.0% to €324.5 million.

Income tax payments totalled €84.5 million, meaning OPAP ended H1 with a bottom-line net profit of €329.7 million, up 6.6% year-on-year. This was split €233.4 million to owners of the company and €6.3 million to non-controlling assets.

Q2 revenue up 4.7% at OPAP

As for Q2, GGR climbed 4.7% to €557.9 million. Again, this was helped by double-digit growth in the iGaming segment, while the lottery, betting, VLT and instant and passives businesses also saw increases.

Q2 net gaming revenue climbed 4.9% to €381.5 million, with gross profit up 5.5% to €236.2 million. EBITDA was 4.3% higher at €191.3 million while net profit to owners of the company increased 3.6% to €110 million.

“Looking ahead, we are confident that OPAP is well positioned to meet its financial and business objectives for FY2025,” Karas said. “We remain focused on the implementation of our strategic priorities, while continuing to uphold our ESG commitments and create value for all our stakeholders.”

Lottstift flagged the issue with state-owned Norsk Tipping earlier in the year, warning that it could face a financial penalty. Its initial notice proposed the same NOK46 million penalty, equal to 0.45% of Norsk Tipping’s turnover in 2024.

The case related to the operator’s Eurojackpot “extra” and Lotto “super” draws. The regulator found players in cooperatives, gaming clubs and cooperative banks had a greater chance of winning than they should have had.

Users who played alone had a lower chance of winning, with the error having been present since 2015.

During its investigation, Lottstift discovered Norsk Tipping first became aware as early as November 2024 that there may be errors in the Eurojackpot draw. However, the operator did not investigate it further.

Lottstift also found Norsk Tipping had received tips about errors in January of this year. However, it carried out two further draws before investigating and uncovering the error.

Lottstift: Players should be able to trust Norsk Tipping

Commenting on the ruling, Lottstift Director Atle Hamar hit out at Norsk Tipping. He said the error will have impacted “millions” of players over the past 10 years.

“Players should be able to trust Norsk Tipping games are safe and fair,” Hamar said. “The error itself is serious and it is aggravating that it was not discovered until many years had passed.

“With the market position Norsk Tipping has, one can expect that such errors will be discovered and corrected immediately.

“This is careless and the threshold for investigating possible errors has been too high.”

Another sanction for Norsk Tipping

This marks the third time in under a year that Norsk Tipping has been penalised for breaching regulations.

In March, a NOK 36 million fine was handed out after a bug was found to have prevented self-excluded players from blocking themselves from their accounts. This followed a NOK2.5 million fine in 2024 after the company mistakenly paid a player NOK25 million in incorrect winnings.

In June, several thousand players were notified of excessively high prizes in Eurojackpot. On this, Lottstift ruled that Norsk Tipping had violated the country’s Gambling Act.

However, while it was placed under review, the operator is yet to be sanctioned over this. Carl Fredrik Stenstrøm, secretary general of the Norway Association for Online Gaming, has criticised the handling of the case.

“When neither the owner (Norway’s minister for culture), the chairperson, nor the CEO takes responsibility, the Gaming Authority must step in,” Stenstrøm said in August.

“The Gambling Act is clear: Norsk Tipping must operate responsibly and prevent harmful consequences. When legal breaches are repeated year after year, fines are no longer sufficient. The sanctions must be stronger.”

Hamar has also voiced further concerns about the operator. He said: “Norsk Tipping has poor control over its games and we have seen several examples of errors not being discovered until the consequences are major.

“Therefore, we want to have a sharp and thorough supervision of Lotto, Eurojackpot and Vikinglotto, which are the largest lottery games they have.”

KKCG will take away €500 million in total proceeds from the sale. The deal was structured as a sale of equity in Allwyn by KKCG’s wholly owned subsidiary Allwyn AG. It will retain a majority 95.73% stake in Allwyn, held via Allwyn AG.

The sale, Allwyn said, will allow more investors to support the business moving forward. J&T Arch is a qualified investor fund on Prague’s Stock Exchange, with a net asset value of approximately €5.6 billion.

KKCG gives investors a stake in Allwyn’s rapid growth

Allwyn originates in the Czech Republic, starting out as Sazka Group. This business previously operated the Czech national lottery and was under state control. KKCG acquired a majority state in 2011.

This was followed by a joint venture with EMMA Capital, another Czech investment business, and expansion into Greece via OPAP, Italy through Lottoitalia and Austria with Austrian Lotteries. KKCG later bought EMMA Capital’s 25% stake in Sazka Group.

Under its sole control KKCG later acquired a majority stake in Casinos Austria, rebranded to Allwyn in 2022 then secured the UK’s fourth National Lottery licence, taking control in February 2024.

KKCG founder Komárek: Stake sale a ‘significant step’

Plans for a public listing have twice been set out, then shelved, with a UK listing scuppered by Brexit and plans for a New York Stock Exchange float shelved due to market volatility. However Allwyn has always said this represents a delay to its listing plans, rather than a cancellation.

Enabling more investors to get involved with the business will allow them to benefit from the group’s growth trajectory, KKCG founder and Allwyn chair Karel Komárek said.

“This is another significant step for Allwyn,” Komárek said. “It demonstrates the positive impact of KKCG’s vision and support for the business and investor confidence in Allwyn’s successful growth-led strategy.

“I see many opportunities ahead for significant and sustainable value creation for Allwyn. I’m delighted that a wider range of investors can now join us on that journey.”

J&T talks up growth prospects

Patrik Tkáč, co-founder of the J&T financial group, also talked up the deal. He said it is the culmination of years of relationship with KKCG’s Komárek.

“J&T Arch’s entry into Allwyn is the culmination of many years of business relations with Karel Komárek,” Tkáč said. “With his team, he has built an international entertainment platform out of a domestic player. This is another great story of a leading Czech entrepreneur’s business and the opportunity for our investors to participate in its future growth.”

Adam Tomis, member of J&T Arch’s investment committee, added: “Allwyn’s geographical footprint as the operator of national lotteries makes it unique. Our portfolio thus gains an investment in a sector characterised by strong market positions, resilience to economic cycles and high conversion of profits into free cash flow.

“Allwyn is in an excellent position to continue expanding and growing.”

Another major development at Allwyn

The sale represents the latest step in Allwyn’s ongoing growth and expansion plan. In July, Allwyn International announced the sale of its land-based casino assets in Germany and Australia. It has also acquired the remaining minority stake in Greece- and Cyprus-facing online operator Stoiximan.

This came after Allwyn in January agreed to acquire a 51% stake in Logflex MT Holding, the owner of Novibet. Allwyn hopes to complete the purchase of the holding in the online operator before the end of 2025.

Meanwhile, in August Allwyn appointed Kresimir Spajic as CEO of Allwyn Digital to lead its global digital expansion. With its new digital business, Allwyn hopes to evolve in a more digitally led way and provide bettors with engaging experiences.

In addition, Allwyn also recently detailed plans for a new lottery terminal rollout in the UK. It has pledged to install more than 30,000 Waves terminals at retail locations across the UK. Thousands of machine are set to be installed over the coming weeks.

The Norwegian monopoly’s CEO resigned. Then public trust collapsed. And yet, Eurojackpot and Norsk Tipping continue as if nothing has really happened. 

Who regulates the Eurojackpot draw?  

Eurojackpot is a transnational lottery draw run by 19 national monopolies, but without a proper supervisory mechanism. All operate the draw under the same brand, but without a shared regulator or any form of supranational oversight. Each monopoly guards its own turf.  

When the system fails in one country, the others simply carry on. In practice, Eurojackpot regulates itself. It can make severe mistakes without consequences for anyone but the players, who carry all the risk on behalf of the monopolies. 

On 27 June, Norwegian players experienced firsthand what this structure means in practice. Finland, which coordinates the Eurojackpot draw across all the participating countries, sent the results file to the 18 other participating countries.  

How did Norsk Tipping respond to the Eurojackpot scandal? 

Due to an error, the prize amounts in Norway were multiplied instead of divided. For example, a prize that should have been €3.50 was calculated as €350,000. Immediately, thousands of Norwegians received text messages claiming they had won millions, when in reality the winnings were only a few hundred kroner.  

The error was not immediately communicated, and many families began planning a new life – only to learn from the media they had been deceived and made fools of by the state monopoly they thought was trustworthy. 

The disaster unfolded on a Friday evening. Norsk Tipping did not send an apology until Monday morning, explaining officials had “not had time” to prioritise informing the players directly affected. Hardly credible. Such handling is unforgivable.  

And it is made worse by the fact that Eurojackpot’s structure is designed to push for ever-higher jackpots, selling the dream that anyone can win big. For many Norwegians, that dream spectacularly crashed on 27 June.  

An argument against gambling monopolies

State lottery monopolies were once sold to the public as guardians of responsibility and player protection. The reality is different. Shielded from competition, protected from meaningful oversight, they answer to no one – until scandal forces their hand. 

As long as Eurojackpot is run by national monopolies this must not remove the fundamental demand for better and more transparent supervision. No one should be their own supervisor. 

Under licensing, multiple operators compete under strict, enforceable rules. Oversight is continuous, breaches are punished swiftly and no operator can hide behind political protection or national borders.  

For players, for society and for the integrity of the industry, licensing means accountability. 

As we write this, another message arrives from Norsk Tipping: today’s (19 August) Eurojackpot prize forecast is postponed due to “a delay at the control centre in Germany”. Results will be published “as soon as everything is ready”, according to the Norwegian monopoly.  

It’s yet another example of Eurojackpot running the shop entirely on its own terms. There is no authority to set deadlines, impose quality standards or sanction failures. 

The Norsk Tipping Eurojackpot scandal should raise serious questions about the suitability of gambling monopolies in 2025. If 19 countries can share profits without sharing responsibility, the model is broken. And when a system is broken, you either replace it or repair it. 

Contributors:  

Mika Kuismanen – CEO, Finnish Trade Association for Online Gambling 

Gustaf Hoffstedt – secretary general, Swedish Trade Association for Online Gambling (BOS) 

Peter-Paul de Goeij – former managing director for Dutch trade body NOGA / managing consultant Quod Bonum 

Carl Fredrik Stenstrøm – secretary general at the Norwegian Trade Association for Online Gambling (NBO) 

In total, over 30,000 Wave lottery terminals will be placed with retail partners that currently use Allwyn’s existing machines.

Allwyn commenced the rollout earlier this year, with over 8,000 retailers already receiving new Wave terminals. The majority of these partners, Allwyn said, were retailers running Compact Lottery Terminals (CLTs).

However, Allwyn will now move to the next phase of the improvement project following a recent major tech upgrade. From 2-4 August, Allwyn carried out wide-scale changes across the National Lottery retail network. This included launching new terminal software and moving onto a new platform.

This upgrade took National Lottery services – across retail and online – offline from 11pm on 2 August to late morning on 4 August. Once back online, retailers that already had the Wave machines installed switched to the new terminals, while others have been using the new software on existing machine, ahead of receiving their new terminals.

Allwyn pledges thousands of installs per week

With the update complete, Allwyn has been overseeing the delivery and installation of Wave terminals with retail partners nationwide. This process began on 11 August, focusing on the replacement of legacy Altura machines. By the end of August, nearly 4,000 retailers will have had their Altura terminals replaced with Wave machines.

Then, from September, Allwyn will aim to install thousands of Wave machines each week at retailers across the UK. The operator did not state when it expects to complete the entire rollout.

The new Wave terminals feature a high-speed processor for faster transactions, a larger and tilt-adjustable LCD screen, wireless 1D barcode and 2D code scanners and a play slip reader. Retailers also have access to additional functionality including enhanced reporting features.

Allwyn Director of Operations Jenny Blogg said this represents further “generational change” for the UK’s National Lottery.

“We have invested more than £350 million ($471 million) in a comprehensive plan to transform the National Lottery, substantially improving its operations and technology,” Blogg said. “These will support exciting plans we have for new games, a better player experience and a commitment to double returns to good causes.

“Over the coming months, our team will be delivering and installing thousands of Wave machines every week. We understand the importance of this new technology in enhancing the in-store experience for both retailers and their customers.”

Allwyn building for the future

Confirmation of the rollout is the latest major announcement out of Allwyn in recent weeks.

In July, Allwyn International announced the sale of its land-based casino assets in Germany and Australia. It has also acquired the remaining minority stake in Greece- and Cyprus-facing online operator Stoiximan.

Meanwhile, in August Allwyn appointed Kresimir Spajic as CEO of Allwyn Digital to lead its global digital expansion. Spajic will start his new role on 1 September, with responsibility for advancing iGaming, sportsbook and digital product capabilities.

With its new Allwyn Digital business, the company hopes to evolve in a more digitally led way and provide bettors with engaging experiences.

Incidentally, this followed digital growth at Allwyn in Q1. For the first three months of 2025, group revenue climbed 6% to €2.24 billion, driven by digital growth. In total, digital revenue jumped 15% and represented 39% of all gross gaming revenue for Q1.

Also in recent weeks, Allwyn entered a new €2.15 billion senior facilities agreement with a syndicate of international banks. Allwyn will use this to refinance an existing syndicated bank, support ongoing growth plans and for general corporate purposes.

Covering the first and second quarter of 2025, the data sets out how much players spent on gambling across Germany. It includes certain areas within the regulated online and land-based markets.

GGL seeking ‘greater transparency’ by publishing frequent data

The inaugural dataset comes after Sandro Kirchner was appointed chairman of the GGL in July. Kirchner is currently state secretary in the Bavarian State Ministry of the Interior for Sport and Integration.

The GGL said it aimed to ensure greater transparency in the legal gambling market by publishing frequent data.

“The publication is intended to contribute to the fact- and evidence-based discussion and to the evaluation of the GlüStV 2021,” it said in a statement on Friday.

The sector is awaiting an update on the ongoing evaluation of German gambling regulation. The review was launched in December 2023 and aimed to assess the effectiveness of current regulations and make recommendations for improvements.

Stakeholders believe a number of crucial challenges could be addressed in the regulatory update, including player deposit limits and IP blocking efforts.

Q2 stakes decline compared to Q1

For Q1, total gambling stakes, excluding lotteries, amounted to €3.51 billion. Of this, €2.18 billion was attributed to sports betting, split €1.59 billion across online betting and €585 million retail sportsbooks. Up to €25 million was attributed to betting on horseracing.

Virtual slot games drew €1.1 billion worth of wagers during the first quarter. A further €204 million was bet on internet poker.

As for the second quarter, total gambling and betting revenue amounted to €3.22 billion, an 8.3% drop from Q1.

Sports betting wagers topped €1.89 billion, some 13.5% behind Q1. Online bets were down by 12.7%, while retail sportsbook spend fell 15.6% to €494 million. Horseracing climbed 28% to €32 million.

In terms of other activity, virtual slots wagers were up by 1.6% to €1.12 billion. Online poker spend declined 9.8%

Germany lottery stakes level top €377 million in Q1

Separately, the GGL revealed data on cross-border lotteries in Germany, with total spend in Q1 at €377 million.

This comprised €315 million from social lotteries and €61 million class lotteries.

For Q2, lottery spend amounted to €371 million, just 1.6% behind the first-quarter total.

Social lottery wagers were down 0.6% quarter-on-quarter to €313 million. Meanwhile, class lotteries spend fell 4.9% to €58 million.

In addition, the GGL noted €243 million in commercial gaming brokerage for the first quarter. This was only marginally lower at €240 million for Q2.

While group revenue increased by 32% to €101.5 million in the first six months of the year, EBITDA rose by a significant 76% to €35.4 million, compared to the same period in 2024.

In its half-year results, Zeal said its lottery business was the key driver for revenue growth.

Despite lower average jackpot levels for LOTTO 6aus49 and Eurojackpot, compared to the prior-year period, lottery billings (total value of tickets sold) increased by 4% to €527.3 million.

The business said successful marketing initiatives saw the average number of active customers per month rise by 12% to 1.51 million.

The Hamburg-headquartered group was also able to improve the gross margin by 3.8 percentage points to 17.3%. This was driven by a price increase implemented in the previous year and a shift in product mix.

The simultaneous increase in billings and gross margin resulted in a significant 34% rise in lottery business revenue to €91 million.

Zeal’s iGaming segment also continued its development in the first half of the year. Its B2C games portfolio expanded to more than 480 titles and increased revenue in segment by 49% year-on-year to €6.7 million.

Zeal H1 reaped the benefits of expenditure increase

While Zeal sanctioned an increase in expenses across the board, this business decision proved fruitful. Its strategy of “invest[ing] heavily in sustained growth” saw it bring in 499,000 new customers during the period.

Andrea Behrendt, Zeal’s chief finance officer, said: “Our half-year results are a true team success – especially given that the jackpot situation was rather weak compared to the previous year. Challenging market conditions particularly underscore our operational excellence. The significant increases in revenue and EBITDA were driven by further expansion of our customer base and profitability.”

Through efficiency gains and the scalability of its business model, Zeal was able to increase EBITDA disproportionately to revenue – by 76% to €35.4 million. EBIT nearly doubled year-on-year, reaching €31.1 million.

Indirect operating costs increased by 20% to €10.4 million, driven by external consulting services, freelance personnel and software expenses. The ongoing development of the product mix led to an increase in direct operating costs by 14% to €9.8 million.

Marketing expenditure increased by 14% to €29.1 million, with acquisition costs per new customer up by 41% to €46.93. Meanwhile, other operating expenses rose by 15% to €49.4 million.

Helmut Becker, Zeal’s outgoing chief executive, said: “We once again achieved strong results in the first half of 2025. Zeal’s continued growth path proves that our business model is highly robust and scalable over the long term.

“We are in an excellent position to further expand our market leadership in a growing industry.”

Zeal’s boardroom reshuffle

The positive results come amid major personnel changes at Zeal. In the last three months, the group has announced the appointment of a new CEO and chair.

In July, Zeal announced that Stefan Tweraser will replace Becker as chief executive from 15 September. Becker, who has served as the operator’s CEO for almost 10 years, will step aside as CEO on 14 September but remain available as a consultant until early next year.

Becker is expected to move into investing and starting new projects outside of gaming once his tenure at Zeal ends.

New to the gambling sector, Tweraser was most recently CEO of German NewSpace start-up Rocket Factory Augsburg. He was also chief marketing officer of music streaming service Deezer and CEO of hospitality data business SnapShot.

In May, Zeal appointed Carola Gräfin von Schmettow, former CEO of HSBC Germany, as its new chairwoman to replace the outgoing Peter Steiner.

Gräfin von Schmettow was elected to the position at the Zeal annual general meeting. She has been a member of the company’s supervisory board since November 2024.

Intralot said the Maryland Lottery and Gaming Control Commission (MLGCC) has decided to reject the offer due to an alleged failure to meet the minimum required percentage of subcontracting to local subcontractors.

On 17 July, Intralot announced that MLGCC approved the recommendation to award a new Lottery Central Monitoring and Control System contract to its US subsidiary following a competitive bidding process. The contract was to cover the manufacture of counter terminals and self-service vending machines that sell tickets at 4,300 Maryland Lottery retailer points of sale. The vendor will also develop the software that runs the system’s sales and accounting functions, and provide numerous related services that are necessary to operate the Maryland Lottery.

The contract is to last 10 years, with a possible extension of a further five years. Intralot said the total estimated contract term price of its bid was $260,393,946.

In a statement on the contract being withdrawn, Intralot said: “This decision comes as a great surprise, especially considering that Intralot, Inc had allocated a significantly higher percentage of the project to local subcontractors than the minimum required. Moreover, the company had provided the Commission with very detailed clarifications, and the Commission was fully aware of the identity and role of these subcontractors.

“In fact, the Commission initially ruled that all participants in the bidding process complied with the requirements of the relevant RFP – something the Commission itself acknowledges.”

Intralot considering every legal remedy

Intralot said it reserves all its legal rights and intends to pursue every legal remedy available to protect the interests of its shareholders.

“The bid submitted by Intralot, Inc is technically sound and by far the most financially advantageous, significantly outperforming the second-best offer,” the group added. “Should it not be accepted, the State of Maryland stands to lose a substantial financial benefit.”

For the three months to 30 June, revenue at Brightstar reached $631 million, an increase of 3% from last year. It was the first quarter during which lottery was reported as a standalone business after the recent split.

In July, private equity company Apollo completed its $6.3 billion acquisition of IGT’s Gaming & Digital business and Everi Holdings. The two businesses are now being combined and will jointly operate under the IGT brand.

With this, the legacy IGT lottery business is now operating as a completely separate entity. Ahead of the split, the segment was renamed Brightstar, reflecting its “source of inspiration and innovation” for players worldwide.

While Brightstar and the existing Gaming & Digital business operated alongside each other in Q2, and indeed H1, results have been reported as standalone to reflect the now-completed split. The published results compared Q2 this year to the lottery business’ performance in the same period in 2024.

“With a singular focus on lottery and unmatched industry expertise, we are well positioned to create value for all stakeholders with our mission to elevate lotteries and inspire players around the world,” Brightstar CEO Vince Sadusky said.

How did Q2 go for Brightstar?

Taking a closer look at Q2, service activity accounted for $588 million of all revenue, level with last year. However, product sales revenue climbed 59% to $42 million, leading to the rise in group revenue for the quarter.

The US and Canada drew the most revenue at $293 million, although this was lower 4% year-on-year. Italy revenue increased 10% to $259 million, while revenue in the rest of the world was also up 9% to $79 million.

Incidentally, Brightstar was handed a boost in the middle of Q2 by securing an extension to its agreement to run the Italian lottery. The business saw off competition from other parties such as Novomatic, Allwyn and Flutter to win the tender, which runs through November 2034.

Counting costs: Brightstar eyes further savings

While the rise in revenue was good news for Brightstar, the provider still has work to do in terms of costs.

Total operating expenses were 13% higher for Q2 at $492 million, with costs up across both services and product sales. In addition, an increased foreign exchange loss resulted in non-operating costs jumping 187%.

However, part of the latter increase was down to the OPtiMa 3.0 cost-reduction programme, which is focused on optimising general and administrative and operating activities following transformational actions in recent years. Brightstar said this has now been expanded to $50 million to “right-size” the business following the Gaming & Digital sale.

Chief Financial Officer Max Chiara added: “We are investing in key initiatives to drive sustainable, long-term growth, while also delivering structural cost reductions to right-size the business.”

In the red for Q2

Ultimately, higher costs offset revenue growth in Q2 and led to a pre-tax loss of $10 million, compared to last year’s $127 million profit.

Brightstar noted $50 million worth of income tax costs, but it was able to draw $40 million in profit from discontinued operations. As such, net loss stood at $20 million, in contrast to an $85 million profit in Q2 of 2024.

However, when discounting $36 million in net profit from discontinued operations and $2 million from non-controlling interest, bottom line loss was higher. Total net loss attributable to Brightstar in Q2 was $58 million, compared to last year’s $42 million net profit.

In addition, adjusted EBITDA declined 5% year-on-year to $274 million.

Revenue drops during H1

As for the six-month period to 30 June, revenue hit $1.21 billion, down 4.7%. Brightstar put this down to higher US multi-state jackpot activity but noted a 1.2% uptick in global instant ticket and draw same-store sales.

Both operating and non-operating costs were higher in the first half, although the operator was able to remain in the black before tax. For the period, pre-tax profit was $46 million, which was 85% lower than last year but a plus nonetheless.

Tax payments totalled $97 million and discontinued operations profit $92 million, resulting in a net profit of $40 million, compared to $213 million in 2024. However, when taking off $67 million in net discontinued operations profit and $4 million from non-controlling assets, bottom-line net loss attributable to Brightstar was $31 million, in contrast to last year’s $123 million profit.

As for adjusted EBITDA, this amounted to $524 million, down 15% from the previous year.

Pickup will officially join the omnichannel lottery business on 24 November this year. His appointment is subject to certain regulatory approvals in relevant jurisdictions in Australia.

An experienced executive, Pickup has led Allwyn North America since March 2018. This included before it rebranded from Camelot Illinois after its acquisition by Allwyn in January 2023.

Prior to this, Pickup served as the chief executive of Lotto New Zealand between March 2012 and December 2017. This followed an earlier spell with the business between August 2003 and March 2008, during which he held several roles.

Aside from this, Pickup had spells with GTECH Interactive and IGT, as well as Ace Interactive.

“I am honoured by the appointment and excited to join the Lottery Corporation at such a pivotal time,” Pickup said. “The Australian lottery market has tremendous potential for innovation and growth.

“I look forward to working with the talented team at the Lottery Corporation to deliver value for shareholders while enhancing the lottery experience for millions of customers across Australia.”

Pickup replaces outgoing van der Merwe

The appointment comes after Sue van der Merwe, the company’s current CEO and managing director, announced her retirement in March. She will step down having led the business for more than three years.

As part of her exit plan, van der Merwe will continue in her role until Pickup joins, working with the board to help ensure a smooth transition.

Lottery Corporation Chairman Doug McTaggart paid tribute to the outgoing van der Merwe. He said: “She has had a long and successful career in lotteries which has spanned almost 35 years. This includes leading the Lottery Corporation over the past three years.

“Her deep experience and expertise have helped us become the leading operator of lottery and keno games in Australia and one of the best performing lottery businesses in the world.”

On the new appointment, McTaggart added: “Having held senior leadership roles in technology, product management and game management, Wayne brings a diverse skill set and understanding of high-performing lotteries businesses.

“He is a high-calibre appointment who takes over from Sue at an exciting time for the Lottery Corporation, its shareholders and its customers.”

Three years since Tabcorp demerger

The Lottery Corporation was born out of a demerger from Tabcorp, which completed in June 2022.

Tabcorp announced plans to spin off its Lotteries and Keno arm in July 2021 after a strategic review considered several structural and ownership options. The group eventually elected to retain its wagering arm and spin off the lotteries business.

This resulted in two separate companies being formed. First was the Lottery Corporation, comprising most of the former Tatts business, but without gaming services. The second was named New Tabcorp and includes the wagering and media arm alongside gaming services.

Changes to core gaming and retail systems have been planned since Allwyn took control of the lottery in February 2024. The upgrade formed part of its successful bid for the licence, which runs to January 2034.

Technology updates will take place 2-4 August, with National Lottery services to be offline from 11pm on 2 August to late morning of 4 August. This will apply to both retail and online systems.

Players will still be able to purchase physical scratchcards from retail stores but cannot claim any prizes until after the updates complete.

What will the National Lottery upgrade include?

More than 43,500 retail partners across the UK will be included in the upgrade, which includes launching new terminal software and moving onto a new platform. Various other back-end tech upgrades will also take place.

Allwyn will complete a huge data migration project to transfer tens of thousands of retailer records and millions of player transactions onto the new system.

There is no date set for the final testing of systems and to help retailers understand how to use them.

When services come back online, approximately 8,000 retailers will switch to the new Wave terminals. Other retailers will use new software on existing terminals, with the final Wave terminals expected to arrive in the coming months.

Allwyn said some legacy in-store terminals may experience delays after the upgrade and it will provide specialist support where required.

Allwyn ‘modernising’ the National Lottery

The project will be the largest technology upgrade since the National Lottery launched in 1994, Allwyn has said. Jenny Blogg, director of operations, said this project was part of the operator’s wider plan to modernise the lottery.

“These critical tech upgrades follow on from our continuous progress in modernising The National Lottery, which hasn’t had a major refresh since 2009,” Blogg said.

“This includes introducing a fresh new look in our 43,500 retail partners with new stands, dispensers and signage, as well as rolling out state-of-the-art lottery terminals and a new in-store network provided by Vodafone.

“While these significant updates will mean short-term disruption for players and our retail partners, they will allow us to deliver on our promise to bring new, exciting games to The National Lottery; a better player experience; and our commitment to double returns to good causes from £30m to £60m every week by the end of the 10-year licence.”

Will the upgrade be enough to avoid regulatory action?

Confirmation of the upgrade comes following reports of delays to the update process.

In May, The Times reported the Gambling Commission was weighing up taking regulatory action against Allwyn over its failure to deliver on certain promises made during its bid for the fourth National Lottery licence.

The commission was said to be concerned that Allwyn had not met certain contractual milestones since securing the licence. Areas of concern reportedly include delays to digital upgrades and reducing ticket prices for the main National Lottery draw from £2 to £1.

In response, Allwyn reiterated that it was committed to upgrading and modernising the system. It added that it plans to spend more than £350 million on improvements.

Launched on 23 June, the tender covers the exclusive right to produce, manage, operate and promote the Greek State Lotteries. The successful bidder would oversee the lottery for a period of at least 10 years.

Offerings and products included in the tender are the Instant State Lottery, State Housing Lottery, Popular Lottery, Special Social National Lottery, National Lottery and Extraordinary or Special Lottery drawn by the European Association of State Lotteries.

The deadline for expressions of interest was 23 July, with both Brightstar and OPAP lodging their interest. This was confirmed by GrowthFund, the national investment fund of Greece, which is overseeing the tender.

GrowthFund will evaluate the two expressions of interest. Those that meet pre-qualification criteria will be invited to participate in Phase B of the process, including the submission of binding offers.

Brightstar vs OPAP: who might have the edge?

Hellenic Lotteries, a subsidiary of OPAP, currently holds the exclusive rights to the Greek State Lotteries. GrowthFund will take this into consideration when analysing the offers, when they arrive in Phase B.

Lottery operations formed the primary source of revenue for OPAP in Q1 of 2025. Revenue from lottery topped €206.8 million ($243.1 million), up 5.5% year-on-year. Of this, 94.2% came from retail operations.

Overall revenue at OPAP was also up 8.2% to €595.0 million. The group’s iGaming business saw the most growth, with revenue rising 19.8% year-on-year to €84.9 million. A further €190.0 million came from sports betting, €87.8 million video lottery terminals and instant and passives €25.6 million.

As for Brightstar, the name change did not come into effect until after Q1. Group revenue at the wider IGT business in the quarter hit €583 million, down 10% year-on-year following declines across three of its four core operating segments.

Instant ticket and draw-based revenue dropped 3% to $500.0 million. IGT also noted a 46% drop in US multi-state jackpot wager-based revenue. Other revenue also declined by 28% to $89 million, although up-front licence fee amortisation improved slightly year-on-year.

In total, service revenue fell 10% to $557 million, with product sales revenue down 38% to $26 million.

Alexander Pechtold exits as chair of Nederlandse Loterij

Nederlandse Loterij has announced the planned departure of Chairman Alexander Pechtold after more than four years in the role.

Pechtold was recently reappointed to a second four-year term as chairman. However, after he was appointed mayor of the municipality of Delft, Pechtold decided he will step down from the lottery.

He will remain in the role until 1 January 2026. Nederlandse Loterij will now commence a search for a suitable successor.

“I leave behind an organisation that is ready for the future, with a clear positioning, an ambitious strategy, and enthusiastic and driven employees,” Pechtold said.

EveryMatrix extends US presence with Boyd

EveryMatrix has expanded its presence in the US by launching content in partnership with Boyd Interactive in New Jersey.

Boyd Interactive brands Resorts and Mohegan will have access to EveryMatrix’s library of exclusive titles from its in-house studios. Titles from Fantasma Games and Armadillo Studios will be made available via integration with SlotMatrix.

The SlotMatrix game aggregation platform features more than 37,000 games from over 350 studios.

EveryMatrix entered the US in February this year by partnering with betPARX, also in New Jersey. It has also rolled out several games in North America this year such as Glorious Diamonds.

Kambi names Lenoble as Latin America sales head

Kambi Group has appointed Mateo Lenoble as head of sales in Latin America.

An experienced professional, Lenoble joins Kambi after 10 years at Sportradar. He had roles there as director of sales and most recently vice president of account management.

Kambi said the new hire reinforces its commitment to expanding its footprint across Latin America. The provider offers a range of sports betting products and services in the region.

“The region is full of opportunity,” Lenoble said. “Kambi’s reputation for product excellence, flexibility and regulatory expertise positions us perfectly for success.”

Eddy takes chief revenue role at Yolo Group

Another new appointment is Stephanie Eddy, who has joined Yolo Group as chief revenue officer.

Eddy will oversee commercial performance across key regions and strategic channels within the Yolo Entertainment division.

She joins Yolo after more than 11 years with Betway. Eddy was most recently commercial development director after serving in various other positions during her time with the business.

“Steph is a proven leader with the commercial instincts and strategic vision that align perfectly with our ambitions,” Yolo Group CEO Matthew D’Emanuele said. “We are thrilled to welcome her to our leadership team.”

Stake.com scores partnership with football star Evra

Stake.com has signed former professional footballer Patrice Evra as a new global ambassador.

Evra will work with Stake.com on sports promotions and offer betting tips to customers. He will also take part in various VIP experiences run by the operator.

Capped 81 times by France, Evra played for several major clubs during his career. He is best known for his time with English Premier League side Manchester United, for whom he played between 2006 and 2014.

“With five Premier League titles, three League Cups and the 2008 UEFA Champions League wins under his belt, we’re beyond excited to have this champion as part of the Stake family,” Stake.com said.

Tonje Sagstuen resigned as Norsk Tipping CEO on 30 June after 47,000 players were listed as winners due to a major technical error in the currency conversion system. Approximately 30,000 of these players received an SMS or push notification about the wrong prize.

Lotteritilsynet has ruled this was a violation of the country’s Gambling Act and it is conducting a full review of Norsk Tipping’s largest lottery games as a result of “several serious errors” in the last year.

The regulator will review its Lotto, Eurojackpot and Vikinglotto games and consider the entire process for each of the products, from the submission deadline set for players, to the payment of winnings.

Norsk Tipping violates players’ trust

Lotteritilsynet suggested the operator had violated the trust of its players. “People should be able to trust their games. The fact that several thousand players receive a notice of excessive winnings is clearly harmful to trust,” it noted in Thursday’s update.

It said many players had contacted the regulator about the error, but it said these complaints or questions should be directed to Norsk Tipping.

Norsk Tipping said it was “not surprised” by the ruling and Vegar Strand, acting CEO for Norsk Tipping, added the company also believed it had made a very serious error.

The operator has initiated its own review proceedings to investigate the error. “It is not unexpected that the Norwegian Lottery Authority wants to conduct its own inspection of our lottery games, which they have notified us of today. We look forward to receiving this inspection and see it as an important step in restoring trust in the company,” Strand said in a statement responding to Lotteritilsynet’s decision.

“We have initiated thorough reviews with external expertise of the error situations we have had. It is not unexpected that the Norwegian Lottery Authority wants to conduct its own inspection of our lottery games, which they have notified us of today. We look forward to receiving this inspection and see it as an important step in restoring trust in the company,” Strand added.

Norsk Tipping has a ‘fundamental problem’ in its system

Norsk Tipping has been pulled up for a number of errors in recent months. In 2024, a player was mistakenly paid NOK 25 million ($2.47 million) from the casino game KongKasino, for which Norsk Tipping was fined NOK 4.5 million.

An even bigger fine of NOK 36 million was handed out in March 2025, when a bug was found to have prevented self-excluded players from blocking themselves out of their accounts.

A third fine was issued to Norsk Tipping in April as a result of errors in its Eurojackpot extra draws and the Lotto super draws, which gave players in cooperatives, gaming clubs and cooperative banks a greater chance of winning than they should have. Those errors affected millions of players and, on that occasion, the fine was up to NOK 45 million.

Anya Therese, senior advisor at Lotteritilsynet, said these errors were “serious” and showed several examples of Norsk Tipping not having discovered them before the consequences were major.

“These cases show a fundamental problem in Norsk Tipping’s systems and controls,” she said.

The agreement, announced late on Monday, will involve Intralot acquiring Bally’s International Interactive arm to create a global iGaming and lottery leader with €1.1 billion in revenues. The deal also bolsters Bally’s cash reserves as it seeks to fund its land-based casino developments in the US and Australia.

Following the transaction, which is slated to complete before the end of the year, Bally’s chief executive Robeson Reeves will replace Nikolaos Nikolakopoulos as Intralot CEO. Nikolakopoulos will lead the lottery division, while Intralot chairman Sokratis Kokkalis and Bally’s chairman Soohyung Kim will remain on the board.

Post-transaction, Intralot is expected to be a leading digital gaming operator and technology provider for lottery products with a footprint in some of the most attractive markets in Europe and North America. The businesses said their combined technology capabilities will allow the expanded Intralot to pursue new opportunities in gaming and lottery markets globally.

Meanwhile, Bally’s and its affiliates’ ownership in Intralot has increased from 26.86% to 33.34%. Following this development, a mandatory tender offer obligation for the remaining outstanding shares of Intralot has been triggered.

Reeves said: “This transaction marks a transformative moment for Bally’s as we unite our outstanding gaming and data technology with Intralot’s exceptional expertise in lottery. Together, we are creating a unique proposition that will pave the way for a new era of innovation and growth across the entire gaming spectrum.”

How the deal benefits Intralot and Bally’s

Intralot and Bally’s said the deal creates a global iGaming and Lottery leader with enhanced diversification and scale and a B2B/B2C product offering that is expected to unlock significant cross-selling opportunities. Other highlights include 38% EBITDA margin pre-synergies, as well as platform synergies.

Revenue opportunities include expansion into new B2C markets, envisaged entry into high-potential charity lottery segments in the UK and US, and cross-sell opportunities across the overall B2B and B2C customer base.

Commenting on the deal, Nikolakopoulos said that Intralot is taking “a major step forward in becoming a global technology and services leader in the Lottery and Gaming sectors”.

He added: “Bally’s brings unparalleled digital capabilities, technological and operational, giving us a unique advantage in helping State Lotteries enhance player experiences and maximise returns for good causes.”

The Intralot deal is the latest in what has been a busy period for Bally’s. In February, it completed its $4.6 billion acquisition by Standard General after it was approved by shareholders in July. Under the deal, Bally’s combined with regional casino operator Queen Casino & Entertainment (QC&E), which is majority owned by Standard General. It was this deal that brought together Bally’s and Intralot as QC&E owned 28% of the latter.

In April, Bally’s and billionaire Bruce Mathieson agreed a deal to acquire embattled Australian operator Star Entertainment for $300 million. Last year, Bally’s revealed that it had agreed to sell its Asian interactive business.

In Q1, Bally’s reported cash reserves of $209 million versus total debt of nearly $3.5 billion. The company is heavily leveraged as it builds casino projects in Chicago and Las Vegas and continues to lobby for a New York casino licence at its golf course in the Bronx.

How the acquisition will be funded

The Bally’s-Intralot cash-and-shares transaction will include a combination of €1.53 billion in cash paid by Intralot and €1.136 billion in newly issued shares delivered to Bally’s.

Intralot has obtained commitments for up to €1.6 billion in debt financing and plans a €400 million equity offering. Bally’s expects to repay secured debt with the proceeds.

Meanwhile, Bally’s has secured commitments for a $500 million secured debt facility which, together with the cash proceeds from the transaction, will be used to repay secured debt. In addition, Bally’s has secured commitments for a $100 million delayed draw secured debt facility, which may be used following the consummation of the transaction for general corporate purposes, including the development of Bally’s Chicago.

But in a Q3 gambling activity update from the Gambling Commission, player data suggested these prize draw offerings could be cannibalising traditional lotteries in the UK. “We’ve seen the growth of large-scale prize draws and that growth has been very significant,” Gambling Commission CEO Andrew Rhodes told attendees of the Betting and Gaming Council’s AGM on 27 February.  

He noted that prize draw products are experiencing a participation level that is much higher than that of other gambling products, or products regulated as gambling. “It’s getting close to being on a par with betting in terms of participation, also in terms of the average spending,” Rhodes said. 

Should prize draws be regulated alongside lottery? 

The UK Lotteries Council, a body that represents the sector, has called for a re-evaluation of the currently largely unregulated prize draw vertical. It should fall under traditional lottery regulations, it says. “If there is a shift from society lotteries to unregulated prize draws, returns to good causes will inevitably decline.  

Million-pound prize draws represent the thin end of the wedge in lottery-based civil society fundraising,” Lotteries Council chair Tony Vick wrote in a March report on prize draws and charity lotteries. But James Miéville, executive director at Raffle House, a prize draw operator in the UK, says he does not believe the product is in competition with the National Lottery, as it is instead an entirely new demographic of players.  

“We believe companies such as ours have tapped into a previously unmet demand and that this has attracted new players rather than pulling players away from other products,” says Miéville. “Our player data suggests the audience for house prize draws is more diverse than that of lotteries.”  

‘Free to enter’

Today, prize draws offer a “free to enter” option, whereby players can send in an entry to a draw, only paying to send the entry. This means the vertical is exempt from falling under lottery rules as per the Lotteries Act. Also writing in the Lotteries Council report, Member of Parliament for Aldridge-Brownhills Wendy Morton warned these new games had become “indistinguishable” from charity lotteries, which are required to meet strict standards, like not offering large prizes or jackpots and paying back a certain percentage of earnings to charity.

The case against prize draws, which are typically offering multimillion-pound prizes to players, is clear: they should be properly regulated, so the traditional lottery sector claims. 

In a speech to parliament last week, Gambling Minister Baroness Twycross said the vertical would not be placed under the Lottery Act regulations but rather a voluntary code which will seek to unify the vertical’s approach across the sector. 

Richard Williams, partner at Keystone Law, told iGB he expects a monitoring period of at least a year for prize draws, to assess whether any measures are successful. He said the code was largely an attempt to avoid introducing legislation. 

Healthy competition 

Others in the lottery sector support the innovation behind the new vertical; after all, it is clearly appealing to a new demographic that more traditional lotteries have ignored for decades. Could this feud be exactly what lotteries need to reinvigorate the industry? 

“I get the impression that some players in the industry are trying to fight the competition through politics here, and I would say that’s not wise,” Helmut Becker, longstanding CEO for German lottery provider Zeal Network, tells iGB.

“They should focus on innovation in their own business. I do think generally speaking there’s an opportunity for more innovation in our industry.” Becker laments the slow uptake of online lottery offerings. “The internet penetration in the lottery industry is relatively low, particularly in Germany where we are at 25%,” he says.  

He goes on to compare the sector to other entertainment offerings like concerts, or even transportation services that offer tickets online for trains and buses. “Those industries have much higher rates of digital penetration. I see tremendous growth potential in the lottery industry converting from offline to online. There’s this continuous optimisation in ecommerce best practice [that we could learn from].”  

We’ve seen this response before 

Zeal rode the wave of lottery betting (or lottery brokerage) solutions as the novel opportunity arose in 1999.

Operators like Zeal and Lottoland offered players a chance to participate in mammoth jackpots, by betting on lottery draws around the world instead of just their national or state-run offering. In the beginning of this wave, operators were heavily scrutinised and many called for new regulations to clamp down on the spread of these types of offerings, similar to the fight against prize draws today.  

But Becker argues there is a need among younger and female demographics for new and novel solutions within lotteries. “There are new target groups, other target groups than the traditional lottery player, younger target groups, female target groups. And there are ways to address the needs of those target groups and that’s through product innovation. Creating new types of lotteries or new types of games like Dream House raffle, for example, unlocks another layer of growth [for operators],” he says. 

Zeal has both invested in and developed an in-house version of a prize draw offering but offered under a charity lottery licence, and Becker suggests it is this agility and commitment to innovation that has powered Zeal’s progressive growth in recent years. 

In its full-year 2024 results, Zeal posted a record group revenue of €188.2 million ($203 million), beating the previous year by 62.2%. It also saw bottom-line net profit rise 333.2% to €59.4 million. On this trajectory, Becker says the company has continuously optimised and grown its core business while making constant improvements in ecommerce, ensuring excellence in unit economics, efficiently allocating marketing spend and ultimately improving the customer lifetime value of its loyal customer base. There is clearly still demand for more traditional lottery betting offerings.  

Can it cross-sell? 

In the US, lottery courier services have exploded in the market. These offerings enable players to participate in draws operating in multiple states by buying tickets for different draws and enabling players to purchase them via the product. In February, DraftKings CEO Jason Robins talked up its 2024 acquisition of lottery betting app Jackpocket, insisting the product was already proving a valuable customer acquisition and cross-sell tool. 

 “Jackpocket has been great in terms of both cross-sell and, also, we have had really strong customer acquisition during its last $1 billion jackpot run. I do think that there’s room to invest more there,” Robins told analysts in its Q1 earnings call.  

“For us, it’s probably more effective in states where there’s legal sports betting and iGaming because the LTVs (lifetime value) in the immediate term are going to be higher because we can cross-sell right away.” 

He compared the product to DFS in terms of player acquisition opportunity, and of course it was DFS that helped skyrocket the likes of DraftKings and FanDuel to the top positions for both betting and iGaming in the States. But Becker says he is less certain of lottery’s cross-sell capabilities.  

“The jury is out on how big the synergies between different forms of gambling are, and whether it is possible to capture them and how,” he comments. “I haven’t seen the data yet, so for me the case is not closed on the cross-sell opportunity between lottery players and other forms of gambling being as big as expected.” 

Lottery and iGaming

Nikolina Gabelica, head of lottery operations at EveryMatrix, supports Robins’ assertion that lottery games can be successful acquisition tools. “I worked for an operator previously, and it had a clear path to use lottery as an acquisition tool. It’s easier to acquire a player, but not to say it’s cheaper, with lottery games. And that’s including instant games and scratchcards. Yes, this is easier, less frequent and less aggressive play. But it was used for acquisition of the players,” she says. 

“Of course, not all lottery players would transition to sports betting or iGaming. But yes, that journey was a natural one [for players].” However she acknowledges that gamified lottery products offering unique bonuses or a novel element prompt longer gaming sessions and a higher chance for cross-sell capabilities. 

Lottery across the pond 

The US is operating a dynamic and nuanced lottery sector, but like other verticals it is fragmented and many states still have a state-run lottery monopoly in place. Therefore, regulations are hugely outdated and largely do not support new multistate courier operations like Jackpocket. The vertical came under fire in February when a group of investors won two multimillion-dollar jackpots in Texas, after mass purchasing of tickets in bulk, which effectively hacked the system. 

The scandal resulted in harsh criticism around the lottery courier offering, and Texas moved to ban these services in the state. According to 2024 data from the Office of Program Policy Analysis and Government Accountability, lottery betting was available in 19 US states last year. 

“I think the US lotteries are concerned about it because they are finding themselves competing directly with very mighty private companies that are active in sports betting and iGaming,” Becker explains. “But I honestly don’t know how the US market will play out. I think it will be two steps forward, one step back. I think it will be very heterogeneous and be different in each state.  

“Oftentimes there’s no clear regulation for online sales. The courier model evolved because there is demand and somebody is just filling the gap. I think the problem is that there’s no good regulation in place to foster the well-regulated sales of online lottery tickets to customers.” 

Robust regulation is crucial

Becker believes that, in order to maintain a thriving and innovative lottery sector, robust regulation is needed. And this is something that appears to be missing in the US. Germany, however, has robust lottery laws in place, he says. And having these laws in place has supported and encouraged the rise of new products and fresh innovations.  

He says the gambling regulator in Germany, the GGL, has determined clear boundaries for the lottery sector and this makes it easy for lottery brokerage operators like Zeal to adhere to the rules. “A well-regulated market fosters and incentivises good behaviour and growth. In the end, society benefits from that growth. I do think there’s an opportunity to strike a balance between a well-regulated and open market that is open to private players like us.” 

Many European markets also still operate lottery monopolies while others, like the UK and Italy, issue a tender for their national lottery. This is either won by a single lottery provider or a consortium of providers.  

All change for lottery in the UK 

In February 2024, global lottery provider Allwyn won the UK’s National Lottery tender, after almost 20 years of Camelot operating the programme. In securing the fourth licence, Allwyn saw off competition from a number of heavy hitters, including Camelot. However, the operator, which counts a number of European lottery companies under its belt, has faced criticism for failing to deliver on promises made during its successful bid for the lottery.  

Areas of concern to the Gambling Commission are said to include delays to digital upgrades. Allwyn is also said to have pledged to reduce ticket prices for the main National Lottery draw from £2 to £1, but this is yet to take place. In a statement issued to iGB, Allwyn said it is still committed to upgrading and modernising the system, with a planned spend of more than £350 million ($467 million) on improvements.  

“Our investment will help restore the magic to The National Lottery,” Allwyn said. “But the shift from outdated systems is complex and requires robust testing. We will deliver essential upgrades over the coming year. We are working at pace to complete this transformation as soon as possible.” 

Can lottery keep up with prize draw innovation?

Allwyn shows it is harder to innovate in a legacy sector than some might believe. The outlook for lottery is positive. Becker believes there is much more to be achieved in the space, particularly in increasing the rate of digitisation. The demand for new lottery-style games will continue to grow as Gens Z and Alpha turn the appropriate age for playing these games. But national lotteries are certainly at risk of falling behind. 

“They’re setting a new standard for how play should feel,” Gabelica says of the “quick, easy experiences” of sweepstakes, crypto games and prize draws. “This is very difficult for lotteries to catch up [to]. And the risk is that if [these new games] change what players expect, and if the national lotteries don’t keep up, they will feel outdated, even if the prizes are much bigger,” she concludes.

The state-owned gambling monopoly has come under intense scrutiny after nearly 16,000 players received incorrect messages about their Eurojackpot winnings. A major technical error in the currency conversion system caused messages to show inflated payouts — some by as much as 10,000 times the actual prize.

The fallout led to the resignation of Tonje Sagstuen, Norsk Tipping’s CEO. However, the controversy continues to escalate.

Lottstift confirmed it has received a preliminary incident report from Norsk Tipping detailing the events following Friday’s Eurojackpot draw. The regulator will decide on next steps after its scheduled meeting with the operator on Tuesday.

“This is a serious matter, which is clearly harmful to Norsk Tipping,” said Terje Gilleshammer, communications director at Lottstift. “Our job is to assess whether what has happened is a violation of the Gambling Act.

“We are in the process of thoroughly reviewing [the report], and will have a meeting with Norsk Tipping [on Tuesday]. We will of course inform you when we have considered this matter. This is an error that is of great public interest, and which has affected many players.”

Anger over CEO’s big money payoff

The Eurojackpot glitch caused widespread public distress. Many Norwegians believed they had won life-changing prizes and made financial commitments — such as booking holidays or placing deposits on new homes — before discovering the truth. Sagstuen acknowledged these consequences in her resignation letter.

Adding fuel to the fire, Sagstuen reportedly received a severance package of NOK3 million (€252,000), awarded by Norsk Tipping’s board, chaired by Sylvia Brustad. The payout has sparked outrage among opposition politicians, including the Centre Party, Red Party, and Progress Party.

Silje Hjemdal of the Progress Party — which opposes the monopoly itself — condemned both the severance and the company’s leadership.

“NOK3 million in severance pay to the CEO after yet another scandal under her leadership is beyond all reason,” said Hjemdal.

“I expect that minister of culture Lubna Jaffery will also consider whether she has confidence in the chairwoman of the board Sylvia Brustad. I have serious questions about Brustad’s handling of the departure of the CEO, and she is also partly responsible for all the scandals that have hit the company in recent years.”

Norsk Tipping controversies

The criticism is compounded by past controversies at Norsk Tipping, including incidents involving underage gambling and failures in self-exclusion systems.

The Norwegian Industry Association for Online Gaming (NBO) argues that the justification for Norsk Tipping’s monopoly has collapsed. In a recent op-ed for Ostlendingen, NBO Secretary General Carl Fredrik Stenstrøm challenged the company’s ability to operate safely and with public trust.

“Norsk Tipping’s exclusive right to offer gambling in Norway rests on two conditions, both of which are enshrined in the Gambling Act… that the monopoly arrangement is by far the safest option for curbing gambling problems… that Norsk Tipping shall conduct gambling in an honest manner that is suitable to win the trust of the general public.

“Over the past six months, both of these conditions have been violated. Not in a trivial and grey-zone-like way, but with a bang. And time after time.”

This week: World Pool bets on Royal Ascot were up 10%, controversy continues to dog South Africa’s lottery licence award and Romania has changed its advertising rules.

World Pool up at Royal Ascot

World Pool bet types for Royal Ascot 2025 were up 10% from 2024, rising to HK$1.57 billion ($200 million) for the five days.

Including a record-high on Wednesday of HK$330.7m, the most bet on the second day of the meeting since the inaugural World Pool meeting at Royal Ascot in 2019, turnover was up year-on-year every day.

Turnover at the 2022 meeting remains the highest at HK$1.61 billion, approximately 2% higher than this year’s level. In 2025, punters from across the globe were able to access commingled pools on the event for the seventh consecutive season.

Sam Nati, head of commingling at the HKJC, said: “In terms of quality, quantity and competitiveness, the fields were fantastic all week. There was also some good international representation, both in the horses running and the jockeys taking part, so it was a good mix of key factors for both local and overseas punters.”

Tycoon defends SA lottery link

South African tycoon Moses Tembe has dismissed accusations that a consortium he headed was awarded the country’s next National Lottery licence contract due to political influence.

Concerns have been raised about Sizekhaya Holdings’ links to South African Deputy President Paul Mashatile. Bellamont Gaming, a company owned by Tembe and Mashatile’s wife’s sister, Khumo Bogatsu, has shares in Sizekhaya.

However, Tembe told Times Live that Bellamont has a minimal share of Sizekhaya stock.

Tembe added: “We have indicated previously that Sizekhaya [Holdings] won the right to operate the fourth national lottery licence because of the strength of our bid, the deep knowledge of gaming that we bring to the table, our pledge to propel the lottery to new heights by generating more money for the government, for good causes and for players.”

Romania bans celebs from gambling ads

Romania’s National Audiovisual Council (CNA) has banned celebrities from appearing in gambling promotions.

CNA members unanimously approved the ban during a public session on Thursday.

They amended the Audiovisual Regulatory Code to prohibit celebrity appearances in gambling ads on TV, radio and online platforms.

Romanian outlet PaginaDeMedia published the updated wording of the regulation. The new rule states: “It is prohibited to broadcast gambling ads featuring public, cultural, scientific, or sports personalities.”

Gambling ads previously featured celebrities such as footballers Florin Răducioiu and Ilie Dumitrescu and singers Antonia and Alex Velea.

Kaizen to sponsor CONMEBOL Copa América Femenina 2025

Kaizen Gaming has been named as official sponsor of the CONMEBOL Copa América Femenina 2025.

Hosted in Ecuador in July and August, the tournament will bring together South America’s 10 women’s football teams.

The sponsorship of CONMEBOL Copa América Femenina 2025 is part of Betano and CONMEBOL’s broader partnership, which started with the CONMEBOL Copa América 2024 and extends through 2028.

Alejandro Domínguez, president of CONMEBOL, said: “Having Betano’s support encourages us to continue raising the level of the tournament and to provide more opportunities for our athletes to shine on the field and keep leaving their mark both on and off the pitch.”

F1 and Allwyn launch community award

Formula 1 and lottery operator Allwyn have announced the launch of the F1 Allwyn Global Community Award.

The programme will spotlight community-focused initiatives across the world of Formula 1 to showcase their positive impact on society. As well as global recognition, winning initiatives will each receive a €100,000 donation from Allwyn to further transform communities around the world.

Winners must demonstrate a meaningful contribution to society away from the racetrack, which could include advancements in education, culture, well-being or sustainability. For each race, the local promoter will identify Formula 1-linked community initiatives run by teams, partners and media that have had an impact in their country.

Stefano Domenicali, president and chief executive of Formula 1, said: “We will give the local initiatives that go the extra mile for making their communities and make the world a better place the recognition and global platform they deserve.”

Tonje Sagstuen (pictured) quit her role on Saturday, after thousands of customers were given false expectations that they had won larger amounts of money. A human error caused the stated premium amount to be 10,000 times too high, directly affecting over 41,000 Norwegians. Around 16,000 of them received push notifications with the erroneous figure on their phones.

The monopoly has since issued a public apology and contacted players individually. Some players had already made plans for holidays, buying an apartment or renovating before they were made aware of the mistake.

Vegar Strand, who has been director of strategy, analysis and business development, has been appointed acting CEO to replace Sagstuen.

Sagstuen said in a statement: “As a manager, it has been my responsibility to handle the errors that have occurred, and it has been very gratifying to see how a united Norsk Tipping has responded to the challenges and worked day and night to solve them.”

Minister of culture takes aim at Norsk Tipping

Norsk Tipping said a calculation error occurred when converting from euro cents to Norwegian kroner. It said that the error was discovered after a short time.

The business is currently conducting a comprehensive review of its systems to ensure that similar errors do not occur again.

The minister of culture, the Norwegian Gambling Authority and individual customers have criticised the business for the high-profile error.

Norway’s minister of culture, Lubna Jaffery, said: “We take note of Tonje Sagstuen’s departure. As I have said, Norsk Tipping is completely dependent on having the trust of the people. The exclusive model depends on that. The ministry will continue to follow up with the board, such mistakes should not happen and we expect the board to work actively to improve control routines.”

Acting CEO issues apology

Acting CEO Strand said: “We have greatly disappointed our customers and take full responsibility for cleaning up. Such mistakes are serious for a company that is supposed to manage the trust of Norwegians.

“The work of rebuilding trust has the highest priority going forward.”

In the apology sent to customers, Strand expressed his understanding that customers are disappointed.

“On Friday evening, thousands of Norwegians were mistakenly told that they had won a large prize in Eurojackpot. This was an error that affected many and which we take very seriously.

“We deeply regret what has happened and, on behalf of us at Norsk Tipping, I would like to apologise to everyone who was affected by this. We are incredibly sorry to have disappointed so many. 

“Know that we are now working intensively to ensure that this type of error does not happen again.”

In a speech made in the House of Commons, Baroness Fiona Twycross, minister of state for the Department for Culture, Media and Sport, confirmed plans to unify the approach across the sector. Baroness Twycross said the success of the code will determine whether the government opts to take legislative action later down the line.

The UK’s Lotteries Council has previously made a case for stricter regulations for PDCs, which are not governed by the Lottery Act, but a voluntary code will not require PDCs operators to obtain a licence from the Gambling Commission.

What are PDCs?

PDCs are games where the outcome is decided by chance, with both paid and free entry routes for players to choose from. These games do not require a licence under the Gambling Act 2005, due to the option of a free entry route being offered.

An example of these types of games would be competitions run by TV shows, who can invite the audience to answer a general knowledge question without falling under the remit of the Gambling Commission. Among the prominent operators in this space is Omaze, which offers prizes such as luxury houses and cars.

Baroness Twycross said: “This government has made it clear that we want people who participate in prize draws to be confident that proportionate protections are in place.

“This code will help provide a uniform approach across the sector to strengthen player protections, increase transparency and improve accountability of prize draw operators. My department has worked closely with the sector over the past six months to start to develop this code.”

It is currently unclear what the exact terms of the code will be, or which operators will be signing up to it.

Could age verification become mandatory for PDC operators?

Richard Williams, Partner at Keystone Law, told iGaming Business: “While we are not sure what will be included in the voluntary code, the London Economics Report flags some areas that the code could focus on, as an alternative to legislation.”

Williams suggested the code could require prize draw operators to verify the age of participants and ramp up player protection measures. These could include self-exclusion schemes; safer gambling messaging and spending caps, as well as prohibiting the use of credit cards to buy draw tickets.

“It’s possible that there may also be a requirement to donate a minimum percentage of ticket sales to charity, or to clearly explain what percentage of tickets sales is donated to charity,” he added.

Prize draws a hot topic

Andrew Rhodes, CEO of the Gambling Commission, has previously suggested PDCs could be cannibalising traditional lotteries.

In a recent interview with iGaming Business, Helmut Becker, CEO of lottery brokerage Zeal Network, argued lottery operators should focus on innovation within their own products rather than PDCs.

Richard Williams expects a monitoring period of at least a year for prize draws, to assess whether any measures are successful. He said the code was largely an attempt to avoid introducing legislation.

“Introducing legislation to regulate commercial lotteries would be complex and as we have already seen, this is not a priority for the government,” Williams explained. “It’s likely that this can will just be kicked further down the road by the Labour party.

“If a few bad apples don’t improve their practices, this could lead to a major shake-up for the entire industry. The prize draw industry is highly competitive and many operators won’t want to incur additional costs, such as age verification, when their competitors have an unfair advantage by not complying with the code.”    

Government outlines prize draw concerns in market study

Baroness Twyness’ speech came after the UK Government published a data-driven market study on PDCs, claiming there is a “clear risk of gambling harm” from them.

According to the research, PDCs players are significantly more likely to experience gambling harm than the average bettor.

The study covered 22 PDCs operators and 764 PDCs players. A total of 12% of players were found to have gambled with negative consequences and a possible loss of control, according to the Problem Gambling Severity Index.

By comparison, 3% of the general population and 5% of all gamblers fall under the same category, based on data recorded in 2022. It should be noted though that it is not an equal comparison, as PDCs are a single bet type, with the 2022 data regarding all other bet types.

The report stressed that any potential intervention should be proportionate, noting it found no direct evidence of a causal relationship between PDC participation and harmful gambling. However, it did identify several areas where oversight of the PDC market needed improved.

Could PDCs fall into the Gambling Commission’s orbit?

The government noted in the report the potential option to bring PDCs under the oversight of the Gambling Commission. This would require operators to set a minimum age for participation and provide self-exclusion mechanisms, among other requirements.

An alternative option would be to assertively enforce existing consumer protection laws. The Advertising Standards Authority could provide closer scrutiny, having previously taken action against PDC operators.

The third recommendation made in the report was for the voluntary code, which the government said was supported by surveyed operators.

“I want to invest my time into a portfolio of entrepreneurial things, rather than one C-level job,” Becker said during a recent interview.

“Stuff that I build myself, or stuff that I invest in. I’m very much looking forward to even more degrees of freedom in my life going forward,”

Throughout his career, Becker has specialised in e-commerce. Prior to Zeal, he spent over five years at eBay in various director-level roles. He also worked for social network Xing in Germany.  

Becker’s career at Zeal started in 2011 as a member of the supervisory board. In June 2013 he took on the role of chief marketing officer, and subsequently as CEO in September 2015.  

During his tenure, the lottery operator ventured into new verticals, established an in-house games developer and invested in novel lottery games which Becker expects will help propel the sector forward, including prize draws.  

In its full-year 2024 results, Zeal posted record group revenue of €188.2 million ($203 million), beating the previous year by 62.2%. It also saw bottom-line net profit rise 333.2% to €59.4 million. 

“We’ve tried many things; we failed sometimes but fortunately we were successful more often. We’ve reinvented ourselves, changed business models, moved the company from London to Hamburg and acquired another listed company,” he says of the business’ trajectory.  

“I have had a steep learning curve in the last 12 years, which I’ve enjoyed tremendously. 

“But there comes a point where you ask yourself; ‘can I muster the energy I need to inject into the business and in the team to drive this forward, or do I need to do something different?’”  

In March he informed the Zeal board of directors that he would not renew his contract beyond 2026 and the process to source a replacement began. Becker says this process is still ongoing.  

Lottery’s growth potential bigger than expected 

Reflecting on his time in gaming, Becker says he was surprised by the growth and innovation potential of the lottery industry. “It was more than I expected when I looked at the industry from the outside before I joined,” he adds.  

“[Lottery] is a massive market. You’re not operating in a small niche, it’s a really broad B2C marketplace with large target groups and exciting brand building opportunities. I would say that there’s huge growth potential in lottery and we prove it every day with our numbers and with what we do.”  

Zeal CEO on protecting new lottery game types 

Becker has shown support for new and novel lottery games like prize draws, which many lottery stakeholders believe are stealing market share from traditional and charity draws.  

“I get the impression that some players in the industry are trying to fight the competition through politics here, and I would say that’s not wise. They should focus on innovation in their own business,” he previously told iGB.  

He has also called for markets to provide robust regulatory frameworks for lottery, particularly in the US.  

“A well-regulated market fosters and incentivises good behaviour and growth. In the end, society benefits from that growth. I do think there’s an opportunity to strike a balance between a well-regulated and open market that is open to private players like us,” he said.  

The newly named Brightstar will continue to provide the same service as the existing IGT business. IGT said the name reflects its “source of inspiration and innovation” for lottery players worldwide.

Currently, IGT is partnered with 90 lottery customers and their players across six continents. It works as a lottery operator, retail and digital systems and technology provider, instant ticket services provider and game creator.

IGT is switching focus to purely lottery, with the sale of its gaming and digital business soon to conclude. Private equity giant Apollo Global struck a deal last July, with this on track to complete in Q3 this year.

IGT prepping for lottery focus

Vince Sadusky, CEO of Brightstar, said that the rebrand fits in with this new approach.

“We have a nearly 50-year history of reliability, innovation and leadership in lottery, a bedrock from which we are launching Brightstar with a future-forward mindset of helping lottery customers around the world succeed in an environment of digital adoption, shifting player expectations and an increasing variety of gaming choices,” Sadusky said.

Brightstar Executive Chair Marco Sala said the new look and business focus will be better positioned to serve customers around the world. The company is the primary technology provider to 26 of the 46 lottery jurisdictions in the US and seven of the world’s largest lotteries.

“Brightstar will be well-positioned to focus on driving innovation and growing the potential of the lottery business responsibly for the entertainment of players, the success of our customers and the support of the good causes they fund in their communities,” Sala said.

The Progress Party has been calling for an end to the gambling monopoly in Norway since its 2021 election manifesto. With the next general election scheduled for 8 September, Hjemdal has reaffirmed her party’s plans to make significant changes to the current framework.

Speaking at a May conference held by Norway trade body Norsk Bransjeforening for Onlinespill, family and culture committee member Hjemdal pointed to fellow Nordic nations Finland, Sweden and Denmark as remote gambling frameworks to learn from.

However, she told the audience the party is not yet sure which model Norway would follow.

“I haven’t landed on a concrete model, but I think what’s happening in Denmark is very exciting.
And I’d gladly take a study trip there to learn more,” she said during the conference.

“We are one of very, very few countries left that have this [remote gambling] model,” Hjemdal said.

“We must regulate better, and the way the model is today, there are actually very large sums of money that are sent out of the country every year, without going back to Norwegian sports or culture.”

Norsk Tipping under pressure

Under current regulations in Norway, gambling is only legally provided by state monopolies Norsk Tipping and Norsk Ristroto, which offer online gambling, sports betting, horse racing, lottery and physical slots.

Norsk Tipping has faced a number of regulatory setbacks of late, including an investigation by the Norwegian Gambling Authority (Lotteritilsynet) after it received a tip-off that a minor had transferred funds to the operator.

Meanwhile in February, Lotteritilsynet announced Norsk Tipping was facing a fine of up to NOK36 million ($3.2 million) for preventing players from self-excluding.

In Hjemdal’s view, Norsk Tipping is failing to live up to its role as a monopoly organisation, again reaffirming the need for an open market.

“There’s a narrative that Norsk Tipping is the safest, the best, the most thoughtful and that it doesn’t make mistakes,” Hjemdal continued. “But they’ve been caught time and time and time again.

“Now, admittedly, they have to pay a lot for it. But fortunately, we also have journalists in the country’s major newspapers who really dare to address this. And I think that’s good, because we also need the media to seize these issues.”

Conservative Party support for an open market in Norway

As well as Hjemdal’s Progress Party, the Conservative Party is also in favour of ending Norway’s gambling monopoly.

It too called for the monopoly to be eliminated in its latest manifesto, launched in September last year.

This is the closest Norway has been to liberalising its remote gambling sector, NBO chief Carl Stenstrøm told iGB in September.

Based on the increased political support from both parties and the influence they could have following September’s general election, he believes the market could be opened by 2028.

Norway is the final country in Scandinavia to maintain a gambling monopoly and nearby Finland is currently in the process of liberalising its market, which also helped spark political interest in Norway for new regulation.

Revenue for the three months to 31 March amounted to €2.24 billion ($2.56 billion), Allwyn said in its preliminary results. This surpassed the €2.11 billion reported in the same period last year – during which Allwyn took control of the UK’s National Lottery.

On top of this, revenue from gaming activities, recorded as GGR, was 7% higher at €2.15 billion. In addition, net revenue increased 5% to €1.01 billion.

Analysing the results, Allwyn again picked out digital as a key driver of growth, continuing a trend seen in FY24. Online gross gaming revenue hiked 15% year-on-year, with this segment representing 39% of overall gross gaming revenue.

“I am very pleased to report a good start to 2025, with the continued successful execution of our growth strategies sustaining the positive momentum from our record performance in 2024,” Allwyn CEO Robert Chvatal said.

“Total revenue increased 6%. This reflects growth in the digital channel, in addition to further enhancements to our proposition, as we constantly seek to elevate the player experience.”

UK revenue up 6% at Allwyn

Looking at geographical performance, Allwyn picked out several markets in which it posted growth.

Having held the National Lottery licence for over one year, the UK is now Allwyn’s primary revenue source. In Q1, UK revenue increased 6% to €1.02 billion. Allwyn said this was helped by a strong showing in the EuroMillions draws, with the game having reached a record jackpot in March.

Allwyn said that it remains committed to its ongoing transformation plans with the National Lottery. This includes upgrading legacy technology infrastructure the group said has “long constrained new product development and innovation”.

Incidentally, reports emerged last month that the Gambling Commission could take action against Allwyn over delays with this planned transformation, which are meant to include dropping ticket prices to £1. Allwyn said these upgrades will go ahead, with a total planned spend of over £350 million.

Greece and Cyprus stand out in Q1

Elsewhere, Allwyn also reported growth across other markets in Europe. Stand-out results included Greece and Cyprus, where revenue was 8% higher at €616.9 million, with increases across both online and retail.

Revenue in Austria was also up 6% year-on-year at €423.6 million. According to Allwyn, this was driven by double-digit growth in numerical lotteries and a strong showing in iGaming. Together, these offset a weaker trajectory across video lottery terminals and casinos in  the country.

Looking to the Czech Republic, where Allwyn is headquartered, revenue edged up by 1% to €132.2 million, again helped by numerical lotteries. However, in Italy, revenue dipped 1% to €126.3 million.

Finally, revenue from the North America, Technology and Content segment was 2% higher at €60.4 million. This division comprises operations of the Allwyn LS Group and IWG.

Earnings increase despite restructure costs

Allwyn did not publish a full breakdown of finances for the quarter but did set out certain data for earnings during Q1.

Operating EBITDA was 1% lower year-on-year at €311.4 million. However, adjusted EBITDA increased by 1% to €362.3 million. This, Allwyn said, was despite additional costs related to changes to its corporate structure.

These changes saw Allwyn International redomiciled to Switzerland in October 2024. As a result, some costs previously incurred by parent company Allwyn AG but funded by Allwyn International are now incurred directly by Allwyn International.

The group added that its adjusted EBITDA margin remained strong at 35.9%, compared to 37.4% in 2024.

What next for Allwyn?

During his statement on Q1, Chvatal also made reference to other recent developments that will impact Allwyn moving forward.

These include the successful bid from the LottoItalia consortium to secure the Italian Lotto licence. News of this was confirmed last month, with IGT seeing off competition from both Novomatic and Flutter.

“We look forward to continuing to work together with our partners to deliver for players and all stakeholders, while also supporting responsible play,” Chvatal said.

In addition, after the end of Q1, Allwyn acquired a minority interest in Next Lotto, a licensed online reseller of draw-based games offered by state lotteries across Germany. This, Chvatal said, further expands the group’s geographic footprint.

“Overall, I am pleased with the start of the year and believe we are well-placed for the remainder of 2025,” Chvatal said. “As always, I look forward with excitement to what the future holds for Allwyn, as we continue to focus on delivering our strategy.”

Loterj’s capability to award sports betting tenders to its licensees predates the federal government’s current online gambling regulations, which came into force last year.

Its first sports betting tender was issued in July 2023, a year and a half before Brazil’s federal legal betting market launched in January 2025.

But, a month into the new market, Brazil’s Supreme Federal Court (STF) voted to uphold a preliminary injunction preventing Loterj from its licensees operating nationwide under pressure from the attorney general’s office.

The court insists Loterj licensees can only offer bets within the state of Rio de Janeiro. In its latest ruling, the STF demanded Loterj lottery and betting licensees install geolocation tracking to ensure they are only operating betting within the state.

Lopes Cançado describes the situation as “artificial and technically unsustainable”. He says Loterj licensees generate positive social change throughout Brazil through their funding of state departments.

“These revenues, generated by local lotteries … finance actions in health, education, sports and social assistance, especially for those who need them most. Interfering in this cycle of progress is penalising the vulnerable population.”

He reiterates the state lottery body is “fully committed to following its mission and ensuring that its licensed operators can operate throughout the national territory”.

Does the preliminary status of the injunction give Loterj hope?

Lopes Cançado stresses the STF’s injunction on Loterj’s activities is only preliminary.

He has faith the STF will ultimately rule in favour of Loterj, instead of making the current measures under the injunction permanent.

“The STF decision is, for now, only a preliminary injunction,” Lopes Cançado notes. “This restriction not only harms the competitiveness of the sector and the revenue of the states, but it also does not reflect the reality of the digital environment, which, by its very nature, knows no physical borders.

“I am confident that, when the case is analysed in more depth, the need for a more modern, fair and efficient regulatory model for all will prevail.”

Lopes Cançado sees Loterj as a “leading disruptor” in the Brazilian betting and lottery market and doesn’t feel the STF’s preliminary injunction and ongoing legal uncertainty will affect operators’ confidence in the state lottery.

“Loterj is not shaken. We remain firm, because we have what many still seek: credibility, legality and total transparency.

“We act with technical rigour, within the law and with absolute commitment to the public interest. And it is precisely for this reason that confidence in Loterj only grows – among partners, institutions and, mainly, among the population.”

Unfair competition from illegal operators a key concern

A common theme since Brazil launched its federal online market is the still thriving illegal market.

The Loterj president believes the impact of the black market is leading to reductions in state revenues that could finance public policies, while also discouraging investment in the licensed market and exposing players to the perils of illegal operators.

Lopes Cançado calls for a “coordinated approach” from the government to tackling the issue.

“Without a coordinated approach, the regulated market runs the risk of losing competitiveness in the face of an environment of informality that is growing out of control,” he says.

The future for Loterj

Loterj has taken strategic steps this year to bolster its land-based offering, by establishing an internal committee in April to conduct research and technical studies on video lottery terminals.

“We are focused on consolidating Loterj’s role as a responsible, efficient and transparent institution that contributes significantly to the social, cultural and economic development of the state of Rio de Janeiro,” Lopes Cançado concludes.

“Loterj’s long-term vision is to be a reference institution in the lottery sector, with a strong social commitment and efficient management, promoting collective well-being and the development of the state of Rio de Janeiro, while adapting to market transformations and facing global challenges with innovation and responsibility.”

“We’ve seen the growth of large-scale prize draws and that growth has been very significant,” Gambling Commission CEO Andrew Rhodes told attendees of the Betting and Gaming Council’s AGM on 27 February.   

But Helmut Becker, who has led Zeal for almost 10 years, says verticals like prize draws are meeting the demands of younger players. “I do think generally speaking there’s an opportunity for more innovation in our industry,” he notes. “There are ways to address the needs of those target groups and that’s through product innovation.” 

‘Still room for traditional lottery to grow‘, says Zeal CEO

Becker says there is also room for traditional lotteries to grow and innovate, particularly by improving online penetration for lottery ticket sales.  

“I see tremendous growth potential in the industry converting from offline to online. There’s continuous optimisation in e-commerce best practice,” says Becker.  

Zeal has both invested in and developed an in-house version of a prize draw offering, but offered under a charity lottery license. Becker suggests it is this agility and commitment to innovation that has powered Zeal’s progressive growth in recent years.   

In its full-year 2024 results, Zeal posted record group revenue of €188.2 million ($203 million), beating the previous year by 62.2%. It also saw bottom-line net profit rise 333.2% to €59.4 million.

Various lottery stakeholders, including the UK Lotteries Council, have called for stricter regulations for prize draws, as they currently don’t fall under the Lottery Act. This is because they offer a “free-to-enter” opportunity, which prevents them from facing strict charity funding rules and other regulations.   

Lottery regulation is not up to par 

Becker notes there is a disconnect between lottery innovations and regulation in a number of markets, particularly the US.  

The vertical came under fire in February when a group of investors won two multimillion-dollar jackpots in Texas, after mass purchasing tickets in bulk. 

The scandal resulted in harsh criticism around the lottery courier offering, and Texas moved to ban these services in the state.   

Becker is critical of the fragmented regulatory model in the US. “A well-regulated market fosters and incentivises good behaviour and growth. In the end, society benefits from that growth. I do think there’s an opportunity to strike a balance between a well-regulated and open market that is open to private players like us,” he says.  

“The US is complicated. Oftentimes there’s no clear regulation for online sales, or there it’s actually forbidden to sell online, or for the state lotteries it’s forbidden to sell online. So the messenger model evolved because there’s demand.”

However, Becker praises “robust” lottery regulations in Germany, which support lottery brokerage businesses like Zeal Network. The vertical emerged in 1999, enabling players a chance to purchase resold lottery tickets based on a new licensing framework.

In the beginning of this wave, operators were heavily scrutinised and many called for new regulations to clamp down on the spread of these types of offerings, similar to the fight against prize draws today. 

Group gross gaming revenue in the three months to 30 May reached €595.0 million ($677.6 million), OPAP said. This surpassed €549.7 million in Q1 of last year but fell 8.2% short of €647.8 million in Q4.

OPAP also reported that net revenue, GGR minus levies and duties calculated as a percentage of GGR, reached €406.4 million in Q1, a year-on-year increase of 7.9%.

All but one of OPAP’s core operating segments saw revenue increase during Q1. As was the case in the 2024 full year, the igaming division reported the most growth, with revenue up 19.8%. OPAP also reported a an increase in sports betting revenue, although lottery remains the group’s primary source of revenue.

“2025 has started well with a set of robust Q1 results,” OPAP CEO Jan Karas said. “Our solid organic growth, driven by continued momentum in online, makes us confident that we will deliver our outlook for 2025.

“Major drivers for this success have been sports betting and igaming. Tzoker benefited from favourable jackpot rollovers and the record-breaking jackpot in January. Additionally, retail digitalisation is rapidly advancing through the OPAP Store app, offering personalised experiences through our loyalty schemes.”

iGaming makes up almost 50% of online revenue in Q1

Breaking down the Q1 performance, igaming was again the star of the show, posting a 19.8% rise in revenue to €84.9 million. OPAP said this demonstrated strong growth on the back of higher player engagement levels and spending.

iGaming accounted for 48.1% of OPAP’s online revenue in Q1. This is ahead of sports betting on 45.0% and lottery at 6.9%.

On the subject of sports betting, revenue here was up 12.8% year-on-year to €190.0 million. Of this, €79.0 million came from online and €111.0 million retail, with OPAP benefitting from operator-friendly results in January and February.

Lottery revenue edged up 5.5% to €206.8 million, amid a strong Tzoker performance, helped by an early Q1 jackpot of €19.5 million, the largest in the game’s history. Retail operations accounted for 94.2% of all lottery revenue during the quarter.

Looking at OPAP’s other segments, video lottery terminal revenue increased 1.5% to €87.8 million. However, the instant and passives division was the only business unit to report a decline, with revenue down 7.9% to €25.6 million. This followed a similar trend seen in both Q4 last year and the 2024 full year.

Net profit rises to €126.4 million at OPAP

Turning to costs, expenses were higher across the board at OPAP during the quarter. Gross gaming revenue contribution and other levies and duties also increased year-on-year to €188.7 million.

However, revenue growth meant EBITDA climbed 8.8% to €207.1 million. After depreciation and amortisation, operating profit topped €173.1 million, up 10.3%.

Pre-tax profit stood 9.8% higher than last year at €171.0 million. OPAP paid €44.6 million in income tax, meaning net profit for the quarter reached €126.4 million, a rise of 9.2%.

“Moving forward, we continue to put customers at the centre of everything we do, focusing on delivering exciting experiences in both retail and online, and leveraging innovative technology to stay ahead of the game,” Karas said.

“At the same time, utilising the fact that OPAP is part of Allwyn we will continue offering unique experiences to our customers. Overall, the Q1 performance places us well to achieve our growth and profitability goals, generating value for our shareholders and fulfilling our sustainability and social responsibility priorities.”

For the three months to 31 March 2025, revenue at the Athens-headquartered gaming technology group reached €94.4 million ($107.1m/£79.5m). This was up 10.9% compared to the same period in 2024. Intralot also saw gross gaming revenue (GGR) grow by 8.3% to €88.5 million.

Lottery games remained the largest moneymaker for Intralot, drawing 55.2% of all revenue during Q1. This was up slightly on the 54.8% share during the 2024 financial year. Sports betting generated 25.0% of total revenue in Q1, video lottery terminals 11.6% and IT products and services 8.2%.

Within revenue per activity line, Intralot’s B2B segment accounted for 88.9% of the total figure. This was slightly down on the 90.2% of FY2024.

Argentina trading conditions continue to improve

Intralot’s best performing business unit remains Technology by some distance, accounting for €61.4 million and 65% of the total. However, this was down from 71% during Q1 2024, with takings up by just €1.0 million. The segment was aided by strong performance in Argentina, upward sales trajectory in Croatia and organic growth in Oceania. However, performance in the US has been impacted by lower activity of multi-state jackpots, Intralot said.

The group’s B2C Licensed Operations, located in Argentina, remains the smallest segment, however it grew by 64.8% year-on-year and now accounts for €10.5 million and 11% of the total. In Q1 2024 it made up just 7% of the total. Intralot said improving macroeconomic conditions in Argentina are supporting market growth. In local currency terms, the results for the current period posted an increase of 106.1% compared to the same period last year.

Game Management was up 22.8% to €22.5 million, now accounting for 24% of the total. The increase was triggered by 61% growth of online sports betting in Turkey, despite the 14.8% devaluation of the Turkish lira.

Intralot’s EBITDA flat during the quarter

Total operating expenses increased slightly by €1.0m (up 3.7%), which Intralot said was necessary to support topline growth. Other operating income came to €7.6m, an increase of 14.2% year-on-year.

EBITDA was almost flat compared to the same period last year, growing by 0.3% to €30.2 million. Intralot said the steady performance “demonstrate[d] the continued resilience of the group’s operations.” While, it added, “robust performance from key markets contributed positively to the overall results”.

Operating cash-flow improved by €21.8m, reaching €48.9m compared to €27.1m in Q1 2024. This increase, Intralot said, was mainly driven by the collection of prior-year receivables.

Chairman Sokratis P Kokkalis welcomed the results and focused on post-period gains. One of those was Intralot recently signing a new six-year agreement with the Department of Internal Affairs (DIA) of New Zealand, he said, which continues a long-term supply deal for an electronic monitoring system (EMS) solution for gaming machines. Meanwhile, in April, the group extended its gaming systems contract with the New Hampshire Lottery Commission for an additional seven years.

“Intralot’s 1Q2025 results are characterised by revenue growth and free cash flow generation combined with stable profitability and continuing debt reduction, resulting in net debt leverage ratio of 2.4x,” Kokkalis explained.

“On the commercial front the company renewed key contracts in New Zealand through 2032 and New Hampshire through 2033, with the latter becoming the first US state to install our new central lottery platform Lotos X with its advanced functionalities.”

No Australian acquisition on the horizon for Intralot

Earlier this month, Intralot rejected speculation it has held talks over a possible acquisition in Australia. Reports in the country suggested it is weighing up a move for Max Gaming, the gaming monitoring arm of Tabcorp.

According to an article in The Australian, Intralot made an initial approach to Tabcorp over a potential purchase. The same article said Max Gaming could be worth up to AU$610 million (€348 million/US$394 million).

Responding to the reports, Intralot said in a statement that no such talks have taken place. “Intralot clarifies that no binding agreement of this kind exists,” it said. “Currently, Intralot is not conducting any negotiations relating to any acquisition in Australia.”

Trade and Industry Minister Parks Tau named Siyakhaya Holdings as the new operator on Wednesday 28 May. The licence covers the National Lottery and Sports Pools. The announcement arrived just days before the current licence, held by Ithuba Holdings, expires on 1 June.

Eight companies competed for the R180 billion ($10.0bn/€8.9bn/£7.5bn) contract.

Litigation has already commenced over this fourth National Lottery and Sports Pools licence award. Critics have also questioned Siyakhaya’s links to businessman Sandile Zungu, a prominent member of the governing African National Congress (ANC).

Gauteng-based Sizekhaya is led by a consortium that includes tycoon Moses Tembe and Zungu. Sizekhaya is part-owned by betting company, Goldrush Holdings. 

Court to decide on temporary South Africa National Lottery licence

The immediate concern is the state of lottery operations from 1 June, when Ithuba’s licence expires.

Minister Tau tried to issue a one-year temporary licence. However, Wina Njalo, one of the unsuccessful bidders, challenged this in court. The Gauteng High Court ruled the temporary licence period could not exceed five months.

Ithuba is considered the only business that can operate the South Africa National Lottery at such short notice. However, the group has already said that a licence period restricted to just five months would be financially unfeasible.

The DTIC and the National Lotteries Commission (NLC) plan to contest the ruling in court today, Thursday 29 May. They fear a gap in operations until Siyakhaya can begin.

NLC chairperson Barney Pityana warned of serious consequences in an affidavit. “If the court does not come to its assistance and extend the suspension period, there will be no lottery operations for at least nine months, from 1 June 2025,” he wrote.

He added that the suspension could cost R1.8 billion in good cause funding.

In the initial hearing, Judge Sulet Potterill ruled that the temporary licence favoured Ithuba and was therefore unconstitutional.

Wina Njalo’s complaint included the minister’s failure to explain delays. The judge agreed. She said the minister had not fulfilled his constitutional duty to provide reasons.

Tau responded that he intended to announce the new provider by 28 May.

Who are Sizekhaya Holdings?

Sizekhaya says it is setting up its structures and putting in place the necessary infrastructure after its confirmation.

It explained that a variety of shareholders and a management team with business, gaming, and operational experience form its consortium. JSE-listed Goldrush owns 50% of Sizekhaya, while Bellamont Gaming and Zungu hold additional shares.

Sizekhaya also confirmed that it will use Chinese supplier Genlot as its technology partner.

Tembe said: “South Africa has hit the jackpot with Sizekhaya. Our vast experience in gaming in the country along with the brains trust we have assembled driven by the collective vision of creating a more enhanced national lottery for good causes, will grow the lottery so more good causes benefit.

“Our choice of technical partner was deliberate as well as we were determined to minimise the amount of foreign exchange that leaves the country.”

Ithuba and political rivals oppose decision

Ithuba, which has run the National Lottery since 2015, may take legal action following the decision.

“We are expectably deeply disappointed by the recent decision made by the Minister of DTIC and the NLC. We believe that this decision undermines the principles of localisation and inclusive economic growth set out in the Request for Proposal,” Ithuba said in a statement.

“Our game portfolio is locally developed, our operational model prioritises economic inclusion, and our reach extends across urban and rural communities, ensuring accessibility for all South Africans from day one.”

The decision disregards the efforts to build a homegrown lottery ecosystem that supports small businesses and job creation and channels maximum revenue to good causes, Ithuba added.

The ANC’s political rivals have also slammed the decision, alleging cronyism.

The Economic Freedom Fighters (EFF) said in a statement: “Instead of ensuring fairness, transparency and compliance with the Lotteries Act, [Minister Tau] has compromised a public asset, by awarding a contract worth over R180 billion over the next eight years to benefit the ANC’s cronies in a clear case of state capture.”

Minister defends process

Trade and Industry Minister Tau responded to the widespread criticism in a statement that announced Siyakhaya as the successful bid.

“It is most unfortunate that this matter has already become the subject of litigation and a judgment of the High Court,” Tau said.

“I am seeking legal advice with a view to appealing against the judgment’s findings and orders, and I reserve all my rights concerning this judgment. With due respect to the Honourable High Court, my announcement is the result of my undertaking made to the bidders and the Court before the hearing of the application.

“I look forward to the growth of the lottery and the sports pools under the stewardship of Sizekhaya and to a mutually beneficial and healthy working relationship between the DTIC, the NLC and Sizekhaya. I also look forward to increased contributions to the many needy beneficiaries of the National Lottery Distribution Trust Fund.”

In a letter to Norsk Tipping, dated 15 May, the Norwegian Gambling Authority has asked for further details on an incident in which a minor had placed a large deposit in the betting service.

The letter follows a tip-off from a bank to the Norwegian Gambling Authority that it had recorded a large amount of money being transferred from a minor to Norsk Tipping. Gamblers must be aged 18 or over to legally place bets on Norsk Tipping’s platform.

The Norwegian Gambling Authority met with Norsk Tipping on 13 May. The authority stated that it currently does not believe the underage user had founded a customer relationship with Norsk Tipping.

“The information so far indicates that there are customers who lend or share their customer account with persons under the age of 18 and that it is not the case that minors have been able to establish customer relationships with Norsk Tipping,” the Norwegian Lottery Authority stated in a release.

Sharing accounts with a minor is a clear breach of Norsk Tipping’s terms and conditions.

However, the watchdog states the violation in this case could extend to the Gambling Act, associated regulations and Norway’s Money Laundering Act.

“It is too early to determine what has happened. We will investigate the matter further and have asked Norsk Tipping for more information,” Norwegian Gambling Authority Department Director Tore Bell said.

Norsk Tipping requested to submit further details

The Norwegian Gambling Authority has asked Norsk Tipping to answer eight questions in order to gather information on the underage funds transfer and if it has wider implications.

These include when the payment solutions for Vipps and Apple Pay were introduced, as well as what the risk assessments associated with both payment systems are.

Pointedly, it has asked Norsk Tipping how it assesses Vipps and Apple Pay against section seven of the Gambling Act. This requires the operator to have appropriate control measures in place that reveal abuse of customer relationships.

It has asked the same about Vipps and Apple Pay in relation to the Money Laundering Act and if Norsk Tipping knows if the funds transferred belonged to the registered customer.

The Norwegian Lottery Authority noted that, since 1 January 2024, Norsk Tipping has received 21 tips on cases that were similar to the one the bank raised with the Norwegian Gambling Authority.

It has asked Norsk Tipping if it considered contacting the authority about these 21 tip-offs and if it has followed up on each case.

Norsk Tipping has been given two weeks to respond to the Norwegian Gambling Authority’s request for further information.

Last year, the operator was threatened with a fine of up to NOK36 million ($3.2 million) for preventing players from self-excluding from their gambling accounts.

According to Norsk Tipping, the error arose during an update of its iOS software on 16 January. This update subsequently prevented the self-exclusion tool on its native app from working as it should.

The General Commercial Gaming Regulatory Authority (GCGRA) approved the two international gaming technology groups to offer their services to the Middle East state’s nascent lottery market. This takes the total number of suppliers licensed by the authority to nine.

Previously approved vendors include slot machine manufacturers and payment providers, among them IGT Global Services, Novomatic and Aristocrat Technologies Europe.

The GCGRA was established by the UAE in 2023 to establish the market’s regulatory framework for gambling, national lottery and commercial gaming. In June last year it awarded the nation’s only lottery licence to The Game LLC. Later in 2024, the GCGRA awarded Wynn Resorts the UAE’s first commercial land-based casino gaming licence.

Scientific Games piqued by UAE opportunity

Already present in 50 nations, Scientific Games welcomed the opportunity to offer its lottery products and services in the UAE market.

“We are extremely pleased that Scientific Games has been authorised as a lottery supplier in the UAE with this licence,” said Michael Conforti, president of international business for Scientific Games.

“We look forward to putting our more than 50 years of expertise to work in the UAE to offer high-performing products that will responsibly help drive revenue for lottery programs supporting local communities and projects of national importance.”

Random State hails ‘major milestone’

Sweden-headquartered Random State, which offers real-money eInstant games and bespoke digital-lottery products, sees strong opportunities in the UAE.

“The UAE has the potential to become one of the world’s most dynamic digital-lottery markets,” said Adam Fonsica, co-founder and chief operating officer at Random State. “Earning the GCGRA’s trust is a major milestone for us. We’re eager to introduce our gamified eInstants and custom draw games to local players later this year.”

UAE Lottery launch unclear

Licensee The Game LLC operates as the UAE Lottery, offering a range of lottery games and other products. Tickets went on sale in November 2024, ahead of its inaugural draw on 14 December.

In the run-up to that milestone the GCGRA issued a warning clarifying that the UAE Lottery was the only legal lottery available across the country. Two duty-free lotteries – Big Ticket in Abu Dhabi International Airport and Dubai Duty Free – can run draws for travellers.

Last year, the GCGRA said the UAE Lottery “caters to players’ variety of interests and financial preferences”.

The GCGRA describes The Game as “a commercial gaming operator specialising in game development, lottery operations and gaming-related content”. It is a subsidiary of Momentum, an Abu Dhabi-based business that claims expertise in mobile games development and publishing, virtual reality, iGaming and esports management.

Land-based casino gaming licensee Wynn Resorts is already building its Wynn Al Marjan Island Resort. The Ras Al Khaimah (RAK) project is a joint venture between affiliates of Wynn Resorts, Marjan and RAK Hospitality Holding.

Wynn expects to open its multi-billion-dollar project in Q1 2027. Al Marjan Island is 15 minutes from Ras Al Khaimah International Airport and 45 minutes from Dubai International Airport. It is about 65 miles from Dubai, the UAE’s largest city.

It will have a gaming floor, 1,000+ hotel rooms, convention facilities, shopping and restaurants.

Spelinspektionen fined the Swedish Social Democratic Workers’ Party, the Swedish Social Democratic Youth League and the Swedish Social Democratic Women’s League SEK3 million ($313,615) in a penalty fee.

The fine is a result of an investigation into the lottery Kombilotteriet by the newspaper Dagens Nyheter. The media coverage and ruling by the Swedish Consumer Agency that marketing violations were present sparked a supervisory case by Spelinspektionen.

The Swedish Consumer Agency investigated the media reports and found that the licensees had used aggressive business methods while carrying out telephone sales of lottery tickets. The agency found that the tactics violated Sweden’s marketing laws.

The Kombilotteriet is run by Kombispel, which is a subsidiary of the A-lotteries company, owned by the Social Democrats and the Swedish Student Union.

The licensees told the gambling regulator after it began its own investigation that they had hired Kombispel to develop and run the lottery. Kombispel had then recruited an external telemarketing firm to run marketing and sales.

Spelinspektionen has fined the associations for not ensuring that operations run by contracted entities were done so in controlled and safe conditions.

“It is the licensees who have full responsibility for the gaming operations, including the operations entrusted to contractors. The Swedish Consumer Agency’s assessment that the licensees have used aggressive business methods and thereby violated the Marketing Act remains unchanged, despite the licensees having taken corrective measures,” the Swedish gambling authority stated.

Sweden’s charities hit with fine

The Swedish regulator has also fined the Swedish Breast Cancer Association and the Prostate Cancer Association over lack of control and marketing infringements.

Spelinspektionen’s investigation of the associations was sparked by a consumer agency investigation in Sweden that examined market methods to create sales of telephone tickets for the Date Lottery (Datumlotteriet).

The consumer agency investigation found that several people had received invoices from the lottery organisation for tickets they had not ordered or even been in contact about.

In other instances, it was alleged that consumers were signed up for donation subscriptions they had not agreed to.

Both associations responded to the gambling regulator by letter to state that they had hired a company to develop and sell the lotteries covered by their licences. That company had then in turn hired an external telemarketing company to handle the sales and marketing of the tickets.

The Swedish gambling authority said it did not believe that the licensees had the control required to ensure that the lottery was run in managed and safe conditions.

The Swedish Breast Cancer Association has been given a penalty fee of SEK1 million ($104,612) by the Swedish regulator.

Earlier this month, the Swedish regulator fined Kindred’s Spooniker SEK10 million.

In a recent review of Spooniker’s procedure, Spelinspektionen found that it had not “achieved sufficient customer due diligence” to be able to assess the risk of money laundering.

Participation in gambling activity in the last four weeks of the questioned public was 46%, a drop from 49% reported in NatCen’s previous three-month study that ended October 2024.

The NatCen research was conducted using a surveyed sample of 5,191 adults aged over 18 between September 2024 and January this year.

Of those who said they had gambled within the last four weeks, 19% said they only took part in National Lottery or charity lottery draws. If these players are excluded from the overall participation data, gambling participation rates fall to 28%, which is on par with the prior reported three months.

Office for Statistics Regulation publishes review of GSGB study

The UK’s Office for Statistics Regulation, a regulatory arm of the UK Statistics Authority, has undertaken a review of the GSGB survey following concerns raised about its reliability.

In a report published on Thursday, the Office for Statistics Regulation made nine recommendations to improve the GSGB study, but also noted that it sees no reason why the data should not be published.

These recommendations advise the Gambling Commission to provide more detailed information on its quality assurance and validation processes, as well as to clearly communicate potential biases that may affect the GSGB estimates that are in the statistical releases.

It has asked the Gambling Commission to create a GSGB user engagement strategy. This would detail how users could get involved in the study’s development. It has also recommended that the Gambling Commission broaden its stakeholder network and collaborate further with producers of other official statistics.  

“While there are still some areas that require further exploration and improvement, we have not seen evidence to suggest that the statistics are not fit for publication,” the Office for Statistics Regulation said.

“Currently, the GSGB provides the most regular estimates of gambling when compared to other surveys of this nature undertaken by official statistics producers.”

The Office for Statistics Regulation has also recommended that the Gambling Commission explain what the data can and can’t be used for.

Ed Humpherson, director general for the Office for Statistics Regulation, said in a statement: “I understand that the Gambling Commission has already started to take action to address some of our findings and recommendations.

“I welcome this proactive approach and encourage the commission to publicly set out the progress it has made.”

Lottery participation falls, online play upticks slightly

In the most recent data from the GSGB study, the Gambling Commission reported that lottery games remain the most popular gambling activity in Great Britain, but that their participation has fallen since October, from 37% to 34%.

After lottery, the most popular gambling activities were scratchcards at 12% and betting at 10%. Online instant win games stood at 7%.

Online gambling participation rates reported by the study were 37% during the last three-month period. However, once lottery draw-only players are excluded from responses, this falls to 17%, up slightly by one percentage point on the prior period.

The Gambling Commission reported at the start of the month there was a 7% year-on-year increase in online gross gambling yield for the first quarter, helped by double-digit growth for online slots.

Data from the Gambling Commission placed GGY at £1.45 billion ($1.93 billion) for the three months to 31 March. This beat the £1.34 billion in the same period last year, but fell 5.8% short of the £1.54 billion in Q4.

Consumers played a total of 23.4 billion spins during the quarter, a 6% increase on last year, while average accounts also climbed 6% to 4.5 million. The latter was a new quarterly high for the slots segment.

It should be noted that in the NatCen study, in terms of age groups present in the sample size, 6% of the respondents were aged 18 to 24, while that age group is estimated to account for 11% of Great Britain’s adult population.

Additionally, the age group 65 to 74 made up 18% of the study but consists of 12% of Great Britain’s population.

IGT today announced it will lead the successful LottoItalia consortium, which will also include Allwyn, Arianna 2001 and Novomatic Italia. The tender will run until November 2034.

The consortium’s bid is made up of €2.23 billion up front and it is expected that will be paid in three instalments between the date of the award and April 2026. It expects the first two instalments of €500 million and €300 million to be made in 2025.

Barry Jonas of Truist Securities said in a note this morning that the new upfront fee is substantially larger than the 2016 process (€770m at the time) and estimates from Truist, which has been between €1.3 billion and €1.5 billion.

IGT CEO Vince Sadusky said in its earnings call last week the company had set aside a $500 million investment in the Italian lottery if it were awarded the licence. This is part of a larger €1 billion term loan.

Sadusky believes the hefty operational fee reflects the “significant value” of the new licence. The company is confident the investment will benefit its revenues, and longer-term profitability, despite it posting a 10% drop in group revenue in Q1.

“In addition, we plan to significantly grow our iLottery sales and leverage that momentum to expand into the Italian B2C iCasino, sports betting and other digital gaming business,” Sadusky said.

Allwyn will contribute a pro rata 32.5% share of the licence fee and capital expenditure and its CEO Robert Chvatal is “thrilled” to continue the partnership with IGT in Italy for another nine years.

“We’re pleased that Allwyn’s positive contribution to the consortium, including our proven track record of modernising and growing lotteries across Europe, will continue to support IGT’s exemplary stewardship of an important Italian national asset,” Chvatal declared. “We look forward to working together to grow the Italian Lotto, while developing innovative solutions to support responsible play.”

IGT secures ‘one of the most important lottery contracts‘

According to the Financial Times, the concession rate from total wagers will amount to 6%, with a further 8% gross fee to be collected through digital channels for distribution.

In a statement released today, IGT’s executive chair of the board Marco Sala said the Italian lottery concession was one of the world’s most important lottery contracts.

“IGT and its predecessor companies have successfully managed the licence for 30-plus years through constant innovation and the introduction of cutting-edge technology.

“The award is very gratifying and we are honoured and excited to continue working with the ADM [Customs and Monopolies Agency] for nine more years,” he said.

In the Truist note Jonas said IGT had expected to win the rebid based on the regulator’s scoring system. “Recall the award is based on a scoring system weighting 60% financial, 40% technical. Based on the scoring system, IGT has emerged successful, although an official  announcement is forthcoming.”

Jonas said he doesn’t see any major negative impact for Flutter in the loss of Italian lotto to IGT. “Our view on Flutter owning Lotto at all costs was mixed. We have always seen traditional lotto as a lower multiple business (~5.5x historical multiple) somewhat straying from Flutter’s core digital focus.”

The revelation came as IGT published its results for the first quarter. Group revenue was down 10% year-on-year to €583 million, with declines across three of its four core operating segments.

Geographically, revenue was lower across all markets, although Italy saw the shortest decline, with revenue down 3%. It is here that Sadusky and IGT see significant opportunity for the provider, particularly with the lottery licence.

IGT has controlled the Italian lottery since 1993. However, it faces fierce competition to keep hold of the licence after its current term ends in November this year. Novomatic, Allwyn and Flutter are among those also said to be in the race.

According to IGT, the licence process is “well under way”. The Italian gaming authorities have informed participants the economic proposals they submitted in the concession tender will be opened on 19 May, although news is expected before then.

“We also understand that the evaluation of the technical proposals is complete,” Sadusky said. “We expect the results of the technical evaluation to be announced before this date.”

In preparation for the licence award, IGT has issued a new €1 billion term loan. Of this €500 million has been used for debt repayment under existing credit facilities. The other €500 million will only be utilised if it secures the licence for another term.

How are tariffs impacting IGT?

The Q1 update also addressed wider issues for IGT, including the impact of tariffs and threats it could lead to another recession. Tariff concerns were addressed by Light & Wonder in their Q1 earnings call earlier in the month.

Sadusky said that, while these issues have fuelled fears of a recession, IGT remains upbeat on its own performance, backing the provider to continue to succeed in two of its core markets – the US and Italy.

“As you know, the world is currently faced with significant macroeconomic and geopolitical uncertainty,” he said. “We feel good about the things we can control and the long-term prospects for our business, but we’re not immune to these challenges.

“However, history has shown that lottery sales in the US and Italy have proved to be resilient in both absolute and relative terms during recessions.”

Sadusky also addressed the pending sale of its gaming and digital assets to private equity giant Apollo Global. The deal was struck last July and, according to Sadusky, is on track to complete in Q3 this year.

Should the sale go through as expected, IGT would become a lottery-only business.

Reasons for revenue decline in Q1

Going into more detail on its Q1 performance, IGT put the drop in group revenue primarily down to lower instant ticket and draw-based revenue. In total, revenue in this segment dropped 3% to $500 million.

IGT also noted a 46% drop in US multi-state jackpot wager-based revenue. This, it said, was caused by higher activity in the previous year, as well as associated lottery management agreement incentives and multi-year central system software licences and terminal sales in 2024.

Other revenue also declined by 28% to $89 million, although up-front licence fee amortisation improved slightly year-on-year.

In total, service revenue fell 10% to $557 million, with product sales revenue down 38% to $26 million.

In terms of geographical performance, US and Canada remain the primary source of income – just – at $259 million. This was, however, 20% less than the previous year. Italy revenue was also down, but only by 3% to $246 million, while rest of world revenue slipped 7% to $79 million.

Bottom-line net profit down 204%

Turning to spending, operating costs were level year-on-year at $445 million, although non-operating expenses jumped 78% to $82 million.

After finance costs, pre-tax profit hit $8 million, down 93%. However, when including $52 million in profit from discontinued operations, net profit only fell 53% to $60 million.

After discounting profit from non-controlling interest, bottom-line net profit was $27 million, a drop of 204% from last year. In addition, adjusted EBITDA fell 24% to $250 million.

“While the world is currently faced with great uncertainty, we are excited about the initiatives we are working on to drive sustainable, long-term growth and shareholder value,” Sadusky said.

The possibility of privatising the monopoly was first discussed during a parliamentary committee debate in November last year.

The government was considering relinquishing control of Nederlandse Loterij and handing it to a private party. However, in an update published Tuesday, it said privatisation of Nederlandse Loterij is not currently “feasible and proportionate”, with the current setup to continue.

Going into further detail, the government said such a change was not in line with its vision on gambling. Part of this vision includes leaving the Dutch lottery market unchanged and instead focus on evolving the country’s online market.

The government also noted that privatisation would require major changes to legislation and regulation, which could in turn leave players at risk of gambling-related harm. It said this is not “desirable” and does not want to run the risk of harming consumers.

Nederlandse Loterij privatisation may be a future option

State Secretary Tjebbe Van Oostenbruggen (taxation, tax authorities and customs) and State Secretary for Legal Protection Teun Struycken announced the decision in a statement to the Dutch House of Representatives.

In his letter submitted to parliament, State Secretary Van Oostenbruggen said the government may look at privatisation again in the future. He reiterated, however, that now would not be the right time for such a large-scale change.

Van Oostenbruggen said any future decision on the state lottery must be in accordance with “the vision of the department responsible for policy”.

“The government will retain the Nederlandse Loterij as a state-owned company for the time being,” he said. “Citizens will retain access to a party that is structured differently from commercial gambling providers.

“In doing so, the government also wants to take responsibility in a market that clearly also has negative aspects and ensure long-term stability.”

He referred back to Struycken’s presentation to parliament in February on reforming current online gambling regulations and putting a bigger emphasis on player protection.

His recommendations at the time included increasing the minimum age for “higher-risk” verticals like online slots, to 21, as well as tougher advertising restrictions for operators. An updated gambling act bill is expected by the end of this year.

“This more restrictive policy leads to additional measures and stricter legislation and regulations for both the legal supply and for tackling the illegal supply,” Van Oostenbruggen said in his letter.

Lottery boss keen on independence

The announcement was met with a mixed response from Nederlandse Loterij CEO Arjan Blok. He said that, while he understood the government’s decision, it maintained the lottery would like independence from the state to better compete in the regulated market.

“Nederlandse Loterij wants to be the most responsible gambling provider,” he said. “We can be and remain that if we can structurally compete with international competitors on the Dutch market. It is precisely in order to maintain this position that Nederlandse Loterij is in favour of independence.”

Blok also welcomed comments from the government that it would re-evaluate its holding in Nederlandse Loterij in the future. This, as hinted at by the government, could result in the privatisation of the lottery at some point.

“It is good to see that the government appreciates the important pioneering role of Nederlandse Loterij and underlines the strategy of our company,” Blok said. “Furthermore, it is positive that the government will re-evaluate the shareholding in Nederlandse Loterij in the long term.

“With a safe and responsible range of games of chance, Nederlandse Loterij will continue to perform its social tasks. Because participating is fun, but it should also remain fun.”

Holland casino will also not be privatised

Elsewhere, the state secretary’s letter addressed the impact of recent gambling tax hikes on monopoly land-based operator Holland Casino. It said the government would also not privatise Holland Casino, but it was in talks with the operator to mitigate the impact of increased taxes.

In August, Holland Casino Chief Executive Petra de Ruiter warned any further tax increases would make it impossible for Holland Casino to operate profitably. She went as far as to say the 7.3% rise would be “irresponsible”.

The first iteration of the gambling tax hike came into force in January, with the second expected in January 2026.

“The focus for Holland Casino must currently be on ensuring the continuity of the organisation. In the committee debate on state participations of 28 November 2024, I indicated that I am in discussions with Holland Casino about the impact of the increase in gambling tax. This increase is putting pressure on the continuity of the company. These discussions are about measures that can promote recovery and options to tackle the challenges,” Van Oostenbruggen noted in his letter.

The operator has commenced a number of measures to protect it from the tax impact, including a reorganisation of the head office, reducing marketing costs, adjusting the opening hours and game proposition and range and closing a branch in Zandvoort and various other cost savings.

A payment break for the tax debt that Holland Casino built up during the Covid-19 pandemic has also been agreed with the tax authorities, in addition to an agreement on a longer repayment term for this tax debt in order to improve the liquidity position.

“Holland Casino will have to develop new measures in the coming period in order to remain viable in the long term,” Van Oostenbruggen added.

This beats the €36.1 million reported in the corresponding period last year, Zeal reported in its Q1 announcement on Wednesday.

Reflecting on Q1, Chief Financial Officer Andrea Behrendt – who took on her new role in April – said the lottery performance was a particular highlight, despite no “peak” jackpots during the period.

The average jackpot for both the LOTTO 6aus49 and Eurojackpot draws was higher than Q1 of last year, although neither reached their maximum jackpot levels. However, revenue and billings still increased, while customer numbers climbed 13%.

“We started the new year with a lot of momentum and were able to achieve strong results,” Behrendt said. “We are particularly proud of the significant increase in our revenue and customer base despite the absence of peak jackpots.

“This shows that our strategic marketing expenditure and our measures to acquire new customers continue to pay off in the long-term and that we are in an excellent operational position. I’m a firm believer in the growth opportunities in our core business in a still underpenetrated market.”

Lottery billings reach €264.7 million

Going into further detail on the lottery business, revenue in Q1 was 41.3% higher at €45.2 million.

Billings – comprising all stakes, including brokerage stakes and associated VAT, net of bets – increased 7.5%. Customer payments were also up by 9.5% to €215.4 million, but average monthly billings per user (ABPU) declined 5%.

Zeal also noted a 133.1% increase in the average number of active users per month (MAU) to 1.5 million. The company said this was mainly due to growth in its customer base during 2024, which is reflected in increased billings.

Zeal sees most growth in online gaming

Accompanying the growth in lottery was an increase in revenue within its games segment. During the quarter, games revenue climbed 54.6% year-on-year to €3.4 million.

Billings from games climbed 45.4% to €45.5 million, with customer payments up 62% to €10.2 million and ABPU also up 22%. In addition, average MAU in Q1 for the games segment was 19% higher year-on-year.

“We also initiated some encouraging developments in the B2B segment,” Zeal said. “The launch of high-profile partnerships with renowned providers such as Tipico and Gamomat will enable us to expand our portfolio and target groups even more quickly in future.”

Zeal also reported an additional €1.5 million in revenue from other activities, including its ONCE business in Spain. This figure is 5.4% more than the previous year.

Lotto24 squeeze-out skews year-on-year profit comparison

Turning to costs, operating spend was higher across the board during Q1. However, the rise in revenue meant EBITDA was able to increase 88.3% year-on-year to €17.7 million.

Amortisation and depreciation costs were higher than the previous year and, after financial costs, Zeal was left with a pre-tax profit of €14 million, a rise of 102.9%.

However, when it comes to tax, the year-on-year comparison is skewed. Zeal paid a total of €4.2 million in income tax this year, whereas in 2024, it received €14.2 million – as a result of the Lotto24 squeeze-out. Last year’s positive tax impact came after the initial recognition of deferred tax assets on tax losses caried forward after the squeeze-out request.

As such, bottom-line net profit this year was €9.8 million, a 53.6% drop from €21.1 million in Q1 2024.

In March, Brazil’s Solidarity party filed a Claim of Non-Compliance with a Fundamental Precept, calling for municipal lotteries to be suspended over claims they were disrupting the newly regulated federal online betting market.

However, the Supreme Federal Court (STF) Minister Nunes Marques denied that suspension, with municipal lotteries allowed to continue operations until the STF makes a final ruling.

In response, the Leme Consultores study has revealed municipal lotteries could contribute significantly to the Brazilian economy, to the tune of nearly BRL12 billion in federal revenue for the government.

Smaller operators unable to meet federal requirements in Brazil

The study, based on existing data for companies which have obtained licences in the municipality of Bodó in the state of Rio Grande do Norte, found around BRL8 billion could come from smaller companies that can’t meet the high barriers of entry for federal authorisation.

Companies seeking a federal licence must pay a hefty BRL30 million authorisation fee, while also meeting significant technical and certification requirements.

“These barriers to entry – especially for small and medium-sized agents – not only affect competition, but also directly reduce the potential for tax collection,” the study said.

“In particular, the high initial and maintenance costs required by federal legislation may significantly restrict the number of operators able to collect taxes, reducing the effectiveness of the tax system on the sector as a whole.”

Are municipal lotteries legitimate?

The Solidarity party claims municipal lotteries are creating a “truly chaotic scenario” in Brazil, with jurisdictions navigating around federal betting laws to allow companies without nationwide authorisation to operate.

The study disputes that, however, saying municipal lotteries “may represent a legitimate way” of decentralising lottery, encouraging competition.

“Decentralised lottery models, such as those in the United States, Canada and Australia, show that the coexistence of local and national lotteries can bring beneficial results in terms of the distribution of powers and tax collection,” the study explained.

“In Brazil, the excessive centralisation of lottery activity in the Union resulted in a limited supply of products and the concentration of revenues in a few hands, making it difficult for many regions to access the benefits generated by the activity.”

However, Daniel Romanowski, president of the state lottery in Paraná, believes municipal lotteries could pose a problem to smaller companies that can’t gain federal authorisation.

“We have 5,000 cities in Brazil for sure,” Romanowski told iGB. “There are some cities, like my city Curitiba, São Paulo, they have the big structure, but also in the same level we have cities with 3,000 people.

“Checking out the websites, the systems, the games, everything that goes on, to have good suppliers for 3,000 people, I don’t know if they will have the qualities that we want for the market.”

According to The Times, the commission is concerned that Allwyn has not met certain contractual milestones since securing the licence. Czech-headquartered Allwyn assumed control of the UK National Lottery in February last year.

Areas of concern to the regulator are said to include delays to digital upgrades. Allwyn is also said to have pledged to reduce ticket prices for the main National Lottery draw from £2 to £1, but this is yet to take place.

Responding to the speculation, the commission said it would not comment on individual cases before any decisions are made. The regulator has the power to take action such as issuing formal warnings and financial penalties.

“Where the Gambling Commission decides to commence enforcement action, the process is investigative in nature,” the commission said. “We do not usually talk about individual cases. We may publish information about enforcement cases once they are complete.”

Allwyn committed to National Lottery improvements

Allwyn issued its own reply to the speculation. It reiterated that it is committed to upgrading and modernising the system, with a planned total spend of more than £350 million ($467 million) on improvements.

“Our investment will help restore the magic to The National Lottery,” Allwyn said. “But the shift from outdated systems is complex and requires robust testing. We will deliver essential upgrades over the coming year. We are working at pace to complete this transformation as soon as possible.”

The Times also highlighted recent comments in corporate filings. Signed off by Allwyn Chief Financial Officer Kenneth Morton, the filings referenced a “demanding” timetable for the operator.

“The timetable is more demanding operationally, while the delivery of the transition also depends in part on third-party suppliers,” the filings said. “While Allwyn UK continues to progress as expeditiously as possible while prioritising contributions to good causes, after the end of the reporting period a contractual milestone in the enabling agreement was not reached.

“The Gambling Commission is reviewing what, if any, enforcement action might be taken against Allwyn UK in relation to that milestone.”

Allwyn defends position on good causes

The article in The Times also made reference to funding to good causes from National Lottery sales. However, Allwyn addressed this in a statement issued to iGB.

“Protecting and maintaining returns to good causes at £1.6 billion ($1.2 billio) in our first year of operation has been a success and we continue to do everything we can to protect returns,” Allwyn said.

“It’s also worth noting that, over the course of the Fourth National Lottery Licence, good causes also receive a larger proportion of every ticket sold than under the Third Licence, including through a fixed contribution payable by Allwyn to Good Causes annually.

“So, we remain confident our plans will deliver on our ambition to double weekly returns to Good Causes from £30 million a week to £60 million by the end of the licence.”

Legal battles continue to stunt progress for Allwyn

While not addressed directly by Allwyn, the group is said to have blamed ongoing legal challenges for progress delays.

In securing the licence, Allwyn became only the second entity to run lottery since its launch in 1994. It replaced incumbent Camelot, which had also bid for the licence along with The New Lottery Company, owned by Health Lottery operator Northern and Shell and Italy’s Sisal.

First, Camelot issued a legal challenge, arguing the commission had not been forthright in its communication. This led to the High Court automatically suspending the licence decision.

Camelot eventually withdrew its challenge following media reports money for good causes could be at risk in a lengthy case. Incidentally, Allwyn later acquired Camelot UK, which operated the National Lottery, in February 2023. It also acquired Camelot Lottery Solutions (Camelot LS).

International Game Technology also pursued a claim for damages over how the change in licensee would impact its business. This was eventually withdrawn and the group agreed to a new technology partnership with Allwyn.

However, one legal challenge that remains in play is that of media mogul Richard Desmond. His company, Northern & Shell, is seeking damages over claims that the regulator’s process was unlawful. A High Court case is due to take place later this year.

Pennsylvania has become the sixth US state to join the Multi-State Internet Gaming Agreement (MSIGA) for poker.

Online poker players in Pennsylvania will be able to participate in the multi-state games. This will be available to consumers from certain operators starting today (28 April), with Pennsylvania expanding the pool of online poker players for those sites by more than 50%.

Pennsylvania joins New Jersey, Nevada, Delaware, West Virginia and Michigan within the MSIGA. The Pennsylvania Gaming Control Board will work with operators and the other state agencies to facilitate poker games.

Pennsylvania governor Josh Shapiro signed off on the agreement last week. He said: “This is a common sense step to support hundreds of thousands of Pennsylvanians, grow our economy and bring in more revenue to support our schools, our seniors, our small businesses and more.”

Allwyn North America rolls out games with DC Lottery

Meanwhile, not far south of Pennsylvania, Allwyn North America has launched its portfolio games in partnership with the DC Lottery.

Players in DC will now have access to games across the Allwyn collection. The first to go live will be Super Cash Bolt which, customised for the DC Lottery, is part of the Cash Bolt series.

Allwyn North America works with Instant Win Gaming to deliver its games via IWG’s InstantRGS.

“DC Lottery’s mission is to responsibly maximise lottery funding for our communities – and our players expect high-quality gaming experiences,” DC Lottery interim executive director Eugene Vlasenko said.

Gaming Corps lands Ontario licence

North of the border, Gaming Corps has secured a licence from the Alcohol and Gaming Commission of Ontario.

The new licence enables Swedish-based Gaming Corps to develop and distribute its gaming content in Ontario. Gaming Corps said that it already has agreements in place with several licensed operators in the Canadian province.

At launch, Gaming Corps will go live with a selection of its top-performing, sports-themed titles. It said these will be tailored to local demand and include titles such as Hoop Champion and Shootout Champion.

“This licence opens up significant opportunities for Gaming Corps and reinforces our commitment to working only within licensed and regulated jurisdictions,” Gaming Corps CEO Juha Kauppinen said. “With a growing appetite for original content, we’re excited about the potential Ontario holds – both in terms of player engagement and long-term growth.”

Penn Entertainment to refresh board

In other news, Penn Entertainment has announced several proposed changes to its board of directors.

Johnny Hartnett and Carlos Ruisanchez have both been nominated for election to the Penn board. This follows discussions with HG Vora Capital Management.

Meanwhile, Ron Naples has informed the board he is retiring effective immediately. Barbara Shattuck Kohn and Saul Reibstein have also notified Penn they will not stand for re-election at the upcoming annual meeting of shareholders.

As such, the board now comprises eight directors, seven of whom are independent.

“We look forward to benefitting from Johnny’s and Carlos’ fresh perspectives as we enter into a critical phase for the business,” the Penn board said.

LeoVegas opens second UK office

LeoVegas has opened its second office in the UK with a new facility in Leeds.

LeoVegas will occupy the entire ground and lower ground floors of Tailor’s Corner. The new office will support the group’s existing UK location in Newcastle.

The operator said this will support the ongoing development of brands such as BetMGM and LeoVegas in the UK market.

“It’s an important step towards our key goal to continue building the strength of our hero brands in the UK – BetMGM and LeoVegas – by attracting top talent,” said Gethin Evans, managing director UK and Ireland at LeoVegas.

However, Romanowski says Lottopar, alongside other state lotteries in Brazil, may challenge those laws in the Federal Court. He believes states have the right to collaborate to grow their betting offerings.

“The federal [government] cannot say what the states can do,” Romanowski tells iGB. “Basically they regulate the federal, we regulate the states.

“We have our own houses of law here, so I believe we can associate in the near future, in like two or three years.”

Precedent for state cooperation in Brazil

Romanowski highlights previous examples of Paraná and nearby states collaborating on projects, pointing to the Southern Regional Development Bank (BRDE), which was founded in 1961 by the states of Paraná, Rio Grande do Sul and Santa Catarina.

Romanowski says the BRDE is evidence of jurisdictions collaborating to enhance their competitiveness, especially against powerhouse states such as Rio de Janeiro and São Paulo.

“Parana could make just his bank for his people,” Romanowski continues. “But he united with other states and made up a bigger bank with more power, with more money to lend for the people, for our population.

“And I believe the lotteries are the same and we can associate ourselves.”

Huge advantages for smaller states

The nature of lotteries is the bigger the prize on offer, the more inclined people are to participate.

For smaller states, this could prove especially advantageous as their draws are typically smaller and they have access to less players.

Romanowski suggests a “South of Brazil Lottery” as a means of competing against much bigger states, such as São Paulo, which boast populations far exceeding theirs.

“We have 11 million people, almost 12 million people in our state,” Romanowski explains. “But there are states that have like 700,000 people and they can associate with other states that size to [create] a better lottery, to make something that the population of their states is going to play with.

“We know that with the lottery, it’s more [about] imagining how your life is going to change if you win that prize. If there are smaller prizes, you’re not going to have that.”

Can Brazil replicate other global lotteries?

Romanowski cites the cases of EuroMillions in Europe and Mega Millions in the US as hugely successful cross-jurisdiction lotteries.

For him, a “BrazilianMillions” offering would prove hugely beneficial with three or four states combining to lure players in with big prizes.

“We probably can associate with Rio de Janeiro, with São Paulo and make one big lottery,” Romanowski adds. “It’s not a problem.

“EuroMillions, Mega Millions, Powerball, they all were created like that. So now they have the best lotteries. The bigger prizes in the world lottery are from them because they’re united, a lot of states.

“So, I think in the near future we are going to be on that.”

Ongoing conflict between states and federal government

The relationship between state lotteries and the federal government has been complicated of late, best exemplified by the Rio de Janeiro State Lottery’s (Loterj) failed attempts to license brands nationally throughout Brazil.

Loterj claims its state licence should allow authorised brands to offer bets across Brazil without a federal licence.

However, the government seems to have won that battle with the Supreme Federal Court last month voting to uphold a preliminary injunction that banned Loterj-licensed brands from offering bets beyond Rio de Janeiro state borders, while also mandating geolocation tracking to ensure compliance.

Readen typically invests in financial technology, including cryto and blockchain developments. Its focus is to help progress the development of crypto payment solutions.

The company said that through the acquisition it now holds licences in Nigeria for lottery, sportsbook and online casino operations. This, it added, will allow it to become a “major international force” in the country’s regulated gaming, entertainment and fintech infrastructure.

In entering Nigeria, Readen said this will give it access to a market worth an estimated $2.50 billion (£1.88 billion/€2.20 billion), which is forecast to grow 9% annually each year until 2030.

“Strategic launchpad” for Readen

Setting out its roadmap, Readen said the deal will include the deployment of specialised operating partners for lottery, sportsbook and casino. Readen will, however, retain full control of the financial and technical infrastructure through its Readies payment system.

Finexeble, a Czech-licensed subsidiary of Readen, operates the hybrid blockchain-powered payment solution. Readies will serve as the exclusive payment rail across all Morrich platforms, handling both fiat and crypto transactions.

With lottery, Readen plans to revamp Morrich’s current offerings with scratch tickets, Keno and mobile-first innovations. It will target mainstream adoption through retail and digital channels.

As for sportsbook, Readen will launch a full-spectrum betting platform integrated with the Readies solution. Finally, online and casino venue-based gaming operations will be rolled out in stages, in compliance with local authorities

“This is more than an acquisition,” Readen CEO Ridzky Berg said. “It’s a strategic launchpad into one of the most dynamic gaming markets in the world. Nigeria’s youthful population, expanding internet access and growing appetite for digital gaming make this a prime market.

“With our proven fintech backbone and seasoned leadership, we’re ready to set a new standard for integrated, secure and user-friendly gaming platforms across the region.”

These issues were examined by a panel of regulators, legal experts and legislators on 15 April at the 28th annual East Coast Gaming Congress, held at Hard Rock Atlantic City.

Moderated by Lynne Kaufman, a partner and group co-chair at Cooper Levenson, the panel – titled ‘Future Shock: Confronting Unprecedented Challenges in Gaming’ – featured Shawn Fluharty, a West Virginia lawmaker and president of the National Council of Legislators from Gaming States (NCLGS).

Confronting the challenges

The panel also included Mary Jo Flaherty, interim director of the New Jersey Division of Gaming Enforcement; Yael Harel Hertz, CEO of TheLotter Group; David Brace, principal, innovation & technology for Continent 8; and Andrew Winchell, head of government affairs for Betr.

Kaufman noted how brick-and-mortar casinos have pumped billions into state and local government through licensing fees, construction projects, job creation and taxes. The casinos are now facing battle after battle to maintain those contributions, as well as their own profits.

Cooper Levenson also served as a co-producer of the conference.

Fluharty noted that many of the challenges come not from outside the casino industry, but from within the industry in the form of taxes and competition with other forms of gaming.

As a multitude of internet gaming bills are under consideration, tax implications are a primary concern, Fluharty emphasised. He said lawmakers should pass bills that “raise revenues” but don’t raise taxes.

Growth of igaming

Fluharty added that industry concerns over cannibalisation from igaming are not slowing down the progress of legislative efforts to pass igaming. “I’ve heard industry leaders say igaming cannibalises land-based gaming, but that doesn’t mean igaming is failing,” he said. “We haven’t had passage in many states, but many are looking at it. It’s coming.” He said US President Donald Trump’s aversion to granting federal funds to states is likely to speed up efforts to legalise igaming to fill revenue gaps.

Other concerns over internal industry competition involve lottery couriers, which players can use to purchase lottery tickets online, with the courier purchasing the actual tickets from retailers. Hertz of TheLotter, a worldwide ticket purchasing and courier service, said there have been concerns that courier services eat into profits of lotteries that offer direct online ticket purchase and online scratch-off games, known as ilottery.

She defended the courier business model, noting that with the correct regulatory framework couriers can save states a lot of money, with sales retaining the business and profits of brick-and-mortar lottery retailers.

But the most pressing recent challenges to legal gaming, panelists said, include unregulated gaming, in the form of sweepstakes casinos and prediction markets.

Model legislation at NCLGS

Fluharty said NCLGS is working on model legislation to authorise internet gaming that includes a ban on sweepstakes casinos, which allow patrons to “purchase” products and use a mobile app or on-site computers to play games that can result in cash prizes. Fluharty said sweepstakes casinos skirt the law and provide unfair competition to companies that have gone through the rigorous process of licensing.

“Licensing is a privilege, not a right,” Fluharty said. “If you pass an igaming bill, include a ban on sweepstakes, with penalties.”

David Katz, a gaming analyst with Jeffries, appeared on a separate panel addressing the landscape for gambling stocks from an investing perspective. The panel also delved into issues surrounding illegal sweepstakes casinos and prediction markets.

“These forms of gaming tend to position themselves right on the edge of legal versus illegal,” said Katz. “But now it’s not as simple as it was in earlier days. Some may need to be legalised, some may need to be swept away. You have to pick and choose.”

Fluharty, meanwhile, noted that the other potential unfair competitor to licensed casinos is the emerging prediction market, which treats wagers as “commodities”. Prediction markets, in his view, also allow customers to wager on political campaigns in a similar fashion as event contracts on sports.

While prediction exchange sites like Kalshi frame bets as “financial instruments” that pay off for correct predictions, Fluharty said in actuality they behave as expanded sportsbooks. “If it walks like a duck and talks like a duck, then it’s probably a duck,” he said, dismissing the idea that those markets will be treated as “commodities”.

However, online betting, through its Kindred business, was down 10% to €231 million in the first three months of the year. This was despite active players increasing 10%.

FDJ United pointed to increased taxation in the Netherlands and stricter regulations in the UK as causing an adverse impact on its earnings.

Notably, online betting and gaming revenue excluding the Netherlands and the United Kingdom was up by almost 8% on the previous year.

Revenue in the Netherlands dropped 41% in Q1, following the implementation of an almost 4% tax increase to 34.2% of GGR. The operator’s revenues were also squeezed by the introduction of deposit limits in the Netherlands.

“We were impacted by increased gaming taxation in the Netherlands, but more importantly, by stricter regulation implementation, both in the UK and the Netherlands,” FDJ United CFO Pascal Chaffard said on the operator’s earnings call yesterday.

“In the Netherlands the largest impact came from the introduction of a new monthly net deposit limit.”

FDJ improving deposit increase request process to mitigate losses

New rules, introduced by the KSA last October, limit players’ net deposits to €700 (£583/$777) within a calendar month. This is reduced further to €300 for gamblers aged between 18 and 25.

“These measures significantly reduced the revenue of licensed operators, but they also led to a sharp drop in the channelisation rate as the market share of unlicensed operators increased in 2024 and now exceeds 50% [in the Netherlands],” FDJ United CFO Chaffard said.

This drop in channelisation and GGR across the Netherlands was also documented by the Dutch gambling regulator in its spring market report, released earlier this week.

But the operator is confident it can return to growth in the market, as it achieved active player growth of 15% during Q1. It said it was working to mitigate the impact of continued regulatory changes.

This included ways to engage with Dutch customers to improve the process of raising deposit limits when requested.

A player can have their monthly deposit limit increased if they provide documentation to support their financial means. FDJ United said it was working on measures to make this process “seamless” and expects better figures in the coming quarters.

It also noted the number of operators in the Dutch market had dropped from 27 to 25 since these rules were implemented.

“We think that this number will [continue to drop]. And as we are the leader of the market, we will benefit from that,” Chaffard said.

“We are quite positive on our capacity to continue to recruit, to grow our active user baseline and to find ways to help them go through this regulation limit,” Chaffard told investors.

FDJ lottery and sports betting revenue increases

The group’s lottery and retail sports betting grew by 3.6% to €640 million in the first quarter, compared to the previous year.

In France, where it operates a lottery monopoly, online lottery revenue grew by 14% to €79 million, thanks to an increased player base. Total lottery revenue in the market was also up by 5% to €528 million.

Retail sports betting for the three-month period was up on the success of French sports teams, but unfavourable football results caused revenue for the vertical to drop 1% to €112 million year-on-year.

However, betting stakes were up 5% year-on-year.

FDJ United looking ahead to Finland liberalisation

Looking ahead, the French operator said it was preparing for the upcoming opening of the Finnish online gambling market in 2027.

“It’s a country where we are operating today and we are waiting for the regulation to come. So for us, it’s an important one.”

Developments to launch a liberalised market in Finland have progressed quickly. The bill supporting the reform hit Parliament last month and it is expected to be approved in the summer.

If passed, the bill will open up Finland’s online gambling market to private operators from January 2027.

Meanwhile, FDJ United ruled out a return to the US market, following its exit last year.

Chaffard told investors: “We know it’s not possible to be profitable in this jurisdiction.”

Over the last century, there have been dozens of attempts to establish a state lottery. The powerful casino lobby has successfully quashed every effort, however, usually even before it becomes a real possibility. That wasn’t the case this year, as a lottery bill (AJR5) had already made it through both chambers of the legislature in 2023, ensuring the issue would go to voters if also passed in the current legislative session.

The bill was reintroduced for the 2025 session on 3 February but did not gain traction this year. Friday was the first committee deadline day, meaning any bills that hadn’t passed through their first committee were dead for this session. On Friday, assembly speaker Steve Yeager confirmed that AJR5 had met its end, per the Nevada Independent.

“With so much economic uncertainty and shocking federal funding cuts, this measure will not move forward,” he said in a statement. Yeager said the bill’s first passage was to explore the possibility of Nevada entering multistate lotteries. Officials concluded that implementation costs were too high and projected revenue was underwhelming.

Close but no cigar

The latest lottery attempt came closer than prior efforts. In Nevada, a constitutional amendment must pass the full legislature in two consecutive sessions before it can be placed onto a ballot. AJR5 passed the state assembly with a 26-15 vote on 17 April 2023 and the state senate with a 12-8 vote on 26 May 2023. It was introduced by assemblyman Cameron Miller, who did not seek reelection after that session.

If AJR5 had passed both chambers again, it would have gone before state voters to consider approval in a 2026 referendum. Its recent failure means that the process will have to start over again, delaying any future lottery possibilities for multiple years. Nevada will remain a non-lottery state, along with Alaska, Utah, Hawaii and Alabama.

The bill pitted the Nevada Resort Association (NRA) and the Culinary Union, two pillars of the state’s gaming industry, against each other. The Culinary Union supported the bill because some revenue was supposedly earmarked for youth mental health programmes, although that was not explicitly laid out in its language. Conversely, the NRA has always opposed lotteries because of the potential to cannibalise revenue from casinos.

“It’s irresponsible that Democratic leadership in the Nevada Legislature refused to even give AJR5 a hearing — killing legislation they supported last session and denying Nevadans the opportunity to have their voices heard,” Culinary’s Secretary-Treasure Ted Pappageorge said in a statement. “With federal cuts looming, uncertainty around the state budget, and lack of funding for education and mental health, Nevadans need real solutions and we need it now. Politicians cannot complain about budget shortfalls while refusing to even consider a bill that would bring in new revenue.”

The NRA did not respond a to a request for comment.  

Polling indicated lottery support

Despite infighting among stakeholders, polling has indicated that Nevadans want a lottery. Noble Predictive Insights published its Nevada Public Opinion Pulse poll last March, which included responses from 829 state voters.

Three-quarters of respondents (75%) said they support lottery legalisation. Only 13% were opposed, with 12% indicating no opinion.

Supporters have also pointed to the vast amount of money being spent across state lines. A Nevada Independent report from 2023 revealed that the two top-performing California Lottery retailers are at Primm and Gold Ranch. Both locations are immediately adjacent to Nevada’s biggest population centers, Las Vegas and Reno, respectively.

Commercial and tribal casinos still comprised the majority of the outlay in regulated markets with a combined 56% and retail lottery play ranked third with 22%. Mobile sports betting, online casino and poker play and ilottery, however, were the three specific disciplines where Eilers & Krejcik’s report showed double-digit percentage increases compared to 2023.

The market segment of online sports betting grew 34% in the 2024 calendar year, boosted by launches in North Carolina and Vermont. Online casino and poker play, meanwhile, surged 29%. While online lottery play climbed 26% year-over-year, it still represented only 1% of all gambling spend in 2024.

Eilers & Krejcik did not include social casinos, online sweepstakes casinos or skill-based games among its revenue figures in the report.

Retail casino and lottery GGR outpaces spend

Excluding sports betting, retail commercial and tribal casinos accounted for 61% of gross gaming revenue compared to the 56% spend. That gap came despite a mere 1% increase in the market segment for both commercial and tribal casinos and the figure does not include sports betting for the commercial venues.

Lottery revenue accounted for 22% of operator winnings, narrowly outpacing the 21% in total spend from both online and retail lottery action. While revenue totals for lottery play were not split in the report, casino and lottery play provided a reminder of the still-lopsided percentage retail play generates compared to online. In-person wagering accounted for 85% of gross gaming revenue in 2024 compared to 15% from online sources.

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Between January and March this year, the ANJ examined the action plans of the country’s monopolies PMU and FDJ United, as well as its online operators and land-based sites. France has 16 licensed online gaming operators and 203 casinos.

While the French regulator has approved the industry’s action plans, it wants stricter compliance, in particular on the ban of sales to children. It has proposed this could be done by implementing more “demanding” policies on monitoring points of sale.

It has also called for the strengthening of systems that identify and support excessive gamblers. This could be achieved by identifying excessive gambling at point of sale and implementing a training and monitoring plan for retailers.

The ANJ set out the reduction of excessive players as a regulatory priority in its 2024-2026 strategic plan.

ANJ touts success of regulation of online gaming market, calls for more action

The ANJ noted its objective-based regulation strategy for the online gaming market has “generally proven to be successful”.

It pointed to an increase in protection standards for identifying and supporting excessive online gamblers that has resulted in increased numbers of players detected and support by operator systems. The ANJ added operators had implemented individualised supported measures that are “better adapted” to risks.

However, the ANJ stated despite these strides forward, it believes problem gambling still holds too large a segment of the online gambling market. As a result, it has asked operators to identify more excessive gamblers in order to bring the number in line with the player counts and studies.

The ANJ added operators will have to detect and intervene “as early as possible” in severe cases, as well as implement additional gaming limits for high-risk offerings such as live betting or fast-pace poker tournaments.

Land-based casinos

When approving the harm prevention action plans for land-based casino operators, the ANJ noted only one casino’s submission out of the 203 in the market was not approved.

The ANJ stated the sector had an “overall improvement” in compliance with regulations. It reported while some establishments were seeking and adopting best practices in the industry, others have not differed in approach since 2021.

In order to help casinos improve their harm reduction operations, the ANJ created an e-learning programme that launched last year that hosts “concrete solutions” to identify and address industry harm reduction challenges.

In the first half of 2024, the ANJ reported the overall turnover in the French gambling sector increased by 3.8% to reach €5.5 billion ($5.25 billion/£4.13 billion) year-on-year.

The SPA has invited each state to send a representative to the meeting, to discuss up to three topics relevant to the creation of a national betting system.

The regulator believes a national betting system in Brazil would improve cooperation between the federal and state governments by strengthening ties and improving the application of betting laws and regulations in Brazil’s newly regulated online betting market.

As outlined by the SPA, the national betting system would provide clarity on federal rules and discuss good practices and minimum standards for responsible gambling, as well as improved methods of countering money laundering and match-fixing.

SPA public consultation comes to an end

Last Thursday (27 March), the SPA closed its public consultation for industry feedback on its 2025-2026 regulatory agenda.

The SPA is expecting to publish its full agenda on Friday, with the establishment of a national betting system to feature as the eighth project on the list.

SPA leader Regis Dudena previously said regulation in Brazil should be in a state of constant assessment and improvement.

“We have created a framework of main rules which is quite complete and essential for the start of the regulated fixed-odds betting market, but regulation is a cycle; there are always points to be reviewed and improved,” Dudena said while announcing the public consultation in February.

“We are observing the practical effects of the rules we have created on a daily basis so that we can understand what needs to be improved.”

Could a national betting system smooth state/federal relations?

An ongoing sideshow to the launch of the legal online betting market in Brazil has been constant disputes between the federal government and state and municipal lotteries.

The most notable case has involved the Rio de Janeiro State Lottery (Loterj), which received a huge blow last month as the Federal Supreme Court (STF) voted to uphold a decision restricting Loterj’s attempts to license operators nationwide.

The STF upheld minister André Mendonça’s preliminary decision from early January that restricted Loterj licensees to offering bets within Rio de Janeiro state borders, while also making geolocation tracking to ensure compliance mandatory.

This month, the Solidarity party called for lotteries at the municipal level to be suspended until the STF makes a final ruling on whether they breach Brazil’s constitution.

However, last week the STF decided not to halt municipal lottery operations, although the Solidarity party was asked to provide information to back up its claims.

Additionally, the attorney general’s office was asked to weigh in on the matter, ahead of the STF making a final ruling.  

The Solidarity party alleged municipal lotteries were fostering a “truly chaotic scenario”, in which jurisdictions have circumvented federal Brazil betting regulations to allow companies not licensed by the federal government to operate within municipalities.

This, the Solidary party claims, is causing financial instability for the newly regulated federal betting market, while also risking the safety of players.

Marques has opted not to suspend municipal lottery operations, although he has called for the Solidarity party to provide further information backing up its claims within 10 days. He has also called for the attorney general’s office to weigh in on the matter, ahead of a final ruling.

“Given the relevance of the matter and its impact on the social order and legal certainty, it is necessary to provide the opinion of the authorities involved.”

He said this would influence his final judgment and ensure it is without prejudice.

STF to make final ruling on Brazil municipal lotteries

Municipal lottery operations will be allowed to continue until the STF makes a final ruling on their constitutionality.

Brazil has 26 states and over 5,500 municipalities, some of which are looking to implement their own laws to establish lotteries and generate regional revenue.

One particularly notable case is Bodó, a municipality which has a population of barely more than 2,000 and has issued numerous licences to operators.

Each municipal licence in Bodó costs just BRL5,000 (£670.29/€796.81/$867.70) to obtain, while a federal online betting licence fee is BRL30 million.

Bodó has consistently ignored threats from the federal government to halt licensing efforts and allow licensees to operate across Brazil.

A similar STF case relating to the Rio de Janeiro State Lottery (Loterj) has been ongoing for a few months. Various entities, including the federal government and attorney general, have insisted that Lotterj prohibits its licensees from operating outside of the state.

In its latest ruling on the case, in February, the STF voted to uphold a preliminary injunction, which banned Loterj from allowing its licensees to operate nationwide. It required Loterj operators to adopt geolocation blocking software to ensure players can’t access sites outside of the state.

It is also some way ahead of initial guidance stated at this point last year, when Zeal hoped to report between €140 million and €150 million in revenue. In addition, it surpasses restated guidance from throughout 2024.

Lotteries lead the way for Zeal

The main reason for this increase, Zeal said, was due to growth within its lotteries division. In total, lotteries revenue for the year reached €168.3 million, an increase of 59.3% from the previous year.

Taking a closer look at the lotteries division, Zeal said it was helped by a “positive” jackpot situation. The Eurojackpot reached the maximum amount for 13 draws in 2024. Zeal also launched its new “Traumhausverlosung” draw, offering players the chance to win their dream house.

Coupled with increased marketing measures, this pushed the average number of active customers up 25% to 1.4 million.

Average revenue from lotteries per active customer per month jumped 27.2%. Players won a total of €876.8 million from lotteries in 2024.

At the same time, billings from lotteries hit €1.08 billion, up 28% and the first time that the total has exceeded the €1 billion mark. Billings comprise all stakes, including brokerage stakes and associated VAT, net of bets.

Online gaming growth continues in 2024

Zeal’s other core business area, online games, launched in Germany in June 2023, through its Lotto24 B2C subsidiary and sister brand Tipp24.

The first full year of operation during 2024 saw revenue reach €9.9 million, an increase of 224.1%. This rise, however, is no great surprise seeing as the launch only took place halfway through the previous year.

Monthly active users were higher year-on-year during each quarter of 2024, as was average revenue per active customer per month. Players won €28.7 million, while games billings for the year topped €133.1 million, up 220%.

Zeal spends money to make money

In terms of spending, operating costs were 53.3% higher than the previous year at €129.4 million. Zeal spent more across all areas during the year, with the main outgoing being marketing at €56.9 million, up 58%.

However, as noted by Zeal, increased marketing played a major part in growing revenue. Zeal added that this also helped it draw a record 1.3 million new customers throughout 2024 – more than double the previous year’s total.

Even after accounting for these higher operating expenses EBITDA for the year topped €61.9 million. This surpasses the previous year by 88% and is a new, annual record for the group.

Amortisation and depreciation costs were €8.2 million, while after also including interest expenses, pre-tax profit was €50.3 million, up 125.3% year-on-year.

After tax, Zeal was left with a net profit of €59.4 million, a 333.2% increase from 2023.

Zeal a ‘pioneer’, says outgoing CEO Becker

Commenting on the full-year results, CEO Helmut Becker was full of praise. Incidentally, the results have been published just two days after it was announced that Becker will stand down as CEO.

Becker will not extend his current contract after 10 years as CEO. This is due to conclude on 31 January next year, when he will officially depart the business.

“In our anniversary year 2024, we achieved a record triple in our business development in terms of new customers, revenue and EBITD,” Becker said.

“In addition to the biggest growth in our core business since the company was founded, we have established ourselves as a pioneer in the German market with the launch of our Traumhausverlosung.”

What can we expect from Zeal in 2025?

Looking to the current year, Zeal sets out certain expectations for the business in terms of both revenue and EBITDA.

Starting with revenue, guidance from Zeal places this at between €195 million and €205 million for 2025. The midpoint of this – €200 million – would surpass the 2024 total by 6.3%.

As for EBITDA, Zeal said this will likely reach between €55 million and €60 million. Based on a midpoint of €57.5 million, however, this would fall 7.1% short of 2024.

Zeal also noted that it intends to expand its marketing in Germany during 2025 by between €60 million and €70 million.

Online drives gambling revenue growth

Growth was evident across online and land-based gambling activities, but the former saw the steepest increase in GGR. In total, provisional online GGR climbed 11.7% year-on-year to €47.9 billion, or 39% of total GGR for the year.

Gaming accounted for €24.6 billion of this figure, with €23.2 billion attributed to casino-type games, including slots. In total, online casino games drew 45% of all internet gambling GGR during 2024.

Online betting revenue topped €16.2 billion, of which €13.7 billion – 29% of all online GGR – came from sports and events betting. Internet lottery accounted for the remaining €7.1 billion in online GGR.

As to how people were playing, 58% of online GGR was drawn from gambling on mobile and 42% desktop.

Land-based revenue edges up 1.3%

Turning to the land-based market, revenue here increased 1.3% to €75.5 billion. This shows that despite the ongoing explosion of online gambling, land-based remains the main source (61%) of GGR in Europe.

Gaming was also the most popular form of land-based activity, but not to the same extent as in the online market. Land-based gaming GGR hit €35 billion, which is slightly lower than the previous year. Gaming machines accounted for €24.9 billion of this, with casinos at €8.5 billion and bingo €1.6 billion.

However, as a single activity, lottery led the way with €30.9 billion in GGR, or 41% of all land-based revenue. Incidentally, gaming machines were second on 33%, then casino at 11%.

Betting also generated €9.6 billion, with this split €6.4 billion for sports and events betting and €3.2 billion horse racing.

“Distinct” differences in product types

These breakdowns, EGBA and H2 say, show “distinct” differences in product types across the online and land-based markets.

While lottery was the leader in land-based gambling, it ranked only third in the online sector. However, when it came to casino, it was far and away the most popular form of gambling online, whereas it placed third in the land-based segment.

Sport and events betting was also far more popular online than in retail. However, betting on racing was more popular at physical betting shops than over the internet.

Bingo was split evenly across the two markets, whereas poker was solely online and gaming machines land-based only.

UK leads the way in online gambling

Breaking down the figure geographically, the UK is the leader in terms of total GGR. The report presented the performance of European markets in 2023, as 2024 figures are provisional and still subject to change.

During 2023, the UK drew €30.8 billion in GGR. Italy followed with €25.5 billion, then France on €17.8 billion and Germany with €17.7 billion.

The UK also led the way by some distance in terms of online gambling. GGR for this segment during 2023 topped €11.1 billion in the UK, with Italy the closest challenger on €4.6 billion, ahead of France with €3.8 billion.

As for land-based performance, Italy just pipped the UK to post the most revenue in 2023. Germany and France were almost neck-and-neck for third place, with Spain coming in fifth.

In terms of product type, the new report features a breakdown of online gambling across all featured nations. Casino games dominate in several countries, accounting for over 60% of all online revenue in Malta, Estonia and Latvia.

“The relative strength of betting and casino products is heavily influenced by local regulatory frameworks and player preferences,” the report notes.

Where is the European gambling market heading?

Looking ahead, the report maps out forecasts for 2025 through to 2029.

Europe’s market is expected to grow 3.5% year-on-year to €127.7 billion in 2025. This will likely be driven by a rise in online gambling GGR to €51.1 billion, meaning it will account for 40% of the whole market for the first time. Land-based gambling is also expected to see a modest increase.

Looking further ahead, based on similar growth patterns, GGR for the entire market could hit €149.2 billion by 2029. Online revenue is set to represent 45% of all GGR by this point, with land-based share slipping to 55%.

Gaming will likely be the main reason for growth in online gambling, with GGR set to reach €22 billion by 2029. Betting GGR is forecast to hit €34.5 billon and lottery €10.4 billion.

As for land-based activity, gaming will also lead the way and potentially reach €38.3 billion by the same point. Lottery is expected to amount to €33.5 billion and betting €10.5 billion.

“Europe’s gambling market showed steady growth in 2024,” EGBA secretary general Maarten Haijer said. “While land-based gambling remains dominant and continues to grow in absolute terms, online channels are showing stronger momentum, driven by changing consumer preferences and technological advancement.

“Looking ahead to 2025, we expect online gambling to cross the significant 40% market share milestone, with this trend projected to continue in the coming years as online gambling is expected to approach parity with land-based gambling by 2029.”

Confirming the news yesterday (24 March), Zeal said Becker has decided to “pursue his own entrepreneurial activities”. He exits the business after more than 12 years with the operator.

During his time at the helm, Becker oversaw several key developments at Zeal. These include the acquisition of Lotto24, the return of Zeal to Germany and the expansion of the portfolio to include Freiheit+, Games and Traumhausverlosung.

Prior to taking on the top job at Zeal in September 2015, Becker spent two years as its chief marketing officer. He also had a spell on the company’s supervisory board.

Before joining Zeal, Becker worked as chief commercial officer at recruitment company and job search specialist Xing AG. He also had spells in various management positions at eBay Germany.

Becker: Zeal in an excellent position for growth

Commenting on his upcoming departure, Zeal said exiting the business had been a “difficult” decision. However, he maintains that he will be leaving the company in a strong position.

“Zeal is in an excellent position to continue to grow in the future,” Becker said. “After almost 10 years as CEO, I have decided that now is the right time to pursue my own entrepreneurial endeavours.

“This has been a difficult decision for me. I will especially miss our exceptionally strong team and the unique culture we have built together, characterised by innovation, customer focus and team spirit. I will continue to work hard until the end of my term to achieve the goals we have set together.”

Supervisory board chairman Peter Steiner paid tribute to the outgoing Becker. He said: “Helmut Becker has played a decisive role in taking Zeal’s business development to a new level. Under his leadership, Zeal has established itself as a market leader in the online lottery market, significantly expanded its customer base and crucially broadened its offering through innovative product development.

“On behalf of the supervisory board, I’d like to thank him for his outstanding commitment and strategic vision. We wish him all the best for his personal life and professional career.”

Zeal will immediately initiate a structured process to source Becker’s successor. The group is also due to publish its 2024 financial year results today (25 March).

At present, Veikkaus holds a monopoly on online gambling, across lottery and online sports betting and casino games. Should the bill pass in its current form, this setup would stop by the end of 2026. Veikkaus will, however, keep exclusivity for lottery and scratchcards, as well as retail gaming machines and casino games.

Previous guidelines have said operators could apply for licences from 1 January 2026, when the new regulations officially come into effect. This would be with the view of the new-look market opening one year at the start of 2027. But some stakeholders have suggested the launch could happen earlier, thanks to the bill progressing to parliament quite quickly.

The government maintains that the reform would help reduce gambling harm in Finland. It said by allowing more approved operators to enter a wider market, this would reduce the number of consumers accessing illegal sites that do not offer the same protection measures as licensed providers.

“The aim of the bill has been to find a regulatory solution in which the regulation combating gambling harms would be balanced with the fact that gambling companies want to apply for a licence and that online gambling would be directed to a regulated gaming offering,” minister of the interior Mari Rantanen said, upon introducing the bill to parliament.

Could the reform bill be passed by June?

The bill will now be forwarded to subcommittees in parliament for further reviews. While this is likely to see some modifications, these are not expected to slow progress by much.

In January, Mika Kuismanen, CEO of Rahapeliala Ry, said he believed the law could be approved by the end of June. This would mean a fairly quick turnaround in parliament.

However, local gaming lawyer Antti Koivula believes it will more likely be towards the autumn when parliament takes a vote on the bill.

“Minor modifications are expected before the parliament votes on its approval, likely in autumn 2025,” Koivula said on LinkedIn. “With broad political consensus on the need for reform, the vote is expected to be a formality.

“This marks a significant milestone for Finland’s igaming industry. The proposed legislation aims to dismantle the longstanding gambling monopoly and open the market for competition – bringing Finland in line with broader European market practices.”

What else will change in Finland?

As for other measures set out in the bill, these include allowing commercial operators to begin taking bets on horse racing. Previously, this was only permitted through Veikkaus as part of its monopoly arrangement.

The legal age of gambling would remain at 18, while all players would need to provide some form of identification to play. Consumers would also be able to self-exclude from all legal operators under a new scheme.

On the subject of gambling harms, operators would be required to monitor players for any concerning behaviour. In addition, licensees would need to put in place measures to prevent abuses and crimes related to gambling activities.

A new Licensing and Supervision Authority, which has also been proposed to parliament, would oversee the regulated market.

In terms of marketing, this would be allowed subject to restrictions set out in the bill. These include not targeting minors or otherwise vulnerable people with advertising, nor featuring minors in any marketing materials.

OPAP reported growth in four of its five core segments, including double-digit increases in betting and igaming revenue. Lottery, still the group’s primary source of revenue, and video lottery terminals (VLTs) also saw growth, but instant and passives revenue declined.

The online segment stole the show, posting a 29.2% increase in revenue for 2024. The division is now on track to surpass VLTs as OPAP’s third-largest revenue stream. However, there was also a lot to be said for sports betting, with revenue here up 15.6% year-on-year.

OPAP CEO Jan Karas highlighted the two segments during his analysis of the full-year data. He said both igaming and lottery growth contributed to an “outstanding” year for the group.

“Our outstanding performance in 2024 was mainly driven by robust growth in sports betting and our igaming offering,” Karas said. “It was also a remarkable year for Tzoker accompanied by the contribution of the newly launched Eurojackpot.

“In addition, our online activities reached new highs, accounting for 32% of the group’s GGR. Our ilottery proposition also continued gaining momentum.”

Igaming revenue tops €325.3 million at OPAP in 2024

Breaking down each segment, and starting with igaming, revenue here amounted to €325.3 million in 2024. This is comfortably ahead of the €251.8 million posted in the previous year and amounts to 14.2% of total GGR. OPAP said this was helped by strong demand among both new and existing players.

As for sports betting, revenue topped €746.2 million, ahead of €645.5 million in 2023. It is also the second-highest revenue stream for OPAP, accounting for 32.5% of annual GGR. Interestingly, of this total, 56.7% came from retail betting and 43.3% online wagering.

Looking to OPAP’s other segments, lottery continues to lead the way in terms of revenue share, generating €774.8 million in total. This is 6.1% more than in 2023 and represents 33.7% of all revenue posted during 2024.

Elsewhere, VLT revenue edged up 0.1% year-on-year to €344.7 million. However, instant and passives revenue dipped 9.3% to €105.1 million, as players appeared to favour other forms of gambling.

Net profit rises 20.7% in 2024

Looking now towards the bottom line for the year, operating expenses were higher almost across the board. However, such was the impact of revenue growth that EBITDA climbed 14% to €832 million.

After depreciation and amortisation, as well as impairment charges, operating profit hit €687 million, a rise of 16.4%. Meanwhile, after deducting finance costs, pre-tax profit totalled €677.8 million, up 18.9%.

OPAP paid €178 million in income tax and discounted €14 million in profit from non-controlling interests. As such, the group ended the year with a bottom-line net profit of €499.7 million, up 20.7% year-on-year.

What about Q4 at OPAP?

As for how OPAP performed in the final quarter of 2024, GGR for the three-month period was €647.8 million, a rise of 11.5%. Again, this was driven by growth in igaming and sports betting, although it was the latter that was the star of the show in Q4 with 26.6% growth compared to igaming on 20.9%.

Other key figures for Q4 include net gaming revenue rising by 11% to €443.1 million and EBITDA increasing 16.6% to €245.1 million. The latter was helped by a slight decrease in operating expenses.

As for net profit, the total before deducting profit from non-controlling interests was €143.5 million, up 30.8%. OPAP did not publish information for net profit after taking off such non-controlling contributions.

“Going forward, always having customers in our mind, we are consistently focusing on providing exciting and innovative experiences in a seamless way across retail and online, leveraging technology to stay ahead of the game,” Karas said.

“This way, we are confident that will meet our goals of maintaining steady growth and profitability, rewarding our shareholders and meeting our sustainability and social responsibility commitments.”

While overall revenue hit an all-time high, data published yesterday (18 March) by regulator Serviço de Regulação e Inspeção de Jogos (SRIJ) also reveals record performances across both the sports betting and online casino segments.

Casino generated the most revenue, but sports betting stole the show in Q4 with revenue rocketing year-on-year.

Sports betting revenue almost doubles in Q4

Taking a closer look at sports betting, revenue here hit €138.3 million, a year-on-year rise of 90%. This also comfortably beats the €91.2 million reported in Q3 by 51.7%.

The increase comes despite player spending remaining level. Consumers bet €533.7 million during Q4, compared to €532.1 million in the previous year. This was, however, some way ahead of €483.4 million in Q3.

Of this, 75% was spent betting on football. A further 10.5% was wagered on tennis, 10.2% on basketball and 4.3% other sports.

Online casino revenue up 19.5%

Turning to online casino, revenue here reached €184.6 million. Another new record, this is 19.5% higher than Q4 of 2023 and 5.5% ahead of Q3.

Total spending on online casino hit €5.15 billion in the quarter, up 21.1% from the previous year and 5.6% more than Q3.

Again, online slots proved the most popular with players, drawing 80.2% of all wagers. The next most popular was dice game French bank with a 5.4% share, then French roulette at 5.3% and blackjack 4.8%.

Total active players in Portugal tops 4.7 million

Alongside financial data, the SRIJ also published information about player behaviour. In total, 4.7 million people gambled online at some point during the fourth quarter, up 15% year-on-year.

Some 614,800 new registrations were reported during the period, a 15% increase on 2023. The majority of these were aged between 18 and 24, although the most popular age group for online gambling remains 25 to 34.

As for self-exclusion, 16,200 opted out of online gambling in Q4. This meant that by the end of the quarter, a total of 292,400 people in Portugal have self-excluded.

In addition, the regulator issued 41 closure notifications to websites deemed to be operating in breach of regulations.

Mixed news from the land-based sector

In terms of land-based gambling, gross revenue climbed 12.5% year-on-year to €72.6 million. This, however, falls 4.3% short of the total for Q3.

Slot machines generated €53.9 million of all revenue in Q4, an increase of 4.8% from last year. All other revenue – €18.8 million, up 36.9% – was split across casino-style and bingo games.

American roulette drew the most revenue in this latter category at €6.9 million, although all areas within this market saw year-on-year growth.

Teun Struycken, minister for legal protection in the Netherlands, revealed in December that the government was working on new policy, with hopes of having a new gambling bill in place by the end of 2025.

In their submission, the industry trade bodies VNLOK and NOGA set out several key points for the government to consider before signing off on new laws. Much of these focus on protecting players from harm and on tackling unlicensed activity.

Advertising must remain for legal operators

Among the recommendations was a request for the government to reject any plans for a complete ban on gambling advertising. Struycken has already said advertising rules will be put in place to “severely limit” the appeal of online gambling.

The Netherlands already has a ban in place for most forms of advertising, with this effective since mid-2023. However, research from KSA has found that since this was introduced, there has been a decline – between 50% and 75% – in the number of monthly visits to legal sites,

As such, VNLOK and NOGA are urging “sufficient” advertising opportunities for licensees to help players to distinguish between legal and illegal operators.

“Players must know where they can find legal offers to prevent further growth of illegality,” VNLOK and NOGA said. “Legal providers must be able to advertise in a targeted and responsible manner.”

Also on the subject of advertising, VNLOK and NOGA are urging the government to expand regulations to cover social media. The organisation is keen for the KSA to have increased power to take action against sites that illegally target players on social media platforms.

In addition, the bodies want to make it possible for licensees to access the Cruks self-exclusion scheme to ensure players who have registered do not receive any gambling advertising.

Calls for more effective use of Cruks

Also in relation to Cruks, the organisations made several recommendations to improve the current setup. While they recognise Cruks has proven successful since its introduction when the legal market opened in 2021, they believe there is room for improvement.

VNLOK and NOGA said new policy should set out the need for operators to provide aftercare to players who return to gambling after a Cruks exclusion. This will ensure more responsible play in the long term.

Operators should also be offering more assistance for users to sign up to Cruks, according to VNLOK and NOGA, to help them access help. This includes highlighting to players how Cruks only halts access to legal sites and that other blocking methods are required to extend this to sites without a licence.

Stopping the illegal supply of gambling

Leading on from this, VNLOK and NOGA set out additional steps to help tackle illegal operators active in the Netherlands. Again, these include increasing the powers available to the regulator.

“KSA must take tougher action against parties that promote illegal supply, such as banks, advertising platforms and suppliers of gambling games and live casinos,” VNLOK and NOGA said. “The current powers of KSA must be expanded to make the approach to illegality more effective.”

On this, the organisations are calling for the government to set up a new task force focused on illegal gambling. This will include drawing up an action plan on how to best tackle the current situation.

Second, they are urging a rethink of the planned increase in gambling tax. Confirmed last September, this is set to be introduced on a phased basis, despite warnings from several sectors as to how such a move could impact the legal market.

In addition, both VNLOK and NOGA are calling for more research into the proposal to raise the minimum betting age to 21. The proposal, set out by Struycken, would apply to “risky” games such as online slots.

The organisations are keen for the government to investigate the expected effectiveness and possible undesirable side effects of this measure. This should also include the experiences of minors, a group the bodies say has been unfairly ignored in recent years.

VNLOK chairwoman Helma Lodders will present the organisations’ recommendations at the roundtable tomorrow.

First in the Weekend Report, the FanDuel TV division of FanDuel Group has announced the launch of a responsible gambling series, ‘The Comeback’.

Responsible gambling ambassador Craig Carton, who has been very public describing his own past addiction issues, will interview people who have experienced addiction themselves. Carton will cover stigma surrounding gambling disorder and highlight the support available to people.

The first episode will feature 11-year NBA veteran and recovered problem gambler Randy Livingston. Both Livingston and his wife have recently joined FanDuel as responsible gambling ambassadors.

The Comeback will be streamed across both FanDuel’s YouTube channel and FanDuel TV Extra. “Our hope for The Comeback is to raise awareness of problem gambling and foster open dialogue to tackle the stigma that still exists today,” said Cory Fox, FanDuel’s senior vice president of public policy and sustainability.

Bet365 goes live in Illinois and Tennessee

Bet365 has announced the launch of its online sportsbook in Illinois and Tennessee.

The operator is now live in Illinois, according to Covers.com, and is already taking bets across a range of sports. It joins other major brands such as DraftKings, FanDuel, BetMGM and Fanatics in the state.

Meanwhile, Bet365 has also rolled out its sportsbook in Tennessee. Action Network reports that the brand went live yesterday (16 March), bringing the total number of operators live in the state to 12.

The Bet365 sportsbook app is now available in 13 states. The other eleven are New Jersey, Arizona, Iowa, Colorado, Kentucky, North Carolina, Ohio, Louisiana, Pennsylvania, Indiana and Virginia.

BetMakers extends with UK Tote Group

BetMakers Technology Group has extended a partnership with UK Tote Group.

Under the deal, announced today (17 March), BetMakers Quantum software will be the core pools wagering platform for the Tote’s operations across British and Irish racecourses. It will also manage the technical aspect of any inbound commingling to these pools.

The agreement contains a mixture of variable revenue and fixed fees. BetMakers expects to generate approximately AU$4.0 million (£2.0 million/€2.3 million/US$2.5 million) each year of the deal, which runs until 30 June 2029.

UK Tote Group is the largest customer of BetMakers’ Global Tote division.

Pagcor pledges PHP300 million to police academy

Also, the Philippine Amusement and Gaming Corporation (Pagcor) has pledged PHP300 million in financial grants to the Philippine National Police Academy (PNPA).

Confirmed over the weekend, funds will be used to improve facilities and provide advanced training resources for cadets

Pagcor’s grant will also cover the construction of a PNPA Alumni Association building that will serve as an administrative office and a dormitory for visiting alumni. In addition, it will finance the upgrade of PNPA’s Crime Scene Plaza.

“We hope that these contributions will help facilitate mobility and enhance the learning of cadets and alumni members who are engaged in continuing education,” Pagcor chair and CEO Alejandro Tengco said.

Scientific Games secures World Lottery Association re-certification

And finally, Scientific Games has secured re-certification for the World Lottery Association (WLA) Responsible Gaming Framework Certificate of Alignment.

The assessment indicates the company meets and exceeds the minimum WLA Responsible Gaming certification requirements. It covers Scientific Games’ operations and technology in 50 countries around the world.

The responsible gaming certification framework includes research, employee programmes, product and service development, remote wagering channels, advertising and marketing communications, client awareness, stakeholder engagement and reporting.

Scientific Games works with 150 lotteries across five continents.

The Solidarity party claims municipal lotteries are creating a “truly chaotic scenario”, with jurisdictions such as Bodó flouting federal laws by allowing companies that haven’t achieved federal authorisation to operate within municipalities, largely without the same level of player protection measures and tax contributions as the federal regulator.

Within the 26 states in Brazil, there are over 5,500 municipalities, with some of those seeking to create their own laws establishing lotteries and generating revenue.

For instance Bodó, a municipality with a population barely exceeding 2,000, has become a point of national interest after it issued a number of licences to operators, with each costing just BRL5,000 (£670.29/€796.81/$867.70), in stark comparison to the BRL30 million that is being charged by the state for a national licence.

The Solidarity party’s lawsuit warns municipal lotteries throw the financial stability of the newly regulated Brazil betting market into doubt, as well as risking the safety of players due to the differing levels of player protection measures from each municipality.

As a result, the case calls for the laws governing municipal lotteries to be suspended and the regulations enforced by these entities to be deemed unconstitutional. The regions named in the act have been asked to share information on their future strategies.

Municipal lotteries under the spotlight after Loterj decision

This is the latest strike against regional lotteries, as Rio de Janeiro’s Lotterj has been embroiled in a heated legal battle against the federal government for months.

Loterj has long protested its state licence should allow brands to operate beyond Rio de Janeiro state borders and throughout Brazil.

However, Loterj’s hopes were dealt a potentially fatal blow in February when the STF voted to uphold the preliminary injunction handed down by minister André Mendonça in early January, which prohibited Loterj’s nationwide activities and mandated geolocation tracking to ensure its licensees were only active within the state of Rio de Janeiro.

Daniel Romanowski, president of the state lottery in Paraná, previously warned the next step in the discussion would likely address the other municipal lotteries and their licensing capabilities in Brazil.

Romanowski predicted municipalities would suffer the same outcome as state lotteries, with their activities restricted to within their own borders.

Newly regulated Brazil federal market

The legal Brazil online betting market launched on 1 January and is expected to become one of the top three gambling markets in the world.

The sector faced a lot of opposition over the second half of 2024, though, including the Solidarity party filing a separate lawsuit with the STF calling for federal betting laws to be deemed unconstitutional.

Combined with another ADI (Ação Direta de Inconstitucionalidade) from the National Confederation of Trade in Goods, Services and Tourism (CNC), Brazil’s third biggest trade union, the STF held a two-day hearing to investigate the effects of betting in Brazil and whether the betting laws breach Brazil’s constitution.

The result of that hearing will be confirmed in H1 2025, although the industry consensus is that the horse has bolted and there is little chance of the betting laws being scrapped.

The discourse over non-federal licensing looks set to rumble on, however, with Bodó seemingly ignoring both the legal uncertainty caused by the Loterj ruling and threats from the federal government to ban the municipality’s activities.

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Total revenue excluding its UK, North America, technology and content segments was up 8% to €4.6 billion, while GGR also increased 8% year-on-year to €4.4 billion.

While Allwyn said growth was apparent across several areas, it highlighted its digital segment as the key driver in 2024. Revenue from this area of the business was up 20% and it represented 39% of group GGR for the year.

As for group net revenue, this was 11% higher year-on-year at €4 billion.

Allwyn CEO Robert Chvatal said that during the period Allwyn had moved to a new incentive and profitability mechanism in the UK, associated with the start of its national lottery licence in February 2024. This reflected lower profitability in the market.

The group said adjusted EBITDA increased 4% in 2024 to €1.55 billion, with a lower profit margin of 38.6%, compared to 41.2% in 2023. Excluding the UK, North America, and tech and content, adjusted EBITDA was €1.45 billion, up 11% on 2023.

“[This] was another year of record financial performance and strategic progress,” Chvatal said in the operator’s earnings report.

“We delivered good growth in profitability in 2024,” Chvatal said, “This performance was achieved despite the move to a new incentive and profitability mechanism in the United Kingdom, following the start of the new licence in February.”

The group is due to publish its 2024 results in full on 21 March.

Lottery updates hindering UK profit?

The company closed the year with €255.8 million in capex, an increase of 151% from 2023, to support its investment in transforming the National Lottery, it said.

After securing the licence, Allwyn operated the previous systems put in place by former UK lottery licence holder Camelot UK Lotteries after it acquired the business in February 2023.

Reports in November suggested the company was facing delays in its updating the technology needed to operate the National Lottery.

But Allwyn told iGB at the time it had made “significant progress” in transforming the National Lottery.

“We’ve started overhauling our 40,000-strong National Lottery retail estate, launched a number of new campaigns and products – including Paris 2024, Lotto and Set For Life campaigns – and introduced a number of new player protection measures, including our pioneering new scratchcard purchase limit,” the spokesperson said.

What about Q4 at Allwyn?

The trading update also included certain figures for Q4. Total revenue came in at €2.4 billion and GGR hit €2.3 billion, 10% higher than the previous year. Net revenue also rose 12% to €1.12 billion.

As for adjusted EBITDA, this increased 12% to €437 million, with a profit margin of 39.1%.

Without the UK and US, total revenue rose 11% to €1.28 billion and net revenue 9% to €807.1 million. Adjusted EBITDA with the same exclusions increased by 16% to €397.3 million.

Impact of other acquisitions

On the subject of acquisitions, Chvatal also referenced several other recent deals and their expected impact.

In September, the group completed a planned investment in a 70% interest in Instant Win Gaming. Following this, it took a 51% majority stake in Logflex MT Holding, the owner of Novibet, in December.

“Both transactions are in line with our strategy of making selective acquisitions in relevant products, technologies and content to support our future growth,” Chvatal said, reiterating similar comments he made after the Logflex deal was announced.

“The new year has started well. Allwyn is well positioned for 2025 and for the next chapters of its growth story.”

This was the first full year for earnings including the recently absorbed Kindred business, which FDJ acquired last year. The €2.45 billion deal was completed in October. Kindred’s performance is not broken down as a separate business unit within the results.

FDJ noted that increased taxes in France resulted in it paying €45 million in tax revenue for the year. It said the impact of higher taxes will increase in the coming years, with its tax contribution expected to hit €100 million in its 2027 financial year. Over half of this will relate to its online betting and gaming business which comprises Kindred.

This year the company will see its French tax bill hit almost €45 million and its Netherlands contribution come to €10 million. This will impact its overall group revenue which is targeted at €3.8 billion in 2025, with a recurring EBITDA margin of over 24%.

In France, operators are due to pay higher tax rates that will come into force in July, including increased social security contributions. These were set out in a finance bill included in France’s 2025 budget.

France’s gambling tax rates are based on GGR and differ between verticals. Operators then pay a separate social security contribution, which will increase across all verticals.

Breaking down the business segments

Revenue for the French lottery and retail sports betting business totalled €2.5 billion during the period, an increase of 5.8%.

This was further broken down by lottery (€2.05 billion) and retail sports betting (€453 million). This segment benefitted from various big sports events during the year, including the UEFA Euros tournament during the summer.

The group provided a revenue guidance for 2025 of €3.6 billion. However, it said it expects the coming year will be impacted by increased taxes and tightened regulation in the Netherlands and UK&I markets.

Online betting and gaming net revenue hit €1.03 billion. Casino gaming represented 51% of that total and sports betting 41%.

Meanwhile, international lottery revenue was €190.5 million and the Nivio payments business recorded revenue of €64.4 million during the year. Nivio provides an app where users can pay for utilities, tax bills, tolls and other services.

FDJ benefitted last year from a cost-cutting programme initiated at the end of 2023. This included its withdrawal from the North American market This business unit’s recurring EBITDA stood at €293.2 million, representing 28.5% of revenue.

FDJ reshuffles management and rebrands to reflect new business

The French operator unveiled a new management team and rebranding alongside its results.

This rebrand to FDJ United is meant to reflect the company’s international development. A statement released today said: “This new name reflects the group’s European scale while paying tribute to its roots, its history and what makes it unique. The new FDJ United name reaffirms the group’s historic name, FDJ, and combines it with United reflecting its international development.”

It added: “FDJ United is the group’s new corporate brand, with a new brand signature, ‘Playful. Play fair. Play forward’. The name covers all the group’s businesses across all the countries in which it operates.”

FDJ will remain the group’s trade name in France, however, due to its long and rich brand history in the country.

Alongside the rebrand the company announced a reshuffle of its executive committee. Kindred CEO Nils Andén was appointed as chief online betting and gaming officer for the wider group, while Patrick Buffard moved from his role as French lottery general manager to chief French lottery and retail sports betting officer.

FDJ CEO Stéphane Pallez, deputy CEO Charles Lantieri and CFO Pascal Chaffard remain in their current roles.

The group has also rearranged its business units. A French lottery and retail sports betting arm will oversee lottery games at points of sale and online and retail sports betting. Online betting and gaming will be responsible for sports and horse betting, poker and online casino gaming.

It attributed the operating profit decrease to its “significant investments” and an increased lottery tax of 12%, up from 5% the previous year. In total, the company paid €114.2 million in lottery tax to the Finnish state in 2024.

Gross gaming revenue was impacted by games requiring new certifications, as new rules around ticket-based and scratchcard games came into force in 2023 and 2024.

Roughly 60% of Veikkaus’ gross gaming revenue came from digital sources, while the remaining 39.8% consisted of physical point of sales.

Veikkaus said by the end of 2024 it had grown its “registered” customer base by 80,000 users in the 12-month period, which brought its total to 2.6 million.

Veikkaus has been in steady decline for years. In its H1 2023 earnings released on 2 September, group managing director Olli Sarekoski pointed to a lower-than-expected profit margin, while its group gaming revenue suffered a 21% drop from the previous year.

Stakeholders believe the operator’s consumers have become less loyal as the grey market in Finland has grown over the years.

Speaking to iGB in September, local lawyer Antii Koivula said the operator’s market share had eroded over time. “In 2021 it was estimated that Veikkaus had roughly a 30% market share in non-lottery categories which now go under the licensing system,” Koivula told iGB. “Since then, there’s been considerable decrease in these numbers.”

International business

Despite its B2C business suffering, Veikkaus celebrated its B2B subsidiary Fennica Gaming expanding into three new continents in 2024. The company provides online lotteries and slots operations in markets such as the US, France, UK and Sweden.

Veikkaus’ Fennica Gaming reported sales of €3 million, up 181% year-on-year.

However, the business unit, which was started in 2022, posted a loss of €8.6 million, an increase of 14% on the previous year.

Veikkaus said its international subsidiary had signed 14 corporate clients by the end of 2024.

Reforms inbound in Finland

Despite its disappointing results, Veikkaus is bullish on the upcoming reforms in Finland that will open the online gambling market to competitors in 2026 or early 2027.

The changes will see Veikkaus granted a licence to operate a separate business arm that will be in competition with private licensees.

However, Veikkaus will retain its retail slots and lottery arm exclusivity.

“The reform of the gambling system is a great opportunity for Veikkaus and we have done long-term work to prepare for the future,” Veikkaus CFO Regina Sippel said in a statement acompanying the results.

“In 2024, as planned, we implemented the Veikkaus strategy and invested in both business development and international growth. We want to continuously develop, driven by our new mission ‘We passionately drive better gaming.”

Veikkaus previously warned that up to 620 staff at the state monopoly gambling firm could be at risk of redundancy as a result of the reform actions.

The group continues to compete against offshore operators, it noted. It has estimated, using H2 Gambling Capital data, that domestic spend on illegal games was €550 million in 2024.

Jari Vähänen, partner at Finnish Gambling Consultants and ex-Veikkaus executive, said in a LinkedIn post today that the illegal market revenue in Finland could be closer to €900 million for 2024.

“This gives a very different estimate of market shares and the channelisation rate of the gambling system.”

Of Veikkaus’ performance, he said: “It is also interesting to see Fennica Gaming’s start. The company’s turnover rose to three million euros last year, but there was still quite a lot of loss – around €8.5 million. I hope my ex-colleagues succeed, but making big profits in that B2B business is challenging.”

Commenting on the data during the Betting and Gaming Council’s AGM on 27 February, Gambling Commission CEO Andrew Rhodes noted a significant rise in activity on free prize draws, which are not regulated under the Lotteries Act and therefore not featured in the data or even considered gambling by law.

“We’ve seen the growth of large-scale prize draws and that growth has been very significant,” Rhodes told BGC members.

“We’ve also seen society lottery sales go over the £1 billion mark for the first time.”

He noted that price draw products are experiencing a participation level that is much higher than that of other gambling products, or products regulated as gambling.

“It’s getting close to being on a par with betting in terms of participation, also in terms of the average spending,” Rhodes said.

On the value of the GSGB data, Rhodes said these surveys, which have been collecting data since 2023, provide an insight into which products consumers are engaging with.

“The frequency of the gambling survey for Great Britain allows us to see these movements with a much greater degree, a much greater frequency, than we did before,” he added.

There has been some back and forth within the industry over whether free prize draws, like those offered by Omaze and Raffle House, should be regulated by the Gambling Commission.

While those on the side of licensed lottery believe these products have an unfair advantage in not having to adhere to the same rules on funding charities, those on the free prize draw side believe their products are not as high-risk and therefore should not be considered gambling.

Lottery still king in the UK

Data for Q3, published yesterday (27 February), shows 20% of respondents only took part in lottery draws. This, which covers both the National Lottery and other licensed charity lottery draws, is also level with Q2. When removing lottery-only players, overall gambling participation was 28%, the same as in Q2.

Again, male players between the ages of 45 and 54 were the most active group during Q3. However, after removing lottery-only players, the largest group was male consumers aged 25 to 34.

Overall, women were more likely to have gambled. Some 56% of the total players active in the past four weeks were women, compared to 44% men.

National Lottery was the most popular form of gambling by some distance at 31%, ahead of charity lottery at 16%. Next came scratchcards at 22%, then sports betting at 10% and online instant win games with 7%.

Non-lottery online gambling down in Q3

As for how people gambled, the percentage who played online was 38%. This is marginally ahead of 37% in the preceding period.

Again, however, this figure drops to 15% when removing all lottery-only players. The GSGB described this as a “significant decline” from the 17% reported in wave two, covering the Q2 period.

In terms of in-person activity, participation rate was down from 29% in wave two to 28%. After removing all lottery-only players, the rate stood at 18%, which is level with wave two.

Players continue to chase big wins

Looking at why people gamble, the main reasons remain very much the same among active players.

Of those who gambled in the past four weeks, the most popular reason for doing so was for the “chance to win big money”. Others also said they gambled because they see it as “fun”.  

The next quarterly publication – wave four covering the three months to December – will be released on 22 May.

While a number of state lotteries have approved betting operators to do business within the state, Loterj was the only one to offer nationwide licences. It claimed Accreditation Notice 01/2023 allowed its licensees to operate public lottery services throughout Brazil.

However, its hopes of being able to do so took a dent when Mendonça passed a preliminary injunction on 2 January to ban Loterj’s nationwide activities. This injunction also mandated geolocation tracking to ensure licensees were only offering bets within Rio de Janeiro state borders.

Mendonça’s ruling was to be voted upon in a virtual session of the STF plenary. Though the session was briefly halted after minister Dias Toffoli requested a review, the STF has now achieved a majority of seven votes after ministers such as Flavio Dino, Gilmar Mendes and Toffoli himself sided with the federal government.

With Mendonça’s injunction maintained, Loterj licensees will only be authorised to offer bets within Rio de Janeiro, with geolocation tracking in place to ensure compliance with those restrictions.

Is the Loterj/federal government battle finally over?

The new vote from the STF looks to have finally put an end to Loterj’s claims that its Accreditation Notice 01/2023 allows it to authorise brands nationwide.

Loterj itself appeared to have conceded defeat last week, publishing an ordinance to order its licensed brands to adhere to the requirements of Mendonça’s ruling. It previously filed appeals against those restrictions, all of which were rejected.

Daniel Romanowski, president of the state lottery in Paraná, told iGB on Thursday prior to the STF’s majority vote that he believed such an outcome would mean Loterj’s legal rebuttals would be “done”.

An end to Loterj’s federal licensing hopes

It’s certainly a big blow for Loterj, which had claimed in the past to have the “best cost-benefit” ratio for online betting licences.

A federal betting licence costs BRL30 million (£3.9 million/€4.7 million/$4.8 million) for a five-year term. Loterj authorisation for the same period is significantly lower at just BRL5 million. Additionally, federal licence holders are subject to a 12% tax on gross gaming revenue (GGR), much higher than the 5% rate applied to Loterj licensees.

Despite Loterj licensees previously being permitted to operate nationwide, specialist betting lawyer Udo Seckelmann of Bichara e Motta Advogados predicted the federal authorities would put an end to its plans.

“Before people came to me to be their lawyer and said, ‘I want to get a licence in Brazil’ and I’d say, ‘Okay, there’s a federal licence in which you can offer to the whole country. That’s the good way to go,’” Seckelmann told iGB. “And they said, ‘No, but I heard something about a state licence which would give me the same rights, and at the same time would be cheaper.’

“And I said, ‘Look, you are correct, but at the same time, we don’t know what’s going to happen in a few months or in a few years about this.’ So it’s a legal uncertainty.”

However, this is some way below Draftkings’ full-year adjusted EBITDA guidance of $240 million to $280 million, announced during its third quarter results.

The 2024 guidance was dropped due to a bad run of NFL results in October, as it had previously been set at a range of $460 million to $540 million.

Draftkings CFO Alan Ellingson, in a statement, called 2024 a “milestone year” for the group as it achieved its first year of positive adjusted earnings.

Draftkings’ fourth quarter

Turning to Q4, Draftkings reported a revenue of £1.39 billion during the period, up 13% on the previous year’s $1.23 billion. This revenue uptick was driven by “continued healthy customer engagement, efficient acquisition of new customers, the expansion of the sportsbook product offering into new jurisdictions, higher structural sportsbook hold percentage and the impact of the acquisition of Jackpocket,” the operator said. However, revenues in Q4 were partially offset by customer-friendly outcomes throughout the NFL season.

The company saw monthly unique players increase to 4.8 million in Q4, up 36% year-on-year, driven by acquisition and retention across its sportsbook and igaming products.

Average revenue per players was $97, down 16% year-on-year. Draftkings said the decrease was due to lower player revenue from Jackpocket customers when compared to its existing offerings. Customer-friendly sportsbook outcomes also impacted player returns.

Apparently, the day of the Tyson-Paul boxing match on 15 November was the company’s highest customer acquisition day in its history.

Draftkings also posted a daily record for sportsbook handle of $436 million, attributed to Super Bowl Sunday.

In Q4 period, adjusted EBITDA was $89.5 million, down 40% on the previous year’s $151 million, thanks largely to unfavourable NFL results.

Robins hails hold percentage increase

The group’s CEO and co-founder Jason Robins noted that the company “continued to efficiently acquire and engage customers, expand structural sportsbook hold percentage and optimise promotional reinvestment in fiscal year 2024.

“There are also many potential vectors that could even further accelerate our growth. Our structural sportsbook hold percentage is continuing to increase and the long-term ceiling could prove higher than we expect.”

Robins added that the online gaming legalisation in the US “appears inevitable” and that Draftkings was at the “epicentre” of a massive trend.

H1 2025 EBITDA forecast increased

Ellingson reaffirmed the EBITDA guidance for 2025 results would between $900 million and $1.0 billion. He also slightly increased the H1 2025 guidance to $6.45 billion, from $6.4 billion.

In a February letter to investors, Ellingson noted that the increase in EBITDA guidance was “primarily due” to expected returns from its investments in live betting, following the acquisition of Simplebet.

Draftkings bought in-play betting company Simplebet last year. That deal marked the company’s second major purchase of 2024, as it had also purchased digital lottery company Jackpocket in May.

Draftkings did not include year-to-date sports outcomes, such as the recent Super Bowl, in its guidance for 2025.

The company is also excluding Missouri regulating sports betting in 2025 from this forecast. This would likely impact earnings during the start-up phase. The state is aiming to launch regulated sports betting in June.

There is little information available beyond that. The attorney general is not permitted to publish the subpoenas. By West Virginia law, the AG cannot comment on them until he receives a response from one of the operators.

In a statement sent to Casino Reports last week, McCuskey all but confirmed that the subpoenas were indeed coming:

“We have serious concerns about West Virginia consumers, specifically our children, being targeted by illegal gambling operations,” McCuskey stated on 29 January. “From day one, my priority has been to protect consumers and ensure our children are not being exposed to these operations or their advertising – while at the same time supporting those which are licensed and operating within the confines of the law. At this time, we cannot comment on specific cases or provide any further details.”

SPGA response sweepstakes subpoeonas

It remains unknown which operators, or how many, received subpoenas. McCuskey has been in office as attorney general in West Virginia since 13 January.

The Social and Promotional Games Association (SPGA) did not confirm that any of its members had received subpoenas. The SPGA is a trade organisation representing numerous prominent social and sweepstakes gaming operators. It did issue a statement to Casino Reports on Friday morning.

Read the full story here.

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Loterj licensees are prohibited from accepting bets beyond Rio de Janeiro state borders. Geolocation tracking was brought in to ensure brands were adhering to the restrictions.

Whereas a federal betting licence costs BRL30 million (£3.9 million/€4.7 million/$4.8 million) for five years, Loterj authorisation for the same period is just BRL5 million. Additionally, the tax rate for federal licensees is 12% of gross gaming revenue (GGR), significantly higher than the 5% charged under a Loterj licence.

Loterj has since seen a number of appeals turned down, citing the presence of “defects, omissions, obscurities and material errors” in the ruling. It went on to claim the technology was not available to implement geolocation tracking.

However, the IBJR has asked to join the STF case as “amicus curiae”, translated from Latin as “friend of the court”, believing it has relevant information to offer the process.

The IBJR says Loterj licensees do in fact have access to geolocation tracking technology. The state regulator’s request for an 180-day extension to the initial five-day deadline to bring in the technology is unnecessary, it claims.

The STF has warned failure to comply will result in Loterj being fined BRL500,000 a day as long as the breaches continue.

Loterj president warns of “unfair competition”

The Loterj president Hazenclever Lopes Cançado has previously warned the STF’s ban throws the stability of the newly regulated Brazil online betting market into doubt.

“Legal uncertainty in Brazilian betting exposes legal weaknesses, unfair competition and bureaucracy that hinders the market and harms the economy,” Cançado wrote in an article for Migalhas.

“Unfair competition in the betting market in Brazil haunts entrepreneurship, weakens the national economy and has the support not only of informal [illegal] operators, but of the public administration itself, which systematically fosters legal uncertainty and, thus, encourages clandestinity.”

Loterj claims its licensees have paid over BRL100 million in taxes to the federal government, with these contributions risked by the STF’s ruling, while also warning the potential for companies based in tax havens to benefit.

Cançado explained: “The union itself, using creationism and its own wickedness, with the endorsement of the judiciary, provides a truly hostile environment for legalised bets, especially because it makes the rules stricter for those within the country, while countless players based in tax havens and in China, immune to Brazilian law, continue to operate without submitting to the same competitive conditions, operating freely in the country without collecting federal, state and municipal taxes, even representing tax evasion.”

This latest report, which cites findings from the Reasons for Gambling Questionnaire (RGQ), considers the relationship between different gambling activities and the players’ reason for engaging in them.

The RGQ contained a series of 15 questions on the reasons GSGB participants gave for taking part in gambling. People who had gambled in the past 12 months were asked to state how often their main reason for gambling was indeed their key motivator across all activities they had listed. They were given the option of selecting ‘always’, ‘often’, ‘sometimes’, or ‘never’.

The GC said this survey should provide the sector with “a better understanding of the association between motivation and activities, [which] is critical in understanding both general gambling behaviour as well as its consequences.”

The survey is based on data from 9,742 adults aged 18 and older, collected between July 2023 to February 2024.

What motivates gamblers?

According to the GSGB findings, the vast majority of those that had gambled in the past 12 months (86%) said they had done so in an effort to win big money.

The next most popular reason for play was ‘because it is fun’, with 70% listing this as their main reason. Other reasons include to make money (58%) and ‘because it is exciting’ (55%).

‘To impress others’ drew the smaller percentage of respondents at 8%, then 9% said they gambled to compete with others.

Up to 24% of respondents said they gambled to socialise.

Notably, reasons for gambling differed between age groups. As an example, the 18 to 24 age group was the only one where playing for fun ranked above winning big. Some 83% of players in this group listed this as their main reason, ahead of winning big at 79%.

There was also some differentiation when looking at prevalence of playing. For respondents who said they had constantly gambled in the past four weeks, 39% said their reasoning was to win big, 22% to make money and 15% for fun.

Breaking down behaviours by vertical

A Principal Component Analysis (PCA) was carried out to simplify the data set and provide a value to each of the reasons within a broad category of behaviours. These five categories include: gambling for social reasons, enhancement reasons, monetary reasons, recreational reasons and coping reasons.

In terms of betting online, the model used determined that enhancement was the strongest reason for playing provided by those surveyed.

The UKGC said gambling to cope and/or escape one’s daily life was most strongly associated with betting on sports and/or racing online. For those betting on sports and/or racing in person, gambling for the challenge was the most strongly associated reason for gambling.

Gambling to cope or for escapism was also the main reason for those participating in online bingo, casino and slots.

Casino games, both online and in-person, were predominantly associated with those seeking out a challenge or escapism as motivations for their gambling participation.

Online casino had a stronger association between escapism than casino games in person (at a casino) or at a machine.

Gambling for social reasons

Those gambling in-person were most likely to have social motives. In-person bingo and casino scored highest here, although sports betting did not draw any links with social aspects.

Players who gambled for social reasons were less likely to bet on sports and/or racing online, the data said.

When broken down further, the data shows that money was not the key driver for most activities. “The exceptions tended to be activities relating to the National Lottery; tickets, scratchcards, or online instant wins; products that have potentially large winnings,” said the Commission.

The studies, which cover various periods during 2024, revealed that while 64% of those aged 16 and over in the Netherlands have gambled offline throughout 2024, just one in 10 had placed a bet online.

Lotteries were the predominant form of offline gambling, with 55% of the gambling population using that vertical in 2024, while scratchcards (21%) and bingo (7%) were also prevalent.

Notably, sports betting was the only vertical in which online outpaced land-based, with 4% betting online compared to 3% for offline.

Dutch online gambling rising in popularity

The WODC said 70% of those who had bet online in 2024, had started doing so once the market went live on 1 October 2021.

With online betting particularly prominent among younger people, the WODC warned its rise could lead to problems such as addiction with that demographic particularly vulnerable.

This is supported by its latest studies, which found that while just 1% of all gamblers (including lotteries) in the Netherlands were considered high risk, this number rocketed to 18% for young adult online gamblers that operate their own personal account.

Additionally, 11% of all online gamblers with personal accounts were considered high risk, with 10% categorised as moderate risk on the Problem Gambling Severity Index (PGSI), which is widely used across the industry to determine how problematic gamblers’ behaviours are.

The WODC warned that current policies in place in the Netherlands put a lot of responsibility on players to control their own gambling, which could prove problematic for younger people who are at higher risk of addiction.

WODC makes recommendations to improve Netherlands regulations

The WODC believes the current measures to prevent gambling addiction in the Netherlands are “inadequate”, which it says is worrisome considering the wave of new players.

Just 24% of online gamblers were been informed about their gambling behaviour via an on-screen pop-up in 2024, this dropped to 9% via chat or email.

Notably, just 4% had temporarily excluded themselves from participating in gambling, while only 3% had registered for an involuntary ban. The WODC found most problem gamblers hadn’t heard of available tools such as Cruks, the Netherlands’ national self-exclusion scheme.

In response, the WODC offered five “urgent” recommendations to improve the regulation of online gambling in the Netherlands.

The first involves centralising the duty of care and not leaving it to the sector, while the second focuses on making player data available for independent research with the objective of boosting addiction prevention.

Additionally, the WODC also recommends increasing the powers of the Kansspelautoriteit (KSA), the regulator of gambling in the Netherlands, enabling it to better supervise legal operators.

In terms of the illegal market, the WODC is keen to see more restrictions on unlicensed operators.

Finally, the WODC is calling for enhanced protection of vulnerable groups such as young adults, particularly from gambling advertising. Part of this includes broadening the message from “preventing gambling addiction” to “preventing gambling harm”, to ensure all negative consequences from gambling are identified.

The owners of Betfred and Bet365 both made the top three in The Times’ annual survey showing who paid the most tax in the last year.

Fred and Peter Done and family, owners of Betfred, were second on the list having contributed £273.4 million (€324.7 million/$341.2 million) to public funds. This pushed them up from fourth place in 2023, when they paid £204.6 million. Top of the Times’ Tax List 2025 was the founder of Children’s Investment Fund Management, Chris Hohn, who paid £339.5 million.

Bet365 owners Denise (pictured), John and Peter Coates remained in third place, contributing £265 million to the exchequer.

Unnamed French operator sanctioned over player withdrawal breach

France’s gambling regulator, l’Autorité Nationale des Jeux (ANJ), has taken action against an unnamed operator that failed to comply with rules on player asset withdrawals.

The ANJ college referred the case to its sanctions committee in April 2024. The ANJ accused the operator of not immediately validating player withdrawal requests. The obligation to immediately return assets to players has been imposed on operators since 2010.

The sanctions committee imposed a financial penalty of €5,000 on the operator, but decided not to attach publicity measures to the sanction.

Canadian report links online gambling payments to fentanyl trafficking

A new report has identified online gambling transactions as a leading method for disguising proceeds from illegal fentanyl trafficking and production in Canada.

FINTRAC, Canada’s national financial intelligence agency, highlighted online gambling as a major contributor to drug trafficking in a new report. The agency said fentanyl traffickers frequently sent funds received from multiple incoming email money transfers to gambling sites and received payments in return from associated payment processors based in Malta, Canada and the UK.

The ‘Operational Alert, Laundering the Proceeds of Illicit Synthetic Opioids’ report will be used to assist businesses in identifying and reporting financial transactions related to the laundering of proceeds from the importation, production and distribution of fentanyl and other illegal synthetic opioids.

NFL launches responsible gambling programme for student-athletes

The National Football League (NFL) has announced plans for a responsible gambling training programme specifically designed for university and college student-athletes.

The NFL has launched the programme in association with the Responsible Gambling Council (RGC). The partners have identified student athletes as an important audience for targeted responsible gambling and problem gambling prevention initiatives, as previous research has shown their susceptibility to risky gambling behaviour.

The programme will launch with a pilot phase at eight universities and colleges in the upcoming 2025 spring semester.

Lotto-Berlin operator hands seven-year deal to Scientific Games

Deutsche Klassenlotterie Berlin (DKLB) is to become the first German lottery provider to implement Scientific Games’ Symphony omnichannel gaming system under a new seven-year contract.

While Scientific Games has served as a technology provider to the Lotto-Berlin operator for more than 20 years, it will now make the switch to the new system. Symphony’s architecture supports retail, digital and mobile play and future game entertainment channels, including third-party content and platforms.

Hansjörg Höltkemeier, chief executive of Lotto-Berlin, said: “With our selection of Scientific Games and Symphony, we are not only responding to the ever-increasing requirements in the areas of operational safety and cyber security but also focusing on continuity.”

Loterj’s appeal of the decision was rejected on 7 January, with Mendonça claiming the state regulator’s rebuttal was down to “mere disagreement with the decision under appeal”.

Cançado believes the STF’s actions risk the stability of the legal betting market in Brazil, which launched on 1 January.

“Legal uncertainty in Brazilian betting exposes legal weaknesses, unfair competition and bureaucracy that hinders the market and harms the economy,” Cançado wrote in an article for Migalhas.

“Unfair competition in the betting market in Brazil haunts entrepreneurship, weakens the national economy and has the support not only of informal [illegal] operators, but of the public administration itself, which systematically fosters legal uncertainty and, thus, encourages clandestinity.”

What is Loterj’s argument?

Loterj’s reason for its appeal was the perceived existence of “defects, omissions, obscurities and material errors” in Mendonça’s ruling. The decision could cause a drop in tax revenues for the state and disruption to Brazil’s licensed betting sector, it argued.

Loterj also complains that mandatory geolocation tracking was only created by Law No 14,790 in December 2023, approximately six months after Loterj’s Accreditation Notice 01/2023 was published.

Loterj’s Accreditation Notice established that the “express declaration and consent of the bettor” was enough for bets to be considered as placed within Rio de Janeiro state borders.

The state regulator claims Mendonça has been “led into error by the union”, with no pre-existing requirement for Loterj licensees to utilise geolocation technology.

“In other words, by obvious logic and symmetry of the system, the past acts of Loterj, governed by its Accreditation Notice 01/2023, since they precede the act of the executive branch, which did not foresee any territorial restrictions, should be protected, right?” Cançado said.

“Well, that is not what the Brazilian administration thinks, which once again acts against the social values ​​of free enterprise that underpinned the legalisation of betting in Brazil.”

Threat of overregulation in Brazil

Loterj-licensed operators have contributed over BRL100 million (£13.3 million/€15.8 million/$16.1 million) to the federal government in taxes.

Loterj believes those state contributions will be threatened by the STF’s ruling, as well as the presence of companies based in tax havens and operating in the Brazil betting market.

There are currently 14 companies with full licences to operate in Brazil, as well as another 54 with provisional authorisation. Those operators are given 30 days to ensure aspects such as full certification of betting systems are carried out.

“The union itself, using creationism and its own wickedness, with the endorsement of the judiciary, provides a truly hostile environment for legalised bets, especially because it makes the rules stricter for those within the country, while countless players based in tax havens and in China, immune to Brazilian law, continue to operate without submitting to the same competitive conditions, operating freely in the country without collecting federal, state and municipal taxes, even representing tax evasion,” Cançado added.

In the view of Loterj, this “unequal scenario of distrust and insecurity” will prove most harmful to bettors in Brazil. If overregulation continues, it could drive both players and operators towards the black market.

As a result of the court’s ruling, Loterj licensees were banned from accepting bets beyond Rio de Janeiro state borders and also mandated to reintroduce geolocation tracking to ensure bets are only being accepted within the state.

Mendonça’s decision gave Loterj five days from 2 January to halt its nationwide activities and impose these geolocation mechanisms.

Loterj immediately appealed the decision, citing “defects, omissions, obscurities and material errors” in the ruling, which it claimed would lead to reductions in tax revenues and disrupt the regulated betting market in Brazil, which launched on 1 January.

However, Mendonça rejected Loterj’s appeal on 7 January, saying the state regulator’s legal rebuttal was only down to “mere disagreement with the decision under appeal” and had no real legal standing.

Loterj has once again requested for the minister’s decision to be reversed, reiterating that it is full of errors and omissions.

Loterj disputing geolocation tracking enforcement

The state regulator is claiming there is no specific terminology around mandatory geolocation technology in its 2023 legislation, which it says suggests there is no legal backing for the measure.

However, Mendonça retorts that Loterj is trying to create a fictional narrative of the extended territorial limits of the state of Rio de Janeiro.

Loterj’s argument contradicts federal regulations for online sports betting which were written in 2018 (Federal Law No 13,756/2018) and sought to establish a licensed federal online betting sector.

Section 4 states: “The marketing and advertising of lotteries by the states or the federal district carried out in physical, electronic or virtual media will be restricted to people physically located within the limits of their jurisdictions or to those domiciled in their territoriality.”

Mendonça is accusing Loterj of using its Accreditation Notice as a mechanism to exceed the limits of its territorial jurisdiction and undermining the authority of the federal government.

Five-day deadline remains in place for Loterj licensees

In its appeal Loterj also noted the five-day deadline for enforcing geolocation tracking was “excessively short” and unreasonable for operators.

A follow-up Loterj statement called for the appeal to be accepted “as a matter of urgency and without hearing” because of the tight deadline in question.

However Mendonça’s has maintained his original five-day deadline in his latest retort. “The defendants must comply with the preliminary decision within the term stipulated by this court,” he said on 7 January.

Are these delaying tactics by Loterj?

Loterj maintains the legal basis for the STF’s ruling is flawed and is seeking a suspension of its effects until its concerns are addressed.

However, after Mendonça’s criticism of the initial appeal, it looks unlikely Loterj will get the resolution it is seeking, particularly as federal betting regulations are being enforced now the legal betting market is live.

With the five-day deadline having now elapsed, it remains to be seen whether Loterj will adhere to the STF’s ruling.

O Globo has reported that two Loterj-licensed companies are still operating throughout Brazil.

Loterj claims its 2023 regulations (Accreditation Notice 01/2023) should enable its licensees to operate public lottery services throughout Brazil. However, Mendonca’s decision has suspended some of the provisions in that notice, while also requiring Loterj licensees to reintroduce geolocation tracking so they can only accept bets in the state of Rio de Janeiro.

Loterj was given five days from Mendonca’s 2 January decision to halt its nationwide activities and enforce geolocation checks.

However, Mendonca’s ruling also gave Loterj the right to contest the STF’s action and on Friday (3 January) it decided to lodge an appeal with the aim of suspending the order.

Loterj warns of STF decision’s impact in Brazil

Loterj issued a press release on Friday which warned of the potential harmful impacts of Mendonca’s ban on its licensees operating throughout Brazil, as well as the reintroduction of geolocation tracking.

It said the suspension of the provisions in Loterj’s Accreditation Notice 01/2023 would lead to millions in compensation needing to be paid, a “significant” drop in tax revenue for the federal government and risks destabilising the newly launched regulated betting sector in Brazil, which was initiated on 1 January.

The state regulator also blamed the federal government for the issues brought up in the ongoing legal battle between itself and Loterj. This includes heavy criticisms of increase gambling activities in the second half of 2025 amid public concern that the black market is thriving in the country.

In Loterj’s view, the long delay between the National Congress first approving legislation for online betting in November 2018 and the final green light from the Chamber of Deputies in December 2023 gave rise to illegal sites and subsequent gambling harms which have been documented in various high profile reports by Brazil’s Central Bank and Santander.

“Loterj also states that its action in regulating the sports betting sector in its territory was a necessary and legitimate response to the inaction of the Union, which allowed the deadline established in Law 13.756/2018 (federal gambling laws) to elapse without due federal regulation,” Loterj claimed.

The need to reassess contracts

According to BNL Data, part of Loterj’s rejection of the ban relates to it needing to alter agreements with existing licensees. Part of the challenge is enforcing geolocation tracking, a measure that some state-licensed companies may not agree to or be able to comply with due to the five-day turnaround.

As a result, Loterj is calling for the effects of Mendonca’s decision to be urgently suspended, while its existing agreements with state licensees is maintained until a final decision on the AGU’s Original Civil Action No 3,696 is made.

Mendonca’s preliminary injunction is set to go to the STF plenary between 14 and 21 February, when it will face a referendum through a virtual session.

The report covers not just the last fiscal year, but references financial reports dating back to legalisation dates for each genre of gambling.

The commission noted that FY24’s growth was “largely driven by the steady expansion of video gaming, elevated lottery sales and rapid growth in sports wagering”. The first two sectors generated the majority of tax revenues – $886 million from the lottery and $848 million from slot routes. Sports betting contributed $190 million in taxes and licensing fees, with horse racing contributing $6 million.

Casinos, meanwhile, generated $158 million, nearly identical to FY23’s total of $157 million. Two new casinos opened during the year, but authors wrote that that has not made “a pronounced impact” on tax revenues. This, they said, was “due to a number of factors including a reduced tax structure, credits issued and higher administrative costs.”

Slot routes challenging for top spot

From an industry perspective, the rise of slot routes is perhaps the most notable trend. The market was legalised in 2009 but operations didn’t begin until September 2012. At that time, there were 61 video gaming terminals (VGTs) online across the state; as of June, there were 48,176.

For FY14, state and local tax revenue from slot routes was $145.6 million. FY24’s total was $997 million. Starting in FY25, the tax on net terminal income (NTI) will rise from 34% to 35%. This, coupled with the steady increase in terminals, is expected to boost tax revenue even more in years ahead.

This development is a key concern to the state’s casino industry, which has not seen nearly as much growth since slot routes were legalised. Authors noted this shift, which was most noticeably felt during the Covid pandemic. According to the report, adjusted gross receipts (AGR) for state casinos declined 4.8% in FY21, whereas NTI from slot routes jumped 30.8%.

“It appears that Illinois gamblers chose the convenience and smaller crowds of the video gaming parlors over the larger and more public casinos,” the report reads. “Video gaming locations have been perceived as a “safer” option to gamble, which has aided in elevating these video gaming figures.”

More Illinois casinos = more growth?

Illinois legalised riverboat gambling more than 30 years ago, with the first launching in September 1991. Since then, the sector has seen ups and downs – at the peak, there was a five-year stretch from FY2003 to FY2007 where casinos were the chief gaming tax revenue generators, but that has not happened since.

In 2019, new legislation allowed for six new casino and three ‘racino’ licences. The most notable was the Chicago casino, which is currently being built by Bally’s. That multibillion-dollar project is expected to open in September 2026, although a temporary casino has been open since September 2023. In addition, the legislation also allowed for existing casinos to increase their machine count from 1,200 to 2,000.

Total AGR for Illinois casinos was $1.61 billion in FY24, the highest since FY12 and a 13.2% increase year-over-year. But authors were cautious in presenting this number, mainly because the increased competition and cannibalisation from the new licences was listed as the primary reason for AGR declines.

“Most casinos, however, recorded flat or slightly decreased AGR totals relative to FY2023,” the report said. “This includes the highest generator of adjusted gross receipts in Illinois, Des Plaines’ Rivers Casino, which saw its AGR total slide from $557.6 million in FY2023 to $526.7 million in FY2024.”

Of the 15 casinos currently operating in the state, 10 qualified for 10-year AGR comparisons. Nine of those have seen AGR decreases of at least 18% during that span, with Rivers being the only exception.

Sports betting tax changes loom large

FY24 was the fifth fiscal year for Illinois sports betting, although FY20 was severely impacted by pandemic disruptions. Since then, the sector has seen substantial growth each year, with a total of 13 licences issued.

Sports betting AGR was $1.1 billion in FY24, the first time the state has eclipsed the $1 billion mark. State tax revenue was $166 million, meaning that both AGR and taxes increased 16%. Licensing fees also accounted for an additional $30.1 million, some of which won’t be counted until FY25.

Authors predicted “moderate” growth for the sector moving forward. This was attributed to the continued rise of online sports betting as well as “continued investment in advertising”. Three stand-alone master licences not tethered to a land-based casino are also still available, with licensing fees of $20 million.

But the elephant in the room is the state’s new tiered tax structure, implemented in July. FY24’s record number came under the old flat rate of 15% of AGR. The new system will see retail and online betting taxed on a sliding scale from 20%-40%, based on AGR levels. DraftKings, inspired in part by the Illinois increase, briefly proposed a surcharge on winning bets in response to the increased tax burden in August. Yet authors asserted that this will not deter sports betting growth.

“There is a concern that the additional tax burden will result in a reduced advertising budget for sportsbook operators, which would contribute to less overall sports wagering adjusted gross revenue,” the report read. “Despite this possibility, sports wagering revenues have grown rapidly each year since its inception within the state. Given this trend and the recently added sportsbooks, it is believed that sports wagering will continue to grow overall despite a higher tax structure.”

The Football Association of Ireland (FAI) has issued a six-month ban to Finn Harps FC player Ryan Rainey after he was found to have breached betting rules.

Breaches are connected to a number of League of Ireland and Men’s FAI Cup games that took place between 2021 and 2024. The FAI said Rainey also placed a “significant” number of bets on football worldwide in 2024.

After a disciplinary hearing, an Independent Disciplinary Committee ruled Rainey should face a ban. This has since been confirmed by the League of Ireland, in which his team, Finn Harps FC, plays.

Rainey, who previously played for English Premier League club Wolverhampton Wanderers, told the Irish Independent over the weekend that he is suffering with a gambling addiction.

ITIA sanctions tennis official for betting breach

In related news, the International Tennis Integrity Agency (ITIA) has suspended official Damjan Dejanovic for four years. The ITIA found him guilty of six breaches of its Tennis Anti-Corruption Programme (TACP).

Dejanovic, a national-level official from Bosnia and Herzegovina, admitted to wagering on professional tennis matches. However, he denied charges of manipulating scoring data and conspiring to commit corruption offences in relation to two matches he officiated.

Anti-corruption hearing officer Diana Tesic ruled he was liable for all six alleged breaches. These took place between 2022 and 2023.

Dejanovic, who has officiated at ITF $15K events, is now to be suspended until 7 January 2028. He has also been ordered to pay a fine of €5,000 (£4,140/$5,281).

Omnigame secures Danish B2B licence

Elsewhere, game studio and operator Omnigame has secured a B2B licence in Denmark. The new licence enables it to provide content in the country until 2029.

New legislation is set to come into force in January 2025, with suppliers required to gain new approval from regulator Spillemyndigheden. Omnigame is one of the first recipients of the new permits.

Omnigame powers the Pip.dk brand in Denmark exclusively with its own in-house developed games portfolio.

“Denmark is our home market, and we want to keep all opportunities open to maintain a dominant position on our home turf,” Omnigame co-CEO Peter Weinreich said. “The licence will help facilitate our continued growth in Denmark which is a crucial part of our future plans as we are gearing up for international expansion early next year.”

Aristocrat Interactive and IGT pen Kentucky Lottery deal

Meanwhile, in the US, Aristocrat Interactive has signed a five-year contract with IGT Global Solutions Corporation (IGT) to supply content to the Kentucky Lottery.

Under the new deal, Aristocrat Interactive will deliver a range of content from its NeoGames Studio. This will be carried out through an integration with IGT.

NeoGames Studio has been creating e-instant games for clients around the world for more than 20 years.

“This is a further illustration of our commitment to providing innovative, engaging games that meet the needs of lottery customers and to help the ilottery programmes meet their goals, generating revenues for good causes,” Aristocrat Interactive Ilottery managing director Chris Shaban said.

Yolo Entertainment confirms new senior appointments

And finally this week, Yolo Entertainment, the operator behind Bitcasino and Sportsbet.io, has announced four new senior appointments.

Sanda Vask becomes chief operating officer after almost six years with Yolo. She was most recently its head of legal.

Meanwhile, Anthony Cabrera is joining as the new director of Bitcasino, with Amy Howard to become director retention. Finally, Alexander McLoughlin, formerly of Bally’s Interactive and Gamesys, will take on the role of director of core markets.

“Together, they bring a wealth of experience, vision and leadership that will strengthen Yolo Entertainment as we focus on delivering year on year growth in 2025,” Yolo CEO Matthew D’Emanuele said.

The Game secured The UAE Lottery lottery licence in July this year. Tickets for its AED100 million Lucky Day draw went on sale on 27 November.

The UAE Lottery is the only show in town

The Federal Law by Decree that established the GCGRA permits two lotteries in the UAE to continue operations, the regulator noted.

Only Big Ticket in Abu Dhabi International Airport and Dubai Duty Free can continue operations alongside The UAE Lottery. 

“In accordance with the law, all other pre-existing lotteries will not be considered for continued operations and the GCGRA has ordered them to shut down,” the GCGRA said. 

Who could the GCGRA be referring to?

The GCGRA does not name any companies targeting UAE players in its notice. However a number of fiat and crypto gaming operators are known to have been active in the market. Semrush estimates traffic of 39.6 million going to gambling-related domains in the year to date, although this includes licensed offerings. 

Two high-profile lotteries previously operated in the UAE, Mahzooz and Emirates Draw.

Mahzooz’s website says it stopped operations in the UAE from 1 January 2024. In the wake of The Game prevailing in the lottery licence contest, it announced plans for a pivot into new gaming verticals. 

Emirates Draw also paused UAE operations from 1 January this year in response to a GCGRA request. It too plans to apply for UAE licences in other verticals.

GCGRA CEO to consumers: “Stay vigilant and informed“

Consumers that gamble with unlicensed operators face “significant risks”, the GCGRA said. 

Aside from losing money, they could become the victims of cheating or fraud, the regulator explained. They risk having their personal data stolen or misused, malware or phishing attacks. Some could even be implicated in a regulatory or criminal investigation. 

“Your adherence to the law not only safeguards your personal and financial security but also upholds the integrity of our community,” GCGRA chief executive Kevin Mullally added. “If you choose to play, do so only with licensed operators.”

Unlicensed businesses have not had technology or games independently evaluated for fairness or security, Mullally continued. “They are not required to act responsibly or incorporate basic consumer protection. They are not subject to advertising regulations and lack any oversight of their finances, including having reserves for prize payouts and complying with anti-money laundering laws. 

“Consumers are strongly advised to avoid unlicensed operators to protect themselves from adverse consequences.”

The warning is not just for players. Mullally said advertisers, payment solution providers and other suppliers could face sanctions or actions that could prevent them from doing business in the regulated UAE market.

The Q3 total is also almost on par with the £2.14 billion Allwyn reported in Q2 this year and a 1% increase on the €2.11 million accrued in Q1.

Meanwhile, gross gaming revenue, which is revenue from gaming wagers minus payouts, was also higher year-on-year. The €2.06 billion posted in Q3 beats last year’s €1.92 billion total by 7%.

In addition, net revenue improved 11% to €2.06 billion for the quarter, with adjusted EBITDA rising 12% on the back of this. Adjusted EBITDA margin remained level at 41.8% during Q3.

“Total revenue increased, with the continuing growth of digital, our ongoing efforts in product development and our focus on bringing best-in-class content to customers being the key drivers,” CEO Robert Chvatal said.

“In executing our organic growth strategy, we remain focused on responsibilities to all stakeholders, including our resolute focus on safe play. The quarter also benefited from favourable jackpot cycles in lottery. This contrasted with Q3 last year which, in addition to unfavourable jackpot cycles, was impacted by customer-friendly sports results.”

Growth remains when excluding UK and US acquisitions

Group results are based on the Allwyn business as a whole and include Camelot acquisitions in both the UK and US.

Allwyn acquired Camelot UK Lotteries, the previous operator of the UK’s National Lottery, in February 2023. This came as it prepared to assume control of the operating of the National Lottery, which eventually took place in February this year.

In March 2023, Allwyn also completed its acquisition of Camelot Lottery Solutions in the US.

However, even when excluding these two businesses from the equation, revenue increased in Q3. Total revenue without the UK and US operations stood at €1.32 billion, an increase of 13% compared to the previous year.

Gross gaming revenue was 11% higher at €1.07 billion, while net revenue increased 13% to €720.7 million. In addition, adjusted EBITDA improved 21% year-on-year to €384.3 million.

This shows that while much of the attention has been on Allwyn’s UK operations in recent months, existing businesses continue to perform well.

“We delivered solid profitability, including excellent growth in Greece and Cyprus, and once more benefited from a strong performance from our equity method investees where, in addition to strong organic growth, profitability benefited from a favourable tax effect in the quarter,” Chvatal said.

European success for Allwyn

As noted by Chvatal, certain markets across Europe saw significant growth in Q3. Greece and Cyprus led the way with a 17% increase in consolidated revenue to €591.4 million. Adjusted EBITDA was also 26% higher at €213.4 million.

Allwyn said this was helped by online growth, as well as strong performances across numerical lotteries, sports betting and igaming. In particular, it noted a favourable jackpot cycle in Tzoker, which reached the second biggest jackpot in the game’s history.

Elsewhere, revenue in Austria was up 7% year-on-year at €407.3 million, although adjusted EBITDA dipped 2% to €74.0 million. Double-digit increases in numerical lotteries (17%) and igaming (12%), were the main reasons for growth in the country.

However, it was not all good news in Europe. Revenue from Italy declined by 6% to €521.9 million. Allwyn put this down to a particularly strong comparable period in 2023.

In addition, revenue in the Czech Republic, where Allwyn began its operations, fell 4% to €118.1 million. This was primarily due to the sale of a non-gaming business impacting performance.

UK revenue nears €1.00bn in Q3

Within the UK market, revenue grew 3% year-on-year to €980.9 million. This was despite activity levels being broadly stable compared with the year prior.

While marketing initiatives and instant lotteries game launches progressed, Allwyn said that performance continues to reflect limited product and channel developments at this stage of the new licence.

To rectify this, Allwyn said it remains focused on executing plans to “transform” the National Lottery. This will include upgrading legacy systems to support the product portfolio and improving the customer proposition.

However, despite revenue growth, adjusted EBITDA in the UK fell 84% to €7.0 million. This was due to a new incentive and profitability mechanism with the start of the new National Lottery licence.

IWG acquisition helps North America growth

In North America, revenue was 5% higher than in Q3 2023 at €55.8 million, with adjusted EBITDA also increasing by 1% to €11.1 million.

Revenue from non-gaming activities is generated from private management services relating to operation of the state lottery in Illinois under a private management agreement. It also draws revenue from gaming technology solutions and content to group entities and third-party customers.

In Q2, Allwyn confirmed it had completed its investment in Instant Win Gaming (IWG). This saw it take a 70% stake in the online content developer, with this now operating as part of its North American business.

According to Allwyn, North American Q2 results are presented on a ‘100% basis’, as if IWG were consolidated in both periods.

Year-to-date revenue tops €6.39 billion

Looking at Allwyn in the year-to-date, consolidated revenue for the nine months to the end of September rose to €6.39 billion. This is 12% higher than during the same period last year.

Gross gaming revenue for the period is up 12% at €6.14 billion and net revenue 10% at €2.86 billion. In addition, adjusted EBITDA for the year-to-date ticked 1% higher to €1.11 billion.

Even when excluding the UK and US operations, the year-to-date figures make for positive reading. Group revenue with these exclusions is 7% higher year-on-year at €3.32 billion, with gross gaming revenue up 7% at €3.18 billion and net revenue 7% at €2.11 billion.

Adjusted EBITDA without the UK and North America is also 9% higher at €1.06 billion.

“Overall, I am pleased with our continued progress,” Chvatal said. “I believe we are well-placed for the remainder of 2024 and the next chapters of our growth story.”

The bill aims to achieve this by boosting the powers of the National Commission of Gambling (Conajzar), placing it under the government-powered National Tax Revenue Directorate (DNIT).

The law currently states “exploitation of national games of chance will be carried out exclusively by public tender”, but these activities will be liberalised under the new bill.

The chamber of deputies (the lower house of Paraguay’s legislature, which is made up of the national congress) yesterday partially approved the bill, which was signed by the minister of finance Carlos Fernandez Valdovinos and the president, Santiago Peña. The document will now to go the senate for final approval.

Conajzar president Carlos Liseras said yesterday he expects opening the gambling market to competition will enhance the sector’s tax contributions to the government.

“It is a fundamental step to democratise the market and allow greater competitiveness, which will translate into benefits for both operators and the state,” Liseras said in quotes shared by G&M News.

What does the bill propose?

The bill seeks to eliminate the current monopolies and paves the way for private competitors to enter the market. It would mean commercial operators of games of chance could compete in the market, rather than having to secure access through tender processes.

The changes reflect Paraguay’s social and economic shifts under the new government. This came into power in August 2023.

The bill reads: “Our country has witnessed marked economic and social changes, which has led to an exponential development of its markets and gambling has not been left behind by such dynamism.

“Rather, it has been reached by technological and economic changes that have resulted in new types of gambling as well as in the number of providers and users of them.”

Alongside opening the market, one of the core aims of the bill is to improve the effectiveness of Conajzar as a regulator.

Placing Conajzar under DNIT aims to boost revenue collection and strengthen its powers for “institutional optimisation”.

The Conajzar general director will oversee gambling in Paraguay, including coordination, development, control and supervision.

Play is limited to those aged 18 and over and tickets can only be bought by customers physically located in the UAE. Tickets are only available online currently. 

Abu Dhabi-based The Game, a subsidiary of gaming and entertainment operation Momentum, secured the UAE Lottery licence from the General Commercial Gaming Regulatory Authority (GCGRA) in July this year. It beat established local competitors Emirates Draw and Mahzooz to the licence, both of which are now preparing to pivot into other verticals as a result. 

Smartplay International, a lottery draw specialist already powering many of the world’s largest lotteries, secured a UAE vendor licence in October, suggesting it is powering the offering.

Former Arkansas Lottery chief leading UAE Lottery

Serving as lottery director for Momentum is Bishop Woosley, the former director of the Arkansas Scholarship Lottery. 

Woosley spent two years as the lottery’s legal counsel before eight years in the top job. During that time he also served as president of the North American Association of State and Provincial Lotteries. He spent four years as a consultant, before joining Momentum in August this year, according to LinkedIn. 

“Our mission at The UAE Lottery is to inspire people to dream big, aligning with our slogan, ‘Dare to Imagine”, he said, in a quote circulated by multiple local publications. 

“We aim to create exciting experiences while promoting responsible play. Following a rigorous GCGRA evaluation, our team remains committed ensuring that all operations meet global standards, guaranteeing fairness and transparency from the draw process to the selection of winners.”

Lottery live, and first resort under construction, so what’s next?

The UAE Lottery is one of two pioneers in the Emirates gambling market, alongside Wynn Resorts. The casino operator is building the Wynn Al-Marjan Island resort in Ras Al-Khaimah and secured the UAE’s first commercial gaming licence in October.

Competitors are eager to move in. MGM Resorts CEO Bill Hornbuckle shared the operator’s ambitions for a resort in Abu Dhabi in September this year.

However GCGRA chair Jim Murren, Hornbuckle’s former boss, suggested there would not be a flurry of new developments in 2025. “[We’re] focused on the operators we have already licensed,” Murren said at the Skift Global Forum East earlier in November.

Other licences were more likely to follow over the “next five to ten years”, he added.

There is also the question of online gaming. The GCGRA’s gaming operator licence covers internet gaming, sports betting and lottery retailers as well as the national lottery and land-based gaming facilities. The regulator has said little about its online plans to date, however. 

By this it meant gambling and lottery is not included in the federal government’s exclusive legislative list which includes policies and jurisdictions it resides over. The list has 68 items that are exclusively reserved for the national assembly to legislate upon. It includes nationally sensitive areas like defence, banking and the creation of new states.  

The case was brought about by the Lagos state government seeking for the court to interpret who should preside over lottery regulation.   

Ruling has “far reaching” implications and redefines lottery in Nigeria

The ruling was handed down by a seven-member jury on 22 November and has far-reaching implications for gambling and lottery in Nigeria.

“The implications of this judgment are far reaching as it has effectively redefined the Nigerian lottery industry,” local law firm Templars law said in a client note dated 25 November. 

“The National Lottery Act can no longer operate generally throughout the Federal Republic of Nigeria as it previously did,” the note said. “The Act will now only apply to Nigeria’s FCT (Federal Capital Territory), which is ordinarily within the legislative remit of the national assembly.”  

The move has been celebrated by the Lagos state government, while the Lagos State Lotteries and Gaming Authority described the ruling as “a significant milestone for the gaming industry in Nigeria”.  

“We look forward to seeing the positive impact it will have on our economy and society,” the statement said.  

Samuel Rowland, COO for the Lagos State Lotteries and Gaming Authority, said the ruling highlighted the importance of constitutional adherence in legislative processes. 

“This ruling could also prompt a re-evaluation of how other areas of law are legislated and enforced in Nigeria, potentially leading to more legal challenges regarding the distribution of powers between state and federal authorities.”  

Brazil’s state and federal regulators locked into similar dispute

Brazil’s state and federal regulators are grappling with a similar dispute over whether Rio de Janeiro’s state lottery regulator (Loterj) can award lottery and betting licenses that enable operators to provide their services nationally.

On 14 October Loterj requested a preliminary injunction from the Supreme Court to reject a lawsuit by the government seeking to ban its licensees from operating outside the state. The legal battle is ongoing.

First this week, Google will lift a ban on targeted and personalised adverts for online social casino games. Social casinos will be removed from Google’s restricted ‘Gambling’ sensitive interest category with effect from 4 December.

Effectively, Action Network reports, this will mean adverts for social casinos are allowed to appear on web pages that consumers visit regularly. This covers all forms of social casino including slot, poker and roulette.

Google has not said specifically why it is removing social casino from its exclusion list of advertisers.

It is expected that Google will remove similar restrictions on all other advertisers from March 2025, allowing any company to run targeted adverts. However, should advertisers violate the Personalised Ads policy, Google may issue warnings and suspend the accounts of repeat offenders.

More NHL players face harassment over sports betting

Elsewhere, a survey has revealed more National Hockey League (NHL) players are being harassed by fans since sports betting was more widely legalised in the US.

Of 161 players who responded to the survey by The Athletic, 33.1% said they now face more harassment. This ranges from fans venting their frustrations over a losing bet to demanding players pay back their unsuccessful wager.

Some players even admitted to receiving death threats related to sports betting. One player said: “You get some scary messages out there.”

Another player said: “They’re demands, not requests. [They say] ‘You owe me $200 because you were on the ice when…’ and it’s insane.”

College player faces betting manipulation probe

Also in the US, federal authorities are investing former Temple University player Hysier Miller over betting manipulation. Miller is facing allegations of wagering on his own games and manipulating the outcome of games he played in, ESPN reports.

Miller is no longer with Temple having transferred to Virginia Tech in the off season. However, he has since been dismissed after the probe launched, while the NCAA has also opened an inquiry into Temple games.

The investigation comes after a regular-season Temple game was flagged for unusual betting activity back in March. It is not clear how this relates to the current allegations Miller faces.

The NCAA is yet to comment on the case while the FBI has neither confirmed nor denied the investigation.

Indian police arrest 80 in illegal gambling bust

Police in India have arrested at least 80 people during a raid on a large gambling den in the Janka area of Nuapada. The raid on an isolated building took place on the evening of 23 November.

Odishatv.in reports that police confiscated Rs 29 lakh (£27,320/€32,706/$34,420), some 74 mobile phones and various gambling paraphernalia as part of the raid.

According to the police, the den had been operating for a long time. It drew a large amount of players, with many arriving at the venue with cash to gamble.

Police are carrying out further inquiries to determine if the gambling network covers a wider area.

Jackpot.com links up with 7-Eleven

Finally this week, online lottery courier service Jackpot.com has entered into an exclusive collaboration with 7-Eleven. This will see Jackpot.com serve as the official lottery courier service of the convenience store chain.

The partnership will initially cover Ohio and Massachusetts, with players in both states able to sign up and play lottery games and scratchers on the Jackpot.com app or website. This will be available in more than 600 7-Eleven stores across the two states.

The new collaboration will launch with a special promotion, offering 7-Eleven customers a free lottery ticket on their first deposit by using promo code ‘7Eleven’.

“We’re thrilled to work with 7-Eleven, the leading retailer of lottery tickets in the country,” Jackpot.com CEO and co-founder Akshay Khanna said. “Leveraging our technology and innovation we can provide additional convenience for their customers, while adding an additional source of revenue. A true win-win relationship for all.”

Figures from the operator published last night (20 November) show growth in four of its five core divisions. Lottery generated the most revenue at €200 million, but arguably the star of the show was online casino where revenue jumped 48.3%.

This continued a trend seen throughout H1, with growth in the online casino business far outpacing other areas.

Online casino again the highlight at OPAP

Breaking down segmental performance in Q3, online casino saw the most growth, with total revenue up to €92.7 million. This follows double-digit increases in Q1 and Q2, with OPAP highlighting the impact of higher player engagement levels.

The lottery business drew the most revenue, rising 20.5% to €200 million. OPAP put this down to strong retail performance as well as Tzoker’s Mega jackpot, which was the second highest in the game’s history.

Video lottery terminal (VLT) revenue also edged up 0.7% to €83.5 million during Q3. OPAP said this slow growth was due to inflationary pressures caused by the associated cautious consumer behaviour.

The only OPAP segment not to see growth was instant and passives, with revenue falling by 11.9% to €22.5 million. This was put down to weak performances across scratchcards and Laiko games.

Revenue also jumped 16.1% in the sports betting segment to €167.1 million. This, OPAP said, was helped by a busy sporting calendar including the latter part of football’s Euro 2024 early in Q3. It also noted that Q3 last year was negatively impacted by customer-friendly results.

Revenue growth pushes net profit to €120.5 million

Net gaming revenue after agents’ commission and other direct costs increased by 17.8% to €386.8 million. As for operating costs, these were reduced by 12.2% to €100.6 million, despite higher spend across marketing and payroll.

Gross profit from gaming operations increased 25% to €241.9 million. EBITDA for Q3 also climbed by 46.6% to €213.2 million, with an improved margin of 37.7%.

In terms of bottom line, net profit was 44.7% higher at €120.5 million, with a margin of 21.3%, while earnings per share improved 47.7%.

Year-to-date revenue tops €1.65 billion

As to how Q3 impacted year-to-date performance, revenue for the nine months to the end of September was 9.4% higher at €1.65 billion. Performance patterns were similar across each segment, with online casino seeing the most growth (32.8%) and lottery the highest revenue total (€573.1 million).

Net gaming revenue climbed 8.7% to €1.13 billion, while operating expenses were up 5.2% to €314.6 million. Operating profit improved 13.4% to €478.3 million.

Pre-tax profit increased 17.8% to €486.2 million, with net profit after tax up 14.1% to €360.3 million. On top of this, nine-month EBITDA increased by 12.9% to €586.9 million.

“Following the solid performance in the first half of 2024, OPAP has delivered a strong set of results in Q3,” said OPAP CEO Jan Karas, who was also recently appointed as chairman of the group.

“Positive trends continued for sports betting in both channels, driven by a full sports events calendar. Moreover, the online casino vertical sustained its momentum, playing a key role in the substantial growth of our online business.”

Looking ahead, Karas said he is confident that full-year results will be at the higher end of expectations. Preliminary guidance for 2024 set out revenue prospects of €2.15 billion to €2.20 billion and EBITDA €750 million to €770 million.

“Overall, we remain confident that we are well-positioned to meet OPAP’s financial and business objectives for the full year, as well as to deliver on the upper end of our 2024 outlook,” Karas said.

Goa’s Directorate of Small Savings and Lotteries sanctioned the app-based platform, licensing Rhiti Group as the operator. Group founder Arun Pandey told MediaBrief that Great Goa Games will give players “a secure and convenient way” to play. Rules governing online lottery were published by the directorate in February 2023.

“Our mission,” he said, “is to democratise opportunities through technology.”

Presently, 13 states including Goa – known as “the Las Vegas of India” – permit lottery games. Others have banned them over concerns about gambling addiction, mismanagement or corruption.

India lottery in disarray

Goa government chief Narayan Gad said the regulated games will “set a new standard in the lottery industry. The technology-based product will enhance transparency and ensure improved monitoring and regulation of operations.”

However, online platforms are hardly immune to claims of fraud and manipulation.

According to technology website MediaNama, Kerala once offered an online lottery, limiting it to one draw per week. Government officials pulled the plug after finding that multiple lotteries were operating simultaneously. The subsequent ban made Kerala an “online, internet and computerised lotteries-free zone”.

Similarly, law enforcement in Maharashtra found evidence that government officials and online lottery operators were conspiring to run multiple lotteries in a single day.

In a 2015 Supreme Court ruling that upheld the Kerala ban, justices noted that ticket terminals were subject to alteration. As a result, players had no guarantee their tickets were issued from a legitimate server.

Getting with the times

According to a 2024 white paper from not-for-profit think tank Pahle India Foundation (PIF), India’s lottery industry has simply failed to keep up with the times with its reliance on paper tickets and physical retailers.

“Paper-based lotteries are prone to issues such as loss of tickets during transportation, sale of defective or fake tickets and the difficult and arduous task of maintaining records of tickets (sold, unsold and defective),” the paper stated. “Handling high volume transactions… poses a serious logistical challenge compromising integrity and compliance, potentially leading to corruption.”

Moreover, the World Economic Forum has described India as “the next Silicon Valley”. The country’s high-tech culture doesn’t jibe with low-tech gaming applications, said PIF.

A focus on paper-based lotteries “implies that India’s lottery industry does not adequately leverage the growing access to smartphones and cheap internet”. The sector “has yet to be aligned with [the] vision of Digital India to make it more transparent, efficient, compliance-oriented and with enhanced player protection”.

Broader benefits, potential for revenue

PIF estimated Indian lottery revenue at $33 billion (£26 billion/€31 billion) annually with potential taxes of $12 billion.

The Hans India notes that Great Goa Games will emphasise responsible gaming through educational resources that help participants play it safe. “Additionally, the online lottery will ensure transparency in operations, allowing users to track how lottery proceeds are utilised, particularly to funding social initiatives like education and healthcare.”

Plans for a significant upgrade are in motion. This was included in Allwyn’s successful bid for the licence, which runs through to January 2034.

However, the Telegraph reported on 12 November that sources close to the lottery say the upgrade has proved problematic for Allwyn. This led to several missed deadlines, with Allwyn now said to be working towards a new deadline of February 2025.

Sources say this target could be pushed back further until next summer or later in the year should issues persists. Some technology experts have compared the upgrade to “trying to stick a Microsoft system on top of an Apple computer”.

Issues with the upgrade began when International Games Technology (IGT) challenged the decision to award Allwyn the licence. IGT pursued a claim for damages in the High Court, having supplied technology to Camelot since the Lottery’s launch.

IGT eventually asked the Court of Appeal to dismiss the claim and agreed a new technology partnership with Allwyn. The whole case, however, led to a six-month deferral on the licence being finalised.

The Telegraph understands Allwyn’s board will meet this week to decide when it may switch to the new system.

£38 billion pledged in donations under threat

The delays have cast doubt over the charitable donations pledge made by Allwyn during the bidding process.

Allwyn said it was aiming to more than double the amount sent to charities, from £17 billion (€21.5 billion/$22.6 billion) to £38 billion, over the course of the licence. This is based on the expected growth of participation after the upgrade.

However, the report suggests Allwyn will fall several hundreds of millions pounds short of projections during the first two years. Allwyn plans to make this up later in the licence period.

Andria Vidler, chief executive of Allwyn UK, maintains the upgrade will help charities. She said the new-look National Lottery will “boost funding” for good causes in the UK.

Allwyn already warned over funding drop

Charities were warned over a potential reduction in funding in the lead up to Allwyn taking control. The group reportedly said the previous year’s funding of around £1.8 billion would stay level during its first year.

This will not have been helped by sales slowing since Allwyn assumed control. However, it remains upbeat about its long-term projection of doubling weekly good cause funding to £60 million.

In a statement issued to iGB, an Allwyn spokesperson said “significant progress” has already been made on transforming the National Lottery.

“For example, we’ve started overhauling our 40,000-strong National Lottery retail estate, launched a number of new campaigns and products – including Paris 2024, Lotto and Set For Life campaigns – and introduced a number of new player protection measures, including our pioneering new scratchcard purchase limit,” Allwyn said.

“All of this, and so much more, is laying the groundwork as we look to reinvigorate the National Lottery, bringing back the magic and enabling us to generate more money than ever before for National Lottery-funded projects over the next decade.”

Charity lotteries like the National Lottery are facing increasing competition from free million-pound draws which are not burdened by regulatory scrutiny. Although the previous government did say it would consider regulatory these free draws as part of its review of the Gambling Act. It is yet to be seen whether the new Labour government will fulfil those plans.

The figure also falls 3.4% short of SEK6.89 billion in Q2 of this year. On top of this, Q3 revenue was the lowest quarterly total since SEK6.58 billion was reported in Sweden in Q1 2023.

Commercial online gambling remains the primary source of gambling revenue in the country by some distance. During Q3, SEK4.33 billion of revenue was reported for this segment, a year-on-year increase of 1.5%. This includes internet-based casino and sports betting activity.

Land-based declines hit Sweden in Q3

However, declines were reported across almost all other sectors of the market. Revenue was down in many core land-based segments, with Svenska Spel’s Casino Cosmopol hit with a 76.5% revenue decline to SEK31 million. This is the lowest monthly amount on record, with the exception of during the Covid-19 pandemic when casinos were forced to temporarily close.

Revenue from state-owned lottery and physical slots games decreased 2.7% year-on-year to SEK1.36 billion. It remains the second-highest revenue source, although some way behind the online market.

Revenue from non-profit games and national lotteries also declined 0.6% to SEK818 million. Sweden has not seen revenue in this segment fall this low since Q1 of last year.

Community games and hall bingo revenue remained level at SEK50 million for Q3. However, land-based revenue for restaurant casinos dropped 6% to SEK63 million.

The decline in casino performance comes as no surprise given the closure of several of Svenska Spel’s venues earlier in the year. Casino Cosmopol venues in Gothenburg and Malmö shut in February on the back of limited profitability. This leaves the Casino Cosmopol in Stockholm as Svenska Spel’s only remaining casino location.

There is a chance the Casino Cosmopol brand could disappear in Sweden altogether. In May, the country’s government submitted a proposal to discontinue Casino Cosmopol’s business altogether. They argued it “no longer fulfils its purpose”, although a final decision is yet to be reached.

Aside from financial data, the regulator set out figures on self-exclusion. By the end of Q3, some 118,000 people were registered with the Spelpaus.se self-exclusion service, up 5.9% from Q2.

Despite being widely recognised as low-risk and existing for charitable, rather than commercial purposes, charity lotteries are mired in regulation by virtue of being provided for by the Gambling Act.

Meanwhile, the million-pound free draw sector that has sprouted in Britain since the turn of the decade exists to make commercial profit while returning modest levels to charitable causes – all while offering the consumer an unregulated gambling product.

As the government acknowledged in its Gambling Act review white paper, there is concern that few people could tell the difference, or explain the difference, between a charity lottery and a million-pound prize draw. To the public they present as the same. 

A charity lottery is a ticketed draw that exists to raise money for a named charity or good cause. A prize draw is different because, while it can also be a paid-for ticketed draw donating money to a good cause – just like a charity lottery – there must also be a ‘free’ route of entry.

Rules regulating charity lotteries

This legislative loophole then means the difference between the two games of chance becomes huge. A charity lottery must secure a Gambling Commission licence, it cannot sell more than £50 million of tickets in any one year and it cannot sell more than £5 million of tickets in any one draw.

Similarly, a prize cannot exceed £500,000 in value and the prize must not exceed 10% of ticket sales. Rules also require 20% of the draw proceeds to be donated to the licensees’ nominated charity.

In terms of age restrictions and protective measures, the minimum age of play is 18 and no tickets can be bought on a credit card. While licence holders can also only incur reasonable expenses. All this is tightly regulated by the Gambling Commission to ensure compliance. 

As for free draws, absolutely none of these restrictions apply. Given that our sector has historically been told we must endure such a heavy burden, so as to maintain a distinction with the National Lottery, the present situation becomes doubly unfair. The supposed ‘unique ability’ of the National Lottery to offer million-pound prizes is completely upended.

How much do operators contribute to charity?

For the charities, million-pound free draws present the thin end of the wedge in respect of civil society fundraising. Society lotteries, on average, return 45% of every ticket to their chosen good cause, the Gambling Commission reports. By contrast, an operator like Omaze returns just 17% and Raffle House only 10%, according to their websites. Others give little information on what they give to charities.

The discrepancy may well date back to Heinz baked beans – remember the time when you could win a free family holiday to Florida if you sent in the winning wrapper? Prize draws were more of a marketing tool, not a ‘gambling’ product capable of competing with National Lottery and so were largely left alone.

But the world moves on and enterprising individuals have spotted an opportunity to heavily advertise a multi-million pound house in a free prize draw, allow free entries for the price of second class stamp (85p) postage, while offering a bundle of tickets for less than half that price.

Added to the appeal of the game is a seemingly hefty donation to a well-known charity and such operators have certainly created a viable market – one in which the free draw owners can keep private profit.

What does the future hold for licensed charity lotteries?

Charity lotteries could run free draws instead and avoid all the GC’s regulatory requirements. The concern is that some are actively thinking of doing so because of the regulatory divide. 

But I don’t see that as the answer as the government would still worry about consumer protection and the all-important charitable contribution as UK charities presently benefit to the tune of £420 million per annum from charity lotteries.

It is clear the new government must deliver on the previous administration’s commitment to regulate free draws, as noted in the Gambling Act review’s white paper.

To add insult to injury, if the government does introduce a new compulsory levy to tackle gambling harm – applicable to all products regulated by the Gambling Act – then it’s likely that charity lotteries will also be hit with this new ‘charity tax’, yet free draws that operate in much the same kind of way will not be included.

The Lotteries Council applauds innovation and effort that raises money for good causes – including free draws. We’d just like the same terms and conditions to apply to all, for the benefit of fundraisers, supported charities and consumers alike.

This op-ed is in response to previous opinion pieces on lottery regulation. These cover the challenges of regulating free draws and the views of a free draw operator.

Paraguay’s National Commission of Gambling (Conajzar) was created by Law No 1,016/1997, which gave it the right to regulate gambling throughout the country.

One of the key objectives of the new measures is to place Conajzar under Paraguay’s National Tax Revenue Directorate (DNIT). This aims to enable it to collect more revenue and increase its efficiency by increasing its powers, allowing it to better execute its mandate.

Turning Conajzar into an effective regulator

Alongside strengthening Conajzar’s position as a regulator, the plan is to encourage “institutional optimisation” with an updated legal model.

The new framework will put the role of Conajzar general director in charge of the coordination, development, control and supervision of gambling in Paraguay.

“Through the modification of the current regulations, the powers of Conajzar will be strengthened, allowing it to be a true professional, stable and solvent regulatory body,” it said.

“All this, while accompanying the social and economic changes that require the elimination of the legal monopolies once established.”

Could Paraguay’s gambling monopolies be eradicated?

Much has changed in Paraguay since the publication of Law No 1,016/1997, which set up a system granting national franchises for sports betting and quinela. The new initiative, which is signed by the minister of finance Carlos Fernandez Valdovinos and President Santiago Peña, aims to bring Conajzar “into the 21st century”.

As part of this, the draft proposal includes the liberalisation of the gambling market in Paraguay, removing the legal monopolies. It would mean private operators could compete in the market, rather than having to secure access through tender processes.

Law No 1,016/1997 allows for the nationwide exclusive exploitation of games of chance such as lottery, telebingo and sports betting. Bingo halls and racetracks can be operated at a departmental level while, at the municipal level, types of betting such as horseracing and premises for electronic games of chance would be authorised.

The draft proposal says legal monopolies “must be removed”, accounting for the social and economic changes currently ongoing in Paraguay under the new government, which came into power in August 2023.

“Our country has witnessed marked economic and social changes, which has led to an exponential development of its markets and gambling has not been left behind by such dynamism,” the document reads.

“Rather, it has been reached by technological and economic changes that have resulted in new types of gambling as well as in the number of providers and users of them.”